District Not Recorded

On July 8, after a three-week trial, a federal jury convicted three former correctional officers at the Hawaii Community Correctional Center — Jason Tagaloa, 31, Craig Pinkney, 38, and Jonathan Taum, 50 — for assaulting an inmate in violation of his civil rights and for obstructing justice in attempting to cover up the violation. A fourth officer, Jordan DeMattos, previously pleaded guilty for his role in the assault and cover up, and testified for the government at trial. After the jury’s verdict, Judge Leslie Kobayashi ordered the U.S. Marshals to take the defendants into custody pending their sentencing hearings.

The evidence at trial established that the defendants assaulted the inmate in the prison’s recreation yard. Over the course of two minutes, the defendants punched and kicked the inmate in the head and body while he was lying face-down in a pool of his own blood. The inmate suffered a broken nose, jaw and eye socket. After the beating, the defendants wrote false reports in which they omitted almost all of the force they had used. When the prison opened an investigation, the defendants met to get their stories straight and brainstorm false excuses they would give for having used force. Ultimately, the Hawaii Department of Public Safety fired all four officers.

“These defendants abused the trust given to them as law enforcement officers when they violently assaulted an inmate and lied to cover it up,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will prosecute corrections officials who violently assault inmates inside our jails and prisons, and abuse their official positions to cover-up their crimes. We are committed to using our civil rights laws to ensure that the rights of all individuals, including those in custody, are fully protected.”

“This prosecution and verdict affirm our office’s commitment to ensuring every person’s civil rights are protected under the law,” said U.S. Attorney Clare E. Connors for the District of Hawaii. “We will continue to enforce those rights the Constitution and other federal laws provide.”

“The FBI will always investigate when a person's civil rights are violated,” said Special Agent in Charge Steven Merrill of the FBI Honolulu Field Office. “As correctional officers, they were held to upholding the standards of law enforcement officers within the state prisons and they did not do so in this case. The FBI will vigorously pursue justice for those whose civil rights were violated.”

The maximum penalties for the charged crimes are 10 years of imprisonment for the deprivation-of-rights offense, 20 years of imprisonment for the false report offenses and five years of imprisonment for the conspiracy offense.

The FBI conducted the investigation. The case was prosecuted by Assistant U.S. Attorney Craig Nolan of the District of Hawaii, and Special Litigation Counsel Christopher J. Perras and Trial Attorney Thomas Johnson of the Justice Department’s Civil Rights Division.

Hoy, en el Instituto de Estudios Judiciales (JSI) en San Juan, Puerto Rico, la Honorable Sonia Sotomayor, Jueza Asociada de la Corte Suprema de los Estados Unidos, se dirigió virtualmente a 24 jueces de Colombia, República Dominicana, El Salvador, México y Panamá como parte de un programa de capacitación del Departamento de Justicia (DOJ) para los jueces del hemisferio occidental.  La jueza Sotomayor destacó la importancia de sus contribuciones al estado de derecho en el hemisferio occidental y los elogió por su papel en la transformación de la justicia latinoamericana.

Con el apoyo de la jueza Sotomayor, y en colaboración con la Oficina de Asuntos Internacionales de Narcóticos y Aplicación de la Ley del Departamento de Estado, la Oficina de Desarrollo, Asistencia y Capacitación Fiscal (OPDAT) del Departamento de Justicia lanzó la JSI en 2012 como respuesta a la ola de reformas del sector de la justicia en América Latina, durante la cual muchos países hicieron la transición de sistemas de justicia inquisitoriales a acusatorios.  A través de la instrucción en español, los ejercicios prácticos y la observación de los procesos judiciales, los jueces participantes aprendieron sobre las directrices probatorias, el papel de los jueces, la gestión de la sala de audiencias en un sistema de justicia acusatorio, contrabando humano y el juicio sin perspectiva de género, entre otros temas importantes.

Este desarrollo de competencias es fundamental para la región, ya que existen diferencias significativas entre los dos sistemas.  Por ejemplo, en un sistema inquisitivo, los jueces investigan los cargos y determinan la culpabilidad mediante deliberaciones escritas a puerta cerrada.  En un sistema acusatorio, el juez actúa como un árbitro imparcial responsable de sopesar las pruebas y garantizar los derechos de la víctima y del acusado en una sala abierta. El JSI ofrece a los homólogos judiciales la oportunidad de aprender habilidades prácticas, animando a los ex alumnos del JSI a convertirse en agentes de cambio dentro de sus judicaturas.   Muchos ex alumnos de la JSI formados por el Departamento de Justicia han podido actuar como multiplicadores de fuerza en la región, impartiendo su formación en su propio poder judicial y en futuros programas de la OPDAT.

Desde el establecimiento de la JSI en 2012, el OPDAT y sus socios de las facultades de derecho de la Universidad de Puerto Rico y la Universidad Interamericana, el Poder Judicial del Estado de Puerto Rico y el Poder Judicial Federal de Estados Unidos han capacitado a más de 1.000 jueces latinoamericanos. Este año se cumple el décimo aniversario de este importante y sostenible proyecto.

Por favor, visite https://www.justice.gov/criminal-opdat para obtener más información sobre los esfuerzos de creación de competencias del OPDAT en todo el mundo.

Today, the Justice Department recognized the first anniversary of the President’s  Executive Order on Promoting Competition in the American Economy,  and celebrated  the Antitrust Division’s most productive year of interagency competition policy engagement in recent history. The Executive Order underscored that competition is a cornerstone of the American economy, and called for a whole-of-government response to “excessive market concentration threaten[ing] basic economic liberties [and] democratic accountability.”

“The Executive Order has created unprecedented opportunities for the Division to work with partner agencies to promote competition policy,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Through public advances in our partnerships and numerous enforcement collaborations, the Executive Order has driven meaningful and widespread benefits to competition in the American economy.”

In the last year, the department has established and expanded relationships with close to a dozen federal agencies. department staff attorneys and economists have provided technical assistance, helped to draft key reports on competition and entered into memoranda of understanding to improve the exchange of information and cooperation on enforcement efforts. The department has publicly announced expanded partnerships with the  Department of Agriculture, the Federal Maritime Commission and the Department of Labor. The department has also submitted formal comments to several agencies, including the National Labor Relations Board and the Surface Transportation Board to ensure they consider the effects on competition of certain rulemaking efforts.

The department is undertaking efforts to review and revise a variety of competition policy documents to ensure its approaches protect competition with the vigor the law demands. Following a robust public outreach campaign during which the agencies received over 5,000 comments and heard from hundreds of other Americans affected by consolidation in industries ranging from hospitals to grocery stores, work is well underway to revise the merger guidelines. Last month, the department, along with the U.S. Patent and Trademark Office and the National Institute of Standards and Technology, announced the withdrawal of a widely-criticized 2019 policy statement on remedies related to standards-essential patents, in order to better serve innovation and competition. The withdrawal statement underscored that the division would apply a case-by-case approach to scrutinizing conduct that threatens to stifle competition.

As the Executive Order shifts into its second year, the department is focused on institutionalizing and routinizing its newly expanded interagency partnerships. The division remains committed to continued cooperation with its partner agencies in the ongoing implementation of the Executive Order and related interagency efforts to promote competitive markets.

On July 6, a federal grand jury in Chicago, Illinois, charged a Florida man with aiding in the preparation and filing of false corporate tax returns.

According to the indictment, from 2016 to 2017, Athanasios “Tom” Dimitropoulos, of New Port Richey, Florida, helped prepare and file 10 false corporate income tax returns on behalf of SDA Global Inc. and ABC Group Corp., two Chicago-based corporations he owns and controls. Dimitropoulos helped prepare tax returns that reported inflated amounts of costs of goods sold and deductible business expenses, resulting in both corporations underreporting their taxable income.  

Dimitropoulos will make his initial appearance at a later date. If convicted, he faces a maximum penalty of three years in prison for each of 10 counts of helping to file a false tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney John R. Lausch, Jr. for the Northern District of Illinois made the announcement.

IRS-Criminal Investigation is investigating the case.

Trial Attorney Boris Bourget of the Tax Division and Assistant U.S. Attorney Patrick King for the Northern District of Illinois 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.

A federal grand jury in the District of New Jersey returned an indictment yesterday charging a resident of Florida with running a massive operation over many years to traffic in fraudulent and counterfeit Cisco networking equipment with an estimated retail value of over $1 billion.

According to the indictment, Onur Aksoy, aka Ron Aksoy, aka Dave Durden, 38, of Miami, allegedly ran at least 19 companies formed in New Jersey and Florida as well as at least 15 Amazon storefronts, at least 10 eBay storefronts, and multiple other entities (collectively, the “Pro Network Entities”) that imported tens of thousands of fraudulent and counterfeit Cisco networking devices from China and Hong Kong and resold them to customers in the United States and overseas, falsely representing the products as new and genuine. The operation allegedly generated over $100 million in revenue, and Aksoy received millions of dollars for his personal gain.

According to the indictment, the devices the Pro Network Entities imported from China and Hong Kong were typically older, lower-model products, some of which had been sold or discarded, which Chinese counterfeiters then modified to appear to be genuine versions of new, enhanced, and more expensive Cisco devices. As alleged, the Chinese counterfeiters often added pirated Cisco software and unauthorized, low-quality, or unreliable components – including components to circumvent technological measures added by Cisco to the software to check for software license compliance and to authenticate the hardware. Finally, to make the devices appear new, genuine, high-quality, and factory-sealed by Cisco, the Chinese counterfeiters allegedly added counterfeited Cisco labels, stickers, boxes, documentation, packaging, and other materials.

The fraudulent and counterfeit products sold by the Pro Network Entities suffered from numerous performance, functionality, and safety problems. Often, they would simply fail or otherwise malfunction, causing significant damage to their users’ networks and operations – in some cases, costing users tens of thousands of dollars. Customers of Aksoy’s fraudulent and counterfeit devices included hospitals, schools, government agencies, and the military.

As set forth in the indictment, between 2014 and 2022, Customs and Border Protection (CBP) seized approximately 180 shipments of counterfeit Cisco devices being shipped to the Pro Network Entities from China and Hong Kong. In response to some of these seizures, Aksoy allegedly falsely submitted official paperwork to CBP under the alias “Dave Durden,” an identity that he used to communicate with Chinese co-conspirators. To try to avoid CBP scrutiny, Chinese co-conspirators allegedly broke the shipments up into smaller parcels and shipped them on different days, and Aksoy used at least two fake delivery addresses in Ohio. After CBP seized a shipment of counterfeit Cisco products to Aksoy and the Pro Network Entities and sent a seizure notice, Aksoy allegedly often continued to order counterfeit Cisco products from the same supplier. 

According to the indictment, between 2014 and 2019, Cisco sent seven letters to Aksoy asking him to cease and desist his trafficking of counterfeit goods. Aksoy allegedly responded to at least two of these letters by causing his attorney to provide Cisco with forged documents. In July 2021, agents executed a search warrant at Aksoy’s warehouse and seized 1,156 counterfeit Cisco devices with a retail value of over $7 million.

Aksoy is charged with one count of conspiracy to traffic in counterfeit goods and to commit mail and wire fraud; three counts of mail fraud; four counts of wire fraud; and three counts of trafficking in counterfeit goods. Aksoy was charged by a criminal complaint filed in New Jersey on June 29 and was arrested in Miami the same day.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Attorney for the United States Vikas Khanna of the District of New Jersey; Acting Special Agent in Charge Eddy Wang of the Homeland Security Investigations (HSI) Los Angeles Field Office; Special Agent in Charge Bryan Denny of the U.S. Department of Defense, Defense Criminal Investigative Service (DCIS) Western Field Office; Special Agent in Charge Floyd Martinez of the General Services Administration Office of Inspector General (GSA-OIG), Southeast and Caribbean Division; Special Agent in Charge Peter Tolentino of the Naval Criminal Investigative Service (NCIS), Economic Crimes Field Office; Special Agent in Charge Anthony Salisbury of the HSI Miami Field Office; and Special Agent in Charge Jason Molina of the HSI Newark Field Office made the announcement today. 

The CBP Electronics Center of Excellence; the CBP Los Angeles National Targeting and Analysis Center; and the CBP Office of Trade, Regulatory Audit and Agency Advisory Services, Miami Field Office provided valuable assistance.

If you believe you are a victim of Aksoy or the Pro Network Entities, please visit www.justice.gov/largecases or /usao-nj/united-states-v-onur-aksoy-pro-network for more information.

The Pro Network Entities include at least the following:

Pro Network Companies

Approximate Month and Year of Formation

State of Formation

Pro Network LLC

August 2013

New Jersey

Netech Solutions LLC

November 2016

Florida

Target Network Solutions LLC

January 2017

Florida

Easy Network LLC

April 2017

New Jersey

ACE NETUS LLC (aka Ace Network)

April 2017

New Jersey

My Network Dealer LLC

April 2017

New Jersey

1701 Doral LLC

May 2017

New Jersey

Maytech Trading LLC

August 2017

Florida

NFD Trading LLC

September 2017

Florida

Kenet Solutions LLC

September 2017

Florida

Team Tech Global LLC

January 2018

New Jersey

Tenek Trading LLC

January 2018

Florida

The Network Gears LLC

February 2018

Florida

All Networking Solutions LLC (aka All Network)

April 2018

Florida

San Network LLC

October 2018

Florida

Pro Network US Inc.

January 2019

Florida

Jms Tek LLC

August 2019

Florida

Renewed Equipment LLC

August 2021

Florida

Pro Ship US LLC

August 2021

Florida

Pro Network Amazon Storefronts

Approximate Date of Earliest

Known Activity

Albus Trade Hub

January 2014

EasyNetworkUS

March 2014

Get Better Trade

July 2015

Mercadeal

February 2017

Netech Solutions

February 2018

Netkco LLC

September 2014

NFD Trading LLC

January 2018

Palm Network Solutions

June 2017

Renewed Equip

August 2017

Servtaur

August 2019

Smart Network

July 2017

SOS Tech Trade

August 2017

Target-Solutions

September 2020

TeamTech Global

March 2016

TradeOrigin US

August 2015

Pro Network eBay Storefronts

Approximate Date of Earliest

Known Activity

connectwus

March 2014

futuretechneeds

July 2017

getbettertrade

July 2017

getontrade

April 2016

maytechtradingllc

October 2017

netechsolutions

April 2017

netkco

September 2014

nfdtrading

February 2018

smartnetworkusa

January 2014

tenektradingllc

May 2018

HSI, DCIS, GSA-OIG, NCIS, and CBP are investigating the case.

Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Andrew M. Trombly and Senior Trial Counsel Barbara Ward of the District of New Jersey 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.

A North Carolina man was sentenced today to 15 months in prison for preparing false trust tax returns on behalf of his Washington, D.C.-based and other clients.

According to court documents and statements made in court, Thy Muhammad owned and operated Seventh Millennium International, a Rocky Mount, North Carolina, tax preparation business. In 2013 and 2014, Muhammad prepared fraudulent trust tax returns for clients, falsely reporting that the clients had paid taxes in the name of purported trusts. One such false return resulted in the IRS issuing a refund check of more than $500,000, of which Muhammad took nearly $78,000 as a preparation “fee.” During these two years, Muhammad claimed a total of more than $5 million in fraudulent refunds from the IRS that his clients were not entitled to receive.

In addition to the term of imprisonment, U.S. District Judge Randolph D. Moss of the District of Columbia ordered Muhammad to serve three years of supervised release and pay $669,000 in restitution.

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

IRS-Criminal Investigation investigated the case.

Trial Attorneys Jeffrey McLellan and George Meggali, and former Trial Attorney Abigail Burger Chingos, of the Tax Division prosecuted the case.

A Kansas City man pleaded guilty in federal court today to committing a hate crime by shooting a local teenager eight times in an attempted murder that was motivated by the victim’s sexual orientation.

Malachi Robinson, 26, pleaded guilty before U.S. District Judge Brian C. Wimes to one count of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act. Robinson, who has been in federal custody since he was indicted by a federal grand jury on Aug. 10, 2021, will remain in federal detention until his sentencing hearing, which has not yet been scheduled.

By pleading guilty today, Robinson admitted that he shot the victim, identified in court records as “M.S.,” approximately eight times with a Taurus 9mm pistol in an attempt to kill him because of his sexual orientation, causing life-threatening injuries.

“This defendant is being held accountable for violently attempting to end the life of someone because of his sexual orientation,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This attempted murder is a reminder that hate crimes against the LGBTQI+ community are real and must be confronted. Violent acts targeting people based on their sexual orientation are heinous crimes that have no place in our country. The Justice Department will continue to use our civil rights laws to pursue justice for survivors and others impacted by bias motivated crimes.”

“Violence against others, motivated by hatred of their sexual orientation, is unacceptable,” said U.S. Attorney Teresa Moore of the Western District of Missouri. “Such callous disregard for the life of a teenage victim, gravely wounded in a failed murder attempt, must be challenged by a commitment to protect the civil rights of all our citizens. When those rights are threatened, the Justice Department will act to hold the violators accountable.”

