District Not Recorded

The Justice Department and the Federal Maritime Commission (FMC) today reaffirmed their continuing commitment to jointly enforcing competition laws and strengthening their cooperation to promote competition in the ocean freight transportation system.

The FMC is a bipartisan, independent Executive Branch agency whose mission is to ensure a competitive and reliable international ocean transportation supply system that supports the U.S. economy and protects the public from unfair and deceptive practices. The Justice Department is the Executive Branch agency charged with promoting economic competition through enforcing and providing guidance on antitrust laws and principles.

The FMC and the Justice Department possess competition expertise unique to their respective agencies and have successfully worked together in the past. In July 2021, the working relationship between the FMC and the Department was formalized with the signing of a Memorandum of Understanding (MOU). The MOU established a framework for partnership between the FMC and the Justice Department’s Antitrust Division that enhances cooperation in the enforcement of antitrust and competition laws, including the Shipping Act, including by facilitating information exchange between and among attorneys, economists and technical experts. The objectives of the President’s Executive Order on Promoting Competition in the American Economy will be supported by this continued partnership.

Building upon the July 2021 MOU, Attorney General Merrick B. Garland and Chairman Daniel B. Maffei today announced new steps the two agencies will take to strengthen this partnership. The Justice Department will provide the FMC with the support of attorneys and economists from the Antitrust Division for enforcement of violations of the Shipping Act and related laws. The FMC will provide the Antitrust Division with support and maritime industry expertise for Sherman Act and Clayton Act enforcement actions.

“The Justice Department will continue to aggressively enforce our antitrust laws – no matter the industry, no matter the company, and no matter the individual,” said Attorney General Garland. “Competition in the maritime industry is integral to lowering prices, improving quality of service, and strengthening supply chain resilience. Expanding joint enforcement partnerships like the partnership between the FMC and DOJ is one of our most powerful tools for promoting competition. Lawbreakers should know that the Justice Department will provide the Federal Maritime Commission all necessary litigation support as it pursues its mission of promoting competition in ocean shipping.”

“The Attorney General and I share both the priority of a competitive marketplace and a commitment to pursue enforcement actions when necessary,” said Chairman Maffei. “Our agencies have a history of cooperating to the benefit of the American consumer and this new support will help ensure that the working relationship will help both government entities in our shared goal of fair competition.”

On Feb. 26, a federal court in the Eastern District of New York issued a preliminary injunction against four Brooklyn tax return preparers and their business.

The civil complaint filed in the case seeks to permanently bar Keith Sang, Kashana Sang, Tareek Lewis, Kimberly Brown and their business K&L Accounting Inc. from preparing tax returns. The preliminary injunction bars the defendants from any involvement in the preparation of federal tax returns during the pendency of this case. Keith Sang, Kashana Sang, Lewis and the business made no objection to the injunction. Brown opposed it.

The complaint alleges that the defendants’ tax return preparation schemes include preparation of individual income tax returns that (1) contain false or exaggerated itemized deductions (for example, unreimbursed employee expenses and charitable donations), (2) false filing statuses, such as improper “head of household” elections, (3) fraudulent and/or fictitious business income and/or expenses, (4) returns that falsify customer’s self-employment income to bring the customer into the “sweet spot” for the maximum available earned income tax credit, and (5) false losses on forms that report supplemental income or loss. The complaint alleges that, each year, K&L is responsible for preparing over 2,000 tax returns for customers, and that Keith Sang, whose electronic tax filing privileges were revoked years ago, has taken numerous steps to disguise his involvement with the tax return preparation, while he continues to prepare returns and supervise others working at K&L.

In granting the preliminary injunction, the court found that defendants engaged in concerted and conscious steps to evade IRS enforcement; that they, acting as a unit, repeatedly filed tax returns understating taxpayer liabilities since at least 2016; and that their past efforts demonstrated that they would continue hampering IRS enforcement unless prohibited from acting as federal tax return preparers during the litigation.

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

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

In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free. The IRS has tips on how seniors and individuals with low to moderate income can get other help or guidance on tax return preparation, too.

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

A federal jury convicted an Illinois woman on fraud and tax offenses for cashing her deceased grandmother’s pension checks and preparing false tax returns.

According to court documents and evidence presented at trial, Eunice Salley, aka Eunice Sally Dobyns, aka Oya Awanata-Bey, aka Oya Awanata, 37, of Chicago, was found guilty on all 29 counts against her, including pension fraud, embezzlement, mail fraud and tax charges. The jury returned the verdicts Friday after a four-day trial in U.S. District Court in Chicago. 

According to evidence presented at trial, Salley worked as a paid tax return preparer. In 2016 and 2017, Salley prepared and filed with the IRS 22 false individual income tax returns on behalf of clients. The returns, which sought more than $1 million in false refunds, contained fictitious wages and withholdings, as well as false medical, charitable and employment related expenses. Salley demanded that many of her clients pay her up to 50% of the refund, in addition to her regular preparation fee.

Evidence regarding the pension fraud revealed that Salley’s grandmother died in 2009 after having worked for American Can Co. After her death, the grandmother’s monthly pension checks continued to be delivered to the residence where Salley continued to reside. From January 2013 to December 2017, 33 pension checks, totaling $14,131, were issued to the grandmother and deposited into one of six bank accounts opened and controlled by Salley. On several occasions during that time Salley notarized and submitted to the pension plan administrator affidavits under her grandmother’s name, fraudulently affirming that the grandmother was alive. Salley did not report approximately $5,000 in income she received in 2017 from the pension checks that she embezzled.

Salley is scheduled to be sentenced on July 21 and faces a maximum penalty of 30 years in prison for mail fraud, five years in prison for each count of theft from an employee benefit plan, three years for each count of aiding and assisting the filing of a false tax return, and three years in prison for filing a false tax return. She 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; U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois; Special Agent-in-Charge Justin Campbell of IRS Criminal Investigation (IRS-CI) in Chicago; and Special Agent-in-Charge Emmerson Buie Jr. of the Chicago Field Office of the FBI made the announcement. 

The IRS-CI and FBI investigated the case.

Assistant Chief Andrew Kameros of the Tax Division and Assistant U.S. Attorney Barry Jonas for the Northern District of Illinois are prosecuting the case.

A federal jury convicted a Massachusetts man for submitting fraudulent loan applications seeking more than $13 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief and Economic Security Act. 

According to evidence presented at trial, Elijah Majak Buoi, 40, of Winchester, submitted six fraudulent PPP loan applications on behalf of his company Sosuda Tech LLC (Sosuda) to four different SBA-approved lenders. In each loan application, Buoi misrepresented the number of employees and payroll expenses. Buoi also submitted fraudulent IRS tax forms in support of his applications. The evidence at trial showed that Sosuda was a startup company with no U.S.-based payroll and no U.S.-based employees. As a result of his scheme, Buoi obtained a $2 million PPP loan. The government recovered approximately $1.97 million of the loan funds.

Buoi was convicted of four counts of wire fraud and one count of making a false statement to a financial institution. He is scheduled to be sentenced on June 16, and faces a maximum penalty of 20 years in prison for each wire fraud conviction and 30 years in prison for making false statements to a financial institution. 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 Rachael S. Rollins for the District of Massachusetts; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge Joseph R. Bonavolonta of the FBI’s Boston Division; Special Agent in Charge Joleen D. Simpson of IRS Criminal Investigation (IRS-CI) in Boston; Acting Special Agent in Charge Stephen Donnelly of the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection (FRB-OIG), Eastern Region; Special Agent in Charge Amaleka McCall-Brathwaite of the SBA Office of Inspector General (SBA-OIG), Eastern Regional Office; and Special Agent in Charge Patricia Tarasca of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), New York Region, made the announcement today.

The FBI, IRS-CI, FRB-OIG, SBA-OIG and FDIC-OIG investigated the case.

Trial Attorney Della Sentilles of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mackenzie A. Queenin of the District of Massachusetts prosecuted the case.

In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, 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 attempted 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 Justice Department today announced that it has reached a settlement resolving allegations that the Village of Walthill, Nebraska, violated a church’s rights under the Religious Land Use and Institutionalized Persons Act (RLUIPA). The department alleged that the Village unlawfully refused to grant the necessary permits required for Light of the World Gospel Ministries Inc. (LOTW), a nondenominational Christian Church, to construct a new church building on land it owns in a commercial district of the Village. Under the Village’s zoning code, churches and other religious institutions are required to obtain a special use permit to operate anywhere in the Village. 

The settlement, which was approved today by the U.S. District Court for the District of Nebraska, resolves a lawsuit the United States filed in February 2020. The United States alleged that the Village’s refusal to allow LOTW to construct a new church on its property substantially burdened its religious exercise. The lawsuit also alleged that the Village treated LOTW less favorably than nonreligious assemblies and institutions that were allowed to construct buildings for noncommercial uses in the same district during the same period.

“The ability to establish a place for collective worship and other religious services is a fundamental right protected by our civil rights laws,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division will remain vigilant in protecting the rights of religious communities to build houses of worship and use their property for religious purposes.”

“RLUIPA protects the right of every religious community to worship free from unlawful burdens,” said U.S. Attorney Jan W. Sharp for the District of Nebraska. “We will not tolerate the unlawful use of zoning or land use restrictions to infringe on that right.”

The settlement provides for the approval of the necessary permits so that LOTW can construct a new, multi-use church facility in downtown Walthill; prohibits the Village from engaging in future violations of RLUIPA; mandates RLUIPA training for Village Board members and staff; and requires that the Village provide notice to the public regarding rights protected by RLUIPA and comply with recordkeeping and reporting requirements. 

The court also recently approved another settlement to resolve a related lawsuit that LOTW filed against the Village.

RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.

Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the Civil Rights Division’s Housing and Civil Enforcement Section at 1-833-591-0291 or the U.S. Attorney’s Office for the District of Nebraska at (402) 661-3700, or may submit a complaint through the complaint portal on the Place to Worship Initiative website. More information about RLUIPA, including questions and answers about the law and other documents, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.

A federal grand jury in San Diego returned an indictment today charging the founder of BitConnect with orchestrating a global Ponzi scheme. BitConnect is an alleged fraudulent cryptocurrency investment platform that reached a peak market capitalization of $3.4 billion.

According to court documents, Satish Kumbhani, 36, of Hemal, India, the founder of BitConnect, misled investors about BitConnect’s “Lending Program.” Under this program, Kumbhani and his co-conspirators touted BitConnect’s purported proprietary technology, known as the “BitConnect Trading Bot” and “Volatility Software,” as being able to generate substantial profits and guaranteed returns by using investors’ money to trade on the volatility of cryptocurrency exchange markets. As alleged in the indictment, however, BitConnect operated as a Ponzi scheme by paying earlier BitConnect investors with money from later investors. In total, Kumbhani and his co-conspirators obtained approximately $2.4 billion from investors.  

The indictment further alleges that, after operating for approximately one year, Kumbhani abruptly shut down the Lending Program. Kumbhani then directed his network of promoters to fraudulently manipulate and prop up the price of BitConnect’s digital currency, a commodity known as BitConnect Coin (BCC), to create the false appearance of legitimate market demand for BCC. Kumbhani and his co-conspirators also concealed the location and control of the fraud proceeds obtained from investors by commingling, cycling, and exchanging the funds through BitConnect’s cluster of cryptocurrency wallets and various internationally based cryptocurrency exchanges.

According to the indictment, to avoid regulatory scrutiny and oversight of BitConnect’s cryptocurrency offering, Kumbhani evaded U.S. regulations governing the financial industry, including those enforced by the Financial Crimes Enforcement Network (FinCEN). For example, although BitConnect operated a money transmitting business through its digital currency exchange, BitConnect never registered with FinCEN, as required under the Bank Secrecy Act.

“Crime, particularly crime involving digital currencies, continues to transcend international boundaries,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The department is committed to protecting victims, preserving market integrity, and strengthening its global partnerships to hold accountable criminals engaging in cryptocurrency fraud.  We thank our partners around the world for their continued efforts.”

“This indictment alleges a massive cryptocurrency scheme that defrauded investors of more than $2 billion,” said U.S. Attorney Randy Grossman for the Southern District of California. “The U.S. Attorney’s Office and our law enforcement partners are committed to pursuing justice for victims of cryptocurrency fraud.”

“Today’s indictment reiterates the FBI’s commitment to identifying and addressing bad actors defrauding investors and sullying the ability of legitimate entrepreneurs to innovate within the emergent cryptocurrency space,” said Special Agent in Charge Eric B. Smith of the FBI’s Cleveland Field Office. “Dressing up a tried and true fraud scheme with a new twist and basing it overseas will not deter the resolve and dedication of the FBI to meticulously investigate and bring such fraudsters to justice.”

“As cryptocurrency gains popularity and attracts investors worldwide, alleged fraudsters like Kumbhani are utilizing increasingly complex schemes to defraud investors, oftentimes stealing millions of dollars,” said Special Agent in Charge Ryan L. Korner of the IRS Criminal Investigation’s (IRS-CI) Los Angeles Field Office. “However, make no mistake, our agency will continue our long tradition of following the money, whether physical or digital, to expose criminal schemes and hold the fraudsters accountable for their illegal acts of trickery and deceit.”

Kumbhani is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit commodity price manipulation, operation of an unlicensed money transmitting business, and conspiracy to commit international money laundering. If convicted of all counts, he faces a maximum total penalty of 70 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.  Kumbhani is at large.

The FBI Cleveland Field Office and IRS-CI are investigating the case.

Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Daniel Silva, Mark W. Pletcher, Carl Brooker, and Lisa Sanniti of the Southern District of California are prosecuting the case. The Department of Justice Office of International Affairs provided indispensable assistance to the investigation.

