District Not Recorded

The Justice Department today announced a settlement agreement with New Bedford Public Schools to resolve the department’s investigation into the school district’s practices for communicating with limited English proficient parents and guardians, including speakers of K’iche’, an Indigenous Mayan language. 

Among other steps, the district will implement effective measures to correctly identify the languages spoken by students, as well as parents and guardians, so that school staff do not assume K’iche’ speakers are native Spanish speakers based on their country of origin. The district has also agreed to improve its practices and professional development to address the specific needs of English learner students who speak K’iche’ so that they can access the same educational opportunities as other students in the district. 

“Students and families from Indigenous Maya communities often face unique barriers to accessing educational opportunities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This comprehensive agreement ensures that the district recognizes and addresses the needs of its substantial population of K’iche’-speaking students, and empowers parents to participate fully in their children’s education. The Civil Rights Division is committed to protecting every child’s right to equally participate in school.”  

The agreement results from the department’s investigation under the Equal Educational Opportunities Act of 1974, opened in 2020. The district cooperated at every stage of the investigation and committed to improving its programs through revised practices and professional development. The Justice Department will monitor the district’s implementation of the settlement agreement for at least three full school years to ensure that the district complies with its obligations.

The enforcement of the Equal Educational Opportunities Act of 1974 is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt. View the Spanish translation of this press release here.

Play audio in K'iche' below:

Audio file

 

Translation in K'iche'

The Justice Department today filed a proposed consent decree with the U.S. District Court for the Southern District of Indiana to resolve its lawsuit against the Town of Clarksville, Indiana, for violating Title I of the Americans with Disabilities Act (ADA).  

The lawsuit alleged that the town’s police department unlawfully revoked a job offer to a qualified police officer because of his human immunodeficiency virus (HIV) diagnosis. The officer had been successfully working for the Town’s police department as a volunteer reserve officer for over a year and was fully qualified to work as a police officer. Title I of the ADA prohibits employers from discriminating against qualified individuals on the basis of disability. Discrimination includes withdrawing a job offer to a qualified individual based on unsupported and stereotypical views of the applicant’s disability. 

“No individual should be subject to employment discrimination based on their HIV status,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “The complainant’s dream job was taken away because of unfounded assumptions that his HIV diagnosis would impact his ability to safely do the job. This settlement reflects the Justice Department’s firm commitment to enforcing the rights of job applicants and employees who experience unlawful discrimination based on disability.”

“Workers living with HIV, including those in law enforcement, deserve to be free from unlawful discrimination,” said U.S. Attorney Zachary A. Myers for the Southern District of Indiana. “This settlement will ensure that qualified individuals who seek to serve their communities won’t be excluded as a result of unfounded stereotypes and misinformation about HIV. This office will continue to work closely with our partners in the Civil Rights Division to protect the civil rights of employees and continue the fight to uphold the hard-fought protections of the Americans with Disabilities Act.”

Under the terms of the consent decree, which must be approved by the court, Clarksville will revise its policies and procedures regarding employment-related medical examinations and will train relevant personnel on the requirements of Title I of the ADA. The town will also pay $150,000 in compensatory damages to the complainant and provide the complainant with an affidavit that makes clear to future employers that his termination by the town was through no fault of his own. 

Title I of the ADA prohibits employers from discriminating against qualified individuals on the basis of disability. Discrimination includes withdrawing a job offer to a qualified individual based on unsupported and stereotypical views of the applicant’s disability.  

This case was handled by the department’s Civil Rights Division and the U.S. Attorney’s Office for the Southern District of Indiana based on a referral from the Indianapolis District Office of the Equal Employment Opportunity Commission. The department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living and economic self-sufficiency for people with disabilities. The complaint can be viewed here.

For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. For more information on the Civil Rights Division, please visit http://www.justice.gov/crt.  Individuals who believe they may have been victims of discrimination may file a complaint at https://civilrights.justice.gov/.

Attorney General Merrick B. Garland announced today during the White House United We Stand Summit that over the next year, all 94 U.S. Attorneys’ Offices (USAOs) will host a new nationwide initiative to combat unlawful acts of hate. The United Against Hate program is convening local forums that connect community groups to federal, state, and local law enforcement to increase community understanding and reporting of hate crimes; build trust between law enforcement and communities; and create and strengthen alliances between law enforcement and other government partners and community groups to combat unlawful acts of hate.

“The Justice Department remains committed to enforcing federal hate crime laws,” said Attorney General Merrick B. Garland. “That is why the Justice Department has launched its new United Against Hate program. This initiative brings together community groups, community leaders, and law enforcement at every level to build trust and strengthen coordination to combat unlawful acts of hate.”

The first cohort of 16 USAOs rolling out United Against Hate programs this fall includes the following districts: Arizona, Central District of California, Eastern District of California, Connecticut, Idaho, Middle District of Louisiana, Southern District of New York, Western District of New York, Southern District of Ohio, Middle District of Pennsylvania, South Dakota, Southern District of Texas, Eastern District of Virginia, Vermont, Western District of Washington, and Western District of Wisconsin. The Department will expand the United Against Hate program to all 94 U.S. Attorneys’ Offices next year. 

“U.S. Attorneys are critical partners in the Justice Department’s efforts to respond to hate crimes in communities across our country,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The stronger the ties between communities and law enforcement, the more faith that communities will have that their allegations will be investigated and taken seriously. This moment requires an all-hands-on-deck strategy to fully confront unlawful acts of hate. The United Against Hate program brings together the vast network of civil rights, government, faith, and community-based leaders needed to improve reporting, promote prevention strategies and build the resilience needed to confront hate crimes and incidents.”

“To effectively reduce hate crimes at the local level, it’s important to garner community buy-in,” said Director Monty Wilkinson of the Justice Department’s Executive Office for U.S. Attorneys (EOUSA). “That means building relationships with community leaders and residents, listening to their description of their community’s needs and priorities, and then effectively communicating how USAOs and other Justice Department efforts can address those issues and help to increase public safety. This program will build bridges among community members and law enforcement, helping them to work together to combat unlawful acts of hate.”

Through using hypothetical scenarios and video clips depicting real-life hate crime cases and stories, United Against Hate promotes robust interaction between community members and law enforcement participants. Program topics include: defining hate crimes versus hate incidents; the importance of reporting unlawful acts of hate; providing options for responding to hate incidents when situations do not constitute a federal or state crime; and distinguishing unlawful conduct from protected First Amendment activity, including identifying protected speech versus speech that advocates violence or encourages people to commit hate crimes.

The launch follows a successful pilot of the program last spring by three USAOs — New Jersey, Massachusetts, and the Eastern District of Washington. Attorney General Garland announced the conclusion of the pilot for the United Against Hate program at a Justice Department event in May commemorating the one-year anniversary of the Attorney General’s memorandum on improving the Department’s efforts to combat unlawful acts of hate and the enactment of the COVID-19 Hate Crimes and Khalid Jabara-Heather Heyer NO HATE Acts.

Development of the United Against Hate program was led by the Civil Rights Division. EOUSA and other components in the Department’s Hate Crimes Enforcement and Prevention Initiative, including the Community Relations Service, the Community Oriented Policing Services Office, the FBI, and the Office of Justice Programs, provided critical assistance in developing the program.

A federal grand jury in Yakima, Washington, returned an indictment charging a Washington woman and her now-closed company with manufacturing and distributing tainted fruit juice and deceiving customers about the contaminated products.

The indictment alleges that Mary Ann Bliesner, 80, of Sunnyside, Washington, and her company, Valley Processing Inc. (VPI), conspired with others to distribute tainted and potentially unsafe apple and grape juice concentrate to customers in the United States and abroad. The indictment alleges that between October 2012 and June 2019, Bliesner’s juice products were made under insanitary conditions and contained potentially harmful levels of contaminants, such as arsenic.

The indictment further alleges that Bliesner (the former president and primary owner of VPI) and VPI lied to customers about the age and quality of their products. The indictment alleges that in some instances, the defendants sold juice products after storing them for years outside and exposed to the elements. According to the indictment, at least some of those products later were sold to customers who supplied the National School Lunch Program, which provides free or reduced-cost lunches to children. The indictment additionally alleges that Bliesner and VPI failed to register two facilities that they used to store fruit juice products and lied to inspectors with the U.S. Food and Drug Administration (FDA) about the existence and use of those facilities. 

In November 2020, the United States filed a civil complaint in federal court seeking to enjoin Bliesner and VPI from producing, storing or selling juice or juice products. In January 2021, Bliesner and VPI agreed to a consent injunction in which Bliesner and VPI promised that they were no longer processing, manufacturing, preparing, packing, holding or distributing any type of food, and would not do so in the future without first notifying and receiving approval from the FDA. VPI subsequently closed.

The criminal indictment returned today charges Bliesner with 12 felony counts of fraud, conspiracy, false statements, and violating the Food, Drug, and Cosmetic Act. The defendant is scheduled for her initial court appearance Oct. 5 before U.S. Magistrate Judge Alex Ekstrom of the U.S. District Court for the Eastern District of Washington. If convicted, she faces a maximum sentence of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FDA’s Office of Criminal Investigations investigated the case. Trial Attorney James J. Hennelly and Senior Trial Attorney David Gunn of the Justice Department’s Civil Division’s Consumer Protection Branch, and Assistant U.S. Attorneys Dan Fruchter and Tyler H.L. Tornabene for the Eastern District of Washington are prosecuting the case.

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

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

A federal grand jury in Topeka, Kansas, returned a six-count indictment, unsealed today, charging former Kansas City, Kansas, Police Department detective Roger Golubski with federal civil rights crimes for sexually assaulting two victims while acting under color of law. 

The first three counts of the indictment charge Golubski with sexually assaulting the first victim on multiple occasions between 1998 and 2001 by digitally penetrating her and forcing her to perform oral sex on him in his vehicle; by raping her in his vehicle; and by performing oral sex on her, making her perform oral sex on him and raping her in and next to his vehicle. The remaining three counts of the indictment charge Golubski with sexually assaulting the second victim on multiple occasions between 1999 and 2002 by raping her in her home; making her perform oral sex on him in his vehicle; and making her perform oral sex on him and raping her in her home. The indictment alleges that Golubski’s conduct included aggravated sexual abuse and kidnapping.

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

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

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

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

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

El Departamento de Justicia anunció hoy un acuerdo conciliatorio con las escuelas públicas de New Bedford, el cual resuelve la investigación del Departamento de las prácticas del distrito escolar en su comunicación con padres y tutores cuyo dominio del inglés es limitado, incluyendo con personas que hablan quiché, un idioma indígena maya. Entre otros pasos, el Distrito implementará medidas eficaces para identificar correctamente los idiomas que los estudiantes hablan, así como los que hablan sus padres y tutores, para que el personal escolar no dé por sentado que personas que hablan quiché sean hispanoparlantes nativos, con base en su país de origen. Asimismo, el Distrito ha acordado mejorar su prácticas y desarrollo profesional con el fin de abordar las necesidades específicas de estudiantes que hablan quiché y que están aprendiendo inglés para que estos puedan acceder a las mismas oportunidades educativas que otros estudiantes en el Distrito. 

«Estudiantes y familias que provienen de comunidades indígenas mayas suelen enfrentar barreras únicas a la hora de acceder a oportunidades educativas. Este acuerdo integral asegura que el Distrito reconozca y aborde las necesidades de su población considerable de estudiantes que hablan quiché y que empodere a padres a participar plenamente en la educación de sus hijos», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «La División de Derechos Civiles está comprometida a proteger el derecho de cada niño a la igualdad de participación en la escuela». 

El acuerdo es el resultado de la investigación del Departamento al amparo de la ley de Igualdad de Oportunidades Educativas de 1974 que se inició en el año 2020. El Distrito cooperó en cada paso de la investigación y se comprometió a mejorar sus programas mediante una revisión de sus prácticas y el desarrollo profesional. Por otra parte, el Departamento de Justicia supervisará la implementación del acuerdo conciliatorio por parte del Distrito durante al menos tres años escolares completos con el fin de garantizar que el Distrito cumpla con sus obligaciones.

La ejecución de la ley de Igualdad de Oportunidades Educativas de 1974 es una de las prioridades principales de la División de Derechos Civiles del Departamento de Justicia. Para más información sobre la División de Derechos Civiles, visite su sitio web en www.justice.gov/crt-espanol.

Oji Dipartamentu di Justisa anunsia un akordu ku Skólas Públiku di New Bedford (New Bedford Public Schools) pa rizolve investigason di dipartamentu sobri kes prátika di distritu skolar pa kumunika ku pais y tutoris ku kunhisimentu limitadu na inglês, inkluindu falantis di K’iche’, un língua nativu Maia.

Entri otus midida, distritu ta inplimenta mididas efikas pa identifika kes língua faladu pur alunus kuretamenti, y tanbé pa pais y tutoris, asi pa kes funsionárius di skóla ka ta pensa ma falantis di K'iche' é falantis nativu di spanhol pamodi ses país di orijen. Distritu tanbé konkorda na midjora ses prátika y dizenvolvimentu profisional pa satisfaze nisisidadis spesífiku di alunus di inglês ki ta fala K'iche' asi pa es pode ten asésu pa kes mésmu oportunidadis idukativu sima kes otus alunu di distritu.

“Alunus y famílias di kumunidadis indíjina Maia, txeu bês, ta infrenta bareras úniku pa ten asésu pa oportunidadis idukativu”, asi ki Prokurador-Jeral Adijuntu Kristen Clarke fla, di Divizon di Direitus Sivil di Dipartamentu di Justisa (Justice Department’s Civil Rights Division). “Es akordu jeral ta garanti ma distritu ta rikunhese y ta satisfaze kes nisisidadis di grandi parti di populason di studantis di língua kiche’ y ta kapasita pais pa partisipa na idukason di ses fidjus konpletamenti. Divizon di Direitus Sivil (The Civil Rights Division) sta inpenhadu pa proteje direitu di tudu kriansas a partisipa di forma igual na skóla”.

Es akordu ta rizulta di invistigason di dipartamentu konformi Lei di Igualdadi di Oportunidadis Idukativu di 1974 (Equal Educational Opportunities Act of 1974), inisiadu na 2020. Distritu kopera na tudu kes etapa di investigason y konprometi midjora ses prugrama através di rivizon di prátikas y dizenvolvimentu prufisional. Dipartamentu di Justisa ta kontrola inplimentason di es akordu di distritu duranti peluménus três anu letivu konpletu pa garanti ki distritu ta kunpri ku ses obrigason.

Aplikason di Lei di Igualdadi di Oportunidadis Idukativu di 1974 é un di kes prinsipal prioridadi di Divizon di Direitus Sivil di Dipartamentu di Justisa. Informason adisional sobri Divizon di Direitus Sivil sta dispunível na ses pájina di internet na www.justice.gov/crt.

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O Departamento de Justiça anunciou hoje um acordo com as Escolas Públicas de New Bedford (New Bedford Public Schools) para resolver a investigação do departamento sobre as práticas do distrito escolar relativamente à comunicação com os pais e tutores com proficiência limitada em inglês, incluindo falantes de K’iche, uma língua indígena maia.

Entre outras medidas, o distrito irá implementar medidas eficazes no sentido de identificar corretamente as línguas faladas pelos alunos, bem como pelos pais e tutores, para que os funcionários da escola não assumam que os falantes de K'iche são falantes nativos do espanhol com base no seu país de origem. O distrito também concordou em melhorar as suas práticas e o desenvolvimento profissional para atender às necessidades específicas dos alunos de inglês que falam K'iche para que possam ter acesso às mesmas oportunidades educacionais que os outros alunos do distrito.

