District Not Recorded

Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Sharee Diaz Joyner, age 44, from San Vicente, Saipan, was sentenced in the United States District Court of the Northern Mariana Islands to thirty months imprisonment for Attempting to Possess Over Five Grams of Methamphetamine with the Intent to Distribute, in violation of 21 U.S.C. § 841(a)(1).  The Court also ordered four years of supervised release following imprisonment, 100 hours of community service, and a mandatory $100.00 special assessment fee.  In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.

From January to February 2019, Sharee Diaz Joyner conspired with others to obtain methamphetamine with the intent to distribute the drug in the CNMI.  Joyner contacted her source of supply on Rota to have methamphetamine fronted to her.  Joyner would pay for the drugs after they were sold.  On the next trip to Rota, Joyner received 39.15 grams of methamphetamine.  She brought the drugs back to Saipan by plane.  CNMI Customs Inspectors discovered the drugs during an inspection upon her arrival.  A DEA forensic chemist determined that the drugs were 96% pure.

This was a joint investigation by the United States Drug Enforcement Administration, CNMI Customs Service, and CNMI Drug Enforcement Task Force. The case was prosecuted by Garth R. Backe, Assistant United States Attorney in the District of the Northern Mariana Islands.

The U.S. Department of Justice, the U.S. Environmental Protection Agency (EPA) and the Indiana Department of Environmental Management (IDEM) have agreed to amend a 2012 Clean Water Act consent decree with the City of South Bend, Indiana.

The amendment requires implementation of a revised long-term plan to reduce and treat sewage and wastewater discharges to meet Indiana’s water quality standard for E. coli. The revised plan will improve public health, better protect the St. Joseph River, a tributary of Lake Michigan, and lower the cost of compliance.

“This amendment provides South Bend time to revise its long-term plan to further reduce and treat sewage and wastewater discharges to meet Indiana’s water quality standard,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The revised plan and additional time should improve public health and better protect the St. Joseph River, while also lowering costs for ratepayers.”

“This settlement results in a significant reduction in pollutant discharges to the St. Joseph River and Lake Michigan, and also reduces costs for South Bend’s rate payers,” said Acting U.S. Attorney Tina Nommay for the Northern District of Indiana. “We thank the federal, state and local authorities who partnered with us to achieve this excellent result.”

“Through the cooperative work of federal, state and local officials, this amended agreement will reduce harmful wastewater discharges to the St. Joseph River and significantly lower costs for the citizens of South Bend,” said Acting Administrator Larry Starfield for EPA’s Office of Enforcement and Compliance Assurance.

“This revised Long-Term Control Plan results in a reduction of sewage and wastewater to the St. Joseph River which improves human health and the environment,” said IDEM Commissioner Bruno Pigott. “The revised plan is a great example of the success we can achieve when federal, state and local partners work together to ensure Indiana’s environment is safe for all Hoosiers.”

Prior to 2012, the City of South Bend discharged more than 2 billion gallons of untreated human and industrial sewage and stormwater a year, containing highly concentrated levels of E. coli bacteria through combined sewer overflows, or CSOs, into the St. Joseph River. The 2012 consent decree required South Bend to reduce discharges to 46.9 million gallons per year and reduce E. coli to 15,000 counts per 100 milliliters. While a significant improvement, the E. coli discharge concentrations under the original plan still would have exceeded Indiana’s E. coli water quality standard of 235 counts per 100 milliliters. Under the revised plan that will be fully implemented by 2038, South Bend will treat virtually all of its annual discharge volumes to concentrations below Indiana's water quality standard for E. coli and save hundreds of millions of dollars in compliance costs.

The revised plan includes the following:

• Expansion of South Bend’s current sewage treatment plant
• Construction of three retention treatment facilities
• Replacement or modification of various sewers

South Bend estimates that the revised plan will cost approximately $276 million in 2019 dollars, significantly less than the $700 million or more that South Bend estimates would be the cost to implement the remaining measures required under the 2012 consent decree. South Bend was able to develop the revised plan in large part because it installed more than 150 “smart” sensors at more than a hundred locations in its sewer system to allow it to better monitor and manage its flows. This “smart sewer system” enables South Bend to construct fewer and smaller-sized gray infrastructure measures and, at the same time, achieve a greater level of pollution control.

The proposed amended consent decree is subject to a 30-day public comment period and final court approval after it is published in the Federal Register. To view the proposed amended consent decree or to submit a comment, visit the Department of Justice website at: www.justice.gov/enrd/Consent_Decrees.html.

An Iowa woman was sentenced yesterday on two hate crimes charges for attempting to kill two minor victims because of their race and national origin.

Nicole Poole Franklin, 42, was sentenced by U.S. District Judge Stephanie M. Rose to 304 months in federal prison on each count, with the sentences to run concurrently to each other and concurrent to the sentence imposed in the related state court case. Poole Franklin previously pleaded guilty in federal court on April 22, to two counts of hate crime acts.

According to court documents and statements made at the sentencing hearing, on the afternoon of Dec. 9, 2019, Poole Franklin was driving her Jeep Grand Cherokee on Creston Avenue in Des Moines, Iowa, where the first child-victim was walking along the sidewalk with another minor family member. Upon seeing the children and believing that the victim was of Middle Eastern or African descent, Poole Franklin drove her vehicle over the curb towards both children, striking one of them. Poole Franklin then drove away from the scene. The assault resulted in injury to the victim, including cuts, bruising, and swelling. Approximately 30 minutes later, Poole Franklin was driving her Jeep near Indian Hills Junior High School in Clive, Iowa, where the second child-victim was walking on the sidewalk. Poole Franklin, believing that the child was Mexican, drove her vehicle over the curb and struck the victim, causing serious injury, including a concussion, bruises, and cuts. Poole Franklin again drove away from the scene but was apprehended later that day.

“Nicole Poole Franklin attempted to kill two children because of the way they looked and where she believed they came from. This kind of egregious racial violence and hatred has absolutely no place in this country and will not be tolerated by the Justice Department,” said Assistant Attorney General Kristen Clarke of the Civil Rights Division. “Children deserve to walk the streets of their neighborhood without fear of violence because of what they look like and where they come from and deserve to grow up in a world where they are not targeted simply because of who they are. The Justice Department will continue to protect the civil rights of all individuals and vigorously prosecute those who commit hate crimes in this country.”

“Nothing can be more devastating to the American dream of equal rights than the actions of Poole Franklin on a hate filled Dec. 9, 2019, as she callously attempted to run over and kill a 12-year-old boy and a 14-year-old girl - two minors who had done nothing wrong other than innocently walk on a street and happen to be of a different race and skin color from Poole Franklin,” said Acting U.S. Attorney Richard D. Westphal for the Southern District of Iowa. “Her actions temporarily shattered, but did not permanently defeat this dream because these two courageous victims, and their amazing families, continue to epitomize the hopes of what our society can be. Holding Poole Franklin accountable, not only for her intentional actions, but for the malicious beliefs behind them, is what our justice system should be, and a must to provide just punishment, afford adequate deterrence, and protect the public form further crimes by this defendant.”

“Nicole Poole Franklin committed a despicable crime,” said Special Agent in Charge Eugene Kowel of the FBI Omaha Field Office. “She targeted and seriously injured two children because of the color of their skin. FBI Omaha will continue to work closely with our law enforcement partners to investigate hate crimes and seek justice for the victims. We encourage everyone to report such crimes to the FBI.”

This case was investigated by the FBI, with assistance from Des Moines and Clive Police Departments. Acting U.S. Attorney Richard D. Westphal of the Southern District of Iowa and Trial Attorneys Katherine DeVar and Andrew Manns of the Civil Rights Division are prosecuting the case.

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

The civil complaint filed in the case alleged that Lennette Roberts and her company, Real Counseling Solution Inc., which did business under the assumed name RR Tax and Accounting, prepared fraudulent federal income tax returns. According to the complaint, defendants prepared returns that made false and fraudulent claims including: (1) false itemized deductions; (2) fabricated losses for non-existent businesses; (3) false or inflated earned income tax credits; and (4) false head-of-household filing statuses (which results in a lower rate as compared to single filing status).

According to the court’s order, Lennette Roberts and her company consented to entry of the injunction, which permits the United States to conduct full post-judgment discovery to monitor compliance. The order requires that Roberts (1) send notice of the injunction to each person for whom she and her company prepared federal tax returns, other tax forms, or claims for refund after Jan. 1, 2018, and (2) post an electronic copy of the injunction on any business social media profile currently maintained or created over the next five years.

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

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

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

In a key step toward implementing the Administration’s blueprint for a fair, orderly, and humane immigration system, the Department of Justice (DOJ) and Department of Homeland Security (DHS) are publishing a notice of proposed rulemaking (NPRM) that would amend current regulations to improve the processing of asylum claims. The proposed rule would allow, U.S. Citizenship and Immigration Services (USCIS) asylum officers to hear and decide applications for asylum, withholding of removal, and Convention Against Torture (CAT) protection for individuals who receive a positive credible fear determination. These cases are currently assigned to immigration judges within the Justice Department’s Executive Office for Immigration Review.

“Today marks a step forward in our effort to make the asylum process fairer and more expeditious,” said Attorney General Merrick Garland. “This rule will both reduce the caseload in our immigration courts and protect the rights of those fleeing persecution and violence.”

“These proposed changes will significantly improve DHS’s and DOJ’s ability to more promptly and efficiently consider the asylum claims of individuals encountered at or near the border, while ensuring fundamental fairness,” said Secretary Alejandro N. Mayorkas. “Individuals who are eligible will receive relief more swiftly, while those who are not eligible will be expeditiously removed. We are building an immigration system that is designed to ensure due process, respect human dignity, and promote equity.”

The current system for hearing and adjudicating asylum claims at the southwest border has long needed repair. For nearly a decade, the number of such claims has ballooned, and the system has proved unable to keep pace, resulting in large backlogs and years-long delays in adjudication. The proposed rule aims to begin replacing the current system with a better and more efficient one to adjudicate protection claims fairly and expeditiously.

Under the proposed process, an individual who establishes a credible fear of removal will be referred to a USCIS asylum officer for a hearing on the protection claims. The asylum officer will be authorized to adjudicate in the first instance requests for asylum, as well as eligibility for statutory withholding of removal or for withholding or deferral of removal under the Convention Against Torture. In a denied case, the individual may request de novo administrative review by an immigration judge under a streamlined process, with further administrative appeal available through the Board of Immigration Appeals.

The rule also proposes a revision to the criteria applicable to grants of parole prior to the credible fear determination. The proposal would allow DHS to grant parole when “detention is unavailable or impracticable,” in addition to the existing criteria involving medical emergencies and law enforcement objectives.

The rule would apply to individuals who are placed into the expedited removal process on or after the effective date of the final rule. The rule would not apply to unaccompanied children or to individuals already residing in the United States. Details for submitting public comments can be found in the soon-to-be published NPRM.

This proposed rule joins a number of actions the Biden-Harris Administration is taking to build a fair, orderly, and humane immigration system, including by expanding pathways to apply for protection and opportunity in home countries, addressing the root causes of migration, and securely managing the southwest border.

A Georgia woman pleaded guilty today in the Northern District of Georgia for perpetrating a scheme to fraudulently obtain more than $7.9 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

According to court documents, Hunter VanPelt, aka Ellen Corkrum, 49, of Roswell, submitted six fraudulent PPP loan applications to four different lenders on behalf of entities she owned or controlled, namely: Georgia Nephrology Physician Associated, United Healthcare Group & Co., Nephrology Network Group LLC, First Corporate International, Corkrum Consolidated Inc., and Kiwi International Inc. Through the six PPP loan applications, VanPelt fraudulently sought more than $7.9 million in PPP loan funds, of which more than $6 million was disbursed to accounts controlled by VanPelt.

VanPelt falsely represented the number of employees and payroll expenses in each of the six PPP loan applications. To support the fraudulent PPP loan applications, VanPelt submitted fraudulent tax records, bank statements, and payroll reports. VanPelt, who legally changed her name from Ellen Corkrum to Hunter VanPelt in July 2016, submitted three of the PPP loan applications using the VanPelt name and three additional PPP loan applications using the Corkrum name.   

The Department of Justice, working with law enforcement partners, seized and recovered approximately $2.1 million of the disbursed PPP funds in this matter. An additional $1.6 million of the disbursed PPP funds were seized by a bank and returned to the lender.

“VanPelt brazenly exploited this devastating national emergency for personal gain, and she is now being held accountable for her fraudulent conduct,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “PPP funds should be reserved for legitimate businesses and their hard-working employees who have suffered economically as a result of the pandemic. The Department of Justice is committed to ensuring that anyone who takes advantage of COVID-19 relief programs will be brought to justice.”

“The Paycheck Protection Program helps businesses keep their workforces employed during the COVID-19 crisis,” said Acting U.S. Attorney Kurt Erskine for the Northern District of Georgia. “When these funds are diverted by fraud, such as in this case, workers and the businesses that employ them unfortunately suffer.”

“The Paycheck Protection Program is key to survival for many small businesses during the COVID-19 crisis,” said Special Agent in Charge Chris Hacker of FBI Atlanta. “It is particularly disturbing that anyone would try to capitalize off a federal program at those businesses’ expense. The FBI will persist in its efforts to stop such fraud.”                      

“To support small and community banks, the Federal Home Loan banks can accept Paycheck Protection Program (PPP) loans as collateral when making loans to their members,” said Special Agent in Charge Edwin S. Bonano of the Federal Housing Finance Agency, Office of Inspector General. “The Office of Inspector General is proud to work with our partners in law enforcement to prevent, detect, and deter attempts to perpetrate fraud in the Federal Home Loan Bank System and steal the assistance intended for small business owners and employees under this important part of the CARES Act.” 

VanPelt pleaded guilty to bank fraud. She is scheduled to be sentenced on Jan. 4, 2022, and faces a maximum penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI and FHFA-OIG are investigating the case.

Trial Attorney Chris Wenger of the National Rapid Response Strike Force of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Christopher Huber, Deputy Chief of the Complex Frauds Section of the U.S. Attorney’s Office for the Northern District of Georgia, are prosecuting the case.

The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/ppp-fraud.

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

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

A federal jury in Athens, Georgia, convicted a Georgia man today of filing fraudulent tax returns in the name of several trusts.

According to court documents and evidence presented at trial, between 2016 and 2018, Marquet Mattox, of Lilburn, filed at least 30 fraudulent federal income tax returns in the name of at least 11 different trusts. Those returns falsely represented that the trusts had earned interest income and that federal income taxes had been withheld and paid to the IRS. Mattox then fraudulently requested refunds on behalf of the purported trusts totaling nearly $165 million. The IRS paid approximately $5 million of the requested refunds, which Mattox used to purchase a house, expensive furniture and a luxury automobile. 

Mattox will be sentenced at a later date. He faces a maximum penalty of 20 years in prison on the wire fraud counts, five years on the false claims counts, and 10 years on the theft of government funds count. He also faces a period of supervised release, restitution, monetary penalties and forfeiture.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Peter D. Leary for the Middle District of Georgia made the announcement.

