District Not Recorded

U.S. Attorney General Merrick B. Garland today made the following statement in honor of World Elder Abuse Awareness Day:

“The COVID-19 pandemic has exposed and exacerbated injustices faced by far too many of the most vulnerable among us, including older Americans and elderly people around the world. For too long, elderly people have faced abuse, neglect, and exploitation. Even before the beginning of the worst pandemic in more than a century, a study supported by the Justice Department’s National Institute of Justice found that at least one in 10 older Americans are victims of some form of elder abuse each year.

“In observance of World Elder Abuse Awareness Day, the Department of Justice reaffirms its commitment to ending elder abuse in all its forms. Today we also recognize the Justice Department attorneys, investigators, grantmakers, policymakers and professional staff who work tirelessly every day with our partners both outside and inside every level of government across the United States and around the world to advance the cause of elder justice.

“In the days ahead, the Justice Department will continue to use all its available tools to prevent and combat elder abuse, neglect, and exploitation – from enforcement actions to public awareness campaigns, and from training and technical assistance to victims’ services and legal aid. Within the department, the Elder Justice Initiative will step up efforts to seek and deliver justice for older Americans through a coordinated approach. It will continue to lead and work with the Elder Justice Coordinators in all 94 U.S. Attorneys’ office, across our law enforcement and grantmaking components, and alongside the department’s recently-revived Office for Access to Justice. Taken together, the Justice Department’s FY 2022 budget request includes a 44% increase for elder justice efforts above the FY 2021 enacted budget.

“The Justice Department relies on the public’s assistance in remaining vigilant and reporting suspected fraud and abuse. To learn more about our elder justice efforts, find help, or report abuse, please visit the department’s Elder Justice website at www.elderjustice.gov, or call the department’s dedicated National Elder Fraud Hotline at 1-833–372–8311.”

A Maryland man was sentenced Monday to 30 months in prison and ordered to pay $150,000 in restitution for defrauding a U.S. Department of Veterans Affairs (VA) program dedicated to rehabilitating military veterans with disabilities. 

According to court documents, Francis Engles, 65, of Bowie, was the owner and operator of Engles Security Training School (Engles Security). In August 2015, Engles Security became an approved vendor of the VA’s Vocational Rehabilitation & Employment program, which provides disabled U.S. military veterans with services. Thereafter, Engles Security obtained over 80% of its total revenue from the VA in exchange for purporting to provide certain courses to disabled military veterans. 

To further the scheme, Engles falsely represented to the VA that his company was providing veterans with months-long courses for 40 hours per week and over 600 total hours. In fact, as Engles knew, Engles Security offered veterans far less than what Engles represented to the VA. In some instances, it offered only a few hours of class per day for several weeks. Some veterans did not attend more than one day of class. Engles nevertheless sent to the VA “Certificates of Training” stating that veterans had completed courses that they had not completed or, in some instances, had not taken at all. Similarly, Engles submitted letters to the VA falsely stating that the veterans were employed by Engles’ private security business. Engles also instructed veterans to sign attendance sheets for classes that he knew they did not in fact attend. In total, Engles Security obtained $337,960 from the VA for the purported education of military veterans. 

Engles also attempted to obstruct the investigation into his fraud. During an interview with federal agents, Engles lied about veteran students’ attendance at the school and later, when Engles Security was served with a grand jury subpoena, Engles prevented his employee from producing responsive documents that she had gathered. Some of these documents were later discovered in the government’s search of Engles Security’s office.

In February 2019, four other individuals were sentenced in related cases following their guilty pleas. James King, a former VA employee, was sentenced to 11 years in prison for committing bribery, defrauding the VA and obstructing justice. Albert Poawui, the owner of Atius Technology Institute, was sentenced to 70 months in prison for committing bribery. Sombo Kanneh, Poawui’s employee, was sentenced to 20 months in prison for conspiracy to commit bribery. Michelle Stevens, the owner of Eelon Training School, was sentenced to 30 months in prison for committing bribery. 

Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Channing D. Phillips for the District of Columbia; Special Agent in Charge James A. Dawson of the FBI’s Washington Field Office’s Criminal Division; and Special Agent in Charge Kim Lampkins of the VA Office of Inspector General’s Mid-Atlantic Field Office made the announcement.

Trial Attorney Lauren Castaldi of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Peter Lallas of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.

The Department of Justice announced today that it reached a settlement with Tecon Services Inc. (Tecon), an industrial insulation, fireproofing and painting contractor based in Texas. The settlement resolves claims that Tecon discriminated against a naturalized U.S. citizen based on her Venezuelan national origin by rejecting her U.S. passport and requiring other documents to prove her work authorization, in violation of the anti-discrimination provision of the Immigration and Nationality Act (INA).

The department’s investigation began after a naturalized U.S. citizen filed a discrimination complaint with the Civil Rights Division against Tecon. Based on its investigation, the department concluded that while verifying the worker’s legal right to work in the United States, Tecon refused to accept her U.S. passport and demanded additional and unnecessary documents, because of the worker’s Venezuelan national origin.

“Companies cannot reject valid identity and work authorization documents because of an individual’s national origin,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement makes clear that the Justice Department will vigorously enforce federal civil rights laws to protect workers from illegal discrimination.”

The INA prohibits employers from rejecting documents that reasonably appear genuine or requesting more or different documents than necessary to prove work authorization, based on workers’ citizenship, immigration status, or national origin.

Under the terms of the settlement, Tecon will pay a $1,542 civil penalty to the United States and $4,263.75 back pay and interest to the affected worker. Tecon will also revise its policies and procedures, ensure that relevant employees participate in training on anti-discrimination requirements under the INA, and be subject to departmental monitoring over the term of the agreement.  

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

Learn more about IER’s work and how to get assistance through this brief video. More information on how employers can avoid discrimination in the Form I-9 and E-Verify process is available here. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment, or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public also may 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.

The Justice Department today announced criminal charges in two separate cases against defendants accused of knowingly furnishing fraud schemes with information on elderly potential victims. The charges coincide with World Elder Abuse Awareness Day, a day intended to raise public awareness of the fight against elder abuse, neglect and financial exploitation.

“These matters underscore the importance of World Elder Abuse Awareness Day and the continuing threat posed by all forms of elder abuse, including elder fraud schemes that bilk seniors of their life savings,” said Deputy Assistant Attorney General Michael D. Granston of the Justice Department's Civil Division. “As the actions announced today make clear, companies and individuals that knowingly commit or facilitate elder fraud schemes will be held accountable.”

On June 14, the U.S. District Court for the District of Colorado arraigned a marketing company, KBM Group LLC, on a criminal information alleging that it sold millions of Americans’ information to perpetrators of elder fraud schemes. KBM Group and the Justice Department simultaneously filed a deferred prosecution agreement (DPA) with the court, in which KBM Group agreed to settle the charges. The agreement is under consideration by U.S. District Court Chief Judge Philip A. Brimmer in Denver.

Under the terms of the DPA submitted to the court, KBM Group would pay a total of $42 million, with $33.5 million of that amount going to compensate victims of fraudulent schemes that used consumer data sold by KBM Group. KBM Group also agreed to implement significant compliance measures designed to safeguard consumers’ data and prevent its sale to individuals or entities engaged in fraudulent or deceptive marketing campaigns.

In a similar case, the U.S. District Court for the District of Colorado unsealed an indictment yesterday charging Robert Reger, 53, of Boulder, Colorado, and David Lytle, 60, of Leawood, Kansas, with conspiracy to commit mail and wire fraud, and substantive mail and wire fraud charges, for allegedly participating in the sale of millions of Americans’ information to perpetrators of elder fraud schemes. According to the indictment, Reger and Lytle engaged in this conduct while employed at Epsilon Data Management LLC, a marketing company that resolved its criminal liability through a DPA with the Department of Justice earlier this year. Under the terms of that DPA, Epsilon agreed to pay a total of $150 million, with $127.5 million of that amount going to compensate victims of fraudulent schemes that used consumer data sold by Epsilon. Reger served as senior vice president of Epsilon’s Data Practice and Lytle served as a Business Development Manager.

As part of their negotiated DPAs, both KBM Group and Epsilon acknowledged that they sold consumer lists to a number of mass-mailing fraud schemes that sent false “sweepstakes” and “astrology” solicitations to consumers. Those solicitations stated that each consumer recipient had won a large prize or individualized psychic service that they could obtain by paying a fee. In reality, the solicitations — as known to KBM Group and Epsilon employees — were mass-produced mailings and victims who paid a fee received nothing of value. As reflected in the consumer lists sold by KBM Group and Epsilon to perpetrators of the fraud schemes, the schemes disproportionately affected the elderly and other vulnerable individuals.

“Each day we see elder financial abuse we are reminded we have more work to do,” said Chief Postal Inspector Gary Barksdale of the U.S. Postal Inspection Service. “The actions announced today demonstrate our commitment to investigating companies and individuals who facilitate the victimization of older Americans. These bold actions and the payment of compensation to the victims of these schemes should not be overlooked by corporations. The U.S. Postal Inspection Service and its federal law enforcement partners have demonstrated we will continue to work tirelessly to keep our communities and our vulnerable populations safe from financial exploitation.”

Subject to consideration by the court, the KBM Group DPA provides that KBM Group must select, and cover the costs of, an independent claims administrator to distribute the $33.5 million to identified victims with established losses caused by fraud schemes that used KBM Group data. The claims administrator will contact identified victims directly. More information about the victim compensation amount and fund distribution will be posted at the following website: https://www.justice.gov/civil/case/united-states-v-kbm-group-llc. Victims of elder fraud schemes may also contact the National Elder Fraud Hotline, which provides services to seniors who may be victims of financial fraud. The hotline is staffed by experienced case managers who provide personalized support to callers. The hotline’s toll-free number is 833-FRAUD-11 (833-372-8311).

The U.S. Postal Inspection Service investigated both the KBM Group and Epsilon cases.