“Muitas vezes, os estudantes e as famílias das comunidades indígenas maias enfrentam obstáculos únicos no acesso às oportunidades educacionais”, disse a Procuradora-geral Adjunta Kristen Clarke, da Divisão de Direitos Civis do Departamento de Justiça (Justice Department’s Civil Rights Division). “Este acordo abrangente garante que o distrito reconheça e dê resposta às necessidades da sua população substancial de estudantes de língua K'iche e capacita os pais a participar plenamente na educação dos seus filhos. A Divisão de Direitos Civis está empenhada em proteger o direito de todas as crianças de fazer parte da escola de forma equitativa.”

O acordo resulta da investigação do departamento ao abrigo da Lei de Igualdade de Oportunidades Educativas de 1974 (The Equal Educational Opportunities Act of 1974), iniciado em 2020. O distrito cooperou em todas as etapas da investigação e comprometeu-se a melhorar os seus programas através da revisão das práticas e do desenvolvimento profissional. O Departamento de Justiça irá supervisionar a implementação do acordo pelo distrito durante pelo menos três anos letivos completos para garantir que o distrito cumpra as suas obrigações.

A aplicação da Lei de Igualdade de Oportunidades Educativas de 1974 é uma prioridade absoluta da Divisão de Direitos Civis do Departamento de Justiça. Informações adicionais sobre a Divisão de Direitos Civis estão disponíveis na website www.justice.gov/crt.

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Today, the Justice Department’s National Security Division and the U.S. Department of Defense (DOD) filed a submission with the Federal Communications Commission (FCC) in support of action to improve the security of internet routing.

This submission was filed in connection with an FCC Notice of Inquiry on Secure Internet Routing launched in February and offered in support of the comment previously submitted by the U.S. Department of Homeland Security (DHS) Cybersecurity and Infrastructure Security Agency.

“We applaud the FCC’s decision to launch this inquiry on this important issue,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “We appreciate the opportunity to provide our input on how to address vulnerabilities threatening the security of internet routing.”

According to the filing, known vulnerabilities in the Border Gateway Protocol (BGP), which governs internet traffic routing, continue to put U.S. person and commercial data and communications at risk of theft, espionage and sabotage by foreign adversaries. Though BGP enables network providers to share information about traffic routing so that they can identify the “best” routes for traffic to reach its destination, it does not include any security features. Accordingly, the Justice Department and DOD recommended today that the FCC manage BGP-associated vulnerabilities through a combination of technical security standards and increased transparency.

As an example, BGP vulnerabilities facilitated China Telecom America’s ability to misroute U.S. internet traffic to the People’s Republic of China (PRC), according to Executive Branch recommendations previously filed with the FCC. As an entity under the control of the PRC government, China Telecom’s exploitation of BGP vulnerabilities provided a foreign adversary of the United States with opportunities to disrupt, capture, examine and alter U.S. traffic.

The nation’s longstanding reliance upon voluntary measures to secure sensitive U.S. data may no longer be sufficient to address this vulnerability. As a result, the Justice Department and DOD support FCC’s initiation of a process to better secure BGP, including through technical security and transparency measures that will help safeguard the data and communications that are so central to U.S. national security interests.

In a meeting with media representatives, Attorney General Merrick B. Garland reaffirmed today the Justice Department’s commitment to a free and independent press and provided an update on efforts to further ensure journalists acting within the scope of news gathering are protected from compelled disclosure of information revealing their sources.

In July 2021, the Attorney General announced a new policy that restricts the use of compulsory process to obtain information from, or records of, members of the news media acting within the scope of newsgathering activities. To help ensure the durability of the policy changes, he asked Deputy Attorney General Lisa O. Monaco to undertake a process to codify the policy change reflected in the July 2021 announcement into Department regulations and to otherwise update those regulations. Today, Department officials provided an update on that review, noting that the forthcoming revised regulations are intended to further strengthen protections to news media outlets and journalists while providing clear guidelines for Justice Department investigators and prosecutors. The Department expects to finalize and post the regulations online this fall.

In addition to the Attorney General and Deputy Attorney General, other Department attendees included: Matthew Klapper, Chief of Staff to the Attorney General; Marshall Miller, Principal Associate Deputy Attorney General; Anthony Coley, Director, Office of Public Affairs and Senior Advisor to the Attorney General; Dena Iverson, Principal Deputy Director, Office of Public Affairs; Julie Dickerson, Counsel to the Attorney General; David Newman, Associate Deputy Attorney General; and Margot Benedict, Counsel to the Deputy Attorney General.

News media representative attendees included: Bruce Brown, Executive Director, Reporters Committee for Freedom of the Press; Steve Adler, Chair, Reporters Committee for Freedom of the Press; Nancy Barnes, Senior Vice President of News and Editorial Director, NPR; Sally Buzbee, Executive Editor, Washington Post; Ingrid Ciprian-Matthews, Executive Vice President, Newsgathering CBS; Jason Conti, Executive Vice President, General Counsel and Chief Compliance Officer, Dow Jones; Sam Feist, Washington bureau chief, CNN; Dana Green, Senior Counsel, New York Times; Karen Kaiser, Senior Vice President, General Counsel, and Corporate Secretary, Associated Press; Jane Mayer, Staff Writer and Chief Washington Correspondent, New Yorker; Jim McLaughlin, Deputy General Counsel, Washington Post; Ken Strickland, Vice President and Washington Bureau Chief, NBC; Susan Page, Washington Bureau Chief, USA Today; and David Vigilante, Executive Vice President and General Counsel, CNN.

On Monday, Sept. 12, 2022, Justice Department leadership met with leaders from the criminal public defender and civil legal aid communities in two separate events, coordinated by the Office for Access to Justice, to discuss access to justice, the right to counsel, and expanding legal assistance in both the criminal and civil legal systems.  This represents the first time in over five years that the Department has hosted leadership from these public defender communities, and the first time in over a decade that all of the Executive Directors of the legal aid organizations funded by the Legal Services Corporation had the opportunity to gather together in person.

“The legitimacy of the law depends on equal justice,” said Attorney General Merrick B. Garland. “But equal justice depends on equal access to justice.  And equal access, in turn, depends on the thousands of professionals who do the difficult and demanding work of providing legal services to those in need.”

On Monday afternoon, Associate Attorney General Vanita Gupta, Assistant Attorney General Kristen Clarke for the Civil Rights Division, Office for Access to Justice Director Rachel Rossi, Office of Justice Programs Principal Deputy Assistant Attorney General Amy Solomon and other Department staff met with the National Legal Aid and Defender Association, the American Council of Chief Defenders, the Black Public Defender Association, the Gault Center, the National Association for Public Defense, and the National Association of Criminal Defense Lawyers.  The groups discussed a broad set of issues, including the need for data and research, the challenges of retention and recruitment, and the upcoming 60th anniversary of Gideon v. Wainwright, the landmark case establishing a constitutional right to counsel in criminal proceedings.  Justice Department officials highlighted the important role of public defenders in protecting constitutional rights.

“In some places, we know there is a constructive denial of the right to counsel because defender systems are simply under-resourced,” said Associate Attorney General Gupta.  “The tragic impact of COVID across our court systems has uniquely exacerbated these issues for public defense offices.”

Attorney General Garland, Associate Attorney General Gupta, and Director Rossi later spoke to the Executive Directors of over 100 legal aid organizations at a reception that also included leadership from the Legal Services Corporation.  The event was an opportunity for the civil legal aid community to gather with Department leadership and staff in recognition of the vital role that legal services play in our democracy.

Competition Enforcement Leaders: Canadian Commissioner of Competition Matthew Boswell; Federal Trade Commission Chair Lina Khan; Acting Chair Commissioner Brenda Hernandez of the Mexican Federal Economic Competition Commission; Assistant Attorney General Jonathan Kanter of Department of Justice

The Justice Department’s Antitrust Division participated in a trilateral meeting today with enforcers from Mexico’s Federal Economic Competition Commission, Canada’s Competition Bureau, and the U.S. Federal Trade Commission. The meeting took place at FTC headquarters in Washington, D.C. and included roundtable discussions on current enforcement priorities and the current legal environment in each jurisdiction. Assistant Attorney General Jonathan Kanter led a conversation on merger enforcement, focusing on the digital economy and forthcoming revisions to the U.S. merger guidelines.

“Canada and Mexico are important partners for the United States in upholding antitrust laws and protecting North American workers and consumers,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “As antitrust enforcement increasingly spans international borders, building a unified response is vital to meeting today’s market realities. Cooperation among neighboring agencies is a crucial step in this process.”    

Federal Trade Commission Chair Lina Khan moderated a discussion of recent developments in the United States, Canada, and Mexico.

“Working closely with our North American neighbors is key for promoting fair, open, and competitive markets,” Federal Trade Commission Chair Lina Khan said. “Deepening collaboration and cooperation lets us strengthen our respective approaches to enforcement and better protect our citizens.”

This year’s meetings mark the first joint in-person gathering between the four agencies since 2019, after a pause due to the COVID-19 pandemic.  

On the 28th anniversary of the original authorization of the Violence Against Women Act (VAWA), the Department of Justice announced $224.9 million in grants designed to enhance victim services and justice solutions for victims of sexual assault, domestic violence, dating violence, and stalking.  Since the passage of VAWA, the United States has monumentally transformed the way communities and systems such as law enforcement, courts, prosecution, and service providers effectively address the needs of survivors.  Funding, appropriated through VAWA and administered by the Office on Violence Against Women (OVW), has supported communities to implement policies and practices that protect and honor survivors.

“For nearly three decades, VAWA has enabled the Justice Department’s Office on Violence Against Women to provide essential support to help empower survivors, hold offenders accountable, and keep communities safe,” said Attorney General Merrick B. Garland. “The grants we are announcing today represent the Department’s renewed commitment to working alongside our partners across the country -- victim services providers, law enforcement agencies, prosecutors, courts, and community-based organizations -- to meet the crisis of gender-based violence with the urgency it demands.”

Grantees can use the grants to provide lifesaving services for hundreds of thousands of survivors each year, improve investigations and prosecutions, reach survivors in rural communities, and leverage the services of statewide coalitions charged with supporting local programs with trainings and service coordination.

• A total of $140,466,152 has been awarded across all 50 states and 6 territories under the STOP (Services, Training, Officers, and Prosecutors) Violence Against Women Formula Grants to develop and strengthen the criminal justice system’s response to violence against women and to enhance direct services for survivors.
• To address economic stability central to ending violence, 73 grants totaling $36,195,932 will provide housing and related wrap-around-services to survivors and their children under the Transitional Housing Program.
• OVW’s Rural Program awarded a total of $33,404,213 to support 44 projects uniquely designed to prevent and respond to these crimes in rural areas and promote safety and healing for survivors. The funding supports collaboration among victim advocates, law enforcement, prosecutors, court personnel, and community leaders to reach survivors and their families whose safety may be further jeopardized by geographical isolation.
• Eighty-seven grants totaling $14,887,922, awarded under the State and Territory Domestic Violence and Sexual Assault Coalitions Program, will support state and territorial coalitions to expand the capacity of local domestic violence and sexual assault programs, identify statewide gaps in services, and coordinate state, local, and territorial systems to address the needs of survivors.

“The grants announced today represent the Justice Department’s commitment to furthering the progress VAWA has achieved over the last three decades,” said Deputy Attorney General Lisa O. Monaco. “They help ensure that survivors who come forward to report abuse are met with competent and compassionate professionals who have the resources, training and institutional support to do their jobs.”

“Projects funded by the grants announced today build the community-wide partnerships that help break the cycle of violence using holistic and innovative approaches,” said Associate Attorney General Vanita Gupta. “An effective response to gender-based violence requires engagement by justice and healthcare professionals, victim advocates, culturally specific service providers, forensic scientists, and educators, among others. It takes all of us to bring about real change.”

“In communities throughout the country, VAWA has literally opened doors for millions of individuals and families who have suffered violence and needed somewhere safe to go,” said OVW Acting Director Allison Randall. “The grants issued today help keep those doors open and create new pathways to a life free of violence through innovative interventions that keep in step with the dynamic needs of survivors, especially for survivors from rural communities and historically underserved populations."

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

On the 28th anniversary of the original authorization of the Violence Against Women Act (VAWA) the Department of Justice announced $224.9 million in grants designed to enhance victim services and justice solutions for victims of sexual assault, domestic violence, dating violence, and stalking.  Since the passage of VAWA, the United States has monumentally transformed the way communities and systems such as law enforcement, courts, prosecution, and service providers effectively address the needs of survivors.  Funding, appropriated through VAWA and administered by the Office on Violence Against Women (OVW), has supported communities to implement policies and practices that protect and honor survivors.

“For nearly three decades, VAWA has enabled the Justice Department’s Office on Violence Against Women to provide essential support to help empower survivors, hold offenders accountable, and keep communities safe,” said Attorney General Merrick B. Garland. “The grants we are announcing today represent the Department’s renewed commitment to working alongside our partners across the country -- victim services providers, law enforcement agencies, prosecutors, courts, and community-based organizations -- to meet the crisis of gender-based violence with the urgency it demands.”

Grantees can use the grants to provide lifesaving services for hundreds of thousands of survivors each year, improve investigations and prosecutions, reach survivors in rural communities, and leverage the services of statewide coalitions charged with supporting local programs with trainings and service coordination.

• A total of $140,466,152 has been awarded across all 50 states and 6 territories under the STOP (Services, Training, Officers, and Prosecutors) Violence Against Women Formula Grants to develop and strengthen the criminal justice system’s response to violence against women and to enhance direct services for survivors.
• To address economic stability central to ending violence, 73 grants totaling $36,195,932 will provide housing and related wrap-around-services to survivors and their children under the Transitional Housing Program.
• OVW’s Rural Program awarded a total of $33,404,213 to support 44 projects uniquely designed to prevent and respond to these crimes in rural areas and promote safety and healing for survivors. The funding supports collaboration among victim advocates, law enforcement, prosecutors, court personnel, and community leaders to reach survivors and their families whose safety may be further jeopardized by geographical isolation.
• Eighty-seven grants totaling $14,887,922, awarded under the State and Territory Domestic Violence and Sexual Assault Coalitions Program, will support state and territorial coalitions to expand the capacity of local domestic violence and sexual assault programs, identify statewide gaps in services, and coordinate state, local, and territorial systems to address the needs of survivors.

“The grants announced today represent the Justice Department’s commitment to furthering the progress VAWA has achieved over the last three decades,” said Deputy Attorney General Lisa O. Monaco. “They help ensure that survivors who come forward to report abuse are met with competent and compassionate professionals who have the resources, training and institutional support to do their jobs.”

“Projects funded by the grants announced today build the community-wide partnerships that help break the cycle of violence using holistic and innovative approaches,” said Associate Attorney General Vanita Gupta. “An effective response to gender-based violence requires engagement by justice and healthcare professionals, victim advocates, culturally specific service providers, forensic scientists, and educators, among others. It takes all of us to bring about real change.”

“In communities throughout the country, VAWA has literally opened doors for millions of individuals and families who have suffered violence and needed somewhere safe to go,” said OVW Acting Director Allison Randall. “The grants issued today help keep those doors open and create new pathways to a life free of violence through innovative interventions that keep in step with the dynamic needs of survivors, especially for survivors from rural communities and historically underserved populations.