All investor victims of the BitConnect fraud are encouraged to visit the webpage https://www.justice.gov/usao-sdca/us-v-glenn-arcaro-21cr02542-twr 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 the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Attorney General Merrick B. Garland released the following statement regarding the President’s nomination of Judge Ketanji Brown Jackson to be Associate Justice of the United States Supreme Court:

“President Biden has made an outstanding choice in selecting Judge Ketanji Brown Jackson as his nominee to be an Associate Justice of the Supreme Court. I have known Judge Jackson since she served as a federal public defender. I also had the privilege to serve alongside Judge Jackson during her eight years as a district judge before she joined the D.C. Circuit. I have witnessed firsthand her exceptional abilities as both a lawyer and a judge, her commitment to the rule of law and equal justice under law, and her generosity of spirit. I commend President Biden for nominating Judge Jackson. I am confident that she will be an exemplary member of our nation’s highest court.”

On Thursday, the United States and United Arab Emirates (UAE) signed a mutual legal assistance treaty (MLAT) enhancing evidence sharing, judicial cooperation and assistance in criminal investigations and prosecutions.

U.S. Embassy Abu Dhabi Chargé d’Affaires Sean Murphy and Emirati Minister of Justice Abdullah Sultan Al Nuaimi signed the MLAT on behalf of their nations at the Ministry of Justice in Abu Dhabi, UAE. The bilateral U.S.-UAE instrument was negotiated over the past several years by the Department of State’s Office of the Legal Adviser and the Justice Department’s Office of International Affairs.

This historical bilateral agreement with the UAE will further strengthen relations and advance law enforcement cooperation between the two countries. The MLAT will improve and streamline U.S. law enforcement’s ability to obtain and exchange evidence needed for investigations and prosecutions and deepen the cooperation against terrorism and transnational organized crime, including cybercrime. The treaty removes onerous procedural obstacles to cooperation while ensuring adherence to the protections of the U.S. Constitution and other laws.

Present at the signing were officials from the Justice Department’s Office of International Affairs, U.S. Department of State, U.S. Embassy Abu Dhabi, FBI and the UAE’s Ministry of Justice and Ministry of Foreign Affairs and International Cooperation.

The new agreement enhances bilateral relations by affording both nations with improved information-sharing and creates a regularized and streamlined channel for obtaining law enforcement assistance. The MLAT will better enable prosecutors to exchange information facilitating the prevention, investigation and prosecution of crime. It will improve cooperation in the fight against terrorism, cybercrime, drug trafficking, bulk cash smuggling, money laundering, fraud and other serious transnational criminal offenses. 

Following a trial that lasted nearly five weeks, a federal jury in St. Paul, Minnesota, found three former Minneapolis Police Department (MPD) officers guilty of federal civil rights offenses arising out of the death of George Perry Floyd Jr. on May 25, 2020.

Former MPD Officers Tou Thao and J. Alexander Kueng were found to have deprived Mr. Floyd of his constitutional right to be free from an officer’s unreasonable force when each willfully failed to intervene to stop former MPD Officer Derek Chauvin’s use of unreasonable force, resulting in bodily injury to and the death of Mr. Floyd. Thao, Kueng and former MPD Officer Thomas Lane also were found to have deprived Mr. Floyd of his constitutional right to be free from a police officer’s deliberate indifference to his serious medical needs when they saw him restrained in police custody in clear need of medical care and willfully failed to aid him, resulting in bodily injury to and the death of Mr. Floyd. Both offenses are violations of Title 18, U.S. Code, Section 242.

The convictions announced today are separate from and in addition to any and all charges the State of Minnesota has brought against these former officers related to the death of Mr. Floyd. The federal charges addressed civil rights offenses that criminalize violations of the U.S. Constitution.

“Today’s verdict recognizes that two police officers violated the Constitution by failing to intervene to stop another officer from killing George Floyd, and three officers violated the Constitution by failing to provide aid to Mr. Floyd in time to prevent his death,” said Attorney General Merrick B. Garland. “The Justice Department will continue to seek accountability for law enforcement officers whose actions, or failure to act, violate their constitutional duty to protect the civil rights of our citizens. George Floyd should be alive today.”

Co-defendant Derek Chauvin previously entered a guilty plea in connection with the federal case. Chauvin pleaded guilty to willfully depriving Mr. Floyd of his constitutional rights while Chauvin was serving as an MPD officer. Chauvin also acknowledged that his conduct resulted in death and that he acted in callous and wanton disregard of the consequences to Mr. Floyd’s life. In addition, Chauvin was tried in state court and convicted of second-degree murder. In 2021, Chauvin was sentenced in state court to 22.5 years in prison.

Evidence presented at the federal trial for defendants Thao, Kueng and Lane established that on May 25, 2020, then-MPD Officer Chauvin held his knees on Mr. Floyd’s neck and back as Mr. Floyd lay on the ground, handcuffed and unresisting. As soon as Mr. Floyd was on the ground, Chauvin placed his knee on the back of Mr. Floyd’s neck, while Kueng placed his knee on Floyd’s lower body. Chauvin would not remove his knee for the next nine minutes and 29 seconds, and Kueng maintained his position for the next eight minutes and 11 seconds. Throughout this period, Mr. Floyd pleaded with officers 25 times to let him breathe.

As Mr. Floyd lost consciousness and a pulse, Chauvin and Kueng maintained their positions on his body. Even as Mr. Floyd ceased movement and stopped speaking, and even as Lane noted that Mr. Floyd was “passing out” and Kueng said he could not find a pulse, none of the CPR-certified defendants did anything to stop Chauvin from keeping his knee on Mr. Floyd’s neck or to render the medical aid that they were trained and required to provide. Even as EMTs arrived and checked Mr. Floyd’s pupils and pulse, Chauvin did not move his knee and the other officers on scene did not render aid to Mr. Floyd.

Firefighters and EMTs unsuccessfully attempted to revive Mr. Floyd on the way to the hospital, where he was pronounced dead. The county medical examiner ruled Mr. Floyd’s death was a homicide due to cardiopulmonary arrest complicating law enforcement subdual, restraint and neck compression.

After the incident, an MPD supervisor and, later, an MPD lieutenant, spoke with Lane and Kueng. On both occasions, Lane and Kueng both omitted that Chauvin had knelt on Mr. Floyd’s neck, that Mr. Floyd had been restrained on his stomach for nine and a half minutes, that Mr. Floyd had lost consciousness, and that officers had not been able to find a pulse. Additionally, Kueng told the supervisor that Mr. Floyd did not stop moving until after an ambulance arrived on scene, which he admitted at trial was false. At trial, the MPD lieutenant testified that, after watching video taken by a bystander, he realized that what he was told and what was on the video was “totally different.” He further testified that if an MPD officer observed another officer using too much force or doing something illegal, the officer has a duty to intervene to stop it, regardless of rank or seniority. Testimony offered at trial established that this duty to intervene is enshrined in MPD policy and is a component of the police department’s training program.

Evidence presented at trial also showed that MPD officers were required to complete emergency medical responder (EMR) training prior to entering the police academy, which includes CPR training. Further, MPD policy requires officers to determine if a subject is injured after a use of force and to render medical aid as soon as reasonably practical and requires officers assisting a person experiencing a medical crisis to provide first aid while awaiting EMS.

The jury found that the defendants disregarded this training and willfully violated Mr. Floyd’s constitutional rights. Kueng and Thao failed to intervene to stop Chauvin’s use of unlawful force and all three defendants failed to provide aid to Mr. Floyd as he suffered a medical emergency at the hands of a fellow police officer.  

The jury found that the defendants disregarded this training and willfully violated Mr. Floyd’s constitutional rights. Kueng and Thao failed to intervene to stop Chauvin’s use of unlawful force and all three defendants failed to provide aid to Mr. Floyd as he suffered a medical emergency at the hands of a fellow police officer.  

No sentencing date has been set. The statutory maximum sentence for the death-resulting violation of Section 242 is life in prison.

Attorney General Merrick B. Garland, Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, Acting U.S. Attorney Charles J. Kovats and Special Agent in Charge Michael F. Paul of the FBI’s Minneapolis Division announced today’s verdict.

The investigation was conducted by the FBI with the cooperation of the Minnesota Bureau of Criminal Apprehension. The case is being prosecuted by Special Litigation Counsel Samantha Trepel and Trial Attorney Tara Allison of the Justice Department’s Civil Rights Division, and Assistant U.S. Attorneys Samantha Bates, LeeAnn Bell, Evan Gilead, Manda Sertich and Allen Slaughter of the District of Minnesota.

A federal judge in Valdosta, Georgia, yesterday sentenced Ashtyn Michael Rance, 35, to 33 months in prison on each count to run concurrently, a $4,300 fine and three years of post-release supervision. The judge also prohibited Rance from possessing or selling wildlife during the supervisory period. Rance pleaded guilty on Nov. 18, 2021, to violating the Lacey Act and unlawfully possessing firearms.

In pleading guilty, Rance admitted that on Feb. 22, 2018, he shipped three eastern box turtles and 16 spotted turtles from Valdosta to a customer in Florida, in a package falsely labeled as containing tropical fish and common lizards. He was paid $3,300 for the turtles and knew they were being subsequently trafficked to China. 

Rance further admitted that on May 10, 2018, he shipped 15 Gaboon vipers from Valdosta to Florida. The snakes were worth approximately $900 and also headed to a buyer in China. He falsely labeled the package as containing harmless reptiles and ball pythons. Rance had legally imported 100 Gaboon vipers and other venomous snakes from Africa to Atlanta. He received a special permit to transport the snakes out of Georgia, but he later returned to Valdosta with 16 vipers. 

Rance possessed and sold the reptiles in violation of Georgia laws. The federal Lacey Act is the nation’s oldest wildlife trafficking statute and prohibits, among other things, transporting wildlife in interstate commerce if the wildlife is illegal under state laws. It is also a Lacey Act violation to falsely label a package containing wildlife.

The spotted turtle (Clemmys guttata) is a semi-aquatic turtle native to the eastern United States and Great Lakes region. The eastern box turtle (Terrapene carolina carolina) is endemic to forested regions of the East Coast and Midwest. Collectors prize both species in the domestic and foreign pet trade market, where they are resold for thousands of dollars. The Gaboon viper (Bitis gabonica) is native to central Sub-Saharan Africa. Its venom can cause shock, loss of consciousness or death in humans. Authorities intercepted the package containing the vipers to minimize the risk of a bite or escape.

Additionally, Rance acknowledged that he possessed a Bushmaster Carbine .223 caliber rifle and Mossberg 12-gauge shotgun in his Valdosta residence that he was prohibited from owning as a convicted felon.

The U.S. Fish and Wildlife Service Office of Law Enforcement in Vero Beach, Florida, ATF and the Georgia Department of Natural Resources conducted the investigation as part of Southern Surge Task Force’s Operation Middleman. The operation focused on the trafficking of reptiles from the United States to China. The government is represented by Trial Attorney Ryan Connors of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Sonja Profit for the Middle District of Georgia.

On Feb. 23, the United States filed a complaint seeking an order prohibiting John Hugo Eickhoff Jr., Rhonda Kaye Eickhoff, Hoffmann Associates LLC, Aric Elliot Schreiner, Columbia CPA Group LLC, John Williams Gray II and Damon Thomas Eisma from organizing, promoting or selling an allegedly unlawful tax scheme involving the use of charitable remainder annuity trusts (CRATs). The government allegations detail the defendants’ involvement with at least 70 CRATs, in a scheme that has resulted in an estimated $40 million of taxable income going unreported and at least $8 million in tax revenue losses.

According to the complaint filed in the U.S. District Court for the Western District of Missouri, defendants falsely claim that customers following their CRAT scheme can sell property in a way that eliminates the federal tax on the income generated. Specifically, the government alleges that each defendant participates in one or more of the following steps involved in the scheme: (1) convincing customers to contribute property to a CRAT (usually real property that has gained value over time); (2) unlawfully inflating (stepping-up) the cost basis in the property; (3) selling the property to purchase an annuity; and (4) falsely reporting the annuity payments received by the customers as tax-free distributions of income made by the CRAT. The complaint further alleges that the defendants know or have reason to know that their statements to customers about the supposed tax benefits of the transaction they promote are false or fraudulent.

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

The IRS warns taxpayers to be wary of scams that involve claiming inflated charitable contribution deductions and recommends anyone who may have improperly claimed such deductions to consult a tax professional. Guidelines for valuing and deducting property donations to charity can be found in Publication 526 and Publication 561, available on IRS.gov.

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

The Department of Justice, together with Attorneys General in Minnesota and New York, filed a civil lawsuit today to stop UnitedHealth Group Incorporated (United) from acquiring Change Healthcare Inc. (Change). The complaint, filed in the U.S. District Court for the District of Columbia, alleges that the proposed $13 billion transaction would harm competition in commercial health insurance markets, as well as in the market for a vital technology used by health insurers to process health insurance claims and reduce health care costs.

“Quality health insurance should be accessible to all Americans,” said Attorney General Merrick B. Garland. “If America’s largest health insurer is permitted to acquire a major rival for critical health care claims technologies, it will undermine competition for health insurance and stifle innovation in the employer health insurance markets. The Justice Department is committed to challenging anticompetitive mergers, particularly those at the intersection of health care and data.”

“The proposed transaction threatens an inflection point in the health care industry by giving United control of a critical data highway through which about half of all Americans’ health insurance claims pass each year,” said Principal Deputy Assistant Attorney General Doha Mekki of the Justice Department’s Antitrust Division. “Unless the deal is blocked, United stands to see and potentially use its health insurance rivals’ competitively sensitive information for its own business purposes and control these competitors’ access to innovations in vital health care technology. The department’s lawsuit makes clear that we will not hesitate to challenge transactions that harm competition by placing so much control of data and innovation in the hands of a single firm.”