Assistant Director John W. Burke and Trial Attorney J. Matt Williams of the  Civil Division’s Consumer Protection Branch and Assistant U.S. Attorneys Rebecca Weber and Hetal J. Doshi of the U.S. Attorney’s Office for the District of Colorado are prosecuting the KBM Group case. Trial Attorneys Alistair Reader and Ehren Reynolds of the Consumer Protection Branch and Assistant U.S. Attorney Hetal J. Doshi of the U.S. Attorney’s Office for the District of Colorado are prosecuting the Reger and Lytle case. 

World Elder Abuse Awareness Day was first recognized by the Justice Department in June 2010. Since that time, government, non-profit organizations, and advocacy groups have used the day to draw attention to the extraordinary harm senior citizens experience from elder physical abuse and financial exploitation.

For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For information on the U.S. Attorney's Office for the District of Colorado, visit its website at https://www.justice.gov/usao-co.

To learn more about the department’s elder justice efforts, please visit the Elder Justice website at https://www.justice.gov/elderjustice/world-elder-abuse-awareness-day. 

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

A former Texas energy broker pleaded guilty Monday to conspiracy to commit commodities fraud and wire fraud and to violate various provisions of the Commodity Exchange Act for his role in an insider trading and kickback scheme. 

According to court documents, Mathew Webb, 51, of Tiki Island, admitted he conspired with others to misappropriate material, nonpublic information and to use that information to engage in fraudulent, pre-arranged trades in natural gas futures contracts. He shared the net profit from these fraudulent trades with others involved in the fraudulent trading scheme. Webb further admitted he and others agreed to falsely document certain proceeds as income on IRS forms in part to conceal the true nature of the funds and to make the illicit profits appear to be legitimate income paid.

According to court documents, Webb also admitted that he paid kickbacks to an energy trader and co-conspirator from commission fees paid by the co-conspirator’s employer to Webb’s brokerage. In exchange for these commission fee kickbacks, Webb’s co-conspirator agreed to direct his employer’s business to Webb’s brokerage. The scheme generated proceeds of approximately $5.9 million, and Webb personally profited in the amount of $585,000.  

Webb pleaded guilty to a one-count information charging him with conspiracy to commit commodities fraud and wire fraud and to violate various provisions of the Commodity Exchange Act. He is scheduled to be sentenced on Sept. 20.

In two related cases, Marcus Schultz, 41, and John Ed James, 51, pleaded guilty in July 2020 and February 2021, respectively. 

Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Jennifer Lowery of the Southern District of Texas; Special Agent in Charge Perrye K. Turns of the FBI’s Houston Field Office; and Special Agent in Charge D. Richard Goss of IRS-Criminal Investigation’s Houston Field Office made the announcement.

Trial Attorneys Leslie S. Garthwaite, Della Sentilles, and Drew Bradylyons of the Criminal Division’s Fraud Section and Deputy Chief Suzanne Elmilady and Assistant U.S. Attorney Zahra Fenelon of the U.S. Attorney’s Office for the Southern District of Texas are prosecuting the case.

The Criminal Division’s Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country and is the national leader in prosecuting fraud and manipulation in the U.S. commodity markets.

A New York construction executive was sentenced today in Manhattan federal court to 46 months in prison for evading taxes on more than $1.4 million in bribes he received from building subcontractors.

According to the criminal information, as well as other public documents and recent court proceedings, between 2011 and 2017, Ronald Olson of Long Island, New York, was Vice President and Deputy Operations Manager at Turner Construction Company, a construction firm that performed building projects in New York City for Bloomberg LLP. Olson used his position to participate in a scheme to obtain bribes from construction subcontractors, who paid kickbacks in exchange for construction contracts and subcontracts. In total, Olson received approximately $1,450,000 in unlawful cash payments, which he did not report on his 2011 to 2017 tax returns. Olson also received bribes in the form of renovations and improvement projects at his Long Island residence and his Long Beach Island, New Jersey, beach house.

In related proceedings, co-conspirator Anthony Guzzone, a former Director of Global Construction at Bloomberg, was sentenced on Jan. 19, 2021, by the Honorable Lewis J. Liman to 38 months in prison for evading taxes on more than $1.45 million in bribes in the same scheme; Michael Campana, a subordinate construction manager at Bloomberg also involved in the same scheme, was sentenced on July 24, 2020, by the Honorable Denise L. Cote to 24 months in prison, for evading taxes on more than $420,000 in bribes. In addition, Vito Nigro, a construction manager at Turner, has pleaded guilty to evading taxes on more than $1.8 million in bribes that he received due to his involvement, and is scheduled to be sentenced on July 1, before U.S. District Judge Analisa Torres.

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

IRS-Criminal Investigation is investigating the case.

Senior Litigation Counsel Stanley J. Okula of the Tax Division and Assistant U.S. Attorney David Raymond Lewis of the Southern District of New York’s Complex Frauds and Cybercrime Unit are in charge of the prosecution.

WASHINGTON, D.C. - El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con Tecon Services Inc. (Tecon), un contratista de aislamiento industrial, ignifugación y pintura con sede en Tejas. El acuerdo resuelve acusaciones de que Tecon había discriminado a un ciudadano estadounidense naturalizado por motivos de su nacionalidad de origen venezolana al rechazar su pasaporte estadounidense y requerir que entregara otros documentos para demostrar su autorización para trabajar, en contra de la disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés).

La investigación del Departamento comenzó después de que un ciudadano naturalizado de los EE. UU. presentó una demanda de discriminación contra Tecon ante la División de Derechos Civiles. Con base en su investigación, el Departamento concluyó que durante el proceso de verificar el derecho legal de la trabajadora a trabajar en los Estados Unidos, Tecon se negó a aceptar su pasaporte estadounidense y exigió documentos adicionales e innecesarios por motivos de la nacionalidad de origen venezolana de la trabajadora.

«Las empresas no pueden rechazar documentos válidos de identidad y de autorización para trabajar por motivos de la nacionalidad de origen del individuo», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «Este acuerdo deja claro que el Departamento de Justicia hará cumplir con firmeza las leyes federales de derechos civiles para proteger a trabajadores de la discriminación ilegal».

La INA prohíbe que los empleadores rechacen documentos que parecen ser genuinos o que pidan documentos adicionales o diferentes a los que sean necesarios para demostrar su autorización para trabajar con base en el estatus migratorio o de ciudadanía del empleado o bien por su nacionalidad de origen.

Conforme los términos del acuerdo, Tecon pagará una sanción civil a los Estados Unidos de 1.542 $ y pagos retroactivos e interés al trabajador que ascienden a 4.263,75 $. Por otra parte, Tecon revisará sus políticas y procedimientos, asegurará que los empleados relevantes participen en una capacitación sobre los requisitos antidiscriminatorios de la INA y se someterá a la supervisión por parte del Departamento durante el término del acuerdo.

 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. 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. 

Para más información sobre cómo los empleadores pueden evitar la discriminación en los procesos del Formulario I-9 e E-Verify, haga clic aquí. 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.

U.S. Attorney General Merrick B. Garland today made the following statement:

“As I stated during my confirmation hearing, political or other improper considerations must play no role in any investigative or prosecutorial decisions. These principles that have long been held as sacrosanct by the DOJ career workforce will be vigorously guarded on my watch, and any failure to live up to them will be met with strict accountability. There are important questions that must be resolved in connection with an effort by the department to obtain records related to Members of Congress and Congressional staff. I have accordingly directed that the matter be referred to the Inspector General and have full confidence that he will conduct a thorough and independent investigation. If at any time as the investigation proceeds action related to the matter in question is warranted, I will not hesitate to move swiftly.

“In addition, and while that review is pending, I have instructed the Deputy Attorney General, who is already working on surfacing potentially problematic matters deserving high level review, to evaluate and strengthen the department’s existing policies and procedures for obtaining records of the Legislative branch. Consistent with our commitment to the rule of law, we must ensure that full weight is accorded to separation-of-powers concerns moving forward.”

A federal grand jury in the District of Columbia returned a superseding indictment Thursday charging a U.S. entertainer and businessman and a Malaysian national with orchestrating an unregistered, back-channel campaign beginning in or about 2017 to influence the then-administration of the President of the United States and the Department of Justice both to drop the investigation of Jho Low and others in connection with the international strategic and development company known as 1Malaysia Development Berhad (1MDB), and to send a Chinese dissident back to China.

According to the superseding indictment, Low Taek Jho, 39, also known as Jho Low, and Prakazrel “Pras” Michel, 48, are alleged to have conspired with Elliott Broidy, Nickie Lum Davis, and others to engage in undisclosed lobbying campaigns at the direction of Low and the Vice Minister of Public Security for the People’s Republic of China, respectively, both to have the 1MDB embezzlement investigation and forfeiture proceedings involving Low and others dropped and to have a Chinese dissident sent back to China. Michel and Low are also charged with conspiring to commit money laundering related to the foreign influence campaigns. Michel is also charged with witness tampering and conspiracy to make false statements to banks.

In May 2019, Michel and Low were charged in the District of Columbia for allegedly orchestrating and concealing a foreign and conduit contribution scheme in which they funneled millions of dollars of Low’s money into the U.S. presidential election as purportedly legitimate campaign contributions, all while concealing the true source of the money. According to the indictment, to execute the scheme, Michel received Low’s money and contributed it both personally and through approximately 20 straw donors.

If convicted, Low faces a maximum penalty of five to 10 years in prison, per count. If convicted, Michel faces a range of maximum penalties from five to 20 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.

Deputy Assistant Attorney General Kevin O. Driscoll of the Justice Department’s Criminal Division; Special Agent in Charge Keith A. Bonanno of the Department of Justice Office of the Inspector General Cyber Investigations Office; Assistant Director in Charge Kristi Koons Johnson of the FBI’s Los Angeles Field Office; and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office made the announcement.

The Justice Department’s Office of the Inspector General and the FBI’s Los Angeles Field Office and International Corruption Squad in New York are investigating the case.

Principal Deputy Chief John D. Keller, Deputy Director of Election Crimes Sean F. Mulryne, and Trial Attorney Nicole R. Lockhart of the Criminal Division’s Public Integrity Section are prosecuting the case.