“Hate crimes—and the violence we saw in this case—are especially cruel because victims are attacked because of who they are,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI treats hate crimes as the highest priority of our civil rights program because everyone deserves to feel safe to express who they are, without fear of violence from others. We are committed to working with our law enforcement partners to bring justice to all communities affected by hate.”

According to today’s plea agreement, after a chance meeting at the Kansas City Public Library on May 29, 2019, Robinson and M.S. talked briefly over Facebook Messenger before leaving the library. Robinson then walked with M.S. in the Swope Park area under the guise of looking for a place to engage in a sex act. Around the same time, Robinson wrote separately to his girlfriend that he “might shoot this boy” because of his sexual orientation. When Robinson and M.S. ultimately entered a wooded area nearby, Robinson pulled out his pistol and fired repeatedly at M.S.

Robinson fled through the woods toward his apartment building, and continued to engage in attempts to avoid detection or arrest. Later that day, and in the days that followed, Robinson told others that he shot M.S. because of his sexual orientation.

Under federal statutes, Robinson is subject to a sentence of up to life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

Assistant Attorney General Clarke, U.S. Attorney Moore and Assistant Director Quesada of the FBI’s Criminal Investigative Division made the announcement. This case is being prosecuted by Assistant U.S. Attorney Dave Ketchmark for the Western District of Missouri and Trial Attorneys Shan Patel and Eric Peffley of the Civil Rights Division of the U.S. Department of Justice. It was investigated by the Kansas City, Mo., Police Department and the FBI.

A Florida doctor was sentenced today to 54 months in prison for engaging in a scheme that fraudulently billed approximately $112 million for substance abuse services that were never provided or were medically unnecessary.

According to court documents, Jose Santeiro, 62, of Miami Lakes, worked with others to unlawfully bill for approximately $112 million of addiction treatment services that were never rendered and/or were medically unnecessary at two addiction treatment facilities where Santeiro was the medical director. The facilities were Second Chance Detox LLC, dba Compass Detox (Compass Detox), an inpatient detox and residential facility, and WAR Network LLC (WAR), a related outpatient treatment program.

According to court documents and evidence presented at trial, Santeiro and others admitted patients for medically unnecessary detox services, the most expensive kind of treatment the facilities offered. Patient recruiters offered kickbacks to induce patients to attend the programs and then gave them illegal drugs to ensure admittance for detox at Compass Detox. Evidence at trial also showed that Santeiro submitted false and fraudulent claims for excessive, medically unnecessary urinalysis drug tests that were never used in treatment. Santeiro and others then authorized the re-admission of a core group of patients who were shuffled between Compass Detox and WAR to fraudulently bill for as much as possible, even though the patients did not need the expensive treatment for which they were repeatedly admitted. Santeiro also prescribed Compass Detox patients a so-called “Comfort Drink” to sedate them, ensure they stayed at the facility, and keep them coming back. The evidence further showed that Santeiro’s log-in was used, with his knowledge, by others to sign electronic medical files to make it appear as if Santeiro had provided treatment himself when he did not.

After a 15-day trial in March 2022, Santeiro was convicted of conspiracy to commit health care fraud and wire fraud, and eight counts of health care fraud. Two other co-defendants, Jonathan and Daniel Markovich, were convicted in an earlier trial in November 2021 and sentenced to 188 months and 97 months in prison, respectively. Richard Waserstein, an attorney, pleaded guilty to one count of conspiracy to commit money laundering and was sentenced to 13 months in prison. Drew Lieberman, another doctor, pleaded guilty to conspiracy to commit health care fraud and was sentenced to 13 months in prison. Christopher Garnto pleaded guilty to conspiracy to commit health care fraud and wire fraud and was sentenced to 24 months in prison. 

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; and Special Agent in Charge Omar Pérez Aybar of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.

The FBI’s Miami Field Office, HHS-OIG, and the Broward County Sherriff’s Office investigated the case.

Senior Litigation Counsel Jim Hayes and Trial Attorneys Jamie de Boer and Andrea Savdie of the Criminal Division’s Fraud Section prosecuted the case.

The National Rapid Response Strike Force, Los Angeles Strike Force, and Miami Strike Force lead the Department of Justice’s Sober Homes Initiative, which prosecutes defendants who exploit vulnerable patients seeking treatment for drug and/or alcohol addiction.

The U.S. Marshals Service has concluded a high-impact fugitive apprehension initiative aimed at combating violent crime in 10 cities with a significant number of homicides and shootings.

This 30-day initiative, called Operation North Star (ONS), resulted in the arrest of 1,501 fugitives, violent criminals, sex offenders, and self-identified gang members in Baltimore, Chicago, Houston, Indianapolis, Los Angeles, Memphis, New Orleans, New York City, Philadelphia, and Washington, D.C.

Operation North Star focused on fugitives wanted for the most serious, violent, and harmful offenses, including homicide, sexual assault, robbery, or aggravated assault. Operation North Star investigators prioritized their efforts to include individuals using firearms in their crimes, or who exhibited risk factors associated with violence.

“The Justice Department is committed to doing everything we can to protect our communities from violent crime and end the plague of gun violence,” said Attorney General Merrick B. Garland. “Operation North Star reflects the approach we are taking across the Department to work in partnership with law enforcement agencies and communities to identify and hold accountable those responsible for the greatest violence. I am grateful to the U.S. Marshals Service and the many federal, state, and local task force partners who carried out this operation, and who continue to work to keep the American people safe each and every day.”

Throughout the month of June, the U.S. Marshals Service used its broad arrest authority and network of task forces to arrest individuals wanted on charges, including 230 for homicide; and 131 for sexual assault. In addition, investigators seized 166 firearms, more than $53,600 in currency, and more than 33 kilograms of illegal narcotics.

“The Marshals remain committed to assisting state and local law enforcement with reducing violent crime in our most vulnerable communities,” said U.S. Marshals Service Director Ronald Davis. “Operation North Star was focused on areas where local law enforcement has seen a large number of homicides and shootings. By partnering with our local and state partners, we are able to hone in on the most dangerous criminals who cause the most harm. I am very proud to lead an agency that is always willing and ready to do the work necessary to quell the violence affecting so many of our cities.”  

Notable arrests resulting from Operation North Star:

• On June 4, Great Lakes Regional Fugitive Task Force (GLRFTF) members arrested Jose Galiano-Meza, 28, who was wanted out of Douglas County, Kansas, for homicide. Galiano-Meza was the suspect in a hit-and-run that resulted in the death of a 10-year-old girl from Eudora, Kansas. A collateral lead was sent by the District of Kansas to the GLRFTF in Indianapolis where Galiano-Meza was located and arrested.
• On June 6, members of the Eastern Pennsylvania Violent Crime Fugitive Task Force (EPVCFTF) arrested Rashaan Vereen, 34, for attempted homicide, aggravated assault, and firearms charges. Vereen was one of the suspects in a mass shooting incident on June 4 on South Street in Philadelphia in which three people were killed and 11 injured. Also arrested in connection with the shooting were Quran Garner, 18, and a 15-year-old suspect.
• On June 8, members of the New York/New Jersey Regional Fugitive Task Force (NY/NJRFTF) arrested Dionte Mitchell, 22, on two counts of homicide and possession of a weapon during a violent crime. Mitchell allegedly shot and killed two female victims after a dispute at a party.
• On June 9, members of the NY/NJRFTF arrested Jaden Baskerville, 21. He was wanted in New York for attempted homicide in connection with a drive-by shooting that resulted in the injury of a seven-year-old girl. Task Force members located Baskerville at a residence in Brooklyn and arrested him without incident.
• On June 14, GLRFTF members arrested Prince Cunningham, 49, for homicide. Cunningham was wanted by the Aurora (Illinois) Police Department on two counts of first-degree murder on a cold case homicide from May 9, 2003. After conducting countless hours of surveillance at multiple locations, investigators spotted Cunningham getting into the driver’s seat of a pickup truck. They broke surveillance, approached Cunningham and safely arrested him.
• On June 16, Capital Area Regional Fugitive Task Force (CARFTF) members arrested Robert Bakersville, 28, for homicide. At the residence where Bakersville was arrested, a search warrant was conducted and ammunition and parts consistent with building a “ghost gun” were seized.

The concept behind interagency law enforcement operations such as Operation North Star evolved largely from regional and district task forces. Since the 1980s, the Marshals Service has combined their resources and expertise with local, state, and federal agencies to find and apprehend dangerous fugitives. Operation North Star continued this tradition.

For more information about Operation North Star visit www.usmarshals.gov.

The Department of Justice has secured an agreement with the Madison County School Board to provide equal educational opportunities for Black students and pave the way for the district to fulfill its obligations in a longstanding school desegregation case. The consent order, approved today by U.S. District Court Judge Madeleine Hughes Haikala of the Northern District of Alabama, requires the school district to take action to provide equal access to gifted and talented services and other academic programs; ensure non-discrimination in student discipline; and improve practices for faculty recruitment, hiring, assignment and retention.   

“It is long past time to deliver on the promises of Brown v. Board of Education for our nation’s students,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We are committed to ensuring that all students receive the educational opportunities they deserve across the Madison County School District. The Civil Rights Division will continue to fight on behalf of students in school districts that have not yet fulfilled their legal obligation to eliminate racial segregation ‘root and branch.’”

This consent order will address findings from the Justice Department’s most recent review of the district, including that Black students faced unnecessary barriers to participating in gifted and advanced programs, that they were subjected to exclusionary discipline at disparate rates when compared to their white peers, that Black high schoolers were more likely than their white peers to be referred for subjective infractions, and that the district’s recruitment and hiring processes left several schools without a single Black faculty member. Under the terms of the consent order, the district will, among other requirements:

• Improve its gifted identification policies, training and practices; expand access to advanced placement and other advanced curricula; and identify and remove existing barriers for Black students;
• Engage a third-party consultant to conduct a comprehensive review of the district’s discipline policies and procedures; revise the code of conduct; train staff on classroom behavior management; and collect and review discipline data to identify and address trends and concerns;
• Review faculty hiring, recruitment and retention practices to identify barriers for diverse applicants, improve recruitment and retention of Black teachers and administrators, and ensure their equitable assignment to schools;
• Appoint a district-level administrator to oversee implementation of the agreement and professional development for faculty, staff and administrators; and
• Work with a newly-constituted and diverse Desegregation Advisory Committee.

The order also requires regular reporting to the court, the Justice Department and private plaintiffs represented by the NAACP Legal Defense Fund. The court will retain jurisdiction over the consent order during its implementation and the Justice Department will monitor the district’s compliance. 

The Civil Rights Division continues to prioritize enforcement of desegregation orders in school districts formerly segregated by law to ensure that all children can access the building blocks of educational success. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at https://www.justice.gov/crt/educational-opportunities-section.

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

The Department of Justice announced today that it has begun phase two of the remission compensation process to provide recovery for Western Union fraud victims.

In 2017, Western Union entered into a deferred prosecution agreement (DPA) with the Department of Justice and agreed to forfeit $586 million. The Department of Justice previously distributed over $366 million to over 148,000 victims. Because additional forfeited funds remain available in this case, the Department of Justice has reopened the petition process to potential victims who did not previously submit a petition for remission.

Victims of fraud who sent a money transfer through Western Union between Jan. 1, 2004, and Jan. 19, 2017, can file a petition for remission and receive compensation for their fraud losses. Individuals who believe they may be victims may file a petition online or may obtain a petition form online at www.WesternUnionRemissionPhase2.com. The deadline to file a petition for remission is Aug. 31, 2022. More information regarding the remission process, including eligibility criteria, updates, and frequently asked questions is available at the remission website or by calling 1-855-786-1048.

“The department is pleased to have provided compensation to over 148,000 victims and hopes additional victims take the opportunity to file claims relating to the harms caused by these schemes,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Asset forfeiture is a tool critical for compensating crime victims.”

“The hard work of our dedicated investigators and prosecutors held Western Union accountable and brought justice to many individuals who perpetrated the fraud using the Western Union system,” said U.S. Attorney Gerard M. Karam for the Middle District of Pennsylvania. “Though we are gratified those thousands of victims have already received compensation, our work continues as we urge those other fraud victims who have not yet submitted their petitions for remission to do so promptly so that they can also receive restitution.”

“The U.S. Postal Inspection Service is very pleased and honored to have been part of this cooperative effort in providing over $366 million in financial relief to so many victims,” said Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service’s Philadelphia Division. “As we move forward with the second phase of the Western Union Remission, we will continue to support the mission of ensuring monies are returned to their rightful owners.”

“Scammers used Western Union’s money transfer system because they knew the company turned a blind eye,” said Director Samuel Levine of the Federal Trade Commission’s (FTC) Bureau of Consumer Protection. “With our law enforcement partners, we continue to return money to those harmed by the company’s failures, and people still have until Aug. 31 to submit claims.”

Pursuant to the DPA, Western Union acknowledged responsibility for its criminal conduct, which included violations of the Bank Secrecy Act and aiding and abetting wire fraud, and agreed to forfeit $586 million, which has been made available to compensate victims of an international consumer fraud scheme. Western Union simultaneously resolved a parallel civil investigation with the FTC.

According to court documents, fraudsters targeted consumers, including seniors, through multiple scams and convinced their victims to send money through Western Union. Three specific scams directed towards seniors included the so-called grandparent scam, where the fraudster would pose as the victim’s relative in purported need of immediate money to avoid personal harm; lottery or sweepstakes scams, where the fraudster would tell the victim that he or she had won a large cash prize but had to pay fees, such as taxes, to claim the prize; and romance scams, where the fraudster would pose as an online love interest and request funds for a visit or for another purpose.

Certain owners, operators, or employees of Western Union locations were complicit in the scheme. Western Union aided and abetted the scheme by failing to suspend or terminate complicit agents and by allowing them to continue to process fraud-induced monetary transactions. Western Union has fulfilled its obligations under the DPA, and the court granted the motion to dismiss the criminal information against Western Union.

The Department of Justice, through the Asset Forfeiture Program, works diligently to restore lost funds to victims of crime and acknowledges the significant assistance of the U.S. Postal Inspection Service Philadelphia Division’s Harrisburg Office in the victim compensation process and in conducting the criminal fraud investigation. Since fiscal year 2000, the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), which will oversee the remission process, has successfully used its specialized expertise to return billions in forfeited assets to victims of crime. The victim compensation payments in this case would not have been possible without the extraordinary efforts of MLARS and the U.S. Attorneys’ Offices for the Middle District of Pennsylvania, the Central District of California, the Eastern District of Pennsylvania, and the Southern District of Florida. The FBI’s Los Angeles Field Office, IRS-Criminal Investigation, Homeland Security Investigations, the Federal Reserve Board, the Consumer Financial Protection Bureau Office of Inspector General, and the Department of the Treasury Office of Inspector General provided valuable assistance. The FTC conducted the civil fraud investigation.

Gilardi & Co. LLC is serving as the remission administrator in this matter. Gilardi & Co. LLC and the Department of Justice will not ask for any payment to participate in this remission process.

For more information on how to protect yourself from fraud, please visit www.uspis.gov or www.consumer.ftc.gov.

Steven “Craig” Shelton, 61, pleaded guilty today in federal court in the Eastern District of Texas to violating an arrestee’s civil rights by using excessive force against him. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Brit Featherston for the Eastern District of Texas, and Special Agent in Charge Matthew DeSarno of the FBI Dallas Field Division made the announcement.

During the plea hearing, Shelton admitted that on or about Sept. 21, 2021, while he was acting as the Chief Deputy and second-in-command of the Van Zandt County Sheriff’s Office, he repeatedly struck a handcuffed and compliant arrestee in the face. Shelton further admitted that his acts, which occurred in front of several other officers in the Rolling Oaks area of Wills Point, Texas, caused bodily injury to the arrestee. Shelton admittedly hit the arrestee out of frustration, despite knowing that there was no legitimate, law enforcement need to use force.

“Those who hold leadership positions inside sheriff’s offices violate the public trust when they abuse their official authority and position to carry out assaults on people detained in their custody,” said Assistant Attorney General Clarke. “The Department of Justice will continue to hold accountable law enforcement officers, at every level, who abuse their authority by using excessive force to deprive people of their constitutional rights.”

“It is the undisputed duty of a law enforcement officer to protect and serve,” said U.S. Attorney Brit Featherston. “Public trust in law enforcement is eroded when officers do not follow the laws they are sworn to enforce, and my office will continue to hold those accountable who think they are above the law.”

“Officers who use excessive force break the trust of their communities and their oath to protect and serve,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Violating the civil rights of an arrestee is a clear abuse of authority and will not be tolerated by the FBI. We are dedicated to upholding the constitutional rights of everyone and expect those in law enforcement to do the same.”

With his guilty plea and pursuant to the terms of the plea agreement, the defendant faces a 44-month prison sentence.

A sentencing date will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

This case was investigated by the FBI Dallas Field Division. It is being prosecuted by Assistant U.S. Attorney Tracey Batson for the Eastern District of Texas and Trial Attorneys Kathryn E. Gilbert and Matthew Tannenbaum of the Justice Department’s Civil Rights Division.

A former IRS employee was sentenced to 13 months in prison today following a guilty plea in March in which he admitted to filing false tax returns and providing fabricated records to the IRS in an attempt to obstruct an audit of those returns.