As alleged in the complaint, the proposed transaction would give United, a massive company that owns the largest health insurer in the United States, access to a vast amount of its rival health insurers’ competitively sensitive information. Post-acquisition, United would be able to use its rivals’ information to gain an unfair advantage and harm competition in health insurance markets. The proposed transaction also would eliminate United’s only major rival for first-pass claims editing technology — a critical product used to efficiently process health insurance claims and save health insurers billions of dollars each year — and give United a monopoly share in the market.

The proposed acquisition would eliminate an independent and innovative firm, Change, that today provides a variety of participants in the health care ecosystem, including United’s major health insurance competitors, with vital software and services. This includes electronic data interchange (EDI) clearinghouse services, which transmit claims and payment information between insurers and providers, and first-pass claims editing solutions, which review claims under the health insurer’s policies and relevant treatment protocols. Indeed, Change markets itself as a valuable partner for insurers, working closely with them to innovate and problem-solve. United’s acquisition of this neutral player would allow United to tilt the playing field in its favor, harming current competition and allowing United to control and distort the course of innovation in this industry for the foreseeable future.

UnitedHealth Group Incorporated is headquartered in Minnetonka, Minnesota. United is an integrated health care enterprise that includes, among other subsidiaries, UnitedHealthcare, the largest health insurer in the United States; Optum Health, a large network of health care providers located throughout the country; OptumRx, a large pharmacy benefit manager; and OptumInsight, a health care technology business. United’s revenues were $288 billion in 2021.

Change Healthcare Inc. is headquartered in Nashville, Tennessee. Change is a leading independent health care technology company providing health care analytics, software, services and data to health care providers, health insurers and other software and services firms in the health care industry. Change’s revenues were $3.4 billion in 2021.

Today, the Justice Department filed suit against the Unified Judicial System of Pennsylvania (UJS) for violating the Americans with Disabilities Act (ADA). The department previously notified the UJS that its courts had engaged in discrimination by prohibiting or limiting the use of lawfully prescribed medication to treat Opioid Use Disorder (OUD) by individuals under court supervision. That letter of findings demanded that the UJS address the civil rights violations identified by the Justice Department’s Civil Rights Division and the U.S. Attorney’s Offices for the Eastern, Middle and Western Districts of Pennsylvania.

The Justice Department identified three individuals with OUD who were discriminated against by UJS Courts — specifically, the Northumberland and Jefferson County Courts of Common Pleas. Two individuals alleged that the Jefferson County Court ordered all probationers to stop using their prescribed medication for OUD. A third individual alleged that the Northumberland County Court required her to stop using her prescribed OUD medication to graduate from drug court. The department’s investigation corroborated these allegations and additionally found evidence that other UJS Courts have policies that discriminate against individuals with OUD.

“This lawsuit aims to safeguard the rights of people with Opioid Use Disorder who are too often subject to discrimination rooted in stereotypes and myths rather than in science,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Court-involved individuals with Opioid Use Disorder deserve access to medications needed to support their recovery and to break the cycles of addiction. We hope that this lawsuit against the Unified Judicial System of Pennsylvania sends a strong message about the need for courts to protect the rights of individuals with Opioid Use Disorder.”

If you believe that a Pennsylvania court prohibited or limited your use of lawfully prescribed medication to treat OUD, please email PennCourts.OUD@usdoj.gov. For more information on the ADA, please call the Department’s toll-free ADA Information Line at 1-800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. For more information on the Civil Rights Division, please visit www.justice.gov/crt. The letter can be viewed here. The complaint can be viewed here.

Associate Attorney General Vanita Gupta announced at a webinar today two new training and technical assistance (TTA) resources from the Department of Justice Office on Violence Against Women (OVW): the National Violence Against Women Law Enforcement Training and Technical Assistance Consortium (LETTAC) and the Domestic Violence Resource for Increasing Safety and Connection (DV RISC).

“Reducing violent crime is a top priority for the Department of Justice, and combating domestic violence and sexual assault are important parts of the department’s comprehensive strategy to reduce violent crime,” said Associate Attorney General Gupta. “We cannot reduce, prevent or end violence without providing law enforcement agencies with the tools, training and resources they need. I am proud to introduce LETTAC and DV RISC, as new tools to help law enforcement agencies best respond to, investigate and ultimately prevent domestic violence, sexual assault and stalking by delivering innovative and evolving training and technical assistance to grantees and the field in a more efficient, effective manner.”

“Ensuring that law enforcement and jurisdictions have access to survivor-centered and trauma-informed resources is critical to address and prevent gender-based violence in our communities,” said Principal Deputy Director Allison Randall of OVW. “LETTAC and DV RISC not only fulfill this key role, but also expand training and technical assistance to underserved communities, including rural areas and Tribal lands, helping countless survivors access the justice they seek.”

LETTAC is a single-entry point for law enforcement agencies – including police and sheriffs’ offices as well as prosecutors, civilian staff and campus police – to request TTA in responding to, investigating and prosecuting domestic and dating violence, sexual assault and stalking cases. Planning is also underway to ensure LETTAC resources address the intersection of human trafficking with domestic violence, dating violence, sexual assault and stalking with a focus on Tribal grantees and potential grantees. LETTAC delivers TTA more efficiently, maximizing resources while minimizing duplication and, crucially, promoting collaboration. The LETTAC resource center includes a portal to request TTA; a clearinghouse of webinars, podcasts, publications and other tools; and a learning center to provide quality training for users. Ensuring inclusivity is central to LETTAC’s mission to providing TTA services and support for all justice practitioners, including those in underserved areas, culturally specific communities, and American Indian and Alaska Native jurisdictions. LETTAC will partner with AEquitas to provide training to prosecutors.

DV RISC is a national resource center to help communities prevent domestic violence homicide. The DV RISC website provides multidisciplinary tools and TTA to jurisdictions seeking a coordinated response. Users can obtain access to TTA providers and subject matter experts; on-site and virtual strategic planning assistance; culturally specific TTA providers to ensure diverse and inclusive community engagement; and peer-to-peer learning with communities that have implemented domestic violence homicide prevention strategies. Working in collaboration with Ujima and Esperanza United, DV RISC is led and informed by individuals who have been impacted by intimate partner and domestic violence homicides, ensuring that communities using DV RISC create prevention strategies that are informed by the voices of survivors.

Both LETTAC and DV RISC support the Justice Department’s comprehensive strategy for reducing violent crime.

About the Office on Violence Against Women

The Office on Violence Against Women 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 Justice Department announced today that Jose Gomez III, 21, of Midland, Texas, pleaded guilty to three counts of committing a hate crime for attacking an Asian family he believed was responsible for the COVID-19 pandemic because he believed them to be Chinese.

According to documents filed in connection with the plea, Gomez entered a Sam’s Club Warehouse in Midland, Texas, behind an Asian family with young children on March 14, 2020. Gomez had never seen the family before and believed they were Chinese. Gomez followed the Asian family in the store for several minutes because he perceived them to be a “threat” as they were “from the country who started spreading that disease around.” Gomez then momentarily left the family to find a serrated steak knife in the store. Gomez bent the blade so that when he held the handle in his fist, the blade rested against his knuckles, sharp-edge facing outward. Gomez returned to the Asian family and punched the father, identified by the initials B.C., in the face, cutting him. Gomez then left the scene, only to retrieve an eight-inch knife from the store. 

When Gomez returned, he abruptly went after B.C.’s two young children – then aged 6 and 2 years old – who were seated in the front basket of the shopping cart.  Gomez slashed open the face of R.C., the then-six-year-old child. The blade entered millimeters from R.C.’s right eye, split his right ear, and wrapped around to the back of his skull. Gomez also stabbed a white Sam’s Club employee who intervened to stop Gomez from further assaulting the Asian family. While being held down on the ground, Gomez yelled at the Asian family, “Get out of America!”

Gomez admitted after his attack that he believed the Asian family was Chinese and he blamed them for the COVID-19 pandemic. Gomez further admitted he had attempted to kill the 6-year-old child. Gomez also admitted he had attacked the store employee because Gomez wanted to kill the 6-year-old child and the store employee was preventing him from doing so.

“An Asian family was shopping when the defendant brutally attacked them because of their race and because he blamed them for the COVID-19 pandemic,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Racially motivated hate crimes targeting the Asian American community are on the rise and have no place in our society today. All people deserve to feel safe and secure living in their communities, regardless of race, color or national origin.”

“The defendant violently and horrifically attacked an unsuspecting innocent family because of how they looked and where he thought they came from,” said U.S. Attorney Ashley C. Hoff of the Western District of Texas. “This type of hate-based violence has no place in our society and will not be tolerated. These victims and others who suffer such brutal, hate-based attacks deserve justice and to live without fear in our communities. We will continue to vigorously enforce federal laws that protect civil rights and combat bias-motivated violence.”

"No one should be afraid to go shopping or feel like they could be targeted by an act of violence based on their race, ethnicity, religion, disability, sexual orientation, gender or gender identity, country of national origin, or immigration status,” said Special Agent in Charge Jeffrey Downey of the FBI El Paso Field Office. “Acts of hate and racism have no place in our community and will not be tolerated. The FBI encourages people who have been victims or witnessed a hate crime to contact the FBI at 1-800-CALL-FBI.”

Gomez faces a maximum sentence of life in prison and for each offense, a $250,000 fine.

The case was investigated by the Midland Police Department and the FBI. The case is being prosecuted by Assistant U.S. Attorney Glenn Harwood of the Western District of Texas and Trial Attorney Angie Cha of the Civil Rights Division’s Criminal Section.

A former Clare, Michigan, hotel manager pleaded guilty today to filing a false tax return. His father, the owner of the hotel, also pleaded guilty to witness tampering in an effort to obstruct the grand jury’s investigation of his son.

According to court documents, Harold Walls, 58, managed the day-to-day operations of a Clare hotel, which his father, Karl Walls, 86, owned. Harold Walls did not report to the IRS any of the income he received from working at the hotel from 2013 through 2017. Rather than pay himself wages directly through the hotel’s payroll system, Harold Walls paid himself by other means, including by writing checks to himself from the hotel operating account and using a hotel bank account to pay for personal expenses.

Harold Walls also provided false and incomplete information to the hotel’s tax return preparer for 2012 through 2017, resulting in the hotel’s business income being understated. Specifically, Harold Walls did not disclose to the tax return preparer that the hotel had 11 “off-book” rooms that were not tracked in the hotel’s reservation system. Harold Walls also provided the return preparer documents that overstated the amount of property taxes the hotel had paid to the City of Clare.

After the IRS began its investigation, Harold Walls obstructed the investigation by instructing a hotel employee to make false statements to the IRS about the nature and extent of his work at the hotel. He also denied to IRS special agents that he was employed at the hotel.

Karl Walls also obstructed the investigation of his son by directing two witnesses to lie to the grand jury. In October 2018, two days before a former hotel employee was scheduled to provide grand jury testimony, Karl Walls instructed the employee to testify that Harold Walls did not work at the hotel. Karl Walls also attempted to convince his tax return preparer to make a similar false statement to the grand jury about his son’s employment status.

Both sentencings are scheduled for a later date. Harold Walls faces a maximum penalty of three years in prison for filing a false tax return, and Karl Walls faces a maximum penalty of 20 years in prison for witness tampering. Both men also face a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. 

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement and thanked the U.S. Attorney’s Office for the Eastern District of Michigan for providing substantial assistance in this matter.

IRS-Criminal Investigation is investigating the case.

Trial Attorneys Melissa S. Siskind and Sam Bean of the Tax Division are prosecuting the case.

James Theodore Highhouse, 49, a former chaplain with the Federal Bureau of Prisons (BOP) pleaded guilty today in federal court in the Northern District of California to five felonies for sexually abusing a female inmate and subsequently lying to federal agents during their investigation into his misconduct.

According to court documents, from May 15, 2018, through Feb. 9, 2019, Highhouse was employed by the BOP as a corrections worker and chaplain, and was assigned to work at FCI-Dublin, a federal prison that houses female inmates. In his role as a prison chaplain, he led religious services, and offered spiritual guidance to the female inmates. He also taught religious-based classes about boundaries and self-worth, with the understanding that many inmates with whom he interacted came from a background of trauma, abuse, and substance addiction. Highhouse met with these inmates in group settings and one-one-one in his office. At times, Highhouse also performed a custodial role, that is, he could handcuff inmates, write up incident reports and refer inmates for disciplinary action.

During the aforementioned time period, the victim, one of the female inmates housed at FCI-Dublin, came to see Highhouse for spiritual guidance. Highhouse met with her alone in his office on multiple occasions. As part of his guilty plea, Highhouse admitted that during the meetings in his office, he sexually abused the victim. He did so despite receiving training on maintaining boundaries with inmates, and attending yearly BOP refreshers about sexual abuse and prevention.

Then, once the FBI and the Department of Justice’s Office of the Inspector General (Department of Justice- OIG) opened a federal investigation into his allegations that he sexually abused an inmate, Highhouse lied to federal agents about his misconduct. Specifically, on Feb. 21, 2019, during a voluntary interview with federal agents, he knowingly made false statements when he denied engaging in sexual acts and sexual contact with the victim. Then, during a follow up interview on Feb. 3, 2020, he again misled federal agents, when he again falsely denied engaging in such conduct. Highhouse acknowledged that he repeated those denials even though on Aug. 14, 2019, he handwrote a statement, admitting that he engaged in sexual acts and sexual contact with the victim.

