District Not Recorded

The Department of Justice today announced that it has reached an agreement with the Michigan Department of Corrections (MDOC) to resolve its investigation of MDOC, pursuant to the Religious Land Use and Institutionalized Persons Act (RLUIPA).

The investigation and agreement addressed MDOC’s policy of a five-person minimum for group worship and religious activities, its policy of prohibiting group religious practice for certain religious groups, including Hindu, Yoruba, Hebrew Israelite and Thelema practitioners, and its restrictions limiting access to the kosher-for-Passover diet to those on the kosher diet year-round.  These policies and procedures will be changed pursuant to the agreement reached today.

“The religious rights of all people, including those detained inside our nation’s jails and prisons, must be protected,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement will protect the religious practices of incarcerated persons across Michigan The Justice Department remains steadfast in its commitment to ensuring that the religious rights of prisoners are respected.”

“Federal law guarantees the right to freely exercise your religion to all Americans,” said Acting U.S. Attorney Saima Shafiq Mohsin for the Eastern District of Michigan. “We are pleased that this agreement makes it easier for prisoners in the custody of the Michigan Department of Corrections to exercise this fundamental right.”

“My office is dedicated to protecting the fundamental right to exercise one’s religion, which includes the rights of institutionalized persons to practice their faiths and worship together,” said U.S. Attorney Andrew Byerly Birge for the Western District of Michigan. “This agreement is an example of my office’s commitment to protecting religious freedom for all, and we are grateful for the MDOC’s willingness to work with us and implement new policies to ensure better protection for these rights.”

As part of the agreement, MDOC will make changes to its policies and practices.  The new policies and practices will (1) remove the five-person minimum for religious services and activities; (2) remove the prohibition on group religious practice for Hindu, Yoruba, Hebrew Israelite and Thelema practitioners; and (3) remove the requirement that incarcerated persons must be on the kosher diet year-round to receive the kosher-for-Passover meal. MDOC will also provide training to staff and chaplains involved in implementing the revised policy. The Department of Justice will have access to documents and correctional facilities to assess compliance with the agreement.

For additional information about the Civil Rights Division and the Special Litigation Section, please visit www.justice.gov/crt/special-litigation-section. Those interested in finding out more about RLUIPA may visit https://www.justice.gov/crt/religious-land-use-and-institutionalized-persons-act-0.  The Department of Justice issued a report on the 20th Anniversary of RLUIPA in 2020 (https://www.justice.gov/opa/press-release/file/1319031/download) and a statement on the Institutionalized Persons Provisions of RLUIPA in 2017 (/media/900231/dl?inline).

The U.S. Justice Department announced today that it has filed a lawsuit against the State of Texas and the Texas Secretary of State over certain restrictive voting procedures imposed by Texas Senate Bill 1, which was signed into law in September 2021. The United States’ complaint challenges provisions of Senate Bill 1 under Section 208 of the Voting Rights Act and Section 101 of the Civil Rights Act of 1964.

“Our democracy depends on the right of eligible voters to cast a ballot and to have that ballot counted,” said Attorney General Merrick B. Garland. “The Justice Department will continue to use all the authorities at its disposal to protect this fundamental pillar of our society.”

“The Civil Rights Division is committed to protecting the fundamental right to vote for all Americans,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Laws that impair eligible citizens’ access to the ballot box have no place in our democracy. Texas Senate Bill 1’s restrictions on voter assistance at the polls and on which absentee ballots cast by eligible voters can be accepted by election officials are unlawful and indefensible.”

The United States’ complaint contends that Senate Bill 1 violates Section 208 of the Voting Rights Act by improperly restricting what assistance in the polling booth voters who have a disability or are unable to read or write can receive. The complaint alleges that Senate Bill 1 harms those voters by barring their assistors from providing necessary help, including answering basic questions, responding to requests to clarify ballot translations or confirming that voters with visual impairments have marked a ballot as intended. The United States’ complaint also contends that Senate Bill 1 violates Section 101 of the Civil Rights Act of 1964 by requiring rejection of mail ballots and mail ballot request forms because of certain paperwork errors or omissions that are not material to establishing a voter’s eligibility to cast a ballot. The complaint asks the court to prohibit Texas from enforcing these requirements.

The department also filed a statement of interest today in a Texas federal court, in litigation brought by private plaintiffs challenging Senate Bill 1. The statement of interest addresses issues related to Section 2 of the Voting Rights Act, including explaining that Section 2 permits private plaintiffs to file suit to remedy racially discriminatory voting practices.

More information about the Voting Rights Act, the Civil Rights Act and other federal voting laws is available on the Department of Justice’s website at www.justice.gov/crt/about/vot. Complaints about discriminatory voting practices may be reported to the Voting Section of the Justice Department’s Civil Rights Division through the internet reporting portal at https://civilrights.justice.gov/ or by telephone at 1-800-253-3931.

View a list of the department’s actions to protect voting rights here.

El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con Rehrig Pacific Company (Rehrig Pacific), con sede en California. El acuerdo resuelve acusaciones de que Rehrig Pacific había discriminado a un no ciudadano de los EE. UU. cuando, por motivos de su estatus de ciudadanía, no le dio la oportunidad de presentar la documentación válida de su elección para demostrar su permiso para trabajar. 

«Es ilegal para los empleadores restringir la documentación que sus trabajadores pueden presentar para demostrar su autorización para trabajar por motivos de su estatus migratorio o ciudadanía», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles. «El Departamento de Justicia seguirá protegiendo los derechos de trabajadores que se enfrenten a discriminación ilegal».

La investigación del Departamento comenzó después de que un no ciudadano de los EE. UU. presentó una demanda de discriminación. La investigación determinó que la compañía, a la hora de comprobar que él seguía contando con permiso para trabajar, le había indicado que presentase un nuevo documento del Departamento de Seguridad Nacional. La Ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) prohíbe que los empleadores restrinjan o especifiquen los tipos de documentación que se le permiten al trabajador presentar para demostrar que cuenta con permiso para trabajar, por motivos de la ciudadanía, estatus migratorio o nacionalidad de origen de tal trabajador. Como resultado, incluso cuando un empleador tiene el requisito legal de comprobar el permiso continuo para trabajar de un trabajador, el empleador debe permitir al trabajador presentar la documentación válida que él mismo elija.

Conforme el acuerdo, Rehrig Pacific pagará una sanción civil a los Estados Unidos y capacitará a sus empleadores responsables de la verificación del permiso para trabajar en los EE. UU. de los trabajadores. Asimismo, el acuerdo requiere que Rehrig Pacific se someta a los requisitos de supervisión y declaración del Departamento.

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

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

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Para ver el texto original, ir a: https://www.justice.gov/opa/pr/justice-department-settles-transport-packaging-services-company-resolve-immigration-related

A West Virginia woman pleaded guilty today to willfully failing to pay over to the IRS employment taxes withheld from employees’ wages.

According to court documents and statements made in court, Diann Clark was an office manager and bookkeeper at Alpha Associates, an architectural firm in Morgantown where she managed payroll between 2014 and 2018. Clark was responsible for collecting and paying over to the IRS Social Security, Medicare and income taxes withheld from the wages of Alpha Associates employees. Despite knowing the firm withheld payroll taxes from its employees’ paychecks, Clark did not pay over these taxes to the IRS. As a result, Clark caused a total tax loss of $1,986,410.

Clark is scheduled to be sentenced at a later date. She faces a statutory maximum sentence 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 and U.S. Attorney William J. Ihlenfeld II of the Northern District of West Virginia made the announcement.

IRS-Criminal Investigation is investigating the case.

Trial Attorney Kevin Schneider of the Justice Department’s Tax Division and Assistant U.S. Attorney Danae DeMasi-Lemon of the Northern District of West Virginia are prosecuting the case.

The Department of Justice announced today that it has entered into a consent decree with Wilson County, North Carolina, that, if approved by the U.S. District Court for the Eastern District of North Carolina, will resolve the department’s complaint alleging retaliation in violation of Title VII of the Civil Rights Act of 1964, as amended. The complaint alleges that Wilson County Emergency Communications (WCEC) engaged in unlawful retaliation when it fired an employee, Jennifer Riddle, after she disclosed to supervisors that she had been sexually harassed while on the job.

Riddle was hired as a telecommunicator trainee for WCEC in 2017. Soon after she began working there, Riddle was sexually harassed by the agency’s assistant director. Riddle reported the harassment to multiple supervisors, and WCEC investigated. After concluding that Riddle’s complaints were valid, the County began the process of firing the assistant director, though he resigned before he was formally fired. Soon after the assistant director’s departure, Riddle began experiencing hostility from her supervisor and co-workers, culminating in a transfer. When she disclosed to the supervisors on her new shift that she had previously been sexually harassed by the assistant director and that WCEC failed to effectively deal with her harasser, the agency fired her.

“This lawsuit and settlement send a clear message that the department stands with the brave employees who oppose unlawful discrimination in the workplace, and that we will vigorously oppose any employer that attempts to use retaliation as a means to suppress an employee’s civil rights,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “With this consent decree, Wilson County has committed to improving the workplace for all of its employees by implementing enhanced anti-discrimination training, policies and investigative procedures.”

Under the terms of the consent decree, Wilson County will develop and submit to the United States for approval revised discrimination and retaliation policies, investigation procedures for complaints of discrimination, and trainings that will apply county-wide. The consent decree further requires Wilson County to pay Riddle $100,000 in compensatory damages and back pay.  

The enforcement of Title VII and other federal employment discrimination laws is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division and its work is available on its website at www.justice.gov/crt.

The case was brought by Trial Attorneys Christopher Woolley and Vendarryl Jenkins of the Civil Rights Division’s Employment Litigation Section.

A federal grand jury in Oxford, Mississippi, returned an indictment on Oct. 27 that was unsealed today, charging a Mississippi podiatrist with a scheme to defraud health care benefit programs, including Medicare, by prescribing and dispensing medically unnecessary medications and ordering medically unnecessary testing, including in exchange for kickbacks and bribes.

According to court documents, Carey “Craig” Williams, 63, of Water Valley, owned and operated a podiatry clinic, North Mississippi Foot Specialists P.C., as well as an in-house pharmacy. The indictment alleges that Williams regularly prescribed antibiotic and antifungal drugs to be mixed into a tub of warm water for patients to soak their feet. These drug cocktails often included capsules and creams that were not medically indicated to be dissolved in water and were often chosen based on their anticipated reimbursement amount rather than on medical necessity. The indictment also alleges that Williams ordered medically unnecessary molecular diagnostic testing to be performed on his patients’ toenail clippings, including testing for the bacteria that causes “cat scratch disease,” which is unlikely to be found in a toenail. In addition, the indictment alleges that Williams solicited and received cash kickbacks from a marketer in exchange for referring prescriptions for foot bath medications and referring biological specimens and testing orders to pharmacies and laboratories. Between approximately July 2016 and July 2021, Williams allegedly caused pharmacies to submit over $4.9 million in false and fraudulent claims to Medicare for dispensing expensive foot bath medications that were not medically necessary. Between approximately January 2018 and April 2021, Williams also allegedly caused a diagnostic laboratory to submit more than $6.4 million in false and fraudulent claims to Medicare for medically unnecessary molecular diagnostic testing. 

Williams is charged with one count of conspiracy to commit health care fraud and wire fraud; seven counts of health care fraud; one count of conspiracy to defraud the United States and to offer, pay, solicit, and receive kickbacks; and two counts of soliciting and receiving kickbacks. He made his initial court appearance today before U.S. Magistrate Judge David A. Sanders of the U.S. District Court for the Northern District of Mississippi. If convicted, Williams faces a maximum penalty of 20 years of imprisonment for conspiracy to commit health care fraud and wire fraud; 10 years of imprisonment per health care fraud count; five years of imprisonment for the kickback conspiracy count; and five years of imprisonment per count of soliciting and receiving kickbacks. 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; Acting U.S. Attorney Clay Joyner for the Northern District of Mississippi, Special Agent in Charge Derrick L. Jackson of the Department of Health and Human Services-Office of Inspector General (HHS-OIG), and Acting Assistant Director Jay Greenberg of the FBI’s Criminal Investigative Division made the announcement.

HHS-OIG and the FBI are investigating the case.

Trial Attorneys Sara E. Porter and Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Clayton A. Dabbs of the U.S. Attorney’s Office for the Northern District of Mississippi are prosecuting the case.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who collectively have billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.

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

The U.S. Department of Justice filed a civil antitrust lawsuit today to block Penguin Random House’s proposed acquisition of its close competitor, Simon & Schuster. As alleged in the complaint filed in the U.S. District Court for the District of Columbia, this acquisition would enable Penguin Random House, which is already the largest book publisher in the world, to exert outsized influence over which books are published in the United States and how much authors are paid for their work.

“The complaint filed today to ensure fair competition in the U.S. publishing industry is the latest demonstration of the Justice Department’s commitment to pursuing economic opportunity and fairness through antitrust enforcement,” said Attorney General Merrick B. Garland.

“Books have shaped American public life throughout our nation’s history, and authors are the lifeblood of book publishing in America. But just five publishers control the U.S. publishing industry,” the Attorney General continued. “If the world’s largest book publisher is permitted to acquire one of its biggest rivals, it will have unprecedented control over this important industry. American authors and consumers will pay the price of this anticompetitive merger – lower advances for authors and ultimately fewer books and less variety for consumers.”

“In stopping Penguin Random House from extending its control of the U.S. publishing market, this lawsuit will prevent further consolidation in an industry that has a history of collusion,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “I want to thank the Attorney General and senior leadership of the department for their support of antitrust enforcement.”

As described in the complaint, publishers compete to acquire manuscripts, which they edit, package, market, distribute and sell as books. Publishers pay authors advances for the rights to publish their books. In most cases, the advance represents an author’s total compensation for their work.

The publishing industry is already highly concentrated, as the complaint details. Just five publishers, known as the “Big Five,” are regularly able to offer high advances and extensive marketing and editorial support, making them the best option for authors who want to publish a top-selling book. Most authors aspire to write the next bestseller and selling their rights to the Big Five offers the best chance to do so.

While smaller publishers occasionally win the publishing rights to anticipated top-selling books, they lack the financial resources to regularly pay the high advances required and absorb the financial losses if a book does not meet sales expectations. Today, Penguin Random House, the world’s largest publisher, and Simon & Schuster, the fourth largest in the United States, compete head-to-head to acquire manuscripts by offering higher advances, better services and more favorable contract terms to authors. However, as the complaint alleges, the proposed merger would eliminate this important competition, resulting in lower advances for authors and ultimately fewer books and less variety for consumers.

The complaint alleges that the acquisition of Simon & Schuster for $2.175 billion would put Penguin Random House in control of close to half the market for acquiring publishing rights to anticipated top-selling books, leaving hundreds of individual authors with fewer options and less leverage. According to its own documents as described in the complaint, Penguin Random House views the U.S. publishing market as an “oligopoly” and its acquisition of Simon & Schuster is intended to “cement” its position as the dominant publisher in the United States.

Courts have long recognized that the antitrust laws are designed to protect both buyers and sellers of products and services, including, as relevant here, authors who rely on competition between the major publishers to ensure they are fairly compensated for their work. As the complaint makes clear, this merger will cause harm to American workers, in this case authors, through consolidation among buyers – a fact pattern referred to as “monopsony.”

The Antitrust Division’s Horizontal Merger Guidelines lay out a straightforward framework to analyze monopsony cases, and under those guidelines this transaction is presumptively anticompetitive. Simply put, if Penguin Random House acquires Simon & Schuster, the two publishers will stop competing against each other. As a result, authors will be paid less for their work. Authors who are paid less write less, which, in turn, means that the quantity and variety of books diminishes too.

Penguin Random House LLC is a subsidiary of Bertelsmann SE & Co. KGaA and is headquartered in New York, New York. Penguin Random House publishes 2,000 new trade books in the United States annually. In 2019, Penguin Random House reported revenues of $2.4 billion from U.S. publishing.

Simon & Schuster Inc. is a subsidiary of ViacomCBS Inc. and is headquartered in New York, New York. Simon & Schuster publishes 1,000 new trade books in the United States annually. In 2019, Simon & Schuster reported revenues of $760 million from U.S. publishing.

The Justice Department and the U.S. Attorney’s Office for the Middle District of Pennsylvania today announced a settlement agreement with Rite Aid Corporation that will help people with disabilities get information about COVID-19 vaccinations and book their vaccination appointments online. 

Rite Aid’s COVID-19 Vaccine Registration Portal, currently located at https://www.riteaid.com/covid-19, was not accessible to some people with disabilities, including those who use screen reader software and those who have a hard time using a mouse. For instance, the calendar on Rite Aid’s website used for scheduling vaccine appointments did not show screen reader users any available appointment times, and people who use the tab key instead of a mouse could not make a choice on a consent form that they needed to fill out before scheduling their appointment.       

“Equal access to healthcare is one of the most important rights guaranteed by the Americans with Disabilities Act,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “As the nation continues its response to the COVID-19 pandemic — through booster shots, vaccinations for children under 12, and ongoing outreach to those still in need of initial doses — people with disabilities must be able to schedule potentially lifesaving vaccine appointments as easily as people without disabilities can.”    

Under today’s settlement, Rite Aid has agreed to make content about the COVID-19 vaccine, including the forms for scheduling an appointment to get the vaccine, conform to the Web Content Accessibility Guidelines (WCAG), Version 2.1, Level AA. WCAG is a set of voluntary industry guidelines for making information on a website accessible to users with disabilities.  Rite Aid also must regularly test the pages of its website about vaccine scheduling and information and quickly fix any problems that keep people with disabilities from being able to use these pages.

“As technology increases, the internet is where people gain access to information about COVID-19 vaccines and schedule a vaccination appointment,” said Acting U.S. Attorney Bruce D. Brandler for the Middle District of Pennsylvania. “Individuals with disabilities, including those with visual impairments and those who cannot use a mouse, must be given the same access to that information and the ease of scheduling appointments online. Since the beginning of the fight against the COVID-19 pandemic, private companies have partnered with the United States. Today, with the help of Rite Aid, we make great strides in that continuing partnership by ensuring individuals with disabilities have the ability to schedule a COVID-19 vaccination independently and privately.”    

This matter was handled jointly by the Disability Rights Section of the department’s Civil Rights Division and Civil Rights Coordinator Michael Butler of the U.S. Attorney’s Office for the Middle District of Pennsylvania. Title III of the Americans with Disabilities Act (ADA) requires public accommodations like drugstores and grocery stores to provide individuals with disabilities with full and equal enjoyment of goods and services, such as vaccines. The ADA also requires public accommodations to ensure effective communication with people with disabilities, including by using auxiliary aids and services like accessible technology.