According to court documents, Wayne M. Garvin, 57, currently of Columbia, South Carolina, was a long-time IRS employee who most recently worked as a Supervisory Associate Advocate with the IRS’s Taxpayer Advocate Service in Philadelphia. For the years 2012 through 2016, while working as an IRS employee, Garvin prepared and filed with the IRS personal income tax returns on which he claimed false deductions and expenses associated with rental properties, fictitious real estate taxes on his personal residence and fabricated charitable contributions. Moreover, on his 2013 tax return, Garvin deducted nearly $16,000 in false expenses associated with his employment with the U.S. Army Reserves. Although Garvin was formerly a member of the U.S. Army Reserves, he did not perform any reservist duty in 2013 and was not entitled to deduct any expenses related to that employment. In total, Garvin caused a loss to the IRS of more than $74,000.

Court documents also show that after the IRS began an audit of his 2013 and 2014 tax returns, Garvin attempted to obstruct the audit by submitting fictitious documents to the IRS. For example, to justify the false deductions and expenses on his tax returns, Garvin fabricated and submitted to the IRS auditors receipts from a church, invoices from a contractor and a letter from the Department of the Army. After learning he was under criminal investigation, Garvin later submitted some of the same fraudulent documents to IRS-Criminal Investigation.

In addition to the term of imprisonment, Garvin was ordered to serve three years of supervised release and pay restitution to the IRS in the amount of $ $74,662.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania made the announcement.

IRS-Criminal Investigation investigated the case.

Trial Attorney Melissa S. Siskind of the Justice Department’s Tax Division and Assistant U.S. Attorney Tiwana Wright for the Eastern District of Pennsylvania prosecuted the case.

As part of the work that began several weeks ago and is ongoing, the Department of Justice’s Critical Incident Review Team examining the mass shooting at the Robb Elementary School in Uvalde, Texas, conducted its first site visit the week of June 27. Justice Department staff were joined by subject matter experts in conducting meetings and gathering pertinent information. This site visit, and all subsequent site visits, are just one piece of what will be a thorough and comprehensive review. We anticipate the cooperation of all the agencies involved in the response, as the department is committed to moving forward with a full, fair and complete accounting. The goal of the review is to provide an independent account of law enforcement actions and responses; identify lessons learned and best practices to help first responders prepare for and respond to active shooter events; and provide a roadmap for community safety before, during and after such incidents. The department will make its full findings and recommendations publicly available at the completion of the review.

Yesterday, Deputy Attorney General (DAG) Lisa O. Monaco met with a group of Chief Executive Officers (CEOs) at the Retail Industry Leaders Association’s annual Washington, D.C., summit to discuss a host of issues impacting the industry nationwide — including cybersecurity as well as violent crime and gun violence.

On cybersecurity, the DAG cautioned the CEOs to be mindful of what the Justice Department continues to see as the “blended threat” of sophisticated cyber-criminal groups and nation-state actors forming alliances of convenience, of opportunity, and by design. She encouraged retailers to bolster their cyber defensives and proactively develop a relationship with their local FBI.

In discussing how the Justice Department is combating violent crime and gun violence, the DAG also addressed organized retail crime, in particular, the federal charges U.S. Attorneys across the country are bringing in instances of aggravated retail theft. The DAG also highlighted the federal resources and expertise that the Department’s law enforcement components are providing to our state and local partners, including as members of retail theft task forces.

Lastly, the DAG took the opportunity to reiterate that corporate criminal enforcement is a priority for the Justice Department and stressed to the CEOs the importance of fostering a strong culture of corporate compliance.

A federal grand jury in New Orleans, Louisiana, returned an indictment charging a Louisiana man with seven counts of Possession of Animals in an Animal Fighting Venture.

According to court documents, David Guidry III, 47, possessed and received dogs for the purpose of having the dogs participate in animal fighting ventures.

On or around Oct. 24, 2017, a federal law enforcement team consisting of agents from the Department of Agriculture, the FBI and the U.S. Marshals Service and other agencies executed a search warrant on Guidry’s residence. The physical evidence from the search along with court-authorized wiretaps established that Guidry violated the federal anti-animal-fighting statute.

If convicted, Guidry faces up to five years in prison for each count of conviction. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Trial Attorney Matthew D. Evans of the Justice Department’s Environment and Natural Resources Division, Environmental Crimes Section and Assistant U.S. Attorney Jonathan L. Shih for the Eastern District of Louisiana are prosecuting the case.

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

The Department of Justice announced today that it has reached a settlement agreement with Technology Hub Inc., an IT staffing and recruiting company based in Virginia. The settlement resolves claims that Technology Hub discriminated against both U.S. citizens and non-U.S. citizens with permission to work in the United States, based on their citizenship or immigration status during its recruitment process.

“Neither employers nor staffing agencies can exclude job applicants by advertising or implementing unlawful preferences based upon citizenship or immigration status,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division is committed to enforcing the law to ensure that those who are looking for jobs are protected from unlawful discrimination.”

Based on its investigation, the department concluded that on at least four occasions Technology Hub sought and screened job applicants based on preferences the company and its clients had for workers with particular citizenship or immigration statuses. The company’s practices harmed workers who fell outside those preferences by deterring them from applying. For example, the investigation revealed that at least three times Technology Hub excluded asylees, refugees and U.S. nationals when advertising vacancies for only U.S. citizens and lawful permanent residents. The department further concluded that on at least one occasion Technology Hub discriminated against U.S. workers when it advertised a job seeking only H-1B visa workers.

The Immigration and Nationality Act (INA) protects U.S. citizens, U.S. nationals, refugees, asylees and recent lawful permanent residents from workplace discrimination based on citizenship or immigration status. The INA generally prohibits employers and recruiters from limiting jobs based on citizenship or immigration status unless required by a law, regulation, executive order or government contract. Under the INA, employers and other entities that recruit or refer for a fee can only limit jobs based on citizenship or immigration status if required by a law, regulation, executive order or government contract. Employers and their recruiters violate the INA if they implement a client’s unlawful discriminatory preferences.

Under the terms of the settlement agreement, Technology Hub will pay $12,000 in civil penalties to the United States, revise its policies and procedures, train relevant employees and agents on the INA’s anti-discrimination provision and be subject to monitoring for a three-year period to ensure compliance.

The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, this law prohibits discrimination based on citizenship or immigration status, and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation. IER’s website has more information about how to avoid citizenship status discrimination in hiring and recruiting. 

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

View the Spanish translation of this press release here.

Following a seven-day trial, a federal jury today found defendant Julio Ruiz Chuta, 35, guilty of smuggling an unaccompanied child into the United States for financial gain. The jury found Chuta not guilty of forced labor and confiscating the child’s passport and other immigration documents.

According to the evidence presented in court, the defendant was familiar with the child victim and his family since they were from the same village in Guatemala. Because of the limited opportunities in Guatemala and because the defendant had lived in the United States, the family turned to the defendant for help. Based on the defendant’s promise to care for the minor, the boy’s parents allowed him to travel to the United States and permitted the defendant to act as his guardian in the United States. The defendant imposed a debt upon the boy and his family, charged them interest and pressured them to pay, causing the boy to work instead of attending school. The defendant also caused the family to hand over the deed to property they held in Guatemala as collateral for the outstanding debt.

“This defendant used a false promise of a better life in the United States to defraud a Guatemalan child and his family, and then callously caused the child to work long hours for his own financial gain,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “The Department of Justice is firmly committed to prosecuting perpetrators who lure unaccompanied minors into the United States only to turn around and exploit them for their own profit.” 

“This is one of those cases that we constantly warn people about, the dangers of placing the life of a loved one into the hands of a human smuggler,” said Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI) Miami. “The school age victim came here with hopes of living the American dream which quickly turned into a nightmare when Chuta forced the minor to work instead of attending school. HSI will continue to target organizations and individuals that exploit and profit off of innocent people.”

Sentencing has not yet been scheduled in this matter. The defendant faces a maximum sentence of 10 years in prison.

This case was investigated by HSI and the Palm Beach County Sheriff’s Office. It is being prosecuted by Assistant U.S. Attorney Gregory Schiller for the Southern District of Florida and Trial Attorney Kate Hill of the Civil Rights Division’s Human Trafficking Prosecution Unit.

Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org.

WASHINGTON – El Departamento de Justicia anunció hoy que ha llegado un acuerdo conciliatorio con Technology Hub Inc., una compañía de contratación y reclutamiento en el ámbito de la informática con sede en Virginia. El acuerdo resuelve las acusaciones de que Technology Hub había discriminado tanto a ciudadanos de los EE. UU. como a no ciudadanos de los EE. UU. que contaban con permiso para trabajar en los Estados Unidos, con base en su estatus migratorio o ciudadanía durante su proceso de reclutamiento.

«Ni empleadores ni agencias de contratación pueden excluir a solicitantes de trabajo al promocionar o implementar preferencias ilícitas basadas en la ciudadanía o el estatus migratorio de uno», 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 hacer cumplir la ley para garantizar que los que están buscando un trabajo queden protegidos de la discriminación ilícita».

Con base en su investigación, el Departamento concluyó que en al menos cuatro ocasiones, Technology Hub buscó e investigó a solicitantes con base en la preferencia de la compañía y sus clientes por trabajadores con cierto estatus migratorio o ciudadanía. Las prácticas de la compañía perjudicaron a trabajadores que no acataban esas preferencias al disuadirles de solicitar un trabajo. Por ejemplo, la investigación reveló que en al menos tres ocasiones, Technology Hub excluyó a asilados, refugiados y nacionales de los EE. UU. al promocionar vacantes solamente para ciudadanos y residentes permanentes legales de los EE. UU. Más aún, el Departamento concluyó que en al menos una ocasión, Technology Hub discriminó a trabajadores en este país al promocionar un puesto que buscaba solamente a trabajadores con visas H-1B.

La disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) protege a ciudadanos estadounidenses, nacionales no ciudadanos de los EE. UU., refugiados, asilados y residentes permanentes legales recientes de la discriminación en el empleo por motivos de su estatus migratorio o de ciudadanía. Por lo general, la INA prohíbe que los empleadores y reclutadores restrinjan puestos de trabajo con base en la ciudadanía o el estatus migratorio a menos que así lo requiera una ley, un reglamento, una orden ejecutiva o un contrato gubernamental. Conforme la INA, los empleadores y otras entes que reclutan o recomiendan por comisión a trabajadores solo pueden restringir puestos con base en la ciudadanía o el estatus migratorio si así lo requiera una ley, un reglamento, una orden ejecutiva o un contrato gubernamental. Los empleadores y sus reclutadores están vulnerando la INA si implementan las preferencias discriminatorias ilegales de un cliente.

Conforme los términos del acuerdo conciliatorio, Technology Hub pagará una sanción civil que asciende a $12,000 a los Estados Unidos; revisará sus políticas y procedimientos; capacitará a los empleados y agentes relevantes acerca de la disposición antidiscriminatoria de la INA y se someterá a la supervisión durante un período de tres años con el fin de garantizar su cumplimiento.

La Sección de Derechos de Inmigrantes y Empleados de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe la discriminación con base en el estatus migratorio o de ciudadanía o bien por la nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas y represalias e intimidación. El sitio web de la IER tiene información sobre cómo los empleadores pueden evitar la discriminación por motivos de estatus de ciudadanía en la contratación y el reclutamiento. 

Para aprender más sobre la labor de la IER y cómo conseguir ayuda, vea este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1‑800-255-7688; llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1‑800‑237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a IER@usdoj.gov; inscribirse a un seminario en línea gratuito; o visitar la página web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.  

Visualice este comunicado de prensa en inglés.

Reliance Medical Systems LLC, a distributor of spinal implant devices headquartered in Bountiful, Utah, its owners, Bret Berry and Adam Pike, and two of their physician-owned distributorships have agreed to pay $1 million to resolve a lawsuit against them alleging that they violated the False Claims Act by paying physicians to use Reliance medical devices in spinal surgeries on their own patients.  

The Justice Department’s lawsuit alleged that the defendants operated physician-owned distributorships (PODs) that, in reality, were vehicles for the payment of kickbacks to induce physicians to use Reliance’s medical devices in their surgeries. The Anti-Kickback Statute prohibits offering or paying anything of value to encourage the referral of items or services covered by federal health care programs. 

The Justice Department contends that the defendants’ PODs paid physicians based on their referrals, made false statements to health care providers, and terminated physicians who did not refer enough patients. The complaint alleged that Berry and Pike were recorded attempting to induce a spine surgeon to join Kronos Spinal Technologies, one of Reliance’s PODs, by offering to pay him a share of the profits he generated for Kronos after he proved his “loyalty” to Kronos.

“As today’s settlement demonstrates, we will look to the substance, not just the form, of an arrangement to determine whether the payment of remuneration constitutes an illegal kickback,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to redressing the corrupting influence of kickbacks on federal health care programs, regardless of how companies seek to characterize such payments.”

“When health care companies try to boost their profits through kickbacks arrangements, they compromise the integrity of medical decision-making while increasing health care costs for everyone,” said Special Agent in Charge Timothy B. DeFrancesca of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working with our law enforcement partners, our agency is committed to thoroughly investigating such schemes.”

The United States filed this lawsuit in 2014, and this settlement was reached after the first day of trial. The case is captioned United States of America v. Reliance Medical Systems, LLC, et al., No. 14-6979 (C.D. Cal.). 

This settlement is the most recent in a series of settlements with persons affiliated with Reliance Medical Systems. The Civil Division previously recovered over $9.25 million from owners of Reliance PODs.

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

This matter was handled by the Civil Division’s Commercial Litigation Branch (Fraud Section) Attorneys Robert Chandler and David Finkelstein, with assistance from HHS-OIG.

The claims asserted against defendants are allegations only and there has been no determination of liability.

Joseph Smith, 57, formerly of Fishkill, New York, was sentenced to three years and six months in prison, three years of supervised release, and ordered to pay $2,100,450 in restitution by U.S. District Court Judge Gerald J. Pappert for his scheme to defraud prospective franchisees of more than $2.1 million, collectively.

In February 2022, the defendant, the owner of New York Bagel Enterprises Inc., (New York Bagel), which operated in Pennsylvania and other states, pleaded guilty to charges of conspiracy to commit wire fraud and tax evasion in connection with this scheme. According to court documents and statements made in court, Smith and Dennis Mason, charged separately, made numerous misrepresentations to individuals interested in buying a New York Bagel franchise. These misrepresentations included: a guarantee that New York Bagel could get financing for the prospective franchisee, the actual costs to open a franchise, the number of franchises that were already open or opening, and the profitability of existing franchises. The defendant and Mason charged prospective franchisees fees ranging between $7,500 and $44,500 to gain rights to open stores. When some prospective franchisees learned of the misrepresentations and demanded their money back, Smith refused to refund these fees. As a result of the fraud, Smith and New York Bagel sold more than 160 franchises and obtained more than $2.1 million in franchise fees.

From 2014 through 2016, Smith deposited more than $1.3 million franchise fees into New York Bagel bank accounts which he controlled. The defendant spent these funds on personal items unrelated to the business, including rent for his home, travel, car payments for personal vehicles and living expenses. Smith did not file corporate or individual income taxes for these three years or pay the taxes he owed to the IRS.

In addition to the term of imprisonment, Smith was ordered to serve three years of supervised release and pay $2,100,450 in restitution.

Mason previously pleaded guilty to related charges and was sentenced to three years in prison in April 2022.

“While Smith was defrauding investors out of their franchise fees, he also evaded nearly $175,000 in taxes due on that income,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “Business owners who pay the IRS their fair share of taxes deserve to compete on a level playing field. Competitors who cut corners and seek to skirt their legal obligations should know they will be investigated and prosecuted.”

“Individuals seeking to own and operate business franchises are seeking opportunity and financial stability for themselves and their families; they deserve honesty and forthrightness in their business dealings so they can make informed decisions,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “Mr. Smith took advantage of his position to swindle millions of dollars from people seeking legitimate business opportunities, and for that crime he will now spend years in prison.”

“Joseph Smith peddled what looked like a great opportunity to potential franchisees,” said Special Agent in Charge Jacqueline Maguire of the FBI’s Philadelphia Division. “But once they signed on the dotted line, they learned he’d been peddling something else instead. Smith treated their franchise fees like found money. It was a clear-cut case of fraud and this sentence puts him behind bars and provides some justice for his victims. The FBI will always fight to hold crooks like this accountable.”    

“Mr. Smith’s scheme served no purpose other than to mislead and defraud perspective franchisees,” said Special Agent in Charge Yury Kruty of IRS-Criminal Investigation. “Furthermore, he took steps to hide his earnings from IRS, thus shirking his tax liability. The sentence he received is a victory for all Americans who play by the rules.”

The FBI and IRS-Criminal Investigation are investigating the case.

Trial Attorney Eric B. Powers of the Tax Division and Assistant U.S. Attorney David Ignall for the Eastern District of Pennsylvania  are prosecuting the case.

In the following message to all Department of Justice employees today, on the 152nd anniversary of the founding of the Department, Attorney General Merrick B. Garland announced the publication of the Department’s 2022-26 strategic plan:

“The Justice Department was founded exactly 152 years ago, on July 1, 1870. Today, the Department’s urgent mission continues: to uphold the rule of law; to keep our country safe from all threats, foreign and domestic; and to protect civil rights. 