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

A federal grand jury returned a superseding indictment yesterday adding the charges of conspiracy to commit kidnapping and kidnapping to the previous charges of conspiracy to commit forced labor, forced labor, conspiracy to harbor aliens and harboring aliens.

According to court documents, Nery A. Martinez Vasquez, 52, and his wife Maura N. Martinez, 52, both of Shasta Lake, were naturalized United States citizens, originally from Guatemala. They owned and operated Latino’s, a restaurant, and Redding Carpet Cleaning & Janitorial Services, a cleaning company that serviced various businesses, including multiple car dealerships, in the Shasta Lake area.

The original indictment alleges that between September 2016 and February 2018, the defendants conspired to bring a Guatemalan woman and her two minor daughters to the United States using temporary visitor visas, harbored them after their visas expired, and forced them to work long hours at a restaurant and cleaning service for minimal to no pay. The indictment further alleges that the defendants imposed a debt on the victims to prevent them from returning to Guatemala; subjected them to physical, psychological, and verbal abuse; threatened them with arrest; and separated the woman from her daughters, all to compel their labor.

In addition, according to the superseding indictment, in January 1997, the defendants conspired to kidnap a 13-year-old girl. They made promises to the girl’s parents that they would bring her back in a week and told the girl that they would give her presents and money. They then drove her from her home in Las Vegas to their home in Redding, California, and held her against her will and the will of her parents for almost two years. They forced the girl to clean car dealerships and provide other labor, working long hours seven days a week without pay. Nery A. Martinez Vasquez is also alleged to have routinely sexually molested and raped the girl.

This case is the product of an investigation by the FBI. Civil Rights Division Trial Attorney Avner Shapiro and Assistant U.S. Attorneys Katherine T. Lydon and Tanya B. Syed of the Eastern District of California are prosecuting the case.

If convicted of the forced labor charges, the defendants face a maximum statutory penalty of 20 years in prison and a $250,000 fine. If convicted of harboring an alien, the defendants face a maximum statutory penalty of 10 years in prison and a $250,000 fine. If convicted of the kidnapping charges, the defendants face a maximum statutory penalty of life in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division issued the following statement today after the U.S. Department of Agriculture’s (USDA) announcement concerning their proposed rules to support enforcement of the Packers and Stockyards Act:

“The Justice Department commends the USDA for the new steps it announced today to strengthen enforcement of the Packers and Stockyards Act to improve competition in our agricultural markets. The Antitrust Division remains committed to vigorous enforcement of the antitrust laws to protect American farmers, ranchers, and consumers, and to ensure they all benefit from robust competition. We stand ready to work hand in hand with the USDA to use our combined enforcement authorities to pursue these shared goals.”

A federal grand jury in Honolulu, Hawaii, returned an indictment today charging a Hawaii husband and wife with conspiring to defraud the United States and filing a false tax return. The wife was also charged with four counts of money laundering.

According to the indictment, from 2015 to 2019, Beverly Braumuller-Hawver and Scott F. Hawver, both of Ewa Beach, along with another individual, allegedly conspired to defraud the United States by filing a false 2014 amended individual income tax return claiming a refund of $188,239  to which they were not entitled. After the IRS issued the refund, Braumuller-Hawver allegedly laundered the fraudulently obtained tax refund through a series of financial transactions using banks located in the District of Hawaii.

Braumuller-Hawver is charged with conspiracy to defraud the United States, filing a false tax return, and four counts of money laundering. Hawver is charged with conspiracy to defraud the United States and filing a false tax return. The defendants are scheduled for their initial court appearances on June 16, before a U.S. Magistrate Judge of the U.S. District Court for Hawaii.

If convicted, Braumuller-Hawver faces a maximum sentence of 10 years in prison for each count of money laundering. The Hawvers each face a maximum sentence of three years for filing a false tax return and a maximum sentence of five years for conspiracy to defraud the United States. 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 Judith A. Philips for the District of Hawaii made the announcement.

The IRS-Criminal Investigation is investigating the case.

Trial Attorneys Sarah A. Kiewlicz and Valerie G. Preiss of the Tax Division and Assistant U.S. Attorney Gregg Paris Yates of the U.S. Attorney’s Office for the District of Hawaii 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.

Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Marites M. Barrogo, age 47 from Dededo, Guam was sentenced in the United States District Court of Guam to ten months imprisonment for Conspiracy to Use, Transfer, Acquire, Alter, or Possess Supplemental Nutrition Assistance Program (SNAP) Benefits Without Authorization, in violation of 7 U.S.C. § 2024 and 18 U.S.C. § 371.  The Court also ordered three years of supervised release following imprisonment and a mandatory $100 special assessment fee.  In addition, defendants convicted of trafficking SNAP benefits are ineligible to receive SNAP benefits and may not participate in the program as vendors.

From June 2015-2018, investigation revealed that Marites M. Barrogo, owner of Laguna Best Restaurant, illegally purchased over $15,000 worth of SNAP benefits. Barrogo purchased SNAP benefits from co-conspirators at a discount on their face value on an approximately monthly basis and used the benefits to purchase food items from various retailers on Guam for use at her restaurant.

U.S. Attorney Anderson stated, “SNAP benefits enable low income individuals to meet their basic nutrition needs.  The recipients are often children.  The unlawful transfer of these benefits, as occurred in this matter, greatly diminishes the impact of the program in keeping our communities healthy.  The public should also have confidence that federal funds are appropriately used.”

This case was investigated by the Guam Department of Public Health and Social Services Investigation and Recovery Office and prosecuted by Benjamin K. Petersburg, Assistant United States Attorney in the District of Guam.

The daughter of the leader of the Mexican drug trafficking organization known as the Cartel de Jalisco Nueva Generacion (CJNG), a  dual U.S.-Mexican citizen, was sentenced today to 30 months in prison for willfully engaging in financial dealings with Mexican companies that had been identified as specially designated narcotics traffickers by the Office of Foreign Assets Control of the U.S. Department of the Treasury (OFAC). 

Jessica Johanna Oseguera Gonzalez, 34, of Guadalajara, Mexico, pleaded guilty on March 12, 2021. According to court documents, she violated the criminal penalties of the Foreign Narcotics Kingpin Designation Act (Kingpin Act) by engaging in transactions and dealings in property with six Mexican businesses that had been sanctioned by OFAC as specially designated narcotics traffickers in September 2015 and September 2017. The six businesses were designated for providing material support to the narcotics trafficking activities of the CJNG, which was itself designated by OFAC in April 2015. Oseguera Gonzalez’s father, Nemesio Ruben Oseguera Cervantes, aka “El Mencho,” who is the leader of CJNG, and her uncle, Abigael Gonzalez Valencia, who is the leader of the Los Cuinis drug trafficking organization, were also sanctioned by OFAC in April 2015. 

Court documents indicate that Oseguera Gonzalez was an owner of two Mexican companies designated by OFAC, J&P Advertising, S.A. de C.V., and JJGON S.P.R. de R.L. de C.V., and that she was an officer, director, or agent of four additional sanctioned businesses, Las Flores Cabanas, Mizu Sushi Lounge, Tequila Onze Black, and Operadora Los Famosos, S.A. de C.V., doing business as Kenzo Sushi. She remained an owner, officer, director or agent of those entities following their OFAC designations, and did not seek the required license from OFAC to engage in those financial transactions.

“This sentence shows that violating the Treasury Department’s sanctions of businesses and persons tied to foreign drug cartels will not go unpunished,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “The Kingpin Act is an important tool in the U.S. government’s unrelenting efforts to dismantle drug cartels, and we will not hesitate to prosecute those who support major narcotics traffickers by engaging in conduct that violates the act’s criminal prohibitions.”

“Today’s sentencing of a prominent individual who willfully violated the Kingpin Act to engage in criminal transactions that facilitated the CJNG organization shows our unwavering commitment to bring to justice those who disregard the law and threaten public safety,” said Special Agent in Charge Bill Bodner of the Drug Enforcement Administration’s Los Angeles Field Division. “Those who engage in illicit finance activities to aid the drug cartels that fill our communities with powerful and addictive drugs have no business operating without accountability.”

The Los Angeles Field Division of the Drug Enforcement Administration investigated the case, and the Justice Department particularly thanks the Office of Foreign Assets Control of the Department of the Treasury and the U.S. Marshals Service for their support and contributions to the case.

Trial Attorneys Brett Reynolds, Kaitlin Sahni and Kate Naseef of the Criminal Division’s Narcotic and Dangerous Drug Section prosecuted the case.

This case received significant support from the Organized Crime Drug Enforcement Task Force (OCDETF) program. The OCDETF program supports investigations around the country to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises. 

The wife of Joaquin “El Chapo” Guzman Loera, leader of the Mexican drug trafficking organization known as the Sinaloa Cartel, pleaded guilty today to charges related to international drug trafficking, money laundering, and a criminal violation of the Foreign Narcotics Kingpin Designation Act (the Kingpin Act). 

According to court documents, Emma Coronel Aispuro, 31, a dual U.S.-Mexican citizen, pleaded guilty to a three-count criminal information charging her with: 1) Conspiring to distribute five kilograms or more of cocaine, one kilogram or more of heroin, 500 grams or more of methamphetamine, and 1,000 kilograms or more of marijuana in the U.S., Mexico, and elsewhere, knowing, intending, and having a reasonable cause to believe that such substances would be unlawfully imported into the U.S.; 2) conspiring with others to launder narcotics proceeds; and 3) violating the criminal penalties of the Kingpin Act by engaging in transactions and dealings in property of her husband, Guzman Loera, a Significant Foreign Narcotics Trafficker designated by the Office of Foreign Assets Control of the U.S. Department of the Treasury.

Coronel Aispuro is scheduled to be sentenced on Sept. 15. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division and Assistant Director in Charge Steven D’Antuono of the FBI’s Washington Field Office made the announcement.

This investigation is being conducted by the FBI’s Washington Field Office with significant assistance from other FBI Field Offices, the Drug Enforcement Administration and Homeland Security Investigations.

Deputy Chief Anthony Nardozzi and Trial Attorney Kate Wagner of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case.