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. Anyone in the Middle District of Pennsylvania may also report civil rights violations to the Civil Rights Coordinator of the U.S. Attorney’s Office for the Middle District of Pennsylvania by calling 717-614-4911 or emailing usapam.civil.rights@usdoj.gov.

The Department of Justice’s Office of Community Oriented Policing Services (COPS Office) announced today $44.5 million in funding to support state-level law enforcement agencies in combating the illegal manufacturing and distribution of methamphetamine, heroin and prescription opioids. 

“The Department of Justice is very pleased to provide these critical public safety resources and continue supporting law enforcement efforts to battle against the national crisis posed by the manufacture and distribution of methamphetamine, heroin and prescription opioids,” said Associate Attorney General Vanita Gupta. “This funding will help to greatly reduce the availability of lethal drugs and maintain health and safety in our communities.”

Through the Anti-Heroin Task Force Program (AHTF), the COPS Office is awarding more than $31.1 million in grant funding to 13 state law enforcement agencies with multijurisdictional reach and interdisciplinary team (e.g., task force) structures. AHTF provides funding directly to state law enforcement agencies in states with high per capita rates of primary treatment admissions for heroin, fentanyl, carfentanil, and other opioids. This funding will support the location or investigation of illicit activities through statewide collaboration related to the distribution of heroin, fentanyl or carfentanil, or the unlawful distribution of prescription opioids.

Through the COPS Anti-Methamphetamine Program (CAMP), the COPS Office will also award more than $13.3 million to nine state law enforcement agencies that have demonstrated numerous seizures of precursor chemicals, finished methamphetamine, laboratories and laboratory dump seizures. This funding will support the location or investigation of illicit activities related to the manufacture and distribution of methamphetamine, including precursor diversion, laboratories or methamphetamine traffickers.

The complete list of Anti-Heroin Task Force Program award recipients, including funding amounts, can be found here: https://cops.usdoj.gov/pdf/2021AwardDocs/ahtf/Award_List.pdf

The complete list of COPS Anti-Methamphetamine Program award recipients, including funding amounts, can be found here: https://cops.usdoj.gov/pdf/2021AwardDocs/camp/Award_List.pdf

The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served. The COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of more than 134,000 officers.

Three police officers with the Shreveport Police Department were indicted today on federal civil rights charges.

Treveion Brooks, 26; William Isenhour, 25; and D’Andre Jackson, 25, are charged with deprivation of rights under color of law. The indictment alleges that on Jan. 24, 2020, Officer Brooks assaulted an arrestee, identified in the indictment only as D.R., resulting in bodily injury to D.R. The indictment further alleges that Officers Isenhour and Jackson assaulted another arrestee, identified as C.B., resulting in bodily injury to C.B.

The civil rights charges carry a maximum penalty of ten years; actual sentences are often much lower than the statutory maximum.

This case was investigated by the FBI. Assistant U.S. Attorneys Mary Mudrick and Cadesby Cooper of the Western District of Louisiana and Trial Attorney Anita Channapati of the Civil Rights Division are prosecuting the case.

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and Acting U.S. Attorney Alexander C. Van Hook of the Western District of Louisiana made the announcement.

An indictment is a formal accusation of criminal conduct, not evidence of guilt, and the defendant is presumed innocent unless proven guilty.

A federal grand jury returned a 23-count indictment this week charging seven Verbena, Alabama, residents with conspiracy to violate the Animal Welfare Act and to operate an illegal gambling business, among other violations, in connection with a large-scale cockfighting and fighting bird breeding operation.

The indictment alleges that, beginning at least as early as January 2018 and continuing through June of this year, the defendants maintained a cockfighting arena or “pit” with stadium seating for approximately 150 people and several rings to host cockfights. Cockfighting is a contest in which a person attaches a knife, gaff or other sharp instrument to the leg of a “gamecock” or rooster for the purpose of fighting another rooster. After a cockfighter straps a blade to a rooster, he or she intentionally faces the bird toward another similarly-armed rooster and sets it down within a few inches of that rooster. This results in a fight during which the roosters flap their wings and jump, while stabbing each other with the weapons that are fastened to their legs. A cockfight ends when one rooster is dead or refuses to continue to fight. Commonly, one or both roosters die after a fight.

Owners of cockfighting pits hold organized fights where many people can fight their trained birds against the fighting birds of other people. A series of individual cockfights is referred to as a “derby,” which usually consists of dozens of individual cockfights or matches that can last for several hours, or days. Cockfighting arenas, depending on the level of sophistication, will have multiple fighting pits. “Main fights” occur in the main pit, while “drag pits” are used to finish fights from the main pit that have lasted so long that many of the spectators have lost interest. Mortally injured roosters are sometimes placed off to the side where people can then gamble on which animal will die first.

According to court documents, Verbena, Alabama, residents William Colon “Big Jim” Easterling, 75; Brent Colon Easterling, 37; Kassi Brook Easterling, 38; William Tyler Easterling, 29; George William “Billy” Easterling, 55; and Thomas Glyn “Junior” Williams, 33, were charged with one count of conspiracy to violate the Animal Welfare Act and to operate an illegal gambling business since at least 2018 and, along with Amber Nicole Easterling, 23, are charged with a substantive count of operating an illegal gambling business. Each defendant is also charged with related substantive violations of the Animal Welfare Act. Tyler Easterling additionally is charged with a single violation of the Migratory Bird Treaty Act for capturing and killing a Great Horned Owl.

The Easterlings also operated three adjacent fighting bird breeding operations, one owned and operated by Big Jim Easterling; one called L&L Gamefarm, owned and operated by Brent and Kassi Easterling; and one called Swift Creek Gamefarm, owned and operated by Billy and Tyler Easterling with help from Junior Williams. At these operations, the defendants bred birds for promising fighting traits, sold and shipped birds from their breeding operations to other people for purposes of cockfighting and producing more birds to fight, and promoted the fighting abilities of the birds they bred. Brent and Kassi Easterling also promoted and sold cockfighting weapons from their breeding operation. At least one buyer is alleged to have paid $800 for a single rooster.

The defendants had their initial court appearance today, Oct. 29, before U.S. Magistrate Judge Susan Russ Walker of the U.S. District Court for the Middle District of Alabama.

If convicted of conspiracy, Animal Welfare Act violations, or operating an illegal gambling business, the defendants each face a maximum penalty of five years in prison. The Migratory Bird Treaty Act has a maximum penalty of six months in prison. Upon conviction, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The U.S. Department of Agriculture Office of Inspector General and Homeland Security Investigations are investigating the case.

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

A North Carolina tax return preparer was sentenced today to 20 months in prison for conspiring to defraud the IRS.

According to court documents and statements made in court, from 2012 through 2017, Andrea Pasley, of Durham, conspired with Karen Jones and Audrey Odom to prepare fraudulent tax returns for clients of Jones and Stone Taxes. Returns prepared by the conspirators claimed false education credits or dependents or manipulated the clients’ income to qualify for larger earned income tax credits. Under the scheme, some clients were charged up to $3,000 for preparing returns. Based on an analysis of the falsely claimed education credits, the conspirators caused a tax loss of approximately $1.2 million.

Jones and Odom also pleaded guilty to conspiracy to defraud the IRS and were sentenced earlier this year to 22 months and 15 months in prison, respectively, for their roles in the conspiracy.

In addition to the term of imprisonment, U.S. District Judge Catherine C. Eagles ordered Pasley to serve three years of supervised release and to pay approximately $1,264,493 in restitution to the United States. 

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina made the announcement.

IRS-Criminal Investigation investigated the case.

Trial Attorneys Todd Ellinwood and Kavitha Bondada of the Tax Division prosecuted the case.

The Department of Justice, together with the Federal Trade Commission (FTC), Thursday announced a civil enforcement action against defendants Xlear Inc. and Nathan Jones for alleged violations of the COVID-19 Consumer Protection Act and the FTC Act.

According to a complaint filed in the U.S. District Court for District of Utah, the defendants advertised that their saline nasal spray product could prevent or treat COVID-19, without competent or reliable scientific evidence to support those claims. Further, the defendants allegedly made deceptive statements about several scientific studies to bolster their unproven COVID-19 claims. The COVID-19 Consumer Protection Act, passed by Congress in December 2020, prohibits deceptive acts or practices associated with the treatment, cure, prevention, mitigation or diagnosis of COVID-19. The complaint also alleges violations of the FTC Act, which prohibits unfair and deceptive conduct, as well as false advertising. The complaint seeks civil penalties and injunctive relief to stop the defendants from continuing to make deceptive advertising claims.

“The Department of Justice will not tolerate individuals or companies attempting to profit from the current public health emergency by unlawfully and deceptively advertising unproven products,” said Acting Assistant Attorney General Brian M. Boynton of the Department of Justice’s Civil Division. “The department is committed to working with the FTC to enforce the FTC Act and the COVID-19 Consumer Protection Act against those who unlawfully market unproven COVID-19 treatments.”

“Companies can’t make unsupported health claims, no matter what form a product takes or what it supposedly prevents or treats,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “That’s the lesson of this case and many others like it, and it’s why people should continue to rely on medical professionals over ads.”

This matter is being handled by Trial Attorneys Noah Katzen and Alisha Crovetto of the Civil Division’s Consumer Protection Branch, and Assistant U.S. Attorney Joel Ferre from the U.S. Attorney’s Office for the District of Utah. Keith Fentonmiller and Courtney A. Estep represent the FTC.

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

Anyone with information about allegations of fraud related to 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.

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

The founder of a Russian bank was sentenced today for his felony conviction for filing a false tax return. As required under his plea agreement, prior to sentencing, Oleg Tinkov, aka Oleg Tinkoff, paid $508,936,184, more than double what he had sought to escape paying to the U.S. Treasury through a scheme to renounce his U.S. citizenship and conceal from the IRS large stock gains that he knew were reportable. This includes $248,525,339 in taxes, statutory interest on that tax and a nearly $100 million fraud penalty. Tinkov was additionally fined $250,000, which is the maximum allowed by statute, and sentenced to time served and one year of supervised release.

Tinkov was indicted in Sept. 2019 for willfully filing false tax returns, and was arrested on Feb. 26, 2020, in London, United Kingdom (UK). The United States sought extradition, and Tinkov contested on medical grounds. In public records, Tinkov has disclosed that he is undergoing a UK-based intensive treatment plan for acute myeloid leukemia and graft versus host disease, which has rendered him immunocompromised and unable to safely travel in the foreseeable future.

On Oct. 1, 2021, Tinkov entered a plea to one count of filing a false tax return. According to the plea agreement, Tinkov was born in Russia and became a naturalized United States citizen in 1996. From that time through 2013, he filed U.S. tax returns. In late 2005 or 2006, Tinkov founded Tinkoff Credit Services (TCS), a Russia-based branchless bank that provides its customers with online financial and banking services. Through a foreign entity, Tinkov indirectly held the majority of TCS shares. 

In October 2013, TCS held an initial public offering (IPO) on the London Stock Exchange and became a multi-billion dollar, publicly traded company. As part of going public, Tinkov sold a small portion of his majority shareholder stake for more than $192 million, and his assets following the IPO had a fair market value of more than $1.1 billion. Three days after the successful IPO, Tinkov went to the U.S. Embassy in Moscow, Russia, to relinquish his U.S. citizenship.

As part of his expatriation, Tinkov was required to file a U.S. Initial and Annual Expatriation Statement. This form requires expatriates with a net worth of $2 million or more to report the constructive sale of their assets worldwide to the IRS as if those assets were sold on the day before expatriation. The taxpayer is then required to report and pay tax on the gain from any such constructive sale.

Tinkov was told of his filing and tax obligations by both the U.S. Embassy in Moscow and his U.S.-based accountant. When asked by his accountant if his net worth was more than $2 million for purposes of filling out the expatriation form, Tinkov lied and told him he did not have assets above $2 million. When his accountant later inquired whether his net worth was under $2 million, rather than answer the question, Tinkov filled out the expatriation form himself falsely reporting that his net worth was only $300,000. On Feb. 26, 2014, Tinkov filed a 2013 individual tax return that falsely reported his income as only $205,317. In addition, Tinkov did not report any of the gain from the constructive sale of his property worth more than $1.1 billion, nor did he pay the applicable taxes as required by law. In total, Tinkov caused a tax loss of $248,525,339, which he has paid in full with substantial penalties and interest as part of his plea, together with tax liabilities for other years.

Acting Deputy Assistant Attorney General Stuart M. Goldberg, Acting U.S. Attorney Stephanie M. Hinds for the Northern District of California and Acting Special Agent in Charge Darrell J. Waldon of the IRS-CI Washington, D.C. Field Office made the announcement.

The IRS-Criminal Investigation Division investigated the case. The Justice Department’s Office of International Affairs and law enforcement partners in the UK secured Tinkov’s arrest overseas.

Assistant U.S. Attorneys Michelle J. Kane and Colin Sampson and former Assistant U.S. Attorney Jose Olivares of the U.S. Attorney’s Office for the Northern District of California and Trial Attorney Peter Anthony and former Assistant Chief Yael T. Epstein of the Tax Division prosecuted the case.

U.S. Attorney General Merrick B. Garland today announced the restoration of a standalone Office for Access to Justice within the Justice Department dedicated to improving the federal government’s understanding of and capacity to address the most urgent legal needs of communities across America.

“Making real the promise of equal justice under law was the founding principle of the Department of Justice and is the mission for which it must always stand,” said Attorney General Garland. “There can be no equal justice without equal access to justice. And because we do not yet have equal access to justice in America, the task before us is urgent.”

Today’s announcement is the first step in the Attorney General’s phased strategic plan to restore and expand the emphasis on access to justice within the department and throughout the federal government. The plan, which was submitted to the President last month, resulted from a strategic review process launched by the Attorney General in May, which engaged a wide range of stakeholders across all levels of government and beyond nationwide – including civil legal aid and public-defender organizations; pro bono practitioners; bar associations; data scientists; and leaders in environmental justice, economic justice and immigration reform. The review revealed that longstanding justice gaps in our country have been exposed and exacerbated by COVID-19. It identified a clear and immediate need for the restoration of a standalone office within the Justice Department dedicated to the mission of closing those gaps.

“As the only agency in our federal government that bears the name of a value, the Justice Department has a unique charge,” said Associate Attorney General Vanita Gupta. “Justice exists only if it is accessible to all. For this reason, the Attorney General’s decision to rebuild the Office for Access to Justice and expand our efforts to remove the barriers to equal justice under law is a critical step.”

In addition to restoring the Office for Access to Justice within the Justice Department, in his capacity as co-chair of the Legal Aid Interagency Roundtable (Roundtable), Attorney General Garland also released the Roundtable’s 2021 report together with White House Counsel Dana Remus. The Roundtable, which the President reconvened earlier this year, brings together more than two dozen federal departments and agencies across the federal government to address the most pressing legal services challenges that low-income communities, communities of color, and many others across our country face today. The report released today details efforts across the federal government to drive innovation and expand access to justice during the COVID-19 pandemic.

A Rwanda native, most recently residing in Buffalo, New York, has been denaturalized by consent and departed from the United States under an order of removal following the filing of a complaint citing his suspected involvement in the Rwandan genocide in 1994.

According to court documents, Peter Kalimu, aka Pierre Kalimu, aka Fidele Twizere, was living in Rwanda in 1994, when violent conflict erupted between the country’s two major ethnic groups, the Hutus and the Tutsis. During the conflict, often referred to as the Rwandan genocide, members of the majority Hutu population persecuted the minority Tutsis, committing mass murder and looting their property, among other crimes. An estimated 800,000 ethnic Tutsis and moderate Hutus were killed during the three-month genocide. The complaint against Kalimu alleged that he participated in two attacks on Tutsi families in his neighborhood during the genocide, and that he looted property from Tutsi families whose houses he then destroyed. Kalimu denied these allegations.

According to the civil denaturalization complaint, while living in Rwanda, Kalimu went by the name Fidèle Twizere. After he left Rwanda, he used a different name – Pierre Kalimu – and provided only that name, and a new date of birth, on his U.S. immigration forms. Throughout the process of applying for permanent residence and U.S. citizenship, Kalimu never disclosed to the U.S. government his previous identity as Fidèle Twizere or his prior use of a different date of birth. The complaint further alleged that Kalimu’s misrepresentations about his identity precluded U.S. government officials from investigating him and determining that he was not qualified to obtain immigration and naturalization benefits.

Kalimu admitted that he was ineligible for citizenship because he engaged in welfare fraud in New York in 2003-2004 – one of the allegations in the civil denaturalization complaint – and agreed to denaturalization. The Justice Department obtained an order from the U.S. District Court for the Western District of New York, effective Sept. 1, revoking Kalimu’s naturalized U.S. citizenship by consent, and the court entered judgment in favor of the United States on Sept. 30. 

In a separate prosecution, in 2018, Kalimu pleaded guilty to, and was convicted of, one felony count of making materially false statements about his true name to federal investigators of the Department of Homeland Security (DHS).

On Oct. 12, a U.S. Immigration Judge in Buffalo, ordered Kalimu’s removal for making materially false statements to procure immigration and naturalization benefits. Kalimu agreed to the entry of the order against him. On Oct. 21, Kalimu departed the United States. 

“In seeking to escape his past in Rwanda, Kalimu obscured his true identity and repeatedly lied to immigration officers in order to become a U.S. citizen,” said Assistant Attorney General Kenneth A. Polite Jr. of the plJustice Department’s Criminal Division.

“The United States will not be a safe haven for suspected human rights violators,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Justice Department is dedicated to preventing those who commit human rights violations from evading our immigration laws.”  

“Kalimu’s misrepresentations to the U.S. government paved the way for the defendant to avoid discovery of his past transgressions and to establish a life in the United States, which included benefits afforded to all citizens,” stated U.S. Attorney Trini E. Ross of the Western District of New York. “Because of the diligent work of the various government agencies involved with this investigation to uncover the truth and make amends for the lies and omissions of the defendant, he was rightly prosecuted, was removed from our country, and can no longer escape his actual past.” 

“HSI special agents will not cease in our pursuit of identifying and bringing to justice those individuals who have participated in unthinkable war crimes and human rights abuses,” said Executive Associate Director Steve Francis of Homeland Security Investigations (HSI). “In coordination with the HSI-led Human Rights Violators and War Crimes Center in Washington, D.C., our special agents and prosecutors continue to ensure that perpetrators are held accountable and denied safe haven in the United States.”

This matter was litigated by the Department of Justice Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and the Civil Division’s Office of Immigration Litigation (OIL) Enforcement Section; and the U.S. Attorney’s Office for the Western District of New York.