“The Strategic Plan we are issuing today reflects that charge. It organizes the Justice Department’s important responsibilities into five areas of focus that will guide our work in the years to come.

“Our first area of focus is upholding the rule of law, which is the foundation of our democracy. To that end, we will continue to work to uphold the norms and principles that are essential to the fair application of our laws and to the Justice Department’s independence and integrity.

“Our second area of focus is keeping our country safe. The Justice Department will continue to counter both foreign-based and domestic-based threats that endanger our safety and our democracy. These include the threats posed by nation-states, terrorist groups, cyber criminals, and others who seek to undermine our democratic and economic institutions, as well as the threats posed by violent crime, drug-trafficking organizations, and those who target vulnerable populations.

“Our third area of focus is protecting civil rights. We will continue to use every resource at our disposal to reinvigorate civil rights enforcement, including by defending voting rights, deterring and prosecuting hate crimes, advancing environmental justice, and expanding access to justice.

“Our fourth area of focus is ensuring economic opportunity and fairness for all. The Department will continue to strengthen its antitrust and consumer protection efforts; combat fraud, waste, and abuse; and investigate and prosecute corporate crime and the individuals responsible.

“Our final area of focus is administering just court and correctional systems. The Justice Department will continue to work to ensure that our nation’s immigration court system is fairly administered, and that our federal prisons and detention centers are safe, transparent, and effectively managed.

“I encourage you to read this plan, which will guide our efforts across the Department as we continue to fulfill our responsibilities to the American people. 

“I have the utmost confidence in our ability to achieve these goals together, and I continue to be grateful to do this work alongside you.”

The Justice Department announced today that Air France and KLM Airlines (AF/KLM) have agreed to pay $3.9 million to resolve their alleged liability under the False Claims Act for falsely reporting information about the transfer of U.S. mail to foreign posts or other intended recipients under contracts with the U.S. Postal Service (USPS). AF/KLM are international air carriers with headquarters in Paris and Amsterdam, respectively.

“The Department of Justice is committed to ensuring that government contractors provide the services for which they are paid,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When contractors knowingly fail to meet their obligations, we will pursue appropriate remedies to redress the violations and deter future ones.”

USPS contracted with AF/KLM to take possession of receptacles of U.S. mail at six locations in the United States or at various Department of Defense and State Department locations abroad, and then deliver that mail to numerous international and domestic destinations. To obtain payment under the contracts, AF/KLM was required to submit electronic scans of the mail receptacles to USPS reporting the time the mail was delivered at the identified destinations. The contracts specified penalties for mail that was delivered late or to the wrong location. The settlement resolves allegations that scans submitted by AF/KLM falsely reported the time and fact that they transferred possession of the mail. 

“The USPS contracts with commercial airlines for the safeguarding and timely delivery of U.S. mail to foreign posts, including the mail sent to our soldiers deployed to foreign operating bases,” said Executive Special Agent in Charge Ken Cleevely of the USPS, Office of Inspector General (OIG). “The OIG supports the Postal Service by aggressively investigating allegations of contractual non-compliance within the mail delivery process, including the falsification of delivery information. Our special agents worked hand-in-hand with the Department of Justice to help ensure a reasonable resolution and we applaud the exceptional work done by the investigative and legal teams.”

The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, with substantial assistance from the USPS Office of the Inspector General and the USPS Office of General Counsel. Senior Trial Counsel Don Williamson of the Civil Division’s Commercial Litigation Branch, Fraud Section, represented the government in the civil case.

This is the seventh civil settlement involving air carrier liability for false delivery scans under the USPS ICAIR Contracts, and collectively the United States has recovered more than $84 million as a result of its investigation of such misconduct. 

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

A Utah professional tax preparer pleaded guilty today to tax evasion, conspiring to defraud the United States and obstructing the IRS’s efforts to collect his personal tax debt.

According to court documents, Sergio Sosa, of Orem, owned and operated Sergio Centro Latino, a tax return preparation business. From 2004 to the  present, Sosa conspired with his two adult children to defraud the United States by concealing Sosa’s assets and income from the IRS. From 2003 through 2017, Sosa also did not timely file his own tax returns or pay the taxes he owed for these years. After the IRS audited Sosa and began efforts to collect his then pending tax debt of more than $750,000, he obstructed those efforts by using nominees to open corporate bank accounts, renaming his business and placing it in the names of his children, and making false statements to the IRS. Sosa also directed his daughter to make mortgage payments on his personal residence using funds he provided to her. In total, Sosa caused a tax loss to the IRS exceeding $1.1 million.

Sosa is scheduled to be sentenced on Sept. 19 and faces a maximum penalty of five years in prison for tax evasion, five years in prison for conspiring to defraud the United States and three years in prison for obstructing the IRS. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

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

IRS-Criminal Investigation is investigating the case.

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

Two individuals have pleaded guilty to an international telemarketing sweepstakes fraud scheme that defrauded numerous elderly and vulnerable victims in the United States of more than $9 million.

According to court documents, Maurice Levy, 51, and Derrick Levy, 54, both of Jamaica, admitted that between July 2008 and September 2016, they worked in call centers in Costa Rica that defrauded victims in the United States. Derrick Levy and Maurice Levy admitted that they concealed their physical location using Voice-over-IP technology, which enabled them to give victims telephone numbers that, although bearing U.S. area codes, were actually answered at the call centers in Costa Rica. Maurice Levy and Derrick Levy further admitted that they would call individuals in the United States, many of whom were elderly and vulnerable, and falsely claim that the individuals had won a sweepstakes prize but were required to pay fees prior to the delivery of the prize. In truth, no such prize existed. Once a victim made an initial payment for the purported fees, Maurice Levy, Derrick Levy, and their co-conspirators would continue to call the victim, falsely representing that a mistake had been made and that the victim had actually won a prize of a greater amount, or an issue had occurred, and the victim needed to pay additional fees to claim the prize. Many victims sent tens of thousands of dollars to Maurice Levy, Derrick Levy, and their co-conspirators in response to these calls. During the scheme, Derrick Levy and Maurice Levy fraudulently obtained more than $9,400,000 from victims, which was used to continue operating the call centers and for the co-conspirators’ personal benefit.

Maurice Levy pleaded guilty yesterday to conspiracy to commit wire fraud and will be sentenced at a future date. Derrick Levy pleaded guilty on Jan. 25 to conspiracy to commit wire fraud and will be sentenced on Sept. 28. They each face at least up to 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Dena J. King of the U.S. Attorney’s Office for the Western District of North Carolina; Inspector in Charge Tommy Coke of the U.S. Postal Inspection Service’s Atlanta Division; Special Agent in Charge Donald “Trey” Eakins of IRS Criminal Investigation’s (IRS-CI) Charlotte Field Office; and Special Agent in Charge Robert R. Wells of the FBI’s Charlotte Field Office made the announcement.

This case was investigated by the U.S. Postal Inspection Service, IRS-CI, and the FBI, with assistance from the Federal Trade Commission, Homeland Security Investigations, and the U.S. Department of State’s Diplomatic Security Service. The Justice Department’s Office of International Affairs and Costa Rican authorities also provided assistance.

Trial Attorney Jason M. Covert of the Criminal Division’s Fraud Section is prosecuting the case. 

The Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing Victimassistance.fraud@usdoj.gov. To learn more about victims’ rights, please visit: https://www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas. If you believe you are a victim of the conduct described in the plea agreements and informations, please visit https://www.justice.gov/criminal-vns/case/united-states-v-levy-et-al.  

The Justice Department announced today that MorseLife Health System Inc. (MorseLife) has agreed to pay the United States $1.75 million to resolve its potential liability under the False Claims Act for facilitating COVID-19 vaccinations for hundreds of individuals ineligible to participate in the Centers for Disease Control and Prevention’s (CDC) Pharmacy Partnership for Long-Term Care Program (LTC PPP), a program specifically designed to vaccinate long-term care facility (LTCF) residents and staff when doses of COVID-19 vaccine were in limited supply at the beginning of the CDC COVID-19 Vaccination Program. MorseLife is a not-for-profit corporation located in West Palm Beach, Florida, that oversees health care facilities on its campus, including a nursing home and an assisted living facility.

“This specific vaccination program was designed to protect some of the nation’s most vulnerable individuals at a critical time when the COVID-19 pandemic was devastating that population,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will hold accountable those who misused vital pandemic relief programs for their own financial gain.”  

“The settlement today exemplifies my office and its law enforcement partners’ strong commitment to combatting all forms of health care fraud-related schemes, especially those that exploit government resources designed to assist individuals who were acutely affected by the COVID-19 global pandemic,” said U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “We will not relent in holding accountable those in South Florida who exploit health care programs intended to assist vulnerable populations during the COVID-19 pandemic.” 

“It is disturbing to see initiatives designed to provide protections against COVID-19, for individuals who critically need them, manipulated in this way,” said Special Agent in Charge Omar Pérez Aybar of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Miami Region. “Our agency, working closely with our law enforcement partners, will continue to vigorously investigate those believed to illegally divert resources from federal pandemic-related health programs.”

The CDC announced the launch of the LTC PPP in October 2020. Because the LTCF population was at the highest risk of COVID-19 infections, the CDC created the LTC PPP to prioritize vaccinations of that population as quickly as possible and while vaccine availability was limited. Under this program, the CDC engaged with pharmacy partners to provide “end to end” management of the COVID-19 vaccination process, including conducting on-site vaccination clinics at the nursing homes and other LTCFs. Over 8 million vaccine doses were administered to LTCF residents and staff through this program.

MorseLife enrolled in the LTC PPP and scheduled its first vaccination clinic at MorseLife on Dec. 31, 2020 (the vaccination clinic) for residents and staff of the Joseph L. Morse Health Center, a skilled nursing facility on MorseLife’s campus. The settlement resolves allegations that MorseLife knew that the LTC PPP covered only LTCF residents and staff, but nevertheless invited and facilitated the vaccination of hundreds of ineligible persons at the clinic by characterizing them as “staff” and “volunteers,” many of whom MorseLife targeted for donations. Specifically, the United States alleged that MorseLife (1) characterized board members as “staff,” (2) directed the organization’s fundraising arm to invite donors and potential donors to the vaccination clinic, and (3) allowed the Vice Chairman of the MorseLife Health Systems Inc. Board and his brother to invite close to 300 ineligible individuals to receive the vaccine at MorseLife. 

First, MorseLife allegedly invited members of MorseLife’s various boards of directors to the vaccination clinic and characterized them as “staff.” The vast majority of these individuals were donors to MorseLife. In addition to actual board members, MorseLife invited emeritus board members, as well as board members’ spouses, children, family members and friends to the vaccination clinic. In one instance, MorseLife’s CEO sent a text message to an ineligible individual stating, “I will find you when you come in the morning and we’re going to make you an employee of Morse . . . Guarantee you get the vaccine.” In all, MorseLife facilitated the vaccination of 128 ineligible board members, and their family and friends (along with the other ineligible persons described below).   

Second, MorseLife’s CEO allegedly directed the MorseLife Foundation, the organization’s fundraising arm, to invite donors and potential donors to the vaccination clinic, encouraging Foundation employees to take advantage of the vaccination opportunity to target billionaires and millionaires for donations. For example, in one text message MorseLife’s CEO stated: “Of course go after the billionaires first hell we’re taking care of their life what the hell do you think you little boys and girls in the foundation go for the 25,000 I’ll go for the billions; I’m a little disappointed in the foundations mentality; I have delivered you 350 of the richest people in the country and you’re still thinking $25,000 gift . . . . Do not be weak be strong you have the opportunity to take advantage of everyone who needs the shot and figure out what they have and what we can go after and what their affinity [sic] as that’s what I would do [sic] I was running the foundation.”

Third, MorseLife’s CEO allegedly allowed the Vice Chairman of the MorseLife Health Systems Inc. Board and his brother to invite approximately 290 people to the vaccination clinic, none of whom lived or worked on the MorseLife campus and most of whom did not volunteer on MorseLife’s campus and had no prior affiliation with MorseLife. A significant number of these invitees were members of the same country club as the Vice Chairman and his brother, and some of the invitees flew to Florida just to get vaccinated at the clinic. As reflected in a MorseLife Foundation strategy document, “[t]his group was ‘recruited’ by [Vice Chairman and his brother] and owe allegiance to them at least as much as they owe it to us;” “[w]e allowed these people to be vaccinated mostly because [Vice Chairman and his brother] wanted us to;” “[t]hese prospects understand that and owe allegiance to [Vice Chairman and his brother] for arranging for them to get the vaccine;” and [w]e should use that allegiance to effectively get significant gifts from that group in a short amount of time.” The United States alleged that MorseLife falsely characterized donors and potential donors who had no previous affiliation with MorseLife, but were invited by the Foundation or the Vice Chairman and his brother, as “volunteers” for purposes of the LTC PPP.

Ultimately, the United States alleged that of 976 persons vaccinated at the Dec. 31, 2020, clinic, 567, or more than half, were ineligible to participate in the LTC PPP.   

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 Southern District of Florida, with substantial assistance from HHS-OIG, the FBI and the CDC. This matter was handled by Civil Division Fraud Section Attorneys Andy Mao, Natalie A. Waites, Elizabeth J. Kappakas and Jessica Sievert, and Assistant U.S. Attorney Rosaline Chan for the Southern District of Florida.  

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

Anyone with information about allegations of fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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

The Department of Justice is pleased to announce the opening of the application period for federally recognized Tribes and intertribal consortia to participate in the Tribal Access Program (TAP) for National Crime Information, which provides federally recognized Tribes the ability to access and exchange data with national crime information databases for authorized criminal justice and non-criminal justice purposes.

“The Tribal Access Program (TAP) is a proven and powerful tool for Tribal police officers, government and court officials to investigate crimes, keep children safe and hold domestic violence offenders accountable, among other important uses,” said Deputy Attorney General Lisa Monaco. “As TAP continues to expand, more Tribes will be able to protect their communities by participating in this successful program.”

The program provides training as well as software and biometric/biographic kiosk workstations to process fingerprints, take mugshots and submit information to FBI Criminal Justice Information Services (CJIS) systems. There are currently 108 federally recognized Tribes participating in TAP. The department will accept TAP applications from July 1 – Aug. 31. Tribes selected to participate will be notified in September.

“The Tribal Access Program has allowed our Tribe to more effectively serve and protect its citizens by being able to prevent individuals from illegally purchasing firearms, and ensuring its personal protection orders are entered into federal databases, making their existence known, not only in Indian country, but across the nation,” said Court Administrator/Magistrate Traci L. Swan  of the Sault Ste. Marie Tribe of Chippewa Indians.  “Obtaining fingerprint-based checks… has allowed our Tribe to expedite placement of our children in safe foster care homes.”

For Tribes that are considering applying, TAP staff will be conducting informational webinars describing the program and its capabilities. Webinars will be offered throughout the month of July and August. For more information about TAP, including our webinar dates, times and access information, visit www.justice.gov/tribal/tribal-access-program-tap.

Using TAP, Tribes have shared information about missing persons; entered domestic violence orders of protection for nationwide enforcement; registered convicted sex offenders; run criminal histories; arrested fugitives; entered bookings and convictions; and completed fingerprint-based record checks for non-criminal justice purposes such as screening employees or volunteers who work with children.

“Prior to receiving the system our community had no direct access to the services the TAP program provides,” said Chief of Police Bruce R. Janes for The Metlakatla Indian Community. “Being the only reservation in Alaska and a remote community on an island the TAP program has provided independence for our community and Police Department giving us the ability [to] be self-sufficient with the vast programs available with TAP.”

The department offers TAP services through one of the following two methods:

• TAP-LIGHT: Provides software that enables full access (both query and entry capabilities) to national crime information databases including the National Crime Information Center (NCIC), the Interstate Identification Index (III), and the International Justice and Public Safety Network (Nlets) for criminal justice purposes.
• TAP-FULL: In addition to the basic access capabilities of TAP-LIGHT, provides a kiosk workstation that enables the ability to submit and query fingerprint-based transactions via FBI’s Next Generation Identification (NGI) system for both criminal justice and non-criminal justice purposes.

Because of the program’s funding sources, eligible Tribes must have — and agree to use TAP for — at least one of the following:

• A Tribal sex offender registry authorized by the Adam Walsh Child Protection and Safety Act;
• A Tribal law enforcement agency that has arrest powers;
• A Tribal court that issues orders of protection; or
• A Tribal government agency that screens individuals for foster care placement or that investigates allegations of child abuse/neglect.

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

The Department of Justice announced today six new sites selected to participate in the Firearms Technical Assistance Project (FTAP) expansion as part of the Department’s ongoing effort to reduce violent crime and help communities across the country reduce domestic violence homicides and injuries committed with firearms. The six new FTAP sites are: the City of Tucson, Arizona; the Georgia Department of Community Supervision; the City of Detroit, Michigan; the Young Women’s Christian Association (YWCA) of Knoxville and the Tennessee Valley in Tennessee; the City of Austin, Texas; and the City of Yakima, Washington. The six sites announced today join six existing FTAP sites, which include: Birmingham, Alabama; Muscogee (Creek) Nation; Columbus, Ohio; Brooklyn, New York; the State of Vermont; and Spokane, Washington.