U.S. Attorney General Merrick B. Garland made the following statement on the passing of Judge Robert Katzmann:

“We lost a giant yesterday with the passing of Judge Robert Katzmann. Humble and modest in demeanor, he leaves behind a legion of family, friends, and colleagues who will feel his loss because he enriched our lives through our relationship to him. But that number pales in comparison to the lives he touched through his work – people who will never know the name of the man who helped make their lives better.

“Bob had extraordinary intellectual gifts, a profound commitment to the law, and a deep devotion to public service. He was a distinguished federal judge on the Second Circuit, a creative legal thinker, and a gifted teacher. He saw everyone as a person, not merely a litigant or a defendant, and was deeply conscious of the impact that his legal rulings would have on the lives of those affected by his decisions.

“A PhD political scientist as well as a lawyer, Bob had an unparalleled understanding about how Congress viewed the laws it passed and the means by which those laws should be interpreted by the judiciary. He authored several books; the most recent, Judging Statutes, is widely taught in law schools to help students understand statutory interpretation, the basis for so many legal questions that come before the courts.

“His influential decisions are too many to mention. One that stands out is his opinion writing for the full 2nd Circuit that Title VII of the Civil Rights Act of 1964 prohibits employment discrimination on the basis of sexual orientation. That decision was later affirmed by the Supreme Court in Bostock v. Clayton County.

“Bob was the rare jurist whose achievements outside the courtroom are as monumental as his work as a judge. His deep belief that the justice system cannot work unless people have access to representation led him to found the Immigrant Justice Corps, a fellowship program through which recent law school and college graduates provide high quality legal assistance to tens of thousands of immigrants on a range of life-altering legal matters.

“Bob understood that public confidence in the judicial system requires an understanding of the role of courts and bringing courts closer to the community. He launched a circuit-wide civic education initiative, Justice for All: Courts and the Community, in which judges, court personnel, attorneys and educators work together to help ensure that courts are accessible and effective public institutions.

“The rule of law and the search for equal justice have lost one of their most effective advocates. Bob elevated our profession and inspired countless young law students and lawyers. He brought enormous and edifying humanity to every interaction he had.

“Bob was my friend. While serving together for many years on committees of the Judicial Conference of the United States, I saw firsthand his decency, compassion and humility. His wife, Jennifer, his mother Sylvia, and his brothers and sister, Gary, Martin and Susan, have my deepest sympathy. He will be sorely missed.”

A New Jersey chiropractor pleaded guilty today to a felony charge relating to the distribution of steroid-like drugs in purported dietary supplements.

According to court documents, Nicholas Andrew Puccio, 41, currently of Columbus, New Jersey, pleaded guilty to introducing an unapproved new drug into interstate commerce with the intent to defraud and mislead the U.S. Food and Drug Administration (FDA) and consumers. The United States alleged that from 2016 to 2020, Puccio marketed drugs as “dietary supplements” to the bodybuilding and fitness community. The supplements included a product labeled as containing ostarine, a type of synthetic steroid known as a Selective Androgen Receptor Modulator (SARM). The FDA has long warned against the use of SARMs, including stating in a 2017 warning letter to another firm that SARMs had been linked to life-threatening reactions such as liver toxicity, and have the potential to increase the risk of heart attack and stroke.

“Undermining the FDA drug approval process puts consumers at risk, especially when those drugs contain ingredients that can cause harm,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice will continue to work closely with the FDA to prosecute those who put profit before the public health.”

“When Mr. Puccio marketed unapproved drugs as dietary supplements, he sidestepped important safeguards to protect the public, and must be held accountable,” said Acting U.S. Attorney Daniel P. Bubar of the Western District of Virginia. “Our office will continue to closely partner with FDA to ensure safety and effectiveness in our drug supply and prosecute those who flout these rules.”

“Marketing misbranded dietary supplements that contain unapproved drugs is illegal and is a threat to public health,” said Assistant Commissioner for Criminal Investigations Catherine A. Hermsen of the FDA's Office of Criminal Investigations. “We remain committed to bringing to justice companies and individuals who attempt to subvert the regulatory functions of the FDA by distributing unapproved, and potentially dangerous, drugs.” 

Puccio pleaded guilty before Judge James P. Jones in U.S. District Court for the Western District of Virginia. He is scheduled to be sentenced on Sept. 23, and faces a maximum penalty of three years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FDA’s Office of Criminal Investigations is investigating the case.

Assistant U.S. Attorney Randy Ramseyer of the U.S. Attorney’s Office for the Western District of Virginia and Trial Attorney Speare Hodges of the Civil Division’s Consumer Protection Branch are prosecuting the case.

A federal grand jury sitting in Atlanta, Georgia, returned an indictment today charging an Atlanta certified public accountant with one count of conspiracy to defraud the United States; 24 counts of wire fraud; 32 counts of aiding or assisting in the preparation of false federal tax returns; and five counts of filing false federal tax returns relating to a wide-ranging, abusive tax shelter scheme. 

According to the indictment, between 2014 and 2019, Herbert E. Lewis conspired with others to market, promote, and sell fraudulent tax shelter transactions in the form of syndicated conservation easement (SCE) donations. The SCE tax shelters allegedly enabled high-income taxpayers to purchase membership interests in purported real estate investment funds. According to the indictment, the funds served no legitimate business purpose, but instead were used to generate large fraudulent tax deductions for its participants based on the donated value of the conservation easements.  

To further promote the scheme, the indictment alleges that Lewis allowed clients to purchase units in a given SCE shelter after year’s end and that he advised clients to backdate checks and subscription agreements. Lewis then prepared tax returns for these same clients claiming the non-cash charitable deductions generated by the conservation easement donations despite knowing that they were not entitled to claim the charitable deductions. In total, the conservation easement donations allegedly generated hundreds of millions of dollars in tax deductions that were passed through to the SCE shelters and client taxpayers.

For his part, Lewis allegedly received more than $1 million in commissions for selling the SCE shelters. The indictment also alleges that Lewis filed false individual income tax returns that failed to report a substantial portion of his commission income on his individual tax returns.

If convicted, Lewis faces a statutory maximum sentence of 20 years in prison for each count of wire fraud, five years in prison for conspiring to defraud the United States, three years in prison for each count of filing a false tax return, and three years in prison for each count of aiding and assisting in the preparation of a false tax return. He also faces a period of supervised release, monetary penalties, and restitution.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department's Tax Division, Acting U.S. Attorney Kurt R. Erskine for the Northern District of Georgia, and IRS Commissioner Charles P. Rettig made the announcement.

IRS-Criminal Investigation and the U.S. Postal Inspection Service are investigating the case.

Tax Division Trial Attorneys Brittney Campbell, Grace Albinson, Casey Smith, and Parker Tobin, along with Assistant U.S. Attorney Thomas Krepp of the Northern District of Georgia, 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.

An Arizona man and a Texas woman have pleaded guilty to major fraud against the United States, and conspiracy to commit wire fraud, respectively, for their roles in a scheme to defraud the U.S. Air Force in connection with privatized military housing contracts between approximately 2013 and 2016.

Rick Cunefare, 61, of Glendale, Arizona, and Stacy M. Cabrera, 47, of Converse, Texas, pleaded guilty to their roles in the scheme. Cunefare was a regional manager for Company 1. He directly supervised the Company 1 community managers who were responsible for overseeing day-to-day operations at the military housing communities at Lackland Air Force Base (AFB), Travis AFB, Vandenberg AFB, Tinker AFB, and Fairchild AFB. He was responsible for reviewing and approving quarterly maintenance reports and for ensuring that the data in the quarterly maintenance reports were submitted to the Air Force with performance incentive fee request letters.

According to court documents, Company 1 managed housing communities created under the Military Privatized Housing Initiative (MHPI) at Lackland AFB, Travis AFB, Vandenberg AFB, Tinker AFB, Fairchild AFB and other U.S. military installations. The MHPI was a program designed to attract private sector financing, expertise, and innovation to provide necessary housing for military servicemembers, their families, and other dependents faster and more efficiently than traditional military construction processes would allow. Company 1’s revenue from the management of these communities was based, in part, on meeting performance maintenance objectives that were set forth in Company 1’s contracts with the U.S. Air Force. For example, if Company 1 completed 95% of routine maintenance requests within three business days on a quarterly basis, it was eligible for a performance incentive fee. Company 1 kept maintenance records in a computer system called Yardi and used data from Yardi to generate quarterly maintenance reports, which it submitted to the U.S. Air Force in support of requests for performance incentive fees.

According to court document, Cunefare and others conspired to manipulate and falsify information maintenance reports from 2013 to 2015 so that the reports falsely reflected that Company 1 had met performance maintenance objectives, when in reality, as Cunefare and his co-conspirators well knew, it had not. This allowed Company 1, acting through the co-conspirators to submit requests to the Air Force for payment of performance incentive fees to which it was not entitled. Specifically, in quarters in which Company 1 did not legitimately meet the maintenance performance objectives, Cunefare gave written and oral instructions to community managers and others that resulted in the community managers and others manipulating and falsifying maintenance information to reflect that Company 1 had met its objectives. These actions had the effect of falsely inflating Company 1’s maintenance performance objectives, resulting in Company 1 receiving approximately $2.5 million in performance incentive fees. Cunefare admitted that the false information deceived the U.S. Air Force into believing that Company 1 was properly maintain the housing communities, when in reality Company 1 was unable to keep up with maintenance issues at many of the military housing communities, parts of which had fallen into disrepair.

On April 21, Cabrera pleaded guilty to her role in the scheme. According to court documents, from approximately 2013 to 2016, Cabrera was the Company 1 community manager at Lackland AFB. She personally, and through subordinates acting on her instructions, falsified maintenance records in order to generate quarterly maintenance reports that falsely reflected that Company 1 had met maintenance-related performance objectives. She then caused these reports to be submitted to other managers at Company 1, who then knowingly used the false reports to substantiate Company 1’s requests for performance bonuses. According to court documents, Company 1 fraudulently obtained approximately $1 million in performance bonuses as a result of Cabrera’s conduct. Cabrera acted on instructions from Cunefare and others.