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

 

FBI Director Christopher Wray announced today in a video message the results of joint violent crime enforcement efforts throughout the summer, recognizing the essential cooperation of local and state law enforcement agencies around the country.

Between May 1, and Sept. 2, 2022, the FBI and local and state law enforcement partners arrested nearly 6,000 alleged violent criminals and gang members and seized more than 2,700 firearms connected to criminal conduct. Throughout the summer, the FBI and its partners also disrupted nearly 845 and dismantled 105 violent gangs and criminal enterprises and seized large quantities of fentanyl and other deadly narcotics.

“Keeping our communities and our country safe is the Justice Department’s priority, every single day. At the beginning of this year, we further intensified our department-wide efforts to combat violent crime, including by directing all 94 U.S. Attorneys’ offices to develop and implement district-specific violent crime reduction strategies,” said Attorney General Merrick B. Garland. “Together with our law enforcement partners across the country, we will continue to do everything we can to protect our communities from violent crime.”

“I believe the FBI’s most sacred duty is to ensure people can live free from fear in their own homes and neighborhoods,” said Director Wray. “To that end, we dedicate agents, analysts, and technical resources across the country to work with state and local law enforcement on these operations.” 

These joint violent crime enforcement efforts resulted in FBI operations occurring in many communities across the country, including in New Mexico, California, Texas, Illinois, Hawaii, Puerto Rico, Pennsylvania, and Washington, D.C., as summarized below:

The FBI Albuquerque Violent Gang Task Force executed 16 federal search warrants targeting violent street and prison gangs. More than a dozen federal, state, and local law enforcement agencies and SWAT teams seized more than one million fentanyl pills, 142 pounds of methamphetamine, 37 firearms, nine ballistic vests, two hand grenades, and $1.8 million in cash.

The Los Angeles Metropolitan Task Force on Violent Gangs arrested 28 members and associates of the South Los Angeles-based Eastside Playboys street gang for alleged federal racketeering, firearms, and narcotics charges. The task force seized approximately 47 firearms, almost 200 kilograms of methamphetamine, 27 kilograms of cocaine, more than 13 kilograms of fentanyl, and more than seven kilograms of heroin.

In Houston, 10 MS-13 gang members were federally indicted for racketeering conspiracy, murder, attempted murder, and conspiracy to murder in aid of racketeering, related firearms charges, and obstruction of justice. The seven murders alleged in the indictment were especially brutal, using mutilation and dismemberment with machetes, and included the killing of a juvenile female and a police informant.

As part of FBI Sacramento’s efforts in a multi-agency coordinated operation targeting the South Lake Tahoe area, seven defendants were charged with conspiracy to distribute and distribution of methamphetamine and heroin. Separately, four subjects were indicted for trafficking methamphetamine and firearms, including an AR-15-style rifle, a shotgun, and several handguns, some of which were “ghost” guns, lacking serial numbers.

In Chicago, three individuals were charged for two separate violent carjackings. In both instances, the defendants allegedly brandished a semiautomatic handgun, and in one, the defendants also allegedly used a semiautomatic rifle. Another defendant was charged in a separate carjacking in downtown Chicago, which also included the use of a firearm.

Out of FBI San Antonio’s Waco Resident Agency, a federal grand jury indicted 27 defendants for their involvement in a Texas-based drug trafficking organization operating a methamphetamine distribution ring, leading to numerous arrests.

A federal investigation into a Hawaiian criminal enterprise resulted in three subjects being arrested for their alleged participation in drug trafficking of methamphetamine and cocaine, operating an illegal gambling business, as well as firearms possession. The criminal enterprise operated throughout the Hawaiian Islands.

Forty-one violent gang members from Puerto Rico were arrested on drug trafficking and firearms charges. The criminal organization allegedly distributed heroin, cocaine, marijuana, Oxycodone, Xanax, and other drugs throughout Puerto Rico.

The FBI Washington Field Office’s Cross Border Safe Streets Task Force, recovered eight firearms and significant quantities of Fentanyl and crack cocaine stemming from searches related to their investigation. Ten defendants were arrested for allegedly conspiring to distribute Fentanyl and cocaine throughout the D.C. area.

Twenty-five people were arrested in Pennsylvania for allegedly running a drug trafficking ring. The subjects allegedly engaged in a widespread drug distribution conspiracy that crossed state lines into Florida, Puerto Rico, and Arizona.

Similar to the those listed here, the FBI and our law enforcement partners conducted numerous operations in many other cities across the nation, including Cleveland, Buffalo, New Haven, Charlotte, Springfield, and more, and will continue these efforts against violent crime to help keep our communities safe for everyone.

Learn more about the FBI’s work in investigating violent crime at fbi.gov/violentcrime. Report tips to tips.fbi.gov; you can remain anonymous, or call 1-800-CALL FBI (800-225-5324).

Assistant Attorney General Jonathan Kanter speaks with members of National Farmers Union in RFK Main Justice Building. 

The Justice Department’s Antitrust Division hosted 30 farmers affiliated with the National Farmers Union (NFU) on Sept. 12, 2022, to discuss the state of competition in agriculture markets and strengthening antitrust enforcement. The Department is committed to fighting for fairness in food systems and protecting American farmers, producers, workers, and consumers from the effects of consolidation throughout the food supply chain.

Yesterday’s meeting builds on the Division’s ramped up efforts to combat anticompetitive practices and advocate for competition in agricultural markets. The Division has brought all of its tools to bear. Over the last year, the Antitrust Division has put special focus on competition in agriculture, including by suing to block U.S. Sugar from acquiring its rival, Imperial Sugar Company.

“Competition in agriculture is critical. Too often, farmers and livestock producers have too few suppliers to buy from and too few buyers to sell to. Farmers and their families work incredibly hard and deserve to see the fruits of their labor and the American dream,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Yesterday, we heard from farmers about how monopolies, collusion, and other anticompetitive conduct threatens their livelihood and their communities. Protecting competition and the rule of law in agricultural markets is core to the work of the Antitrust Division, and we will vigorously enforce the antitrust laws in this area.”

In addition, this summer, the Division filed a civil antitrust lawsuit against a data consulting firm and its president, as well as three poultry processors, to end a long-running conspiracy to exchange information about wages and benefits for poultry processing plant workers. The proposed consent decree with defendant poultry processors Cargill, Sanderson Farms and Wayne Farms would prohibit them from sharing competitively sensitive information about poultry.

This effort—in cooperation with the USDA—built on other interagency partnerships with the USDA, including the Farmer Fairness reporting portal, which allows farmers and ranchers to report anticompetitive practices online.

The Division protects competition, including through enforcement against monopolies, illegal mergers, collusion, and other anticompetitive abuses in agricultural markets. It also partners with state, federal, and international enforcers where appropriate to ensure vibrant food systems and free market competition in this critical economic sector.

Anyone with additional information about anticompetitive practices in livestock and poultry markets can go to farmerfairness.gov. Anyone with information about poultry industry collusion or competitors sharing non-public compensation information can contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or antitrust.complaints@usdoj.gov.

 

The Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the Northern District of Iowa announced today a settlement agreement with the Cedar Rapids Community School District in Cedar Rapids, Iowa, to address the discriminatory use of seclusion and restraint against students with disabilities.

The department’s investigation found that the school district inappropriately and repeatedly secluded and restrained students with disabilities as early as kindergarten in violation of Title II of the Americans with Disabilities Act (ADA). The department concluded that instead of meeting the needs of students with disabilities that affect their behavior, the school district subdued them through unnecessary restraints and improper confinement alone in small seclusion rooms, sometimes multiple times in one day and often for excessive periods of time. As a result of these practices, some students lost hundreds of hours of instructional time. The investigation also found that the school district did not end seclusion where students showed signs of crisis or trauma, or when there was no longer any threat of harm. Under the settlement agreement, the Cedar Rapids Community School District has voluntarily agreed to end the use of seclusion, reform its restraint practices, and improve its staff training on anticipating, appropriately addressing and de-escalating students’ disability-related behavior through appropriate behavioral interventions.

“Students with disabilities should not be subjected to discriminatory and abusive seclusion and restraint practices that deny them equal access to education,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When schools isolate and unlawfully restrain children with disabilities, rather than provide them with the supports needed for success in the classroom, they violate the promise of the Americans with Disabilities Act. Our agreement puts the Cedar Rapids Community School District on a path to significant institutional change and reform. We will continue working to ensure that school districts across the country are taking all steps needed to provide every student access to a safe and supportive learning environment.”

“Each and every child deserves an equal opportunity to learn and thrive,” said U.S. Attorney Timothy T. Duax for the Northern District of Iowa. “Our office, in partnership with the department’s Civil Rights Division, will vigorously investigate allegations of discrimination on the basis of disability in all settings, including in our public schools. I am heartened by the district’s commitment to this landmark agreement, which will undoubtedly improve the education and everyday lives of many students in our community.” 

The school district fully cooperated throughout the investigation. Under the settlement agreement, the school district will implement reforms needed to ensure that its practices do not discriminate against students with disabilities. The district will, among other steps:

• End its use of seclusion;
• Limit its use of restraints, revise its restraint procedures and practices, and consistently implement those procedures and practices in all schools;
• Report all instances of restraint and evaluate if they were justified;
• Offer counseling and other services to students who are restrained;
• Adopt policies and procedures to assess suicide risk, prevent suicide and self-harm, and implement immediate crisis intervention for students who threaten or engage in self-harm;
• Designate trained staff to collect and analyze restraint data and oversee the creation of appropriate behavior intervention plans;
• Deliver appropriate training and resources to help schools implement the agreement; and
• Hire two new administrators to oversee schools’ use of restraint, if any, and ensure the district’s compliance with the agreement and Title II of the ADA.

Enforcement of Title II of the ADA is a priority of the Civil Rights Division. This agreement, obtained jointly by the Civil Rights Division’s Educational Opportunities Section and the U.S. Attorney’s Office for the Northern District of Iowa, is the most recent in a series of Civil Rights Division settlements to address and prevent unlawful seclusion and restraint of students with disabilities in public schools. In December 2021, for example, the division reached an agreement with the Frederick County Public School District in Maryland, in which the school district agreed to prohibit the use of seclusion in district schools and take proactive steps to ensure that its practices do not discriminate against students with disabilities. In December 2020, the division reached a similar agreement with the North Gibson School Corporation in Indiana.  These and other matters build on the department’s steadfast commitment to ensuring educational equity and protection of students with disabilities.

Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the Educational Opportunities Section’s work is available at https://www.justice.gov/crt/educational-opportunities-section. To learn more about the Section’s work under the ADA to combat improper seclusion in schools, visit this website: https://www.justice.gov/schoolseclusion.

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

The Justice Department today intervened in a disability discrimination lawsuit brought by individuals with mobility disabilities against the City of San Juan, Puerto Rico under the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act (Section 504). The department’s complaint alleges that San Juan fails to provide people with mobility disabilities equal access to the city’s public sidewalk system.

The department’s complaint alleges that there are widespread accessibility issues with San Juan’s sidewalks, including curb ramps that are cracked, too steep or nonexistent, and walkways that are uneven, too narrow, or obstructed by bollards, utility poles or other obstacles. The department’s allegations are based on findings by the Department of Transportation Federal Highway Administration’s Office of Civil Rights as well as corroborating evidence developed in a subsequent investigation conducted by the department.

Both San Juan and the plaintiffs consented to the department’s intervention in the proceedings. The department has already participated in productive discussions with the parties and hopes for San Juan’s continued cooperation in reaching a resolution that brings the city into compliance with the ADA and Section 504.

“The ADA’s employment, transportation, and public accommodation protections provide little benefit to people with mobility disabilities if they cannot safely navigate a city’s streets and sidewalks,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This lawsuit aims to ensure that San Juan meets its obligations under federal law to ensure that its public sidewalk system is accessible to people with disabilities.”

“The ADA and Section 504 require that individuals with disabilities have equal access to city sidewalks so that they can fully participate in community life,” said U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico. “We are committed to ensuring that San Juan takes the necessary steps to make its sidewalks, curb ramps and crosswalks accessible to all city residents and visitors, and confident that we can work with the city and the plaintiffs to secure a meaningful resolution of this civil action.”

The motion and complaint seeking intervention were jointly filed by the department’s Civil Rights Division and the U.S. Attorney’s Office for the District of Puerto Rico. The department also previously filed a statement of interest in this matter.

For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA information line at 800‑514-0301 (TDD 800-514-0383) or visit www.ada.gov. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report.

U.S. District Court Judge John T. Fowlkes Jr. of the Western District of Tennessee today sentenced DiAne Gordon, 61, of Memphis, Tennessee, to 36 months in prison followed by two years’ supervised release in connection with her fabrication of discharge monitoring reports required under the Clean Water Act and the submission of those fraudulent documents to state regulators in Tennessee and Mississippi. The court further ordered Gordon to pay restitution in the amount of $222,388. On the fraud count, Gordon was sentenced to 26 months in prison, and she received an additional 10 months’ incarceration on the related probation revocation for having engaged in the criminal conduct while on supervision. 

According to court documents and information in the public record, Gordon was the co-owner and chief executive officer of Environmental Compliance and Testing (ECT). ECT held itself out to the public as a full-service environmental consulting firm and offered, among other things, sampling and testing of stormwater, process water and wastewater. 

Customers, typically concrete companies, hired ECT to take samples and analyze them in a manner consistent with Clean Water Act permit requirements. Gordon claimed to gather and send the samples to a full-service environmental testing laboratory. The alleged results were memorialized in lab reports and chain of custody forms submitted to two state agencies, Mississippi Department of Environmental Quality (MDEQ) and the Tennessee Department of Environment and Conservation (TDEC), to satisfy permit requirements. In reality, Gordon fabricated the test results and related reports. She even forged documents from a reputable testing laboratory in furtherance of her crime. Gordon then billed her clients for the sampling and analysis. Law enforcement and regulators quickly determined that Gordon created and submitted, or caused to be submitted, at least 405 false lab reports and chain of custody forms from her company in Memphis to state regulators since 2017. 

“Today’s sentence appropriately reflects the harm caused by Gordon’s betrayal of her position of trust and her fraud upon her customers, the regulatory authorities, and the citizens of Tennessee and Mississippi,” said Assistant Attorney Todd Kim of the Justice Department’s Environment and Natural Resources Division.   

“The Clean Water Act ensures that water quality is maintained throughout the United States,” said U.S. Attorney Joseph C. Murphy Jr. for the Western District of Tennessee. “Correct and accurate test results of discharges into rivers and stream and the honest reporting of those results to regulatory authorities are important parts of the Act’s regulatory framework. Without accurate test results and reporting of those results, the Clean Water Act will not work as Congress intended. Because honest reporting of this data is so important to the functioning of the Act, our office will vigorously prosecute individuals who falsely report test results.”

“Today’s sentence should be a reminder to those who choose to undermine the public’s confidence in our nation’s water quality for their own financial gain will be vigorously prosecuted,” said Special Agent in Charge Charles Carfagno of the Environmental Protection Agency Criminal Investigation Division’s (EPA-CID) Southeast Area Branch. “We commend the assistance of our state partners with the Mississippi Department of Environmental Quality and Tennessee Department of Environment and Conservation for their substantial assistance throughout this investigation.”

EPA-CID investigated the case. MDEQ and TDEC provided invaluable assistance to federal law enforcement officers.

Trial Attorney Banumathi Rangarajan of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Dean DeCandia and Principal Deputy Criminal Chief Carroll Andre for the Western District of Tennessee prosecuted the case.