“Any law enforcement official who exploits their authority and position as a spiritual counselor, particularly by sexually abusing an inmate in their custody, must be held accountable for their actions,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will not stand for abuse and misconduct by its own law enforcement officials, and we will take action wherever needed to hold perpetrators accountable under the law.”

“The FBI and our Department of Justice-OIG partners take all allegations of sexual misconduct by employees of federal prisons seriously and are committed to swiftly investigating violations under the color of authority at all levels,” said Special Agent in Charge Craig D. Fair of FBI San Francisco.

“Highhouse held a position of great trust as a prison chaplain. He exploited this trust and sexually abused an inmate under his care, and then lied in an effort to cover up his crimes,” said Special Agent in Charge Zachary Shroyer of the Department of Justice Office of the Inspector General Los Angeles Field Office. “The Department of Justice Office of the Inspector General will continue to root out this kind of abuse and bring the perpetrators to justice.”

A sentencing date has been set for July 6. Highhouse faces a maximum penalty of up to 39 years in prison.

This case is being investigated by the San Francisco Division of the FBI and the Los Angeles Field Office of the Department of Justice-OIG. The case is being prosecuted by Special Litigation Counsel Fara Gold of the Criminal Section of the Civil Rights Division of the Justice Department.

Following a two-week trial, three Georgia men were convicted today by a federal jury in the Southern District of Georgia for committing hate crimes and attempting to kidnap Ahmaud Arbery, a young Black man who was jogging on the public streets of a Brunswick neighborhood. Two of the men were also convicted of charges that they used firearms during that crime of violence.

Travis McMichael, 35; Travis’s father, Gregory McMichael, 65; and William “Roddie” Bryan, 51, were each convicted of one count of using force and threats of force to intimidate and interfere with Mr. Arbery’s right to use a public street because of his race.

In addition to the hate crime charges, the defendants were found guilty of attempted kidnapping. Finally, Travis McMichael was found guilty of using, carrying, brandishing, and discharging a Remington shotgun in the course of the hate crime, and Gregory McMichael was found guilty of using, carrying, and brandishing a .357 Magnum revolver. 

“Today’s verdict makes clear that the Justice Department will continue to use every resource at its disposal to confront unlawful acts of hate, and to hold accountable those who perpetrate them,” said Attorney General Merrick B. Garland. “Although we welcome the jury’s verdict, the only acceptable outcome in this matter would have been Mr. Arbery returning safely to his loved ones two years ago. No one in this country should have to fear the threat of hate fueled violence. No one should fear being attacked or threatened because of what they look like, where they are from, whom they love, or how they worship. And no one should fear that if they go out for a run, they will be targeted and killed because of the color of their skin.”

Evidence at trial revealed that on Feb. 23, 2020, defendants Travis and Gregory McMichael armed themselves with a Remington shotgun and a .357 Magnum revolver, respectively, and chased Mr. Arbery. The pursuit passed by the home of defendant William “Roddie” Bryan, who did not know Mr. Arbery, but decided to get into his own truck to join the McMichaels in their pursuit of Mr. Arbery. For four to five minutes, the three defendants pursued Mr. Arbery through the neighborhood and tried to box in Mr. Arbery with their trucks. During the chase, Mr. Arbery was running with his hands empty and in plain view. He never spoke a word to the defendants, and never made any threatening sound or gesture; rather, he repeatedly tried to run away from the defendants. Ultimately, after Mr. Arbery had already changed direction multiple times, trying to escape from the defendants, Travis McMichael got out of his truck and pointed a shotgun directly at Mr. Arbery. When Mr. Arbery tried to defend himself, Travis McMichael shot him in the chest. Mr. Arbery, wounded, grabbed for the gun. During a struggle over the gun, Travis McMichael fired two more shots into Mr. Arbery, who then stumbled a few steps and fell face-first onto the pavement, where he died in the street.

Evidence at trial revealed that the defendants had strongly held racist beliefs that led them to make assumptions and decisions about Mr. Arbery that they would not have made if Mr. Arbery had been white.

Travis McMichael’s social media comments and text messages to friends showed that he had for many years associated Black people with criminality and had expressed a desire to see Black people — particularly those he viewed as criminals — harmed or killed, and that he had expressed support for vigilante efforts to catch or harm criminals. 

Witnesses testified about deeply racist comments Gregory McMichael made to people he barely knew. One witness testified that during a brief encounter in a professional capacity, she commented, in passing, that it was “too bad” that Julian Bond, a Black Georgia civil rights leader, had recently passed away; Gregory angrily responded with a five-minute rant about Black people and said that he wished Mr. Bond had “been put in the ground years ago. He was nothing but trouble. Those Blacks are nothing but trouble.” 

William Bryan’s text messages revealed that when defendant Bryan learned, just four days before the shooting, that his daughter was dating a Black man, he referred to the boyfriend as a “ni---” and as a “monkey.” There were other messages on social media in which Bryan referred to other Black people using those slurs and another racial slur: “bootlip.” When the police spoke to Bryan about Mr. Arbery’s death, he admitted that he had never seen or heard anything about Mr. Arbery before; he just saw a Black guy being chased and figured he must have done something wrong, and that his “instinct” told him that Mr. Arbery must be a thief or that maybe had shot someone.

The evidence at trial proved that race formed a but-for cause of the defendants’ actions on Feb. 23, 2020, meaning that, without that factor, the defendants would not have chased down a Black man whom they assumed, without evidence, was a criminal.

All three defendants face sentences of up to life in prison.

All three defendants were previously convicted in a separate state trial with felony murder and multiple other felonies for their roles in Mr. Arbery’s killing. The McMichaels were each sentenced to life imprisonment without the possibility of parole; Bryan was sentenced to life imprisonment with the possibility of parole.

The announcement was made by Attorney General Garland, Assistant Attorney General Kristen Clarke of the Justice Department's Civil Rights Division, U.S. Attorney David Estes of the Southern District of Georgia, and Acting Special Agent in Charge Philip Wislar of the FBI.

This case was investigated by both the Georgia Bureau of Investigation and the FBI, and is being prosecuted by Assistant U.S. Attorney Tara Lyons of the Southern District of Georgia, and Deputy Chief Bobbi Bernstein and Special Litigation Counsel Christopher J. Perras of the Civil Rights Division.

A Texas man was sentenced today to one year in prison for willfully failing to file tax returns.

According to court documents, Arturo Alejandro Cruz, of Houston, did not file tax returns with the IRS from 2011 through 2017 despite earning more than the minimum filing threshold each year. In 2012, for example, Cruz earned more than $460,000 from his co-ownership of a commercial construction business and the sale of that business. Cruz deposited some of this income into a bank account he held in the name of a shell company. Cruz spent the funds on personal items such as real estate and gambling.

In addition to the term of imprisonment, U.S. District Judge Kenneth M. Hoyt ordered Cruz to serve one year of supervised release and to pay approximately $164,032 in restitution to the IRS.

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 William Montague and Parker Tobin of the Tax Division prosecuted the case.

Assistant Attorney General Kristen Clarke and U.S. Attorney Timothy M. O’Shea of the Western District of Wisconsin, today announced the conviction of Cory Hereford, 50, of Beloit, Wisconsin, on charges of sex trafficking, conspiracy to commit sex trafficking, maintaining a property for the purposes of distributing and using controlled substances, and of having committed sex trafficking of a minor while being a person previously convicted of a crime that required registering as a sex offender. The jury reached a verdict yesterday evening after five hours of deliberation following a four-day trial in federal court in Madison.

The government presented evidence at trial that Hereford targeted vulnerable young women struggling with drug addition, one of whom was a minor – 16 years old at the time – to engage in commercial sex. He enticed the victims with access to heroin, and in some instances threatened to withhold the heroin to induce withdrawal sickness as a means of compelling the victims to engage in prostitution for his profit. In other instances, Hereford threatened physical violence to achieve his criminal ends. 

The evidence demonstrated that Hereford conspired with his co-defendant, Tonyiel Partee, 30, of Janesville, Wisconsin, to recruit victims and compel their commercial sex work. Partee pleaded guilty to conspiracy to commit sex trafficking in July 2021. Other evidence at trial showed that Hereford maintained a home on S. Franklin Street in Janesville, for the purposes of distributing and using controlled substances, specifically heroin and cocaine. Hereford was previously convicted of second-degree sexual assault of a child in the State of Wisconsin, which required him to register as a sex offender.

“This defendant preyed on vulnerable members of our society – young women and girls addicted to drugs,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Using their addictions to lure them deeper into the world of drugs and prostitution, he trafficked these victims for his own greed, without regard to their age, their pain, or their safety. We will continue to enforce our human trafficking laws to restore freedom and dignity to victims of this crime.”

“Mr. Hereford targeted and exploited young and vulnerable women, forcing them into commercial sex to generate income for him,” said U.S. Attorney Timothy O’Shea of the Western District of Wisconsin. “I commend the trial team, investigators, and victim advocates for their commitment and diligence. These guilty verdicts show that my office and Wisconsin law enforcement are united against sex trafficking.” 

“The Janesville Police Department appreciates the assistance of our federal partners on this important and complex case,” said Chief David J. Moore of the Janesville Police Department. “This investigation illustrates the methods that human traffickers use by exploiting our most vulnerable children. Contrary to the beliefs of many, these criminals do not abduct these victims on a street corner but cultivate the victims over a lengthy period of time. As a community, we need to understand these appalling methods and look out for those in our community that may fall prey to these criminals. We need to learn that when we see suspicious activity, report it to a responsible authority.”  

The court will sentence Hereford on May 12. The sex trafficking charge involving a minor carries a mandatory minimum penalty of 10 years and a maximum of life in federal prison. The charge of committing a crime involving a minor while a committed felon required to register as a sex offender has a mandatory 10-year penalty that federal law requires be served consecutive to any sentence imposed on the sex trafficking of a minor. The charge of maintaining a drug house has a maximum penalty of 20 years.

The case was investigated by Janesville Police Department, with the assistance of Wisconsin Department of Justice, Division of Criminal Investigation, and the Rock County Sheriff’s Office. It is being prosecuted by Assistant U.S. Attorney Julie Pfluger of the Western District of Wisconsin, and Trial Attorney Slava Kuperstein of the Civil Rights Division’s Human Trafficking Prosecution Unit.

A Pakistani man was sentenced today in the Northern District of Illinois for a health care fraud scheme and money laundering conspiracy.

Muhammad Ateeq, 33, of Rawalpindi, Pakistan, was sentenced to 12 years in prison and ordered to pay approximately $48 million in restitution. In addition, Judge Manish Shah ordered the forfeiture of a $2.4 million cashier’s check and over $1 million in cash.

According to court documents, Ateeq worked in the Islamabad office of Home Health Care Consulting, an entity that controlled Medicare billing and maintenance of electronic medical records for over 20 home health agencies located in Illinois, Indiana, Nevada and Texas. While working at Home Health Care Consulting, Ateeq used a variety of fake identities, including “Nilesh Patel,” “Sanjay Kapoor” and “Rajesh Desai,” to acquire and manage home health agencies in the United States. Once the agencies were under Ateeq’s control, Ateeq caused the agencies to submit fraudulent claims to Medicare for home health services, resulting in over $40 million in payments for services that were never rendered.

As part of the money laundering conspiracy, Ateeq directed his U.S. employees to deposit checks of fraud proceeds into U.S. bank accounts designated by overseas customers of overseas money transmitting businesses. The money transmitting businesses then issued cash payments to Ateeq in Pakistan, as well as deposits into bank accounts in Pakistan under Ateeq’s control. Ateeq also directed U.S. employees to use fraud proceeds to purchase expensive watches and other luxury items in the United States and then deliver the items to Ateeq’s associates in Dubai.

Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney John R. Lausch, Jr. for the Northern District of Illinois; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent-in-Charge Emmerson Buie Jr. of the FBI Chicago Field Office; and Principal Deputy Inspector General Christi A. Grimm of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.

The FBI Chicago Field Office and HHS-OIG investigated the case.

Trial Attorney Sarah Wilson Rocha of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Jeremy Daniel and Patrick Mott of the Northern District of Illinois prosecuted the case.

A federal grand jury in Portland, Oregon, returned an indictment today charging an Oregon Department of Human Services employee with kidnapping a woman with significant disabilities in his care, driving her to a secluded location, and engaging with her in sexual misconduct.

Zakary Glover, 28, of Lebanon, Oregon, is charged with depriving the victim of her constitutional right to bodily integrity, while acting under color of law. The indictment alleged that his conduct included attempted sexual abuse and kidnapping. Glover is also charged with kidnapping.

According to the indictment, Glover served as a direct support crisis specialist for the Oregon Department of Human Services, Office of Developmental Disabilities Stabilization and Crisis Unit (SACU). SACU operates several 24-hour crisis residential programs in Oregon that serve individuals with intellectual and developmental disabilities. Glover was tasked with ensuring the health, safety and security of the individuals who lived at the residential facility where he worked. The victim, who has severe autism, cognitive deficits and communicates mostly by using pictures, videos and drawings, was one of the individuals under Glover’s care.

As part of his duties, Glover took the victim on outings in a secure van to fast-food restaurants. On Nov. 2, 2021, while on an outing with the victim, Glover is alleged to have driven down a dead-end road toward a cemetery in Aumsville, Oregon. Upon reaching the dead-end, he parked the van, opened the passenger rear door where the victim was sitting, lowered his shorts, grabbed the victim and engaged in sexual misconduct.

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

Assistant Attorney General Kristen Clarke and U.S. Attorney Scott Erik Asphaug made the announcement.