“The defendants defrauded the U.S. Air Force and put corporate profits ahead of the well-being of servicemembers and their families,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “The department is committed to protecting our military families from deceit and mistreatment and ensuring the integrity of Department of Defense programs.”

“As the lead investigative agency for the Department of the Air Force, AFOSI is resolute in safeguarding our personnel and their families from harm,” said Special Agent in Charge Blair A. Holmstrand of the U.S. Air Force Office of Special Investigations (AFOSI). “The collaboration between DCIS, AFOSI, and the Department of Justice has been significant, and we are looking forward to seeing the final results of the hard work put forth by all agencies involved.”

“As the investigation arm of the DoD Inspector General, the Defense Criminal Investigative Service (DCIS) is charged with investigating those who seek to fraudulently enrich themselves at the expense of the taxpayer,” said Special Agent in Charge Michael Mentavlos of the DCIS Southwest Field Office. “The safety and well-being of our service members and their families is paramount to readiness. This outcome demonstrates not only the outstanding partnership between AFOSI, the Justice Department and DCIS, but also our ability to keep our warfighters ready by holding wrongdoers accountable for their actions.”

Cunefare is scheduled to be sentenced at a later date and faces a maximum penalty of 10 years in prison and a $250,000 fine. Cabrera is scheduled to be sentenced at a later date and faces a maximum penalty of five years in prison and a $250,000 fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

AFOSI and DCIS are investigating the case.

Trial Attorneys Michael P. McCarthy and Siji Moore of the Justice Department’s Fraud Section are prosecuting the case.

The Fraud Section is the nation’s leading prosecuting authority for complex procurement fraud and corruption matters.

Two individuals pleaded guilty today to conspiring to violate federal and New York State regulations intended to prevent human exposure to asbestos.

According to court documents, between 2015 and 2016, Kristofer Landell, 36, and Madeline Alonge, 27, both permitted, and in some cases directed, abatement workers to use illegal methods to remove asbestos from a former IBM site in Kingston, now known as TechCity. The facility in question contained over 400,000 square feet of regulated asbestos-containing material (RACM), as well as an additional 6,000 linear feet of RACM pipe wrap. Alonge, then a supervisor for the asbestos abatement company operating on the TechCity site, oversaw multiple crews of abatement workers who were illegally removing asbestos. Landell held a New York license to work as a person responsible for ensuring compliance with federal and state asbestos regulations and had been hired as the “project monitor” on site. Landell was also responsible for conducting air monitoring to ensure that asbestos fibers were not released into the surrounding environment.

According to court documents, Alonge and Landell failed to fulfill their responsibilities. As a result, New York State issued numerous notices of violation (NOVs). Notwithstanding those NOVs, A2 owner Stephanie Laskin, as well as abatement supervisors Alonge and Gunay Yakup, instructed workers to remove asbestos illegally. For example, they removed RACM dry, produced visible emissions of asbestos, and directed work to proceed in areas that were not properly sealed off with “critical barriers,” which are designed to prevent asbestos emissions outside a work area. Their co‑conspirator Landell not only permitted such practices to continue, but also failed to conduct requisite air monitoring, falsified compliance records, and failed to properly conduct “final air clearances,” as required by New York regulations. Final air clearances are intended to ensure areas are safe to be reinhabited following abatement activities. All of the defendants charged as co-conspirators had received training in proper asbestos removal and regulatory requirements.

“The pleas entered today are especially important because they address not only criminal violations of the Clean Air Act, but also the criminal circumvention of the third party project and air monitor systems designed to ensure compliance,” said Acting Assistant Attorney General Jean E. Williams for the Justice Department’s Environment and Natural Resources Division (ENRD). “I would like to take this opportunity to thank New York State inspectors for their support of this prosecution.”

“Today’s plea agreements again reflect the serious consequences of the failure of these defendants to comply with EPA’s regulations that protect public health from asbestos, a dangerous human carcinogen,” said Special Agent in Charge Tyler Amon of the Environmental Protection Agency’s (EPA) Criminal Investigation Division. “These criminal acts endanger workers and the community and cost the taxpayers substantial monies in cleanup costs. EPA commends the Justice Department prosecutors for vigorously prosecuting this environmental crime case.”

Because of the defendants’ and others’ actions, asbestos was released into the surrounding environment, as admitted by co-defendant Roger Osterhoudt. Although not charged with conspiracy, Osterhoudt took responsibility last month for his criminal negligence in re-hiring A2 Environmental Services after having been made aware of numerous NOVs and other evidence of illegal practices. According to Osterhoudt’s plea, his negligence caused a release of asbestos into the environment that placed others at an increased risk of death or serious bodily injury. Asbestos has been determined to cause lung cancer, asbestosis, and mesothelioma, an invariably fatal disease. The EPA has determined that there is no safe level of exposure to asbestos.

Landell and Alonge entered guilty pleas to violating the federal conspiracy statute before Hon. Judge McAvoy in Binghamton, New York. Sentencing is currently scheduled for Oct. 6, and Oct. 19, respectively. Both individuals face up to five years in prison, three years supervised release, a $250,000 criminal fine, and may be held liable for providing restitution to any victims.

These charges are related to conspiracy pleas previously entered by Laskin, who owned A2 Environmental Solutions, and Yakup, who — like Alonge — worked for Laskin as an abatement supervisor.

Special agents of the EPA and individuals from the New York Departments of Labor and Environmental Conservation investigated the case.

Todd W. Gleason and Gary N. Donner of ENRD’s Environmental Crimes Section prosecuted the case with the assistance of paralegal Chloe Harris.

A Kinston, North Carolina, woman was sentenced today to 30 months in prison for conspiring to file false tax returns for her clients.

According to court records, from at least January 2016 through March 2016, Hildares Kinkesha Parker-Greene managed a tax return preparation business in Kinston. Parker-Greene conspired with another return preparer to fraudulently inflate clients’ tax refunds by claiming false wages, federal income tax withholdings, and dependents. This fraudulent conduct caused clients to receive refunds to which they were not entitled. To profit from the false returns, Parker-Greene printed client tax refund checks, directed clients to cash the refund checks, and pay her additional cash fees. Additionally, between 2017 and 2018, Parker-Greene operated a tax preparation business out of her home and continued to prepare false returns for clients. In total, the false returns prepared by Parker-Greene and her co-conspirator sought to defraud the IRS of more than $550,000.

In addition to the term of imprisonment, U.S. District Court Judge James C. Dever III ordered Parker-Greene to serve three years of supervised release and pay $442,576 in restitution to the IRS.  

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney G. Norman Acker III for the Eastern District of North Carolina made the announcement.

The IRS-Criminal Investigation investigated the case. 

Trial Attorneys Michael Jones and William Guappone of the Tax Division prosecuted the case.

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

The Justice Department today announced that it reached a single agreement with 19 building owners* who rent space in their buildings to stores and restaurants. 

The agreement requires the owners to fix their buildings so that people with mobility disabilities, like wheelchair users, can get in the door to shop or eat. Physical barriers, like steps at an entrance, can keep people with disabilities out and cause discrimination under the Americans with Disabilities Act (ADA).

The Justice Department inspected three buildings on 14th Street N.W., in Washington, D.C., to see if people with disabilities could enter the businesses renting space there. Two of the buildings had steps at the entrances and one did not have enough space at the entrance for wheelchair users to open the door and go in on their own. 

The building owners agreed to hire an architect to check their 19 buildings in Washington, D.C., Maryland, and Virginia to make sure the buildings can be used by people with disabilities. The owners agreed to fix any problems by the end of next year. Possible fixes are adding a ramp where there are steps or putting in an automatic door opener when there is not enough space for wheelchair users. Fixing the buildings is an important step toward providing people with mobility disabilities an equal opportunity to shop and dine at the stores and restaurants inside.

The ADA requires stores and restaurants located in new buildings to make sure the spaces their customers use in those buildings are useable by people with disabilities, such as those who use wheelchairs. If a business is located in an older building, the business must make sure barriers to people with disabilities are removed when it is easy to do. And if a business makes changes to a building, those changed areas must be made useable as much as possible. These rules also apply to the companies that own the buildings that they rent to businesses like stores and restaurants.

“Congress passed the Americans with Disabilities Act in 1990 to stop discrimination against people with disabilities caused by the way a building is designed, built, or changed,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Today’s agreement calls attention to the obligations of building owners to ensure that the space they rent to a store or restaurant follows the rules of the ADA. We welcome the owners’ cooperation with us in today’s agreement to make their buildings more usable for people with disabilities.”

This matter was handled by the Disability Rights Section of the department’s Civil Rights Division. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.

*The 19 building owners, all managed by companies that are managed by J.C. Reger Interests Inc., doing business as JCR Companies, are:

1. Hillwood SRR 1324 14th Street Investors LLC
2. 1526 14th Street Investors LLC
3. 1529 14th Street Investors LLC
4. 601 King Street Investors LLC
5. 1723 Conn Ave Investors LLC
6. JCR Silver Hill Investors LLC
7. 1519 Wisconsin Ave, Investors LLC
8. JCR Pinefield South Investors LLC
9. JCR Westview Corner Investors LLC
10. 1515 Unit C-3 and C-9 Investors LLC
11. JCR Lorton Station Investors LLC
12. JCR Rutherford Crossing Investors LLC
13. JCR Signal Hill Investors LLC
14. JCR 916 G Street Investors LLC
15. JCR Bel Air TC Investors LLC
16. JCR Woodley Investors LLC
17. JCR Krispy Korner Investors LLC
18. JCR Innovation Investors LLC
19. JCR Riverton Investors LLC

The United States has filed a complaint in the U.S. District Court for the Middle District of Georgia, Macon Division, seeking to bar an Irwinton, Georgia, tax return preparer from preparing tax returns for others.