IRS-Criminal Investigation and the Treasury Department’s Office of the Inspector General investigated the case.

Trial Attorney Jessica A. Kraft of the Justice Department’s Tax Division and Assistant U.S. Attorney Lyndie M. Freeman of the Middle District of Georgia are prosecuting the case.

A federal court in the Southern District of Florida has held a Miami-area tax preparer in contempt for violating a permanent injunction that barred her from preparing, filing or assisting in the preparation or filing of federal tax returns for others.

The United States filed a complaint against Milagros Espinal on Feb. 7, 2011, that alleged that she had prepared returns for customers that claimed deductions for fraudulent medical expenses, charitable contributions and unreimbursed employee business expenses. According to the complaint, an IRS review of returns she prepared uncovered errors in 97% of the returns the agency examined. The parties contemporaneously filed a consent order, in which Espinal agreed to a full bar on return preparation. On Feb. 16, 2011, the court issued a permanent injunction.

On Dec. 29, 2020, the United States filed a motion for an order to show cause, requesting an evidentiary hearing and alleging that Espinal was in contempt. According to the motion, during a deposition in an unrelated civil case, Espinal testified that her profession was “income tax, taxes.” The motion alleged that a subsequent Department of Justice investigation revealed that Espinal had continued to prepare fraudulent returns, that she had never stopped doing so, despite the injunction, and that she continued to act as a “ghost” preparer, and does not sign the returns she prepares. The court granted that motion and held an evidentiary hearing on April 15, 2021.

In holding Espinal in contempt today, the court found that the United States proved by clear and convincing evidence that Espinal continued to prepare returns notwithstanding the injunction. According to the court’s order, Espinal attempted to mask her violations by acting as a “ghost” preparer, meaning that she did not sign the returns she prepared and instead instructed customers to submit the returns to the IRS as though the customers prepared them on their own. The court noted that paid preparers are required to sign the returns they prepare and that failing to do so is a violation of federal law.

The court also found that the returns Espinal filed in violation of the injunction contained numerous fraudulent claims. In particular, the order concludes that Espinal frequently fabricated fuel tax credits and that she included more than $269,095 in fabricated or overstated deductions on the returns she prepared for the customers who testified at the contempt hearing. According to the order, the court will impose a sanction on Espinal on a later date.

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

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

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

A Virginia man was sentenced today in the Eastern District of Virginia to 14 years in prison for his role in an investment fraud scheme in which he and his co-conspirators stole approximately $5.7 million from victim investors.

According to court documents, James Leonard Smith, 65, of Midlothian, was convicted by a federal jury of conspiracy to commit wire fraud, wire fraud, and money laundering on Oct. 30, 2020, after a four-day trial.

According to the evidence presented at trial, from around 2014 to 2017, Smith participated in a worldwide scheme through Chimera Group Ltd., a purported investment company based out of the United Kingdom. The fraud operated as an advance-fee scheme in which the defendants acted as promoters who promised to pay the victims a sum of money at a later date in exchange for an up-front payment. Among other misrepresentations, Smith and his co-conspirators told potential victims that their principal payments would be protected based on letters of credit and other documents that purported to be from a large financial institution. However, these documents were fabricated, sometimes with the assistance of Smith himself. The evidence also showed that Smith and his co-conspirators used escrow attorneys, who were themselves part of the scheme, in order to give the victims the impression that their money would remain secure until the defendants’ promises had been kept. Smith and his co-conspirators stole at least $5.7 million from their victims.

Co-conspirator Stuart Jay Anderson, 54, of Aliso Viejo, California, an escrow attorney involved in the scheme, was sentenced to four years in prison on Dec. 3, 2020. Co-defendant James Michael Johnson, 70, of Richmond, was sentenced to more than eight years in prison on March 5. Co-defendant Brian Michael Bridge, 48, of London, England, a fugitive, was also charged in the superseding indictment, and is presumed innocent until proven guilty.

Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Raj Parekh of the Eastern District of Virginia; Inspector in Charge Eric Shen of the U.S. Postal Inspection Service Criminal Investigations Group; and Special Agent in Charge Stanley M. Meador of the FBI’s Richmond Field Office made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson.

The U.S. Postal Inspection Service, FBI’s Richmond Field Office, and the Virginia State Corporation Commission investigated the case.

Trial Attorneys Vasanth Sridharan and Christopher Jackson of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael C. Moore of the Eastern District of Virginia prosecuted the case.

The Criminal Division’s Fraud Section plays a pivotal role in the Justice Department’s fight against white collar crime around the country.

A licensed pharmacist was arrested today in Chicago on charges related to his alleged sale of dozens of authentic Centers for Disease Control and Prevention (CDC) COVID-19 vaccination cards on eBay.

According to court documents, in March and April 2021, Tangtang Zhao, 34, of Chicago, sold 125 authentic CDC vaccination cards to 11 different buyers for approximately $10 per card. Zhao was a licensed pharmacist in Illinois and was employed at Company 1, a pharmacy which distributed and administered COVID-19 vaccines at its physical locations nationwide. As required by the CDC, Company 1 provided a CDC Vaccination Record Card to each vaccine recipient. Zhao, who worked at Company 1 as a pharmacist during that time, obtained and subsequently offered authentic CDC vaccination cards for sale online. The indictment charges Zhao with 12 counts of theft of government property.

“We take seriously, and will vigorously investigate, any criminal offense that contributes to the distrust around vaccines and vaccination status,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The Department of Justice and its law enforcement partners are committed to protecting the American people from these offenses during this national emergency.”

“Knowingly selling COVID vaccination cards to unvaccinated individuals puts millions of Americans at risk of serious injury or death,” said Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office. “To put such a small price on the safety of our nation is not only an insult to those who are doing their part in the fight to stop COVID-19, but a federal crime with serious consequences.”

“Stealing and selling COVID-19 vaccination cards is inexcusable and will not be tolerated,” said Special Agent in Charge Lamont Pugh III of the U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG) – Chicago Region. “Fraudsters who engage in such unlawful conduct undermine efforts to address the pandemic and profit at the public’s expense. The health and safety of the public is our top priority, and we encourage people to obtain vaccination cards from their administering medical providers.” 

Zhao is charged by indictment with 12 counts of theft of government property. Zhao made his initial court appearance on Aug. 17 before U.S. Magistrate Judge Sheila M. Finnegan of the U.S. District Court for the Northern District of Illinois. If convicted, he faces a sentence of 10 years in prison per count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI and HHS-OIG are investigating the case.

Trial Attorney Leslie S. Garthwaite of the Criminal Division’s Fraud Section is prosecuting the case.

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

An indictment was unsealed today charging three men who operated labor-staffing companies in Florida with conspiracy to harbor non-resident aliens and induce them to remain in the country and with conspiracy to commit money laundering.

According to the indictment, Mykhaylo Chugay, Oleksandr Morgunov, Volodymyr Ogorodnychuk and others owned and operated a series of labor-staffing companies in southern Florida, including Paradise Choice LLC, Paradise Choice Cleaning LLC, Tropical City Services LLC, and Tropical City Group LLC, between August 2007 and July 2021. The indictment charges that the defendants, through these staffing companies, facilitated the employment in the hospitality industry of non-resident aliens who were not authorized to work in the United States.

If convicted, the defendants each face a maximum penalty of 10 years in prison on the conspiracy to harbor aliens and induce them to remain in the United States and a maximum penalty of 20 years in prison on the money laundering conspiracy. Each count also carries the possibility of a fine and supervised release upon completion of any sentence of incarceration. 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 Juan Antonio Gonzalez for the Southern District of Florida made the announcement.

The U.S. Department of Homeland Security, Homeland Security Investigations and IRS-Criminal Investigation are investigating the case.

Trial Attorneys Sean Beaty and Jessica Kraft of the Justice Department’s Tax Division and Assistant U.S. Attorney Chris Clark of the Southern District of Florida are prosecuting the case.

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

The Department of Justice today announced that it signed a settlement agreement with Ameritech Global Inc., an IT staffing and recruiting company based in Illinois.

The settlement resolves claims that Ameritech discriminated against U.S. workers when it  posted job advertisements specifying its preference for hiring applicants with temporary work visas, and failed to consider at least three U.S. worker applicants who nevertheless applied to the advertised positions.  

The department’s investigation began after a U.S. citizen filed a discrimination complaint with the Civil Rights Division against Ameritech. Based on its investigation, the department concluded that from at least Aug.1, 2019 to June 17, 2021, Ameritech posted at least three job advertisements announcing its preference to fill positions with non-U.S. citizens with immigration statuses associated with certain employment-based visas, and, in doing so, harmed U.S. workers (U.S. citizens, U.S. nationals, recent lawful permanent residents, asylees and refugees), by both unlawfully deterring many of them from applying and failing to fairly consider hiring those who nevertheless applied. Under the Immigration and Nationality Act (INA), employers are not generally allowed to discriminate in recruitment or hiring based on citizenship status. 

“Employers who discourage and refuse to hire eligible job applicants based on their citizenship or immigration status must be held accountable,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division will step in and vigorously enforce the law to ensure that workers are protected from such unlawful discrimination.”

Under the terms of the settlement agreement, Ameritech will pay $10,000 in civil penalties to the United States, revise its policies and procedures and train relevant employees and agents on the INA’s anti-discrimination provision. 

The Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits discrimination based on citizenship status or immigration status and national origin in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation. More information about citizenship status discrimination under the INA is available in this flyer. 

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

El Departamento de Justicia anunció hoy que ha firmado un acuerdo conciliatorio con Ameritech Global, Inc., una compañía de contratación y reclutamiento en el ámbito de la informática con sede en Illinois. El acuerdo resuelve acusaciones de que Ameritech había discriminado a trabajadores en este país cuando, al publicar anuncios de trabajo, especificó una preferencia por contratar a candidatos con visas temporales de trabajo y negarse a considerar al menos a tres candidatos que eran trabajadores en este país que, a pesar de ello, solicitaron los puestos publicados.

La investigación del Departamento comenzó después de que un ciudadano de los EE. UU. presentó una demanda de discriminación contra Ameritech ante la División de Derechos Civiles. Con base en la investigación, el Departamento concluyó que desde al menos el 1 de agosto del 2019 hasta el 17 de junio del 2021, Ameritech publicó al menos tres anuncios de trabajo que indicaban una preferencia por cubrir los puestos con individuos que no son ciudadanos estadounidenses con estatuses migratorios asociados con ciertas visas basadas en el empleo y, al hacerlo, perjudicaron a trabajadores en este país (ciudadanos de los EE. UU., nacionales de los EE. UU., residentes permanentes legales recientes, asilados y refugiados) tanto por disuadir ilegalmente a muchos de ellos de solicitar un puesto como por negarse a considerar, de manera justa, a contratar a aquellos personas que , a pesar de todo, solicitaron un puesto. En virtud de la ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés), a los empleadores, por lo general, no se les permite discriminar en los procesos de reclutamiento o contratación con base en el estatus de ciudadanía.

«Se debe hacer rendir cuentas a aquellos empleadores que desalientan y se niegan a contratar a candidatos laborales elegibles por motivos de su estatus migratorio o de ciudadanía», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «La División de Derechos Civiles intervendrá y hará cumplir, con firmeza, la ley para garantizar que los trabajadores queden protegidos de tal discriminación ilegal».

Conforme los términos del acuerdo conciliatorio, Ameritech pagará una sanción civil que asciende a 10.000 $ a los Estados Unidos; revisará sus políticas y procedimientos y capacitará a los empleados y agentes relevantes acerca de la disposición antidiscriminatoria de la INA. 

La Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés) de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe la discriminación con base en el estatus migratorio o de ciudadanía o bien por la nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas y represalias e intimidación. Este folleto contiene más información sobre la discriminación con base en el estatus migratorio o de ciudadanía al amparo de la INA.

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

El Departamento de Justicia anunció hoy que ha firmado un acuerdo conciliatorio con Ameritech Global, Inc., una compañía de contratación y reclutamiento en el ámbito de la informática con sede en Illinois. El acuerdo resuelve acusaciones de que Ameritech había discriminado a trabajadores en este país cuando, al publicar anuncios de trabajo, especificó una preferencia por contratar a candidatos con visas temporales de trabajo y negarse a considerar al menos a tres candidatos que eran trabajadores en este país que, a pesar de ello, solicitaron los puestos publicados.

La investigación del Departamento comenzó después de que un ciudadano de los EE. UU. presentó una demanda de discriminación contra Ameritech ante la División de Derechos Civiles. Con base en la investigación, el Departamento concluyó que desde al menos el 1 de agosto del 2019 hasta el 17 de junio del 2021, Ameritech publicó al menos tres anuncios de trabajo que indicaban una preferencia por cubrir los puestos con individuos que no son ciudadanos estadounidenses con estatuses migratorios asociados con ciertas visas basadas en el empleo y, al hacerlo, perjudicaron a trabajadores en este país (ciudadanos de los EE. UU., nacionales de los EE. UU., residentes permanentes legales recientes, asilados y refugiados) tanto por disuadir ilegalmente a muchos de ellos de solicitar un puesto como por negarse a considerar, de manera justa, a contratar a aquellos personas que , a pesar de todo, solicitaron un puesto. En virtud de la ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés), a los empleadores, por lo general, no se les permite discriminar en los procesos de reclutamiento o contratación con base en el estatus de ciudadanía.

«Se debe hacer rendir cuentas a aquellos empleadores que desalientan y se niegan a contratar a candidatos laborales elegibles por motivos de su estatus migratorio o de ciudadanía», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «La División de Derechos Civiles intervendrá y hará cumplir, con firmeza, la ley para garantizar que los trabajadores queden protegidos de tal discriminación ilegal».

Conforme los términos del acuerdo conciliatorio, Ameritech pagará una sanción civil que asciende a 10.000 $ a los Estados Unidos; revisará sus políticas y procedimientos y capacitará a los empleados y agentes relevantes acerca de la disposición antidiscriminatoria de la INA. 

La Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés) de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe la discriminación con base en el estatus migratorio o de ciudadanía o bien por la nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas y represalias e intimidación. Este folleto contiene más información sobre la discriminación con base en el estatus migratorio o de ciudadanía al amparo de la INA.

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

The Department of Justice announced today that Hampton Corporation Inc. and several related individuals and entities have agreed to settle a federal lawsuit alleging that they violated the Fair Housing Act (FHA) and Americans with Disabilities Act (ADA) by failing to design and construct apartment complexes and a rental office in North Dakota so they are accessible to people with disabilities. The Department of Justice previously resolved claims against the architect and engineer involved in the design of one of the four apartment complexes at issue in the lawsuit.

“For over 30 years, the Fair Housing Act has required that new housing complexes be accessible to individuals with disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “By requiring modifications to the properties, this settlement will reduce substantial barriers faced by people with disabilities in their own homes and will advance the Fair Housing Act’s promise of housing that is accessible for all.”