This case is being investigated by the FBI's Portland Field Office with assistance from the Oregon State Police. It is being prosecuted by Assistant U.S. Attorney Gavin Bruce for the District of Oregon, and Special Litigation Counsel Fara Gold and Trial Attorney Daniel Grunert of the Civil Rights Division's Criminal Section.

An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.

A New York woman pleaded guilty today to employment tax crimes.

According to court documents, Catherine Manzione, of Queens, co-owned and operated All American Transit Mix Crop (All American), a concrete company, with her father, Rocco Manzione. From the second quarter of 2013 through the third quarter of 2017, Catherine and Rocco Manzione withheld federal employment taxes from the wages of All American’s employees, but they did not timely file All American’s employment tax returns, nor did they pay over the required taxes to the IRS. For the second quarter of 2017 alone, they did not pay more than $38,000 in payroll taxes they had withheld from their employees’ wages. In total, Catherine Manzione caused a tax loss to the IRS of approximately $311,135.

In addition to All American, Rocco Manzione owned and operated at least two other concrete companies. He previously pleaded guilty to payroll tax fraud and tax evasion related to his operation of all three companies. Rocco Manzione is scheduled to be sentenced on April 26.

Catherine Manzione is scheduled to be sentenced on May 25. She faces a maximum penalty of five years in 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 made the announcement.

IRS-Criminal Investigation is investigating the case.

Trial Attorneys Brittney Campbell and Kathryn Carpenter of the Tax Division are prosecuting the case.

A federal grand jury yesterday returned an eight-count indictment charging a Burlington County, New Jersey, couple with the forced labor and other crimes involving two undocumented individuals, Assistant Attorney General Kristen Clarke of the Justice Department's Civil Rights Division and U.S. Attorney Philip Sellinger announced today.

Bolaji Bolarinwa, 47, and Isiaka Bolarinwa, 65, both of Moorestown, New Jersey, are both charged with two counts of forced labor. Bolaji Bolarinwa is also charged with two counts of bringing in and harboring certain undocumented individuals and two counts of unlawful conduct with respect to documents in furtherance of forced labor. Both defendants appeared today by videoconference before U.S. Magistrate Judge Sharon A. King. 

According to the indictment from 2015 to 2016, Bolaji Bolarinwa unlawfully obtained labor and services from one victim by means of serious harm or threats of serious harm, and from another victim by means of force or threats of force. She abused and threatened abuse of legal process against both victims. Bolarinwa’s spouse, Isiaka Bolarinwa, participated in the scheme and financially benefitted from the victims’ forced labor.

Bolaji Bolarinwa knew that both victims had entered the United States illegally and harbored them from detection for her own financial gain. She confiscated and possessed the passports and visas of both victims.

Both defendants face a maximum penalty on each forced labor count of 20 years in prison. Bolaji Bolarinwa faces a maximum penalty on each undocumented individual harboring count of 10 years in prison and a maximum penalty on each unlawful document conduct count of five years in prison. They also each face a fine on each count of up to $250,000 or twice the gross gain or gross loss from the offense, whichever is greatest.

The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office for the District of New Jersey and Trial Attorneys Elizabeth Hutson and Vasantha Rao of the Department of Justice’s Civil Rights Division.

The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

The Justice Department today announced that it has filed proposed consent decrees with two obstetrician-gynecologist (OB/GYN) doctors in Bakersfield, California. The consent decrees, which are subject to approval by the U.S. District Court for the Eastern District of California, resolve the department’s lawsuits against the doctors, Umaima Jamaluddin MD, and Chibuike Enyereibe Anucha MD, PC, under the Americans with Disabilities Act (ADA). The department sued Dr. Jamaluddin and Dr. Anucha alleging violations of the ADA based on their refusal to provide routine medical care to a patient because the patient has HIV. Title III of the ADA prohibits doctors and other health care providers from discriminating against people with disabilities, including HIV.

One lawsuit alleged that Dr. Anucha told the patient that she needed a Pap smear and refused to perform it because the patient has HIV. The other lawsuit alleged that Dr. Jamaluddin refused to allow the same patient to make an appointment for routine preventative care because the patient has HIV.

“People with HIV have the right to equal access to doctors and medical services,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department remains steadfast in our commitment to eradicate discrimination against people with HIV and combat the spread of unfounded stereotypes and misinformation.”

“Of all people, medical providers should understand that erecting barriers to basic medical care based on an individual’s HIV status is unconscionable,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “It should not take a federal lawsuit to break down such barriers, however, the U.S. Attorney’s Office and our partners in the Civil Rights Division stand ready to litigate to vindicate the rights of individuals with disabilities.”

Under the consent decrees, the doctors have agreed to pay a total of $75,000 to the patient ($37,500 in each case) and to pay a $5,000 civil penalty to the United States in each case. The consent decrees also require the defendants to take and provide their staff with training; implement a non-discrimination policy; and comply with record-keeping obligations, including providing regular reports to the department.

These cases were handled jointly by the Disability Rights Section of the Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of California. For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at www.ada.gov/complaint.

View the Anucha consent decree here. View the Jamaluddin consent decree here.

The Justice Department today announced the selection and appointment of Eun Young Choi to serve as the first Director of the National Cryptocurrency Enforcement Team (NCET).

Ms. Choi is a seasoned prosecutor with nearly a decade of experience within the department, and most recently served as Senior Counsel to the Deputy Attorney General. She will assume her duties full-time effective today.

“With the rapid innovation of digital assets and distributed ledger technologies, we have seen a rise in their illicit use by criminals who exploit them to fuel cyberattacks and ransomware and extortion schemes; traffic in narcotics, hacking tools and illicit contraband online; commit thefts and scams; and launder the proceeds of their crimes,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The NCET will serve as the focal point for the department’s efforts to tackle the growth of crime involving these technologies. Eun Young is an accomplished leader on cyber and cryptocurrency issues, and I am pleased that she will continue her service as the NCET’s inaugural Director, spearheading the department’s efforts in this area.” 

The NCET was established to ensure the department meets the challenge posed by the criminal misuse of cryptocurrencies and digital assets, and comprises attorneys from across the department, including prosecutors with backgrounds in cryptocurrency, cybercrime, money laundering and forfeiture. The NCET will identify, investigate, support and pursue the department’s cases involving the criminal use of digital assets, with a particular focus on virtual currency exchanges, mixing and tumbling services, infrastructure providers, and other entities that are enabling the misuse of cryptocurrency and related technologies to commit or facilitate criminal activity. The NCET will set strategic priorities regarding digital asset technologies, identify areas for increased investigative and prosecutorial focus, and lead the department’s efforts to coordinate with domestic and international law enforcement partners, regulatory agencies and private industry to combat the criminal use of digital assets. Finally, the NCET will enhance the Criminal Division’s existing efforts to provide support and training to federal, state, local, and international law enforcement to build capacity to aggressively investigate and prosecute serious crimes involving cryptocurrency and digital assets in the United States and around the world.

The NCET’s work will be furthered through close collaboration with components across the department, including the Criminal Division’s Computer Crime and Intellectual Property Section and Money Laundering and Asset Recovery Section; the U.S. Attorneys’ offices; the National Security Division; and the FBI, including the FBI’s new Virtual Asset Exploitation Unit, a specialized team of cryptocurrency experts dedicated to providing analysis, support, and training across the FBI, as well as innovating its cryptocurrency tools to stay ahead of future threats. 

“The department has been at the forefront of investigating and prosecuting crimes involving digital currencies since their inception,” said Director Choi. “The NCET will play a pivotal role in ensuring that as the technology surrounding digital assets grows and evolves, the department in turn accelerates and expands its efforts to combat their illicit abuse by criminals of all kinds. I am excited to lead the NCET’s incredible and talented team of attorneys, and to get to work on this important priority for the department. I would like to thank Assistant Attorney General Polite and the Criminal Division’s leadership for this opportunity.”   

Prior to her service as Senior Counsel to Deputy Attorney General Lisa O. Monaco, Director Choi began her career at the department as an Assistant U.S. Attorney for the Southern District of New York, where she served as the office’s Cybercrime Coordinator and investigated and prosecuted cyber, complex fraud and money laundering crimes, with a particular focus on network intrusions, digital currency, the dark web and national security investigations. She served as lead prosecutor in a variety of cases, including the investigation of a transnational organization responsible for the hacking of J.P. Morgan Chase and a dozen other financial companies; the operation of Coin.mx, an unlicensed virtual currency exchange; and the only U.S. prosecution brought in connection with the “Panama Papers.” In addition, she successfully argued the appeal before the Second Circuit in the case against Ross Ulbricht, the founder and chief administrator of the Silk Road, the first darknet marketplace. Earlier in her career, she served as a law clerk to the Honorable Naomi Reice Buchwald of the U.S. District Court for the Southern District of New York, and the Honorable Reena Raggi of the U.S. Court of Appeals for the Second Circuit. She is a graduate of Harvard College and Harvard Law School. 

The Justice Department announced today that Robert George, 49, was resentenced today by U.S. District Judge Kenneth D. Bell to three years in prison and one year of supervised release in connection with a 2013 incident that occurred while he was a Sergeant with the Hickory Police Department in North Carolina.

On Jan. 17, 2019, a federal jury convicted George of using excessive force for assaulting a woman whom he had arrested and transported to the Hickory Police station. George was previously sentenced to a term of probation by a different U.S. District Court judge following the trial, but the Fourth Circuit Court of Appeals reversed and remanded the case for resentencing.

The evidence at trial established that on Nov. 11, 2013, George assaulted a woman following her arrest. George forcibly pulled the handcuffed woman out from his police car and slammed her face-down onto the ground in the driveway just outside of the police station’s sally port. The forceful impact with the pavement caused the woman to suffer serious injuries that included a broken nose, severe dental trauma that required multiple surgeries and facial lacerations. Following the assault, George locked the woman in a cell and placed a spit-hood over her head because she was bleeding severely. The assault was captured by the police station’s security camera.

“Police officers who violently and unlawfully assault people in their custody, causing severe physical injuries and trauma, are not above the law and will be held accountable,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “This sentencing sends a strong message that the Justice Department will continue to aggressively prosecute officers who abuse their power by using unlawful force on people in their custody.”

“A person’s constitutional rights do not cease to exist during or after an arrest,” said U.S. Attorney Dena J. King of the Western District of North Carolina. “A federal jury rightfully decided that former police sergeant George used excessive force against an individual in his custody, and today’s resentencing reflects the seriousness of his unlawful conduct. As federal prosecutors, we have a duty to protect everyone’s civil rights and to investigate and prosecute federal law violations involving police misconduct. We owe it to the people living in the Western District and to the thousands of law enforcement officers who serve and protect the public with honor and dedication.”

“The security video of George's actions that day in 2013, is sickening,” said Special Agent in Charge Robert R. Wells of the FBI Charlotte Division. “We are grateful to our partners at the Hickory Police Department who immediately began an internal investigation and requested state and federal assistance. We hope today's resentencing sends a message that no one is above the law, and everyone deserves to be treated with respect and dignity.”

The case was investigated by the FBI and prosecuted by Civil Rights Division Criminal Section Trial Attorney Sanjay Patel and Assistant U.S. Attorney Kimlani Ford from the U.S. Attorney’s Office for the Western District of North Carolina.

A former Brockton, Massachusetts, resident pleaded guilty today to conspiracy to commit sex trafficking and related charges. Matthew Engram, 35, pleaded guilty to one count of conspiracy to commit sex trafficking by force, fraud or coercion, two counts of transportation of an individual for purposes of prostitution, and one count of conspiracy to commit interstate travel in aid of a racketeering enterprise. 

As part of the plea hearing held in federal court, Engram admitted that from January 2009 until August 2015, he and a co-conspirator recruited and trafficked three victims from a residence in Brockton, and elsewhere, and Engram took all or part of the proceeds. Engram advertised the victims on websites, exchanged text messages with his co-conspirator to share advertisements, organized prostitution dates, and reserved hotel rooms. When these victims did not comply with Engram’s demands to prostitute for his profit, he physically assaulted them or directed a co-conspirator to physically assault them.  Engram also admitted that he transported, or caused the transport of the victims to other states, including Connecticut, Pennsylvania, New York, Virginia, Florida and Maine, to perform commercial sex acts. 

“Human trafficking is an insidious crime that exploits vulnerable members of our society, causing unimaginable and lasting harm,” said Assistant Attorney General Kristen Clarke of the Civil Rights Division. “The Justice Department is committed to using every available resource to prosecute human traffickers and to support human trafficking survivors.”

Sentencing in this matter has been set for May 19, 2022. The charge of conspiracy to commit sex trafficking through force, fraud, or coercion provides for a maximum sentence of life in prison, no fewer than five years of supervised release and a fine of up to $250,000. The charges of transportation of an individual for purposes of prostitution provides for a sentence of up to 10 years in prison, three years of supervised release, and a fine of up to $250,000. The charge of conspiracy to commit interstate travel in aid of racketeering provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.  

Homeland Security Investigations conducted the investigation with the assistance of the Boston Police Department. Assistant U.S. Attorney Suzanne Sullivan Jacobus of U.S. Attorney Rollins’s Major Crimes Unit and Trial Attorneys Shan Patel and Vasantha Rao of the Civil Rights Division prosecuted the case.

In the wake of persistent price increases initially stemming from supply chain disruptions caused by the COVID-19 global pandemic, the Antitrust Division and the FBI announced an initiative today to deter, detect and prosecute those who would exploit supply chain disruptions to engage in collusive conduct. 

“Temporary supply chain disruptions should not be allowed to conceal illegal conduct,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “The Antitrust Division will not allow companies to collude in order to overcharge consumers under the guise of supply chain disruptions.”