In addition, the Office on Violence Against Women (OVW) will award $750,000 to fund the National Resource Center on Domestic Violence and Firearms, which supports all levels of government in comprehensive implementation and enforcement of domestic violence firearm prohibitions. OVW has awarded a total of $5.99 million to the 12 FTAP sites, which help communities nationwide reduce domestic violence homicides and injuries committed with firearms.

“At the Justice Department, our anti-violent crime strategy is centered on our partnerships with communities across the country and the law enforcement agencies that protect those communities every day,” said Attorney General Merrick B. Garland. “Our Firearms Technical Assistance Project focuses on the intersection of gun violence and domestic violence at the community level through specialized training for our law enforcement partners and enhanced support services for the survivors of domestic violence.”

“We cannot end domestic violence homicides without crafting strategies that meet the unique needs on the ground in communities, including centering those who have been historically marginalized,” said OVW Acting Director Allison Randall. “This is why it is critical that FTAP sites work with underserved communities to implement firearm prohibition strategies that reflect their needs. OVW’s Firearms Technical Assistance Project keeps survivors and communities safe by using a holistic, culturally specific approach to firearm relinquishment – addressing the critical and often lethal nexus of firearms and domestic violence.”

FTAP supports the Justice Department’s comprehensive strategy for reducing violent crime and was included in the White House’s Fact Sheet on Highlights from the Biden Administration’s Historic Efforts to Reduce Gun Violence. Under federal law, individuals with domestic violence misdemeanor and felony convictions, as well as individuals subject to domestic violence protective orders, are prohibited from possessing firearms. The data shows that offenders with domestic violence in their past pose a high risk of homicide. In fact, domestic violence abusers with a gun in the home are five times more likely to kill their partners, and in addition to their lethality, firearms are used by abusers to inflict fear, intimidation, and coercive control.

The new FTAP sites will receive direct financial support, ranging from $499,212 to $500,000, as well as technical assistance designed to help each site implement best practices for preventing the use of firearms in domestic violence and incorporate community partners, particularly partner organizations that center underserved populations, into their efforts to implement effective responses to firearms and domestic violence. In 2019, OVW and the National Council of Juvenile and Family Court Judges launched FTAP to help communities implement policies, protocols, and promising practices to prevent abusers from having access to firearms in domestic violence cases. The National Resource Center on Domestic Violence and Firearms is operated by the Battered Women’s Justice Project through OVW funding, and includes a model firearms relinquishment protocol, strategies for communities and spotlights on successful approaches, among other resources.

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.

The Department of Justice, together with federal law enforcement partners, today announced criminal charges against six defendants in four separate cases for their alleged involvement in cryptocurrency-related fraud, including the largest known Non-Fungible Token (NFT) scheme charged to date, a fraudulent investment fund that purportedly traded on cryptocurrency exchanges, a global Ponzi scheme involving the sale of unregistered crypto securities, and a fraudulent initial coin offering.  

“The Department of Justice and our partners are dedicated to using every available tool to protect consumers and investors from fraud and manipulation,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “These indictments reflect our deep commitment to prosecuting individuals involved in cryptocurrency fraud and market manipulation.”

“Our office is committed to protecting investors from sophisticated scammers seeking to capitalize on the relative novelty of digital currency,” said U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “As with any emerging technology, those who invest in cryptocurrency must beware of profit-making opportunities that appear too good to be true.”

“These cases serve as a crucial reminder that some con artists hide behind trendy buzzwords, but at the end of the day they are simply seeking to separate people from their money,” said U.S. Attorney Tracy L. Wilkison for the Central District of California. “We will continue to work with our law enforcement partners to educate and protect potential investors about both traditional and trendy investments.”

“As cryptocurrency marketplaces advance and offer new opportunities for consumers, criminals also seek ways to exploit them,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI, alongside our law enforcement partners, will continue to investigate and bring those criminals to justice, and to protect the American people.” 

“This investigation and prosecution exemplifies the importance of public-private partnerships,” said Executive Associate Director Steve K. Francis of Homeland Security Investigations (HSI). “As a result of our strong relationships with industry partners, HSI received information leading to this investigation and ultimate indictment. HSI will continue to investigate criminal organizations operating in emerging technologies and are proud to have worked with the Department of Justice Fraud Section to put an end to this criminal activity.”

The following charges are announced today as a part of this national enforcement action.

Crypto NFT Scheme:

United States v. Le Ahn Tuan:

Le Anh Tuan, 26, a Vietnamese national, was charged with one count of conspiracy to commit wire fraud and one count of conspiracy to commit international money laundering in the Central District of California in connection with a scheme involving the “Baller Ape” NFT. As alleged in the indictment, Tuan was involved in the Baller Ape Club, an NFT investment project that purportedly sold NFTs in the form of various cartoon figures, often including the figure of an ape. According to the indictment, shortly after the first day Baller Ape Club NFTs were publicly sold, Tuan and his co-conspirators engaged in what is known as a “rug pull,” ending the purported investment project, deleting its website, and stealing the investors’ money. Based on blockchain analytics, shortly after the rug pull, Tuan and his co-conspirators laundered investors’ funds through “chain-hopping,” a form of money laundering in which one type of coin is converted to another type and funds are moved across multiple cryptocurrency blockchains, and used decentralized cryptocurrency swap services to obscure the trail of Baller Ape investors’ stolen funds. In total, Tuan and his co-conspirators obtained approximately $2.6 million from investors. If convicted of all counts, Tuan faces up to 40 years in prison. HSI is investigating the case. Fraud Section Trial Attorneys Kevin Lowell and Tian Huang are prosecuting the case. 

Crypto Ponzi and Unregistered Securities Scheme:

United States v. Emerson Pires, Flavio Goncalves, and Joshua David Nicholas:

Emerson Pires, 33, and Flavio Goncalves, 33, both of Brazil, and Joshua David Nicholas, 28, of Stuart, Florida, were each charged in the Southern District of Florida with one count of conspiracy to commit wire fraud and one count of conspiracy to commit securities fraud in connection with a global cryptocurrency-based Ponzi scheme that generated approximately $100 million from investors. Pires and Goncalves also were charged with conspiracy to commit international money laundering. The indictment alleges that Pires and Goncalves, both founders of EmpiresX, along with Nicholas, the so-called “Head Trader” for EmpiresX, fraudulently promoted EmpiresX, a cryptocurrency investment platform and unregistered securities offering, by making numerous misrepresentations regarding, among other things, a purported proprietary trading bot and fraudulently guaranteeing returns to investors and prospective investors in EmpiresX. As alleged in the indictment, blockchain analytics shows that Pires and Goncalves then laundered investors’ funds through a foreign-based cryptocurrency exchange and operated a Ponzi scheme by paying earlier investors with money obtained from later EmpiresX investors. If convicted of all counts, Pires and Goncalves face up to 45 years in prison and Nicholas faces up to 25 years in prison. FBI and HSI are investigating the case. Fraud Section Trial Attorneys Kevin Lowell and Sara Hallmark and Assistant U.S. Attorney Yisel Valdes of the U.S. Attorney’s Office for the Southern District of Florida are prosecuting the case.

Crypto Initial Coin Offering Scheme:

United States v. Michael Alan Stollery:

Michael Alan Stollery, 54, of Reseda, California, was the CEO and founder of Titanium Blockchain Infrastructure Services (TBIS), a purported cryptocurrency investment platform. Stollery was charged in an information filed in the Central District of California with one count of securities fraud for his role in a cryptocurrency fraud scheme involving TBIS’s initial coin offering, which raised approximately $21 million from investors in the United States and overseas. As alleged, in order to lure investors, Stollery falsified TBIS white papers (a document for prospective investors that typically explains how the technology underlying the cryptocurrency works and the purpose of the cryptocurrency project), planted fake testimonials on TBIS’s website, and fabricated purported business relationships with the U.S. Federal Reserve Board and dozens of prominent companies, including Apple Inc., Pfizer Inc., and The Walt Disney Company, to create the appearance of legitimacy. If convicted of all counts, Stollery faces up to 20 years in prison. The FBI and the Federal Reserve Board’s Western Region San Francisco Office are investigating the case. Fraud Section Trial Attorneys Kevin Lowell, Tian Huang, and Andrew Tyler are prosecuting the case.

“Those who fraudulently misrepresent their relationship with the Federal Reserve to deceive the public in cryptocurrency or other fraud schemes will be held accountable and brought to justice,” said Acting Special Agent in Charge Cory Nootnagel of the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection, Western Region. “I commend our agents, their federal law enforcement partners, and the Justice Department’s Criminal Division’s Fraud Section for their hard work and persistence.”

Crypto Commodities Scheme:  

United States v. David Saffron:

David Saffron, 49, of Las Vegas, Nevada, was the owner of Circle Society, a cryptocurrency investment platform. Saffron used Circle Society to solicit investors to participate in an unregistered commodity pool, which is a fund that combines investors’ contributions to trade on the futures and commodity markets. Saffron was charged in the Central District of California with one count of conspiracy to commit wire fraud, four counts of wire fraud, one count of conspiracy to commit commodities fraud, and one count of obstruction of justice. As alleged in the indictment, Saffron falsely represented to investors that he traded investors’ funds to earn profits using a trading bot that could execute over 17,000 transactions per hour on various cryptocurrency exchanges. Saffron falsely represented that his trading bot would generate between 500% to 600% returns on the amount invested. To entice investors to invest, Saffron allegedly led investor meetings at luxury homes in the Hollywood Hills and elsewhere, and traveled with a team of armed security guards in order to create the false appearance of wealth and success. In total, Saffron fraudulently raised approximately $12 million from investors. If convicted of all counts, Saffron faces up to 115 years in prison. IRS Criminal Investigation (IRS-CI) is investigating the case. Fraud Section Trial Attorneys Kevin Lowell and Theodore Kneller, and Assistant U.S. Attorney James Hughes of the U.S. Attorney’s Office for the Central District of California are prosecuting the case.

“Mr. Saffron preyed on investor interest in cryptocurrency by enticing victims with fake technology and false promises of guaranteed returns,” said Special Agent in Charge Ryan L. Korner of the IRS-CI’s Los Angeles Field Office. “In reality, Mr. Saffron was operating an illegal Ponzi scheme to defraud victim investors and used the funds for his own personal benefit. IRS-CI will pursue and root out these schemes to protect investors, preserve our commodity markets, and bring financial fraudsters to justice.”

Crypto Fraud Victims:

All investor victims of the Baller Ape Club, EmpiresX, TBIS, and Circle Society schemes are encouraged to visit the webpage https://www.justice.gov/criminal-vns/crypto-enforcement to identify themselves as potential victims and obtain more information on their rights as victims, including the ability to submit a victim impact statement.

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 Florence, South Carolina returned a 10-count indictment alleging charges related to wildlife trafficking and money laundering against five individuals:

• Bhagavan Mahamayavi Antle, aka Kevin Antle, aka Doc Antle, 62, of Myrtle Beach;
• Andrew Jon Sawyer aka Omar Sawyer, 52, of Myrtle Beach;
• Meredith Bybee, aka Moksha Bybee, 51, of Myrtle Beach;
• Charles Sammut, 61, of Salinas, California; and
• Jason Clay, 42, of Franklin, Texas.

According to the indictment and other court records, Antle is the owner and operator of The Institute for Greatly Endangered and Rare Species (T.I.G.E.R.S.), also known as the Myrtle Beach Safari. The Myrtle Beach Safari is a 50-acre wildlife tropical preserve in Myrtle Beach. Sawyer and Bybee are Antle’s employees and business associates.

Sammut is the owner and operator of Vision Quest Ranch, a for-profit corporation that housed captive exotic species and sold tours and safari experiences to guests. Clay is the owner and operator of the Franklin Drive Thru Safari, a for-profit corporation that housed captive exotic species and sold tours and safari experiences to guests.

The indictment alleges that Antle, at various times along with Bybee, Sammut and Clay, illegally trafficked wildlife in violation of federal law, including the Lacey Act and the Endangered Species Act, and made false records regarding that wildlife. The animals involved included lemurs, cheetahs and a chimpanzee.

The indictment and a previously-filed federal complaint in the case also allege that over the last several months, Antle and Sawyer laundered more than $500,000 in cash they believed to be the proceeds of an operation to smuggle illegal immigrants across the Mexican border into the United States. The filings allege that Antle had used bulk cash receipts to purchase animals for which he could not use checks, and that Antle planned to conceal the cash he received by inflating tourist numbers at the Myrtle Beach Safari.

Antle and Sawyer each face a maximum of 20 years in federal prison for the charges related to money laundering, and up to five years in federal prison for the charges related to wildlife trafficking. Bybee, Sammut and Clay each face up to five years in federal prison for the charges related to the wildlife trafficking. Antle and Sawyer were previously granted a bond by a federal magistrate judge as a result of the charges in the federal complaint, and Bybee, Sammut and Clay are pending arraignment.

The case was investigated by the FBI and the U.S. Fish and Wildlife Service. The prosecutors on the case are Assistant U.S. Attorneys Derek A. Shoemake and Amy Bower for the District of South Carolina and Senior Trial Attorney Patrick M. Duggan of the Justice Department’s Environment and Natural Resources Division, Environmental Crimes Section.

An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty.

The Justice Department announced today that Delta Airlines Inc. (Delta) has agreed to pay $10.5 million to resolve its alleged liability under the False Claims Act for falsely reporting information about the transfer of U.S. mail to foreign posts or other intended recipients under contracts with the U.S. Postal Service (USPS). Delta is an international air carrier incorporated in Delaware with headquarters in Atlanta, Georgia.

“The United States expects the air carriers with which the USPS contracts to accurately report the services they provide,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The resolution announced today reflects the department’s commitment to pursuing contractors that do not meet their contractual obligations to the United States and misrepresent their failure to perform.”

USPS contracted with Delta to take possession of receptacles of U.S. mail at six locations in the United States or at various Department of Defense and State Department locations abroad, and then deliver that mail to numerous international and domestic destinations. To obtain payment under the contracts, Delta was required to submit electronic scans of the mail receptacles to USPS reporting the time the mail was delivered at the identified destinations. The contracts specified penalties for mail that was delivered late or to the wrong location. The settlement resolves allegations that scans submitted by Delta falsely reported the time and fact that it transferred possession of the mail. 

“The USPS contracts with commercial airlines for the safeguarding and timely delivery of U.S. mail to foreign posts, including the mail sent to our soldiers deployed to foreign operating bases,” said Executive Special Agent in Charge Ken Cleevely of USPS, Office of Inspector General (OIG). “The OIG supports the Postal Service by aggressively investigating allegations of contractual non-compliance within the mail delivery process, including the falsification of delivery information. Our special agents worked hand-in-hand with the Department of Justice to help ensure a reasonable resolution and we applaud the exceptional work done by the investigative and legal teams.”

The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, with substantial assistance from the USPS OIG and the USPS Office of General Counsel. Senior Trial Counsel Don Williamson of the Civil Division’s Commercial Litigation Branch, Fraud Section, represented the government in the civil case. This is the sixth civil settlement involving air carrier liability for false delivery scans under the USPS ICAIR Contracts, and collectively the United States has recovered more than $80 million as a result of its investigation of such misconduct. 

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

Yesterday, a federal jury in San Antonio, Texas, convicted the owner of several companies in the construction industry for his role in a long-running scheme to defraud the United States.

According to court documents and evidence presented at trial, Michael Angelo Padron, along with co-conspirators Michael Wibracht and Ruben Villarreal, conspired to defraud the United States to obtain valuable government contracts under programs administered by the Small Business Administration (SBA). The evidence showed that Padron conspired to install Villarreal, a service-disabled veteran, as the ostensible owner of a general construction company held out as a Service-Disabled Veteran-Owned Small Business (SDVOSB). Padron, along with his co-conspirator and business partner Wibracht, exercised disqualifying financial and operational control over the construction company. According to court documents, the conspirators concealed that control in order to secure over $240 million in government contracts that were set aside for SDVOSBs in order to benefit their larger, nonqualifying businesses.

“Yesterday’s verdict is a victory for the rule of law,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “The Antitrust Division and its Procurement Collusion Strike Force welcome this decisive outcome, which protects service-disabled veterans from cheaters and schemers.”

“Using any SBA program fraudulently undermines the spirit and true intent of bolstering the backbone of the nation’s economy — small businesses,” said Special Agent in Charge Sharon Johnson of the SBA Office of Inspector General (SBA-OIG), Central Region. “OIG continues to relentlessly root out and protect the integrity of all SBA’s programs. I want to thank the Antitrust Division and our law enforcement partners for their dedication and pursuit of justice.”

“Yesterday’s verdict is a testament to the tenacity of Army CID’s special agents to detect and investigate those who attempt to defraud our military,” said Special Agent in Charge L. Scott Moreland of the U.S. Army Criminal Investigation Division’s (CID) Major Procurement Fraud Field Office.