“Our U.S. Attorney’s Office and the Department of Justice are committed to fighting discriminatory treatment in housing,” said Acting U.S. Attorney Nicholas W. Chase for the District of North Dakota. “We hope that this enforcement action and others like it will serve as a deterrent to developers, architects and engineers everywhere that they cannot cut corners by ignoring longstanding accessibility requirements. Our office’s Civil Rights Coordinator in our Civil Division, AUSA Tara Iversen, along with Paralegal Specialist Michelle Erdmann, teamed with talented trial attorneys from the Department of Justice’s Housing and Civil Enforcement Section to produce a great result for persons with disabilities in North Dakota and the region.”

Today’s settlement, which must be approved by the U.S. District Court for the District of North Dakota, resolves a lawsuit the department filed in March 2020. The lawsuit alleged that significant physical accessibility barriers existed at four apartment complexes and a rental office designed and constructed by Hampton Corporation Inc.; Daniel Stauss; Scott Stauss; Steeple Apts LLC; HDD Inc.; and Times Square Townhomes II Inc.

Under the terms of the settlement, the defendants must correct inaccessible features in the common areas of the properties and within the individual units, including: removing steps; replacing steeply-sloped walkways; adding accessible routes to mailboxes and site arrival points; ensuring that obstacles do not protrude into the circulation path; installing lever handles on doors; widening doorways; retrofitting bathrooms so they are accessible for wheelchair users; and relocating outlets and controls to within a wheelchair user’s reach range. The defendants must also attend fair housing training, contribute $100,000 to a settlement fund (which, combined with the department’s earlier settlement with the architect and engineer, brings the settlement fund total to $120,000) for people who suffered harm due to the lack of accessible features at the properties, pay a civil penalty of $5,000 to the United States, and ensure that any future housing they design or construct complies with the FHA.

The properties with alleged violations are the following:  

• Townhomes at Charleswood, located at 1908 Burlington Drive in West Fargo, North Dakota;
• Steeples Apartments, located at 2850 and 2950 36th Avenue South in Grand Forks, North Dakota;
• South Hampton Townhomes, located at 3174, 3274 and 3374 36th Avenue South in Grand Forks, North Dakota;
• Carrington Court Townhouse Apartments, located at 3383 Primrose Court in Grand Forks, North Dakota; and
• The rental office serving Carrington Court Townhouse Apartments, South Hampton Townhomes, and Steeples Apartments, located at 3001 36th Avenue South in Grand Forks, North Dakota.

The Justice Department, through the U.S. Attorney’s Offices and the Civil Rights Division, enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. Among other protections, the FHA requires that multifamily housing buildings with four or more units constructed after March 13, 1991, have basic physical accessibility features, including, among other things, accessible routes without steps to all single-story, ground-floor units and to all units in a building served by an elevator. The ADA protects individuals with disabilities from discrimination in public accommodations, including the rental office at issue in this case. The full and fair enforcement of the FHA, the ADA, and their mandates to integrate individuals with disabilities are major priorities of the Civil Rights Division.

Individuals who believe they or someone they know may have had difficulty due to the inaccessible conditions at any of these properties, either when they or someone associated with them lived there or considered living there, should contact the Department of Justice at 1-800-896-7743, ext. 9994. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, email the Justice Department at fairhousing@usdoj.gov, or submit a report online at www.civilrights.justice.gov.

A federal court in the Southern District of Florida, West Palm Beach Division, has permanently enjoined four Palm Beach-area tax return preparers from preparing federal income tax returns for others and from owning or operating any tax return business in the future.

In issuing an injunction against Marcus Alty; Jeanait Mathurin; Prestige Tax Services Inc. (dba Just Tax Services LLC); and Excellent Tax Services “LLC” (dba Excellent Tax Services), the court found that the defendants prepared tax returns making false or fraudulent claims for the American Opportunity Tax Credit and Earned Income Tax Credit, often based on fabricated business income and expenses. The order further holds that the defendants prepared returns that falsely claimed fuel tax credits and that reported false education expenses. The civil complaint filed against the defendants alleged that their fraudulent activities resulted in a loss to the Treasury of over $5 million.

The injunctions against defendants were entered by default: according to the order against them, Alty, Mathurin, and Prestige Tax Services failed to appear in the action, while Excellent Tax Services filed an answer but otherwise failed to participate in the litigation. The court also ordered a 90-day discovery period to allow the United States to determine the appropriate disgorgement amount for the ill-gotten gains that defendants received for the preparation of tax returns containing falsely reported items.

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

Return preparer fraud is one of the IRS’s’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a list of important reminders for taxpayers who are about to file their 2020 tax returns, including how to prepare for a smooth filing process.

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

The Department of Justice announced today that it reached a settlement with JP Senior Healthcare LLC and JP Senior Management LLC, resolving the department’s claims that these companies violated the Immigration and Nationality Act (INA) by discriminating against a Latino employee based on assumptions that the worker was not a U.S. citizen.

JP Senior Management manages two nursing facilities owned by JP Senior Healthcare: Pioneer Valley Living and Rehab located in Sergeant Bluff, Iowa, and Goldenrod Manor Care Center located in Clarinda, Iowa.  

Based on its investigation, the department determined that while verifying a new employee’s legal right to work in the United States, JP Senior Healthcare and JP Senior Management rejected the U.S. citizen’s valid driver’s license and unrestricted Social Security card. The investigation further concluded that the companies demanded that the worker instead present a Permanent Resident Card based on the companies’ incorrect belief that the worker was not a U.S. citizen, even after the worker explained that he was a U.S. citizen, and therefore, not eligible for a Permanent Resident Card. Additionally, the department determined that these documentary demands resulted in the end of the worker’s employment. The INA’s anti-discrimination provision prohibits employers from requesting more or different documents than necessary to prove work authorization based on employees’ citizenship status or national origin. Instead, all work-authorized individuals, regardless of citizenship status or national origin, may choose which valid, legally acceptable documents to present to demonstrate their ability to work in the United States.

“Employers must treat all workers fairly and consistent with the law, without making assumptions about a worker’s citizenship based on appearance or Hispanic national origin,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division is committed to ensuring that workplaces are free of discrimination.”

Under the terms of the settlement agreement, JP Senior Healthcare LLC and JP Senior Management LLC will pay a civil penalty to the United States; pay the injured worker back pay plus interest; and train relevant employees on the INA’s anti-discrimination provision.

The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits 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.  

Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, 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. Subscribe to GovDelivery to receive updates from IER. View the Spanish translation of this press release here.

WASHINGTON - El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con JP Senior Healthcare LLC y JP Senior Management LLC, el cual resuelve las acusaciones del Departamento de que estas compañías vulneraron la ley de Ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés) al discriminar a un empleado Latino con base en suposiciones que el trabajador no era ciudadano de los EE. UU. JP Senior Management gestiona dos centros de cuidados, de los cuales JP Senior Healthcare es el dueño: Pioneer Valley Living and Rehab, ubicado en Sergeant Bluff, Iowa, y Goldenrod Manor Care Center, ubicado en Clarinda, Iowa. 

Con base en su investigación, el Departamento determinó que a la hora de verificar el derecho legal de un empleado nuevo a trabajar en los Estados Unidos, JP Senior Healthcare y JP Senior Management rechazaron el carnet de conducir válido y tarjeta de seguro social sin restricciones del ciudadano estadounidense. Más aún, la investigación concluyó que las compañías pidieron que, en su lugar, el trabajador presentase una Tarjeta de Residente Permanente, todo esto porque las compañías creían, por error, que el trabajador no era ciudadano de los EE. UU., incluso después de que el ciudadano había explicado que era ciudadano estadounidense y, por lo tanto, no era elegible para una Tarjeta de Residente Permanente. Asimismo, el Departamento determinó que estas solicitudes documentales llevaron al fin del empleo de dicho trabajador. La disposición antidiscriminatoria de la INA prohíbe que los empleadores pidan documentos adicionales o diferentes a los que sean necesarios para demostrar la autorización para trabajar con base en el estatus de ciudadanía del empleado o bien por su nacionalidad de origen. En su lugar, todo individuo con autorización para trabajar, independientemente de su estatus de ciudadanía o nacionalidad de origen, puede elegir los documentos válidos y legalmente aceptables que desea presentar para demostrar su elegibilidad para trabajar en los Estados Unidos.

«Los empleadores deben tratar a todos sus trabajadores de una manera justa y coherente con la ley, sin basar ninguna conclusión acerca de la ciudadanía de un trabajador en la apariencia o nacionalidad de origen hispana del trabajador», afirmó la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia, Kristen Clarke. «La División de Derechos Civiles se ha comprometido a garantizar que los lugares de trabajo estén libres de discriminación».

Conforme los términos del acuerdo conciliatorio, JP Senior Healthcare LLC y JP Senior Management pagará una sanción civil a los Estados Unidos; emitirá pagos retroactivos más intereses al trabajador afectado y capacitará a los empleados relevantes acerca de la disposición antidiscriminatoria de la INA.

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

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

 

A chiropractor and health-care products business owner was convicted yesterday by a jury in Salt Lake City, Utah, of attempting to evade the payment of his federal income taxes and corruptly endeavoring to impair the administration of the internal revenue laws.

According to the evidence presented at trial and other court documents, in March 2012, Louis Hansen, of Orem, presented a check to the IRS in the amount of $342,699.41 that was drawn on a closed bank account in a fraudulent attempt to pay taxes, penalties, and interest that he owed for a number of years. In June 2012, Hansen presented another 10 additional checks to the IRS drawn on a different closed bank account in a second attempt to fraudulently discharge his tax debt. Each of these 10 checks was in the amount of $425,000, and the evidence showed that they were sent to at least six different IRS offices.

U.S. District Judge Howard C. Nielsen Jr. scheduled Hansen’s sentencing for Nov. 4. Hansen faces a maximum sentence of five years in prison for tax evasion and three years in prison for corruptly impeding the internal revenue laws.

Acting U.S. Attorney Andrea T. Martinez for the District of Utah and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.

The case was investigated by IRS – Criminal Investigation. 

Assistant U.S. Attorney Kevin L. Sundwall  and Special Assistant U.S. Attorney Andrew Kameros  are prosecuting the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website. 

Today, the U.S. Department of Justice’s Office on Violence Against Women (OVW) announced the expansion of its Firearms Technical Assistance Project (FTAP) to help communities across the country reduce domestic violence homicides and injuries committed with firearms. OVW will award an estimated $6 million for up to 12 sites and $4 million for training and technical assistance on firearms and domestic violence.

“Enforcing gun laws and keeping firearms from the hands of perpetrators of domestic violence is crucial to keeping victims safe,” said OVW Acting Director Allison Randall. “The FTAP expansion is another example of the department’s commitment in its efforts to reduce violent crime. The funding will help our grantees develop and implement community-based and culturally specific strategies to enforce firearms laws and is an important part of preventing homicides.”

In 2019, OVW and the National Council of Juvenile and Family Court Judges launched FTAP, which was designed to help communities implement policies, protocols and promising practices to prevent abusers from having access to firearms in domestic violence cases. As part of the announcement, OVW released a solicitation to fund six new FTAP sites in addition to the six existing FTAP sites, which include: Birmingham, Alabama; Muscogee (Creek) Nation; Columbus, Ohio; Brooklyn, New York; the state of Vermont; and Spokane, Washington. The deadline for applications in Grants.Gov is Sept. 20, 2021, and the JustGrants deadline is Sept. 22, 2021. Applicants are strongly encouraged to submit a non-binding Letter of Intent by Sept. 7, 2021.

The FTAP expansion will provide direct financial support for all sites, as well as new technical assistance designed to help each site incorporate community partners, particularly partner organizations that center underserved populations, into their efforts to implement effective responses to firearms and domestic violence. Training and technical assistance projects will include $2 million to help the sites implement an effective firearms response. Of particular importance will be an additional $2 million to train and support the sites on the cultural context of domestic violence in underserved communities. Additionally, OVW will award $750,000 to continue a domestic violence and firearms national resource center.

This solicitation supports the Justice Department’s comprehensive strategy for reducing violent crime. Under federal law, individuals with domestic violence misdemeanor and felony convictions, as well as individuals subject to domestic violence protective orders, are prohibited from possessing firearms. The data shows that offenders with domestic violence in their past pose a high risk of homicide. In fact, domestic violence abusers with a gun in the home are five times more likely to kill their partners.

About the Office on Violence Against Women

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

A former Drug Enforcement Administration (DEA) Special Agent was sentenced today to 160 months in prison for nine crimes related to official misconduct, including perjury, obstruction of justice, and theft.

According to court documents, Chad Allan Scott, 53, of Covington, Louisiana, perjured himself and directed others to commit perjury to obtain a conviction against an alleged drug dealer. He also falsified forms so that he could take possession of a truck bought for him by a drug dealer. When he and two other law enforcement officers began to worry that they would be investigated, Scott and the others conspired to throw evidence of their wrongdoing into the swamps outside New Orleans. Scott also stole money and possessions from defendants his DEA group had arrested. Scott was found guilty in August 2019 and June 2021 after his case was severed into two separate federal trials by Federal District Court Judge Milazzo.

“Chad Scott wielded his police powers to victimize the very citizens he had sworn to serve and protect, eroding the community’s trust in law enforcement and undermining the rule of law,” said Principal Deputy Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “Today’s sentencing shows that law enforcement officers who betray the public’s trust will be held accountable and punished accordingly.”

“Chad Scott took an oath to serve his community with integrity, but rather than use his badge to protect his community, he used it to break the law,” said DEA Administrator Anne Milgram. “This goes against everything that the Drug Enforcement Administration stands for. Scott betrayed the very people he was entrusted to protect and today he is being held accountable for his crimes.”

“Corrupt officials who break the law and breach their oaths will be prosecuted and sent to prison, even if they come from within the ranks of federal law enforcement,” said Special Agent in Charge Douglas A. Williams Jr. of the FBI’s New Orleans Field Office. “Today’s sentencing demonstrates that Chad Scott will be held responsible and that no one is above the law. We thank our partners at DOJ, DEA-OPR, and DOJ-OIG for their strong partnership and unrelenting pursuit of justice.”

“While he was a law enforcement agent, Scott compromised cases and conspired to steal from the people he arrested,” said Special Agent in Charge Douglas B. Bruce of the Justice Department’s Office of the Inspector General (DOJ-OIG) Denver Field Office. “His actions were antithetical to the oath he swore to uphold. Now, he will rightly serve time for his many crimes.”

This case was initially investigated by the Louisiana State Police and later by the FBI, DEA Office of Professional Responsibility (OPR), and DOJ-OIG.

Assistant Deputy Chief Timothy A. Duree of the Justice Department’s Fraud Section and Trial Attorney Charles A. Miracle of the Justice Department’s Narcotic and Dangerous Drug Section prosecuted the case.