U.S. Immigration and Customs Enforcement’s (ICE) HSI Buffalo and HSI’s Human Rights Violators and War Crimes Unit investigated this matter. Valuable consultation and support were provided by ICE’s Office of the Principal Legal Advisor (OPLA) Human Rights Law Division and the Buffalo Office of the Principal Legal Advisor.

The civil denaturalization case was prosecuted by Senior Counsel Steven Platt of OIL; Assistant U.S. Attorney Daniel Moar for the Western District of New York; Trial Attorney Susan Masling, and Director of Human Rights Enforcement Strategy and Policy Eli Rosenbaum of HRSP, supported by HRSP Chief Historian Dr. Jeffrey Richter. The removal case was litigated by ICE’s Buffalo Office of the Principal Legal Advisor.

Members of the public who have information about foreign nationals or naturalized U.S. citizens suspected of engaging in human rights abuses or war crimes are encouraged to call the ICE tip line at 1-866-DHS-2-ICE or to complete its online tip form.

The Department of Justice today announced that the Office of Justice Programs (OJP) will award more than $21 million to investigate and prosecute hate crimes and assist hate crime victims. Funding will help state, local and tribal agencies and community organizations address an alarming rise in violent and property crimes committed on the basis of race, color, national origin, sexual orientation, gender, gender identity or disability.

“Hate crimes instill fear across entire communities. They have profoundly negative and unacceptable effects on our society,” said Associate Attorney General Vanita Gupta. “The department is committed to using all tools at our disposal to combat unlawful acts of hate. These awards will provide state, local and tribal agencies additional support and critical resources to address hate crimes and their far-reaching effects.”

Today’s announcement comes on the 12th anniversary of the enactment of the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, signed into law by President Barack Obama in 2009. Shepard, a gay 21-year-old Wyoming man, and Byrd, a 49-year-old African-American man from Jasper, Texas, were slain in separate incidents in 1998. Shepard was beaten, tortured and left to die near Laramie, Wyoming. His killers were convicted of murder and are serving two life sentences. Byrd was tied to the back of a pick-up truck by white supremacists and dragged to his death. Two of the murderers were executed for the brutal crime. The Shepard-Byrd Hate Crimes Prevention Act enables the Justice Department to prosecute crimes motivated by race, color, religion and national origin without having to show that the victim was engaged in a federally protected activity. The Act also empowers the department to prosecute hate crimes committed because of a person’s sexual orientation, gender, gender identity or disability.

OJP’s Bureau of Justice Assistance (BJA) is administering a new program named in honor of Shepard and Byrd. The Act makes grant funds available to improve the investigation and prosecution of hate crimes. Through the Shepard-Byrd solicitation and the related Collaborative Responses to Hate Crimes program that seeks to address precipitous increases in hate crimes, OJP’s BJA will award $8.4 million in site-based funding and training and technical assistance.   

“Acts of violence and destruction motivated by hate and bias cause lasting harm to victims, terrorize entire communities and divide our nation, leaving deep scars and stalling the march toward equal justice,” said Acting Assistant Attorney General Amy L. Solomon of OJP. “We must work together to bridge the gaps of empathy, root out intolerance in all its forms and send a clear message that the future belongs to every American, no matter what they look like, how they worship and whom they love.”

BJA will also make $1.5 million in site-based awards under the Emmett Till Unsolved Civil Rights Crimes Reauthorization Act of 2016 to help solve cold case civil rights murders that occurred before Dec. 31, 1979. Till, an African-American teenager, was visiting his family in Money, Mississippi, during the summer of 1955 when he was abducted, beaten and killed. Two local men were prosecuted for the crime but were acquitted by an all-white jury, though they later confessed to the killing. Till’s case helped galvanize the nascent civil rights movement. BJA will award an additional $1.8 million to offer training and technical assistance to other communities seeking to resolve these cases, including making microgrants to the field.

OJP’s Office for Victims of Crime (OVC) has awarded $2 million to respond to the needs of individuals and communities victimized by hate crime. OVC’s Services to Support Victims of Hate Crime and Strengthen Communities program funds innovative, field-generated projects that promote awareness, healing, reconciliation, service access and resource development. OVC is also providing technical assistance to state, local and tribal service providers to help identify and serve hate crime victims.

OJP’s National Institute of Justice (NIJ) has awarded almost $7.5 million to support research designed to develop a better understanding of the phenomenon known as domestic radicalization and to advance evidence-based strategies for preventing and intervening in acts of domestic terrorism. NIJ recently concluded projects to construct a database of individuals arrested or charged with hate crimes and to develop detailed, nationally representative data on hate crime incidents known to police. 

For more information about efforts across the Department of Justice to address hate crime, please visit https://www.justice.gov/hatecrimes.

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

The Civil Rights Division and U.S Attorney’s Office for the District of Vermont today announced a settlement agreement with the Vermont Department of Corrections (VDOC) to ensure that inmates with disabilities have equal access to Vermont’s correctional facilities, programs, services and activities. The agreement resolves the department’s investigation into complaints that VDOC does not provide accessible facilities for inmates with mobility disabilities, and does not ensure effective communication for inmates with hearing disabilities, as required under Title II of the Americans with Disabilities Act (ADA).

The settlement agreement protects the rights of inmates with disabilities to equal access to educational, counseling and recreational programs, as well as to prison facilities such as visitation areas, libraries, medical facilities, intake processing, accessible cells and routes to and through prison buildings. The agreement also requires VDOC to ensure that inmates with hearing disabilities receive appropriate auxiliary aids and services, such as sign language interpreters, video telephones and hearing aids when necessary to ensure effective communication. Under the settlement agreement, VDOC must also make reasonable modifications to its policies, practices and procedures to accommodate inmates with disabilities.

“The Americans with Disabilities Act mandates that individuals with disabilities have equal access to state-provided programs, services, facilities and activities,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “The Civil Rights Division is committed to ensuring that correctional institutions eliminate physical and communication barriers that prevent inmates with disabilities from participating fully in prison programs.”

“People with disabilities in Vermont deserve equal access, and that does not change when they are incarcerated,” said Acting U.S. Attorney Jonathan A. Ophardt for the District of Vermont. “The Vermont Department of Corrections has now committed to removing barriers to participation for inmates with disabilities in VDOC facilities, including inmates who have physical and communication disabilities. Our office remains dedicated to supporting efforts to improve access and inclusion for everyone in Vermont.”

Title II of the ADA requires state government entities like VDOC to provide inmates with disabilities, including inmates with mobility and hearing disabilities, with an equal opportunity to participate in their programs, services, and activities. The ADA also requires public entities to make reasonable modifications to policies for inmates with disabilities when needed.

As a result of the agreement announced today, VDOC will:

• Make structural changes to prison buildings and facilities to comply with the ADA Standards for Accessible Design;
• Implement a process that begins at intake, and continues throughout incarceration, to identify and accommodate inmates with disabilities;
• Develop individualized communication assessments and plans setting out the auxiliary aids and services necessary to ensure effective communication for inmates with hearing disabilities;
• Identify and remediate physical barriers to access for inmates with mobility disabilities to ensure access to accessible prison cells and work assignments;
• Provide training on Title II of the ADA to correctional staff and management responsible for evaluating or making decisions about inmate requests for accommodations;
• Engage in compliance reporting and monitoring with the Justice Department; and
• Pay $80,000 to compensate current and former inmates who were harmed.

This matter was handled jointly by Assistant U.S. Attorney Jules Torti of the U.S. Attorney’s Office for the District of Vermont and the Disability Rights Section of the department’s Civil Rights Division.

July 26 marked the 31st Anniversary of the ADA. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. For more information on the Civil Rights Division, please visit http://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 http://www.ada.gov/complaint. Additional information about the U.S. Attorney’s Office Civil Rights Programs is available at http://www.justice.gov/usao-vt.

Today, the Department of Justice announced that it has reached an agreement in principle to settle the civil cases arising out of the June 2015 Mother Emanuel AME Church mass shooting in Charleston, South Carolina.

These settlements will resolve claims by 14 plaintiffs arising out of the shooting. Plaintiffs agreed to settle claims alleging that the FBI was negligent when it failed to prohibit the sale of a gun by a licensed firearms dealer to the shooter, a self-proclaimed white supremacist, who wanted to start a “race war” and specifically targeted the 200-year-old historically African-American congregation. For those killed in the shooting, the settlements range from $6 million to $7.5 million per claimant. For the survivors, the settlements are for $5 million per claimant. 

The parties have been in litigation since 2016, including before the district court and the federal court of appeals.

“The mass shooting at Mother Emanuel AME Church was a horrific hate crime that caused immeasurable suffering for the families of the victims and the survivors,” said Attorney General Merrick B. Garland. “Since the day of the shooting, the Justice Department has sought to bring justice to the community, first by a successful hate crime prosecution and today by settling civil claims.” 

“The nation grieved following the mass shooting at Mother Emanuel, and no one was more profoundly affected than the families of the victims and the survivors we have reached a settlement with today,” said Associate Attorney General Vanita Gupta. “The department hopes that these settlements, combined with its prosecution of the shooter will bring some modicum of justice to the victims of this heinous act of hate.”

“The department is pleased to bring closure to this long-running litigation,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “These settlement agreements represent another chapter in the justice system’s efforts to address this horrific event, following the government’s prosecution and conviction of the shooter for federal hate crimes.”

On June 17, 2015, Mother Emanuel congregants welcomed a stranger who had entered their church. They invited him to participate in their Wednesday night bible study. Tragically, at the close of the bible study, the young man they had welcomed killed nine people, including Mother Emanuel’s pastor, Reverend Clementa Pinckney, also a South Carolina State Senator.

The families of the Emanuel Nine, as well as the five survivors who were inside the church at the time of the shooting, sued the government. They sought to recover for wrongful death and physical injuries arising from the shooting. Plaintiffs asserted that the FBI’s National Instant Criminal Background Checks System (NICS) failed to timely discover that the shooter was a person prohibited by federal law from possessing a firearm. Plaintiffs alleged that because of this delay, the shooter was able to purchase the handgun that he used to commit the atrocity.

The FBI and NICS play a crucial role in combating gun violence. Since this tragic shooting, the FBI has worked to strengthen and improve the background check process. The department and FBI are also actively working to combat gun violence, which is a significant aspect of the department’s comprehensive violent crime reduction strategy. After the shooting, the department prosecuted the shooter for federal hate crimes and obtained a conviction.

Under applicable law, the court must approve the settlements for many of the plaintiffs. All parties expect that the court will agree that these settlements are fair and reasonable. This case was handled by the Justice Department’s Civil Division.

ST. LOUIS – On March 3, 2021, a federal grand jury indicted Tishonda Turner for knowingly making a false and fictitious statement to a firearms dealer, which statement was intended and likely to deceive the licensed dealer, and Freddie Tilmon for knowingly possessing a firearm as a convicted felon.

 

According to the indictment, on or about July 16, 2020, in St. Louis County, within the Eastern District of Missouri, and again on or about August 8, 2020, Turner in connection with the acquisition of one or more firearms from The Range STL West, a licensed dealer, did knowingly make a false and fictitious written statement to the dealer, which statement was intended and likely to deceive said licensed dealer. Turner represented that she was the actual buyer of one or more firearms, when, in fact, she was acquiring the firearms on behalf of Freddie Tilmon. 

 

On November 21, 2020, Mr. Tilmon was pulled over and arrested while driving in Sandy Springs, Georgia. Officers later discovered a firearm on the driver’s seat floorboard. The firearm was loaded and had an extended magazine. A records check revealed that the firearm was purchased at the Range STL West on August 08, 2020.   Tilmon was also subsequently indicted in the Northern District of Georgia for knowingly possessing a firearm as a convicted felon. 

 

On October 14, 2021, the United States Marshals Service arrested Tilmon in St. Louis County pursuant to the indictment.  At the time of his arrest, Tilmon was discovered to be in possession of a loaded 9mm, with an extended magazine.  Tilmon was additionally charged for illegally possessing the firearm when arrested by the Marshals Service.  Tilmon is prohibited from possessing firearms due to a previous criminal conviction. 

 

Charges set forth in the indictment are merely accusations and do not constitute proof of guilt.  Every defendant is presumed to be innocent unless and until proven guilty. 

 

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Marshals Service.

A federal grand jury in Shreveport, Louisiana, returned an indictment charging Jared Desadier, 43, with assaulting an arrestee in Ouachita Parish. The two-count indictment charges Desadier with willfully depriving an individual of his right to be free from unreasonable seizure and with witness tampering.

The indictment alleges that, on April 21, 2020, Desadier, while acting in his official capacity as an officer of the Monroe Police Department, used unjustified force against an arrestee by kicking him in the area of his face and head, and that the assault caused bodily injury and involved the use of a dangerous weapon (a shod foot). The indictment further alleges that Desadier attempted to cover up his misconduct by engaging in misleading conduct towards his supervisors. Specifically, the indictment alleges that after the arrestee complained in the presence of supervising officers that he had been assaulted, Desadier claimed that he had not touched or harmed the arrestee and blamed the arrestee’s injuries on a fall. 

If convicted, Desadier faces a maximum sentence of 10 years of imprisonment for the deprivation-of-rights offense and 20 years of imprisonment for the witness tampering offense.

Wednesday’s indictment was announced by Acting U.S. Attorney Alexander C. Van Hook for the Western District of Louisiana, Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and  Special Agent in Charge Douglas Williams FBI New Orleans. 

The case is being investigated by the FBI’s New Orleans Field Office. The case is being prosecuted by Assistant U.S. Attorney Brian Flanagan of the Western District of Louisiana and Trial Attorney Thomas Johnson of the Civil Rights Division.

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

Sextant Marine Consulting LLC (Sextant), a Florida-based duct cleaning company, has agreed to pay $30,000 in damages and civil penalties to settle allegations that it violated the False Claims Act by obtaining more than one Paycheck Protection Program (PPP) loan in 2020. Sextant also repaid the duplicative PPP funds in full to its lender, relieving the U.S. Small Business Administration (SBA) of liability to the lender for the federal guaranty of approximately $170,000 on the improper loan.   

Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other business expenses. Throughout 2020, PPP loan applicants were required to certify that they would not receive more than one PPP loan prior to Dec. 31, 2020. This settlement resolves allegations that Sextant applied for and received a second, duplicative PPP loan in 2020.

“PPP loans were intended to provide critical relief to small businesses so that they could retain employees and keep their doors open,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “We will ensure that those who improperly obtain federally guaranteed PPP loans are held accountable.”

“The Paycheck Protection Program is intended to provide a lifeline to the nation’s small businesses and its employees” said Inspector General Hannibal “Mike” Ware of the SBA Office of Inspector General (OIG). “OIG will aggressively investigate allegations of wrongdoing in SBA’s pandemic response programs. I want to thank the Department of Justice for its dedication to achieving this settlement.”

“The settlement in this matter demonstrates the excellent results achieved through the combined efforts of SBA and the Department of Justice to uncover and forcefully respond to Paycheck Protection Program fraud,” said General Counsel Peggy Delinois Hamilton of the SBA Office of the General Counsel. “SBA is strongly committed to identifying and aggressively pursuing instances of fraud perpetrated by those taking advantage of SBA COVID-19 assistance programs.”

Wednesday’s civil settlement includes the resolution of a claim brought under the qui tam or whistleblower provisions of the False Claims Act by J. Bryan Quesenberry. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. Mr. Quesenberry will receive $4,500. The matter remains under seal as to allegations against entities other than Sextant.

The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Southern District of Florida, with assistance from the SBA’s Office of General Counsel and Office of the Inspector General.

This matter was handled by Trial Attorney Jared S. Wiesner of the Civil Division and Assistant U.S. Attorney James A. Weinkle of the Southern District of Florida.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. 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.

Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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

Thirteen defendants, including three compounding pharmacy owners, three physicians, two pharmacists, and three patient recruiters, pleaded guilty in the Southern District of Texas to a years-long, multi-state scheme to defraud the U.S. Department of Labor’s (DOL) Office of Workers’ Compensation Programs (OWCP) and TRICARE.

According to court documents, the defendants submitted false and fraudulent claims to the OWCP and TRICARE for prescriptions for compounded and other drugs prescribed to injured federal workers and members of the armed forces. The defendants also paid kickbacks to patient recruiters and to physicians to induce them to prescribe these drugs. The defendants chose the particular compounds and other drugs based not on the patients’ medical needs but in light of the amount of reimbursement for the drugs. The drugs were then mailed to patients, even though the patients often never requested, wanted, or needed them. 

“The health care fraud and kickback scheme executed by these defendants manipulated federal health care programs for personal gain without regard for patient need or medical necessity,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “I applaud our prosecutors and law enforcement partners for their hard work on this investigation and prosecution. The Department of Justice is committed to holding accountable those whose unlawful conduct targets federal health care programs.”

“Last week’s guilty pleas are a testament to the dedication and determination of the investigative and legal teams,” said Acting Special Agent in Charge Jonathan Ulrich of the U.S. Postal Service Office of Inspector General (USPS-OIG), Southern Area Field Office. “The Postal Service spends hundreds of millions of dollars annually on health care related costs and these monies are critical to those who legitimately need medical services. As in this case, our criminal investigators will diligently pursue any individual or organization intent on defrauding the Postal Service with an eye on both federal prosecution and returning lost monies to the affected program.”

“These defendants put illegal profits above patients’ safety,” said Special Agent-in-Charge Steve Grell of the DOL Office of Inspector General (DOL-OIG), Dallas Region. “Last week’s pleas highlight our commitment to working with our law enforcement partners and OWCP to protect the integrity of DOL’s benefit programs.”

“As the investigative arm of the Department of Defense Office of Inspector General, the Defense Criminal Investigative Service (DCIS) is committed to protecting the integrity of the TRICARE program,” said Special Agent in Charge Michael C. Mentavlos of the DCIS Southwest Field Office. “The results of this case are a testament to the resolve of DCIS, our law enforcement partners, and the U.S. Attorney’s Office to hold individuals that attempt to defraud the TRICARE program accountable.”

The defendants were charged in a June 2018 indictment and pleaded guilty to wire fraud, health care fraud, and/or kickback charges. All 13 defendants are scheduled to be sentenced in February 2022 and face a statutory maximum sentence of between five and 20 years. U.S. District Judge Sim Lake of the Southern District of Texas will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The USPS-OIG, DOL-OIG, and DCIS investigated the case with assistance from the U.S. Department of Veterans Affairs, Office of Inspector General.

Trial Attorneys Catherine Wagner, Patrick Queenan, and Jay McCormack of the Criminal Division’s Fraud Section are prosecuting the case. Trial Attorneys Scott Armstrong, Sarah Edwards, John Scanlon, and Michael McCarthy of the Fraud Section previously prosecuted the case.