“Federal agencies rely on the accuracy and validity of the information contained in GSA’s System for Award Management to make sound contracting decisions,” said Special Agent in Charge Jamie Willemin of the General Services Administration Office of Inspector General (GSA-OIG), Southwest and Rocky Mountain Division. “We will continue to work with our investigative partners to hold accountable those who fraudulently obtain government contracts by providing false information in the system.”

“Fraudulently obtaining multimillion-dollar government contracts from a program designed to benefit service-disabled veterans is reprehensible,” said Special Agent in Charge Jeffrey Breen of the Department of Veterans Affairs Office of Inspector General’s (VA-OIG) South Central Field Office. “Yesterday’s guilty verdict sends a clear message that the VA-OIG will work diligently to hold those who would do so accountable. The VA-OIG thanks the Department of Justice Antitrust Division and our law enforcement partners for their efforts in this case.”

“This case 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 undermine the integrity of government-sponsored small business initiatives,” said Special Agent in Charge Michael Mentavlos of the DCIS Southwest Field Office. “Individuals who engage in activity that deprive legitimate program participants of valuable economic opportunities will be thoroughly investigated and held accountable.”

Padron was convicted of conspiracy to defraud the United States and six counts of wire fraud. He is scheduled to be sentenced on Oct. 19, and faces a maximum penalty of five years in prison and a $250,000 fine for the conspiracy count, and a maximum penalty of 20 years in prison and a $250,000 fine for each wire fraud count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

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

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

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

One week from today, on Thursday, July 7, Attorney General Merrick B. Garland will undergo a routine surgical procedure.

The Attorney General has been diagnosed with benign enlargement of the prostate or benign prostatic hyperplasia (BPH). BPH is the “the most common prostate problem for men older than age 50,” according to the National Institutes of Health (NIH). It affects approximately half of men between the ages of 51 and 60 and up to 90 percent of men older than 80, according to NIH.

To treat BPH, Attorney General Garland will undergo transurethral resection of the prostate (TURP), a medical procedure to remove enlarged prostate tissue. The surgery typically lasts less than one hour and requires general anesthesia. During the procedure, the Deputy Attorney General will assume the duties of the Attorney General.

As is customary following this type of surgery, Attorney General Garland will remain at the hospital for one to two days for observation and monitoring. He expects to return to the office the week of July 11.

A Florida woman was sentenced today to 30 months in prison for a scheme to solicit and receive illegal kickbacks and bribes in exchange for referring residents of her sober home to a substance abuse treatment center, which billed insurance companies $4.5 million for medically unnecessary drug testing and purported substance abuse treatment provided to those residents.

According to court documents, Marthe Hippolyte, 59, of Wellington, owned Turning Point Sober Home Inc. and a related marketing company, through which she operated several sober living residences in Florida to house individuals in a drug- and alcohol-free environment while they received treatment at substance abuse treatment centers. Hippolyte accepted approximately $254,000 in kickbacks and bribes, often disguised as management fees, from Kenneth Chatman, the operator of Reflections Treatment Center (RTC), a treatment center that purported to operate as a licensed substance abuse treatment center. In exchange for the kickbacks and bribes, Hippolyte helped bring in patients from outside Florida who could be referred to RTC and required residents of Turning Point’s sober homes to travel to RTC several times per week to attend purported substance abuse treatment sessions and submit to urine drug testing. For the residents referred to RTC by Hippolyte, Chatman and others billed private insurers $4.5 million for substance abuse and bodily fluid testing that was medically unnecessary, not reimbursable, and not provided as represented.

Hippolyte pleaded guilty on Jan. 25, to one count of conspiracy to violate the Travel Act. Chatman pleaded guilty in 2017 to conspiracy to commit health care fraud, money laundering, and conspiracy to commit sex trafficking, and was sentenced to 330 months imprisonment.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.

This case was investigated by the Greater Palm Beach Health Care Fraud Task Force. Agencies of the task force include the FBI; IRS-Criminal Investigation; Palm Beach County State Attorney’s Office, Florida Department of Financial Services, Division of Investigative & Forensic Services; Amtrak Office of Inspector General; and Department of Labor-Employee Benefits Security Administration.

Trial Attorney Gary A. Winters of the Fraud Section’s National Rapid Response Strike Force is prosecuting the case.

The Russian Elites, Proxies, and Oligarchs (REPO) Task Force has leveraged extensive multilateral coordination to block or freeze more than $30 billion worth of sanctioned Russians’ assets, freeze or seize sanctioned persons’ high-value goods, and heavily restrict sanctioned Russians’ access to the international financial system. REPO members have achieved these successes through close and extensive national and international coordination and collaboration. 

In the 100 days since the Finance, Justice, Home Affairs, and Trade Ministers and European Commissioners committed to prioritizing resources and working together to isolate sanctioned Russians from the international financial system, REPO members have:

• Blocked or frozen more than $30 billion worth of sanctioned Russians’ assets in financial accounts and economic resources.
• Immobilized about $300 billion worth of Russian Central Bank assets.
• Seized, frozen, or detained yachts and other vessels owned, held, or controlled by sanctioned Russians, including the Amadea, the Tango, the Amore Vero, the Rahil, and the Phi.
• Seized or frozen luxury real estate owned, held, or controlled by sanctioned Russians.
• Restricted Russia’s access to the global financial system, making it more difficult for Russia to procure technology necessary to sustain its unjust war in Ukraine.

Where appropriate and possible, REPO members are undertaking efforts to update or expand and implement their respective legal frameworks that enable the freezing, seizure, forfeiture and/or disposal of assets, for example within criminal law. These efforts better position members to achieve REPO’s objectives.

REPO is working collaboratively with the private sector to promote effective sanctions implementation. Financial institutions and other entities required to comply with both sanctions and anti-money laundering/countering the financing of terrorism regulations have helped to identify and immobilize assets subject to sanctions and worked to prevent Russia from evading sanctions. Where available, REPO members have relied on the use of registries, such as bank account and beneficial ownership registries. In addition, REPO members deeply appreciate the cooperation that countries outside the REPO Task Force have provided.

REPO’s work is not yet complete. In the coming months, REPO members will continue to track Russian sanctioned assets and prevent sanctioned Russians from undermining the measures that REPO members have jointly imposed. Together, we will ensure that our sanctions continue to impose costs on Russia for its unprovoked and continuing aggression in Ukraine and to prevent funds and economic resources from being provided to or for the benefit of designated persons. As we undertake this work, we are seeking to maximize the impact of sanctions on designated persons and entities while guarding against spillover that affects global commodities markets and food supplies, which Russia has disrupted by choosing and continuing to wage war.

As we undertake REPO’s work, we underscore our shared commitment to our determined and coordinated sanctions response to Russia's war of aggression and to carry on with our efforts in ever closer cooperation, including with the European Commission’s Freeze and Seize Task Force. We continue to increase Russia’s cost of its war. We remain committed to fully implementing and enforcing our economic and financial sanctions and remain vigilant against sanctions evasion and circumvention.

A Nevada man was arrested today in Los Angeles for an alleged investment fraud scheme that defrauded more than 10,000 victims of over $45 million. A federal grand jury in the District of Nebraska previously returned an indictment on June 14 charging the man, which was unsealed today in Omaha.

According to the indictment, Neil Chandran, 50, of Las Vegas, owned a group of technology companies that he used in a scheme to defraud investors by falsely promising extremely high returns on the premise that one or more of his companies, operated under the banner of “ViRSE,” was about to be acquired by a consortium of wealthy buyers. Chandran’s companies — which included Free Vi Lab, Studio Vi Inc., ViDelivery Inc., ViMarket Inc., and Skalex USA Inc., among others — developed virtual-world technologies, including their own cryptocurrency, for use in the companies’ own metaverse. The indictment alleges that Chandran caused other individuals to make various materially false and misleading representations to investors, including that (a) investors in Chandran’s companies would soon receive extremely high returns when one or more of those companies was purchased by a group of wealthy buyers, (b) investor funds would be used for normal expenses to keep the companies operating until they were purchased, and (c) prominent business figures, including two billionaires, were involved in the purchase. In fact, according to the indictment, there was no such buyer group that was about to purchase the companies for the claimed returns; a substantial portion of the funds were misappropriated for other business ventures and the personal benefit of Chandran and others, including the purchase of luxury cars and real estate; and there were no prominent billionaires involved in purchasing Chandran’s companies.

Chandran is charged with three counts of wire fraud and two counts of engaging in monetary transactions in criminally derived property. If convicted, Chandran faces up to 20 years in prison for each of the wire fraud counts and up to 10 years in prison for each count of engaging in unlawful monetary transactions. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The indictment also alleges that 100 different assets — bank accounts, real estate, and luxury vehicles, including 39 Tesla vehicles — are subject to forfeiture as proceeds of the fraud. U.S. Marshals and the FBI are seizing most of the assets pending resolution of the criminal case.

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

The FBI Washington Field Office is investigating the case. Significant assistance was also provided by the FBI’s Las Vegas, Los Angeles, Miami, and Omaha field offices.

Assistant Chief William E. Johnston and Trial Attorney Tian Huang of the Criminal Division’s Fraud Section are prosecuting the case. Senior Policy Advisor Darrin McCullough and Trial Attorney Sarah Roessler of the Criminal Division’s Money Laundering and Asset Recovery Section are handling forfeiture. The U.S. Attorney’s Offices for the Districts of Nebraska, Nevada, and the Central District of California provided valuable assistance.

All investor victims of this fraud are encouraged to visit the webpage https://www.justice.gov/criminal-vns/united-states-v-chandran  to identify themselves as potential victims and obtain more information on their rights as victims, including the opportunity to submit a victim impact statement.

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

An Ohio man was sentenced in federal court today to one year and one day in prison and three years of supervised release for interstate threats; and concurrently to 10 months in prison and one year of supervised release for Freedom of Access to Clinic Entrances (FACE) Act charges, for threatening to bring a bomb to a local reproductive health services facility.

Carlos Manuel Rodriguez Brime, 26, of Columbus, also threatened to kill a patient whom he believed was seeking reproductive health services, specifically an abortion, at the clinic.  

On April 11, 2021, Brime made two separate telephone calls to the local reproductive health care clinic. In the first, he made a death threat relating to the prospective patient and in the second, he made a bomb threat directly to the clinic, telling the clinic staff “my organization will be bringing a bomb to your facility. I suggest you close your doors.”

Specifically, Brime admitted to violating the FACE Act – which makes it a federal crime to threaten the use of force to intimidate anyone receiving or providing reproductive health services – and to transmitting a threat in interstate commerce.

“Reproductive health providers and people seeking access to these services must be able to do so free from violence and threats of violence,” said Assistant Attorney General Kristen Clarke. “This sentencing should send a strong message that the Justice Department will continue to aggressively enforce the FACE Act and hold those accountable who violate the law. We stand ready to ensure that health care providers and people seeking reproductive health services are safe, secure and free from violence and threats of violence.”

“Threatening the life of anyone who seeks any type of health service is a heinous act that should not be tolerated,” said U.S. Attorney Kenneth L. Parker. “People must handle their disagreements to positions that are contrary to theirs in a more civil way than using the threat of force or any kind of intimidation.”

Brime was indicted by a grand jury and arrested in September 2021. He pleaded guilty in February 2022.

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division; U.S. Attorney Kenneth L. Parker for the Southern District of Ohio; Special Agent in Charge J. William Rivers of the FBI Cincinnati Field Office; and Columbus Police Chief Elaine Bryant announced the sentence imposed today by U.S. District Judge Edmund A. Sargus Jr. Assistant U.S. Attorneys Emily Czerniejewski and S. Courter Shimeall and Civil Rights Division Trial Attorney Sanjay Patel are representing the United States in this case.

If you or someone you know has experienced or witnessed a civil rights violation, please report this matter to the FBI at https://www.fbi.gov/investigate/civil-rights.

A Kansas man was sentenced today to 27 months in federal prison and 18 months of supervised release for threatening a Black man with a knife because of the man’s race, in order to intimidate and interfere with the man’s right to fair housing. Assistant Attorney General Kristen Clarke of the Department of Justice’s Civil Rights Division, U.S. Attorney Duston Slinkard for the District of Kansas and Special Agent in Charge Charles Dayoub for the FBI Kansas City Field Office made the announcement.

According to the court documents, on Sept. 11, 2019, Colton Donner, 27, was driving through a residential area of Paola, Kansas, when he saw the victim, a Black man, walking on the sidewalk. Donner stopped, got out of the car, and approached the victim while brandishing a knife. Donner threatened the victim, yelled racial slurs, and told the victim that Paola is a “white town.”

“Racially-motivated threats and violence have no place in our society today,” said Assistant Attorney General Clarke. “This sentence should send a strong message to perpetrators of violent hate-fueled acts that they will be held accountable for their crimes. Everyone deserves to feel safe and secure living in their communities, without being subject to racially-motivated crimes seeking to drive them from their homes or neighborhoods.”

“All Americans have the freedom to decide where they want to live, and to do so without fear of being threatened because of their race,” said U.S. Attorney Slinkard. “Hopefully this prison sentence will deter those who would commit acts of racial discrimination and violence by illustrating the Justice Department’s steadfast resolve to prosecute these crimes.”

“Every individual has the right to occupy a home free from racial discrimination, yet the defendant targeted the victim for no other reason than the victim’s race,” said Special Agent in Charge Dayoub. “The defendant’s actions, directly undermined the victim’s right to reside in a community in Paola, and to enjoy the protections afforded under the federal civil rights act. The FBI, along with our law enforcement partners, have no tolerance for this type of fear and intimidation and are committed to protecting residents regardless of their race, color, religion, gender, national origin or familial status.”

This case was investigated by the Paola Police Department and the Kansas City Field Office of the FBI. The case was prosecuted by Assistant U.S. Attorney Tristam Hunt of the District of Kansas and Trial Attorney Anita Channapati of the Civil Rights Division’s Criminal Section.

The Department of Justice filed a civil antitrust lawsuit today to block Booz Allen Hamilton Holding Corporation’s (Booz Allen) proposed acquisition of EverWatch Corp. (EverWatch), a subsidiary of EC Defense Holdings LLC. The complaint, filed in the U.S. District Court for the District of Maryland, alleges that the merger agreement threatens imminent competition for a government contract to provide operational modeling and simulation services to the National Security Agency (NSA). Unless enjoined, the transaction would eliminate competition for this defense contract, leaving NSA to face a monopoly bidder.  

“Booz Allen’s agreement to acquire EverWatch imperils competition in a market that is vital to our national security,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Both the acquisition agreement and the underlying transaction violate federal antitrust law.” 

NSA periodically issues a contract for the provision of operational modeling and simulation services to support its signals intelligence data missions. As part of the procurement process, it plans to issue requests for proposals for the next iteration of this contract imminently. Prior to the merger agreement, Booz Allen and EverWatch competed head-to-head to win this NSA contract. Shortly before NSA was scheduled to release the requests for proposal, however, Booz Allen decided to buy its only rival instead. The complaint alleges that the merger agreement violates Section 1 of the Sherman Act because it immediately reduced each company’s incentive to bid aggressively. The complaint further alleges that the proposed transaction substantially lessens competition, in violation of Section 7 of the Clayton Act.

As alleged in the complaint, NSA is a leading defense intelligence agency, specializing in cryptology, signals intelligence, and cybersecurity, and is responsible for providing signals intelligence to our nation’s policymakers and armed forces. Signals intelligence, which is derived from electronic signals and emissions in communications systems, plays a vital role in our national security by providing America’s leaders with critical information needed to defend the United States and to advance the country’s goals and alliances globally.

Booz Allen is a publicly traded professional services company that provides a broad range of services and solutions in management, technology, consulting and engineering. Booz Allen is incorporated in the State of Delaware. It is headquartered in McLean, Virginia, and has an office in Annapolis Junction, Maryland.

EverWatch is a subsidiary of EC Defense Holdings LLC, which is itself owned by the private equity firm Enlightenment Capital. EverWatch provides a range of services to the defense and intelligence community focused on data science, intelligence and cybersecurity. EverWatch is headquartered in Reston, Virginia, and has an office in Annapolis Junction, Maryland.

The Justice Department announced that it had resolved a claim that Tapesouth Inc. violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by failing to promptly reemploy U.S. Navy Reservist James Radtke following his leave for a military service obligation. Radtke is a Lieutenant Commander in the U.S. Navy Reserve assigned to Unmanned Patrol Squadron 19 at the Naval Air Station in Jacksonville, Florida.

“Given the sacrifices that servicemembers already make every day, and the uncertainties they face during their military service obligations, it is simply inexcusable when employers violate USERRA by failing to promptly reemploy them in their proper positions upon the completion of their service obligations,” said Assistant Attorney General Kristen Clarke of the Civil Rights Division. “We honor all servicemembers for their service to our nation, and this settlement signals the Justice Department’s ongoing commitment to protecting and enforcing their rights under federal law.”

In March 2020, Lt. Cdr. Radtke notified Tapesouth Inc. that he would be away on a full-time active-duty military service obligation from April through July 2020. Radtke alleged that after contacting Tapesouth Inc. in July 2020, to return to his previous position as the company’s Vice President of Operations, Tapesouth Inc. terminated his employment in violation of USERRA. Under the terms of the settlement, Tapesouth Inc. has agreed to compensate Radtke for lost income in the amount of $2,500 and provide USERRA training to all its employees.