Today, Attorney General Merrick B. Garland and Associate Attorney General Vanita Gupta met with over 35 Chief Justices of state supreme courts to discuss the housing and eviction crisis confronting the country. The Attorney General thanked the Chief Justices for their work on the issue and highlighted the Associate Attorney General’s recent letter outlining steps that state courts could take to raise awareness of emergency rental assistance and to implement eviction diversion strategies in their jurisdictions. The Attorney General applauded the work in states like Michigan, where the State Supreme Court has issued an order requiring courts to stay eviction proceedings for up to 45 days to allow a tenant to apply for rental assistance. In Texas, the Supreme Court modified the notices that are sent to tenants who are sued for eviction to make sure they are aware of the benefits available to them. Simple steps like these can increase the chance that tenants can stay in their homes and help courts that are being deluged with eviction filings. 

The Attorney General also heard from the Chief Justices about the obstacles their courts face in combating the crisis and committed the Department of Justice to doing everything it can to support their efforts. He emphasized that the federal government has made funds available to state courts that are seeking to implement eviction diversion programs, including the $350 billion that the American Rescue Plan allocated to state and local governments and the $46.5 billion Emergency Rental Assistance Program. The President of the National Center for State Courts spoke to the Attorney General about the work the Center has done to support eviction diversion efforts, including creating a diagnostic tool that helps courts fashion diversion programs that best suit their jurisdiction.

The Attorney General asked the Associate Attorney General and Chief Justices to continue working together on this critical issue and to identify obstacles that the federal government can help address.

A federal grand jury in Kansas City, Missouri, returned a two-count indictment charging a Missouri man with hate crime and firearm violations for shooting a teenager with the intent to kill because of the victim’s sexual orientation.

According to court documents, Malachi Robinson, 25, is charged with violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, and with using a firearm during and in relation to a crime of violence. Robinson allegedly shot the victim with a 9mm handgun because of his sexual orientation, causing significant non-fatal injuries. 

If convicted, Robinson faces up to life in prison on the hate crime charge and a mandatory minimum 10 years in prison, consecutive to any other sentence, on the firearm charge. Robinson also faces a fine of up to $250,000 with respect to each charge.

The case is being investigated by the FBI’s Kansas City Field Office and the Kansas City Police Department. The case is being prosecuted by Assistant U.S. Attorney David Ketchmark of the Western District of Missouri and Trial Attorneys Shan Patel and Eric Peffley of the Justice Department’s Civil Rights Division.

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, Acting U.S. Attorney Teresa A. Moore for the Western District of Missouri and Acting Special Agent in Charge Michael Hensle of the FBI’s Kansas City Field Office made the announcement.

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

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

Today, the Justice Department’s Antitrust Division filed a comment in support of the Federal Reserve Board of Governors’ (Board) notice of proposed rulemaking on Debit Card Interchange Fees and Routing. The Board’s proposed rule would require banks that issue debit cards (“issuers”) to give merchants a choice of debit networks for transactions made online and in circumstances where consumers pay without physically presenting their debit cards. By introducing choice, the proposed rule has the potential to reduce merchants’ transactional costs and ultimately save consumers money.

“We commend the Board for its efforts to promote competition in this important part of the debit card industry by ensuring that smaller debit networks will have a greater ability to compete for merchants’ business,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “There is limited competition to process online and other card-not-present debit transactions — which in 2019 accounted for over $1 trillion in transaction value. Consistent with President Biden’s Executive Order on Promoting Competition in the American Economy, the department looks forward to working with the Board on this and other efforts to foster competition.”

Section 1075 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Durbin Amendment”) requires issuers to make available at least two independent debit networks on the cards they issue so that merchants have a choice of debit networks when processing debit transactions. But this requirement has not been effective for online and other card-not-present transactions because many large issuers have not implemented necessary technological changes to permit debit networks other than Visa and Mastercard to process transactions. The Board’s proposal would clarify that the Durbin Amendment’s two-debit-network requirement applies with equal force to such transactions.

The department supports the Board’s proposed rule because it has the potential to increase competition by lowering one of many barriers to entry and expansion that new or smaller competitors face in this important segment of the debit card industry. At the same time, the department encourages the Board to consider whether there may be ways to improve upon the proposal. Specifically, the Board should consider whether the proposal is drafted broadly enough to capture all card-not-present transactions. In addition, incumbent industry participants may attempt to circumvent the proposed rule. Accordingly, the department encourages the Board to actively assess additional ways the proposed rule may be enhanced to increase competition for debit payment processing.

The Board is responsible for prescribing regulations pursuant to the Durbin Amendment, a statute designed to promote competition in the debit card market.

Click here to view the comment on the proposed rule.

The Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the District of Massachusetts filed a lawsuit today alleging that Peter McCarthy, who operates a group of residential sober homes through his company, Steps to Solutions Inc., subjected female residents to sexual harassment and retaliation in violation of the federal Fair Housing Act.

The lawsuit alleges that from at least 2012 through at least 2019, Peter McCarthy — the registered agent and sole officer of Steps to Solutions Inc. — sexually harassed female residents of his Steps to Solutions sober homes by offering to reduce or forgive rent, granting extra house privileges or waiving security deposits in exchange for engaging in sexual acts; requesting sexually explicit photographs and indicating that he would reduce or waive rent in exchange for the images; making unwanted sexual comments regarding female residents’ bodies; and retaliating and taking adverse housing actions against residents who reported his conduct. The lawsuit seeks a court order to prevent future discriminatory conduct, monetary damages to compensate victims of McCarthy’s conduct and civil penalties. The lawsuit alleges that Steps to Solutions Inc. is liable for McCarthy’s conduct.

“The Fair Housing Act’s promise of non-discrimination applies to everyone,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “At a time when our country is experiencing record numbers of deaths related to drug overdoses, it is particularly disturbing to see sexually harassing conduct targeted at individuals who are in recovery. The Department of Justice will not tolerate landlords who abuse their power and will continue to vigorously pursue allegations of sexual harassment.”

“It is disappointing that a landlord who is supposed to be helping vulnerable women beat drug addiction was allegedly sexually harassing them and offering to reduce their rent in exchange for sex,” said Acting U.S. Attorney Nathaniel R. Mendell for the District of Massachusetts. “Thankfully, the Fair Housing Act gives us effective tools to stop such despicable conduct and protect those who are being preyed upon.  People who have experienced this kind of sexual harassment might be reluctant to report it, but we need to hear from them. Reporting sexual harassment is essential to stop and prevent sexual harassment.”

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 Justice Department has filed 22 lawsuits alleging sexual harassment in housing.

Individuals who have information about this case can contact the U.S. Attorney’s Office by calling (888) 221-6023 or by emailing USAMA.victimassistance@usdoj.gov.

The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals wishing to report discrimination in housing may call the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743, email the Justice Department at fairhousing@usdoj.gov or submit a report online. 

The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights. 

A federal judge sentenced a Florida nurse practitioner and a Florida woman to prison terms today in connection with their participation in a conspiracy to falsify data related to clinical drug trials. 

U.S. District Judge Jose E. Martinez of the Southern District of Florida sentenced Eduardo Navarro, 52, of Miami, to 46 months in prison, and Nayade Varona, 50, of Port St. Lucie, to 30 months in prison. The court also ordered the defendants to pay $2,134,503 in restitution. According to court documents, Navarro and Varona worked at a clinical research site called Tellus Clinical Research (Tellus). Navarro, a nurse practitioner, was a sub-investigator at Tellus, and Varona was an assistant study coordinator. As part of their plea agreements, Navarro and Varona admitted that they conspired with others to falsify data in connection with two clinical trials by, among other things, fabricating medical records to make it appear as though subjects were participating in the clinical trials when, in truth, they were not.

“By falsifying clinical trial data, the defendants undermined a crucial component of the drug approval process,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Justice Department will continue to work with its partners at the Food and Drug Administration to investigate and prosecute anyone who engages in this conduct.”

“Falsifying clinical trial data puts the public’s health at risk,” said Acting U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “Compromised clinical data jeopardizes the researchers’ ability to evaluate the safety and efficacy of new drugs. Prosecuting these cases will continue to be a top priority for our office.”

“The FDA will continue to thoroughly investigate and bring to justice those who try to undermine clinical trials, an important part of the agency’s regulatory review of new drugs,” said Assistant Commissioner for Criminal Investigations Catherine Hermsen of the Food and Drug Administration (FDA). “The agency will aggressively pursue violations that threaten the integrity of clinical trial data in order to protect the public’s access to safe and effective products.”

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

Trial Attorneys Lauren M. Elfner and Joshua D. Rothman of the Civil Division’s Consumer Protection Branch are prosecuting the case. The U.S. Attorney’s Office for the Southern District of Florida has provided critical assistance.

A federal grand jury in Newark, New Jersey, returned a superseding indictment today charging a Florida owner of multiple telemedicine companies with orchestrating a health care fraud and illegal kickback scheme that involved the submission of over $784 million in false and fraudulent claims to Medicare. This is one of the largest Medicare fraud schemes ever charged by the Justice Department. The superseding indictment also charges the defendant with concealing and disguising the proceeds of the scheme in order to avoid paying income taxes.  

Creaghan Harry, 53, of Highland Beach, Florida, is charged in the superseding indictment with one count of conspiracy to commit health care fraud and wire fraud, and four counts of income tax evasion. Harry previously was charged in an indictment along with co-conspirators Lester Stockett and Elliot Loewenstern with one count of conspiracy to defraud the United States and to pay and receive kickbacks, four counts of receipt of kickbacks, and one count of conspiracy to commit money laundering. Stockett and Loewenstern previously pleaded guilty. If convicted, Harry faces a maximum penalty of 20 years’ imprisonment for the conspiracy to commit health care fraud and wire fraud, five years’ imprisonment on each count of tax evasion, five years’ imprisonment for the conspiracy to defraud the United States and pay and receive kickbacks, 10 years’ imprisonment for each count of receipt of kickbacks, and 20 years’ imprisonment on the conspiracy to commit money laundering.  A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

According to allegations in the superseding indictment, Harry and his co-conspirators solicited illegal kickbacks and bribes from durable medical equipment (DME) suppliers and marketers in exchange for orders for DME braces and medications. Harry’s telemedicine companies then allegedly paid physicians to write medically unnecessary orders for these braces and medications. Harry’s telemedicine companies provided orders to DME suppliers that fraudulently billed Medicare over $784 million. Medicare ended up paying over $247 million. 

In order to conceal and disguise the health care fraud and illegal kickback scheme, the superseding indictment alleges, Harry directed DME suppliers and marketers not to directly pay his telemedicine companies and instead to pay shell companies that had been opened in the names of straw owners in the United States and foreign countries, such as the Dominican Republic. Harry then transferred the funds from the shell companies to his telemedicine companies in order to pay physicians to write the unnecessary orders.

The superseding indictment alleges that Harry falsely claimed to prospective investors, lawyers and others that his telemedicine companies had not received any kickbacks. Harry instead falsely represented that the telemedicine companies had been receiving revenue of “about $10 million per year” from fees paid by patients to receive telemedicine services, when in fact the revenue of the telemedicine companies was derived from illegal kickbacks and bribes.

The superseding indictment further alleges that Harry committed income tax evasion in the calendar years between 2015 and 2018 by receiving the proceeds of the illegal scheme in the accounts of shell companies belonging to nominee owners and using those proceeds to live a lavish lifestyle. Harry did not file an income tax return or pay taxes on this income. 

Assistant Attorney General Kenneth A. Polite of the Justice Department’s Criminal Division; Acting U.S. Attorney Rachael A. Honig for the District of New Jersey; Special Agent in Charge George M. Crouch of the FBI’s Newark Field Office; Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG); and Special Agent in Charge Michael Montanez of IRS-Criminal Investigations, Newark, made the announcement.

HHS-OIG, the FBI and IRS-Criminal Investigations are investigating the case.

Assistant Chief Jacob Foster of the Criminal Division’s Fraud Section’s National Rapid Response Strike Force and Trial Attorney Darren Halverson of the Newark Strike Force are prosecuting the case.

The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 federal districts, has charged more than 4,600 defendants who have collectively billed federal health care programs and private insurers for approximately $23 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers. 

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

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

A Pennsylvania man pleaded guilty yesterday to assisting in the preparation of false federal tax returns.

According to court documents, Jean Coq, of Philadelphia, prepared tax returns for clients for tax years 2013 and 2014 that claimed inflated itemized deductions and adjustments to income. As a result of these false items, Coq’s clients sought tax refunds to which they were not entitled. In total, Coq caused a tax loss to the IRS of $83,451.

Coq is scheduled to be sentenced on Nov. 10. He faces a maximum sentence of three years in prison on each count, 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 Acting U.S. Attorney Jennifer Arbittier Williams of the U.S. Attorney’s Office for the Eastern District of Pennsylvania made the announcement.

The IRS-Criminal Investigation investigated the case.

Trial Attorney Ann Marie Cherry of the Justice Department’s Tax Division and Assistant U.S. Attorney David J. Ignall of the U.S. Attorney’s Office for the Eastern District of Pennsylvania are prosecuting the case.

The Justice Department announced today that it finalized the settlement of a claim against Akal Security to protect rights guaranteed to a military reservist, Chief Petty Officer Robert M. Diaz (Ret.), by the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA).

Since 2005, Diaz has worked as a full-time Court Security Officer (CSO) at the Moakley Federal Courthouse in Boston. He also served our country as a member of the Coast Guard Reserve, and from October 2012 to September 2015 was on an active duty military deployment. Akal Security managed the CSO contract in 2012, at the time Diaz left for military service. When he returned from service, Diaz returned to his CSO job, but his pension was not credited with the time he would have worked as a CSO but for his military duty, as required by USERRA. In the settlement agreement announced today, Akal will compensate Diaz for the pension credits and benefits he lost during this period in service to the country.

“We are grateful to Mr. Diaz and the other men and women of our Armed Forces for the sacrifices they make in service to this country,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When our country calls servicemembers to duty, the Civil Rights Division will vigorously enforce the laws designed to protect them from discrimination in their civilian jobs, including ensuring that they receive proper pension benefits.”

“Our laws protect the civilian careers of the brave men and women who serve our country. The Department of Justice is committed to enforcing those laws when employers violate them,” said Acting U.S. Attorney Fred Federici for the District of New Mexico. “Members of the Reserves are often called away from their civilian jobs in order to provide the security upon which our nation depends. They should not have to fear losing their jobs or, as here, their pension benefits, when they answer that call.” 

USERRA protects the rights of uniformed servicemembers to retain their civilian employment following absences due to military service obligations, and provides that servicemembers shall not be discriminated against because of their military obligations. USERRA also requires pre-deployment employers to provide pension benefits when their employees are called to active duty. The Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.justice.gov/crt-military/employment-rights-userra and www.justice.gov/servicemembers as well as on the Department of Labor’s (DOL) website at www.dol.gov/vets/programs/userra.

This case stems from a referral by the U.S. Department of Labor, at Diaz’s request, after an investigation by the DOL’s Veterans’ Employment and Training Service. The case is being handled by Jeffrey Morrison in the Employment Litigation Section of the Department of Justice’s Civil Rights Division and Assistant U.S. Attorney Manuel Lucero in the U.S. Attorney’s Office for the District of New Mexico.

The United States has filed a complaint in the U.S. District Court for the Western District of Washington seeking to bar a Kent, Washington, tax return preparer from preparing federal tax returns for others. The parties have contemporaneously filed a joint motion for entry of a permanent injunction by consent.