A U.S. citizen residing outside the United States was sentenced today to 108 months in prison for attempting to molest an 11-year-old boy in Vietnam.

Joseph Ricky Park, 67, aka Joseph Demasi, pleaded guilty on Feb. 24 to attempting to engage in illicit sexual conduct with a child. According to court documents, around January 2015, while living in Vietnam, Park invited three Vietnamese boys to his apartment under the guise of offering English language instruction. At his apartment, while the boys played video games, Park placed his hand on a victim’s genitals and then proceeded to “pinch” and stroke the victim’s genitals through the victim’s clothing. Park then placed his hand inside the victim’s pants and attempted to continue stroking the victim’s genitals, but the victim pushed Park’s hand away. 

Park was prosecuted in this case following a 2013 amendment to a federal criminal statute that prohibits U.S. citizens residing abroad from committing sex offenses against minors. Park, who resided outside the United States without returning from March 2003 until his arrest in this case in January 2016, challenged the constitutionality of this provision. In September 2019, in the first appellate opinion to consider the issue, the U.S. Court of Appeals for the District of Columbia Circuit upheld the application of this statute to the facts of this case.

According to court documents, Park has multiple prior convictions for offenses against minors. In 1987, he was convicted in Connecticut of two counts of injury or risk of injury to children, and one count of sexual assault in the second degree, for which he received concurrent sentences of ten years’ imprisonment, and served five years in prison, then was released, violated probation, and was re-imprisoned. In 2003, he was convicted of attempted corruption of a minor in Cuba and served more than two years in prison. According to court documents, the defendant repeatedly acknowledged having a sexual attraction to boys nearing or going through puberty.

Homeland Security Investigations investigated the case, with valuable assistance provided by agents in Vietnam, Thailand, the Philippines, Guam, and the FBI’s Washington Field Office.

Deputy Chief Alexandra R. Gelber and Trial Attorney Lauren S. Kupersmith of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case. Attorney Sonja Ralston of the Criminal Division’s Appellate Section handled the appeal.

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

The Department of Justice today announced that it has reached a settlement agreement with Priority Construction Corporation, located in Baltimore, Maryland. The settlement resolves the department’s claims that Priority Construction violated the anti-discrimination provision of the Immigration and Nationality Act (INA) by failing to consider workers in the United States (such as U.S. citizens, U.S. nationals, asylees, refugees and recent lawful permanent residents) for employment opportunities due to the company’s preference for workers with H-2B visas.  

“Employers should fully and fairly consider the qualifications of all applicants and not allow unlawful preferences based on citizenship or immigration status to affect the hiring process,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division is committed to eradicating discriminatory barriers and protecting workers from hiring discrimination.”

The department’s investigation determined that from at least Jan. 1, 2019 to March 11, 2019, Priority Construction discriminated against applicants in the United States by failing to fully and fairly consider them for temporary laborer positions, due to the company’s preference for H-2B visa workers. Specifically, Priority Construction claimed at the time it could not find sufficient qualified U.S. workers, when in fact it had not taken the time to fairly assess the local applicants who had applied to determine if they were qualified. The Department of Labor requires employers seeking permission to hire H-2B workers to first hire all qualified and available U.S. workers who apply by the relevant deadline. The department also concluded that the company attempted to discourage U.S. workers from applying by putting unnecessarily restrictive job requirements in a 2019 job announcement, such as three months of experience, when it would have accepted workers with one month of experience. The INA prohibits employers from refusing to consider, recruit or hire U.S. citizens and protected non-U.S. citizens – such as U.S. nationals, asylees, refugees, and recent lawful permanent residents – because of their citizenship or immigration status.    

Under the settlement, Priority Construction will pay $40,600 in civil penalties to the United States, and conduct enhanced U.S. worker recruitment and advertising for future positions. The settlement also requires Priority Construction to be subject to departmental monitoring and reporting requirements and train employees on how to avoid discrimination under the INA. 

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

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

The Department of Justice and Federal Trade Commission (FTC) will jointly host a virtual public workshop on Dec. 6 and 7, to discuss efforts to promote competitive labor markets and worker mobility. The workshop will bring together lawyers, economists, academics, policy experts, labor groups and workers, and will cover recent developments at the intersection of antitrust and labor, as well as implications for efforts to protect and empower workers through competition enforcement and rulemaking.  

A series of panels, presentations and remarks will address competition issues affecting labor markets and the welfare of workers, including: labor monopsony; the increased use of restrictive contractual clauses in labor agreements, including non-competes and non-disclosure agreements; information sharing and benchmarking activity among competing employers; the role of other federal agencies in ensuring fair competition in labor markets; and the relationship between antitrust law and collective bargaining efforts in the “gig economy.” Panelists will be invited to discuss potential steps antitrust enforcers can take to better target enforcement resources, improve public guidance and pursue a whole-of-government approach to ensuring fair competition for workers and consumers by leveraging interagency resources.

The Department of Justice and FTC invite comments from the public on the topics covered by this workshop. Interested parties may submit public comments online now through Dec. 20, at https://www.regulations.gov/docket/FTC-2021-0057.

The workshop will be held virtually and webcast on the FTC’s website at FTC.gov. A recording of the workshop will be available on the Antitrust Division’s website and the FTC’s website. An agenda, list of speakers and instructions for accessing the webcast will be available in the near future at https://www.justice.gov/atr/events/public-workshop-promoting-competition-labor-markets.

A federal grand jury in the District of Kansas has returned an eight-count indictment against eight defendants for their alleged roles in a forced labor conspiracy that victimized numerous minors who, between 2000 and 2012, worked in various food service and other businesses in Kansas and around the United States.

The indictment alleges that from 2000 through 2012, the defendants participated in running an organization called the United Nation of Islam (UNOI), an organization founded by the now deceased Royall Jenkins. The UNOI is alleged to have subjected multiple minors employed at UNOI-operated businesses in Kansas, New York, New Jersey, Georgia, Connecticut, Ohio and elsewhere, to forced labor.

The indictment charges the following individuals with conspiracy to commit forced labor and forced labor:

 

Kaaba Majeed

Age: 47

Jonesboro, GA

 

Yunus Rassoul

Age: 36

Cape Coral, FL

 

James Staton

Age: 59

Fayetteville, NC

 

Daniel Aubrey Jenkins

Age: 40

Lawrenceville, GA

 

Randolph Rodney Hadley

Age: 46

Fairburn, GA

 

Jacelyn Greenwell

Age: 42

Severn, MD

 

Etenia Kinard

Age: 46

Waldorf, MD

 

Dana Peach

Age: 57

Clinton, MD

 

The indictment alleges that over the course of more than a decade, the defendants coerced the victims into physically demanding labor at various UNOI-owned businesses around the United States. The defendants allegedly used coercive tactics, such as separating victims from their families; withholding food; abusing victims physically and verbally; subjecting victims to crowded living conditions; psychological manipulation; degrading treatment; isolating victims and limiting their ability to interact with anyone outside of UNOI; and suggesting to victims that those who left UNOI met tragic consequences. Although the victims were school-aged, it is alleged the defendants did not provide them with an adequate or legitimate education.

The defendants will be arraigned at a later date in Kansas City, Kansas. 

Upon conviction, the alleged crimes carry the following penalties: forced labor with a penalty of up to 20 years in federal prison and a fine up to $250,000 and conspiracy to commit forced labor with a penalty of up to five years in federal prison and a fine up to $250,000.

This case was investigated by the FBI, with assistance from the U.S. Department of Labor - Office of the Inspector General and Wage and Hour Division. It will be prosecuted by Assistant U.S. Attorney Ryan Huschka for the District of Kansas and Trial Attorneys Vasantha Rao and Kate Alexander of the Civil Rights Division’s Human Trafficking Prosecution Unit.

An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.

Today, the Department of Justice, through the Joint Criminal Opioid and Darknet Enforcement (JCODE) team joined Europol to announce the results of Operation Dark HunTor, a coordinated international effort on three continents to disrupt opioid trafficking on the Darknet. The operation, which was conducted across the United States, Australia, and Europe, was a result of the continued partnership between JCODE and foreign law enforcement against the illegal sale of drugs and other illicit goods and services. Operation Dark HunTor builds on the success of last year’s Operation DisrupTor and the coordinated law enforcement takedown earlier this year of DarkMarket, the world’s then-largest illegal marketplace on the Darknet. At the time, German authorities arrested the marketplace’s alleged operator and seized the site’s infrastructure, providing investigators across the world with a trove of evidence. Europol’s European Cybercrime Centre (EC3) and JCODE have since been compiling intelligence packages to identify key targets.

Following the DarkMarket takedown in January 2021, U.S. and international law enforcement agencies identified Darknet drug vendors and buyers, resulting in a series of complementary, but separate, law enforcement investigations. Operation Dark HunTor actions have resulted in the arrest of 150 alleged Darknet drug traffickers and other criminals who engaged in tens of thousands of sales of illicit goods and services across Australia, Bulgaria, France, Germany, Italy, the Netherlands, Switzerland, the United Kingdom, and the United States. Prior to, but in support of Operation Dark HunTor, Italian authorities also shut down the DeepSea and Berlusconi dark web marketplaces which boasted over 40,000 advertisements of illegal products. Four alleged administrators were arrested, and €3.6 million in cryptocurrencies were seized in coordinated U.S.-Italian operations.

Operation Dark HunTor resulted in the seizure of over $31.6 million in both cash and virtual currencies; approximately 234 kilograms (kg) of drugs worldwide including 152.1 kg of amphetamine, 21.6 kg of cocaine, 26.9 kg of opioids, 32.5 kg of MDMA, in addition to more than 200,000 ecstasy, fentanyl, oxycodone, hydrocodone, and methamphetamine pills, and counterfeit medicine ; and 45 firearms. Darknet vendor accounts were also identified and attributed to real individuals selling illicit goods on active marketplaces, as well as inactive Darknet marketplaces such as Dream, WallStreet, White House, DeepSea, and Dark Market.

Operation Dark HunTor led to 65 arrests in the United States, one in Bulgaria, three in France, 47 in Germany, four in the Netherlands, 24 in the United Kingdom, four in Italy, and two in Switzerland. A number of investigations are still ongoing.

“This 10-month massive international law enforcement operation spanned across three continents and involved dozens of U.S. and international law enforcement agencies to send one clear message to those hiding on the Darknet peddling illegal drugs: there is no dark internet. We can and we will shine a light,” said Deputy Attorney General Monaco. “Operation Dark HunTor prevented countless lives from being lost to this dangerous trade in illicit and counterfeit drugs, because one pill can kill. The Department of Justice with our international partners will continue to crack down on lethal counterfeit opioids purchased on the Darknet.”

“The men and women of the department’s Criminal Division, in close collaboration with our team of interagency and international partners, stand ready to leverage all our resources to protect our communities through the pursuit of those who profit from addiction, under the false belief that they are anonymous on the Darknet,” said Assistant Attorney General Kenneth A. Polite Jr of the Justice Department’s Criminal Division. “Only through a whole of government and, in this case, global approach to tackling cyber-enabled drug trafficking can we hope to achieve the significant results illustrated in Operation Dark HunTor.”

“The FBI continues to identify and bring to justice drug dealers who believe they can hide their illegal activity through the Darknet,” said FBI Director Christopher A. Wray. “Criminal darknet markets exist so drug dealers can profit at the expense of others’ safety. The FBI is committed to working with our JCODE and EUROPOL law enforcement partners to disrupt those markets and the borderless, worldwide trade in illicit drugs they enable.”

“Today, we face new and increasingly dangerous threats as drug traffickers expand into the digital world and use the Darknet to sell dangerous drugs like fentanyl and methamphetamine,” said Administrator Anne Milgram of the Drug Enforcement Administration (DEA). “These drug traffickers are flooding the United States with deadly, fake pills, driving the U.S. overdose crisis, spurring violence, and threatening the safety and health of American communities. DEA’s message today is clear: criminal drug networks operating on the Darknet, trying to hide from law enforcement, can no longer hide. DEA, the U.S. interagency, and our valued international partners, are committed to dismantling drug networks wherever they are, including on the Darknet.”

“Illicit darkweb marketplaces represent a significant threat to public health, economic, and national security,” said Acting Director Tae Johnson of U.S. Immigration and Customs Enforcement (ICE). “By working collaboratively and sharing intelligence across local, state, federal, and international law enforcement agencies, Homeland Security Investigations (HSI) and its partners are disrupting and dismantling transnational criminal organizations responsible for introducing dangerous narcotics and other contraband into our communities.”  

“The dark web has become an underground facilitator of illegal commerce,” said Chief Postal Inspector Gary Barksdale of the U.S. Postal Inspection Service (USPIS). “Criminals use the dark web to sell and ship narcotics and other dangerous goods around the world, often relying on the postal system and private carriers to deliver these illegal products. The U.S. Postal Inspection Service is committed to finding and stopping these drug traffickers.”

“The Darknet no longer provides a concealing cloak for criminals to operate,” said IRS Criminal Investigation (IRS-CI) Chief Jim Lee. “The expertise of our agents and law enforcement partners helped uncover significant quantities of narcotics and money — both cash and virtual currency — derived from illicit means.”

“The point of operations such as the one today is to put criminals operating on the dark web on notice: the law enforcement community has the means and global partnerships to unmask them and hold them accountable for their illegal activities, even in areas of the dark web,” said Europol’s Deputy Executive Director of Operations Jean-Philippe Lecouffe.

The extensive operation, which lasted 10 months, resulted in dozens of federal operations and prosecutions, including:

• Four search warrants were executed in furtherance of a multiagency investigation resulting in the seizure of approximately $1 million in drug proceeds (including approximately $700,000 in cryptocurrency), eight firearms, one vehicle, and various controlled substances including MDMA, LSD, and cocaine. The FBI, DEA, Food and Drug Administration (FDA), and USPIS jointly conducted the investigation. According to court documents, the targets of the investigation were operating over multiple Darknet marketplaces to traffic methamphetamine, counterfeit pressed Adderall (containing methamphetamine), MDMA, cocaine, and ketamine to customers throughout the United States. The investigation revealed that the organization’s base of operations was in Houston, Texas, and the organization shipped to various cities throughout the United States. Six defendants are charged in a five-count indictment in the Southern District of Ohio with conspiracy to distribute controlled substances, distribution of controlled substances, sale of counterfeit drugs, and conspiracy to commit money laundering.
• The FBI in conjunction with the USPIS, FDA, and DEA, had been investigating a criminal enterprise that operated two Darknet vendor accounts. One of the accounts was operated out of the Miami area and the other out of the Providence, Rhode Island, area. According to court documents, the vendors, Luis Spencer, 31, of Fort Lauderdale, Florida; Olatunji Dawodu, 36, of Fort Lauderdale, Florida; and Alex Ogando, 35, of Providence, Rhode Island, allegedly advertised and sold pressed fentanyl pills throughout the United States. Agents identified several other co-conspirators and obtained search and arrest warrants for each. During the execution of the warrants, agents seized approximately $770,000, one weapon and approximately 3.5 kilograms of pressed fentanyl. Spencer, Dawodu, and Ogando are charged in the District of Columbia with conspiracy to distribute 400 grams or more of a mixture and substance containing a detectable amount of fentanyl.
• Kevin Olando Ombisi, 32, and Eric Bernard Russell Jr, 36, both of Katy, Texas, are alleged to have participated in Darknet controlled substances trafficking activities using the moniker Cardingmaster and are charged in a 10-count indictment in the Western District of Tennessee with conspiracy to distribute controlled substances, distribution of controlled substances, attempted unlawful distribution of controlled substances, sale of counterfeit drugs, money laundering conspiracy, and mail fraud. According to court documents, Ombisi and Russell are alleged to have used the moniker Cardingmaster and conspired and attempted to, and did unlawfully distribute the Schedule II controlled substance methamphetamine, which was falsely represented to be Adderall, through the mail in the Western District of Tennessee and elsewhere. In conjunction with their arrests, the government seized more than $5 million in assets alleged to be connected to the drug trafficking activity. The case was investigated by the DEA, HSI, USPIS, and the FDA, and is being prosecuted by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Western District of Tennessee.

An indictment and criminal complaint are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Operation Dark HunTor was a collaborative initiative across JCODE members, including the Department of Justice; FBI; DEA; USPIS; ICE’s Homeland Security Investigations (HSI); IRS-Criminal Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Naval Criminal Investigative Service (NCIS) and the FDA’s Office of Investigations. This operation was aided by non-operational supporting participation from the Financial Crimes Enforcement Network (FinCEN) and U.S. Customs and Border Protection (CBP). Local, state, and other federal agencies also contributed to Operation Dark HunTor investigations through task force participation and regional partnerships. The investigations leading to Operation Dark HunTor were significantly aided by support and coordination by the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF), multi-agency Special Operations Division, the Criminal Division’s Computer Crime and Intellectual Property Section, Money Laundering and Asset Recovery Section’s Digital Currency Initiative, Narcotic and Dangerous Drug Section, the Fraud Section, the Justice Department’s Office of International Affairs, the National Cyber Joint Investigative Task Force (NCJITF), Europol and its Dark Web team and international partners Eurojust, Australian Federal Police (AFP), Bulgaria’s General Directorate Combating Organized Crime (Главна дирекция Борба с организираната престъпност), France’s National Police (Police National - OCLCTIC) and National Gendarmerie (Gendarmerie Nationale – C3N), Germany’s Federal Criminal Police Office (Bundeskriminalamt), Central Criminal Investigation Department in the German city of Oldenburg (Zentrale KriminaIinspektion Oldenburg), State Criminal Police Offices (Landeskriminalämter), State Criminal Police Office of Lower Saxony (LKA Niedersachsen), various police departments (Dienststellen der Länderpolizeien), German Investigation Customs ( Zollfahndungsämter), Italy’s Finance Corps (Guardia di Finanza) and Public Prosecutor’s Office Brescia, the Netherland’s National Police (Politie), Switzerland’s Zurich Canton Police (Kantonspolizei Zürich) and Public Prosecutor's Office II of the Canton of Zurich (Staatsanwaltschaft II), and the United Kingdom’s National Crime Agency (NCA) and NPCC.

Federal prosecutions are being conducted in more than 15 federal districts, including the Central District of California, the Eastern District of California, the Northern District of California, the District of Columbia, the Southern District of Florida, the District of Massachusetts, the District of Nebraska, the District of Nevada, the Western District of New York, the Southern District of Ohio, the Northern District of Texas, the Eastern District of Virginia, the Western District of Virginia, the District of Rhode Island, the Western District of Tennessee, and the Western District of Washington.