Congress enacted USERRA to encourage non-career service in the uniformed services 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 their completion of such service; and to prohibit discrimination against persons because of their service in the uniformed services or if they pursue a claim under USERRA.

The Department of Labor (DOL) referred this matter following an investigation by their 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.

As growing numbers of women undertake increasingly significant roles in law enforcement, security, and counterterrorism, the U.S. Department of Justice, U.S. Department of State, and the Government of Kenya have joined forces the week of June 27 to July 1, 2022, to host an Africa Regional Symposium on Women in Security.

The gathering, attended by approximately 70 security and law enforcement professionals from eight nations around the globe, amplifies regional and strategic objectives in empowering women as meaningful, essential contributors to security, law enforcement, and counterterrorism. The symposium also provides a forum for women from multiple nations to undertake career-development training, engage in networking opportunities, and bolster the advancement of women in law enforcement while promoting counterterrorism efforts. The symposium includes participants from Ghana, Kenya, Niger, Senegal, and Somalia, as well as Albania, Tunisia, the United Kingdom and the United States.

“The Engaging Multinational Policewomen on Equality and Rights (EMPoWER) program represents the very best of the Department of Justice’s International Criminal Investigative Training Assistance Program (ICITAP)’s commitment to increasing women’s participation and leadership in law enforcement, which bolsters operational effectiveness, expands police institutions’ abilities to engage local communities, broadens the perspective of operating environments, and strengthens police response to crime,” said ICITAP Director Greg Ducot.

“Building the capacity of our law enforcement partners to respond to terrorist incidents and to investigate and prosecute the perpetrators is a key civilian-led line of effort to counter terrorism,” said Director of Programs Sam Pineda of the U.S. State Department’s Bureau of Counterterrorism. “Unfortunately, women in these professions often encounter stereotypes, assumptions, and cultural hurdles that prevent them from being involved. Expanding the roles of women in security widens the pool of talented candidates for these demanding careers and contributes to countering the global terrorism threat, making all of us more secure.”

In addition, the symposium provides opportunities for senior men and women in U.S. and international security careers to have meaningful interactions with women in the security professions in multiple African nations.

Symposium presenters include:

• S. Army Major General Jami C. Shawley, Commander, Combined Joint Task Force-Horn of Africa;
• Supervisory Special Agent Sarah Cloeter, U.S. Department of State Diplomatic Security Service (DSS);
• Laurie Freeman, Deputy Director, Office of Programs, State Department Bureau of Counterterrorism;
• Daniel Wathome, Gender Specialist and Training Coordinator, International Peace Support Training Centre, Nairobi, Kenya; and
• Chief Gina V. Hawkins, Fayetteville Police Department, Fayetteville, North Carolina.

Discussion highlights include:

• An executive panel discussion on “Challenges and Lessons Learned in Achieving Success in a Historically Male Dominant Security Domain;”
• Case studies of women in African security units; and
• Presentations on women in tactical leadership.

“Like Kenya, the United States too has ways to go before we can truly realize the full effect. So, what is the advantage of women in peace and security? Does it help reduce conflict? Yes, it does – absolutely,” said Major General Jami C. Shawley.

The Africa Regional Symposium on Women in Security was organized by: The U.S. Department of Justice’s ICITAP and its Engaging Multinational Policewomen on Equality and Rights (EMPoWER) program; The U.S. Embassy, Nairobi, Kenya; the U.S. Department of State, Diplomatic Security Service’s Antiterrorism Assistance program (DS/ATA); the Department of State Bureau of Counterterrorism (CT); U.S. Department of Defense; the British High Commission; the International Peace Support Training Centre of Kenya, the Kenya National Counter Terrorism Centre; and Kenya’s Administration Police Service.

The EMPoWER program, a partnership between the Departments of Justice and State, builds the capacity of women to combat terrorism by supporting them through leadership opportunities and inclusion in counterterrorism efforts. EMPoWER conducted its first regional symposium in March 2022 in Opatija, Croatia, drawing more than two dozen law enforcement participants from Albania, Bosnia-Herzegovina, Kosovo, Montenegro, North Macedonia, and Kenya. Additional symposiums are planned for Asia and the Middle East.

The ATA program is the U.S. government’s premier counterterrorism training and equipment provider for foreign law enforcement agencies. As mandated by U.S. Congress, ATA has three foreign policy objectives: to build counterterrorism capacity of partner countries; to enhance bilateral relationships; and to increase respect for human rights.

To learn more about ICITAP’s capacity building programs around the world, visit: https://www.justice.gov/criminal-icitap

To learn more about State CT and ATA: https://www.state.gov/antiterrorism-assistance-program/.

Today, the Western District of Oklahoma unsealed an indictment charging three individuals with violating federal wire fraud and money laundering statutes in connection with an operation to sell over $88 million of stolen Avaya Direct International (ADI) software licenses, which were used to unlock features of a popular telephone system used by thousands of companies around the globe.

The grand jury charged the following defendants with conspiracy to commit wire fraud and 13 counts of wire fraud:  Raymond Bradley Pearce, aka Brad Pearce, 46, of Tuttle, Oklahoma; Dusti O. Pearce, 44, of Tuttle, Oklahoma; and Jason M. Hines, aka Joe Brown, aka Chad Johnson, aka Justin Albaum, 42, of Caldwell, New Jersey. In addition, the grand jury charged both Brad Pearce and Dusti Pearce with one count of conspiracy to commit money laundering and money laundering.

According to the indictment, Avaya Holdings Corporation, a multinational business communications company headquartered in California, sold a product called IP Office, a telephone system used by many midsize and small businesses in the United States and abroad. To enable additional functionality of IP Office such as voicemail or more telephones, customers had to purchase software licenses – which Avaya generated – from an authorized Avaya distributor or reseller. Avaya used software license keys to control access to Avaya’s copyright-protected software and to ensure that only customers who paid for the software could use it. In addition, Avaya required that each software license on an IP Office system be associated with the system’s Avaya Secure Digital (SD) card – a small flash memory card with a unique serial number that plugged into the IP Office manager computer – which the end user had to keep in its possession in order to use the licenses.

According to the indictment, Brad Pearce, a long-time customer service employee at Avaya, allegedly used his system administrator privileges to generate tens of millions of dollars of ADI software license keys that he sold to Hines and other customers, who in turn sold them to resellers and end users around the globe. The retail value of each Avaya software license ranged from under $100 to thousands of dollars.

As set forth in the indictment, Brad Pearce also allegedly employed his system administrator privileges to hijack the accounts of former Avaya employees to generate additional ADI software license keys. Furthermore, he allegedly used these privileges to alter information about the accounts to conceal the fact that he was generating ADI license keys, preventing Avaya from discovering the fraud scheme for many years. Brad Pearce’s wife, Dusti Pearce, is alleged to have handled accounting and helped run the financial side of the illegal business. Hines operated Direct Business Services International (DBSI), a de-authorized Avaya reseller, in New Jersey. He allegedly bought software licenses from the Pearces under his own name and also using an alias, Joe Brown. Hines was the Pearces’ largest customer and significantly influenced how the scheme operated. Hines also received help from Brad Pearce to resell the stolen software licenses. Hines was allegedly one of the biggest users of the ADI license system in the world.

According to the indictment, the Pearces and Hines’ operation not only prevented Avaya from making any money on its stolen intellectual property but also undercut the global market in Avaya ADI software licenses because the Pearces and Hines were selling licenses for significantly below the wholesale price. In fact, Brad Pearce allegedly told Hines that the Pearces’ customers could not obtain same-day ADI software licenses from anyone else for anything even close to the Pearces’ prices, and Hines suggested that he and Brad Pearce work together to “corner” the market in licenses. Altogether, the Pearces and Hines allegedly reaped millions of dollars from the fraud. Moreover, to hide the nature and source of the money, the Pearces allegedly funneled their illegal gains through a PayPal account created under a false name to multiple bank accounts, and then transferred the money to numerous other investment and bank accounts. They also allegedly purchased large quantities of gold bullion and other valuable items. The indictment lists numerous assets subject to forfeiture including cash, gold, silver, collectible coins, cryptocurrency, and real property.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Robert J. Troester for the Western District of Oklahoma, and Special Agent in Charge Edward J. Gray of the FBI’s Oklahoma City Field Office made the announcement.

The FBI conducted the investigation.

Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Julia E. Barry and William Farrior for the Western District of Oklahoma 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.

After a 24-day trial, a federal jury in the Middle District of Florida convicted two individuals for their roles in a conspiracy that fraudulently billed approximately $1.4 billion for laboratory testing services in a sophisticated pass-through billing scheme involving rural hospitals.

According to court documents and evidence presented at trial, Jorge Perez, 62, and Ricardo Perez, 59, both of Miami, Florida, conspired with each other and others to unlawfully bill for approximately $1.4 billion of laboratory testing services which were medically unnecessary, and that fraudulently used rural hospitals as billing shells to submit claims for services that mostly were performed at outside laboratories. Jorge Perez and Ricardo Perez also committed health care fraud on five specific occasions, and conspired to launder the proceeds of this fraudulent scheme.

“These defendants preyed on and exploited the vulnerable – vulnerable hospitals, vulnerable underserved communities, and vulnerable patients seeking treatment for addiction – to line their own pockets,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “We will continue to work tirelessly to hold accountable those who exploit the integrity of the health care industry for profit.”

“The defendants in this case engaged in an elaborate scheme to prey upon distressed medical facilities across multiple states and defraud private insurers,” said U.S. Attorney for the Middle District of Florida Roger Handberg. “Today’s verdict clearly demonstrates our vigilance to prosecute those who violate our laws for profit.”

“The defendants in today’s case allegedly conspired to run an elaborate billing scheme which took advantage of vulnerable hospitals and the rural communities that relied on them,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI and our law enforcement partners are dedicated to protecting the health care system and shutting down fraudulent billing shells.” 

The evidence showed that the defendants targeted and obtained control of financially distressed rural hospitals through management agreements and purchases. The defendants sought to obtain control of these rural hospitals because of private insurance contracts that provided for higher reimbursement rates for laboratory testing — a common feature of rural hospital contracts designed to ensure that the hospitals can survive and provide rural communities with much needed care. The defendants promised to save these rural hospitals from closure by turning them into laboratory testing sites, but instead billed for fraudulent laboratory testing worth hundreds of millions of dollars in a sophisticated and years-long “pass-though” billing scheme. The scheme made it appear that the rural hospitals themselves did the laboratory testing when, in most cases, it was done by testing laboratories controlled by certain defendants.

The evidence further showed that much of the laboratory testing billed through these rural hospitals involved urine drug testing for vulnerable addiction treatment patients, often obtained through kickbacks paid to recruiters and providers, frequently at sober homes or substance abuse treatment facilities. The tests billed by the defendants were often not medically necessary. After private insurance companies began to question the defendants’ billings, they would move on to another rural hospital, leaving the rural hospitals they took over in the same or worse financial status as before. Three of the four rural hospitals closed shortly after the defendants moved on to a different rural hospital. The defendants also conspired to launder the proceeds of their scheme through a series of large financial transfers. 

Jorge Perez and Ricardo Perez were convicted of conspiracy to commit health care fraud and wire fraud, five counts of health care fraud, and conspiracy to commit money laundering of proceeds greater than $10,000. The defendants face a maximum penalty of 20 years for each of the health care fraud and wire fraud conspiracy and money laundering conspiracy counts, and 10 years for each substantive health care fraud count. A federal district court judge will determine the sentences after considering the U.S. Sentencing Guidelines and other statutory factors.

The rural hospitals involved in this case were: Campbellton-Graceville Hospital (CGH), a 25-bed rural hospital located in Graceville, Florida; Regional General Hospital of Williston, a 40-bed facility located in Williston, Florida; Chestatee Regional Hospital, a 49-bed rural hospital located in Dahlonega, Georgia; and Putnam County Memorial Hospital, a 25-bed rural hospital located in Unionville, Missouri.

The FBI’s Jacksonville Field Office; Office of Personnel Management, Office of Inspector General (OPM-OIG); Department of Labor, Office of Inspector General (DOL-OIG); and the Amtrak Office of Inspector General investigated the case.

Assistant U.S. Attorney Tysen Duva for the Middle District of Florida and Senior Litigation Counsel Jim Hayes and Trial Attorney Gary Winters of the Criminal Division’s Fraud Section are prosecuting the case.

The Department of Justice announced today that it has filed a lawsuit in federal court in the District of Kansas against the Kansas Department of Health and Environment (KDHE), to protect the employment rights of Army National Guard Staff Sergeant (SSG) Stacy Gonzales. The Department of Justice alleges that KDHE violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) when it took action to eliminate SSG Gonzales’ position because she had an upcoming military deployment.

“This lawsuit reinforces the Justice Department’s strong commitment to protecting the rights of those who serve in our country’s armed forces,” said Assistant Attorney General Kristen Clarke of the Justice Department's Civil Rights Division. “We owe a solemn duty to members of the National Guard and Reserve to act when any employer seeks to deny them an opportunity to earn a living because they are called to duty.”

“Any attempt to deny someone employment based upon their dedicated military service to this country is wrong and a violation of that person’s civil rights,” said U.S. Attorney Duston Slinkard for the District of Kansas. “It is the responsibility of the Justice Department to take action to support our servicemembers and we take that responsibility very seriously.”

According to the complaint, SSG Gonzales was employed as a Disease Intervention Specialist (DIS) with the Finney County, Kansas, Department of Health from 2001 to 2010, a position funded by and under the direct control and supervision of KDHE. During this time, she also performed active military service including deployments to Iraq and Kuwait, as well as periodic training. The complaint alleges that upon her return from active service overseas in 2007, SSG Gonzales began to experience hostility from KDHE regarding her military obligations. The complaint further alleges that upon notice that Gonzales had orders for an overseas deployment in 2010, KDHE eliminated the funding for SSG Gonzales’ DIS position, thereby eliminating the position. The lawsuit seeks the recovery of SSG Gonzales’ lost wages and other employment benefits, as well as liquidated damages. 

USERRA protects the rights of uniformed servicemembers to retain their civilian employment following absences due to military service obligations, and provides that servicemembers shall not be discriminated against because of their military obligations. 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 (DOL) website at www.dol.gov/vets/programs/userra.

This case stems from a referral by the DOL, at SSG Gonzales’ request, after an investigation by the DOL’s Veterans’ Employment and Training Service. The case is being handled by Robert Galbreath in the Employment Litigation Section of the Department of Justice’s Civil Rights Division and Assistant U.S. Attorney Tyson Shaw in the U.S. Attorney’s Office for the District of Kansas.

The Department of Justice today announced that it signed settlement agreements requiring 16 private employers to pay a total of $832,944 in civil penalties to resolve claims that each company discriminated against non-U.S. citizens in hiring. According to the department, each company posted at least one job announcement excluding non-U.S. citizens on an online job recruitment platform operated by the Georgia Institute of Technology (Georgia Tech). One employer posted as many as 74 discriminatory advertisements on Georgia Tech’s platform, while several of the employers posted discriminatory advertisements on other college or university platforms as well. The department determined that the advertisements deterred qualified students from applying for jobs because of their citizenship status, and in many cases the citizenship status restrictions also blocked students from applying or even meeting with company recruiters.

“Unlawful hiring discrimination based on citizenship or immigration status is a widespread problem across higher education in the United States, putting many jobs out of reach of qualified college students and recent graduates,” said Assistant Attorney General Kristen Clarke of the Justice Department's Civil Rights Division. “The Civil Rights Division is committed to enforcing the law to ensure that students and job applicants — including lawful permanent residents, U.S. nationals, asylees and refugees — are protected from unlawful discrimination. We will hold employers accountable for using on-campus recruiting platforms in a discriminatory manner and work to provide relief for victims.”

The department’s involvement in these matters began after a lawful permanent resident filed a discrimination complaint with the Civil Rights Division’s Immigrant and Employee Rights Section, alleging that a company advertised a U.S.-citizens only position on a Georgia Tech job recruitment platform. The department’s investigation discovered a rash of other facially discriminatory advertisements on Georgia Tech’s job recruiting platform as well as other platforms operated by colleges and universities across the United States. The department proceeded to open investigations of the employers with which it is settling, and continues investigations into additional employers.

The Immigration and Nationality Act (INA) generally prohibits employers and recruiters from limiting jobs based on citizenship or immigration status unless required by a law, regulation, executive order or government contract. The INA protects U.S. citizens, U.S. nationals, refugees, asylees and recent lawful permanent residents from citizenship status discrimination in hiring, firing and recruitment or referral for a fee. Regardless of whether colleges or universities run afoul of the INA in the way they operate their job recruitment platforms, employers themselves are liable if the advertisements they post on those platforms violate the INA.

Under the terms of their individual settlement agreements with the department, the following 16 employers will pay civil penalties in varying amounts, depending, in part, on the number of discriminatory advertisements they posted:

EMPLOYER

PENALTY AMOUNT

KPMG LLP

$306,656

Keyot LLC

$256,928

Area-I, Inc.