The civil complaint filed against Soledad Rubio alleges that she owns and operates defendant GIG Universal Multi Servicios. According to the complaint, GIG Universal Multi Servicios prepared and filed thousands of federal tax returns from 2014 through 2019. The complaint alleges that Rubio prepared federal income tax returns that underreport tax due by fraudulently claiming fabricated and overstated itemized deductions, unreimbursed employee business expenses, Earned Income Tax Credits, Child Tax Credits and Additional Child Tax Credits.

According to the complaint, GIG prepared nearly 5,200 tax returns in aggregate for tax years 2016 and 2017 and of that total, Rubio prepared over 2,400 returns. The complaint alleges that the IRS interviewed certain customers of Rubio and GIG Universal Multi Servicios about their 2016 and 2017 tax returns and calculated, based on those interviews, that on average, returns prepared by GIG underreported tax due by $3,421 per return for those years. Of those, the complaint alleges, returns prepared specifically by Rubio on average underreported tax due by $3,055.

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

Return preparer fraud is one of the IRS’s’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a list of important reminders for taxpayers who are about to file their 2020 tax returns, including how to prepare for a smooth filing process.

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

A federal jury convicted the Sheriff of Franklin County, Arkansas today on two counts of deprivation of rights under color of law.

According to court documents and evidence presented at trial, Anthony Boen, 51, of Ozark, used unreasonable force to punish pretrial detainees on two separate occasions.  On Dec. 3, 2018, Boen struck a detainee multiple times in the head with a closed fist while the detainee was sitting on the floor and shackled to a bench inside the Franklin County Jail.  On Nov. 21, 2018, Boen slammed a detainee onto the floor and ripped his hair during an interrogation.  Both detainees suffered bodily injury as a result of Boen’s actions.

“The defendant abused his power as the top law enforcement officer in Franklin County, Arkansas, by assaulting people in his custody,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously prosecute officers who abuse their authority to make clear that no one is above the law.” 

“Anthony Boen swore an oath to support the United States Constitution and the State of Arkansas Constitution,” said Acting U.S. Attorney David Clay Fowlkes of the Western District of Arkansas.  “His actions clearly violated not only the civil rights of these individuals but also the trust of the people of Franklin County. Cases like this are very important to our office because they involve the most personal and basic of civil rights: the rights to be protected and unharmed while in the custody of law enforcement officers. Today’s guilty verdict shows that justice will prevail in cases where a person’s civil rights are violated. We will continue to vigorously pursue cases involving the violation of basic civil rights that should be afforded to everyone.”

“The vast majority of law enforcement officers in the United States steadfastly protect and serve their communities,” said Special Agent in Charge James Dawson of the FBI Little Rock Field Office. “When officers charged with enforcing the law break their oaths and violate the rights of others, they gravely injure the public’s trust in law enforcement. Our FBI office remains committed to upholding the public’s trust by investigating all allegations of civil rights violations throughout Arkansas.”

The FBI investigated the case.

Assistant U.S. Attorney Brandon T. Carter and Civil Rights Division Trial Attorney Michael J. Songer prosecuted the case.

Related court documents may be found on the Public Access to Electronic Records website at www.pacer.gov.

A California man pleaded guilty yesterday to rigging bids at public foreclosure auctions.

According to court documents filed in Sacramento, Yama Marifat was indicted for conspiring with other real estate investors to rig bids when purchasing selected properties at foreclosure auctions in San Joaquin County, California, beginning in or about April 2009 and continuing until in or about October 2009. Trial was scheduled to begin on August 17.

“Real estate investors who take advantage of the foreclosure process to line their own pockets will be held accountable,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “The defendant’s guilty plea is a testament to our persistence and the strong case built by the division’s talented prosecutors, paralegals and staff, along with our partners at the FBI.”

According to the one-count indictment, Marifat and his co-conspirators carried out the conspiracy by agreeing not to bid against each other on selected properties. Instead, they designated one co-conspirator to bid at the public auction, then held a second, private auction and made payoffs to one another.

“Real estate fraud had devastating impact on the regional economy during the previous recession,” said Special Agent in Charge Sean Ragan of the FBI’s Sacramento Field Office. “This case exemplifies the FBI’s commitment to working with our local, state and federal partners to identify and investigate crimes that impact the communities we serve to ensure no crime goes unpunished, and public trust in our financial and real estate systems is maintained.”

Marifat is the 11th individual to plead guilty in the investigation of fraud and bid rigging at real estate auctions in San Joaquin County. Including Marifat, the division’s efforts to prosecute bid rigging and fraud at real estate foreclosure auctions in regions across the country have resulted in charges against 140 individuals, including 124 guilty pleas and 12 individuals convicted at trial.  

A criminal violation of the Sherman Antitrust Act carries a maximum sentence of 10 years in prison and a $1 million criminal fine. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The Antitrust Division’s San Francisco Office is prosecuting the case, which was investigated with the assistance of the FBI’s Sacramento Field Office. Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.

A Bloomfield, Michigan, businessman, who operated a biodiesel fuel company, was sentenced to 30 months in prison today for filing a false income tax return.

Chandra Yarlagadda owned and operated Alpha Bioenergy LLC, formerly known as Naturol Bioenergy LLC, which purchased and sold biodiesel fuel. Under the Clean Air Act and related federal regulations, companies such as Alpha that exported biodiesel fuel were required to purchase and retire Renewable Identification Numbers (RINs) for any volume of renewable fuel they exported. The RINs are used by the Environmental Protection Agency to track compliance with its annual Clean Air Act standards.

According to court documents, Yarlagadda reported income and expenses associated with Alpha on Schedules C attached to his personal income tax returns. Yarlagadda admitted as part of his plea that on the Schedules C attached to his 2009, 2010, and 2011 tax returns, he substantially overstated expenses associated with the purchase of RINs. For these three years, Yarlagadda reported RIN expenses totaling more than $14.2 million, when, in fact, he was only entitled to claim approximately $80,000 in RIN expenses for those years. Yarlagadda admitted that if he had not claimed these false deductions, he would have owed an addition $2.3 million in federal income taxes.

In addition to the term of imprisonment, U.S. District Judge Gershwin A. Drain ordered Yarlagadda to serve one year of supervised release and pay restitution to the IRS in the amount of $3,285,303.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Saima S. Mohsin for the Eastern District of Michigan made the announcement.

IRS Criminal Investigation, the U.S. Environmental Protection Agency – Criminal Investigation Division, and U.S. Immigration and Customs Enforcement – Homeland Security Investigations, conducted the investigation.

Trial Attorneys Melissa S. Siskind and Sarah C. Ranney of the Tax Division prosecuted the case, and Assistant U.S. Attorney Stephen Hiyama of the Eastern District of Michigan provided substantial assistance in this matter.

Additional information about the Tax Division and its enforcement efforts can be found on the division’s website.   

The Justice Department announced today that it has reached an agreement to resolve a lawsuit alleging that Filomeno Hernandez, a property manager of residential apartment buildings near MacArthur Park in Los Angeles, violated the federal Fair Housing Act by sexually harassing female tenants since at least 2006.

Today’s settlement also resolves claims against Ramin Akhavan, Bonnie Brae Investments LLC and Westlake Property Services LLC, which managed or owned the rental properties where the harassment took place.

Under the consent decree, which still must be approved by the U.S. District Court for the Central District of California, defendants are required to pay a total of $105,000, which includes $100,000 in monetary damages to women who were harmed as a result of the sexual harassment, and a $5,000 civil penalty. The consent decree also bars future discrimination, prevents Hernandez from participating in the rental or management of residential properties in the future, requires that Hernandez vacate the premises and leave his post as on-site property manager, mandates Fair Housing Act training and requires extensive monitoring and reporting regarding property management activities and compliance with the terms of the consent decree.

The department’s lawsuit, filed in 2020, alleged that for more than a decade Hernandez subjected female tenants to harassment that included unwanted sexual touching, including sexual assault, frequent unwelcome sexual advances and comments, offers to reduce rent or excuse late or unpaid rent in exchange for sex and unannounced visits to the homes of female tenants without their consent to make sexual advances. The apartment buildings that Hernandez managed are located at 729 South Bonnie Brae Street and 720 Westlake Avenue in Los Angeles, near MacArthur Park.

“Sexual harassment of vulnerable tenants is an egregious violation of the Fair Housing Act,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “The Justice Department is committed to pursuing predatory landlords and property managers and to ensuring that no individual is subject to housing discrimination because of their sex.”

“The right to be free from sexual harassment in one’s own home is a vital federal civil right,” said Acting U.S. Attorney Tracy L. Wilkison for the Central District of California. “This settlement shows our commitment to vigorously enforcing federal civil rights laws and holding accountable those who discriminate against others in violation of the Fair Housing Act.”

The Justice Department enforces the federal Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. The 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 department’s 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 21 lawsuits alleging sexual harassment in housing and recovered over $3.9 million for victims of such harassment. 

Individuals may report sexual harassment in housing or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743, e-mailing the Justice Department at fairhousing@usdoj.gov, or submitting a report online. 

Individuals in the Central District of California also may file a complaint about housing discrimination or other civil rights violations with the Civil Rights Section, Civil Division of the U.S. Attorney’s Office by calling (213) 894-2879, emailing USACAC.CV-CivilRights@usdoj.gov or completing and submitting this form (English) (Spanish). 

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.

More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. More information about the Civil Rights Section, Civil Division of the United States Attorney’s Office for the Central District of California is available at https://www.justice.gov/usao-cdca/civil-division/civil-rights. View the Spanish translation of this press release here.

A federal court ordered a California company and its owner to stop distributing unapproved and misbranded drugs and adulterated animal drugs.

In a complaint filed in the U.S. District Court for the Southern District of California in December 2020 at the request of the U.S. Food and Drug Administration (FDA), the United States alleged that AMARC Enterprises Inc. and Albert Lee Sanchez Jr. sold and distributed products called “Poly-MVA” and “Poly-MVA for Pets” that defendants claimed could cure, mitigate, treat or prevent disease, including cancer. According to the complaint, the defendants’ Poly-MVA products are not generally recognized as safe and effective by qualified experts for the uses intended by the defendants in the products’ labelling. The complaint also alleged that the defendants intended for Poly-MVA to be administered intravenously.

AMARC and Sanchez agreed to be bound by a consent decree of permanent injunction. The order entered by the court permanently enjoins the defendants from violating the Federal Food, Drug, and Cosmetic Act (FDCA) and requires them, among other things, to cease distribution of their products unless and until they come into compliance with the FDCA.

“Companies that market products with unproven claims endanger the public health,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The court’s order ensures that the defendants uphold their obligation to comply with the law.”

“Marketing products that claim to cure, mitigate, treat or prevent cancer in both humans and animals without adequate scientific support poses serious safety risks to consumers and their pets,” said Judith McMeekin, FDA’s associate commissioner for regulatory affairs within the Office of Regulatory Affairs (ORA). “The unlawful distribution of these types of products is particularly concerning as they have the potential to derail consumers from seeking and receiving proper treatment from qualified health care providers. Despite previous warnings, AMARC Enterprises Inc. continued violating the law. The FDA will continue to take action to protect the American public when companies knowingly violate the law and put consumers or their pets at risk.”

The complaint alleged that the claims defendants made regarding Poly-MVA and Poly-MVA for Pets lacked support from published, adequate and well-controlled clinical studies. The complaint also asserted that, because Poly-MVA’s labelling did not include adequate directions for lay users, the product was misbranded. Additionally, the complaint alleged that Poly-MVA for Pets was an adulterated new animal drug because it lacked an approved application.

Trial Attorneys Sarah Williams and Shannon Pedersen of the Civil Division’s Consumer Protection Branch handled the case with the assistance of Associate Chief Counsel Jaclyn Martinez Resly of the FDA’s Office of Chief Counsel.

WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo para resolver una demanda que alega que Filomeno Hernández, un administrador de propiedades de edificios residenciales cerca del Parque MacArthur en Los Angeles, vulneró la ley federal de Vivienda Justa al acosar sexualmente a inquilinas desde al menos el 2006. El acuerdo de hoy también resuelve alegaciones contra Ramin Akhavan, Bonnie Brae Investments LLC y Westlake Property Services LLC, que administraron o que fueron dueños de las propiedades de alquiler donde sucedió el acoso.

Conforme al decreto por consentimiento, el cual todavía debe ser aprobado por el Tribunal Federal de Distrito para el Distrito Central de California, los demandados están obligados a pagar un total de $105,000, lo que incluye una indemnización económica de $100,000 para mujeres que fueron perjudicadas como resultado del acoso sexual y $5,000 por concepto de sanción civil. Asimismo, el decreto por consentimiento también prohíbe futura discriminación; prohíbe la futura participación de Hernández en el alquiler o la administración de propiedades residenciales; requiere que Hernández abandone los edificios y que renuncie a su puesto como administrador de propiedad in situ; exige capacitación sobre la ley de Vivienda Justa y requiere supervisión y declaración extensivas en lo que se refiere a las actividades de gestión de propiedades y cumplimiento con los términos del decreto por consentimiento.

Entablado en el año 2020, la demanda del Departamento alegó que a lo largo de más de una década, Hernández sometía a las inquilinas a acoso que incluía contacto sexual no deseado, lo que incluye la agresión sexual, insinuaciones y comentarios sexuales no deseados, ofertas para reducir el alquiler o perdonar pagos retrasados o el impago del alquiler a cambio de sexo y visitas sin previo aviso a las casas de inquilinas sin su consentimiento para realizar insinuaciones sexuales. Los edificios residenciales que Hernández administraba están ubicados en 729 South Bonnie Brae Street y 720 Westlake Avenue en Los Angeles, cerca del Parque MacArthur.

«El acoso sexual de inquilinas vulnerables es una violación indignante de la ley de Vivienda Justa», declaró Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El Departamento de Justicia se ha comprometido a perseguir a propietarios y administradores de propiedades depredadores y a garantizar que no se someta a nadie a la discriminación en la vivienda por motivos de su género.

«El derecho de una persona a vivir en su propia casa sin ser acosada sexualmente es un derecho civil federal fundamental», afirmó Tracy L. Wilkison, la Fiscal Federal Interina para el Distrito Central de California. «Este acuerdo demuestra nuestro compromiso con la aplicación de las leyes federales de derechos civiles y a hacer rendir cuentas a aquellos que discriminan a otros, en contra de la ley de Vivienda Justa».

El Departamento de Justicia hace cumplir la ley federal de Vivienda Justa, la cual prohíbe la discriminación en la vivienda por motivos de raza, color de piel, religión, origen nacional, género, discapacidad o situación familiar. La Iniciativa contra el Acoso Sexual en la Vivienda del Departamento está dirigida por la División de Derechos Civiles y cuenta con el apoyo de las Fiscalías Federales por todo el país. El objetivo de la iniciativa del Departamento es abordar y crear conciencia sobre el acoso sexual por parte de propietarios, gestores de propiedades, trabajadores de mantenimiento, prestamistas u otras personas que controlan la vivienda. Desde el lanzamiento de la Iniciativa en octubre del 2017, el Departamento de Justicia ha entablado 21 demandas que alegan acoso sexual en la vivienda y ha recuperado más de 3.9 millones de dólares para las víctimas de tal acoso.