Saipan – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Servillana Soriano, age 61, from the Republic of the Philippines was sentenced in the United States District Court for the Northern Mariana Islands to 1 month in prison and 7 months home detention for Conspiracy to Defraud the United States in violation of 18 U.S.C. § 371.  The Court also ordered 3 years of supervised release following imprisonment, 50 hours of community service, and a mandatory $100.00 special assessment fee. Soriano was previously found guilty by jury verdict on July 6, 2021.

From August 2018 to February 2019, Servillana Soriano agreed with co-conspirators to defraud the United States. The government’s evidence showed that Soriano, in exchange for money, filed fraudulent CW-1 petitions with U.S. Citizenship and Immigration Services for three Bangladeshi men.  The petitions indicated that they would be full-time employees of Soriano’s manpower company, RES International, LLC, in Saipan.  The co-conspirators, however, never worked for Soriano or her company, and the true purpose of filing the petitions was to get them lawful immigration status in order to remain in the Commonwealth of the Northern Mariana Islands.

“This case demonstrates our commitment to enforcing federal immigration laws in the CNMI,” stated United States Attorney Anderson.  “The CW-1 program is vital to maintaining the CNMI economy.  I urge anyone with knowledge of this criminal activity to contact Homeland Security Investigations in Saipan.”

“There are lawful ways for individuals to enter the United States and as Servillana discovered, HSI will thoroughly investigate those who try and circumvent our laws, including those who seek to defraud the U.S. with false claims,” said John F. Tobon, HSI Honolulu. “We continue to work with our law enforcement partners and the U.S. Attorney’s offices to protect the integrity of our immigration laws.”

The case was investigated by Homeland Security Investigations and prosecuted by Garth Backe, Assistant United States Attorney in the District of the Northern Mariana Islands.

The Justice Department announced today that it has filed a lawsuit alleging that the owner and managers of a rental property in Milwaukee, Wisconsin, harassed a tenant because of his sex, including his sexual orientation and his disability, in violation of the Fair Housing Act.

Today’s lawsuit, filed in the U.S. District Court for the Eastern District of Wisconsin, alleges that Dennis Parker, the onsite manager of the property, subjected a gay male tenant with a disability to unwelcome harassment, both verbally and through numerous text messages during his tenancy in 2020 and 2021. The complaint also alleges that Parker struck the tenant in the groin and threatened to evict him in retaliation for reporting the harassment to the police. The lawsuit also names as defendants Leaf Property Investments LLC which owns the property, and Sam Leaf, who manages the property. The complaint alleges that Parker managed the property on behalf of these defendants.   

The tenant, who later moved out of the property, filed a complaint with the Department of Housing and Urban Development (HUD) alleging that the defendants had violated the Fair Housing Act. After an investigation, HUD determined that the defendants had discriminated against the tenant in violation of the Fair Housing Act and it issued a charge of discrimination. After the tenant chose to have the matter decided in federal court, HUD referred the matter to the Justice Department.  

“We stand ready to use our civil rights laws to combat all forms of sexual harassment in housing, including harassment based on sexual orientation or gender identity,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “The Justice Department will hold accountable landlords and housing providers who engage in unlawful discrimination and harassment of vulnerable tenants.”

“No tenant should have to choose between having a stable residence or enduring sexual harassment from their landlord or property manager,” said U.S Attorney Richard G. Frohling for the Eastern District of Wisconsin. “The U.S. Attorney’s Office is committed to working with our federal, state, local, Tribal and community partners to combat all forms of sexual harassment in housing and to seeking justice for those impacted by this type of egregious conduct.”

“Housing discrimination has no place in our society,” said HUD Principal Deputy Assistant Secretary for Fair Housing and Equal Opportunity, Demetria L. McCain. “HUD is glad to partner with the Department of Justice to root out housing discrimination of all kinds, including discrimination on the basis of sexual orientation and disability.”

The lawsuit seeks an order requiring the defendants to pay monetary damages to the tenant and cease discrimination against any tenant based on sex and disability. 

The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorneys’ offices across the country. The goal of the  initiative is to address and combat unlawful sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the initiative in October 2017, the Justice Department has filed 25 lawsuits alleging sexual harassment in housing and recovered over $9.6 million for victims of such harassment. 

The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals may report harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination tip line at 1-833-591-0291, emailing the Justice Department at fairhousing@usdoj.gov, or submitting a report online. Individuals may also report such discrimination by contacting HUD at 1-800-669-9777 or by filing a complaint online.   

The Department of Justice, the Environmental Protection Agency (EPA) and the Conservation Law Foundation (CLF) announced an agreement with the State of New Hampshire and the New Hampshire Fish and Game Department. The agreement will require the Powder Mill State Fish Hatchery (the Hatchery) in New Durham, New Hampshire, the state’s largest fish hatchery, to take action to reduce phosphorus in its discharges to the Merrymeeting River, comply with a federal Clean Water Act permit and study downstream water quality.

The Hatchery is owned by the state and operated by the New Hampshire Fish and Game Department. CLF sued officials of the Fish and Game Department in 2018 under the citizen-suit provisions of the Clean Water Act, alleging, among other claims, violations of the federal permit’s narrative prohibition against water quality violations caused by its phosphorus discharges and, in an amended complaint, violations of the reissued permit’s numeric phosphorus limits. The United States, on behalf of EPA, filed a motion to intervene in the CLF action, filed its own complaint against the State of New Hampshire and the New Hampshire Fish and Game Department and lodged a proposed consent decree signed by all parties. If entered by the court, the consent decree would resolve the claims of both the United States and CLF.

“This settlement demonstrates that the Department of Justice and Environmental Protection Agency are committed to addressing risks to water quality in our nation’s rivers and streams,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This settlement will lead to significant reductions in phosphorus discharges to the Merrymeeting River and downstream ponds and help reduce risks to anyone fishing or coming into contact with these waters.”

“Harmful algal blooms in New England waters have been increasing in recent years and need to be addressed in order to protect human health and the environment,” said Regional Administrator David Cash of EPA’s New England Office. “This settlement not only requires the Powder Mill Hatchery to reduce phosphorus discharges that contribute to such blooms but also requires steps to be taken to address the phosphorus that has accumulated in downstream sediments over the years.”

Under the proposed settlement, the New Hampshire Fish and Game Department must make upgrades to the Hatchery, including constructing new wastewater treatment systems and reconfiguring the facility’s tanks to promote the settling of solids containing phosphorus, in order to increase phosphorus removal and meet permit limits by Dec. 31, 2025. The Fish and Game Department will also implement best management practices to reduce the phosphorus discharged from the Hatchery in the interim, including adding a neutralizing agent, reconfiguring facility tanks to promote the settling of solids containing phosphorus, and increasing the frequency of removal of these solids.

In addition, the consent decree requires the Fish and Game Department to conduct a water quality assessment in downstream waters and study options for remediating the harmful effects of accumulated phosphorus pollution in the river and sediments. EPA, CLF and the Fish and Game Department will then enter into further negotiations on the implementation of any necessary remediation.

For more information:

• The proposed consent decree is subject to a 30-day public comment period and final court approval.  Copies of the complaint and consent decree are available at www.justice.gov/enrd/consent-decrees
• Harmful algal blooms and cyanobacteria:  www.epa.gov/cyanohabs
• Clean Water Act enforcement:  www.epa.gov/enforcement/water-enforcement

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

An Ohio man was sentenced to prison in connection with his execution of a scheme to solicit payments from dozens of individuals in exchange for purported hunting leases he had no rights to sell.

According to court documents, throughout 2019, Nathanal L. Knox, 30, of Ohio, operated a scheme where he placed online advertisements for hunting leases, supposedly available on several parcels of land in Ohio, but the defendant in fact had no rights to sell leases for the properties in question. He placed the advertisements on at least 38 different Facebook pages, including “Hunt Florida,” “Ohio Hunting Lease,” “Bow Hunting PA,” and “Alabama Deer Hunters.”

In these advertisements, the defendant solicited payment in exchange for purported hunting leases. The prices charged ranged from $400 to $5,000. The defendant requested payment from prospective clients be made through PayPal, Walmart 2 Walmart, Money Gram, Western Union and Venmo. When individuals inquired further about the purported leases, the defendant would provide pictures of mature bucks that he falsely claimed had been harvested by former clients on the parcels in question. After receiving initial payments, the defendant would send contracts and instructions via email. In total, the defendant solicited payment from at least 68 different individuals, all of whom resided outside of Ohio. At least 59 of these individuals sent initial payments to the defendant, totaling over $34,000.

Judge Sarah D. Morrison of the U.S. District Court for the Southern District of Ohio sentenced Knox to one year and one day in prison, three years of supervised release and restitution of $18,037.

“The defendant was sentenced to prison for orchestrating a fraud scheme that preyed on unsuspecting individuals from all corners of the country,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The sentence is a reminder that the department is committed to prosecuting such offenses.”

“The defendant’s crimes were deliberate, detailed, and harmed a great many people,” said U.S. Attorney Kenneth L. Parker for the Southern District of Ohio. “His actions not only defrauded the unwitting individuals who fell victim to Knox’s lies, but also created a potentially combustible mixture of hunters who believed they had the right to be on these properties, and the landowners, who had not given permission to these individuals to access their property. Luckily, law enforcement partners halted this scheme before anyone was injured.”

“Protecting sustainable hunting of America's wildlife resources is bedrock to our mission in the U.S. Fish and Wildlife Service,” said Assistant Director Edward Grace of the U.S. Fish and Wildlife Service Office of Law Enforcement. “Investigating those who prey on individuals attempting to hunt lawfully by defrauding them is our trusted responsibility to the American people.”

The Ohio Department of Natural Resources, Division of Wildlife, in cooperation with the U.S. Fish and Wildlife Service, investigated this case.

Trial Attorney Adam Cullman of the Justice Department’s Environment and Natural Resources Division, Environmental Crimes Section; Special Assistant U.S. Attorney, J. Michael Marous, for the Southern District of Ohio; and Assistant Ohio Attorney General Sally Smetzer Montell prosecuted the case.

A former executive of Contech Engineered Solutions LLC (Contech) was sentenced to 18 months of imprisonment yesterday in New Bern, North Carolina, for his participation in bid-rigging and fraud schemes targeting the North Carolina Department of Transportation (NCDOT).

Following a week-long trial in the U.S. District Court for the Eastern District of North Carolina in January, a jury convicted Brent Brewbaker, a former Contech executive, for participating in conspiracies to rig bids and submit false certifications of non-collusion for more than 300 aluminum structure projects funded by the state of North Carolina between 2009 and 2018. Evidence showed that Brewbaker instructed a co-conspirator to submit non-competitive bids to NCDOT and to hide his bid rigging and fraud by varying the amount of inflated bids submitted. He also made clear to a co-conspirator that he would hide illegal conduct by deleting text messages he received about the conspiracy.

“Today’s sentence reflects the seriousness of offenses that subvert the competitive process, target state and local governments, and ultimately cost taxpayers money,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “The division and its Procurement Collusion Strike Force (PCSF) partners remain committed to holding executives accountable when they choose to cheat instead of compete.”

“The Justice Department’s Antitrust Division, along with our other federal law enforcement partners, secured a victory today in our fight against bid-rigging and collusion,” said Executive Special Agent in Charge Kenneth Cleevely of the U.S. Postal Service Office of Inspector General (USPS-OIG). “The USPS-OIG will vigorously investigate those who would engage in harmful anticompetitive practices, and we continue to ask for the public’s assistance in identifying and reporting those engaged in this type of activity.”

“Violations of the nation’s antitrust laws will be taken seriously and those who circumvent federal bidding and contract regulations will be held accountable,” said Special Agent in Charge Craig Miles of the Department of Transportation’s Office of the Inspector General (DOT-OIG) Mid-Atlantic Region. “The message is clear: we will pursue and investigate individuals who compromise the integrity of the procurement process for corporate greed and personal gain.”

Brewbaker was convicted of conspiracy to rig bids, conspiracy to commit mail and wire fraud, three counts of mail fraud, and one count of wire fraud. Brewbaker was also ordered to pay a $111,000 criminal fine and a $600 special assessment. Contech previously pleaded guilty to one count of bid rigging under Section 1 of the Sherman Antitrust Act and one count of conspiracy to commit mail and wire fraud. Contech agreed to pay a criminal fine of $7 million and restitution to NCDOT in the amount of $1,533,988.

The Antitrust Division’s Washington Criminal I Section prosecuted this case, which was investigated with the assistance of the USPS-OIG and the DOT-OIG. The U.S. Attorney’s Office for the Eastern District of North Carolina also provided support throughout the investigation and trial.

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

A Florida businessman was arraigned yesterday in Miami, after a federal grand jury returned an indictment charging him with willful failure to pay over employment taxes to the IRS.

According to the indictment, Ari Weingrad, of Miami, operated two car rental companies, Rent Max Miami, Inc. and Rent Max North, Inc., both of which had locations throughout Florida. In 2016, Weingrad allegedly was responsible for filing quarterly employment tax returns and collecting and paying over to the IRS employment taxes withheld from employees’ wages. Weingrad allegedly withheld these funds from his employees, but he did not fully pay the withholdings over to the IRS. According to the indictment, during the same time period, Weingrad used corporate funds from the businesses to pay for personal items, including payments to his wife and himself and expenses related to a yacht.

If convicted, Weingrad faces a maximum penalty of five years in prison for each of three counts of willful failure to pay over employment taxes. 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 Juan Antonio Gonzalez for the Southern District of Florida made the announcement.

IRS-Criminal Investigation is investigating the case.

Trial Attorney Patrick Elwell of the Tax Division and Assistant U.S. Attorney Ana Maria Martinez of the Southern District of Florida are prosecuting the case.

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

The United States filed a complaint in the U.S. District Court for the Southern District of Texas today to bar a Houston area tax return preparer from preparing federal income tax returns for others.

The suit was brought against Jonathan Perry, individually and doing business as X-Pert Tax Services and as JONATHAN PERRY. The complaint alleges that during 2017-2022, over 4,000 federal income tax returns were filed with the IRS using electronic filing identification numbers that the IRS issued to Perry. According to the complaint, in a substantial number of these tax returns, the defendants significantly overstated the customers’ tax refunds by fabricating employee business expenses, household help income, business losses and/or by falsely claiming education credits and fuel excise tax credits to which the customers were not entitled.

By repeatedly understating his customers’ tax liabilities, the complaint alleges, Perry and his tax preparation businesses cost the United States more than an estimated $4.4 million in tax revenue from 2017 to 2022.

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

Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a checklist of things to remember when filing income tax returns in 2022.

In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $73,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free. The IRS has tips on how seniors and individuals with low to moderate income can get other help or guidance on tax return preparation, too.

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

The Justice Department announced today that it had resolved a claim that American Airlines (American) violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by underfunding the 401(k) retirement account of Thomas P. Harwood III, a veteran of the U.S. Air Force Reserve, after he returned to work from various military obligations. Mr. Harwood is a Major General (O-8) (Ret.) who joined the U.S. Air Force in 1981, served in the U.S. Air Force Reserve from 1991 until his retirement in 2016, and has worked for American Airlines as a commercial pilot since 1992.

“Federal law requires employers to promptly reemploy servicemembers after their military service obligations, and also requires them to promptly restore their retirement benefits as if they had no break in employment,” said Assistant Attorney General Kristen Clarke of the Justice Department's Civil Rights Division. “Employers who violate the civil rights of those who serve in the military will be held accountable. This settlement demonstrates the Justice Department’s ongoing commitment to protecting the rights of servicemembers who sacrifice to serve our country.”