The civil complaint against Shondre D. Pitts alleges that, since 2014, he has operated through a business named “First Choice Tax Services.” The complaint further alleges that Pitts has a long history of preparing fraudulent returns, including returns that claimed false itemized deductions, false income and business expense deductions, and fabricated business losses in order to fraudulently reduce the customer’s liability or claim improper tax credits. The complaint further alleges that returns prepared by Pitts falsely claimed earned income tax credits, residential energy credits, additional child tax credits, and education credits. As a result of Pitts’ conduct, the complaint alleges, his customers may face large income tax debts and may be liable for penalties and interest.

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.

A Wisconsin man was sentenced today to three years in prison for tampering with COVID-19 vaccine doses at the hospital where he worked.

Steven R. Brandenburg, 46, of Grafton, pleaded guilty on Feb. 9, to two counts of attempting to tamper with consumer products with reckless disregard for the risk that another person would be placed in danger of death or bodily injury. According to court documents, Brandenburg purposefully removed a box of COVID-19 vaccine vials manufactured by Moderna — which must be stored at specific cold temperatures to remain viable — from a hospital refrigeration unit during two successive overnight shifts in late December 2020. According to his plea agreement, Brandenburg stated that he was skeptical of vaccines in general, and the Moderna vaccine specifically, and had communicated his beliefs about vaccines to his co-workers.

Brandenburg acknowledged that after leaving the vaccines out for several hours each night, he returned the vaccines to the refrigerator to be used in the hospital’s vaccine clinic the following day. Before the full extent of Brandenburg’s conduct was discovered, 57 people received doses of the vaccine from these vials.

“The purposeful attempt to spoil vaccine doses during a national public health emergency is a serious crime,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice will continue working with its law enforcement partners to safeguard these life-saving vaccines.”

“Ensuring access to safe and effective COVID-19 vaccines is critical to the well-being of everyone in our communities,” said Acting U.S. Attorney Richard G. Frohling for the Eastern District of Wisconsin. “The Department of Justice is committed to working with its federal, state, and local partners to hold individuals who seek to tamper with these vaccines fully accountable. Today’s sentence was the direct result of that shared commitment and the underlying hard work and collaborative efforts of all involved in the investigation and prosecution of Mr. Brandenburg.”

“The FDA has ensured that the Moderna COVID-19 vaccine meets the agency’s rigorous standards for safety, effectiveness, and manufacturing quality,” said Assistant Commissioner for Criminal Investigations Catherine A. Hermsen of the Food and Drug Administration (FDA). “Those who knowingly tamper with this vaccine place American patients’ health at risk. Today’s announcement should serve as a reminder that this kind of illicit tampering activity will not be tolerated.”

“The FBI, together with our local law enforcement and private sector partners, are committed to upholding laws designed to protect our health care system from harm,” said Special Agent in Charge Robert Hughes of the FBI’s Milwaukee Field Office. “By illegally tampering with these doses, Brandenburg threatened the health and safety of an entire community. Today’s sentencing sends a clear message to individuals who intentionally violate these laws that they will be vigorously prosecuted.”

In addition to the term of imprisonment, the U.S. District Judge Brett Ludwig ordered Brandenburg to serve three years of supervised release and to pay approximately $83,800 in restitution to the hospital.

This matter was investigated by the FDA’s Office of Criminal Investigations, the Milwaukee Field Office of the FBI, and the Village of Grafton Police Department.

Assistant U.S. Attorney Kevin C. Knight of the U.S. Attorney’s Office for the Eastern District of Wisconsin, and Senior Litigation Counsel Ross S. Goldstein and Trial Attorney Rachel Baron of the Civil Division’s Consumer Protection Branch prosecuted the case.

A Florida nurse practitioner and a Florida woman pleaded guilty today to their participation in a conspiracy to falsify clinical trial data. 

According to court documents, Eduardo Navarro, 52, of Miami, and Nayade Varona, 50, of Port St. Lucie, worked at a clinical research site called Tellus Clinical Research. Navarro was a sub-investigator, and Varona was an assistant study coordinator. As part of their plea agreements, Navarro and Varona admitted that they agreed with one another and others to falsify data in medical records in connection with two clinical trials intended to evaluate a treatment for irritable bowel syndrome. Among other things, Navarro and Varona falsified data to make it appear as though subjects were participating in the trials when, in truth, they were not.

“The falsification of clinical trial data puts the health and safety of the public at risk,” 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.”

“Public health and safety must always take precedence over profit when new pharmaceutical drugs are being tested,” said Acting U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “Medical researchers needlessly endanger the public by manipulating clinical data and falsifying records. Such conduct is illegal and will be prosecuted.”

“FDA’s evaluation of a new drug begins with an analysis of reliable and accurate data from clinical trials,” said Assistant Commissioner for Criminal Investigations Catherine A. Hermsen of the Food and Drug Administration's (FDA) Office of Criminal Investigations. “Compromised clinical trial data could impact the agency’s decisions about the safety and effectiveness of the drug under review. We will continue to investigate and bring to justice those whose actions may subvert the FDA approval process and endanger the public health.”

Navarro and Varona both pleaded guilty before U.S. District Judge Jose E. Martinez of the Southern District of Florida to conspiracy to defraud the United States and to commit an offense against the United States. Both face a maximum penalty of five years in prison and are scheduled to be sentenced on Aug. 11. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. 

The FDA's Office of Criminal Investigations is investigating the 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 provided critical assistance.

CHICAGO — A Chicago man was sentenced today to 30 years in federal prison for kidnapping and assaulting three women he met online.

KEITH DEWITT DAVIS, 31, assaulted the women in vacant buildings in Calumet City, Ill., in the summer of 2016.  Davis met the women online and used a pretext of engaging in consensual, commercial sex acts to lure them to the vacant buildings.  Once there, he physically assaulted each of the women and raped two of them.  Davis displayed a handgun and pointed it at one of the victims, and he displayed a wrench or pipe in the two other incidents.

Davis pleaded guilty in 2019 to three counts of kidnapping for sexual gratification.  U.S. District Judge Harry D. Leinenweber imposed the sentence after a hearing in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The case was investigated by the FBI and the Will County Safe Streets Task Force.  Substantial assistance was provided by the Calumet City Police Department, Hazel Crest Police Department, Midlothian Police Department, South Bend, Ind., Police Department, and the St. Joseph County, Ind., Prosecutor’s Office.

“Defendant’s crime was vicious,” Assistant U.S. Attorney Abigail L. Peluso argued in the government’s sentencing memorandum.  “Defendant showed a complete disregard for human life and respect for a person’s dignity.”

A federal grand jury in Brooklyn, New York, returned an indictment on June 4, charging a New York City woman with conspiring to defraud the United States and aiding and assisting in the preparation of a false tax return.

According to the indictment, from 2008 to 2013, Alice Bixuan Zhang of Queens owned and operated Welling Physical Therapy and Acupuncture PLLC (Welling) and, from 2012 to 2013, co-owned Wellife Physical Therapy and Acupuncture PLLC (Wellife). Both businesses had locations throughout New York City. As charged, Zhang and her co-conspirator took multiple steps to reduce the income they reported and taxes they paid to the IRS. They allegedly diverted funds from Welling and Wellife to other entities that they controlled  (“Related Companies”), and Zhang and her co-conspirator reported those funds as deductible business expenses, thereby reducing the taxable income of Welling and Wellife. Zhang and her co-conspirator then allegedly sought to conceal from the IRS income earned by the Related Companies by cashing checks made to those firms at a check cashing business, and not disclosing that income to their tax return preparers, which resulted in the preparation of false income tax returns.

Zhang will make her initial court appearance at a later date before a U.S. Magistrate Judge of the U.S. District Court for the Eastern District of New York. If convicted, she faces a maximum penalty of five years in prison on the conspiracy charge and three years in prison for assisting in filing a false return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

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

IRS Criminal Investigation is investigating the case.

Trial Attorneys Anahi Cortada and Thomas F. Koelbl of the Tax Division are prosecuting the case.

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

A New York man was sentenced today to 20 months in prison for failing to collect and pay over to the IRS $732,462 in employment taxes.

Sergei Denko, of Queens, New York, owned and operated Denko Mechanical Inc. and Independent Mechanical Inc., both contracting businesses in Queens that specialized in plumbing. According to court documents and statements made in court, from 2010 through 2014, Denko cashed more than $5 million in checks made out to companies he owned and operated to fund an “off the books” cash payroll. He did not report the cash wages to the IRS, filed false employment tax returns, and did not pay to the IRS the employment taxes arising from the cash payroll. Denko admitted to causing a total tax loss of $732,462 .

In addition to the term of imprisonment, U.S. District Judge Rachel P. Kovner ordered Denko to serve one year of supervised release. The defendant has already paid $366,231 in restitution to the United States.  

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

The IRS Criminal Investigation investigated the case.

Trial Attorneys Sam Bean and Mark Kotila of the Tax Division prosecuted the case.

Today, the Department of Justice announced two new steps to help address the continuing epidemic of gun violence affecting communities across the country. First, the department issued a notice of proposed rulemaking that makes clear that when individuals use accessories to convert pistols into short-barreled rifles, they must comply with the heightened regulations on those dangerous and easily concealable weapons. Second, the department published model legislation to help states craft their own “extreme risk protection order” laws, sometimes called “red flag” laws. By sending the proposed rule to the Federal Register and publishing the model legislation today, the department has met the deadlines that the Attorney General announced alongside President Biden in April. 

“The Justice Department is determined to take concrete steps to reduce the tragic toll of gun violence in our communities,” said Attorney General Merrick B. Garland. “Today we continue to deliver on our promise to help save lives while protecting the rights of law-abiding Americans. We welcome the opportunity to work with communities in the weeks and months ahead in our shared commitment to end gun violence.”

The department issued a notice of proposed rulemaking that would make clear that the statutory restrictions on short-barreled rifles apply to pistols that are equipped with certain stabilizing braces and intended to be fired from the shoulder. The National Firearms Act imposes heightened regulations on short-barreled rifles because they are easily concealable, can cause great damage, and are more likely to be used to commit crimes. But companies now sell accessories that make it easy for people to convert pistols into these more dangerous weapons without going through the statute’s background check and registration requirements. These requirements are important public safety measures because they regulate the transfer of these dangerous weapons and help ensure they do not end up in the wrong hands. The proposed rule would clarify when these attached accessories convert pistols into weapons covered by these heightened regulations.