Las personas pueden reportar incidentes de acoso sexual en la vivienda y otros tipos de discriminación en la vivienda llamando a la línea informativa del Departamento para discriminación en la vivienda llamando al 1-800-896-7743, enviando un correo electrónico a fairhousing@usdoj.gov o completando un informe en línea.

Individuos radicados en el Distrito Central de California también pueden presentar una queja acerca de discriminación en la vivienda o de otras vulneraciones de derechos civiles ante la Sección de Derechos Civiles, División Civil de la Fiscalía Federal por teléfono al (213) 894-2879, correo electrónico a USACAC.CV-CivilRights@usdoj.gov o rellenando y entregando este formulario (inglés) (español).

También se puede presentar una queja ante el Departamento de Vivienda y Desarrollo Urbano de los EE. UU. llamando al 1-800-669-9777 o rellenando un formulario de demanda en línea

Para más información acerca de la División de Derechos Civiles y las leyes que hace cumplir, vaya a https://www.justice.gov/crt-espanol. Para más información acerca de la Sección de Derechos Civiles de la División Civil de la Fiscalía de los Estados Unidos para el Distrito Central de California, vaya a https://www.justice.gov/usao-cdca/civil-division/civil-rights-espanol.

DENVER – Extraction Oil and Gas, Inc., an oil and gas company headquartered in Denver, has agreed to pay over $462,000 to resolve allegations that it drilled and operated three oil and gas wells where it removed minerals from federal public lands without permission. Extraction agreed to make this payment in addition to a $884,407 settlement it paid in February 2020 for another set of wells where it had similarly removed minerals from federal public lands without permission.

Oil and gas exploration companies may drill for oil, gas, or other minerals on federal lands managed by the Bureau of Land Management (“BLM”) only after first obtaining a federal mineral lease and permit to drill from BLM. Once companies obtain the proper lease and permit, they pay royalties, which are a percentage—typically 12.5%—of the value of the federal minerals they remove. Removing minerals without permission is considered trespassing.

The 2020 settlement covered twelve wells drilled in Weld County, Colorado. The United States contends that for eleven of these wells, Extraction’s trespass was willful. This willful trespass made Extraction liable to the United States for the full value of all minerals it removed from the trespassing wells, and Extraction was not permitted to reduce that payment with any offset for its costs of drilling and production.

The 2021 settlement covered three wells, also located in Weld County. The United States contends that for these wells, Extraction removed minerals without permission, but did not act willfully. This non-willful trespass made Extraction liable to the United States for the value of all minerals removed from the trespassing wells, but Extraction was permitted to offset its payment with a credit for its costs of drilling and production.

“Protecting public lands and resources is a priority for our office,” said Acting U.S. Attorney Matt Kirsch. “Oil and gas companies that do not follow the mineral leasing process before removing natural resources from federal lands are trespassing. We will continue to hold them liable for damages from that trespassing--in amounts up to the full value of the minerals they removed, not just royalties they would have owed had they first obtained a federal lease.” 

Ron Gonzales, Special Agent in Charge for the Department of the Interior, Office of Inspector General’s Energy Investigations Unit, stated, “This settlement is the result of the OIG, Department of Justice, Bureau of Land Management, and Office of the Solicitor working collaboratively and diligently to ensure minerals removed from federal ownership are properly accounted for on behalf of the American public.”

This case was handled by Assistant U.S. Attorney Andrea Wang.

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San Mateo County Medical Center and San Mateo County (collectively SMMC), located in California, have agreed to pay approximately  $11.4 million to resolve alleged violations of the False Claims Act for submitting or causing the submission of claims to Medicare for non-covered inpatient admissions.

Medicare reimburses only services that are reasonable and necessary for the diagnosis or treatment of illness or injury. The United States alleged that, from Jan. 1, 2013, through Feb. 28, 2017, SMMC admitted certain patients for whom inpatient care was not medically reasonable or necessary, including patients who were admitted for reasons other than medical status, including social reasons and lack of available alternative placements. SMMC billed Medicare for such patients despite SMMC’s knowledge that the costs for admitting them were not reimbursable by Medicare.

“Billing for non-covered hospital stays results in a misuse of federal dollars,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Today’s settlement demonstrates our continuing commitment to ensure that Medicare pays only for services that are eligible for reimbursement.”

“The financial viability of our Medicare program must be protected for current and future generations,” said Acting U.S. Attorney Stephanie M. Hinds for the Northern District of California. “Medical providers, such as SMMC, who seek to pass on the financial burden of their medically unnecessary hospital admissions to the federal government will be pursued, as today’s settlement reflects.”

“Our agency will continue to aggressively investigate health care providers who bill Medicare for medically unnecessary services. These unlawful actions divert funds for needed care,” said Special Agent in Charge Steven J. Ryan of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working with our law enforcement partners, we will continue to root out such schemes.”

In connection with the settlement, SMMC entered into a five-year Corporate Integrity Agreement (CIA) with HHS-OIG. The CIA requires SMMC to engage an independent review organization that will perform annual reviews of inpatient admissions that SMMC bills to federal health care programs.

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Felix Levy, a former employee of San Mateo County Medical Center. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. Levy v. San Mateo County and the San Mateo County Medical Center, C.A. No. 16-CV-5881 (N.D. Cal.). 

The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section; the U.S. Attorney’s Office for the Northern District of California; and HHS-OIG. 

The matter was handled by Trial Attorneys Danielle Sgro and Diana Cieslak and Assistant U.S. Attorneys Michael Pyle, Sharanya Sai Mohan and Jonathan Lee.

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

The Tennessee Department of Human Services (TDHS) has agreed to pay the United States $6,854,416 to resolve allegations that it violated the False Claims Act in its administration of the U.S. Department of Agriculture’s (USDA) Supplemental Nutrition Assistance Program (SNAP). Until 2008, SNAP was known as the Food Stamp Program. 

“The money allocated by Congress for the SNAP program funds critical USDA efforts to help families in need,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Justice Department will continue to protect public funds to ensure that they are used for their intended purposes.”

“It is shocking that Tennessee’s Department of Human Services, and so many other states’ agencies entrusted with feeding and caring for vulnerable and needy residents, would manipulate SNAP quality control data for their financial benefit,” said Acting U.S. Attorney Joseph H. Harrington for the Eastern District of Washington. “I am gratified, however, that Tennessee has stepped up, corrected its conduct, cooperated with our investigation and resolved its liability. I want to especially commend the outstanding work by the USDA’s Office of Inspector General’s special agents and auditors who enabled the United States to recover over $67 million in wrongfully obtained funds. This nationwide investigation and series of settlements demonstrate our office’s commitment to working with our law enforcement partners to ensure that that those who abuse SNAP and other critical government programs will be held fully accountable.” 

“We appreciate the commitment and investigative assistance provided by our partners at the Department of Justice’s Civil Division and the U.S. Attorney’s Office throughout this long-term, multi-state investigation,” said Special Agent-in-Charge Bethanne M. Dinkins of the USDA Office of Inspector General (OIG). “We also wish to note the technical assistance provided by our colleagues in the Office of Audit at OIG. During the investigation, conducted by OIG’s Northeast Regional Office, we worked together to address the concerns of employees of multiple states and others who alleged that the integrity of the SNAP quality control process was weakened by third-party consultants. These concerned individuals reported that cases were not being treated in a consistent manner, and that certain advice from consultants resulted in identified errors being diminished rather than used to improve eligibility determinations. The settlements reached to date send a strong message regarding the government’s commitment to work across agency lines to protect the integrity of SNAP.”

Under SNAP, USDA provides eligible low-income individuals and families with financial assistance to buy nutritious food. Since 2010, SNAP has served on average more than 45 million Americans per month and provided more than $71 billion annually. 

Although the federal government funds SNAP benefits, it relies on the states to determine whether applicants are eligible for benefits, to administer those benefits and to perform quality control to ensure that eligibility decisions are accurate. The USDA requires that the states’ quality control processes ensure that benefits are correctly awarded, are free from bias and accurately report states’ error rates in making eligibility decisions. 

The USDA reimburses states for a portion of their administrative expenses in administering SNAP, including expenses for providing quality control. It also pays performance bonuses to states that report the lowest and the most improved error rates each year, and can impose monetary sanctions on states with high error rates that do not show improvement. 

The settlement resolves allegations that beginning in 2012, TDHS contracted with a consultant known as Julie Osnes Consulting LLC (Osnes Consulting) to provide advice and recommendations designed to lower its SNAP quality control error rate. The United States alleged that Osnes Consulting’s recommendations, as implemented by TDHS, injected bias into TDHS’s quality control process and resulted in TDHS submitting false quality control data and information to USDA, for which it received performance bonuses for fiscal years 2013 and 2014 to which it was not entitled.   

This is the ninth settlement in this matter, and the eighth settlement with a state agency for manipulating its SNAP quality control findings. The United States has reached previous settlements with state agencies in Virginia, Wisconsin, Texas, Louisiana, Alaska, Florida and Mississippi, as well as with Osnes Consulting and its owner, Julie Osnes. Including this settlement, the United States has now recovered over $67 million in connection with this investigation.  

The settlement was a result of a joint investigation conducted by the USDA, Office of Inspector General, Investigations; the Civil Division’s Commercial Litigation Branch; and the U.S. Attorney’s Office for the Eastern District of Washington, with the assistance of USDA-OIG-Audit based on the results of its nationwide audit of SNAP quality control processes.

The matter was handled by Senior Trial Counsel Don Williamson of the Civil Division and Assistant U.S. Attorneys Dan Fruchter and Tyler Tornabene of the Eastern District of Washington.

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

The Department of Justice today filed criminal charges under the Clean Water Act against Summit Midstream Partners LLC, a North Dakota pipeline company that discharged 29 million gallons of produced water from its pipeline near Williston, North Dakota, over the course of nearly five months in 2014-2015.

The discharge of more than 700,000 barrels of “produced water” – a waste product of hydraulic fracturing – contaminated land, groundwater, and over 30 miles of tributaries of the Missouri River. The spill, believed to be the largest inland spill in history, was visible in photographs taken by satellites orbiting the earth.

In addition to the criminal charges, the United States and the State of North Dakota filed a civil complaint against Summit and a related company, Meadowlark Midstream Company LLC, alleging violations of the Clean Water Act and North Dakota water pollution control laws. Under parallel settlements resolving the criminal and civil cases, the company has agreed to pay a total of $35 million in criminal fines and civil penalties.

“Summit prioritized profits over the environment. The company’s disregard for pipeline safety resulted in pollution of the environment on a massive scale over 143 days,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Summit’s conduct was criminal and its failure to immediately report the discharge a felony.  This resolution holds the company financially accountable, requires enhanced compliance measures to prevent future spills, and provides compensation for North Dakota’s damaged natural resources.”    

“North Dakota and its federal partners are holding Summit and Meadowlark accountable and making clear that disregard for North Dakota’s environmental laws will not be tolerated,” said North Dakota Attorney General Wayne Stenehjem. “The North Dakota Department of Environmental Quality, Game and Fish Department, and Industrial Commission staff spent countless hours investigating and responding to the spill, making this settlement possible.”

If the court accepts the plea agreement, Summit will pay $15 million in federal criminal fines for negligently causing the continuous spill, failing to stop it and deliberately failing to make an immediate report as required.

“Summit’s negligence included the design, construction and operation of the Marmon Water Gathering System pipeline, as well as the negligent failure to find and stop the spill after learning of objective signs of a leak,” according to a factual admission signed by the company and filed in court. Summit started pipeline operations without meters at both ends of the pipeline to conduct “line balancing” or otherwise having a reliable leak detection system in place. “Even after the company learned of major drops in pressure and volume – objective signs of a leak – the company negligently continued operations and thus caused millions of additional gallons to be discharged into U.S. waters without learning the cause or pausing operations,” according to the Joint Factual Statement.

Summit has further admitted that it knowingly did not share all relevant information regarding the volume and duration of the spill and that its reports to federal and state authorities “were incomplete and misleading,” in papers filed in court. Summit eventually reported 70,000 barrels over a 10-day period despite an internal analysis showing the discharge was more than 700,000 barrels over 143 days. Under the terms of the proposed plea agreement, Summit will serve three years of probation in which comprehensive remedial measures are required.

Under the proposed civil settlement, Summit, Meadowlark, and a third related company, Summit Operating Services Company LLC, will pay $20 million in civil penalties, perform comprehensive injunctive relief, clean up the contamination caused by the spill and pay $1.25 million in natural resource damages to resolve the civil case. Summit has spent over $50 million to date to clean up the spill under state oversight; ongoing remediation efforts under the civil settlement are expected to continue over the next several years. The civil settlement further requires Summit and Meadowlark to take concrete steps to prevent future discharges, including stringent pipeline installation, operation, and testing requirements; a centralized computational pipeline monitoring system; spill response planning and countermeasures; an environmental management system; and data management and training measures. Independent third-party audits are required to ensure that certain injunctive measures are properly developed and implemented. These compliance measures were made a condition of Summit’s probation in the proposed criminal plea agreement. The companies have also agreed to enter into a related administrative settlement with the North Dakota Industrial Commission.     

Summit continued pumping produced water through the pipeline in 2014 to 2015 despite multiple warning signs that the line had ruptured:

• Aug. 17, 2014. Real-time pressure data collected by Summit showed a significant pressure drop, indicating a rupture had occurred.
• Oct. 14, 2014: Summit’s construction manager raised a concern about “extreme low pressure on the pipeline.” The facilities engineer responded: “Not good. We may want to consider shutting it down.” Summit continued to operate the line.
• Nov. 4, 2014: the third-party operator of the injection well at the end of the pipeline (Company A) informed Summit that 115,000 barrels (4,830,000 gallons) of produced water were missing for the month of October, which is approximately 3,700 barrels (155,400 gallons) per day.
• Dec. 3, 10, and 16, 2014: Company A followed up with Summit about the produced water discrepancy, having received no response to its previous inquiries. During this time, Company A confirmed the accuracy of its injection well meters and informed Summit that the discrepancy had risen to 4,900 barrels per day.
• Jan. 6, 2015: A Summit employee walked the line, finally identifying the rupture.

The resulting 700,000-barrel discharge of produced water contained crude oil, chloride, sodium, ammonia, aluminum, arsenic, boron, copper, nickel, selenium, zinc, barium, benzene and thallium, among other contaminants. Produced water is a waste product of oil extraction and can be toxic to plants, fish and other aquatic wildlife. It is also harmful to humans.

The designated federal trustee is the U.S. Department of the Interior’s Fish and Wildlife Service, and the designated state trustees are the North Dakota Department of Environmental Quality and the North Dakota Department of Game and Fish. A Draft Restoration Plan outlining the trustees’ restoration projects will be available at https://www.fws.gov/mountain-prairie/pressrel/archives/index.php and https://deq.nd.gov/EHSRulesRegs.aspx. The Draft Restoration Plan is subject to a 30-day public comment period. The civil settlement was lodged in the U.S. District Court for the District of North Dakota and is subject to a 30-day public comment period and final court approval. It will be available for viewing at www.justice.gov/enrd/consent-decrees.