Following the conclusion of Maj. Gen. Harwood’s military service obligations in 2016, including one that had begun in 2013, American both underfunded the make-up contributions it owed to his 401(k) account upon his return and deposited them well after the 90-day limit provided by federal regulations. Under the terms of the settlement, American has agreed to compensate Harwood $15,671 in monetary damages and provide USERRA training to all employees in its 401(k) department.

Congress enacted USERRA to encourage non-career service in the military by reducing employment disadvantages; to minimize the disruption to the lives of persons performing military service, their employers, and others, by providing for the prompt reemployment of such persons upon the completion of their service; and to prohibit discrimination and retaliation against servicemembers if they pursue a claim under USERRA.

The Department of Labor (DOL) referred this matter to the department following an investigation by its Veterans’ Employment and Training Service. The Employment Litigation Section of the Department of Justice’s Civil Rights Division handled the case and continues to work collaboratively with the DOL to protect the jobs and benefits of military members. The Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.justice.gov/crt-military/employment-rights-userra and www.justice.gov/servicemembers, as well as on the Department of Labor’s website at www.dol.gov/vets/programs/userra.

The Department of Justice announced today that Instec Inc. (Instec), located in Boulder, Colorado, and Dr. Zhong Zou, Instec’s owner and president, have agreed to pay $625,000 to resolve allegations that the company and Zou violated the False Claims Act by failing to comply with the requirements of the Buy American Act (BAA) when selling scientific instruments to federal agencies and national laboratories.

The BAA was enacted in 1933 to protect U.S. manufacturing by creating a preference for domestic products when the federal government purchases supplies. The United States alleged that Instec and Zou knowingly violated the BAA by falsely certifying that goods sold to the government pursuant to contracts containing domestic-preference requirements were of domestic origin, when these good were actually manufactured in China.

“Those who contract with the government must comply with all applicable terms,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This settlement demonstrates the department’s commitment to protect American businesses by enforcing domestic preference requirements.”

“When companies commit to manufacture their goods in the United States, then shirk that commitment, they violate the law and undermine American manufacturing jobs, too,” said U.S. Attorney Cole Finegan for the District of Colorado. “The U.S. Attorney’s Office for the District of Colorado is committed to enforcing the Buy American Act and pursuing companies that violate it.”

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of Colorado with assistance from the Department of Energy Office of Inspector General, the Defense Criminal Investigative Service, the National Aeronautics and Space Administration Office of Inspector General and the Army Criminal Investigation Division (CID).

“Federal contractors cannot simply dispense with contractual requirements designed to protect American industry,” said Department of Energy Inspector General Teri L. Donaldson. “I applaud the investigators as well as the Justice Department and U.S. Attorney’s Office for the District of Colorado for their efforts in reaching this settlement.”

“This settlement demonstrates the commitment of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS), along with our law enforcement partners, to aggressively pursue those who defraud the United States government,” said Acting Special Agent in Charge Gregory Shilling of the DCIS Southwest Field Office. “This type of activity undermines the procurement process, and those responsible will be held accountable.”

“The Buy American Act promotes American businesses and protects U.S. economic interests,” said Assistant Inspector General for Investigations Robert Steinau for the NASA Office of Inspector General (OIG). “This agreement reflects NASA OIG’s commitment to work with our law enforcement partners in identifying and holding accountable those who engage in deliberate disregard of contractual requirements.”

“This settlement highlights the resolve of Army CID and our law enforcement partners to hold government contractors accountable for their actions,” said Special Agent in Charge L. Scott Moreland of the U.S. Army CID’s Major Procurement Fraud Field Office. “The ability to protect and defend the assets of the U.S. Army is always our top priority

The matter was handled by Trial Attorney Jason M. Crawford of the Justice Department’s Civil Division and Assistant U.S. Attorney Jacob Licht for the District of Colorado.

The civil settlement includes the resolution of claims brought by a former Instec employee under the qui tam provisions of the False Claims Act. These provisions allow a private party, known as a relator, to file an action on behalf of the United States and receive a portion of any recovery. In this case, the relator will receive $124,500 as part of the settlement. The case is captioned United States ex rel Swanton v. Zou, et al, No. 20-cv-01742 (D. Colo.).

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

Melvin Hilson, 50, a former deputy warden at the Mississippi State Penitentiary at Parchman, was sentenced to 24 months in prison and three years of supervised release for violating an inmate’s civil rights in 2016. On May 26, Hilson pleaded guilty in federal court to willfully depriving an inmate of his constitutional right to be free from cruel and unusual punishment by repeatedly striking the inmate and knocking him to the ground, which resulted in the inmate suffering a ruptured eardrum, abrasions to his ear and neck and prolonged headaches.

“This defendant abused his position as a corrections officer by unlawfully assaulting an inmate in his custody,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “This defendant violently assaulted the victim and violated the trust that we place in corrections officials to lawfully carry out their duties. The Civil Rights Division will continue to vigorously enforce our civil rights laws and hold jail and prison officials who break the law accountable.” 

“This prosecution and sentence demonstrate our commitment to ensuring that every person’s civil rights are protected under the Constitution, and corrections officials who abuse their position are not above the law that they have sworn to uphold,” said U.S. Attorney Clay Joyner for the Northern District of Mississippi.

According to court documents and statements made in court, Hilson was working as a member of Parchman’s K-9 Unit at the time of the assault. On or around Aug. 3, 2016, J.T., an inmate at Parchman, was in a caged area inside of the medical unit, where he waited to be seen by a medical provider. Hilson approached J.T. and struck him several times, knowing that there was no reason to use force and that J.T. did not pose any threat to himself or others. During the assault, Hilson knocked J.T. to the ground, picked him up, and then struck him and knocked him to the ground again. According to prosecutors, J.T. did not attempt to fight back or defend himself from Hilson’s assault. Following the assault, Hilson falsified a report to conceal his unlawful actions and lied to Mississippi Department of Corrections investigators about his conduct.

The FBI Jackson Field Division investigated this case. Special Litigation Counsel Samantha Trepel and Trial Attorney Cameron A. Bell of the Civil Rights Division and Assistant U.S. Attorneys Kimberly Hampton and Robert Mims for the Northern District of Mississippi prosecuted the case. 

Bayer Corporation, an Indiana corporation and manufacturer of pharmaceutical products, and its related entities, Bayer HealthCare Pharmaceuticals Inc., Bayer HealthCare LLC and Bayer AG (collectively “Bayer”), have agreed to pay $40 million to resolve alleged violations of the False Claims Act in connection with the drugs Trasylol, Avelox and Baycol. 

The settlement announced today arose from two “whistleblower” lawsuits filed and pursued by Laurie Simpson, a former employee of Bayer who worked in its marketing department.  

In a lawsuit filed in the District of New Jersey, Simpson alleged that Bayer paid kickbacks to hospitals and physicians to induce them to utilize the drugs Trasylol and Avelox, and also marketed these drugs for off-label uses that were not reasonable and necessary. Simpson further alleged that Bayer downplayed the safety risks of Trasylol. The lawsuit alleged that as a result of this conduct, Bayer caused the submission of false claims to the Medicare and Medicaid Programs and violated the laws of 20 states and the District of Columbia. Trasylol is a drug used to control bleeding in certain heart surgeries. Avelox is an antibiotic approved to treat certain strains of bacteria.

Simpson filed a second lawsuit relating to Bayer’s statin drug, Baycol, which was later transferred to the District of Minnesota. That lawsuit alleged that Bayer knew about, but downplayed, Baycol’s risks of causing rhabdomyolysis. The lawsuit further alleged that Bayer misrepresented the efficacy of Baycol when compared to other statins and fraudulently induced the Defense Logistics Agency to renew certain contracts relating to Baycol. Subsequently, Trasylol and Baycol were withdrawn from the market for safety reasons. 

“Simpson diligently pursued this matter for almost two decades,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division.  “Today’s recovery highlights the critical role that whistleblowers play in the effective use of the False Claims Act to combat fraud in federal healthcare programs.”

“We recognize Simpson for her perseverance with this matter,” said U.S. Attorney Andrew M. Luger for the District of Minnesota. “We are pleased we were able to work with the parties to facilitate this resolution and help bring this longstanding matter to a close.”

“As alleged in the complaints, Bayer – one of the largest pharmaceutical companies in the world – engaged in a series of unlawful acts, including paying kickbacks to doctors and hospitals, marketing them off-label, and downplaying their safety risks,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “This resolution should send a message to the pharmaceutical industry that such conduct undermines the integrity of federal health care programs and jeopardizes patient safety. This settlement reflects the importance of the whistleblower’s role in litigating False Claims Act actions on behalf of the United States, and we thank Ms. Simpson and her counsel for stepping forward and pursuing this case to conclusion.”

Under the terms of the settlement, Bayer will pay $38,860,555 to the United States and $1,139,445 to the 20 states and the District of Columbia. 

The two actions resolved by the settlement were brought under the qui tam or whistleblower provisions of the False Claims Act, which permit private citizens to bring suit on behalf of the government for false claims and share in any recovery. The United States may intervene in the action or, as in this case, the whistleblower may proceed with the matter. Simpson will receive approximately $11 million from the proceeds of the settlement. 

The cases are captioned United States ex rel. Simpson v. Bayer Corp. Civ. No. 05-cv-3895 (D.N.J.), and United States ex rel. Simpson v. Bayer Corp., Civ. No. 08-5758 (D.Minn), and were monitored by the Civil Division’s Commercial Litigation Branch and the U.S. Attorneys’ Offices for the District of New Jersey and the District of Minnesota. 

The claims settled by this agreement are allegations only, and there has been no admission of liability.

On Aug. 29, the U.S. District Court in the Eastern District of Michigan awarded a default judgment, granting the proposed $10 million civil penalty against Diesel Ops LLC and Orion Diesel LLC of Waterford, Michigan. The violations the United States identified in its December 2021 complaint included the manufacture, sale and installation of aftermarket parts known as “defeat devices” designed to disable or bypass required vehicle emissions controls.

The court also granted the proposed $455,925 civil penalty against the owner of the two companies, Nicholas Piccolo, for failing to respond to an information request issued pursuant to Section 208 of the Clean Air Act and entered a judgment against Piccolo of slightly less than $1 million for alleged fraudulent transfers in violation of the Federal Debt Collection Procedures Act. The court entered a permanent injunction against future sales of defeat devices against all of the defendants.

“Defeat devices violate Clean Air Act emissions requirements that protect public health and the environment, including by protecting vulnerable communities that are disproportionately impacted by air pollution,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD). “The United States will vigorously enforce the Clean Air Act, including its prohibition of illegal devices that bypass emission controls and harm the environment and public health.”

“The Environmental Protection Agency (EPA) has made it a priority to stop the manufacture, sale and installation of defeat devices, because they result in illegal and harmful emissions that continue over the life of the vehicle,” said Acting Assistant Administrator Larry Starfield for EPA’s Office of Enforcement and Compliance Assurance. “This case shows that EPA and our law enforcement partners will hold responsible those who illegally profit from defeat devices.”

“This action sends a strong message that selling and installing defeat devices on vehicles and engines will not be tolerated,” said EPA Region 5 Administrator Debra Shore. “Emission control systems on vehicles are designed to protect public health by reducing pollution, which is why EPA is committed to ensuring that companies comply with the Clean Air Act.”

As a result of EPA’s efforts to improve air quality and fuel efficiency, cars and trucks manufactured today emit far less pollution than older vehicles. To meet EPA's emission standards, engine manufacturers have carefully calibrated their engines and installed sophisticated emissions control systems. EPA testing has shown that aftermarket defeat devices can increase vehicle emissions substantially, which can contribute to a variety of public health problems typically associated with exposure to air pollution. These health effects can include premature death in people with heart or lung disease, heart attacks, irregular heartbeat, aggravated asthma, decreased lung function and respiratory symptoms such as irritation of the airways, coughing or difficulty breathing. This enforcement action is one of more than 40 civil enforcement cases initiated by EPA and the Justice Department as part of the National Compliance Initiative for Stopping Aftermarket Defeat Devices for Vehicles and Engines: https://www.epa.gov/enforcement/national-compliance-initiative-stopping-aftermarket-defeat-devices-vehicles-and-engines.

Because defeat devices contribute excess dirty emissions to communities located adjacent to highways and freight facilities, EPA regards halting the manufacture, sale, offering for sale and installation of defeat devices as key issues in working toward environmental justice.

Philips RS North America LLC, formerly known as Respironics Inc., a manufacturer of durable medical equipment (DME) based in Pittsburgh, Pennsylvania, has agreed to pay over $24 million to resolve False Claims Act allegations that it misled federal health care programs by paying kickbacks to DME suppliers. The affected programs were Medicare, Medicaid and TRICARE, which is the health care program for active military and their families.

The settlement resolves allegations that Respironics caused DME suppliers to submit claims for ventilators, oxygen concentrators, CPAP and BiPAP machines, and other respiratory-related medical equipment that were false because Respironics provided illegal inducements to the DME suppliers. Respironics allegedly gave the DME suppliers physician prescribing data free of charge that could assist their marketing efforts to physicians.    

“Paying illegal remuneration to induce patient referrals undermines the integrity of our nation’s health care system,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “To ensure that the goods and services received by federal health care program patients are determined by their health care needs, rather than the financial interests of third parties, we will pursue any individual or entity that violates the prohibition on paying kickbacks, including DME manufacturers.”

“The people of South Carolina need to know that medical facts — not finances — drive their health care decisions,” said U.S. Attorney Adair F. Boroughs for the District of South Carolina. “Those who improperly use money and other things of value to induce business in violation of the Anti-Kickback Statute will be held accountable.”

“Paying kickbacks to medical equipment providers is misaligned with patient care and corrupts our nation’s health care programs including TRICARE,” said Special Agent in Charge Christopher Dillard for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office. “Working closely with our law enforcement partners, DCIS will continue to investigate those who risk harming the welfare of our active-duty service members and seek to profit at the expense of the American taxpayer.”

“By paying kickbacks to obtain patient referrals, DME manufacturers are prioritizing financial incentives over patient needs, which undermines the integrity of federal health care programs," said Special Agent in Charge Tamala E. Miles for the Department of Health and Human Services, Office of the Inspector General (HHS-OIG). "HHS-OIG will continue to work tirelessly with our law enforcement partners to prevent such waste of valuable taxpayer dollars."

The Anti-Kickback Statute prohibits the knowing and willful payment of any remuneration to induce the referral of services or items that are paid for by a federal health care program, such as Medicare, Medicaid or TRICARE. Claims submitted to these programs in violation of the Anti-Kickback Statute give rise to liability under the False Claims Act.

The settlement provides that Respironics will pay $22.62 million to the United States, and in addition, will pay $2.13 million to the various states as a result of the impact of Respironics’ conduct on their Medicaid programs, pursuant to the terms of separate settlement agreements that Respironics has, or will enter into, with those states.

In addition to the civil settlement, Respironics entered into a five-year Corporate Integrity Agreement (CIA) with HHS-OIG. The CIA requires Respironics to implement and maintain a robust compliance program that includes, among other things, review of arrangements with referral sources and monitoring of Respironics’ sales force. The CIA also requires Respironics to retain an independent monitor, selected by the OIG, to assess the effectiveness of Respironics’ compliance systems.