Once the proposed rule is published in the Federal Register, the public will have 90 days to submit comments.  To view the Notice of Proposed Rulemaking, please see here.

The department also published model legislation and detailed commentary that will make it easier for states to craft “extreme risk protection orders” authorizing courts to temporarily bar people in crisis from accessing firearms. By allowing family members or law enforcement to intervene and to petition for these orders before warning signs turn into tragedy, “extreme risk protection orders” can save lives. They are also an evidence-based approach to the problem. The model legislation, developed after consultation with a broad range of stakeholders, provides a framework that will help more states enact these sensible laws.

To read the model legislation, please see here.

To learn more about the rulemaking process, please see here.

A federal district court in Cincinnati, Ohio, sentenced an Atlanta, Georgia, man to 57 months in prison today for tax evasion. This sentence included an enhancement for failing to report income from drug trafficking.

According to court documents and statements made in court, from at least 2011 to 2016, Darryl Brown earned at least $1 million. To evade paying taxes on this income, Brown did not file returns. He created nominee businesses, opened bank accounts and lines of credit in the names of those businesses, and then used the accounts to pay for his luxury lifestyle. This included extravagant overseas trips, Rolex and Cartier watches, and luxury clothing and vehicles. Brown further used cash to purchase money orders in structured amounts to avoid triggering reporting requirements to the Department of Treasury and the IRS. Brown then used the money orders to pay off the balances on his nominee accounts. In total, Brown caused a tax loss of more than $250,000.

U.S. District Judge Timothy S. Black in the Southern District of Ohio also ordered Brown to serve three years of supervised release and pay restitution to the IRS in the amount of $377,240.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Vipal J. Patel of the Southern District of Ohio made the announcement.

IRS Criminal Investigation and local law enforcement officials conducted the investigation.

Trial Attorneys Sarah C. Ranney and William Guappone of the Tax Division prosecuted the case, and Criminal Chief Karl Kadon of the Southern District of Ohio provided substantial assistance in this matter.

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

A North Carolina engineering firm was sentenced today after pleading guilty to long lasting conspiracies to rig bids and defraud the North Carolina Department of Transportation (NCDOT).

According to court documents, Contech Engineered Solutions LLC (Contech) pleaded guilty to one count of violating the Sherman Act and one count of conspiracy to commit fraud, as charged in a six-count indictment filed in the Eastern District of North Carolina on Oct. 21, 2020. Contech admitted to conspiring to rig bids to the NCDOT and conspiring to defraud the NCDOT in order to fraudulently obtain contracts for infrastructure projects. The conspiracies started at least as early as 2009 and continued at least until March 2018. Former Contech executive Brent Brewbaker was charged as a co-defendant in the same six-count indictment, and he remains under indictment.

“Today’s resolution demonstrates the Antitrust Division’s unwavering commitment to holding accountable those who cheat the competitive process at the expense of the American taxpayer,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “A critical part of that mission is seeking restitution to compensate government victims of public procurement crimes.”

“This is a case about fraud and collusion in the North Carolina bidding process for certain water drainage system components,” said Acting U.S. Attorney G. Norman Acker III for the Eastern District of North Carolina. “All taxpayers lose when companies submit false records in an effort to game the bidding system. I applaud our partners in the Department of Justice for their efforts to halt such practices in North Carolina.”

“Activities related to collusion, bid rigging and market allocation do not promote an environment conducive to open competition which harms the consumer,” said Acting Executive Special Agent in Charge Steven Stuller of the U.S. Postal Service (USPS) Office of Inspector General. “The USPS spends hundreds of millions of dollars on new construction, maintenance and renovation of USPS facilities. Along with the Department of Justice and our federal law enforcement partners, the USPS Office of Inspector General will aggressively investigate those who would engage in this type of harmful conduct.”

“The agreement and sentence imposed should serve as a significant deterrent for anyone who chooses corporate greed over open and fair competition in transportation projects funded with federal dollars,” said Special Agent-in-Charge Jamie Mazzone of the U.S. Department of Transportation Office of Inspector General, Mid-Atlantic Region. “Together with our law enforcement and prosecutorial partners, we will continue our efforts to pursue and uncover corrupt conduct and hold these bad actors accountable.” 

Contech pleaded guilty to one count of bid-rigging under Section One of the Sherman Antitrust Act and one count of conspiring to commit mail and wire fraud. Contech agreed to pay a criminal fine of $7,000,000 and restitution to the NCDOT in the amount of $1,533,988. Contech has also agreed to cooperate with the department’s ongoing investigation.

The Antitrust Division’s Washington Criminal I Section is prosecuting the case, which was investigated with the assistance of the USPS Office of Inspector General, the U.S. Department of Transportation Office of Inspector General, and the U.S. Attorney’s Office for the Eastern District of North Carolina.

Anyone with information concerning market allocation, price fixing, bid rigging, or other anticompetitive conduct related to the aluminum structures industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.

In November 2019, the Department of Justice created the Procurement Collusion Strike Force, a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact procurement and grant and program funding at all levels of government – federal, state, and local. For more information, visit https://www.justice.gov/procurement-collusion-strike-force. 

WASHINGTON - The Department of Justice today announced that it has seized 63.7 bitcoins currently valued at approximately $2.3 million. These funds allegedly represent the proceeds of a May 8, ransom payment to individuals in a group known as DarkSide, which had targeted Colonial Pipeline, resulting in critical infrastructure being taken out of operation. The seizure warrant was authorized earlier today by the Honorable Laurel Beeler, U.S. Magistrate Judge for the Northern District of California.

“Following the money remains one of the most basic, yet powerful tools we have,” said Deputy Attorney General Lisa O. Monaco for the U.S. Department of Justice. “Ransom payments are the fuel that propels the digital extortion engine, and today’s announcement demonstrates that the United States will use all available tools to make these attacks more costly and less profitable for criminal enterprises. We will continue to target the entire ransomware ecosystem to disrupt and deter these attacks. Today’s announcements also demonstrate the value of early notification to law enforcement; we thank Colonial Pipeline for quickly notifying the FBI when they learned that they were targeted by DarkSide.”

“There is no place beyond the reach of the FBI to conceal illicit funds that will prevent us from imposing risk and consequences upon malicious cyber actors,” said FBI Deputy Director Paul Abbate. “We will continue to use all of our available resources and leverage our domestic and international partnerships to disrupt ransomware attacks and protect our private sector partners and the American public.” 

“Cyber criminals are employing ever more elaborate schemes to convert technology into tools of digital extortion,” said Acting U.S. Attorney for the Northern District of California Stephanie Hinds. “We need to continue improving the cyber resiliency of our critical infrastructure across the nation, including in the Northern District of California. We will also continue developing advanced methods to improve our ability to track and recover digital ransom payments.”

On or about May 7, Colonial Pipeline was the victim of a highly publicized ransomware attack resulting in the company taking portions of its infrastructure out of operation. Colonial Pipeline reported to the FBI that its computer network was accessed by an organization named DarkSide and that it had received and paid a ransom demand for approximately 75 bitcoins.

As alleged in the supporting affidavit, by reviewing the Bitcoin public ledger, law enforcement was able to track multiple transfers of bitcoin and identify that approximately 63.7 bitcoins, representing the proceeds of the victim’s ransom payment, had been transferred to a specific address, for which the FBI has the “private key,” or the rough equivalent of a password needed to access assets accessible from the specific Bitcoin address. This bitcoin represents proceeds traceable to a computer intrusion and property involved in money laundering and may be seized pursuant to criminal and civil forfeiture statutes. 

The Special Prosecutions Section and Asset Forfeiture Unit of the U.S. Attorney’s Office for the Northern District of California is handling the seizure, with significant assistance from the Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section and Computer Crime and Intellectual Property Section, and the National Security Division’s Counterintelligence and Export Control Section. The Department components who worked on this seizure coordinated their efforts through the Department’s Ransomware and Digital Extortion Task Force, which was created to combat the growing number of ransomware and digital extortion attacks.

The Task Force prioritizes the disruption, investigation, and prosecution of ransomware and digital extortion activity by tracking and dismantling the development and deployment of malware, identifying the cybercriminals responsible, and holding those individuals accountable for their crimes. The Task Force also strategically targets the ransomware criminal ecosystem as a whole and collaborates with domestic and foreign government agencies as well as private sector partners to combat this significant criminal threat.

A federal court in Ohio ordered a Toledo pharmacy and two of its pharmacists to pay a $375,000 civil penalty and imposed restrictions related to the dispensing of opioids and other controlled substances.

Pursuant to an agreed consent judgment and permanent injunction, the court enjoined Shaffer Pharmacy, along with pharmacist-owner Thomas Tadsen and pharmacist Wilson Bunton, from dispensing certain opioid prescriptions, including combination opioid and benzodiazepine prescriptions. The order also mandates that the defendants undergo periodic comprehensive reviews of their dispensing practices to ensure compliance with the order and the Controlled Substances Act. The consent decree resolves a civil complaint the government filed on Jan. 6, 2021, in the Northern District of Ohio. The complaint alleged that the defendants repeatedly dispensed opioids and other controlled substances in violation of the Controlled Substances Act by ignoring “red flags” – that is, obvious indications of drug diversion and drug-seeking behavior.

“Pharmacies and pharmacists must abide by the Controlled Substances Act and take active steps to ensure opioids are dispensed based on medical legitimacy,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice is committed to working closely with the Drug Enforcement Administration to combat the opioid addiction crisis.”

“With opioid abuse and overdose deaths again on the rise in the Northern District of Ohio, we must remain vigilant in our prevention efforts and in holding those in the medical profession accountable when they are alleged to be unlawfully prescribing or dispensing opioids,” said Acting U.S. Attorney Bridget M. Brennan for the Northern District of Ohio. “We will continue to utilize all of our available enforcement options to address this threat and those who are alleged to be engaged in these unlawful practices.”

The investigation was conducted by the DEA, FBI, Department of Health and Human Services Office of Inspector General, the State of Ohio Board of Pharmacy, the Ohio Bureau of Workers’ Compensation, and the Ohio Attorney General’s Medicaid Fraud Control Unit.