JCODE is an FBI-led Department of Justice initiative, which supports, coordinates, and assists in de-confliction of investigations targeting for disruption and dismantlement of the online sale of illegal drugs, especially fentanyl and other opioids. JCODE also targets the trafficking of weapons and other illicit goods and services on the internet.

View documents and resources related to this announcement.

Eric Todd Ellis, 32, a former Bureau of Prisons (BOP) corrections officer at the FCI-Aliceville facility in Aliceville, Alabama, was sentenced today in federal court in Birmingham, Alabama, to 18 months in prison and five years of supervised release. Ellis previously pleaded guilty to one count of sexual abuse of a ward and one count of tampering with a witness.

According to court documents, on or about June 11, 2020, Ellis knowingly engaged in a sexual act with a female inmate while in the back of the laundry room of the prison. At the time, Ellis was on-duty and acting in his capacity as a corrections officer. The female inmate was in official detention and under Ellis’s custodial authority. Ellis then admitted his conduct to another corrections officer. While the OIG was investigating Ellis’s conduct, Ellis told that corrections officer to lie to OIG. On a recorded call, Ellis said: “Just tell [the OIG agents], yeah, we’re friends, but, I mean, you hadn’t really talked to me about it. And when you have it’s – I’ve just told you that nothing happened.”

“Prison employees who abuse their positions of power to sexually assault individuals in their custody, and then attempt to cover up their crimes, will be held accountable,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division.” The Civil Rights Division will continue to secure justice for sexual assault victims, including those held in the custody and control of law enforcement officials.”

“The sexual abuse of prison inmates by federal corrections officers is intolerable,” said U.S. Attorney Prim F. Escalona of the Northern District of Alabama. “My office will vigorously investigate and prosecute any such officers who violate their oath of office. As today’s sentence makes plain, officers who abuse inmates face significant prison time for their offense.”

“Ellis sexually abused an inmate and then tried to cover it up,” said Special Agent in Charge James F. Boyersmith of the Justice Department’s Office of the Inspector General (OIG) Miami Field Office. “Today’s sentencing sends a clear message that prison staff who abuse their power and assault inmates in their custody will be brought to justice.”

This case was investigated by the Miami Division of the OIG. Executive Assistant U.S. Attorney Robert Posey and Assistant U.S. Attorney Robin Mark of the Northern District of Alabama and Special Litigation Counsel Fara Gold and Trial Attorney Anna Gotfryd of the Civil Rights Division’s Criminal Section prosecuted the case.

A Tennessee woman pleaded guilty today to fabricating discharge monitoring reports required under the Clean Water Act and submitting those fraudulent documents to state regulators in Tennessee and Mississippi.   

According to court documents and information in the public record, DiAne Gordon, 61, of Memphis, was the co-owner and chief executive officer of Environmental Compliance and Testing (ECT). ECT held itself out to the public as a full-service environmental consulting firm and offered, among other things, sampling and testing of stormwater, process water and wastewater. 

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

Pursuant to the terms of her plea agreement, Gordon will pay $201,388.88 in restitution to the victims of her crime. 

“By fabricating these reports, Gordon betrayed her position of trust and violated her responsibility to provide information critical to evaluating water quality for residents in Tennessee and Mississippi,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This prosecution shows the value of state and federal partnerships in investigating and prosecuting fraud and upholding the nation’s environmental laws for the good of public health.”  

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

“The defendant’s job was to help her clients remain in compliance with the Clean Water Act but instead she chose to falsify the required analytical testing under the Act for financial gain,” said Special Agent in Charge Charles Carfagno of the Environmental Protection Agency – Criminal Investigation Division’s (EPA-CID) Southeast Area Branch. “Today’s guilty plea illustrates the consequences of such criminal behavior and that EPA-CID will continue to vigorously investigate those that choose to violate our environmental laws.”

Gordon pleaded guilty to knowingly and willfully making and using false writings and documents in a matter within the jurisdiction of EPA. She is scheduled to be sentenced on March 22, 2022, and 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.

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

Trial Attorney Banumathi Rangarajan of the Justice Department’s Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Dean DeCandia of the U.S. Attorney’s Office for the Western District of Tennessee are prosecuting the case.

Navistar Inc., an integrated manufacturer of trucks and diesel engines based in Lisle, Illinois, has agreed to mitigate at least 10,000 tons of oxides of nitrogen (NOx) emissions and pay a $52 million civil penalty in a consent decree, lodged today, to resolve violations of the Clean Air Act. In particular, Navistar illegally introduced into commerce on‑highway Heavy-Duty Diesel Engines (HDDEs) that were not covered by EPA-issued certificates of conformity.

In 2015, the United States filed suit against Navistar alleging that in 2010, after lower emission standards went into effect, the company introduced into commerce 7,749 HDDEs that were not certified and did not meet the lower emission standards. Navistar had marketed and sold the engines installed in its international-branded trucks as being EPA-certified model year 2009 engines even though it completed all manufacturing and assembling processes for the engines in 2010. The court held that the engines were in fact model year 2010 engines and required to be covered by a 2010 certificate of conformity demonstrating compliance with the lower emission requirements.

“This settlement shows we will hold companies accountable when they skirt the law to gain advantage at the expense of public health,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The department’s steadfast pursuit of this case achieved a just result, including that the company must mitigate the harm it caused and, in doing so, specifically must consider assisting communities overburdened by pollution.” 

“Older diesel engines without modern emissions controls emit significant amounts of air pollution that harms people’s health and takes years off people’s lives,” said Acting Assistant Administrator Larry Starfield for the EPA’s Office of Enforcement and Compliance Assurance. “This harm is greatest in communities near busy roadways, which are too often overburdened by high levels of ozone and particulate matter pollution. Today’s settlement will protect these vulnerable communities by preventing the emission of 10,000 tons of NOx from older, heavily-polluting commercial vehicles and equipment.”

Under the settlement, Navistar will pay a civil penalty of $52 million, forfeit its current account of NOx credits, and purchase and destroy enough older diesel engines to prevent 10,000 tons of future NOx emissions, a powerful air pollutant known to cause significant adverse health effects. The settlement requires Navistar to structure its mitigation of NOx emissions through one or more programs approved by EPA that will take into consideration geographic diversity and benefits to communities that are overburdened by air pollution. Navistar will report back to the EPA on its implementation of the program to ensure compliance with the environmental justice and geographic distribution requirements in the consent decree.  

This settlement comes after more than six years of diligent prosecution by the United States. The United States prevailed in the first phase of litigation when the U.S. District Court for the Northern District of Illinois held that Navistar was liable for the alleged violations. In the second phase, and facing an imminent trial on the remedies, the parties reached the negotiated resolution that is captured by the consent decree

More information about this settlement can be found here. 

The consent decree for this settlement was lodged in the U.S. District Court for the Northern District of Illinois and is subject to a 30-day public comment period and final court approval. https://www.justice.gov/enrd/consent-decrees.

The Justice Department today announced that it has obtained a consent decree with Reese Pfeiffer and several other defendants to resolve allegations that Pfeiffer violated the Fair Housing Act (FHA) by subjecting 23 women to severe and repeated sexual harassment and retaliation at residential properties defendants own or manage in and around Minneapolis.

Under the consent decree, the defendants must pay a total of $736,000 in compensation to 23 victims of the alleged sexual harassment and retaliation, and a $14,000 civil penalty to the United States. Additionally, the consent decree permanently bars Reese Pfeiffer from property management and requires the retention of an independent property manager approved by the Department of Justice at specified Twin Cities properties. The defendants must also undergo education and training on the FHA, with specific emphasis on discrimination on the basis of sex and sexual harassment.  

The defendants are property managers/owners Reese Pfeiffer, Jeanne Pfeiffer, Michael Fruen and Jeremy Martineau and business entities Fruen & Pfeiffer LLP (F&P) and M. Fruen Properties (MFP).

The consent decree, entered today by the U.S. District Court for the District of Minnesota, resolves a lawsuit that the department filed in Sept. 2020, as well as a related private lawsuit brought by Mid-Minnesota Legal Aid on behalf of three women who were subjected to Pfeiffer’s alleged sexual harassment.

“All people deserve to feel safe in their homes,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Sexual harassment in housing deprives individuals of that security. The Justice Department will not tolerate landlords who abuse their power by sexually harassing their tenants and will continue to work resolutely to hold such persons accountable and obtain relief for their victims.”

“The sexual harassment and discrimination of female tenants is unacceptable and a violation of federal law,” said Acting U.S. Attorney W. Anders Folk for the District of Minnesota. “This resolution helps restore the public safety of these female tenants. No one should be subjected to an environment of harassment, discrimination, and retaliation, especially in their own homes.”

The United States’ lawsuit alleged that Reese Pfeiffer, property manager for numerous rental properties in Minneapolis and surrounding suburbs, subjected multiple female tenants and prospective tenants to sexual harassment. The complaint alleged that Reese Pfeiffer commented on female tenants’ looks and body parts, engaged in unwelcome touching, asked personal questions about their relationship status, made unwelcome sexual advances, discussed sexual topics without consent, entered their homes under the pretense of collecting rent to solicit sexual favors, and offered them rental benefits, such as excusing late or unpaid rent, in exchange for sexual favors. The complaint further alleged that Reese Pfeiffer’s co-defendants are vicariously liable for Pfeiffer’s discriminatory conduct because he acted as their agent when he sexually harassed tenants at properties in which they had an ownership interest.

This case is handled by the Civil Division of the U.S. Attorney’s Office for the District of Minnesota with the assistance of the Justice Department’s Civil Rights Division and the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General.

The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the initiative in October 2017, the Department of Justice has filed 23 lawsuits alleging sexual harassment in housing and recovered over $4.8 million for victims of such harassment.

If you think you are a victim of sexual harassment by a landlord, or other forms of housing discrimination, you may contact the Justice Department by submitting a report online or contact the U.S. Attorney’s Office for the District of Minnesota at (612) 664-5600.

Reports also may be made by contacting the U.S. Department of Housing and Urban Development at 1-800-669-9777 or by filing a complaint online.

A federal jury convicted a North Carolina woman on Oct. 22 of employment tax fraud.

According to court documents and evidence presented at trial, Christina Rochelle Anglin, aka Christy Anglin, of Burnsville, was the Controller and Chief Financial Officer for Atmospheric Technology Services Company (ATSC) located in Norman, Oklahoma. In that role, Anglin was responsible for withholding from employee wages and paying to the IRS payroll taxes, which included Social Security and Medicare taxes and federal income taxes. From the first quarter through the third quarter of 2018, Anglin did not pay to the IRS nearly $920,000 in payroll taxes, which had been withheld from employees. At the same time these taxes were not paid, Anglin approved thousands of dollars of business expenditures, including salary and bonuses for herself and other executives.

Anglin faces a maximum penalty of five years in prison for each count of employment tax fraud plus payment of restitution to the IRS. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Robert J. Troester for the Western District of Oklahoma made the announcement.

This case was investigated by IRS-Criminal Investigation (IRS-CI), Defense Criminal Investigative Service (DCIS), U.S. General Services Administration-Office of Inspector General (GSA-OIG), FBI, Naval Criminal Investigative Service (NCIS), Army Criminal Investigations Division (ARMY-CID), and the Small Business Administration-Office of Inspector General (SBA-OIG).

Assistant U.S. Attorney William Farrior of the U.S. Attorney’s Office for the Western District of Oklahoma and Trial Attorney Ahmed Almudallal of the Tax Division are prosecuting the case.

The Justice Department announced the launch of the department’s new Combatting Redlining Initiative today. Redlining is an illegal practice in which lenders avoid providing services to individuals living in communities of color because of the race or national origin of the people who live in those communities. The new Initiative represents the department’s most aggressive and coordinated enforcement effort to address redlining, which is prohibited by the Fair Housing Act and the Equal Credit Opportunity Act. 

“Lending discrimination runs counter to fundamental promises of our economic system,” said Attorney General Merrick B. Garland. “When people are denied credit simply because of their race or national origin, their ability to share in our nation’s prosperity is all but eliminated. Today, we are committing ourselves to addressing modern-day redlining by making far more robust use of our fair lending authorities. We will spare no resource to ensure that federal fair lending laws are vigorously enforced and that financial institutions provide equal opportunity for every American to obtain credit.” 

“Enforcement of our fair lending laws is critical to ensure that banks and lenders are providing communities of color equal access to lending opportunities,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Equal and fair access to mortgage lending opportunities is the cornerstone on which families and communities can build wealth in our country. We know well that redlining is not a problem from a bygone era but a practice that remains pervasive in the lending industry today. Our new Initiative should send a strong message to banks and lenders that we will hold them accountable as we work to combat discriminatory race and national origin-based lending practices.” 

Redlining, a practice institutionalized by the federal government during the New Deal era and implemented then and now by private lenders, has had a lasting negative impact. For American families, homeownership remains the principal means of building wealth, and the deprivation of investment in and access to mortgage lending services for communities of color have contributed to families of color persistently lagging behind in homeownership rates and net worth compared to white families. The gap in homeownership rates between white and Black families is larger today than it was in 1960, before the passage of the Fair Housing Act of 1968.  

This Initiative, which will be led by the Civil Rights Division’s Housing and Civil Enforcement Section in partnership with U.S. Attorney’s Offices, will build on the longstanding work by the division that seeks to make mortgage credit and homeownership accessible to all Americans on the same terms, regardless of race or national origin and regardless of the neighborhood where they live. The Initiative will: 

• Utilize U.S. Attorneys’ Offices as force multipliers to ensure that fair lending enforcement is informed by local expertise on housing markets and the credit needs of local communities of color.
• Expand the department’s analyses of potential redlining to both depository and non-depository institutions. Non-depository lenders are not traditional banks and do not provide typical banking services, but engage in mortgage lending and now make the majority of mortgages in this country. 
• Strengthen our partnership with financial regulatory agencies to ensure the identification and referrals of fair lending violations to the Department of Justice.
• Increase coordination with State Attorneys General on potential fair lending violations.

Trustmark National Bank Settlement 

In addition to today’s Initiative announcement, the Justice Department, the U.S. Attorney’s Office for the Western District of Tennessee, the Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency (OCC) announced an agreement to resolve allegations that Trustmark National Bank engaged in lending discrimination by redlining predominantly Black and Hispanic neighborhoods in Memphis, Tennessee.  

The parties’ proposed consent order was filed today in conjunction with a complaint in the U.S. District Court for the Western District of Tennessee. The complaint alleges that Trustmark National Bank violated the Fair Housing Act and the Equal Credit Opportunity Act, which prohibit financial institutions from discriminating on the basis of race, color or national origin in their mortgage lending services. The complaint also alleges that Trustmark National Bank violated the Consumer Financial Protection Act, which prohibits offering or providing to a consumer any financial product or service not in conformity with federal consumer financial law.  

Specifically, the complaint alleges that, from 2014 to 2018, Trustmark engaged in unlawful redlining in Memphis by avoiding predominantly Black and Hispanic neighborhoods because of the race, color, and national origin of the people living in, or seeking credit for properties in, those neighborhoods. The complaint also alleges that Trustmark’s branches were concentrated in majority-white neighborhoods, that the bank’s loan officers did not serve the credit needs of majority-Black and Hispanic neighborhoods, that Trustmark’s outreach and marketing avoided those neighborhoods, and that Trustmark’s internal fair-lending policies and procedures were inadequate to ensure that the bank provided equal access to credit to communities of color. 

The department opened its investigation after one of Trustmark’s regulators, the OCC, referred the matter. Trustmark has fully cooperated in this investigation and amicably resolved the allegations. 

“Trustmark purposely excluded and discriminated against Black and Hispanic communities,” said Director Rohit Chopra of the Consumer Financial Protection Bureau (CFPB). “The federal government will be working to rid the market of racist business practices, including those by discriminatory algorithms.” 

“Home ownership is the foundation of economic success for most American families,” said Acting U.S. Attorney Joseph C. Murphy Jr. for the Western District of Tennessee. “Fair lending practices required by federal law — and the enforcement of those laws — ensure a better future for all Americans. Our office believes that enforcement actions of this type are essential to fair lending system that benefits everyone, and we will continue to prioritize these cases.” 

“The OCC has had a long history of strong partnership with the Justice Department’s Housing and Civil Enforcement Section of the Civil Rights Division, referring potential fair lending violations and sharing our extensive examiner, economist and legal findings, as we did in the Trustmark matter,” said Acting Comptroller of the Currency Michael J. Hsu. “Today’s announcement is important because it signifies the unified and unmitigated focus that each of our agencies has placed on the enforcement of the Fair Housing Act and the Equal Credit Opportunity Act. Our collective efforts are critical to addressing the discriminatory lending practices that create and reinforce racial inequity in the financial system.” 

Under the proposed consent order: 

• Trustmark will invest $3.85 million in a loan subsidy fund to increase credit opportunities for current and future residents of predominantly Black and Hispanic neighborhoods in the Memphis area; dedicate at least four mortgage loan officers or community lending specialists to these neighborhoods; and open a loan production office in a majority-Black and Hispanic neighborhood in Memphis. 
• Trustmark will devote $400,000 to developing community partnerships to provide services to residents of majority-Black and Hispanic neighborhoods in Memphis that increase access to residential mortgage credit.
• Trustmark will devote at least $200,000 per year to advertising, outreach, consumer financial education and credit repair initiatives in and around Memphis. 
• Trustmark will pay a total civil money penalty of $5 million to the OCC and CFPB.
• Trustmark already has established a Fair Lending Oversight Committee and designated a Community Lending Manager who will oversee these efforts and work in close consultation with the bank’s leadership. 

In August 2021, the department announced a redlining settlement with Cadence Bank. Under the settlement, Cadence will invest over $5.5 million to increase credit opportunities for residents of majority-Black and Hispanic neighborhoods in Houston.  

Individuals may report lending discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online. 

El Departamento de Justicia anunció hoy el lanzamiento de la nueva iniciativa del Departamento para combatir la exclusión financiera (“redlining” en inglés). La exclusión financiera es una práctica ilícita en la que los prestamistas evitan la provisión de servicios a individuos que viven en comunidades de color por motivos de la raza o el origen nacional de las personas que viven en esas comunidades. La nueva Iniciativa representa el esfuerzo de aplicación de la ley más agresivo y coordinado del Departamento que aborde el tema de la exclusión financiera, cosa que, en virtud de la ley de Vivienda Justa y la ley de Igualdad de Oportunidades de Crédito, está prohibida.

«La discriminación en el ámbito crediticio va en contra de promesas fundamentales de nuestro sistema económico», declaró el Fiscal General Merrick B. Garland. «Cuando se les niega a las personas un préstamo simplemente por motivos de su raza u origen nacional, su capacidad de participar en la prosperidad de nuestra nación prácticamente se elimina. Hoy, nos estamos comprometiendo a abordar la exclusión financiera moderna al hacer un uso mucho más robusto de nuestras autoridades de préstamos justos. No escatimaremos ningún recurso en nuestra lucha por garantizar que las leyes de préstamos justos se hagan cumplir con firmeza y que las instituciones financieras proporcionen a cada estadounidense la igualdad de oportunidades de obtener un préstamo».