The settlement resolves a lawsuit originally brought by Jeremy Orling, a Respironics’ employee, under the qui tam or whistleblower provisions of the False Claims Act. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. As part of this resolution, Orling will receive approximately $4.3 million of the federal settlement amount.

This settlement was the result of a coordinated effort by the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of South Carolina with assistance from the HHS-OIG and HHS Office of Investigations; DCIS; the Defense Health Agency Office of General Counsel; and the National Association of Medicaid Fraud Control Units.  

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).

The matter was handled by Senior Trial Counsel Daniel A. Spiro of the Fraud Section of the Civil Division and Assistant U.S. Attorneys Beth Warren and Johanna Valenzuela District of South Carolina.

The lawsuit resolved by this settlement is captioned United States, et al., ex rel. Respiratory Care., LLC v. Respironics, Inc., et al., Case No. 2:19-cv-02913-BHH (D.S.C).  The claims resolved by the settlement are allegations only, and there has been no determination of liability. 

The Justice Department announced today that it has entered into a settlement agreement with the Indiana State Board of Nursing (Nursing Board) to resolve claims it violated Title II of the Americans with Disabilities Act (ADA). The settlement agreement ensures that nurses who take medication to treat opioid use disorder (OUD) can remain on their medication when participating in the Indiana State Nursing Assistance Program. The program assists in rehabilitating and monitoring nurses with substance use disorders, and is often required for these nurses to maintain an active license or have one reinstated. The department previously notified the Nursing Board of its findings, and described the remedial measures necessary for the Nursing Board to address the ADA violation identified. This case was handled jointly by the Disability Rights Section of the Civil Rights Division and the U.S. Attorney’s Office for the Southern District of Indiana.

“Indiana may not deny individuals life-saving medications, including medications that treat opioid use disorder, based on stereotypes and misinformation,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Requiring nurses to stop taking prescribed medication as a condition of maintaining a nursing license violates the ADA, and not only creates barriers to recovery, but inappropriately limits employment opportunities based on disability.”

“The opioid epidemic has greatly impacted professionals and families of all walks of life, and Indiana nurses have the right to seek medically approved treatment for opioid use disorder under federal law,” said U.S. Attorney Zachary A. Myers for the Southern District of Indiana. “Following the Justice Department’s findings and the parties’ settlement agreement, Indiana must now enact policies to ensure that Hoosier nurses will not be forced to choose between their recovery and their livelihoods.”

Under the terms of the agreement, the Nursing Board will allow nurses to participate in the states’ rehabilitation program while taking medication, including medication to treat OUD, when the medication is prescribed by a licensed practitioner as part of a medically necessary treatment plan and incorporated into a recovery monitoring agreement. In addition, the Nursing Board has agreed to revise its written polices to ensure that nurses taking prescribed medications for OUD are not subjected to discriminatory conditions or terms. The Nursing Board has also agreed to pay a total of $70,000 in damages to the complainant, and to report periodically on its compliance to the United States.

Methadone and buprenorphine (including brand names Subutex and Suboxone) are approved by the Food and Drug Administration to treat OUD. According to the U.S. National Institute on Drug Abuse (NIDA), methadone and buprenorphine help diminish the effects of physical dependency on opioids. When taken as prescribed, these medications are safe and effective.

The Civil Rights Division, together with U.S. Attorneys’ offices, has been working to remove discriminatory barriers to recovery for individuals who have completed, or are participating in, treatment for OUD. Through outreach, technical assistance and enforcement under the ADA, the Civil Rights Division seeks to ensure that those in treatment or recovery can successfully participate in their communities and the workforce. For example:

• On April 5, 2022, the department issued guidance on protections for people with OUD under the ADA.
• On March 24, 2022, the department entered into a settlement agreement with the Massachusetts Trial Court to resolve allegations that its drug court violated the ADA by discriminating against individuals with OUD.
• On March 17, 2022, the department entered into a settlement agreement with Ready to Work, a Colorado-based employment, residential and social services program for individuals experiencing homelessness, resolving allegations that the program denied admission to an individual because she takes medication for OUD.
• On Feb. 24, 2022, the department filed a lawsuit against the Unified Judicial System of Pennsylvania, alleging that it prohibits or otherwise limits participants in its court supervision programs from using medication to treat OUD.

For more information on the ADA, please call the department’s toll-free ADA information line at 1-800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. For more information on the Civil Rights Division, please visit www.justice.gov/crt. Complaints about disability-based discrimination may be reported to the Civil Rights Division through the internet reporting portal at https://civilrights.justice.gov/.

Two defendants were sentenced today to substantial prison time for their participation in a large-scale “grandparent scam.”

According to court documents, Timothy Ingram aka “Bleezy,” 30, of North Hollywood, California; and Joaquin Lopez, 46, of Hollywood, Florida, were part of a network of individuals who, through extortion and fraud, induced elderly Americans across the United States to pay up to tens of thousands of dollars each to purportedly help their grandchild or other loved one. In spring 2022, Ingram and Lopez each pleaded guilty to one count of conspiracy under the Racketeer Influenced and Corrupt Organizations (RICO) Act. Today, the court sentenced Ingram to 108 months in prison and Lopez to 24 months in prison.  

Members of the network contacted elderly Americans by telephone and impersonated a grandchild, other close relative or friend of the victim. They falsely convinced the victims that their relatives or friends were in legal trouble and needed money to pay for bail, for medical expenses for car accident victims, or to prevent additional charges from being filed. The defendants and their co-conspirators then received money from victims via various means, including in-person pickup, the mail, and wire transfer, and then laundered the proceeds, including through the use of cryptocurrency. Ingram, personally and through others, directed a network of money mules in California. Ingram personally picked up cash from victims and recruited others to participate in the scheme. Lopez also received wire transfers from numerous victims and funneled victim proceeds for co-defendant Tracy Knowles, who remains at large.

“The Department of Justice’s Consumer Protection Branch will continue to investigate and prosecute criminals who target elderly Americans and take advantage of their concern for loved ones,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We are grateful to our partners at the U.S. Attorney’s Office for the Southern District of California and the FBI for their work to advance the department’s efforts against organized elder fraud, and to the San Diego County District Attorney’s Office.”

“These defendants were crucial members of a sophisticated criminal organization that shamelessly exploited the grandparents’ love for their grandchildren,” said U.S. Attorney Randy Grossman for the Southern District of California. “The long-lasting effects of this crime on our seniors and the community cannot be overstated.  The victims were financially and emotionally devastated by callous people who thought only of enriching themselves. With the convictions and sentences imposed today, the government is securing justice for the victims who fell prey to this heartless crime.”

“Today's sentencing of two key members of the criminal enterprise targeting our elderly population is a testament to the San Diego Elder Justice Task Force's continued commitment to bringing fraudsters to justice,” said Special Agent in Charge Stacey Moy of the FBI San Diego Field Office. “It is the FBI's mission to protect the American people and protecting our seniors from financial crimes is imperative to the well-being and safeguarding of our communities. The FBI, along with our law enforcement partners, will not stop until all the defendants are held accountable for their involvement in this complex organized crime.”

The FBI San Diego Field Office and the North County Resident Agency investigated the case with critical assistance from investigators of the San Diego County District Attorney’s Office.

Trial Attorneys Lauren M. Elfner and Wei Xiang of the Justice Department’s Consumer Protection Branch and Assistant U.S. Attorney Oleksandra Johnson for the Southern District of California prosecuted the case.

The department’s extensive and broad-based efforts to combat elder fraud seeks 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.

Kirill Kompaniets, the Chief Engineer of a foreign flagged vessel, was sentenced to prison for deliberately discharging approximately 10,000 gallons of oil-contaminated bilge water overboard in U.S. waters off the coast of New Orleans last year, and for obstructing justice. The illegal conduct was first reported to the Coast Guard by a crew member via social media. The Honorable Nannette Jolivette Brown sentenced Kompaniets to serve a year and a day in prison, pay a $5,000 fine and $200 special assessment and serve six months of supervised release.

Repair operations to correct a problem with the discharge of clean ballast water resulted in engine room flooding. After the leak was controlled, Chief Engineer Kompanietes and a subordinate engineer dumped the oily bilge water overboard while the ship was at an anchorage near the Southwest Passage off the Louisiana coast. The ship’s required pollution prevention devices – an oily-water separator and oil content monitor – were not used, and the discharge was not recorded in the Oil Record Book, a required ship log.

Kompaniets was also charged with obstruction of justice based on various efforts to conceal the illegal discharge. In a joint factual statement filed in Court with his guilty plea, Kompaniets admitted to the following acts of obstruction of justice: (1) making false statements to the Coast Guard that concealed the cause and nature of a hazardous condition, and concealing that the engine room of the vessel had flooded and that oil-contaminated bilge water had been discharged overboard; (2) destroying the computer alarm printouts for the period of the illegal discharge that were sought by the Coast Guard; (3) holding meetings with subordinate crew members and directing them to make false statements to the Coast Guard; (4) making a false Oil Record Book that failed to disclose the illegal discharge; (5) directing subordinate engine room employees to delete all evidence from their cell phones in anticipation of the Coast Guard inspection; and (6) preparing a retaliatory document accusing the whistleblower of poor performance as part of an effort to discredit him.

“The intentional pollution of U.S. waters and the deliberate cover-up are serious criminal offenses that will not be tolerated,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Prosecutions such as this one should send a clear message to those that would violate the law and endanger our precious natural resources.”

“The defendant in this case deliberately disregarded procedures designed to protect the environment from contaminants and then attempted to hide his actions,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Today’s announcement emphasizes that both our office and our federal partners are committed to holding accountable all parties whose criminality jeopardizes our environment and places the public and the ecosystem at risk.”

The criminal prosecution is being handled by Assistant U.S. Attorney G. Dall Kammer for the Eastern District of Louisiana and Senior Litigation Counsel Richard A. Udell of the Environment and Natural Resources Division’s Environmental Crimes Section, with assistance provided by District 8 of the U.S. Coast Guard and the Coast Guard Criminal Investigative Service. The investigation is continuing.

Christopher Osborne, 26, a former firefighter and police officer, was sentenced today in federal court in Charleston, West Virginia, to 14 years in prison, five years of supervised release, and registration as a sex offender under the federal Sex Offender Registration and Notification Act. Osborne previously pleaded guilty to violating the civil rights of a minor victim by forcibly raping her in a bunk room at the Danville Fire Department in Danville, West Virginia. 

According to court documents, Osborne previously admitted that on or about Jan. 19, 2021, while he was an officer with the Marmet Police Department in Marmet, West Virginia, and a firefighter with both the Charleston Fire Department in Charleston, West Virginia, and the Danville Volunteer Fire Department, he used his position, authority, and status as a firefighter to forcibly sexually assault the victim. Specifically, Osborne admitted that the victim told him that she did not want to have sex, but he held her down and sexually assaulted her anyway, causing her pain and injury.

“This result is a testament to the courage of the victim who came forward to tell her story,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Department of Justice will continue to seek justice for such victims, and to hold accountable perpetrators who abuse their authority to target the vulnerable.”

“The significant sentence imposed illustrates our strong commitment to prosecuting individuals who use their official authority to commit violent sexual assaults against minors,” said First Assistant U.S. Attorney Lisa G. Johnston for the Southern District of West Virginia. “Osborne’s unlawful conduct constitutes a clear deprivation of the minor’s civil rights. I commend the minor victim for the courage and strength she has demonstrated throughout this case. I thank the FBI, the West Virginia State Police and the West Virginia State Fire Marshal’s Office for their outstanding efforts.”

“Mr. Osborne’s actions were inexcusable and appalling,” said Special Agent in Charge Mike Nordwall of the FBI Pittsburgh Field Division. “The FBI will not stand by when people in positions of trust violate their oath and victimize innocent young children. Mr. Osborne abused his power and today’s sentence sends the message that we will continue to work to hold accountable public servants who fail the citizens of their community.”

The FBI Pittsburgh Field Division and its Charleston resident agency investigated this case with the support of the West Virginia State Police and the West Virginia Office of the State Fire Marshal. Trial Attorney Kathryn E. Gilbert of the Justice Department’s Civil Rights Division and Assistant U.S Attorneys Jennifer Herrald and Julie White for the Southern District of West Virginia prosecuted the case.

James Theodore Highhouse, 50, a former chaplain with the Federal Bureau of Prisons (BOP) was sentenced today in federal court in the Northern District of California to 84 months in prison followed by five years of supervised released for repeatedly sexually abusing an incarcerated female and then lying to federal agents about his misconduct. Deputy Attorney General Lisa O. Monaco, Department of Justice Inspector General Michael E. Horowitz, Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, FBI Deputy Director Paul Abbate and Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office made the announcement.

Highhouse previously entered a guilty plea to five felonies on Feb. 23, 2022. According to court documents, Highhouse was employed by the BOP as a corrections worker and chaplain starting in 2016, and was assigned to work at Federal Correctional Institution (FCI) Dublin, a federal prison that houses female inmates in Northern California. In his role as a prison chaplain, he led religious services and offered spiritual guidance to incarcerated women. He also taught religious-based classes about boundaries and self-worth, with the understanding that many of the women with whom he interacted came from a background of trauma, abuse and substance addiction. At times, Highhouse also performed a custodial role, that is, he could handcuff inmates, write up incident reports and refer inmates for disciplinary action. 

In imposing sentence, the judge considered the defendant’s systemic abuse of the victim as well as the accounts of other women whom the defendant subjected to sexual misconduct. The judge specifically noted the defendant’s “sustained predatory behavior against traumatized and defenseless women in prison.”

“Within our corrections system, chaplains are supposed to provide hope and spiritual guidance,” said Deputy Attorney General Monaco. “Instead, this chaplain abused his authority and betrayed the public trust. The Department of Justice will continue to prosecute cases of criminal misconduct by Bureau of Prison employees and hold accountable those who fail to protect those in their custody.”

“Today’s sentencing sends a clear message to BOP employees that abusing their position of trust will result in serious consequences,” said Department of Justice Inspector General Horowitz. “The Department of Justice Office of the Inspector General is committed to rooting out wrongdoing and abuse by BOP employees and bringing perpetrators to justice.”

“The Civil Rights Division is thankful that each of these women were willing to come forward and tell federal authorities what happened to them, even after being treated so egregiously by someone who swore a constitutional oath to ensure they were free from sexual assault in custody,” said Assistant Attorney General Clarke. “As a chaplain, this defendant exploited an additional abuse of trust to facilitate his crimes. This case demonstrates that the Civil Rights Division will not allow such conduct to occur with impunity.”

According to court documents, starting in November 2017, the victim listed in the charging document sought out Highhouse for spiritual guidance and emotional comfort. Highhouse regularly met with her alone in his office. Then from May 2018, until the victim reported him to federal authorities in February 2019, Highhouse sexually abused her, and his conduct escalated in frequency and severity over time. In so doing, as court documents set out, Highhouse used Biblical parables and the victim’s religious beliefs to manipulate her and coerce her into submitting to him. Highhouse did so despite receiving training on maintaining boundaries with inmates and attending yearly BOP refreshers about sexual abuse and prevention.

Highhouse committed sexual abuse in the chapel office, and according to evidence presented at the hearing, to keep the victim from reporting him and avoid detection, he would tell her that no one would believe her because she was an inmate and he was a chaplain.