The criminal case is being prosecuted by Senior Litigation Counsel Richard A. Udell, Senior Trial Attorney Christopher J. Costantini, Trial Attorneys Stephen J. Foster and Erica H. Pencak of the Environmental Crimes Section of the Department of Justice’s Environment and Natural Resource Division (ENRD), and Assistant U.S. Attorney Gary Delorme. The federal civil case is being handled by Senior Attorney Laura A. Thoms and Trial Attorney Devon A. Ahearn of the Environmental Enforcement Section of ENRD. The state civil case is being handled by Assistant Attorney General Margaret I. Olson of the North Dakota Office of Attorney General.

The criminal investigation was conducted by EPA’s Criminal Investigations Division. EPA’s Office of Enforcement and Compliance Assurance, EPA Region 8, the North Dakota Department of Environmental Quality, the North Dakota Industrial Commission, the U.S. Fish and Wildlife Service, the U.S. Department of Interior, and the North Dakota Department of Game and Fish provided assistance to both the criminal and civil investigations.

If you believe that you may be a victim of this criminal offense and would like to be kept apprised of this matter, then please contact the Environmental Crimes Victim Coordinator at (833)-676-1816.

 

The Justice Department announced today that it has repatriated an additional $452 million in misappropriated 1Malaysia Development Berhad (1MDB) funds to the people of Malaysia, bringing the total returned to over $1.2 billion.

According to court documents, the funds from 1MDB, formerly Malaysia’s investment development fund, were laundered through major financial institutions worldwide, including in the United States, Switzerland, Singapore, and Luxembourg.

Beginning in 2016, a landmark effort encompassing 41 civil forfeiture actions filed in the U.S. District Court for the Central District of California and one in the U.S. District Court for the District of Columbia by the Money Laundering and Asset Recovery Section (MLARS) of the Justice Department’s Criminal Division led to the seizure of over $1.7 billion in stolen assets. This is the largest recovery to date under the Department’s Kleptocracy Asset Recovery Initiative. The funds include both funds finally forfeited and funds the Department assisted in recovering and returning. The Department continues to litigate actions against additional assets allegedly linked to this scheme.

As alleged in the civil forfeiture complaints, from 2009 through 2015, more than $4.5 billion in funds belonging to 1MDB were allegedly misappropriated by high-level officials of 1MDB and their associates, and Low Taek Jho (aka Jho Low), through a criminal scheme involving international money laundering and embezzlement. Some of the embezzlement proceeds were also allegedly used to pay bribes.

1MDB was created by the government of Malaysia to promote economic development in Malaysia through global partnerships and foreign direct investment. Its funds were intended to be used for improving the well-being of the Malaysian people. Instead, funds held by 1MDB and proceeds of bonds issued for and on behalf of 1MDB were taken and spent on a wide variety of extravagant items, including luxury homes and properties in Beverly Hills, New York, and London; a 300-foot superyacht; and fine art by Monet and Van Gogh. The funds also were sent into numerous business investments, including a boutique hotel in Beverly Hills, a movie production company that made “The Wolf of Wall Street” while the embezzlement scheme was ongoing, the redevelopment of the Park Lane Hotel in Manhattan, and shares in EMI, the largest private music-rights holder. As alleged, other funds were provided to various public officials and co-conspirators.

The FBI’s International Corruption Squads in New York and Los Angeles and IRS-Criminal Investigation are leading the investigation.

MLARS Trial Attorneys Barbara Levy, Josh Sohn and Jonathon Baum are litigating the case. Assistant U.S. Attorney Jonathon Galatzan and Chief of the Asset Forefeiture Section Steven R. Welk of the Central District of California worked as MLARS partners, along with former MLARS Deputy Chief Woo S. Lee, Trial Attorney Kyle Freeny, and former Assistant U.S. Attorneys John Kucera and Michael Sew Hoy.

The Criminal Division’s Office of International Affairs is providing substantial assistance. MLARS’ Program Operations Unit has also provided significant support.   

Significant assistance was also provided to the department by the Attorney General’s Chambers of Malaysia, the Royal Malaysian Police, the Malaysian Anti-Corruption Commission, the Attorney General’s Chambers of Singapore, the Singapore Police Force–Commercial Affairs Division, the Office of the Attorney General and the Federal Office of Justice of Switzerland, the judicial investigating authority of the Grand Duchy of Luxembourg, and the Criminal Investigation Department of the Grand-Ducal Police of Luxembourg.

The Kleptocracy Asset Recovery Initiative is led by a team of dedicated MLARS prosecutors in partnership with federal law enforcement agencies, and often with U.S. Attorneys’ Offices, to forfeit the proceeds of foreign official corruption and, where appropriate, to seize, forfeit and repatriate those recovered assets to benefit the people harmed by these acts of corruption and abuse of office. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should email kleptocracy@usdoj.gov or submit information at https://tips.fbi.gov/.               

A civil forfeiture complaint is merely an allegation that money or property was involved in or represents the proceeds of crime. These allegations are not proven until a court awards judgment in favor of the United States, which has occurred in the cases that have led to these recoveries.

Attorney General Merrick B. Garland and Assistant Attorney General Kristen Clarke for the Civil Rights Division announced today that the Justice Department has opened a pattern or practice investigation into the City of Phoenix and the Phoenix Police Department (PhxPD). 

This investigation will assess all types of use of force by PhxPD officers, including deadly force. The investigation will also seek to determine whether PhxPD engages in retaliatory activity against people for conduct protected by the First Amendment; whether PhxPD engages in discriminatory policing; and whether PhxPD unlawfully seizes or disposes of the belongings of individuals experiencing homelessness. In addition, the investigation will assess the City and PhxPD’s systems and practices for responding to people with disabilities. The investigation will include a comprehensive review of PhxPD policies, training, supervision, and force investigations, as well as PhxPD’s systems of accountability, including misconduct complaint intake, investigation, review, disposition, and discipline.

Department of Justice officials informed Phoenix Mayor Kate Gallego, PhxPD Chief Jeri Williams, and other City officials of the investigation. As part of this investigation, the Department of Justice will reach out to community groups and members of the public to learn about their experiences with PhxPD.

“When we conduct pattern or practice investigations to determine whether the Constitution or federal law has been violated, our aim is to promote transparency and accountability,” said Attorney General Merrick Garland. “This increases public trust, which in turn increases public safety. We know that law enforcement shares these goals.”

“One of the highest priorities of the Civil Rights Division is to ensure that every person in this country benefits from policing that is lawful, effective, transparent, and free from discrimination,” said Assistant Attorney General Kristen Clarke. “Police officers across the country must use their authority in a manner that adheres to the Constitution, complies with federal civil rights laws and respects human dignity.” 

The investigation is being conducted pursuant to the Violent Crime Control and Law Enforcement Act of 1994, which prohibits state and local governments from engaging in a pattern or practice of conduct by law enforcement officers that deprives individuals of rights protected by the Constitution or federal law. The statute allows the Department of Justice to remedy such misconduct through civil litigation. This is the seventy-third investigation of a law enforcement agency conducted pursuant to this statute since it was enacted in 1994. The department will be assessing law enforcement practices under the First, Fourth, and Fourteenth Amendments to the United States Constitution, as well as under the Safe Streets Act of 1968; Title VI of the Civil Rights Act of 1964; and Title II of the Americans with Disabilities Act.

The Special Litigation Section of the Department of Justice Civil Rights Division, in Washington, D.C., will conduct this investigation. Individuals with relevant information are encouraged to contact the Department of Justice via email at Phoenix.Community@usdoj.gov or by toll free phone at (866) 432-0335. Individuals can also report civil rights violations regarding this or other matters using the Civil Rights Division’s new reporting portal, available at https://civilrights.justice.gov/.

Information specific to the Civil Rights Division’s Police Reform Work can be found here: . View the Spanish translation of this press release here.

A federal jury convicted two men for engaging in a multi-year fraud scheme to manipulate U.S. commodities markets for publicly traded precious metals futures contracts.

According to court documents and evidence presented at trial, Edward Bases, 59, of New Canaan, Connecticut, a former senior trader employed at Deutsche Bank and Bank of America in New York, and John Pacilio, 57, of New York, New York, a former senior trader employed at Bank of America and Morgan Stanley in New York, fraudulently pushed market prices up or down by routinely placing large “spoof” orders in the precious metals futures markets that they did not intend to fill. Bases and Pacilio did so in order to manipulate prices for their own gain and the banks’ gain, and to defraud other traders on the Commodity Exchange Inc. (COMEX) and the New York Mercantile Exchange Inc. (NYMEX), both of which are exchanges run by the CME Group Inc. (CME).

“These defendants undermined public confidence in U.S. commodities markets by manipulating prices to create the false appearance of supply and demand,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “This verdict shows that the Department of Justice is committed to holding accountable those who line their pockets by manipulating our financial markets through fraud.”

Court documents and witness testimony also showed that Bases and Pacilio taught other traders how to engage in the practice of spoofing, which involves placing orders on the exchange that, at the time they were placed, were not intended to be executed. For example, electronic chat messages introduced as evidence during trial demonstrated that, while he was placing deceptive trades, Bases stated, “that does show you how easy it is to manipulate it sometimes . . . I know how to ‘game’ this stuff.” Evidence introduced at trial also included electronic chat messages from Pacilio stating, “I just put in 500 lots to spoof the gold,” and “if you spoof this it really moves.”

“Illegally moving market prices in a direction that suits individual interests is a quick way to lose investor confidence and rack up federal criminal charges,” said Acting Assistant Director in Charge Jacqueline Maguire of the FBI’s New York Field Office. “The FBI will continue to pursue those who manipulate our financial markets.”

As a result of Bases’s and Pacilio’s scheme, other market participants, some of whom testified at trial, were induced to trade at prices, quantities, and times that they otherwise would not have traded. Bases and Pacilio engaged in this conduct despite having received and been trained on bank policies prohibiting fraud and deceptive trading practices.

Bases was convicted of conspiracy to commit wire fraud affecting a financial institution and wire fraud affecting a financial institution. Pacilio was convicted of conspiracy to commit wire fraud affecting a financial institution, wire fraud affecting a financial institution, and commodities fraud. Conspiracy to commit wire fraud and wire fraud affecting a financial institution carry a maximum sentence of 30 years’ imprisonment per count. Commodities fraud carries a maximum sentence of 25 years’ imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Principal Assistant Chief Avi Perry and Trial Attorneys Scott Armstrong and John Liolos of the Criminal Division’s Fraud Section are prosecuting the case. The FBI’s New York Field Office investigated this case.

The Criminal Division’s Fraud Section plays a pivotal role in the Justice Department’s fight against white collar crime around the country, and its Market Integrity & Major Frauds Unit is the national leader in prosecuting fraud and manipulation in the U.S. commodity markets.

A federal jury convicted five former officers and employees of Banc-Serv Partners LLP (Banc-Serv) — a lending service provider — in a 13-year conspiracy to defraud the Small Business Administration (SBA) in connection with its programs to guarantee loans made to small businesses.  

According to the evidence presented at trial, the defendants — Kerri Agee, 46, of Noblesville, Indiana, former president, chief executive officer and founder of Banc-Serv; Kelly Isley, 40, of Westfield, Indiana, Banc-Serv’s former chief operating officer; Nicole Smith, 44, of Indianapolis, Indiana, a former Banc-Serv employee; Chad Griffin, 48, of Carmel, Indiana, Banc-Serv’s former chief marketing officer; and Matthew Smith, 52, of Westfield, Indiana, Banc-Serv’s co-founder and a former director of a lending institution that originated loans with Banc-Serv — fraudulently obtained SBA-guaranteed loans on behalf of their clients, knowing that the loans did not meet SBA’s guidelines and requirements for the guarantees. The evidence at trial proved that from approximately 2004 until October 2017, the defendants helped originate SBA loans on behalf of various financial institutions and other lenders and, on multiple occasions, fraudulently obtained guarantees for loans that the SBA had deemed ineligible. They did so by, among other things, knowingly misrepresenting what the loans would be used for and unlawfully diverting previously denied loan applications into expedited approval channels at the SBA. When the fraudulently guaranteed loans defaulted, the defendants caused the submission of the reimbursement requests to the SBA to purchase the defaulted loans from investors and lending institutions, thereby shifting some of the losses on the ineligible loans to the SBA.

The fraudulent loans presented at trial totaled approximately $5 million in guaranteed disbursements, which were not eligible for SBA guarantees.

Agee was convicted of one count of conspiracy to commit wire fraud affecting a financial institution and four counts of wire fraud affecting a financial institution. Isley was convicted of one count of conspiracy to commit wire fraud affecting a financial institution and two counts of wire fraud affecting a financial institution. Nicole Smith was convicted of one count of conspiracy to commit wire fraud affecting a financial institution and two counts of wire fraud affecting a financial institution. Griffin was convicted of one count of conspiracy to commit wire fraud affecting a financial institution. Matthew Smith was convicted of one count of conspiracy to commit wire fraud.

The defendants convicted of conspiracy or fraud affecting a financial institution face a maximum sentence of 30 years in prison per count. The charge of conspiracy to commit wire fraud carries a maximum sentence of 20 years. A federal district court judge will determine any sentence for each of these defendants 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; Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG); Special Agent in Charge Paul Keenan of the FBI Indianapolis Field Office; and Inspector General Hannibal “Mike” Ware of the Small Business Administration Office of Inspector General (SBA-OIG) made the announcement.

The FDIC-OIG, the FBI and the SBA-OIG investigated the case. This case is being prosecuted by Assistant Chief William E. Johnston and Trial Attorney Vasanth Sridharan of the Criminal Division’s Fraud Section. Trial Attorney Brandon Burkart provided significant assistance. The Department of Housing and Urban Development Office of Inspector General also assisted in the investigation.

The Criminal Division’s Fraud Section plays a pivotal role in the Justice Department’s fight against white collar crime around the country.

El Fiscal General Merrick B. Garland y la Fiscal General Auxiliar de la División de Derechos Civiles, Kristen Clarke, anunciaron hoy que el Departamento de Justicia ha iniciado una investigación de patrones y prácticas de la Ciudad de Phoenix y la Policía de Phoenix (PhxPD).

La investigación evaluará todos los tipos de uso de fuerza por parte de agentes de la PhxPD, incluyendo la fuerza letal. La investigación también intentará determinar si la PhxPD toma represalias contra personas por conductas protegidas por la Primera Enmienda; si la vigilancia policial de la PhxPD es discriminatoria o si la PhxPD, de una forma ilegal, decomisa o se deshace de pertenencias de personas desamparadas. Asimismo, la investigación evaluará los sistemas y las prácticas de la Ciudad y de la PhxPD para responder a personas con discapacidades. La investigación incluirá una revisión integral de las políticas, capacitación, supervisión e investigaciones de fuerza de la PhxPD, así como sus sistemas de rendición de cuentas, lo que incluye la recepción, investigación, revisión, resolución y disciplina en lo que se refiere a demandas por mala conducta.