“The lingering challenge of supply chain disruptions from the COVID-19 pandemic has created an opportunity for criminals to fix prices and overcharge customers,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI and our law enforcement partners will continue to collaborate and investigate schemes that violate our antitrust laws and stifle our economic recovery.”

As part of the initiative, the Antitrust Division is prioritizing any existing investigations where competitors may be exploiting supply chain disruptions for illicit profit and is undertaking measures to proactively investigate collusion in industries particularly affected by supply disruptions. The Antitrust Division has also formed a working group focusing on global supply chain collusion with its global partners, the Australian Competition and Consumer Commission, the Canadian Competition Bureau, the New Zealand Commerce Commission and the United Kingdom Competition and Markets Authority. The working group is developing and sharing intelligence, utilizing existing international cooperation tools, to detect and combat collusive schemes.   

Economies across the globe have faced significant challenges caused by supply chain disruptions resulting from the COVID-19 global pandemic. Transportation constraints, disruptions to routine business operations and difficulty in obtaining raw materials have all led to increased costs of production and shipment, which in turn have resulted in higher prices for consumers. Supply chain disruptions have been broad in scope, affecting a variety of industries ranging from agriculture to health care.

While many individuals and businesses across various sectors in the economy have responded and will continue to respond to supply chain disruptions caused by the pandemic with laudable ingenuity — bringing goods to communities in need, expanding existing capacity and developing products and services to meet new needs — others may seek to use supply chain disruptions as a cover for collusive schemes. For those who seek to exploit supply chain disruptions for their own illicit gain, the Antitrust Division, along with the FBI, will investigate and prosecute criminal violations of the antitrust laws, including agreements between individuals and businesses to fix prices or wages, rig bids or allocate markets. Anyone with information on price fixing, bid rigging, market-allocation agreements or other anticompetitive conduct should call the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, or visit http://www.justice.gov/atr/report-violations.  

The Department of Justice is committed to working closely with the public, the business community and other federal agencies to enforce the antitrust laws for the protection and welfare of the American people.  

A Florida man who co-founded a sports and dietary supplements retailer was sentenced today to 54 months in prison for conspiring to sell illegal anabolic steroids and other products marketed as dietary supplements that were unlawful under federal law. A second Florida man was sentenced to 13 months in prison for his role in the scheme.

According to court documents, Phillip Braun, 41, of Boca Raton, founded and operated Blackstone Labs LLC, a Boca Raton-based sports and dietary supplements retailer. Braun, who pleaded guilty in November 2021 to conspiracy to distribute controlled substances and to selling unapproved new drugs, is also the CEO of Blackstone. U.S. District Judge William P. Dimitrouleas of the Southern District of Florida sentenced Braun to 54 months in prison and ordered him to forfeit $3 million. The court also ordered Blackstone Labs to pay $1.2 million in forfeiture.

Anthony Ventrella, 43, of Delray Beach, Florida, operated a series of companies that manufactured many of the illegal products marketed and sold by Blackstone. Ventrella, who pleaded guilty in September 2021 to conspiracy to commit mail and wire fraud as part of the scheme, was sentenced to 13 months in prison. The court also ordered Ventrella’s company, Ventech Labs, to forfeit equipment used to make the illegal products.

“Selling controlled substances and unapproved drugs falsely labelled as dietary supplements is illegal and potentially dangerous,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department of Justice will work with law enforcement partners to investigate and prosecute individuals and companies who disregard public safety to make a profit.”

“Drug products that are disguised as supplements can pose a serious risk to the health of U.S. consumers,” said Special Agent in Charge Justin C. Fielder of the Food and Drug Administration Office of Criminal Investigations (FDA OCI) Miami Field Office. “We will continue to investigate and bring to justice those who jeopardize public health.”

On Jan. 27, Aaron Singerman, who co-founded and operated Blackstone Labs with Braun, was sentenced to 54 months in prison and ordered to forfeit $2.9 million.

In total, eight individuals and three companies were convicted in connection with the activities of Blackstone Labs. James Boccuzzi, who was convicted by a jury on Dec. 9, 2021 of one count of conspiracy to defraud the FDA and one count of conspiracy to distribute controlled substances, is scheduled to be sentenced on March 11.

FDA OCI investigated the case.

Trial Attorneys Alistair Reader and Stephen Gripkey, Senior Litigation Counsel David A. Frank and Assistant Director John W. Burke of the Civil Division’s Consumer Protection Branch are prosecuting the cases with assistance from Assistant U.S. Attorney Daren Grove of the U.S. Attorney’s Office for the Southern District of Florida. Laura Akowuah, Brian Furlong and Sarah Hawkins from the FDA’s Office of Chief Counsel provided assistance with the investigation and prosecution.

A Tennessee man was sentenced today for the arson of four Nashville area churches.

Alan Douglas Fox, 29, of Nashville, was sentenced to seven years in federal prison and three years of supervised release. He had previously been charged by criminal information on Aug. 25, 2021, and had previously pleaded guilty to all counts on Oct. 20, 2021.

According to court documents and statements made during the plea and sentencing hearings, Fox intentionally set fire to the Crievewood United Methodist Church on June 17, 2019; the Crievewood Baptist Church on June 25, 2019; the Saint Ignatius of Antioch Catholic Church on June 25, 2019; and the Priest Lake Community Baptist Church on June 26, 2019, all because of their religious character. Fox also carried and used a handgun to break into the Crievewood Baptist Church to facilitate the arson. The fires resulted in significant damage to all four churches.

“This defendant has now been held accountable for his dangerous arson spree that caused damage to a Catholic church, a Methodist church and two Baptist churches, all pillars of the Nashville community,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Attacks on houses of worship are attacks on people of faith that undermine the fundamental right to practice one’s religion free from fear or violence. The Civil Rights Division will continue to vigorously enforce federal laws that protect all houses of worship, regardless of denomination.”

This case was investigated by the FBI, the Tennessee Bureau of Investigation, the Metropolitan Nashville Police Department and the Nashville Fire Department. It was prosecuted by Trial Attorney Kyle Boynton of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Brooke Schiferle.

U.S. Attorney General Merrick B. Garland released today the following statement on the passing of Walter E. Dellinger III:

“The passing of Walter Dellinger is an enormous loss for those of us at the Justice Department who worked alongside and learned from him, for his family who cherished him, and for our nation, which was made better because of him.

“It is difficult to know where to begin in remembering someone who lived as fully and gave of himself as generously as Walter did. Throughout his life, Walter created communities of friends, students, and mentees who shared his passion for the law and his devotion to the pursuit of justice.

“I first had the privilege to work alongside Walter at the Justice Department when he came to Washington, D.C. from Duke Law with his beloved wife, Anne, and served as a professor in residence in the Appellate Section of the Civil Division. I worked with him again when he served as Assistant Attorney General for the Office of Legal Counsel, and then as Acting Solicitor General. His exuberance and passion for life and the law were palpable in everything he did.

“Walter approached the law not as a career, but as a calling. He believed it was his privilege to be able to use the law to make our democracy work better for everyone. He was a tireless advocate on behalf of those with whom he worked, and on behalf of the American people for whom he worked. He did not hesitate to lend his voice in service of lifting up the voices of others. His work had an enormous impact on all of us at the Justice Department, and on the lives of millions of people he would never know.

“For Walter, tackling the most urgent, complex, and important questions of law was not exclusive of living a life filled with joy. He filled his life — and the lives of those of us lucky enough to have known him — with light.

“All of us at the Department extend our deepest condolences to his loving family. We join them in mourning Walter’s passing, and in expressing our gratitude for his extraordinary legacy.”

The Department of Justice has today filed a lawsuit to prevent the State of Missouri from enforcing House Bill 85 (H.B. 85). Signed into law in June 2021, the Missouri law declares five categories of federal firearms laws “invalid” and deters and penalizes their enforcement by federal, state and local law enforcement officers. The government’s complaint seeks declaratory and injunctive relief prohibiting enforcement of H.B. 85 and further clarifying that state and local officials may lawfully participate in joint federal task forces, assist in the investigation and enforcement of federal firearm crimes, and fully share information with the federal government without fear of H.B. 85’s penalties. Specifically, the complaint alleges that H.B. 85 is invalid under the Supremacy Clause, is preempted by federal law, and violates the doctrine of intergovernmental immunity.

“This act impedes criminal law enforcement operations in Missouri,” said Attorney General Merrick B. Garland. “The United States will work to ensure that our state and local law enforcement partners are not penalized for doing their jobs to keep our communities safe.”

“A state cannot simply declare federal laws invalid,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This act makes enforcement of federal firearms laws difficult and strains the important law enforcement partnerships that help keep violent criminals off the street.”

The complaint alleges that the restrictions imposed by H.B. 85 have hindered cooperation and other activities that assist federal, state, and local law enforcement efforts. Federal law enforcement agencies within the state report that enforcement of federal firearms laws in Missouri has grown more difficult since H.B. 85 became effective. The penalties associated with H.B. 85 have prompted state and local agencies and individuals within those entities to withdraw support for federal law enforcement efforts, including by not sharing critical data used to solve violent crimes and withdrawing from joint federal task forces. The complaint challenges the constitutionality of the law and seeks to enforce the supremacy of federal law. Dozens of state and local officers have resigned from federal joint-task forces in the state as a result of the law. According to Missouri’s own statistics, nearly 80% of violent crimes are committed with firearms.

According to the complaint, Missouri enacted H.B. 85 despite its conflict with the fundamental constitutional principles of supremacy of federal law, preemption, and intergovernmental immunity. The restrictions imposed by the statute are premised on a declaration that several categories of federal statutes are “invalid,” but a state may not lawfully declare federal law invalid under the Constitution. In addition to penalizing individuals for working on joint federal-state law enforcement task forces, the statute penalizes current federal employees by barring them from state employment if they enforced the purportedly invalid laws. The statute further directs the state judiciary to “protect” against the federal laws declared invalid.

An Ashland, Oregon, employee of a defense contractor pleaded guilty today to tax evasion.

According to court documents, Charles D. Squires was the director of operations for a U.S. Department of Defense contracting company, eventually serving as its chief executive officer for part of the year in 2015. From 2010 through 2019, Squires did not report on his individual income tax returns all of the compensation he earned from the defense contracting firm. In total, Squires did not report to the IRS more than $1.8 million in compensation he earned during this period, causing a tax loss to the government of approximately $666,080.

Squires is scheduled to be sentenced at a later date and faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will 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 Matthew M. Graves for the District of Columbia made the announcement.

IRS-Criminal Investigation and the Special Inspector General for Afghanistan Reconstruction are conducting the investigation.

Assistance was provided by the Joint Chiefs of Global Tax Enforcement (J5), which brings together the taxing authorities of Australia, Canada, Netherlands, United Kingdom and the United States.

Senior Litigation Counsel Nanette Davis and Trial Attorneys Brittney Campbell and Sarah Ranney of the Tax Division, and Assistant U.S. Attorney Leslie Goemaat of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.

A federal court in the Northern District of Illinois has permanently enjoined a Chicago, Illinois, tax return preparer from preparing returns for others and from owning, operating or franchising any tax return preparation business in the future.

According to the court’s order, Melissa Gasca, individually and doing business as Su Familia Income Tax, as well as related tax preparation business FinancialPlus Services Inc., consented to entry of the injunction. The terms of the order require that Gasca and FinancialPlus Services Inc. send notice of the injunction to multiple individuals. The order permits the United States to conduct discovery against Gasca going forward to monitor her compliance with the terms of the injunction.  

The complaint alleges that Gasca prepared tax returns which significantly understated the customers’ tax liabilities by falsely reporting inflated Form W-2 federal income tax withholdings. The complaint further alleges that this fraudulent activity resulted in a loss to the Treasury of more than $5 million.  

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

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

In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free. The IRS has tips on how seniors and individuals with low to moderate income can get other help or guidance on tax return preparation, too.

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

Two former correctional officers pleaded guilty today to engaging in bribery and smuggling contraband into Leavenworth Detention Center.

According to court documents, Jacqueline Sifuentes, 26, of Laredo, Texas, and Cheyonte Harris, 29, of Raytown, Missouri, previously worked as correctional officers at Leavenworth Detention Center, a privately-run maximum-security federal prison in Leavenworth, Kansas. Sifuentes used her position to smuggle contraband — including methamphetamine, marijuana and tobacco — into the prison in exchange for bribes from a federal inmate. Harris used her position to smuggle contraband into the prison in exchange for bribes from inmates and their associates.

Both defendants pleaded guilty to conspiracy to accept bribes and provide contraband to inmates of a federal prison. Each is scheduled to be sentenced on May 17, and each faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, Special Agent in Charge William J. Hannah of the Department of Justice Office of Inspector General (DOJ-OIG) Chicago Field Office, and Special Agent in Charge Charles A. Dayoub of the FBI’s Kansas City Field Office made the announcement.

The FBI and DOJ-OIG are investigating the cases.

Trial Attorneys Rebecca M. Schuman and Dahoud A. Askar of the Justice Department’s Public Integrity Section are prosecuting the cases.

The cases are part of the Justice Department’s ongoing efforts to combat prison corruption. In addition to the above matters, the Public Integrity Section recently obtained convictions against two other former Leavenworth Detention Center officials for similar conduct. See United States v. Willie Golden, Case No. 2:21-cr-20061 (D. Kan.); United States v. Janna Grier, Case No. 2:22-cr-20001 (D. Kan.). Separately, the Public Integrity Section has obtained convictions against three former North Carolina prison officials who smuggled contraband, including narcotics, into a state facility in exchange for bribes. See United States v. Ollie Rose, III, No. 4:20-CR-96 (E.D.N.C.); United States v. Kenneth Farr, No. 4:21-CR-9 (E.D.N.C.); and United States v. Jeremy Chambers, No. 4:21-CR-38 (E.D.N.C.).