Once the FBI and the Department of Justice Office of the Inspector General (DOJ-OIG) opened a federal investigation into his allegations of his sexual abuse, Highhouse lied to federal agents about his misconduct. Specifically, on Feb 21. 2019, during a voluntary interview with federal agents, he knowingly made false statements when he denied engaging in sexual acts and sexual contact with the victim. Then, during a follow up interview on Feb. 3, 2020, he again misled federal agents when he continued to deny engaging in such conduct.

“Today’s sentencing is possible thanks to the brave women who came forward against their abuser,” said FBI Deputy Director Abbate. “The defendant not only abused his position to commit monstrous crimes against his victims, but also tried to coerce them into silence and lied to federal agents. The FBI will continue to fight for everyone to be free from sexual violence.” 

“The FBI is grateful for the courage of all the victims who came forward to report their victimization and help bring James Highhouse to justice," said Special Agent in Charge Ragan. “The FBI worked tirelessly with DOJ-OIG to investigate this deplorable abuse of power. Civil rights is a top priority for the FBI and allegations of color of law violations will be investigated to the full extent of the law.”

The FBI San Francisco Field Office and the DOJ-OIG Los Angeles Field Office investigated this case. Special Litigation Counsel and Senior Sex Crimes Counsel Fara Gold of the Civil Rights Division’s Criminal Section prosecuted the case.

Ayer, Kristen Clarke, la Fiscal Genera Auxiliar de la División de Derechos Civiles del Departamento de Justicia, y Todd Kim, el Fiscal General Auxiliar de la División del Ambiente y Recursos Naturales (“ENRD,” por sus siglas en inglés) viajaron a Houston, Texas, para escuchar las inquietudes sobre justicia ambiental de organizaciones que representan a comunidades históricamente carenciadas, sobrecargadas y marginadas en cuanto a asuntos ambientales. Se unieron a ellos Jennifer B. Lowery, la Fiscal Federal para el Distrito Sur de Texas; Cynthia Ferguson, Directora Interina de la Oficina de Justicia Ambiental del Departamento de Justicia; y James McGuire y Patricia Welton, representantes de la Región 6 de la Agencia de Protección Ambiental (“EPA,” por sus siglas en inglés).

La Fiscal General Auxiliar Clarke inició la sesión de audiencia anunciando que es parte de la estrategia integral de aplicación de la justicia ambiental del Departamento y reafirmando el profundo compromiso del Departamento a interactuar con comunidades afectadas. Hizo hincapié en la necesidad de realizar este alcance comunitario para identificar áreas de inquietud sobre justicia ambiental a las que se están enfrentando comunidades en Houston, el Estado de Texas y en otros lugares de Estados Unidos. Asimismo, resaltó los esfuerzos recientes del Departamento por promover la justicia ambiental mediante la ejecución de las leyes federales de derechos civiles de nuestra nación.

El Fiscal General Auxiliar Kim habló de los esfuerzos de ENRD por entablar pleitos contra aquellos que vulneran las leyes nacionales ambientales, de recursos naturales y de seguridad en el lugar de trabajo. Recalcó la importancia del papel de ENRD para garantizar que comunidades de color, comunidades de bajos ingresos y comunidades tribales reciban los servicios y el apoyo que necesiten para poder hacer frente a las injusticias ambientales. Destacó la nueva Oficina de Justicia Ambiental del Departamento, que ayudará a coordinar actividades de justicia ambiental a través de todo el Departamento mediante su participación en esfuerzos interinstitucionales de justicia ambiental con socios federales, estatales, locales y tribales, y fomentando y apoyando el alcance comunitario a las comunidades sobrecargadas y marginadas. Por último, realzó algunos ejemplos del trabajo reciente de ENRD, incluyendo acuerdos judiciales sobre la quema de gas que suele suceder cerca de comunidades de justicia ambiental, así reduciendo las emisiones de gases de efecto invernadero y mejorando la calidad del aire.

La Fiscal Federal Lowery habló del compromiso de su oficina a apoyar el trabajo de la División de Derechos Civiles y ENRD para abordar problemas de justicia ambiental por la zona de Houston, incluyendo la investigación de derechos civiles al amparo del Título VI de vertidos ilegales por la zona de Houston. Ella destacó el papel primordial que la Fiscalía Federal desempeña en la implementación exitosa de la estrategia del Departamento, dada la naturaleza local de la mayoría de los asuntos de justicia ambiental.  Recalcó su esperanza de que la sesión de audiencia solo fuera un paso inicial pero importante en asegurar el compromiso significativo con las comunidades afectadas, sobre todo las que se encuentran dentro de Houston y el Distrito Sur de Texas.

La sesión de audiencia incluyó comentarios de varios líderes de justicia ambiental locales de Houston sobre una variedad de temas. Los temas que salieron a relucir a lo largo de la conversación de 90 minutos incluyeron cómo el Departamento de Justicia puede ayudar a sus socios estatales y locales de la mejor manera posible para abordar el vertido ilegal, la calidad del aire y la contaminación, el desarrollo de la infraestructura y el transporte, y el acceso lingüístico, así como cómo puede comprometerse todavía más con la comunidad local para abordar problemas y buscar soluciones. Los líderes hicieron hincapié en las desigualdades estructurales que impulsan estas inquietudes de justicia ambiental, los riesgos sanitarios de las cargas ambientales y el deseo de mejorar los barrios en los que viven.

Todos los funcionarios del Departamento dieron sus gracias a los asistentes por su participación, incluyendo al Profesor Robert Bullard de la Texas Southern University y los profesores Victor Flatt y Tracy Hester de la University of Houston Law Center, anfitriones de la sesión de audiencia. 

Yesterday, Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and Assistant Attorney General Todd Kim of the Environment and Natural Resources Division (ENRD) traveled to Houston, Texas, to hear environmental justice concerns from organizations representing communities that have been historically underserved, overburdened and marginalized regarding environmental issues. They were joined by U.S. Attorney Jennifer B. Lowery for the Southern District of Texas; Acting Director Cynthia Ferguson of the Justice Department’s Office of Environmental Justice; and EPA Region 6 representatives James McGuire and Patricia Welton.

Assistant Attorney General Clarke opened the event by announcing that the listening session is a part of the department’s Comprehensive Environmental Justice Enforcement Strategy, and reaffirming the department’s deep commitment to meaningful engagement with impacted communities. She emphasized the need to conduct this outreach to identify areas of environmental justice concern that communities are facing in Houston, in other areas of the state of Texas and elsewhere in the United States. She also highlighted the department’s recent efforts to advance environmental justice through the enforcement of our nation’s federal civil rights laws.

Assistant Attorney General Kim spoke about ENRD’s efforts to bring enforcement cases against those who violate the country’s environmental, natural resources and workplace safety laws. He stressed the importance of ENRD’s role to ensure that communities of color, low-income communities and Tribal communities receive the services and support needed to address environmental injustices. He highlighted the department’s new Office of Environmental Justice, which will help coordinate environmental justice activities across the department by participating in inter-agency environmental justice efforts with federal, state, local and Tribal partners, and by encouraging and supporting outreach to overburdened and underserved communities. Finally, he highlighted examples of ENRD’s recent work, including judicial settlements addressing improper flaring events that often occur near environmental justice communities and reducing greenhouse gas pollution while improving air quality.

U.S. Attorney Lowery spoke about her office’s commitment to support the work of the Civil Rights Division and ENRD to address environmental justice issues in the Houston area, including the Title VI civil rights investigation into illegal dumping in the Houston area. She noted the critical role the U.S. Attorney’s Office has in the successful implementation of the department’s strategy given the local nature of most environmental justice issues. She echoed the hope that the session was an initial but important step in ensuring meaningful engagement with impacted communities, especially within Houston and the Southern District of Texas.

The listening session featured remarks from a number of local Houston environmental justice leaders on a variety of topics. Themes throughout the 90-minute discussion included how the Justice Department can best help its state and local partners address illegal dumping, air quality and pollution, transportation and infrastructure development, and language access, as well as further engage with the local community to address problems and seek solutions. The leaders emphasized the structural inequities driving these environmental justice concerns, the health risks from environmental burdens and the desire to improve the neighborhoods in which they live.

All of the department officials thanked those in attendance for their participation, including Texas Southern University Professor Robert Bullard and the University of Houston Law Center Professors Victor Flatt and Tracy Hester for hosting the listening session. 

A federal jury convicted a Texas physician of engaging in a scheme that fraudulently billed TRICARE, the health care program for uniformed service members, retirees, and their families, for toxicology and genetic tests that were not provided as represented and/or were medically unnecessary.

According to court documents and evidence presented at trial, Dr. Sekhar Rao, 51, of Austin, was the medical director of the ADAR Group LLC. Rao authorized toxicology and genetic testing, including cancer genetic testing, for TRICARE beneficiaries without seeing, speaking to, or otherwise treating patients, and without incorporating the test results into ongoing treatment. In some cases, the patients did not know what they were being tested for. TRICARE beneficiaries were enticed to provide urine or saliva specimens in exchange for $50 gift cards. Evidence at trial demonstrated that Rao was paid in exchange for signing off on medically unnecessary and repetitive toxicology and genetic tests.   

Rao was convicted of two counts of health care fraud. He is scheduled to be sentenced on March 27, 2023 and faces a maximum penalty of 10 years in prison for each health care fraud count. 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; U.S. Attorney Chad E. Meacham for the Northern District of Texas; Special Agent in Charge Michael Mentavlos of the Defense Criminal Investigative Service (DCIS); Acting Special Agent in Charge Kelly Blackmon of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Dallas Regional Office; Special Agent in Charge Matthew J. DeSarno of the FBI Dallas Field Office; Special Agent in Charge Steven Grell of the Department of Labor Office of Inspector General (DOL-OIG) Dallas Regional Office; and Special Agent in Charge Jeffrey Breen of the Veterans Affairs Office of Inspector General (VA-OIG) South Central Field Office made the announcement.

DCIS, HHS-OIG, FBI, DOL-OIG, and VA-OIG investigated the case.

Trial Attorneys Shy Jackson and Lee Michael Hirsch 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 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.

The owner of a South Carolina supplement company was sentenced to one day and one year of imprisonment for manufacturing and shipping unapproved drugs and anabolic steroids, the Department of Justice announced.

John F. Cochcroft, 37, of Lexington, South Carolina, pleaded guilty on May 25, to one count of introduction of a new drug into interstate commerce with the intent to defraud and mislead and one count of manufacturing and possessing with the intent to distribute and distributing anabolic steroids. As part of the plea agreement, Cochcroft agreed to pay a forfeiture money judgment of $200,000 related to proceeds from his sales of illicit products. U.S. District Judge James P. Jones of the Western District of Virginia imposed the sentence.

In pleading guilty, Cochcroft admitted that he operated businesses that marketed products as “dietary supplements” to the body-building and fitness communities to increase muscle mass. He admitted that some of these products contained osterine, a type of synthetic steroid known as a Selective Androgen Receptor Modulator (SARM). The FDA has warned against the use of SARMs, including stating in a 2017 warning letter to another firm that SARMs have been linked to life-threatening reactions like liver toxicity, and that they have the potential to increase the risk of heart attack and stroke.

“Workout supplements containing anabolic steroids and unapproved steroid-like drugs can be dangerous,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will continue to work closely with the FDA to prosecute those who seek profit at the expense of public safety.”

“Cochcroft and his company placed public health at risk by unlawfully distributing unapproved drugs that have been linked to life-threatening conditions,” U.S. Attorney Christopher R. Kavanaugh said today. “Marketing and distributing unapproved drugs is not only dangerous, but a federal crime.”

According to court filings, Cochcroft took steps to mislead and defraud the government and consumers in the sale of these products, including using multiple addresses with fictitious business names, working with Chinese suppliers to mislabel drug products as foodstuff items, and knowingly failing to seek approval for the products. During its investigation, the government seized various products containing anabolic steroids from Cochcroft’s business. Anabolic steroids are Schedule III controlled substances under the Controlled Substances Act , Schedule III(e) and have been linked to life-threatening reactions and side effects.

The FDA’s Office of Criminal Investigations investigated the case.

Assistant U.S. Attorney Randy Ramseyer o for the Western District of Virginia and Trial Attorney Speare Hodges of the Department of Justice Civil Division’s Consumer Protection Branch prosecuted the case.

The Department of Justice’s Office on Violence Against Women (OVW) announced today nearly $31 million in upcoming grant awards to improve outreach, services and support for survivors of sexual assault, domestic violence, dating violence, and stalking from underserved communities and culturally specific populations. Specifically, OVW’s Grants to Enhance Culturally Specific Services and Sexual Assault Services - Culturally Specific Programs will award a combined total of $18,315,762 through 59 grants to promote community-based programs that offer culturally and linguistically specific services. Under the Grants for Outreach and Services to Underserved Populations Program, OVW will award $4,499,858 to 10 grantees to provide victim services and deploy outreach strategies tailored to the needs of survivors from underserved populations. OVW’s Disabilities Grant Program will award $4,119,788 for 10 projects to build community-wide capacity to provide accessible, safe, and effective services for survivors with disabilities and Deaf individuals. In addition, under the Abuse in Later Life Program, OVW will award $3,650,833 to six grantees to create multidisciplinary partnerships for a comprehensive approach to address elder abuse. OVW Acting Director Allison Randall announced the funding at the 2022 National Conference on Domestic Violence.

“By advancing equity for all, we can promote public safety and increase public trust,” said Associate Attorney General Vanita Gupta. “Today’s announcement furthers OVW’s work to implement the Department of Justice’s Equity Action Plan. By increasing grant awards to culturally specific, community-based organizations OVW is helping to reduce violence and advance civil rights.” 

“It is imperative that we think about barriers that stand between survivors and their access to justice, safety, and healing – including barriers in our own services and systems – and commit ourselves to breaking down those barriers,” said Acting Director Randall. “At OVW, we are making that commitment by enhancing funding for organizations that are operated by and for communities of color and historically marginalized and underserved populations. In this year’s grant solicitations, we prioritized funding for culturally specific, community-based organizations, Tribal organizations, and population-specific organizations. This is critical, because advocates report that survivors are more likely to seek services from organizations they can trust are familiar with their culture, their language and their background.”

OVW’s Culturally Specific Services Program funds the development of innovative culturally and linguistically specific approaches that offer survivors services they might not be able to find at mainstream organizations. The Disabilities Program funds education, training, services, and capacity building to ensure people with disabilities can safely and fully access resources in their communities for survivors of sexual and domestic violence. Through training and services, the Abuse in Later Life Program addresses elder abuse, neglect and exploitation, including domestic violence, dating violence, sexual assault or stalking, against victims who are 50 years of age or older.

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

A former Statesboro, Georgia city councilman was sentenced today to 33 months in prison for evading taxes on income from bars he co-owned.

According to court documents and statements made in court, William Britt, now of Bluffton, South Carolina, evaded taxes on income from various bars he co-owned near college campuses in Georgia. As part of the scheme, each establishment was nominally owned by a single individual. In reality, a group of business partners, including Britt, owned the bars in varying ownership percentages. Britt and the other true owners skimmed cash from the establishments and disbursed it amongst themselves in accordance with their ownership percentages without reporting that income to the IRS.

To complete the fraud scheme, Britt personally ensured that some of the nominal owners of the bars filed false tax returns. Britt also provided false information to an accountant who prepared tax returns related to some of these businesses. Specifically, Britt misrepresented the businesses’ true ownership, underreported the bars’ income, and omitted cash distributions to the owners. This conduct enabled Britt and the other true owners of the bars to file tax returns with the IRS that omitted their full income tax liabilities. As part of his guilty plea, Britt admitted to willfully underreporting his income on his 2014 individual tax return.