«Si queremos asegurar que los bancos y prestamistas brinden la igualdad de acceso a oportunidades crediticias a comunidades de color, es esencial hacer cumplir nuestras leyes de préstamos justos», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El acceso igualitario y justo a oportunidades de crédito hipotecario es la piedra angular en la cual las familias y comunidades pueden crear riqueza en nuestro país. Todos sabemos muy bien que la exclusión financiera no constituye un problema de otra época sino una práctica que sigue siendo dominante en la industria crediticia de hoy. Nuestra nueva Iniciativa debe trasmitir un mensaje claro a los bancos y prestamistas que nosotros les haremos rendir cuentas de sus acciones a medida que trabajemos por combatir prácticas crediticias que discriminan con base en la raza u origen nacional de uno».

La exclusión financiera, una práctica institucionalizada por el Gobierno federal durante la época del New Deal e implementada en aquel entonces y hoy día por prestamistas privados, ha tenido un impacto negativo duradero. Para las familias estadounidenses, el ser propietario de una vivienda sigue siendo la forma principal de crear riqueza, y la privación de inversión en y acceso a servicios de crédito hipotecario en las comunidades de color ha contribuido a tasas continuamente más bajas entre las comunidades de color de propietarios de viviendas y patrimonio neto, en comparación con familias blancas. La brecha en las tasas de propietarios entre las familias blancas y las negras es más ancha hoy que en 1960, antes de la aprobación de la ley de Vivienda Justa de 1968. 

Esta Iniciativa, que será dirigida por la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles, en asociación con las Fiscalías Federales, empleará como base el trabajo de muchos años de la División cuya meta es convertir a los préstamos hipotecarios y la posibilidad de ser propietario en algo al que todo estadounidense pueda acceder bajo los mismos términos, independientemente de su raza u origen nacional e independientemente del barrio en el que vive. La Iniciativa:

• Utilizará las Fiscalías Federales como fuerzas multiplicadoras para garantizar que la aplicación de las leyes de préstamos justos sea informada por pericia local en los mercados inmobiliarios y las necesidades crediticias de comunidades locales de color.
• Expandirá los análisis del Departamento de posibles casos de exclusión financiera a tanto las instituciones depositarias como a las no depositarias. Los prestamistas no depositarios no son bancos tradicionales y no prestan servicios bancarios típicos pero conceden préstamos hipotecarios y actualmente son los responsables de la mayoría de las hipotecas en este país.
• Fortalecerá nuestra asociación con agencias reguladoras financieras con el fin de garantizar la identificación de infracciones de las leyes de préstamos justos y la referencia de las mismas al Departamento de Justicia.
• Aumentará la coordinación con Fiscales Generales Estatales en lo que se refiere a posibles infracciones de las leyes de préstamos justos.

El acuerdo con Trustmark National Bank

Además del anuncio de hoy del lanzamiento de la Iniciativa, el Departamento de Justicia, la Fiscalía Federal para el Distrito Oeste de Tennessee, la Oficina para la Protección Financiera del Consumidor (CFPB, por sus siglas en inglés) y la Oficina del Contralor de la Moneda (OCC, por sus siglas en inglés) anunciaron un acuerdo para resolver alegatos de que Trustmark National Bank había discriminado en el ámbito crediticio al practicar la exclusión financiera contra barrios en Memphis, Tennessee cuyos residentes son principalmente negros e hispanos. 

La orden de consentimiento propuesta de las partes se presentó hoy en combinación con una demanda ante el Tribunal Federal de Distrito para el Distrito Oeste de Tennessee. La demanda alega que Trustmark National Bank vulneró la ley de Vivienda Justa y la Ley de Igualdad de Oportunidades Crediticias, las cuales prohíbe que las instituciones financieras discriminen por motivos de raza, color de piel u origen nacional en la provisión de sus servicios de crédito hipotecario. Más aún, la demanda alega que Trustmark National Bank vulneró la ley de Protección Financiera del Consumidor, que prohíbe la oferta o provisión a un consumidor de productos o servicios financieros de una manera que no esté en conformidad con las leyes federales financieras destinadas a los consumidores.  

En concreto, la demanda alega que, entre el 2014 y el 2018, Trustmark practicó exclusión financiera ilícita en Memphis al evitar barrios cuyos residentes son principalmente negros e hispanos, por motivos de la raza, el color de piel y el origen nacional de las personas que vivían en esos barrios o que pedían un préstamo para propiedades ubicadas en los mismos. Por otra parte, la demanda alega que las sucursales de Trustmark estaban concentradas en barrios de mayoría blanca, que los oficiales de crédito del banco no satisfacían las necesidades crediticias de barrios de mayoría negra o hispana, que los esfuerzos de extensión comunitaria y mercadeo de Trustmark esquivaban esos barrios y que los procedimientos y políticas internos de Trustmark de préstamos justos no eran suficientes como para garantizar que el banco brindara la igualdad de acceso al crédito a las comunidades de color.

El Departamento inició su investigación después de que uno de los reguladores de Trustmark, la OCC, refirió el asunto. Trustmark ha cooperado plenamente en esta investigación y resolvió los alegatos de forma amigable.

«Trustmark excluyó y discriminó, de manera intencional, a comunidades negras e hispanas», declaró Rohit Chopra, el director de la Oficina para la Protección Financiera del Consumidor. «El Gobierno federal luchará por eliminar prácticas empresariales racistas en el mercado, incluyendo aquellas provenientes de algoritmos discriminatorios».

«Para muchas familias estadounidenses, el ser propietario de una vivienda es el fundamento del éxito económico», comentó el Fiscal Federal Interino para el Distrito Oeste de Tennessee, Joseph C. Murphy Jr. «Las prácticas de préstamos justos que se requieren en virtud de las leyes federales, así como la aplicación de dichas leyes, garantizan un mejor futuro para todo estadounidense. Nuestra oficina cree que medidas de aplicación de la ley de esta naturaleza son primordiales para un sistema de préstamos justos que beneficia a todos y seguiremos dando prioridad a estos casos».

«Desde hace mucho tiempo, la OCC ha tenido una sólida asociación con la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles del Departamento de Justicia: ha referido posibles infracciones de las leyes de préstamos justos y hemos compartido nuestros hallazgos extensos de los equipos examinadores, economistas y legales, tal y como hemos hecho en el caso de Trustmark», indicó el Contralor Interino de la Moneda, Michael J. Hsu. «El anuncio de hoy es importante porque representa el enfoque unificado y absoluto que cada una de nuestras agencias ha dedicado a la aplicación de la ley de Vivienda Justa y la ley de Igualdad de Oportunidades de Crédito. Nuestros esfuerzos colectivos son esenciales al abordaje de las prácticas crediticias discriminatorias que crean y refuerzan la inequidad racial en el sistema financiero».

Conforme la orden de consentimiento propuesto:

• Trustmark invertirá $3.85 millones en un fondo de préstamos subsidiados para incrementar las oportunidades crediticias para residentes actuales y futuros de barrios cuyos residentes son principalmente negros e hispanos en la zona de Memphis; dedicará al menos cuatro oficiales de crédito hipotecario o especialistas en préstamos comunitarios a estos barrios y abrirá una oficina de producción crediticia en un barrio de Memphis cuyos residentes son principalmente negros o hispanos.
• Trustmark dedicará $400,000 al desarrollo de asociaciones comunitarias para la prestación de servicios a residentes de barrios de Memphis que son principalmente negros e hispanos que mejorarán el acceso al crédito hipotecario residencial.
• Por otra parte, Trustmark dedicará al menos $200,000 por año a iniciativas de publicidad, proyección comunitaria, educación financiera del consumidor y reparación del crédito en Memphis y sus alrededores.
• Trustmark pagará a la OCC y la CFPB una sanción civil monetaria que asciende, en su totalidad, a $5 millones.
• Trustmark ya ha establecido un Comité de Supervisión de las Leyes de Préstamos Justos y ha designado un Gestor de Crédito Comunitario que supervisará estos esfuerzos y trabajará estrechamente con el liderazgo del banco.

En agosto del 2021, el Departamento anunció un acuerdo con Cadence Bank por motivos de exclusión financiera. Conforme al acuerdo, Cadence invertirá más de $5.5 millones para mejorar las oportunidades crediticias de residentes de barrios de Houston que son principalmente negros e hispanos. 

Para informarnos de incidentes de discriminación en el ámbito crediticio, llame a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1-833-591-0291 o entregue un informe en línea.

El Departamento de Justicia anunció hoy el lanzamiento de la nueva iniciativa del Departamento para combatir la exclusión financiera (“redlining” en inglés). La exclusión financiera es una práctica ilícita en la que los prestamistas evitan la provisión de servicios a individuos que viven en comunidades de color por motivos de la raza o el origen nacional de las personas que viven en esas comunidades. La nueva Iniciativa representa el esfuerzo de aplicación de la ley más agresivo y coordinado del Departamento que aborde el tema de la exclusión financiera, cosa que, en virtud de la ley de Vivienda Justa y la ley de Igualdad de Oportunidades de Crédito, está prohibida.

«La discriminación en el ámbito crediticio va en contra de promesas fundamentales de nuestro sistema económico», declaró el Fiscal General Merrick B. Garland. «Cuando se les niega a las personas un préstamo simplemente por motivos de su raza u origen nacional, su capacidad de participar en la prosperidad de nuestra nación prácticamente se elimina. Hoy, nos estamos comprometiendo a abordar la exclusión financiera moderna al hacer un uso mucho más robusto de nuestras autoridades de préstamos justos. No escatimaremos ningún recurso en nuestra lucha por garantizar que las leyes de préstamos justos se hagan cumplir con firmeza y que las instituciones financieras proporcionen a cada estadounidense la igualdad de oportunidades de obtener un préstamo».

«Si queremos asegurar que los bancos y prestamistas brinden la igualdad de acceso a oportunidades crediticias a comunidades de color, es esencial hacer cumplir nuestras leyes de préstamos justos», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El acceso igualitario y justo a oportunidades de crédito hipotecario es la piedra angular en la cual las familias y comunidades pueden crear riqueza en nuestro país. Todos sabemos muy bien que la exclusión financiera no constituye un problema de otra época sino una práctica que sigue siendo dominante en la industria crediticia de hoy. Nuestra nueva Iniciativa debe trasmitir un mensaje claro a los bancos y prestamistas que nosotros les haremos rendir cuentas de sus acciones a medida que trabajemos por combatir prácticas crediticias que discriminan con base en la raza u origen nacional de uno».

La exclusión financiera, una práctica institucionalizada por el Gobierno federal durante la época del New Deal e implementada en aquel entonces y hoy día por prestamistas privados, ha tenido un impacto negativo duradero. Para las familias estadounidenses, el ser propietario de una vivienda sigue siendo la forma principal de crear riqueza, y la privación de inversión en y acceso a servicios de crédito hipotecario en las comunidades de color ha contribuido a tasas continuamente más bajas entre las comunidades de color de propietarios de viviendas y patrimonio neto, en comparación con familias blancas. La brecha en las tasas de propietarios entre las familias blancas y las negras es más ancha hoy que en 1960, antes de la aprobación de la ley de Vivienda Justa de 1968. 

Esta Iniciativa, que será dirigida por la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles, en asociación con las Fiscalías Federales, empleará como base el trabajo de muchos años de la División cuya meta es convertir a los préstamos hipotecarios y la posibilidad de ser propietario en algo al que todo estadounidense pueda acceder bajo los mismos términos, independientemente de su raza u origen nacional e independientemente del barrio en el que vive. La Iniciativa:

• Utilizará las Fiscalías Federales como fuerzas multiplicadoras para garantizar que la aplicación de las leyes de préstamos justos sea informada por pericia local en los mercados inmobiliarios y las necesidades crediticias de comunidades locales de color.
• Expandirá los análisis del Departamento de posibles casos de exclusión financiera a tanto las instituciones depositarias como a las no depositarias. Los prestamistas no depositarios no son bancos tradicionales y no prestan servicios bancarios típicos pero conceden préstamos hipotecarios y actualmente son los responsables de la mayoría de las hipotecas en este país.
• Fortalecerá nuestra asociación con agencias reguladoras financieras con el fin de garantizar la identificación de infracciones de las leyes de préstamos justos y la referencia de las mismas al Departamento de Justicia.
• Aumentará la coordinación con Fiscales Generales Estatales en lo que se refiere a posibles infracciones de las leyes de préstamos justos.

El acuerdo con Trustmark National Bank

Además del anuncio de hoy del lanzamiento de la Iniciativa, el Departamento de Justicia, la Fiscalía Federal para el Distrito Oeste de Tennessee, la Oficina para la Protección Financiera del Consumidor (CFPB, por sus siglas en inglés) y la Oficina del Contralor de la Moneda (OCC, por sus siglas en inglés) anunciaron un acuerdo para resolver alegatos de que Trustmark National Bank había discriminado en el ámbito crediticio al practicar la exclusión financiera contra barrios en Memphis, Tennessee cuyos residentes son principalmente negros e hispanos. 

La orden de consentimiento propuesta de las partes se presentó hoy en combinación con una demanda ante el Tribunal Federal de Distrito para el Distrito Oeste de Tennessee. La demanda alega que Trustmark National Bank vulneró la ley de Vivienda Justa y la Ley de Igualdad de Oportunidades Crediticias, las cuales prohíbe que las instituciones financieras discriminen por motivos de raza, color de piel u origen nacional en la provisión de sus servicios de crédito hipotecario. Más aún, la demanda alega que Trustmark National Bank vulneró la ley de Protección Financiera del Consumidor, que prohíbe la oferta o provisión a un consumidor de productos o servicios financieros de una manera que no esté en conformidad con las leyes federales financieras destinadas a los consumidores.  

En concreto, la demanda alega que, entre el 2014 y el 2018, Trustmark practicó exclusión financiera ilícita en Memphis al evitar barrios cuyos residentes son principalmente negros e hispanos, por motivos de la raza, el color de piel y el origen nacional de las personas que vivían en esos barrios o que pedían un préstamo para propiedades ubicadas en los mismos. Por otra parte, la demanda alega que las sucursales de Trustmark estaban concentradas en barrios de mayoría blanca, que los oficiales de crédito del banco no satisfacían las necesidades crediticias de barrios de mayoría negra o hispana, que los esfuerzos de extensión comunitaria y mercadeo de Trustmark esquivaban esos barrios y que los procedimientos y políticas internos de Trustmark de préstamos justos no eran suficientes como para garantizar que el banco brindara la igualdad de acceso al crédito a las comunidades de color.

El Departamento inició su investigación después de que uno de los reguladores de Trustmark, la OCC, refirió el asunto. Trustmark ha cooperado plenamente en esta investigación y resolvió los alegatos de forma amigable.

«Trustmark excluyó y discriminó, de manera intencional, a comunidades negras e hispanas», declaró Rohit Chopra, el director de la Oficina para la Protección Financiera del Consumidor. «El Gobierno federal luchará por eliminar prácticas empresariales racistas en el mercado, incluyendo aquellas provenientes de algoritmos discriminatorios».

«Para muchas familias estadounidenses, el ser propietario de una vivienda es el fundamento del éxito económico», comentó el Fiscal Federal Interino para el Distrito Oeste de Tennessee, Joseph C. Murphy Jr. «Las prácticas de préstamos justos que se requieren en virtud de las leyes federales, así como la aplicación de dichas leyes, garantizan un mejor futuro para todo estadounidense. Nuestra oficina cree que medidas de aplicación de la ley de esta naturaleza son primordiales para un sistema de préstamos justos que beneficia a todos y seguiremos dando prioridad a estos casos».

«Desde hace mucho tiempo, la OCC ha tenido una sólida asociación con la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles del Departamento de Justicia: ha referido posibles infracciones de las leyes de préstamos justos y hemos compartido nuestros hallazgos extensos de los equipos examinadores, economistas y legales, tal y como hemos hecho en el caso de Trustmark», indicó el Contralor Interino de la Moneda, Michael J. Hsu. «El anuncio de hoy es importante porque representa el enfoque unificado y absoluto que cada una de nuestras agencias ha dedicado a la aplicación de la ley de Vivienda Justa y la ley de Igualdad de Oportunidades de Crédito. Nuestros esfuerzos colectivos son esenciales al abordaje de las prácticas crediticias discriminatorias que crean y refuerzan la inequidad racial en el sistema financiero».

Conforme la orden de consentimiento propuesto:

• Trustmark invertirá $3.85 millones en un fondo de préstamos subsidiados para incrementar las oportunidades crediticias para residentes actuales y futuros de barrios cuyos residentes son principalmente negros e hispanos en la zona de Memphis; dedicará al menos cuatro oficiales de crédito hipotecario o especialistas en préstamos comunitarios a estos barrios y abrirá una oficina de producción crediticia en un barrio de Memphis cuyos residentes son principalmente negros o hispanos.
• Trustmark dedicará $400,000 al desarrollo de asociaciones comunitarias para la prestación de servicios a residentes de barrios de Memphis que son principalmente negros e hispanos que mejorarán el acceso al crédito hipotecario residencial.
• Por otra parte, Trustmark dedicará al menos $200,000 por año a iniciativas de publicidad, proyección comunitaria, educación financiera del consumidor y reparación del crédito en Memphis y sus alrededores.
• Trustmark pagará a la OCC y la CFPB una sanción civil monetaria que asciende, en su totalidad, a $5 millones.
• Trustmark ya ha establecido un Comité de Supervisión de las Leyes de Préstamos Justos y ha designado un Gestor de Crédito Comunitario que supervisará estos esfuerzos y trabajará estrechamente con el liderazgo del banco.

En agosto del 2021, el Departamento anunció un acuerdo con Cadence Bank por motivos de exclusión financiera. Conforme al acuerdo, Cadence invertirá más de $5.5 millones para mejorar las oportunidades crediticias de residentes de barrios de Houston que son principalmente negros e hispanos. 

Para informarnos de incidentes de discriminación en el ámbito crediticio, llame a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1-833-591-0291 o entregue un informe en línea.

Asunto(s):

Derechos Civiles

Componente(s):

División de Derechos Civiles

Sección de Vivienda y Cumplimiento de la Ley Civil

Fiscalía General

Fiscalía Federal

Deputy Assistant Attorney General Arun G. Rao of the U.S. Department of Justice Civil Division’s Consumer Protection Branch, together with colleagues from the Consumer Protection Branch and the FBI, met this week with Central Bureau of Investigation (CBI) officials in New Delhi to further strengthen law enforcement cooperation. They discussed means for combating emerging crime trends, including fighting rising telemarketing fraud.