$103,600

CapTech

$33,152

Akuna Capital

$29,008

American Express Company

$29,008

Sealed Air Corporation

$24,864

Clarkston-Potomac Group

$12,432

Toast, Inc.

$8,288

Blackbaud

$4,144

Clay Electric Cooperative, Inc.

$4,144

CONMED

$4,144

Edward Jones Investments

$4,144

KNAPP Inc.

$4,144

SimpleNexus, LLC, f/k/a L Brewer and Associates, LLC, d/b/a LBA Ware

$4,144

The Royster Group, Inc.

$4,144

TOTAL

$832,944

In addition to paying the civil penalties, the 16 employers must also require their recruiting staff to undergo training on their obligations under the INA’s anti-discrimination provision and to refrain from including specific citizenship or immigration status designations in their campus job postings unless the restrictions are required by law. They will also ensure that their other recruiting practices and policies comply with the INA’s anti-discrimination provision.

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

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

El Departamento de Justicia anunció hoy que ha firmado acuerdos conciliatorios que requieren que 16 empleadores privados paguen un total de $832,944 por concepto de sanciones civiles para resolver acusaciones de que cada compañía había discriminado a no ciudadanos en el proceso de contratación. Según el Departamento, cada compañía publicó al menos un anuncio de trabajo que excluía a no ciudadanos de los EE. UU. en una plataforma virtual de reclutamiento laboral operada por el Georgia Institute of Technology (Georgia Tech). Un empleador publicó hasta 74 anuncios discriminatorios en la plataforma de Georgia Tech, mientras que algunos empleadores publicaron anuncios discriminatorios en las plataformas de otras universidades también. El Departamento determinó que los anuncios desalentaban a estudiantes cualificados de solicitar un trabajo debido a su estatus de ciudadanía, y en muchos casos las restricciones relacionadas con el estatus de ciudadanía también impedían que los estudiantes solicitaran un puesto e incluso obstaculizaron la posibilidad de reunirse con reclutadores de la empresa.

«La discriminación ilícita en la contratación con base en el estatus migratorio o de ciudadanía es un problema generalizado en los Estados Unidos, lo que pone a muchos trabajos fuera del alcance de estudiantes universitarios y recién graduados», declaró Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles. «La División de Derechos Civiles está comprometido a hacer cumplir la ley para garantizar que estudiantes y solicitantes de trabajo, incluyendo a residentes permanentes legales, nacionales de los EE. UU., asilados y refugiados, queden protegidos de la discriminación ilícita. Nosotros haremos a estos empleadores rendir cuentas de su uso discriminatorio de plataformas universitarias de reclutamiento y trabajaremos para conseguir una compensación para las víctimas».

La participación del Departamento en estos asuntos comenzó después de que un residente permanente legal presentó una demanda ante la Sección de Derechos de Inmigrantes y Empleados de la División de Derechos Civiles, en la cual alegó que una compañía había publicado un puesto solamente para ciudadanos de los EE. UU. en una plataforma de reclutamiento laboral de Georgia Tech. La investigación del Departamento halló toda una serie de anuncios que eran visiblemente discriminatorios en la plataforma de reclutamiento laboral de Georgia Tech, así como en otras plataformas operadas por universidades por todo Estados Unidos. El Departamento procedió a iniciar investigaciones de los empleadores con los cuales está llegando a acuerdos y todavía está investigando a algunos empleadores adicionales.

Conforme la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés), los empleadores y reclutadores solo pueden restringir puestos con base en la ciudadanía o el estatus migratorio si así se lo requiere una ley, un reglamento, una orden ejecutiva o un contrato gubernamental. Los ciudadanos estadounidenses, nacionales de los EE. UU., refugiados, asilados y residentes permanentes legales están protegidos bajo la INA de discriminación por motivos de su ciudadanía en los procesos de contratación, despido y reclutamiento o recomendación por comisión. Independientemente de si las universidades vulneran la INA en su forma de operar sus plataformas de reclutamiento laboral, los empleadores mismos son responsables si los anuncios que publican en tales plataformas vulneran la INA.

Conforme los términos de sus acuerdos conciliatorios individuales con el Departamento, los siguientes 16 empleadores pagarán sanciones civiles de distintos montos, dependiendo, en parte, del número de anuncios discriminatorios que publicaron:

EMPLOYER

PENALTY AMOUNT

KPMG LLP

$306,656

Keyot LLC

$256,928

Area-I, Inc.

$103,600

CapTech

$33,152

Akuna Capital

$29,008

American Express Company

$29,008

Sealed Air Corporation

$24,864

Clarkston-Potomac Group

$12,432

Toast, Inc.

$8,288

Blackbaud

$4,144

Clay Electric Cooperative, Inc.

$4,144

CONMED

$4,144

Edward Jones Investments

$4,144

KNAPP Inc.

$4,144

SimpleNexus, LLC, f/k/a L Brewer and Associates, LLC, d/b/a LBA Ware

$4,144

The Royster Group, Inc.

$4,144

TOTAL

$832,944

Además de pagar las sanciones civiles, los 16 empleadores también deberán obligar a su personal de reclutamiento a participar en una capacitación sobre sus deberes en virtud de la disposición antidiscriminatoria de la INA y abstenerse de incluir designaciones específicas de estatus migratorio o de ciudadanía en sus anuncios de trabajos en las universidades al menos que tales restricciones sean requeridas por ley. También asegurarán que sus demás prácticas y políticas de reclutamiento cumplan con la disposición antidiscriminatoria de la INA.

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

Para aprender más sobre la labor de la IER y cómo conseguir ayuda, vea este vídeo corto. El sitio web de la IER tiene información sobre cómo los empleadores pueden evitar la discriminación por motivos de estatus de ciudadanía en la contratación y el reclutamiento. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus migratorio, ciudadanía o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a IER@usdoj.gov; inscribirse a un seminario en línea gratuito; o visitar los sitios web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.

A Brookville, New York, man pleaded guilty today to willfully failing to collect and pay over employment taxes to the IRS on behalf of the spa companies he owned and managed.

According to court documents and statements made in court, Sung Soo Chon, 63, aka Steve Chon, was the CEO, president and majority owner of Spa Castle Queens in College Point, New York, and Spa Castle Texas, in Carrolton, Texas. Chon oversaw daily operations at the two spas and related businesses, and directed subordinates to pay cash wages to some employees, many of whom were not legally permitted to work in the United States.

From the first quarter of 2014 through the first quarter of 2017, Chon did not withhold all of the legally required federal payroll taxes from the wages of some of the spa employees and filed false employment tax returns with the IRS. During this period, Chon caused the businesses to conceal more than $1.3 million in cash wages. In total, the spa companies did not pay $199,238 in payroll taxes due to the IRS.

Chon is scheduled to be sentenced on Dec. 6. He faces a maximum penalty of five years prison, as well as a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Breon Peace for the Eastern District of New York made the announcement.

IRS-Criminal Investigation is investigating the case.

Assistant Chief Jorge Almonte and Trial Attorney Ann M. Cherry of the Tax Division are prosecuting the case.

A California man was extradited from Mexico on March 8 and pleaded guilty today to conspiracy to commit mail fraud and wire fraud, mail fraud, and money laundering charges for two high-yield investment fraud schemes.

According to court documents, Daniel Thomas Broyles Sr., aka Dan Thomas, aka Daniel Cruz Torrez, 64, of Malibu, participated in a high-yield investment fraud scheme involving a sham company named Niyato Industries Inc. Broyles admitted to conspiring with Niyato’s CEO, Robert Leslie Stencil, 65, of Charlotte, North Carolina, and others to defraud Niyato investors. Broyles admitted that, together with Stencil and others, he falsely portrayed Niyato as a business engaged in electric vehicle manufacturing and converting vehicles to run on compressed natural gas. In reality, Broyles knew, or intentionally avoided learning, that Niyato was merely a sham company that lacked any operational facilities or proprietary technology, and virtually all investor funds were being disbursed among the co-conspirators and not used to promote Niyato’s business. In June 2016, after Broyles learned that federal law enforcement agents were investigating Niyato, he relocated to Mexico. Broyles admitted that, when he learned in August 2016 that he had been indicted, he moved to a new address in Mexico and began using the alias “Daniel Cruz Torrez” to hide from federal law enforcement agents and to obstruct the federal government’s prosecution.

In addition, according to court documents, Broyles separately pleaded guilty for his role in a second high-yield investment fraud involving EarthWater Limited. Broyles admitted to conspiring with EarthWater’s CEO, Cengiz Jan Comu, 61, of Dallas, Texas, and others to sell EarthWater stock. Broyles also admitted that he and others made numerous false and misleading representations, including that EarthWater used the money raised from victim investors to develop and operate the company’s business. In truth, Broyles, Comu, and their co-conspirators had agreed to use the invested victim funds largely for their personal benefit.

Broyles pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud, one count of mail fraud, and one count of money laundering in connection with the Niyato scam. Broyles also pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud in connection with the EarthWater scheme. He is scheduled to be sentenced at a later date. Broyles faces up to 10 years in prison for the money laundering count, up to 20 years in prison for the mail fraud count, and up to 30 years in prison for each of the conspiracy counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Seven other defendants have previously been convicted in connection with the Niyato scam, including Stencil, who was convicted following a three-week jury trial and sentenced to 135 months in prison. 

Eight other defendants have pleaded guilty in connection with the EarthWater fraud, including Comu, who is scheduled to be sentenced on Sept. 7. Three other defendants are awaiting trial in the EarthWater case on charges set forth in a superseding indictment filed on Nov. 6, 2019, in the Northern District of Texas. The trial is scheduled to begin on Oct. 3.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Dena J. King for the Western District of North Carolina; U.S. Attorney Chad E. Meacham for the Northern District of Texas; Inspector in Charge Tommy Coke of the U.S. Postal Inspection Service’s Atlanta Division; and Inspector in Charge Eric Shen of the U.S. Postal Inspection Service’s Criminal Investigations Group made the announcement.

The Government of Mexico, including the Fiscalia General de la Republica (FGR), provided significant assistance in the extradition of Broyles to the United States. The Justice Department’s Office of International Affairs also provided substantial assistance in securing the arrest and extradition of Broyles.

The U.S. Postal Inspection Service is investigating this case. The U.S. Marshals Service transported Broyles from Mexico to the United States.

Trial Attorney Christopher Fenton of the Criminal Division’s Fraud Section is prosecuting both cases. Trial Attorney Theodore Kneller of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mary Walters of the U.S. Attorney’s Office for the Northern District of Texas are prosecuting the case involving EarthWater.

In a second superseding indictment unsealed today, a federal grand jury in Cleveland, Ohio, charged Christos Karasarides Jr., of Canton, with tax evasion, filing false tax returns, witness tampering, falsifying records and five separate conspiracies to operate illegal gambling businesses, defraud the IRS and commit money laundering.

In May 2021, the government charged spouses Jason Kachner and Rebecca Kachner, CPA Ronald DiPietro and Thomas Helmick with conspiring to operate illegal gambling businesses and to defraud the IRS, among other criminal offenses. The superseding indictment unsealed today adds Karasarides to the indictment and includes new tax charges against DiPietro.

According to the second superseding indictment, from 2010 through 2018 Karasarides, Jason Kachner, Rebecca Kachner and DiPietro conspired to operate Skilled Shamrock, an illegal gambling business in Canton, and conspired to defraud the IRS by concealing income generated by Skilled Shamrock. From 2012 through 2017, patrons at Skilled Shamrock allegedly wagered a total of more than $34 million, which resulted in more than $4 million in net income for the owners of the gambling business.

The second superseding indictment also charges that from 2009 through 2013, Karasarides accrued a total of more than $1.4 million in taxes owed to the IRS. Karasarides and DiPietro sought to evade this tax debt by allegedly submitting false information to the IRS concealing Karasarides’ ownership of the illegal gambling businesses and the income derived from those businesses. Instead of paying his overdue tax debt, Karasarides allegedly spent millions of dollars in cash on personal items such as cars, country club dues, real estate and credit card payments for the benefit of family members.

With DiPietro’s help, Karasarides also allegedly filed false tax returns with the IRS for 2013 through 2016. The returns allegedly did not include all the income Karasarides earned from Skilled Shamrock and other gambling businesses. Additionally, DiPietro is charged with helping the Kachners file their own false tax returns for the years 2013 through 2017. The Kachners and Helmick were previously charged with conspiracy and filing false tax returns that allegedly underreported gross receipts received from Redemption Skill Games 777, one of the other gambling businesses.

During the investigation, Karasarides allegedly sought to tamper with a witness appearing before the grand jury. He also allegedly had false promissory notes created to authenticate purported loans, then directed business associates and his son to sign the false promissory notes. When Karasarides learned one of the business associates had been subpoenaed to testify before the grand jury, he allegedly directed that witness to falsely testify that his loan was legitimate.

Karasarides is also charged with conspiring to launder money because he allegedly disguised the final payment on his personal residence, funded with cash proceeds from his illegal gambling businesses, by providing the cash to his associate who agreed to form a company to make the payment so that, on paper, Karasarides would never pay down the principal and purchase the residence outright.

Karasarides made his initial court appearance today. If convicted, he faces a maximum penalty of five years in prison for each count of conspiracy to operate an illegal gambling business and conspiracy to defraud the IRS, five years in prison for tax evasion, three years in prison for filing a false tax return, and 20 years in prison for each count of conspiracy to launder money, witness tampering and falsification of records. DiPietro faces a maximum penalty of five years in prison for helping Karasarides evade taxes and three years in prison for helping Karasarides file a false tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and First Assistant U.S. Attorney Michelle Baeppler for the Northern District of Ohio made the announcement.

IRS-Criminal Investigation, the U.S. Department of Treasury Office of Inspector General, and the Ohio Casino Control Commission are investigating the case. Homeland Security Investigations provided substantial assistance.

Trial Attorneys Richard M. Rolwing and Sam Bean of the Tax Division and Assistant U.S. Attorneys Robert Patton and David Toepfer for the Northern District of Ohio 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.

Attorney General Merrick B. Garland today released the following statement following the Supreme Court’s decision in Dobbs, State Health Officer of the Mississippi Department of Health, et al. v. Jackson Women’s Health Organization et al.:

“Today, the Supreme Court overturned Roe v. Wade and Planned Parenthood v. Casey and held that the right to abortion is no longer protected by the Constitution.

“The Supreme Court has eliminated an established right that has been an essential component of women’s liberty for half a century – a right that has safeguarded women’s ability to participate fully and equally in society. And in renouncing this fundamental right, which it had repeatedly recognized and reaffirmed, the Court has upended the doctrine of stare decisis, a key pillar of the rule of law.

“The Justice Department strongly disagrees with the Court’s decision. This decision deals a devastating blow to reproductive freedom in the United States. It will have an immediate and irreversible impact on the lives of people across the country. And it will be greatly disproportionate in its effect – with the greatest burdens felt by people of color and those of limited financial means. 

***

“But today’s decision does not eliminate the ability of states to keep abortion legal within their borders. And the Constitution continues to restrict states’ authority to ban reproductive services provided outside their borders.

“We recognize that traveling to obtain reproductive care may not be feasible in many circumstances. But under bedrock constitutional principles, women who reside in states that have banned access to comprehensive reproductive care must remain free to seek that care in states where it is legal. Moreover, under fundamental First Amendment principles, individuals must remain free to inform and counsel each other about the reproductive care that is available in other states.

“Advocates with different views on this issue have the right to, and will, voice their opinions. Peacefully expressing a view is protected by the First Amendment. But we must be clear that violence and threats of violence are not. The Justice Department will not tolerate such acts.

***

“The Justice Department will work tirelessly to protect and advance reproductive freedom.

“Under the Freedom of Access to Clinic Entrances Act, the Department will continue to protect healthcare providers and individuals seeking reproductive health services in states where those services remain legal. This law prohibits anyone from obstructing access to reproductive health services through violence, threats of violence, or property damage. 

“The Department strongly supports efforts by Congress to codify Americans’ reproductive rights, which it retains the authority to do. We also support other legislative efforts to ensure access to comprehensive reproductive services.

“And we stand ready to work with other arms of the federal government that seek to use their lawful authorities to protect and preserve access to reproductive care. In particular, the FDA has approved the use of the medication Mifepristone. States may not ban Mifepristone based on disagreement with the FDA’s expert judgment about its safety and efficacy. 

“Furthermore, federal agencies may continue to provide reproductive health services to the extent authorized by federal law. And federal employees who carry out their duties by providing such services must be allowed to do so free from the threat of liability. It is the Department’s longstanding position that States generally may not impose criminal or civil liability on federal employees who perform their duties in a manner authorized by federal law. Additionally, the Department’s Office of Legal Counsel has determined that federal employees engaging in such conduct would not violate the Assimilative Crimes Act and could not be prosecuted by the federal government under that law. The Justice Department is prepared to assist agencies in resolving any questions about the scope of their authority to provide reproductive care.

***

“The ability to decide one’s own future is a fundamental American value, and few decisions are more significant and personal than the choice of whether and when to have children.

“Few rights are more central to individual freedom than the right to control one’s own body.

“The Justice Department will use every tool at our disposal to protect reproductive freedom. And we will not waver from this Department’s founding responsibility to protect the civil rights of all Americans.”