In addition to the term of imprisonment, Chief Judge J. Randal Hall of the U.S. District Court for the Southern District of Georgia ordered Britt to serve three years of supervised release and to pay $352,404.54 in restitution to the United States.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney David H. Estes for the Southern District of Georgia made the announcement.

IRS-Criminal Investigation and the FBI investigated the case.

Assistant Chief David Zisserson and Trial Attorney Casey S. Smith of the Tax Division, and the U.S. Attorney’s Office for the Southern District of Georgia, prosecuted the case.

Jeffery T. Havens, 27, a former Eastern Kentucky Correctional Center (EKCC) officer from West Liberty, Kentucky, pleaded guilty today before U.S. District Judge David Bunning, to one count of depriving an inmate of his civil rights.  

According to his plea agreement, Havens admitted that on July 24, 2018, he and another EKCC correctional officer assaulted an inmate who had been taken to an isolated shower cell. Havens admitted that he held the inmate against the ground while his fellow correctional officer punched and kicked the inmate in the head. Havens joined in the assault by punching the inmate multiple times. At the time of the assault, the inmate was unresisting, lying face-down and wearing handcuffs and leg shackles. 

On July 12, in a related case, former EKCC officer Derek Mays pleaded guilty to four counts of obstruction of justice based on his efforts to cover up the same assault.

Havens is scheduled to be sentenced on March 13, 2023. He faces a maximum sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. However, any sentence will be imposed by the court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes. 

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division; Acting U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky; Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office; and Colonel Phillip Burnett Jr. Commissioner of Kentucky State Police (KSP), jointly announced the guilty plea.

The FBI, KSP and the Kentucky Justice and Public Safety Cabinet conducted the investigation. Assistant U.S. Attorneys Zach Dembo and Mary Melton for the Eastern District of Kentucky and Trial Attorney Thomas Johnson of the Justice Department’s Civil Rights Division prosecuted this case. 

A resident of Birch River, West Virginia, has been indicted by a federal grand jury in Columbus, Ohio, on charges of receipt, acquisition or purchase of illegally transported protected plants and falsification of records, Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Kenneth L. Parker for the Southern District of Ohio announced.

The six-count indictment named Tony Lee Coffman, 59, as the sole defendant.

According to the indictment presented to the court, Coffman received, acquired or purchased American ginseng roots that had been illegally transported in interstate commerce from Ohio and falsified records relating to the purchase of Ohio ginseng.

The law provides for a maximum total sentence of five years in prison per count, a fine of $20,000 per count, or both. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Senior Trial Attorney Adam Cullman of the Justice Department’s Environment and Natural Resources Division and Assistant U.S. Attorney Nicole Pakiz for the Southern District of Ohio are prosecuting this case.

The U.S. Fish and Wildlife Service, Office of Law Enforcement and the Ohio Department of Natural Resources conducted the investigation.

The charges contained in the indictment are merely allegations and the defendant is presumed innocent unless and until proven guilty.

A federal jury convicted a woman and man today of wire fraud and conspiracy to commit money laundering relating to a scheme that fraudulently raised money from investors across the country.

According to court documents and evidence presented at trial, Reva Joyce Stachniw, 70, of Galesburg, Illinois, and Ron Throgmartin, 58, of Buford, Georgia, ran a Ponzi scheme from late 2017 until early 2019 by fraudulently representing to victim-investors that their investments were backed by short-term investments in cattle. They also used false and fraudulent pretenses to solicit money from victim-investors for the conspirators’ Colorado-based marijuana business, Universal Herbs LLC. Other victim-investors gave the conspirators money based on false promises that investment money would be used for legitimate business activities related to cattle or marijuana, without having the investment money linked to specific investment opportunities.

Stachniw and Throgmartin were convicted on one count of conspiracy to commit wire fraud, five counts of wire fraud, and one count of conspiracy to commit money laundering. The defendants are scheduled to be sentenced on Jan. 6, 2023, and face a maximum penalty of 20 years in prison on each of the wire fraud counts and the conspiracy to commit wire fraud count, as well as 10 years in prison on the conspiracy to commit money laundering count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division made the announcement.

The Federal Deposit Insurance Corporation Office of Inspector General and the FBI investigated the case.

Assistant Chief Scott Armstrong and Trial Attorney Brandon Burkhart of the Justice Department’s Fraud Section are prosecuting the case.

A partner in several Key West labor staffing companies was sentenced today to more than 24 years in prison for tax, immigration, and money laundering crimes related to the operation of those businesses.

According to court documents and evidence presented at trial, Mykhaylo Chugay and others owned and operated a series of labor-staffing companies in southern Florida, including General Labor Solutions LLC, Liberty Specialty Service LLC, Paradise Choice LLC, Paradise Choice Cleaning LLC, Tropical City Services LLC, and Tropical City Group LLC, between August 2007 and July 2021. Through these staffing companies, Chugay facilitated the employment of individuals in hotels, bars, and restaurants in Key West and other locations, even though the employees were not authorized to work in the United States.

Chugay and his co-conspirators also defrauded the IRS out of more than $25 million in income and Social Security and Medicare taxes that should have been collected and paid over in connection with the employment of these workers. Chugay conspired with others to encourage some workers to enter the United States and remain in the country, in violation of immigration laws. Chugay and others sent checks and wires totaling more than $11 million in proceeds from the illegal scheme to conspirators in Ukraine and elsewhere.

In addition to the term of imprisonment, U.S. District Court Judge Jose E. Martinez for the Southern District of Florida ordered Chugay to serve three years of supervised release. Judge Martinez will enter a forfeiture money judgement and order Chugay to pay at a later date.

“Chugay’s illegal staffing and money laundering operation lasted more than a decade and cost the government millions of dollars in unpaid payroll taxes,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “Employers who follow the rules and pay their fair share of taxes deserve to compete on a level playing field. Those who cut corners and evade their legal obligations should know they will be investigated and prosecuted.”

“The elaborate scheme organized by this organization took advantage of U.S. Government programs designed to assist vulnerable populations seeking assistance and a better life here in the US for their own personal gain,” said Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI) Miami. “This sentence is the culmination of a lengthy investigation which demonstrates the resolve and determination of HSI and its partners to stop individuals trying to take advantage of the systemic vulnerabilities to fuel their lavish lifestyles.”

“We are committed to finding criminals who break the law to gain an unfair market advantage and enrich themselves by avoiding to pay taxes,” said Special Agent in Charge Matthew D. Line of the IRS-Criminal Investigation Miami Field Office. “This is another example of how our local agents and staff applied their skilled forensic financial analysis and criminal investigative expertise to investigate crooked staffing companies engaged in illegal employment practices.” 

Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida made the announcement.

The U.S. Department of Homeland Security's Homeland Security Investigations and IRS-Criminal Investigation are investigating the case. U.S. Citizenship and Immigration Services and U.S. Customs and Border Protection, Air and Marine Operations provided substantial assistance at trial.

Senior Litigation Counsel Sean Beaty, Trial Attorneys Jessica A. Kraft and Nicholas J. Schilling Jr., and Paralegal Robert Resto of the Tax Division, and Assistant U.S. Attorney Chris Clark for the Southern District of Florida, are prosecuting the case.

A federal grand jury in Chicago returned an indictment today charging an Illinois doctor with tax evasion, filing false tax returns and assisting in the preparation and filing of false tax returns for his children.

According to the indictment, from 2011 through 2017 Krishnaswami Sriram, of Lake Forest, Illinois, attempted to evade payment of approximately $1.6 million in taxes, penalties and interest he owed to the IRS. Among other evasive acts, Sriram allegedly caused his children to be the nominal owners of two rental properties he owned and operated, while still continuing to receive income from those properties. He also allegedly transferred more than $600,000 from his U.S. bank accounts into bank accounts in India that he controlled.

Sriram allegedly filed false individual income tax returns that did not report his income from the rental properties and did not disclose his ownership interest in the foreign accounts. He also allegedly filed tax returns for his children that falsely reported the income and expenses related to the rental properties. As part of an attempted offer in compromise, Sriram allegedly knowingly submitted false documents to the IRS that omitted some of his assets, including an investment account in the United States, investment and bank accounts in India and multiple rental properties.

If convicted, Sriram faces up to five years in prison for tax evasion, and up to three years for each count of filing a false tax return and aiding in the filing of a false tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement. He thanked the U.S. Attorney’s Office for the Northern District of Illinois and the Chicago Healthcare Fraud Strike Force of the Justice Department’s Criminal Division for their substantial assistance in this matter.

IRS-Criminal Investigation, the FBI and the Department of Health and Human Services are investigating the case.

Trial Attorney Sara Henderson of the Justice Department’s Tax Division is 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.

A former law enforcement officer in Chattanooga, Tennessee was sentenced today to six years in prison and two years of supervised release for using excessive force against arrestees, announced Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee and Special Agent in Charge Joseph E. Carrico of the FBI Knoxville Field Office.

Anthony “Tony” Bean, 62, was convicted after trial of using excessive force against arrestee C.G. on two occasions during C.G.’s arrest in 2014, while he was the chief of the Tracy City Police Department in Tracy City, Tennessee. In addition, Bean was convicted of using excessive force against arrestee F.M. during F.M.’s arrest in 2017, while he was the chief deputy of the Grundy County Sheriff’s Office in Grundy County, Tennessee. 

In June 2021, the court heard evidence over the course of three days that showed that, during C.G.’s arrest in the Tracy Lakes area of Grundy County in 2014, Bean repeatedly punched C.G. in the face while C.G. was handcuffed and compliant, causing C.G. pain and other injuries. The court also heard evidence that, during F.M.’s arrest Grundy County in 2017, Bean punched F.M. in the face while F.M. was compliant, causing pain and other injuries. The court also heard evidence that Bean bragged about using excessive force against victims and failed to report his uses of force.

“Law enforcement officers who violate victims’ civil rights also violate the trust of their communities,” said Assistant Attorney General Clarke. “The Department of Justice is committed to holding accountable those officers who abuse their authority.”

“Nobody is above the law,” said U.S. Attorney Hamilton. “The defendant, Anthony “Tony” Bean abused his authority and violated the civil rights of arrestees by physically assaulting them while they were restrained and not posing any threat. A sentence of 72 months sends a strong message to the community that the abuse of arrestees will not be tolerated, and law enforcement officers who break the law will be held accountable for their actions.”

“When an officer betrays the oath to protect and serve, the public is put at risk and the law enforcement community is tarnished,” said Special Agent in Charge Carrico.  “The public has a right to trust that officers will do the right thing. When they don't, the FBI remains committed to investigate and bring them to justice.”

The FBI Knoxville Field Division investigated the case. Trial Attorneys Kathryn E. Gilbert and Andrew Manns of the Justice Department’s Civil Rights Division and Assistant U.S Attorney James Brooks for the Eastern District of Tennessee prosecuted the case.

Chattanooga, Tennessee – On August 26, 2022, former law enforcement officer Anthony “Tony” Bean (61), currently of Altamont, Tennessee, was sentenced by the Honorable Travis R. McDonough, in the United States District Court for the Eastern District of Tennessee at Chattanooga to 72 months in prison.

Tony Bean was convicted of using excessive force against arrestee C.G. on two occasions during C.G.’s arrest in 2014, while Bean was the Chief of the Tracy City Police Department in Tracy City, Tennessee, and of using excessive force against arrestee F.M. during F.M.’s arrest in 2017, while Bean was the Chief Deputy of the Grundy County Sheriff’s Office in Grundy County, Tennessee, in violation of Title 18 U.S.C. § 242. Following his imprisonment, Bean will be on supervised release for 24 months. 

In June of 2021, the court heard evidence over the course of three days that showed that, during C.G.’s arrest in the Tracy Lakes area of Grundy County in 2014, Bean repeatedly punched C.G. in the face while C.G. was handcuffed and compliant, causing C.G. pain and other injuries.  The court also heard evidence that, during F.M.’s arrest Grundy County in 2017, Bean punched F.M. in the face while F.M. was compliant, causing pain and other injuries.  The court also heard evidence that Bean bragged about using excessive force against victims and failed to report his uses of force.

Deputy Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney for the Eastern District of Tennessee Francis M. (Trey) Hamilton III, and FBI Knoxville Special Agent in Charge Joseph E. Carrico made the announcement.

“Law enforcement officers who violate victims’ rights also violate the trust of their communities,” said Deputy Attorney General Kristen Clarke. “The Department of Justice will hold accountable those officers who abuse their authority, wherever they may be.”

“Nobody is above the law,” said U.S. Attorney Francis M. Hamilton. “The defendant, Anthony “Tony” Bean abused his authority and violated the civil rights of arrestees by physically assaulting them while they were restrained and not posing any threat. A sentence of 72 months sends a strong message to the community that the abuse of arrestees will not be tolerated, and law enforcement officers who break the law will be held accountable for their actions.”

"When an officer betrays the oath to protect and serve, the public is put at risk and the law enforcement community is tarnished, said Special Agent in Charge Joseph E. Carrico. "The public has a right to trust that officers will do the right thing. When they don't, the FBI remains committed to investigate and bring them to justice."

This case was investigated by the Knoxville Division of the FBI and was prosecuted by Trial Attorneys Kathryn E. Gilbert and Andrew Manns of the Justice Department’s Civil Rights Division and Assistant United States Attorney James Brooks of the U.S. Attorney’s Office for the Eastern District of Tennessee.

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Carl “Casey” Estridge and Shannon Foster Estridge have agreed to pay $150,000 to resolve a civil lawsuit alleging that payments they received from an individual subsequently found liable for paying kickbacks violated the federal Debt Collection Procedures Act. Mr. and Mrs. Estridge had no involvement in the kickback violations. 

Floyd Calhoun Dent III and two other individuals were found liable by a South Carolina jury in 2018 for submitting false claims to Medicare and TRICARE, in violation of the Anti-Kickback Statute and the False Claims Act. A judgment was subsequently entered against these defendants jointly for $114 million. Prior to the judgment, but after Mr. Dent had been served with a Department of Health and Human Services Inspector General subpoena, Mr. Dent and his wife, Christina Marie Dent, transferred $175,500 in cash and gold coins to Mr. and Mrs. Estridge. Mr. Estridge was a long-time employee of corporations owned by Mr. and Mrs. Dent. The government alleged that the Dents received nothing in return for the transferred assets.

“Individuals may not receive and retain gifts that are the proceeds of fraudulent activity,” said Principal Deputy Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Recovering ill-gotten gains that have been improperly transferred to third parties is an important component of the department’s commitment to combat fraud involving taxpayer funds.”

“This case demonstrates an important premise – fraudulently obtained money is not a gift,” said U.S. Attorney Adair Boroughs for the District of South Carolina. 

The settlement resolves the United States’ allegations that Mr. and Mrs. Dent’s transfers to Mr. and Mrs. Estridge were fraudulent transfers. The settlement requires the Estridges to surrender $150,000 to the Department of Justice and the Liquidating Trustee for now bankrupt Health Diagnostic Laboratories Inc., which will split these assets pursuant to a bankruptcy court agreement. 

The settlement was the result of a coordinated effort between the Civil Division’s Fraud and Corporate/Financial Litigation Sections, and the U.S. Attorney’s Office for the District of South Carolina. Senior Trial Counsel Alicia J. Bentley and Trial Attorney Andrew Warner of the Civil Division and Assistant U.S. Attorneys James Leventis, Johanna Valenzuela and Joanna Stroud handled the matter. 

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