In their meetings, the parties affirmed their shared commitment to strengthen cooperation in combating crime, specifically with respect to efforts to investigate and prosecute cyber-enabled financial frauds and global telemarketing frauds, including international robocalls and communications.

They additionally discussed the need for continued cooperation in tackling emerging technology-based crimes through faster information exchange and evidence sharing, with a view to ensure security and protection of citizens of both jurisdictions.

The Department of Justice’s Civil Rights Division and the United States Attorney’s Office for Utah announced a settlement agreement with Davis School District in Utah to address race discrimination in the district’s schools, including serious and widespread racial harassment of Black and Asian-American students. The department opened its investigation in July 2019 under Title IV of the Civil Rights Act of 1964.

The investigation revealed persistent failures to respond to reports of race-based harassment of Black and Asian-American students by district staff and other students. The department’s review, which focused on 2015-2020, found hundreds of documented uses of the N-word, among other racial epithets, derogatory racial comments, and physical assaults targeting district students at dozens of schools. The department concluded that for years, Davis’s ineffective response left students vulnerable to continued harassment and that students believed the district condoned the behavior. The department also found that Davis disciplined Black students more harshly than their white peers for similar behavior and that Davis denied Black students the ability to form student groups while supporting similar requests by other students.  Black and Asian-American students are each roughly 1 percent of the approximately 73,000 students enrolled in the district.

“Pervasive racial harassment and other forms of racial discrimination in public schools violate the Constitution’s most basic promise of equal protection,” said Assistant Attorney General Kristen Clarke of the Civil Rights Division. “This agreement will help generate the institutional change necessary to keep Black and Asian-American students safe. We look forward to Davis demonstrating to its students and school community that it will no longer tolerate racial discrimination in its schools.” 

“The Justice Department thanks the many parents and students who came forward and shared their experiences and the Davis School District for its cooperation with our investigation,” said Acting United States Attorney Andrea Martinez for the District of Utah. “As the federal partners who work and live in this community, we are hopeful that this agreement is the start of a new chapter in which Black and Asian-American students will attend Davis schools without fear.”

Under the agreement, Davis will retain a consultant to review and revise anti-discrimination policies and procedures and support the district as it undertakes significant institutional reforms.  Among other steps, Davis will:

• create a new department to handle complaints of race discrimination;
• train staff on how to identify, investigate, and respond to complaints of racial harassment and discriminatory discipline practices;
• inform students and parents of how to report harassment and discrimination;
• create a centralized, electronic reporting system to track and manage complaints and Davis’s response to complaints;
• implement student, staff, and parent training and education on identifying and preventing race discrimination, including discriminatory harassment;
• analyze and review discipline data and amend policies to ensure non-discriminatory enforcement of discipline policies; and
• develop a districtwide procedure to assess requests for student groups and treat such requests fairly.

Protecting the constitutional rights of public school students is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at https://www.justice.gov/crt/educational-opportunities-section.

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

View the summary of the agreement here.

A federal judge in Little Rock, Arkansas, sentenced Eric Scott Kindley, 53, a former private prisoner transport officer, to life plus five years in prison for sexually assaulting two different women in his custody during two different transports in 2014 and 2017, and for knowingly possessing a firearm in furtherance of the 2017 sexual assault.

The sentence comes after a jury returned guilty verdicts on March 12, 2020, to all counts in the indictment. The evidence at trial established that Kindley operated his own private prisoner transport company that contracted with local jails throughout the country to transport individuals who were arrested on out-of-state warrants. Even though the indictment charged Kindley with only two sexual assaults that occurred within the jurisdiction of the Eastern District of Arkansas, the jury heard from six women who he transported between 2012 and 2017. All the women testified that Kindley transported them alone, sometimes for hundreds of miles. The women were all handcuffed and shackled. As Kindley drove the women to desolate locations, he threatened to kill them and made sexually explicit comments that escalated in intensity and depravity.

“Those who act under color of law and commit sexual assault cannot rely on their position of power or their victims’ vulnerabilities to escape accountability,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “While these crimes may be difficult to detect, a survivor’s account is evidence, will be taken seriously, an investigation will ensue, and, where appropriate, punishment will follow. We thank the survivors of these sexual assaults for having the courage to come forward despite the defendant’s repeated attempts to silence them. The Civil Rights Division will continue to vigorously hold accountable those who abuse their authority by committing sexual assault.”

“This sentence sends a clear message, that this abuse of power and disregard for individual’s basic rights cannot and will not be tolerated,” said Special Agent in Charge Sean Kaul of the FBI Phoenix Field Office. “The FBI commends the victims who bravely came forward to report Kindley's actions. We remain fully committed to protecting the rights of all citizens and appreciate the partnership of the other FBI Field Offices, U.S. Attorney's Offices, and the Department of Justice Civil Rights Division during this investigation and prosecution."

One of the women listed in the indictment testified that when Kindley transported her from Alabama to Arizona in 2017, he stopped his van in a deserted area near Little Rock purportedly to allow her to urinate. There, he sexually assaulted her while she was handcuffed, threatened her with a firearm, and reminded her, as he did with other victims, that she was “an inmate in transport” and that no one would believe her if she reported what happened. Another woman listed in the indictment testified that when Kindley transported her in 2014, he stopped his van in a deserted area, also in Arkansas, under the guise of having gotten lost. There, he violently forced her to perform a sex act on him. A third woman testified that during her transport in 2013 from Florida to Texas, Kindley pulled his van over to the side of a dark road, both purportedly to let her urinate and under the guise of having gotten lost. There Kindley sexually assaulted her. A fourth woman testified that during her 2012 transport, from Nevada to California, Kindley stopped his van in a deserted hiking area. There, he forced her to perform a sex act on him in a park bathroom. A fifth woman testified that during her transport in 2013, from California to Montana, Kindley attempted to sexually assault her after he pulled over to the side of the road during a snowstorm. None of the women knew each other, and it was only during the trial that they learned the others existed.

According to court documents, the federal investigation into Kindley’s conduct began in January 2017, when two women, housed together in a small jail in Arizona, reported that Kindley sexually assaulted them during two separate transports. The years-long investigation thereafter uncovered 16 women whom the defendant subjected to some form of sexual misconduct during transport, often culminating in forceful sexual assault. During the sentencing hearing, the United States submitted victim impact statements from 11 women who Kindley transported, and two former domestic partners. The women described the corrosive impact of a person with power shattering their trust in law enforcement with vile words and acts. As one woman summed up, “I’m wary of government officials because of what Eric Kindley had said and [did] during my transport …The offender in this case used his so called ‘position of power’ to cause [me] to endure undue stress, grief, and loss of self-worth.”

Chief U.S. District Judge D. P. Marshall Jr. sentenced Kindley to life in prison plus five years and ordered that the defendant pay a total of $20,275 in restitution to the two victims listed in the indictment for mental health treatment and counseling for trauma.

This case was investigated by the Phoenix Division of the FBI with assistance from FBI field offices throughout the United States. It was prosecuted by Special Litigation Counsel Fara Gold and Trial Attorney Maura White of the Criminal Section of the Civil Rights Division of the U.S. Department of Justice, with assistance from the U.S. Attorney’s Offices for the Eastern District of Arkansas and the District of Arizona.

Wednesday, the Department of Justice served a complaint filed against a Montana man to recover a $9.9 million penalty imposed by the Federal Communications Commission (FCC) for nearly 5,000 unlawful and malicious “spoofed” robocalls.

In a complaint filed in U.S. District Court for the District of Montana, the government alleged that Scott Rhodes, 52, of Libby, Montana, made 4,959 illegal robocalls with falsified caller ID information, with the intent to cause harm. The targets of the alleged robocall campaigns included individuals across the United States, many of whom complained to law enforcement regarding unwanted and harassing calls. An investigation by the FCC culminated in the imposition by the agency of over $9.9 million forfeiture penalty against Rhodes. The lawsuit, filed today, seeks to recover that penalty and obtain an injunction that would prevent Rhodes from committing any further violations of the Truth in Caller ID Act.

According to the FCC’s investigation, Rhodes’ unlawful spoofed robocalls allegedly included highly inflammatory messages indicative of Rhodes’ intent to cause harm. For example, hundreds of Rhodes’ spoofed robocalls targeted residents of Brooklyn, Iowa, in the aftermath of a local woman’s murder. Those spoofed robocalls allegedly included a message that the local woman had been murdered by a “biological hybrid of white and savage Aztec ancestors” and that if she “could be brought back to life for just one moment,” she would ask the listener to “kill them all.” Over two thousand of the spoofed robocalls allegedly targeted residents of Charlottesville, Virginia, during the investigation and prosecution of James Alex Fields Jr., who was responsible for killing one woman and injuring dozens during the “Unite the Right" rally in August 2017. The spoofed robocalls included a message that Charlottesville’s “Jew Mayor” and “his pet Negro Police Chief” were responsible for the death of the “unhealthy, morbidly obese” victim. The message also stated, “We’re no longer going to tolerate a Jewish lying press, and Jew corruption of an American legal system.”

“It is unlawful to spoof caller ID numbers to trick consumers into answering unwanted phone calls with the intent to defraud, cause harm or wrongfully obtain anything of value,” said Acting Assistant Attorney General Brian Boynton for the Justice Department’s Civil Division. “The department will work with its agency partners to vigorously enforce the telemarketing laws that prohibit these practices.”

“Combatting illegal robocalls is a top consumer protection priority of the FCC,” said Acting Chairwoman Jessica Rosenworcel of the FCC. “In this case, the FCC’s investigation found an ugly pattern of spoofing used to bombard and target communities with malicious robocalls. Working with the Department of Justice, the FCC will stand by this fine and demand payment.  I also welcome the department’s decision to seek an injunction to put a stop to this unlawful behavior.”

Senior Litigation Counsel Patrick Runkle and Trial Attorney Michael Wadden of the Justice Department’s Consumer Protection Branch are prosecuting the case with the assistance of Assistant U.S. Attorney Shannon Clarke for the District of Montana.

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

United States Attorney SHAWN N. ANDERSON, for the Districts of Guam and the Northern Mariana Islands (NMI), will join the Drug Enforcement Administration (DEA) on Saturday, October  23rd for its 21st National Prescription Drug Take Back Day.  The biannual event will be held from     10:00 a.m. to 2:00 p.m., at thousands of collection sites around the country, including here in Guam and the NMI. This event offers free and anonymous disposal of unneeded medications at more than 4,000 local drop-off locations nationwide.

The United States is in the midst of an opioid epidemic—drug overdoses are up thirty percent over the last year alone and taking more than 250 lives every day. The majority of opioid addictions in America start with prescription pills found in medicine cabinets at home.

In April 2021, citizens of Guam and the NMI turned in over 1,565 pounds collectively.  According to the Centers for Disease Control and Prevention reported that last year, more than 93,000 people died of drug overdoses in the United States, marking the largest number of drug-related deaths ever recorded in a year. Opioid-related deaths accounted for 75 percent of all overdose deaths in 2020.

The following sites in Guam and the NMI are designated to receive unused prescription drugs and vaping device products on Saturday, October 23, 2021, between 10:00 a.m. and 2:00 p.m.:

• Agana Shopping Center (Center Court)
• Andersen Air Force Base Exchange (Entrance to Store)
• Dededo Mayor’s Office
• Malesso’ Mayor’s Office
• Naval Base Guam - Navy Exchange (Food Court)
• Saipan Commonwealth Health Center (Outpatient Pharmacy)
• Rota Health Center
• Tinian Health Center

Contact DEA Resident Agent in Charge Kenneth Bowman at 671-472-7384 regarding any questions about prescription drug abuse and any concerns regarding drug-related activity on Guam or in the NMI.

For more information, go to www.dea.gov, www.DEATakeBack.com

A Tennessee man pleaded guilty today to civil rights violations for a series of church arsons.

Alan Douglas Fox, 28, of Nashville, pleaded guilty to all counts of an information charging him with setting 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; and with carrying and using a firearm during the arson of the Crievewood Baptist Church. During the plea hearing, Fox admitted to intentionally setting the fires because of the religious character of the four churches.

“The defendant in this case set fire to four Christian churches, causing fear and anguish to church members and their denominations. The freedom to practice the religion we choose, without discrimination or danger, is a fundamental civil right in our nation and a hallmark of our democracy,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to prosecute, to the fullest extent of the law, those who target and harm houses of worship because of bigotry and prejudice.”

“The U.S. Attorney’s Office will always pursue those, who by their malicious actions, infringe upon our freedom of religion,” said Acting U.S. Attorney Mary Jane Stewart of the Middle District of Tennessee. “I commend our law enforcement partners and our prosecution team for bringing this individual to justice.”

U.S. District Judge Eli J. Richardson of the Middle District of Tennessee scheduled sentencing for Feb. 11, 2022. By the terms of the plea, Fox faces up to 20 years in prison for each fire and a consecutive five-year sentence for the firearms violation.

The FBI, the Tennessee Bureau of Investigation, the Metropolitan Nashville Police Department, and the Nashville Fire Department investigated the case. Assistant U.S. Attorney Sara Beth Myers and Trial Attorney Kyle Boynton of the Department’s Civil Rights Division are prosecuting it.

A federal court today ordered Utah company Grandma’s Herbs, Inc. and its owners, Kevin Parr and Tracey Parr, to stop distributing unapproved and misbranded drugs in violation of the Federal Food, Drug, and Cosmetic Act (FDCA), the Department of Justice Department announced.

In a complaint filed on Oct. 18, the United States alleged that Grandma’s Herbs and the Parrs violated the FDCA by distributing products intended to cure, mitigate, treat or prevent disease that were neither approved by the U. S. Food and Drug Administration (FDA) nor exempt from approval. The complaint alleged that the defendants claimed on their website that some of their products have antimicrobial and antiviral capabilities, prevent heart disease or treat urinary tract infections, upper respiratory tract infections, allergies, epilepsy and ulcers, among other health claims. The complaint alleged that the products also were misbranded drugs, because their labeling failed to bear adequate directions for use, as required by the FDCA.

“Products intended to treat or cure diseases require FDA approval,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Consumers are entitled to know that the drugs they take have been shown to be safe and effective. The department is committed to ensuring that companies distributing drugs and nutritional supplements comply with federal law.”

“The U.S. Attorney’s Office is committed to working with our counterparts at the Department of Justice’s Consumer Protection Branch and the FDA to ensure that the health and well-being of consumers is protected from those that attempt to circumvent federal laws and sell potentially dangerous products,” said Acting U.S. Attorney Andrea T. Martinez for the District of Utah. 

“The FDA’s action is aimed at protecting consumers who unknowingly put their health at risk by using products with claims to cure, treat or prevent a serious illness,” said Associate Commissioner Judy McMeekin, Pharm.D., for FDA Regulatory Affairs. “We urge consumers to seek proven treatments recommended by licensed health care professionals. We previously warned this manufacturer, but they continued to make claims that their products could treat or prevent serious diseases. We took action to protect consumers.” 

The defendants agreed to settle the suit and be bound by a consent decree of permanent injunction. The consent decree requires, among other things, that the defendants stop manufacturing, processing, labeling, holding or distributing any drug, including products the defendants claim can treat or cure disease, until they comply with federal law. Defendants must either obtain FDA approval for all drug products or remove such drug claims from their labels, websites and other promotional materials.

The government was represented by Trial Attorney Ann Entwistle of the Justice Department’s Consumer Protection Branch, with the assistance of William Thanhauser of the FDA’s Office of Chief Counsel. The U.S. Attorney’s Office for the District of Utah provided assistance.

Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.

EAST ST. LOUIS, Ill. – A man from the Metro East will spend more than seven years in prison for  illegally possessing firearms. Michael L. Dawson, 29, of East St. Louis, Illinois, was sentenced to 
87 months in federal prison for being a Felon in Possession of a Firearm.

The crime occurred in December of 2019 when the United States Marshals Service located Dawson at  his residence in East St. Louis, Illinois, and arrested him on an active arrest warrant. Agents  recovered a total of six different guns.   One of the weapons found was a semi-automatic rifle with  a  high-capacity  magazine.  An  assortment  of  miscellaneous  ammunition  was  also  discovered  during the search.     Federal law prohibits convicted felons from possessing firearms or firearm  ammunition.   A federal grand jury indicted Dawson in January of 2020, and Dawson pled guilty on 
June 24, 2021.

As part of his sentence, Dawson will serve a three-year term of supervised release following his  release from federal prison.

The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF),  the United States Marshals Service Great Lakes Regional Fugitive Task Force, and the Illinois State 
Police.
Assistant U.S. Attorneys Ali Burns and David Dean prosecuted the case.

EAST ST. LOUIS, Ill. – Deonta J. Thomas, 29, of Collinsville, Illinois, was sentenced to 10 years  imprisonment for distribution of methamphetamine on October 18, in federal court in East St. Louis.
Thomas previously pled guilty to this offense on May 20, 2021.   As part of his guilty plea, Thomas  acknowledged   that   on   September   27,   2018,   he   sold   approximately   442   grams   of    crystal methamphetamine to an individual at the Casino Queen in East St. Louis, Illinois, in  exchange for $2,800.

In  addition  to  the  10-year  term  of  imprisonment,  Thomas  will  serve  a  3-year  term  of   supervised release following his release from the Bureau of Prisons.   Thomas was also ordered to  pay a fine of $500.

This case was investigated by the Drug Enforcement Administration.
Assistant United States Attorney Daniel T. Kapsak prosecuted the case.

A Tennessee physician was sentenced today in the Western District of Tennessee to 20 years in prison for his unlawful prescribing of opioids that caused the death of one of his patients.

According to court documents, Thomas K. Ballard III, 63, of Jackson, a medical doctor, owned and operated the Ballard Clinic, where he prescribed controlled substances outside the scope of professional practice and not for a legitimate medical purpose. Among other things, Ballard engaged in inappropriate sexual contact with several female patients while he ignored red flags that they were abusing the medications he prescribed. These abuses were often reflected in Ballard’s own medical records. 

Ballard’s unlawful prescribing to one patient led to her death. Ballard’s treatment records indicated that he believed the patient had psychiatric issues, overutilized medication, had engaged in manipulation, and fabricated personal trauma. The records also reflected that the patient had been incarcerated, received prescriptions elsewhere for Suboxone, a drug used to treat opioid dependency disorder, and that she had abnormal drug testing results, including because of what Ballard believed was tampering. Nevertheless, Ballard prescribed the patient hydrocodone repeatedly, including on May 28, 2015. She fatally overdosed on the prescription drug the following day. On June 23, 2021, Ballard pleaded guilty to one count of illegal drug distribution resulting in death.