Three men were sentenced yesterday in the Middle District of North Carolina for fraudulently seeking over $2.7 million in Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDLs) guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security Act. 

Joseph Marsell Cartlidge, 30, of Greensboro, North Carolina, was sentenced to 72 months in prison; David Christopher Redfern, 32, of Trinity, North Carolina, was sentenced to 60 months in prison; and Eric Alexander McMiller, 30, of Chicago, Illinois, was sentenced to 66 months in prison. Each defendant was also ordered to pay $498,657 in restitution.

According to court documents, Cartlidge, Redfern and McMiller joined a scheme led by James Stote, who with others, recruited the defendants to apply for fraudulent PPP loans for registered businesses, with the understanding and agreement they would provide a portion of the PPP loan proceeds to their recruiter. Between May and June 2020, the defendants submitted fraudulent PPP loan applications misrepresenting the number of employees and the average monthly payroll expenses of the defendants’ various businesses. The defendants submitted false tax and bank records in support of their loan applications. The defendants also independently applied for fraudulent EIDLs and misrepresented the number of employees, gross revenues, and costs of goods sold for each business. In total, the defendants sought over $2.7 million in PPP loans and EIDL funds. The defendants then used the loan proceeds for their own personal benefits, including for luxury purchases and cash withdrawals. 

Stote pleaded guilty on Dec. 15, 2021, to conspiracy to commit wire fraud in the Northern District of Ohio.

Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Sandra J. Hairston of the Middle District of North Carolina; Acting Special Agent in Charge Mona Passmore of the IRS-Criminal Investigation (IRS-CI) Charlotte Field Office; Special Agent in Charge Kyle Myles of the FDIC-OIG Atlanta Region; Special Agent in Charge Mark Morini of the U.S. Treasury Inspector General for Tax Administration (TIGTA) Southeast Field Division; and Special Agent in Charge Amaleka McCall-Brathwaite of the SBA’s Office of Inspector General (SBA-OIG) Eastern Region made the announcement.

TIGTA, FDIC-OIG, and IRS-CI investigated the case. The Justice Department thanks SBA-OIG for their support and assistance. 

Trial Attorneys Jennifer Bilinkas and Jessee Alexander-Hoeppner of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Nicole Dupre for the Middle District of North Carolina and Meredith Ruggles, formerly of the U.S. Attorney’s Office for the Middle District of North Carolina, prosecuted the case.

In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, 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 attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

The Justice Department announced today it has issued guidance under the Americans with Disabilities Act (ADA) on how to ensure that ballot drop boxes are accessible to voters with disabilities. The publication, “Ballot Drop Box Accessibility, the Americans with Disabilities Act,” is intended to help election officials understand the ADA’s requirements, including the physical accessibility standards applicable to ballot drop boxes, and for voters with disabilities to understand their rights under federal law.

“The right to vote is the fundamental right upon which our democracy is built,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “For too long in our history, many voters with disabilities have faced barriers in exercising their voting rights. Many of these barriers continue even today, including physical barriers that prevent them from entering polling places or accessing a ballot drop box. The ADA requires election officials to select and provide accessible ballot drop box locations so that voters with disabilities can have the same voting opportunities as other voters. The Justice Department is fully committed to vigorous enforcement of the ADA to ensure that voters with disabilities no longer face discrimination in the election process.”

The publication covers the elements and features of a ballot drop box that election officials should consider meeting the ADA’s accessibility requirements. The publication discusses the requirements for an accessible route to a ballot drop box, such as a level walkway without gaps and steps. It also discusses accessibility features of a ballot drop box such as a handle or lever that can be operated with one hand and without tight grasping, pinching or twisting of the wrist. The guidance includes a checklist of the accessibility standards used to assess a ballot drop box.

The ballot drop box guidance is intended to be used together with the department’s “ADA Checklist for Polling Places,” a guidance document that discusses local governments’ obligations under the ADA to provide polling places that are physically accessible to voters with disabilities. The ADA Checklist for Polling Places covers the accessibility requirements for features that may be present at a ballot drop box location, such as parking, passenger drop off areas and building entrances.

The Ballot Drop Box Accessibility publication may be found at ADA.gov homepage; the ADA Checklist for Polling Places publication may be found at ADA Checklist for Polling Places. Those interested in learning more about the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed online at Step 1: Contact - Contact the Civil Rights Division | Department of Justice. Information about the department’s enforcement of federal civil and criminal laws related to voting may be found at Voting | Department of Justice.

A Columbus, Ohio, man pleaded guilty in federal court this morning for making threats to a local reproductive health services facility.

Carlos Manuel Rodriguez Brime, 25, admitted to threatening to kill a patient who indicated she planned to get an abortion at the clinic, and for threatening to bring a bomb to the clinic.

Brime made two separate telephone threats on April 11, 2021, to a local reproductive health care clinic.

During the first call, he told clinic staff, “My girlfriend is a patient there and I’m going to bring the heat. If she kills my baby, I’m going to kill her.” A short time later, he called the clinic again and said, “My organization will be bringing a bomb to your facility. I suggest you close your doors.”

Brime admitted to violating the Freedom of Access to Clinic Entrances (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.

Threatening freedom of access to clinic entrances is a federal crime punishable by up to one year in prison and transmitting threats in interstate commerce carries a potential maximum sentence of five years in prison. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.

“People should be able to freely access clinics that provide reproductive health services, free from violence and threats of violence,” Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “This defendant threatened to kill a woman because she was seeking reproductive health services and further threatened to bomb the clinic providing those services. This conviction should send a strong message that the Justice Department will hold accountable those who would resort to violence and threats of violence to deny people access to reproductive health clinics in our country.”

Brime was indicted by a grand jury and arrested in September 2021. A sentencing date has not yet been set.

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 William Rivers of the FBI Cincinnati Division; and Columbus Police Chief Elaine Bryant announced the plea entered into today before 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.

A Maryland woman was sentenced today to three years in prison for preparing false tax returns for District of Columbia residents as part of a nationwide tax fraud scheme.

According to court documents and evidence presented at trial, Charese Johnson, of Aberdeen, prepared 13 false income tax returns that collectively sought more than $6.6 million in refunds from the IRS. Between 2014 and 2016, scheme participants held seminars throughout the country where they promoted the purported ability of taxpayers to utilize their mortgages and other debts to generate tax refunds. Information was then collected from clients and provided to Johnson and others for use in the preparation of false returns. Those returns falsely claimed that banks and other financial institutions had withheld large amounts of income taxes from the clients, which entitled the clients to refunds. In reality, the financial institutions had not paid any income to or withheld any taxes from the clients.

Johnson tried to conceal her role in the scheme by convincing one of her clients to mislead the IRS about Johnson’s involvement in the preparation of the client’s tax returns.

On July 1, 2021, Johnson was convicted at trial of three counts of helping others prepare false tax returns. Thus far, more than a dozen other individuals around the country have been charged or convicted for their involvement in this multimillion-dollar scheme.

In addition to the term of imprisonment, U.S. District Judge Randolph D. Moss ordered Johnson to serve one year of supervised release.

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.

Dos ciudadanos peruanos responsables de operar una serie de centros de llamadas en Perú que estafaban y amenazaban a residentes de habla hispana en los Estados Unidos fueron sentenciados en el Tribunal de Distrito de EE.UU. del Distrito Sur de Florida a cumplir condena de cárcel. El 9 de febrero de 2022, el Juez de Distrito de EE.UU., Robert N. Scola Jr., condenó a Josmell Espinoza Huerta (Josmell Espinoza), de 32 años, a cumplir 88 meses en prisión. Hoy mismo, el Juez Scola ordenó que Carlos Alberto Espinoza Huerta (Carlos Espinoza), de 40 años, fuera encarcelado durante 102 meses. 

Josmell Espinoza y su hermano Carlos Espinoza se declararon culpables a finales de 2021 de conspirar para cometer fraude postal y fraude electrónico a través de varios centros de llamadas peruanos de los que eran propietarios y operadores. Según los documentos del Tribunal, Josmell Espinoza y Carlos Espinoza eran copropietarios y operaban el centro de llamadas JFC Peru en Perú. Además, Josmell Espinoza era propietario y operador de los centros de llamadas Camino Al Progreso y Latin Shop, y Carlos Espinoza era propietario y operador por separado de los centros de llamadas Latinos en Acción y Latin Force en Perú.

Desde abril de 2011 hasta julio de 2019, los hermanos Espinoza y sus cómplices en Perú llamaban a las víctimas, muchas de las cuales eran inmigrantes recientes de Centroamérica, México y otros países de habla hispana. Amenazaban a las víctimas fraudulentamente con consecuencias legales si no hacían pagos por productos supuestamente entregados y honorarios de liquidación para clases de inglés. Los demandados y sus cómplices usaban declaraciones falsas y amenazas para obtener dinero de las víctimas de todos los Estados Unidos. Les decían falsamente que estaban obligadas a aceptar y pagar cursos de inglés y otros productos educativos, y que no hacerlo las pondría en una situación legal riesgosa. Los demandados y sus cómplices entonces amenazaban falsamente con procurar que sus víctimas fueran arrestadas y deportadas para que les pagaran.

Al declararse culpables, ambos demandados admitieron que ellos y sus empleados afirmaron falsamente ser abogados, funcionarios del tribunal, agentes federales y representantes de un supuesto "tribunal de delitos menores", que no existe. Las personas que llamaban amenazaban falsamente a las víctimas con procedimientos judiciales, calificaciones negativas en sus informes de crédito, encarcelamiento y consecuencias migratorias si no pagaban inmediatamente los productos supuestamente entregados y los honorarios de liquidación. Carlos Espinoza causó a las víctimas una pérdida de más de 1.3 millones de dólares, y Josmell Espinoza causó a las víctimas una pérdida de más de 700 mil dólares.

"La sección de Protección al Consumidor del Departamento de Justicia investigará y procesará a los delincuentes transnacionales que defrauden a los consumidores vulnerables de los Estados Unidos", declaró el fiscal general adjunto interino Brian M. Boynton, de la División Civil del Departamento de Justicia. "Estas dos sentencias demuestran que los demandados que usen amenazas para aprovecharse de nuestras comunidades de inmigrantes serán enjuiciados y rendirán cuentas en los tribunales de los Estados Unidos".

"Este caso demuestra que la justicia no tiene límites cuando se trata de alcanzar a los defraudadores que se aprovechan de las poblaciones más vulnerables de nuestra nación", dijo el Fiscal Federal del Distrito Sur de Florida, Juan Antonio Gonzalez. "Seguiremos trayendo ante la justicia estadounidense a los delincuentes transnacionales que usen tácticas de miedo e intimidación para robar el dinero de los inmigrantes, personas mayores y otras personas que viven en este país".   

"Durante muchos años, el Servicio de Inspección Postal de EE. UU. y sus colaboradores en la aplicación de la ley han investigado y procesado a redes delictivas internacionales que tienen como objetivo a los consumidores estadounidenses para robarles el dinero que tanto les ha costado ganar", declaró el inspector encargado Joseph Cronin, de la División de Miami del Servicio de Inspección Postal de EE. UU. "Seguiremos investigando de forma diligente a estos delincuentes para asegurarnos de que sean procesados con todo el peso de la ley".

Al incluir la sentencia de Carlos Espinoza en Miami hoy, los siete acusados en este caso se han declarado culpables y han sido condenados a penas de cárcel. Cinco acusados fueron detenidos por las autoridades peruanas con base en una solicitud de extradición presentada por los Estados Unidos y fueron extraditados al Distrito Sur de Florida en octubre de 2020. Cada uno de estos acusados fue condenado a cumplir una sentencia de prisión a principios de este año. Henrry Milla fue condenado a 110 meses en prisión, Jerson Renteria fue condenado a 100 meses en prisión y Evelyng Milla, Fernan Huerta y Omar Cuzcano fueron sentenciados cada uno a 90 meses en prisión. Carlos Espinoza y Josmell Espinoza evadieron el arresto cuando sus cómplices fueron arrestados.  Posteriormente fueron localizados en Perú y extraditados a los Estados Unidos el 25 de junio de 2021. 

El Servicio de Inspección Postal de EE.UU. y la sección de Protección al Consumidor de la División Civil investigaron el caso. El fiscal principal Phil Toomajian y el fiscal Max Goldman, de la sección de Protección al Consumidor, estuvieron a cargo del caso penal. La Comisión Federal de Comercio, la Oficina de Asuntos Internacionales del Departamento de Justicia, la Fiscalía de EE.UU. del Distrito Sur de Florida, el Servicio de Seguridad Diplomática del Departamento de Estado y la Policía Nacional del Perú brindaron ayuda esencial. 

La información sobre la Iniciativa contra el Fraude a Personas Mayores del Departamento de Justicia está disponible en https://www.justice.gov/elderjustice-espanol. Hay más información sobre la sección de Protección al Consumidor y sus medidas para combatir el fraude contra las personas mayores en www.justice.gov/civil/consumer-protection-branch. Si usted o alguien que conoce tiene 60 años o más y ha sido víctima de un fraude financiero, puede recibir ayuda si llama a la línea telefónica nacional contra el fraude a personas mayores: 1-833-FRAUD-11 (1-833-372-8311).

In English

The former owner of a drywall business in Queens pleaded guilty today to helping prepare a false corporate tax return for his business. 