Funcionarios del Departamento de Justicia informaron a la Alcalde de Phoenix Kate Gallego, el Jefe de la PhxPD Jeri Williams y otros oficiales municipales de la investigación. Como parte de esta investigación, el Departamento de Justicia se comunicará con grupos comunitarios y miembros del público para aprender más sobre sus experiencias con la PhxPD.

«Cuando realizamos investigaciones de patrones y prácticas para determinar si se ha vulnerado la Constitución o una ley federal, nuestro objetivo es la promoción de transparencia y responsabilidad», afirmó el Fiscal General Merrick Garland. «Eso aumenta el nivel de confianza pública, lo que en cambio mejora la seguridad pública. Nosotros sabemos que las autoridades policiales comparten estas metas».

«Una de las prioridades principales de la División de Derechos Civiles es garantizar que cada persona en este país se beneficie de una vigilancia policial legal, eficaz, transparente y libre de discriminación», comentó Kristen Clarke, la Fiscal General Auxiliar. «Oficiales de policía por todo el país deben usar su autoridad de una manera que se adhiera a la Constitución, que cumpla con las leyes de derechos civiles federales y que respeta la dignidad humana». 

La investigación se está desarrollando en virtud de la ley de Control de Delitos Violentos y Aplicación de la Ley de 1994, la cual prohíbe que los gobiernos estatales y locales incurran en un patrón o una práctica de conducta por parte de oficiales de policía que prive a individuos de sus derechos protegidos en la Constitución o las leyes federales. Por otra parte, la ley permite al Departamento de Justicia a corregir tal mala conducta mediante litigios civiles. Esta representa la 73º investigación de una agencia policíaca que se ha llevado a cabo al amparo de esta ley desde su promulgación en 1994. El Departamento también evaluará las prácticas de aplicación de la ley en virtud de la Primera, Cuarta y Decimocuarto Enmiendas a la Constitución de los Estados Unidos, así como al amparo de la ley de Calles Seguras de 1968; el Título VI de la ley de Derechos Civiles de 1964; y el Título II de la ley de Estadounidenses con Discapacidades.

La Sección de Litigios Especiales de la División de Derechos Civiles del Departamento de Justicia, en Washington, D.C., llevará a cabo esta investigación. Se anima a cualquiera que tenga información relevante a comunicarse con el Departamento de Justicia por correo electrónico a Phoenix.Community@usdoj.gov o por teléfono a la siguiente línea gratuita: (866) 432-0335. También se puede informarnos de vulneraciones de derechos civiles en conexión con este u otros casos usando el nuevo portal para denuncias en civilrights.justice.gov.

Para información específica sobre el trabajo de reformación policíaca de la División de Derechos Civiles, vaya a: /media/872116/dl?inline.

This week, Deputy Attorney General (DAG) Lisa O. Monaco traveled to New Jersey and New York to highlight the Justice Department’s comprehensive strategy to reduce violent crime through a combination of enforcement as well as meaningful community engagement to prevent and deter crime before it happens.

In New Jersey, DAG Monaco visited the U.S. Attorney’s Office and attended a National Night Out event. At the U.S. Attorney’s Office, the DAG met with Acting U.S. Attorney Rachael Honig and the leadership of the office along with federal law enforcement leaders from the FBI, DEA and ATF. On Tuesday evening, DAG Monaco attended Newark, New Jersey’s annual National Night Out (NNO) event hosted by the Newark Public Safety Department where she had the opportunity to meet with local law enforcement officers, community leaders and Newark residents. The goal of NNO, a nation-wide campaign, is to connect law enforcement and neighbors in a positive setting. At the Newark NNO, the DAG heard directly from residents and law enforcement about community-led efforts to prevent violent crime and to build trust between law enforcement and the communities they serve.

Today, DAG Monaco participated in a press conference at the U.S. Attorney’s Office for the Southern District of New York to highlight the Department’s efforts to go after and dismantle illegal gun trafficking networks. The U.S. Attorney’s Office announced the unsealing of charges against several defendants for their involvement in an illegal scheme to traffic guns from Georgia for resale to residents of New York. While the charges are a result of an investigation that predates last month’s launch by the Department of gun trafficking Strike Forces, the case exemplifies the type of coordinated, multi-jurisdictional efforts needed to combat violent crime. Alongside U.S. Attorney Audrey Strauss, ATF Special Agent in Charge John B. DeVito, and New York Police Department Inspector Brian Gil, DAG Monaco spoke of the Department’s efforts to reduce violent crime and the gun violence that is often at the core of the problem.

Following the press conference, DAG Monaco participated in a meeting of the newly launched New York area gun trafficking strike force to discuss joint efforts to target and dismantle gun trafficking networks funneling firearms into the New York area. Participants in the meeting included: the U.S. Attorneys from the Southern and Eastern Districts of New York, the District of New Jersey, the Northern District of Georgia, the Eastern District of Virginia and the District of South Carolina and executives of the ATF, DEA, FBI, U.S. Marshals Service, as well as the New York Police Department. The conversation centered around what the Department’s firearms trafficking strike force is seeing along known trafficking corridors to the New York City region and how to best combat violent crime overall.

Immediately following the strike force meeting, DAG Monaco, U.S. Attorney Strauss, Acting U.S. Attorney Kasulis for the Eastern District of New York, and SAC DeVito visited the High Intensity Drug Trafficking Area (HIDTA) facility, which houses ATF’s Crime Gun Intelligence Center (CGIC) – an innovative partnership of federal, state and local law enforcement that fuses ATF’s crime gun intelligence with local law enforcement data to combat gun violence. There, DAG Monaco received a briefing on the CGIC’s efforts to trace firearms and ballistics from crime scenes to identify sources of illegal firearms and to identify illegal firearm trafficking corridors. This is the next step in the firearms tracing process that she was briefed on when visiting the ATF’s Mobile Crime Command Center in Washington, D.C., in late July.

“The partnership here at the CGIC, bringing our collective expertise and an all-hands-on-deck approach is what it’s going to take to solve this problem, along with creative and innovative thinking, which is all happening here,” DAG Monaco told members of the CGIC. “I applaud you all for bringing your teams together to one collaborative space to go after the sources of gun violence.”

While she was in New York, the DAG also visited the Metropolitan Correctional Center in Manhattan to get a first-hand look at its operations and infrastructure given ongoing concerns. She plans to have further meetings about the facility after her return to Washington.

Dalton Kurtz, 31, an officer with the Muncie Police Department (MPD), in Muncie, Indiana, pleaded guilty today to one count of misprision of felony, for concealing and failing to report a fellow officer’s inappropriate use of force.

According to court documents and admissions Kurtz made during the hearing, on June 5, 2018, Kurtz responded to a call involving three juveniles who had fled from officers after crashing a vehicle into a building. Kurtz and another MPD officer, Officer Chase Winkle, chased after one of the juveniles on foot and found him lying face down in a yard, with his arms extended in front of him. While the juvenile was lying with his hands visible and outstretched in front of him, Officer Winkle ran toward the juvenile and kicked him in the head without justification. Kurtz knew that Officer Winkle’s actions constituted a felony, but failed to notify anyone of the crime, and instead took the affirmative step of concealing his knowledge of this felony by writing a false report about the incident.

Kurtz faces a maximum penalty of three years in prison for this offense.

Chase Winkle was previously charged, along with other officers, with civil rights and obstruction offenses. He has pleaded not guilty and is scheduled for trial in January 2022.

The FBI conducted the investigation. Trial Attorneys Mary J. Hahn and Katherine G. DeVar of the Civil Rights Division and Assistant U.S. Attorney Nick Linder are prosecuting the case.

A former officer of the Louisville Metro Police Department pleaded guilty today to using unreasonable force against an arrestee.

According to court documents, former officer Cory P. Evans, 33, of Sellersburg, Indiana, was arraigned and pleaded guilty to striking an individual in the back of the head with a riot stick while the individual was kneeling with his hands in the air, surrendering for arrest.

During the plea hearing in federal court, Evans admitted that on May 31, while he was working as a part of the Louisville Metro Police Department Special Response Team, he followed a group of individuals around downtown Louisville to execute arrests for unlawful assembly and violations of curfew. Around the intersection of Brook and Broadway, the victim surrendered for arrest by getting on his knees and placing his hands in the air. While the victim was kneeling in this position, the defendant struck the victim in the back of the head with a riot stick, which created a wound on the back of the victim’s head. The victim fell forward and was taken into custody by other officers. 

“One of our most cherished fundamental rights in the United States is the right to peacefully protest against the government,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “An officer’s use of excessive force to interfere with the right to protest is particularly damaging to our democracy, and the Department of Justice will continue to investigate and prosecute these cases to the fullest extent of the law.”

“I commend the FBI and LMPD’s Public Integrity Unit for their outstanding work in this case,” said Acting U.S. Attorney Michael A. Bennett for the Western District of Kentucky.  “The effort put forth by the assigned agents, detectives, and prosecutors was crucial to the successful prosecution of the case.  In addition, the work of those assigned to a case such as this fosters confidence in the system and promotes trust between our citizens and the officers who are sworn to protect them.” 

“While the vast majority of law enforcement officers are hardworking professionals who work conscientiously to protect the public, Cory Evans was simply not one of those officers,” said Acting Special Agent in Charge Edward J. Gray of the FBI’s Louisville Field Office. “Every citizen has the right to expect law enforcement officers to act in accordance with the laws they have sworn to uphold. We entrust law enforcement officers with great power and authority, which we, as a community, expect them to wield with the utmost integrity. This case provides another example that abusing that power and authority will not be tolerated in Louisville.”

The crime Evans pleaded guilty to carries a maximum sentence of ten years imprisonment and a $250,000 fine. Evans is scheduled to be sentenced on Nov. 23.

The FBI and the Louisville Metro Police Department’s Public Integrity Unit jointly investigated the case through the Louisville Public Corruption Civil Rights Task Force.

Assistant U.S. Attorney Amanda E. Gregory and Civil Rights Trial Attorney Timothy Visser are prosecuting the case.

The Departments of Justice and the Interior today announced next steps in the implementation of the Not Invisible Act, including the publication of a solicitation for nominations of non-federal members to join a Joint Commission on reducing violent crime against American Indians and Alaska Natives to address the long-standing missing and murdered indigenous persons crisis. The agencies are also moving forward with nation-to-nation conduct consultations with Tribal leaders related to the Commission and implementation of the Act. 

The Not Invisible Act, sponsored by Secretary Deb Haaland when she served in Congress, mandates the creation of a commission that includes representatives of Tribal, state, and local law enforcement; Tribal judges; health care and mental health practitioners with experience working with Indian survivors of trafficking and sexual assault; urban Indian organizations focused on violence against women and children; Indian survivors of human trafficking; and family members of missing and murdered Indian people. 

“The Justice Department is committed to working with the Interior Department to address the persistent violence endured by Native American families and communities across the country,” said Attorney General Merrick B. Garland. “The membership of this joint commission must represent a diverse range of expertise, experience and perspectives, and we will consult with Tribal leaders who know best what their communities need to make them safer.” 

“The Interior and Justice Departments have a unique opportunity to marshal our resources to finally address the crisis of violence against Indigenous peoples,” said Secretary Haaland. “Doing this successfully means seeking active and ongoing engagement from experts both inside and outside of the government. Incorporating Indigenous knowledge, Tribal consultation and a commission that reflects members who know first-hand the needs of their people will be critical as we address this epidemic in Native American and Alaska Native communities.” 

Congress unanimously passed the Not Invisible Act in October 2020 to increase intergovernmental coordination to identify and combat violent crime against Indians and on Indian lands. The Act calls for the Interior Department to coordinate prevention efforts, grants, and programs related to missing and murdered Indigenous peoples.  

The commission must be composed of at least 28 federal and non-federal members who represent diverse experiences, backgrounds and geography, and who are able to provide balanced points of view with regard to the duties of the commission. The commission will hold hearings, take testimony and receive evidence in order to develop recommendations for the federal government to combat violent crime against Indians and within Indian lands.   

More information is available at the Bureau of Indian Affairs’ Not Invisible Act website.  

The Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Western District of Oklahoma have reached a $1.25 million agreement with defendants Rosemarie Pelfrey, Omega Enterprises LLC and Pelfrey Investment Company Inc. to resolve a Fair Housing Act lawsuit alleging that their agent, Walter Ray Pelfrey (Pelfrey), sexually harassed female tenants and prospective tenants while owning or managing dozens of Oklahoma City – area rental properties. Pelfrey died in 2018.

Under the terms of the consent order, which was approved this week by the United States District Court for the Western District of Oklahoma, the defendants will pay $1.2 million in damages to female tenants and prospective tenants harmed by Pelfrey’s harassment and a $50,000 civil penalty to the United States.

“This settlement, which came after protracted litigation, sends a clear message that the Justice Department will not tolerate sexual harassment,” said Assistant Attorney General Kristen Clarke of the Civil Rights Division. “No one should ever have to endure what the women in this case were subjected to.”

“For nearly 20 years, more than 40 female tenants and prospective tenants endured abhorrent sexual harassment when all they wanted was a safe place to call home,” said Acting U.S. Attorney Robert J. Troester for the Western District of Oklahoma. “Tenants have the right under federal fair housing laws to be free from unwanted sexual harassment in order to obtain or maintain housing. The magnitude of this settlement and consent order demonstrates that the Justice Department will neither tolerate this type of discrimination from abusers nor ignore the vulnerable victims who suffer this abuse.”

The United States’ lawsuit alleged that Pelfrey’s harassment spanned a period of almost 20 years, through at least 2017, and included demanding that prospective tenants engage in sexual acts to obtain housing, offering to reduce rent and overlooking unpaid rent in exchange for sexual intercourse or contact, evicting and threatening to evict female tenants for refusing his sexual advances, groping and grabbing female tenants’ breasts, buttocks, and genitals, making unwelcome sexual advances and comments, and entering the homes of female tenants unannounced and without their consent to further these advances. The defendants — Rosemarie Pelfrey, in her capacity as trustee of two named trusts and as personal representative of Pelfrey’s estate, Omega Enterprises LLC and Pelfrey Investment Company Inc. — were named in the lawsuit because they owned the properties at which the discriminatory conduct took place, and are therefore vicariously liable for their agent Pelfrey’s harassment. Under the terms of the settlement, the defendants must provide Fair Housing Act training for their employees, provide a complaint procedure to tenants and release judgments obtained against victims whom Pelfrey wrongfully evicted.  

The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country. The goal of the department’s 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 Oct. 2017, the Department of Justice has filed 21 lawsuits alleging sexual harassment in housing and recovered over $3.8 million for victims of such harassment. 

The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status.  More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals may report sexual harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743, emailing the Justice Department at fairhousing@usdoj.gov or submitting a report online. Individuals may also report such discrimination by contacting HUD at 1-800-669-9777 or by filing a complaint online.