“Today’s sentence reflects the gravity of physicians causing death by illegally prescribing opioids,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Loss of life is a tragic outcome of physicians like Ballard acting as drug dealers instead of doctors. Those responsible for fatal overdoses – especially those who are in positions of trust like Ballard – must be held accountable for their roles in the opioid epidemic. This serious criminal conduct requires serious consequences.”

“With blatant disregard for the Hippocratic Oath, Ballard endangered his patients’ lives through illegitimate and reckless prescribing,” said Administrator Anne Milgram of the Drug Enforcement Administration (DEA). “DEA tirelessly pursues the people responsible for flooding our nation with illegal drugs, to include doctors who misuse their positions for personal gain. Those who supply opioids illegally have one thing in common: they demonstrate total disregard for the lives and safety of those who live in our communities. DEA will continue to battle the U.S. opioid epidemic one case at a time, and today’s sentencing demonstrates our commitment to justice.”

“Physicians are entrusted to care for patients and prescribe medically necessary medications. The death of a vulnerable woman exemplifies the devastating impact of Ballard’s disregard for his patients and profession,” said Special Agent in Charge Derrick L. Jackson with the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working closely with our law enforcement partners, HHS-OIG will continue to hold accountable medical professionals whose illicit activities endanger the lives of patients in their care.”

“It’s extremely disappointing to see a member of the medical community totally disregard his Hippocratic Oath,” said Special Agent in Charge Terry Reed of the Tennessee Bureau of Investigation (TBI), Medicaid Fraud Division. “Ballard put his patients at risk in order to satisfy his greed and will now spend time in federal prison for recklessly prescribing highly addictive and powerful opioids. The Tennessee Bureau of Investigation and its law enforcement partners will continue to expose the greed and deceit taking precedence over patient care.” 

The DEA, HHS-OIG, and TBI investigated the case.

Trial Attorneys Drew Pennebaker and Emily Petro of the Criminal Division’s Fraud Section prosecuted the case.

The Fraud Section leads the department’s Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 federal districts, has charged more than 85 defendants who collectively are responsible for distributing more than 65 million pills. The ARPO Strike Force is part of the Health Care Fraud Strike Force Program, which since March 2007 has charged more than 4,200 defendants who collectively have billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.

A Massachusetts woman was sentenced today to four years in prison for tax evasion, conspiracy to distribute and to possess with intent to distribute 50 kilograms or more of marijuana, possession with intent to distribute marijuana, and money laundering.

According to court documents, Deana Martin, of Milton, controlled Northern Herb, a black-market marijuana delivery service that operated in Massachusetts from 2015 to 2018. While Northern Herb purported to sell medical marijuana, it did not require a customer to provide proof of a medical marijuana card. Furthermore, Northern Herb would deliver marijuana to unattended locations, such as a front door or car, where unknown third parties might have access to the package. Northern Herb used locations in Canton, Milton, Foxborough, and Hyde Park to store and distribute marijuana, and employed at least 25 workers.

From May 2016 through July 2018, Northern Herb had total revenue exceeding $14 million. Northern Herb did not withhold or pay employment taxes. Martin evaded employment taxes that Northern Herb owed by operating in cash and using nominee entities to manage Northern Herb’s finances. Further, Northern Herb did not file with the IRS required reports documenting the payments made to Northern Herb’s employees and independent contractors. Martin caused a tax loss of more than $500,000.

In addition to the term of imprisonment, U.S. District Judge Timothy S. Hillman ordered Martin to serve three years of supervised release and to pay approximately $528,146.66 in restitution to the United States.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Nathaniel R. Mendell for the District of Massachusetts made the announcement.

The Drug Enforcement Administration and IRS Criminal Investigation investigated the case.

Assistant Chief Kathleen M. Barry of the Justice Department’s Tax Division and Assistant U.S. Attorneys William Abely and John Mulcahy of the USAO prosecuted the case.

The U.S. Department of Justice and the U.S. Department of Labor today announced separate settlement agreements with Facebook regarding its use of the permanent labor certification program (PERM). The Justice Department’s settlement resolves its claims that Facebook routinely refused to recruit, consider or hire U.S. workers, a group that includes U.S. citizens, U.S. nationals, asylees, refugees and lawful permanent residents, for positions it had reserved for temporary visa holders in connection with the PERM process. Additionally, the Labor Department’s settlement resolves issues it separately identified through audit examinations of Facebook’s recruitment activities related to its PERM applications filed with the Employment and Training Administration’s Office of Foreign Labor Certification (OFLC).

In December 2020, the Justice Department filed a lawsuit against Facebook, alleging that from at least Jan. 1, 2018, until at least Sept. 18, 2019, Facebook routinely reserved jobs for temporary visa holders through the PERM process. Specifically, the lawsuit alleged that, in contrast to its standard recruitment practices, Facebook used recruiting methods designed to deter U.S. workers from applying to certain positions, such as requiring applications to be submitted by mail only; refused to consider U.S. workers who applied to the positions; and hired only temporary visa holders. According to the lawsuit, Facebook’s hiring process for these positions intentionally discriminated against U.S. workers because of their citizenship or immigration status, in violation of the anti-discrimination provision of the Immigration and Nationality Act (INA). The INA generally prohibits employers from discriminating against workers because of their citizenship or immigration status. 

In early 2021, the Labor Department initiated audit examinations of Facebook’s pending PERM applications to determine compliance with regulatory requirements. As a result of these audits, OFLC identified potential regulatory recruitment violations and sought additional information from Facebook in an effort to confirm that Facebook followed all applicable regulatory requirements regarding the posting and advertisement requirements for these positions.

Under the DOJ settlement, Facebook will pay a civil penalty of $4.75 million to the United States, pay up to $9.5 million to eligible victims of Facebook’s alleged discrimination, and train its employees on the anti-discrimination requirements of the INA. In addition, Facebook will be required to conduct more expansive advertising and recruitment for its job opportunities for all PERM positions, accept electronic resumes or applications from all U.S. workers who apply, and take other steps to ensure that its recruitment for PERM positions closely matches its standard recruitment practices. Today’s civil penalty and backpay fund represent the largest fine and monetary award that the Division ever has recovered in the 35-year history of the INA’s anti-discrimination provision.   

“Facebook is not above the law, and must comply with our nation’s federal civil rights laws, which prohibit discriminatory recruitment and hiring practices,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Companies cannot set aside certain positions for temporary visa holders because of their citizenship or immigration status. This settlement reflects the Civil Rights Division’s commitment to holding employers accountable and eradicating discriminatory employment practices.”

Under the DOL OFLC settlement, Facebook will conduct additional notice and recruitment for U.S. workers and will be subject to ongoing audits to ensure its compliance with applicable regulations.

“This settlement is an important step forward and means that U.S. workers will have a fair chance to learn about and apply for Facebook’s job opportunities,” said Seema Nanda, Solicitor at the Department of Labor. “No matter an employer’s size or reach, the Department of Labor is committed to vigorously enforcing the law.”

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

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

The Department of Labor, Employment and Training Administration’s Office of Foreign Labor Certification (OFLC) provides national leadership and policy guidance to carry out the responsibilities of the Secretary of Labor under the INA, as amended, concerning the admission of foreign workers to the United States for employment.

A permanent labor certification allows an employer to hire a foreign worker to work permanently in the United States. In most instances, before the U.S. employer can submit an immigration petition to the Department of Homeland Security’s U.S. Citizenship and Immigration Services (USCIS), the employer must obtain a certified labor certification application from OFLC. The Secretary of Labor must certify to the USCIS that there are not sufficient U.S. workers able, willing, qualified and available to accept the job opportunity in the area of intended employment and that employment of the foreign worker will not adversely affect the wages and working conditions of similarly employed U.S. workers.

Suspected violations relating to the PERM labor certification process can be promptly referred to OFLC at Plc.atlanta@dol.gov.

The Department of Justice issued its Annual Report to Congress on its Activities to Combat Elder Fraud and Abuse. The report summarizes the department’s extensive elder justice efforts from July 1, 2020 through June 30, 2021.

As Attorney General Merrick B. Garland recognized, the COVID-19 pandemic exposed and exacerbated injustices faced by far too many of the most vulnerable among us, including older Americans. Even with the unprecedented challenges of the COVID-19 pandemic, the department achieved noteworthy success in combating elder abuse, neglect and financial exploitation and fraud as detailed in the report. 

“While technology has brought the world together in many ways, it has also opened the door to a myriad of fraud schemes that prey upon older adults,” said Deputy Attorney General Lisa O. Monaco. “The department will not hesitate to use all the tools at its disposal to identify and disrupt such schemes, wherever they may originate or occur.”

“The COVID-19 pandemic has heightened the risk for abuse directed towards seniors who are socially isolated and vulnerable to exploitation,” said Associate Attorney General Vanita Gupta. “As this Annual Report demonstrates, the department has marshalled a wide array of tools – enforcement actions, research, public education and outreach, training and victim services – to combat elder abuse and to ensure that our seniors have the support and protections that they deserve.” 

Collectively, the department brought over 220 criminal and civil enforcement actions covering nearly 20 different types of fraud that targeted or disproportionately affected older Americans. Fraud types included tech support scams, veteran scams and fraud perpetrated by guardians and powers of attorney which are particularly egregious as these individuals hold a special duty to care. For the first time, the department brought cases that disrupted conduct facilitating fraud by stopping overseas internet calling services that facilitate fraudulent robocalls, and bringing down data companies and list brokers than facilitate mass marketing fraud. Interrupting fraud schemes prior to reaching older adults is key in the fight against elder fraud.

Over the past year, the department invested heavily in training and tools to ensure federal, state and local elder justice professionals are equipped to hold offenders accountable while ensuring victims receive the services they need. For example, the department supported the development of online elder abuse training for law enforcement that, for the first time, enables law enforcement officers to receive Peace Officer Standards and Training credit in 36 states. 

The report also highlighted the many ways the department provides victim support for older Americans. For example, the FBI’s Recovery Asset Team was able to work with financial institutions to freeze over $13.5 million (a 75% success rate) among older victims of fraud before those monies were wired and lost to the victims. Moreover, the department’s Office for Victims of Crime awarded Victims of Crime Act (VOCA) grants to states totaling more than $1.6 billion, with $86 million of that allocated for programs serving older crime victims.

Components throughout the department engaged in public outreach activities as part of the department’s effort to prevent elder abuse. For example, many U.S. Attorney’s Offices participated in local outreach events such as town halls and media events, both in conjunction with World Elder Abuse Awareness Day celebrations and otherwise. In 2021, the National Crime Victims’ Rights Week (NCVRW) Resource Guide featured elder fraud and the National Elder Fraud Hotline.

Finally, research and statistical components within the department play a critical role in funding or producing information thereby enhancing our understanding of elder abuse, and ultimately informing policy and practice. The FBI’s Internet Crime Complaint Center (IC3) released the first 2020 Elder Fraud Report providing information useful for targeting interventions. For example, the report found that over 100,000 persons over the age of 60 filed a complaint, with a resulting loss of nearly $1 billion, although the greatest financial losses were associated with confidence fraud/romance scams.

To report financial fraud, call the National Elder Fraud Hotline, 1-833-FRAUD-11 (1-833-372-8311).  For more information on the department’s elder justice activities, visit https://www.justice.gov/elderjustice.

Credit Suisse Group AG, a global financial institution headquartered in Switzerland, and Credit Suisse Securities (Europe) Limited (CSSEL), its subsidiary in the United Kingdom (together, Credit Suisse), have admitted to defrauding U.S. and international investors in the financing of an $850 million loan for a tuna fishing project in Mozambique, and have been assessed more than $547 million in penalties, fines, and disgorgement as part of coordinated resolutions with criminal and civil authorities in the United States and the United Kingdom. After taking account of crediting by the department of the other resolutions, Credit Suisse will pay approximately $475 million to authorities in the United States and the United Kingdom, as well as restitution to victims in an amount to be determined by the court.

“Credit Suisse Group AG, through its U.K. subsidiary CSSEL, defrauded U.S. and international investors in connection with a lending project in Mozambique,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Among other things, Credit Suisse Group AG, CSSEL, and their co-conspirators deceived investors by hiding information about the risk that loan proceeds were used for illegal purposes in connection with the restructuring of the loan. Today’s coordinated resolution with the U.S. Securities and Exchange Commission and the Financial Conduct Authority in the United Kingdom shows that the department will not tolerate fraud by international financial institutions and is committed to working in parallel to domestic and foreign authorities to use all tools at our disposal to hold corporate wrongdoers accountable.”

According to court documents filed today in the U.S. District Court for the Eastern District of New York and statements made during the proceeding, Credit Suisse Group AG entered into a three-year deferred prosecution agreement with the department in connection with a criminal information charging Credit Suisse Group AG with conspiracy to commit wire fraud, and CSSEL pleaded guilty to a one-count criminal information charging it with conspiracy to commit wire fraud.

This resolution follows the prior entry of guilty pleas by three CSSEL bankers. In July 2019, Andrew Pearse, a former managing director of CSSEL, pleaded guilty to conspiracy to commit wire fraud. In September 2019, Surjan Singh, a former managing director of CSSEL, pleaded guilty to conspiracy to commit money laundering, and in May 2019, Detelina Subeva, a former vice president of CSSEL, also pleaded guilty to conspiracy to commit money laundering.

“Over the course of several years, Credit Suisse, through its subsidiary in the United Kingdom, engaged in a global criminal conspiracy to defraud investors, including investors in the United States, by failing to disclose material information to investors, including millions of dollars in kickbacks to its bankers and a high risk of corruption, in connection with an $850 million fraudulent loan to a Mozambique state-owned entity,” said U.S. Attorney Breon Peace for the Eastern District of New York. “This coordinated global resolution demonstrates this Office’s commitment to working across borders with our global law enforcement partners to root out abuse and fraud by financial institutions in order to protect investors here in the United States.”  

According to Credit Suisse’s admissions and court documents, between 2013 and March 2017, Credit Suisse, through CSSEL, and co-conspirators used U.S. wires and the U.S. financial system to defraud investors in securities related to a Mozambican state-owned entity, Empresa Moçambicana de Atum S.A. (EMATUM), which Mozambique created to develop a state-owned tuna fishing project. Credit Suisse, through its employees and agents, conspired to and did defraud investors and potential investors in EMATUM by making numerous material misrepresentations and omissions relating to, among other things, (1) the use of loan proceeds; (2) kickback payments to CSSEL bankers and the risk of bribes to Mozambican officials; and (3) the existence and maturity dates of debt owed by Mozambique, including another loan that Credit Suisse arranged to a Mozambique state-owned entity (ProIndicus) and a different loan another bank arranged with Credit Suisse’s knowledge. Credit Suisse represented to investors that the loan proceeds would only be used for the tuna fishing project. Instead, co-conspirators diverted loan proceeds obtained from investors. Specifically, a contractor that supplied boats and equipment for EMATUM and that received the loan proceeds from Credit Suisse paid kickbacks of approximately $50 million to CSSEL bankers and bribes totaling approximately $150 million to Mozambican government officials.

Credit Suisse also admitted that it identified significant red flags prior to and during the EMATUM financing. For example, Credit Suisse had learned of significant corruption and bribery concerns associated with the contractor. In addition, in or about 2015, Credit Suisse became aware that EMATUM had encountered problems servicing the loan, raising the risk of default. Credit Suisse agreed to arrange the restructuring and exchange of the original EMATUM security into a bond with a longer maturity date. During the restructuring, Credit Suisse employees raised concerns about corruption allegations made in the press and disparities in the use of loan proceeds. To address these concerns, Credit Suisse retained two independent industry experts to conduct a market valuation of the tuna fishing boats and other goods the contractor provided for the EMATUM project. Credit Suisse knew that the experts identified a shortfall of between $265 million and $394 million between the funds raised for the EMATUM loan and the fair market value of the boats and accompanying infrastructure and training the contractor sold to EMATUM. Credit Suisse did not disclose this material information to investors during the restructuring and the exchange. Aspects of Credit Suisse’s fraudulent conduct were revealed beginning in April 2016, causing the price of the EMATUM securities to drop and resulting in losses to investors.

Under the terms of its agreements, Credit Suisse’s penalty is approximately $247.5 million. After crediting by the department for payments to other authorities, Credit Suisse will pay approximately $175.5 million to the United States. Credit Suisse has also agreed to a methodology to calculate proximate fraud loss for victims of its criminal conduct; the amount of restitution payable to victims will be determined at a future proceeding. Credit Suisse also reached separate parallel resolutions with the U.S. Securities and Exchange Commission (SEC) and the United Kingdom’s Financial Conduct Authority (FCA). Switzerland’s Financial Market Supervisory Authority (FINMA) also engaged in an enforcement action, which includes the appointment of an independent third-party to review the implementation and effectiveness of compliance measures for business conducted in financially weak and high-risk countries, subject to FINMA’s administrative process. 

The department reached this resolution with Credit Suisse based on several factors, including its failure to voluntarily disclose the conduct to the department and the nature and seriousness of the offense, which included the involvement of bankers within CSSEL. Credit Suisse received only partial credit for its cooperation with the department’s investigation because it significantly delayed producing relevant evidence. Accordingly, the total penalty reflects a 15% reduction off the bottom of the applicable U.S. Sentencing Guidelines range. Credit Suisse has also agreed to continue to cooperate with the department, to enhance its compliance program and internal controls, and to provide enhanced reporting to the department on the Credit Suisse’s remediation and compliance program. Among other things, the enhanced reporting provisions require Credit Suisse to meet with the department at least quarterly and to submit yearly reports regarding the status of its remediation efforts, the results of its testing of its compliance program, and its proposals to ensure that its compliance program is reasonably designed, implemented, and enforced so that it is effective in deterring and detecting violations of fraud, money laundering, the Foreign Corrupt Practices Act, and other applicable anti-corruption laws.

The FBI is investigating the case.

Trial Attorneys Margaret A. Moeser of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), David M. Fuhr and Katherine Nielsen of the Criminal Division’s Fraud Section, and Assistant U.S. Attorney Hiral D. Mehta of the U.S. Attorney’s Office for the Eastern District of New York are prosecuting the case. The Criminal Division’s Office of International Affairs provided critical assistance in this case. 

The department appreciates the significant assistance provided by the SEC and the FCA. The department also expresses its appreciation for the assistance provided by authorities in Switzerland and the United Kingdom in responding to Mutual Legal Assistance requests.

MLARS’ Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.

Additional information about the Fraud Section’s role in the Criminal Division’s efforts to combat economic crime can be found at www.justice.gov/criminal-fraud.