According to court documents, Osvaldo Caceres, of Queens, New York, owned and operated OSVI Drywall Corporation. Caceres helped prepare the company’s corporate tax return for the tax period ranging from Feb. 1, 2013, through Jan. 31, 2014, which underreported the business’s gross receipts. Caceras caused a total tax loss to the IRS of $926,379.

Sentencing is scheduled for June 14. Caceres faces a maximum penalty of three years in 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 made the announcement. He thanked the U.S. Attorney’s Office for the Eastern District of New York for providing substantial assistance in this matter. 

IRS-Criminal Investigation is investigating the case.

Trial Attorneys Sarah Ranney and Sam Bean of the Tax Division are prosecuting the case.

A New York man pleaded guilty today to tax evasion and a wire fraud conspiracy.

According to court documents and statements made in court, Joseph Smith, of Fishkill, owned and operated New York Bagel, a business that operated in Pennsylvania and other states. Smith and Dennis Mason conspired to defraud individuals who sought to open new franchises of New York Bagel. Smith and Mason induced the prospective franchisees to open up New York Bagel stores by understating the startup costs, overstating the number of franchises that were up and running, and exaggerating the financial success of existing franchises. Smith and Mason charged prospective franchisees fees ranging between $7,500 and $44,500 to gain rights to open stores. When prospective franchisees learned of the misrepresentations, Smith refused to refund these fees.

For the years 2014 through 2016, Smith deposited more than $1.3 million in franchise fees into New York Bagel bank accounts he controlled. Smith spent these funds on personal items wholly unrelated to New York Bagel including rent for his personal home, recreational travel, car payments for personal vehicles and everyday living expenses. Smith did not timely file corporate or individual income taxes for these three years, or pay the taxes owed to the IRS, even though he was required by law to do so.

Mason previously pleaded guilty to wire fraud and conspiracy to commit wire fraud on June 25, 2020.

Smith is scheduled to be sentenced on May 24. He faces a maximum penalty of five years in prison on both the tax evasion and conspiracy charges, 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 Jennifer Arbittier Williams for the Eastern District of Pennsylvania made the announcement.

IRS-Criminal Investigation is investigating the case.

Trial Attorney Eric B. Powers of the Justice Department’s Tax Division and Assistant U.S. Attorney David Ignall of the U.S. Attorney’s Office are prosecuting the case.

A Maine man was indicted today by a federal grand jury in Springfield, Massachusetts, in connection with the Dec. 28, 2020, fire that destroyed a predominately Black church in Springfield.

Dushko Vulchev, 45, of Houlton, Maine, was indicted by a federal grand jury on four counts of damage to religious property involving fire and one count of use of fire to commit a federal felony. Vulchev was previously charged by criminal complaint in April 2021.

According to court documents, in the early morning hours of Dec. 28, 2020, law enforcement observed a fire at the Martin Luther King Jr. Community Presbyterian Church (MLK Church) which caused significant damage to the building. During a subsequent investigation, it was determined that the fire was related to other incidents, including arsons and malicious damage to vehicles, that occurred on church property and the surrounding area. These included a fire at the backdoor of the MLK Church on Dec. 13, 2020, and two additional fires near the backdoor of the church on Dec. 15, 2020. Further investigation, including the review of video surveillance, identified Vulchev as the alleged perpetrator.

According to court documents, during a subsequent search of Vulchev’s vehicle, multiple electronic storage devices containing images demonstrating Vulchev’s racial animus toward Black people, including a “White Lives Matter” mural and a photo of Adolf Hitler in a track suit were seized. Vulchev’s electronic devices also allegedly contained messages revealing Vulchev’s hatred of Black people dating back several years, with Vulchev’s recent messages from December 2020 calling to “eliminate all N****s.” According to the court documents, individuals familiar with Vulchev told law enforcement that Vulchev frequently displayed racial animus towards non-whites and routinely referred to Black people using a racial epithet.

The charge of damage to religious property involving fire provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of use of fire to commit a federal felony provides for a sentence of at least 10 years in prison, in addition to any sentence received for the other charged crimes. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division; U.S. Attorney Rachael S. Rollins for the District of Massachusetts; Special Agent in Charge Joseph R. Bonavolonta of the FBI; James M. Ferguson of the Bureau of Alcohol, Tobacco and Firearms, Boston Field Division; and Peter Ostroskey, Massachusetts State Police Fire Marshal, made the announcement today. Assistance was provided by Hampden District Attorney’s Office; Berkshire District Attorney’s Office; Springfield Police Department; Springfield Fire Department; Pittsfield Police Department; American International College Police Department; Houlton (Maine) Police Department; and Newington (Conn.) Police Department.

The case is being prosecuted by Assistant U.S. Attorney Deepika Bains Shukla, Chief of Rollins’s Springfield Branch Office and Trial Attorney Kyle Boynton of the Civil Rights Division.

The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The Justice Department announced today that Colton Donner, 27, pleaded guilty in federal court to threatening an African American man with a knife because of the man’s race, and in order to intimidate and interfere with the man’s right to fair housing.

According to documents filed in connection with the plea, on Sept. 11, 2019, Donner was driving through a residential area of Paola, Kansas, when he saw the victim, an African American 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.”

“Using racially motivated threats of violence to drive someone out of their home or community is a deplorable crime, and the Justice Department stands ready to use our nation’s hate crimes laws to hold perpetrators accountable,” said Assistant Attorney General Kristen Clarke for the Department’s Civil Rights Division. “Racially motivated hate crimes have no place in our society today. All people deserve to feel safe and secure living in their communities, regardless of race, color or national origin.”

“Any attempt to deny someone an opportunity to live where he or she chooses based on race, color or national origin 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 prosecute such offenses to ensure the equal protection under the law to which we all are entitled, and we take that responsibility very seriously.”

“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 Charles Dayoub of the FBI Kansas City Field Office. “The defendant’s actions directly undermined the victim’s right to reside in a community in Paola, Kansas, 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.”

Donner faces a maximum sentence of 10 years in prison and a $250,000 fine for the civil rights offense.

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

Three Hawaii-based executives of a government contractor were indicted today in the District of Columbia for allegedly making unlawful campaign contributions to a candidate for Congress and a political action committee.

According to the indictment, Martin Kao, 48, Clifford Chen, 48, and Lawrence “Kahele” Lum Kee, 52, all of Honolulu, were employed by a defense contractor prohibited from making contributions in federal elections. The defendants allegedly created a shell company and then used that shell company to make an illegal contribution to a political action committee supporting the election of a candidate for the U.S. Senate using government contractor funds. The defendants also allegedly used family members as conduits to make illegal contributions to the campaign committee of the same candidate, and then reimbursed themselves for those donations using funds obtained from their employer.

All three defendants are charged with conspiracy to defraud the United States and to make conduit and government contractor contributions, making conduct contributions, and making government contractor contributions. Kao is also charged with two counts of making false statements for causing the submission of false information to the Federal Election Committee.

Kao, Chen and Lum Kee will make their initial appearance at a later date. If convicted, the defendants face up to five years in prison and a $250,000 fine on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, U.S. Attorney Matthew M. Graves for the District of Columbia, Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office, and Special Agent in Charge Christopher Dillard, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office, made the announcement.

The FBI’s Washington Field Office and DCIS’s Mid-Atlantic Field Office are investigating the case.

Trial Attorney Lauren Castaldi of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Liz Aloi and Joshua Rothstein of the Fraud, Public Corruption and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia 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 California man was sentenced today to 18 months in prison for employment tax crimes.

According to court documents and statements made in court, Michael Todd Lucas controlled TradeMotion Inc. (TradeMotion), a company that sold software to automotive dealerships. Lucas controlled TradeMotion’s business and financial affairs, and therefore had a legal duty to withhold employment taxes on behalf of the company’s employees and pay those funds to the IRS. From the fourth quarter of 2011 through the third quarter of 2015, Lucas collected more than $2.1 million in withholdings from TradeMotion employees and issued them W-2 forms. However, he paid only $760,017 of these funds to the IRS. Lucas also did not pay to the IRS employment taxes withheld on behalf of the employees of other companies he controlled, causing an additional tax loss of more than $3.5 million.

In addition to the term of imprisonment, U.S. District Judge Anthony J. Battalia ordered Lucas to serve three years of supervised release and to pay approximately $4.9 million in restitution.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Randy S. Grossman of the Southern District of California made the announcement.

IRS-Criminal Investigation investigated the case.

Trial Attorney Charles A. O’Reilly of the Justice Department’s Tax Division prosecuted the case.

Deputy Attorney General Lisa O. Monaco issued the following statement today after the introduction of the Violence Against Women Act (VAWA) in Congress:

“The Department of Justice applauds the introduction of legislation by a bipartisan group of Senators to reauthorize the Violence Against Women Act (VAWA). Last fall, I had the honor of testifying before the Senate Judiciary Committee about the enormous impact that VAWA has had in combating domestic violence, dating violence, sexual assault and stalking. As I told the Senate Judiciary Committee then, I know from my personal experience helping to research the original VAWA legislation in the 1990s that the new tools and resources from this reauthorization are critical to modernizing our efforts to prevent and end these crimes. The department urges Congress to swiftly pass this essential legislation.”

Joshua Lankford, aka “20-20,” aka “Light Bright,” aka “Yellow,” 33, of Manchester, Maryland, pleaded guilty today to kidnapping in relation to a sex trafficking conspiracy.

According to his guilty plea, from Oct. 25, 2018, to Oct. 30, 2018, Lankford led and organized a conspiracy to commit sex trafficking by force, fraud or coercion, and to commit kidnapping. The evidence indicated that Lankford recruited the victim, a young adult woman, to engage in prostitution under fraudulent pretenses. Lanford knew that the victim was addicted to heroin and withheld drugs from her when she did make enough money for him engaging in commercial sex. When the victim attempted to escape, Lankford and his three co-defendants drove the victim to a rural road on Maryland’s Eastern Shore where they beat, whipped and choked her with a belt, and then drove her to a hotel in Delaware to engage in prostitution. All of Lankford’s co-defendants have already pleaded guilty for their participation in this crime. 

“Sex trafficking is a horrific crime that deprives some of the most vulnerable people in our society of their freedom and dignity,” said Assistant Attorney General Kristen Clarke for the Justice Department’s the Civil Rights Division. “This defendant preyed on a vulnerable young woman and cruelly exploited her for his profit. The Civil Rights Division will continue its vigorous enforcement of our human trafficking laws to hold perpetrators accountable and to seek justice for their victims.”

“This case is a prime example of the horrendous realities surrounding human trafficking and why our office works fiercely to combat it,” said U.S. Attorney Erek L. Barron for the District of Maryland. “Lankford took advantage of an at-risk woman’s drug addiction and her desire to be reunited with her son to lure her into a dehumanizing sex trafficking trap. He then intended to kill her to undermine the federal prosecution of his crimes at trial. Our office remains dedicated to the prosecution of sex traffickers, and most importantly, to the protection of sex trafficking survivors within our cases.”

“Joshua Lankford’s crimes are nothing short of horrific; he kidnapped and victimized a vulnerable woman then plotted to kill her in order to save himself,” said Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore. “Fortunately, he will now face the consequences of his actions. HSI Baltimore is proud to have partnered with the Maryland State Police, the Delaware State Police and the Federalsburg Police Department to bring Lankford to justice. HSI remains committed to investigating human trafficking organizations as they prey upon the most vulnerable populations in our communities.”

Lankford was arrested two days later and informed officers that he deleted the contents of his cell phone in anticipation of his apprehension. While incarcerated, Lankford told a co-conspirator that he intended to kill the victim to prevent her from testifying against them at trial.

Lankford and the government have agreed that, if the court accepts the plea agreement, Lankford will be sentenced to 17 years in federal prison. U.S. District Judge Catherine C. Blake has scheduled sentencing for April 29 at 9:30 a.m.

Report suspected instances of human trafficking and sex trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.

The guilty plea was announced by Assistant Attorney General Clarke; U.S. Attorney Barron; Special Agent in Charge Mancuso of HSI Baltimore; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; Chief Michael McDermott of the Federalsburg Police Department; and Colonel Melissa Zebley of the Delaware State Police Department.

The case is being prosecuted by Assistant U.S. Attorney Mary Setzer of the District of Maryland and Trial Attorney Leah L. Branch of the Civil Rights Division’s Human Trafficking Prosecution Unit.

A federal grand jury in Bowling Green, Kentucky, issued an indictment charging Columbia resident Joshua M. Franklin, 32, with violating the Clean Water Act. The charge stems from a 2018 discharge of oil and brine water into Adair County creeks.

Franklin was an operator at an oil lease tank battery in Columbia. His duties included ensuring that brine water, a waste product from oil production, was separated from the oil before it was delivered to customers. The indictment alleges that on Aug. 22, 2018, the oil/water separator at the site used to remove brine water was not functioning. Instead, to remove the brine water, Franklin attached a conduit to the bottom of the oil tank and placed the open end of the conduit yards from a nearby creek. Franklin opened the tank valve, allowing a mixture of brine water and oil to discharge from the tank. With the valve still open, Franklin left the site. As a result, approximately 100 barrels (about 4,000 gallons) of the oily mixture discharged into a nearby creek and eventually flowed into connecting tributaries.  

The Environmental Protection Agency and the Kentucky Department of Environmental Protection conducted the investigation. The maximum penalty under the Clean Water Act is three years’ imprisonment and a fine of $250,000. A court may also impose a restitution payment for the costs of the cleanup.

The government is represented by Senior Trial Attorney Daniel Dooher and Trial Attorney Ryan Connors of the Department of Justice’s Environmental Crimes Section.

An indictment is only an allegation, and the defendant is presumed innocent until proven otherwise before a jury at trial.