The case is being handled by Assistant U.S. Attorneys Patricia Fitzgerald and Angelita Cruz Bridges of the U.S. Attorney’s Office for the Northern District of Ohio, and Trial Attorneys Scott Dahlquist and Maryann McGuire of the Civil Division’s Consumer Protection Branch.

U.S. Attorney General Merrick B. Garland today announced a series of steps that the Department of Justice is taking to address the threats posed by both corruption and by transnational human smuggling and trafficking networks.

Attorney General Garland announced the establishment of Joint Task Force Alpha, a law enforcement task force that will marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico and the Northern Triangle countries of Guatemala, El Salvador, and Honduras.

“Transnational human smuggling and trafficking networks pose a serious criminal threat,” said Attorney General Garland. “These networks profit from the exploitation of migrants and routinely expose them to violence, injury, and death. The joint efforts we are announcing today will combine investigative, prosecutorial, and capacity-building efforts of both the Departments of Justice and Homeland Security. Our focus will remain on disrupting and dismantling smuggling and trafficking networks that abuse, exploit, or endanger migrants, pose national security threats, and are involved in organized crime. Together, we will combat these threats where they originate and operate.”

In addition to the work of the Joint Task Force, Attorney General Garland directed the Office of Prosecutorial Development, Assistance, and Training (OPDAT) and the International Criminal Investigative Training Assistance Program (ICITAP), in coordination with the State Department, to enhance the assistance provided to counterparts in the Northern Triangle countries and Mexico to support their efforts to prosecute smuggling and trafficking networks in their own courts.

The Joint Task Force will consist of federal prosecutors from U.S. Attorney’s Offices along the Southwest Border (District of Arizona, Southern District of California, Southern District of Texas, and Western District of Texas), from the Criminal Division and the Civil Rights Division, along with law enforcement agents and analysts from DHS’s Immigration and Customs Enforcement and Customs and Border Patrol. The FBI and the Drug Enforcement Administration will also be part of the Task Force. And it will work closely with Operation Sentinel, a recently announced DHS operation focused on countering transnational criminal organizations affiliated with migrant smuggling.

“In our continued efforts to disrupt transnational criminal organizations, and smuggling and trafficking enterprises, the Department of Homeland Security will partner with the Department of Justice to launch Joint Task Force Alpha,” said Secretary of Homeland Security Alejandro N. Mayorkas. “We will take action to identify smugglers and their associates to ensure that we enhance the security of the U.S. border, and help save the lives of vulnerable people these organizations routinely prey upon.”

Joint Task Force Alpha will also complement the Justice Department’s efforts to fight corruption.  The Justice Department will increase its focus on investigations, prosecutions, and asset recoveries relating to corruption in Northern Triangle countries through its Foreign Corrupt Practices Act enforcement program, counternarcotics prosecutions, and Kleptocracy Asset Recovery Initiative. In addition, adopting a Task Force approach, the department’s OPDAT and ICITAP personnel – including new Northern Triangle anti-corruption legal advisors – will work  with Northern Triangle prosecutors and investigators to build corruption cases in those countries themselves, as well as to develop leads that can be pursued by the Kleptocracy Asset Recovery Initiative.

A Maryland tax return preparer was sentenced today to 30 months in prison for conspiracy to defraud the United States and aiding in the preparation of a false tax return.

According to court documents and statements made in court, Anita Fortune, 56, provided tax return preparation services under multiple business names, including Tax Terminatorz Inc. Due to a wire fraud conviction in 2007, Fortune was not eligible to have IRS e-filing privileges. Nevertheless, Fortune prepared and filed returns using IRS e-filing credentials belonging to two co-conspirators, who provided the credentials in exchange for fees and office space. For the tax years 2012 to 2018, Fortune and her associates fraudulently reduced their clients’ tax liabilities and increased their tax refunds by adding fictitious or inflated itemized deductions and business losses to the clients’ returns. The false returns included one that Fortune prepared for an undercover IRS agent. In total, Fortune caused a tax loss to the IRS of $189,748.

In addition to the term of imprisonment, U.S. District Judge Paul W. Grimm ordered Fortune to serve three years of supervised release and to pay approximately $189,748 in restitution to the United States.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Jonathan F. Lenzner for the District of Maryland made the announcement.

The IRS Criminal Investigation investigated the case.

Trial Attorney Kathryn Sparks of the Tax Division and Assistant U.S. Attorney Leah Grossi of the District of Maryland prosecuted the case.

The Justice Department today reached an agreement with the Maine Department of Health and Human Services (DHHS) to resolve alleged violations of the Americans with Disabilities Act (ADA).

A young man with intellectual disabilities (ID) filed a complaint with the Justice Department alleging that Maine imposed restrictions that placed him at serious risk of having to move from his own home into a congregate setting in order to receive the services he needs. Congregate settings are multi-person homes or facilities where residents receive needed services. This agreement will help ensure that Mainers with ID and autism can receive the personal assistance they need in their own homes.    

While Maine’s Medicaid program allows unlimited personal assistance services for people living in congregate settings, the state’s community service program for people with ID and autism limits those same services when they are provided in a person’s own home. As a result, people with disabilities who need more personal assistance, like the young man who filed the complaint, may be forced to leave their homes and move to a segregated setting.

“The ADA requires states to provide disability services in the most integrated setting appropriate,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “This often means ensuring that people with disabilities can receive services in their own homes rather than in congregate settings. The Civil Rights Division will vigorously enforce the ADA to avoid unnecessary segregation of people with disabilities and ensure their full integration into the community.”

“We appreciate Maine DHHS’s cooperation with the department’s investigation,” said Acting U.S. Attorney Donald E. Clark for the District of Maine. “The settlement agreement ensures that this young man, and other Mainers with disabilities, will be able to obtain needed services in their own homes.”

After receiving the complaint, the department opened an investigation under the ADA. Maine fully cooperated with the Justice Department’s investigation. In February 2020, the department issued a letter of findings concluding that Maine was failing to provide the complainant with necessary services in the most integrated setting appropriate to his needs, which is his own home, thus placing him at serious risk of having to enter a congregate setting. The department also found that Maine had failed to modify its service program for people with ID and autism to avoid discrimination. 

Under the agreement reached today, Maine will modify its policies so that people with ID or autism can receive services in the most integrated setting appropriate to their needs. For example, DHHS will implement a process for granting exceptions to its cap on services provided in one’s own home. DHHS will also establish an individualized process for people to assess their options of where they want to live and receive services. For the complainant, DHHS will provide access to all needed in-home services and pay $100,000 in damages. 

On Thursday, a federal court in the Southern District of Florida held two individuals, as well as the company they allegedly co-own, in contempt for violating a preliminary injunction that restricted their tax preparation activities. The court’s order notes defendants “admit that sufficient evidence exists to hold them in contempt of court for violating the preliminary injunction.”

The United States filed a complaint against Wendell Devallon, Berald Dominique, and Tax Time Group Inc. on Dec. 4, 2020, seeking to enjoin them from preparing returns for others. The complaint alleges that Devallon and Dominique co-own Tax Time Group Inc., which has its principal place of business in North Lauderdale, Florida, and additional offices in Charlotte, North Carolina; Niagara Falls, New York; Buffalo, New York; and Evansville, Indiana. According to the complaint, defendants prepared tax returns for customers that claimed fraudulent self-employment expenses, fictitious education credits, and fake charitable contributions, among other schemes. The complaint also alleged that Devallon and Dominique acted as “ghost” preparers, meaning that they acted as paid tax return preparers but did not sign the returns they prepared, as required by law.

On Jan. 13, 2021, the court entered a stipulated preliminary injunction against all three defendants, requiring them to “cease all tax preparation and filing services” at certain offices, including a location at 995 SW 71st Avenue, North Lauderdale, FL 33068.

On May 3, 2021, the United States sought an order to show cause and a temporary restraining order, alleging that Devallon, Dominique, and Tax Time Group Inc. were violating that preliminary injunction. According to the show cause motion, defendants continued to prepare returns out of the 995 SW 71st Avenue location but masked their involvement in the prohibited activities by submitting those returns through entities purportedly based in Indiana and Pennsylvania. The motion for a temporary restraining order alleged that proceeds from the prohibited return preparation were being deposited into five bank accounts, three of which were held in the name of nominee entities. On May 12, 2021, the court entered a temporary restraining order prohibiting Devallon, Dominique, and Tax Time Group Inc. from accessing the funds in those five bank accounts. 

On Thursday, the United States and defendants jointly moved for an order holding defendants in contempt, which motion was granted the same day. The court will determine appropriate sanctions at 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 Texas man pleaded guilty yesterday to federal hate crime charges in the U.S. District Court for the Northern District of Texas.

According to court documents, Daniel Jenkins, 22, of Dallas, pleaded guilty yesterday to a federal hate crime and two other charges in connection with his involvement in a scheme to target gay men for violent crimes, announced Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, Acting U.S. Attorney for the Northern District of Texas Prerak Shah, and FBI Special Agent-in-Charge Matthew J. DeSarno of the Dallas Field Office. Jenkins is the last of four defendants to plead guilty to charges stemming from the scheme.

Jenkins pleaded guilty to one hate crime count, one count of conspiracy to commit hate crimes, kidnapping, and carjacking, and one count of use of a firearm during and in relation to a crime of violence.

“The Department of Justice and the Civil Rights Division are committed to confronting the scourge of hate-based violence gripping communities across our nation,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We denounce hate-based violence in all of its forms, including violence targeting individuals based on sexual orientation and gender identity. We will continue to diligently investigate and prosecute violent, bias-motivated crimes to the fullest extent. As noted by Attorney General Garland, we stand ready to use every tool in our arsenal to address the rise in hate and we will work to hold perpetrators of hate-motivated violence accountable.”  

“These defendants brutalized multiple victims, singling them out due to their sexual orientation. We cannot allow this sort of violence to fester unchecked,” said Acting U.S. Attorney Prerak Shah of the Northern District of Texas. “The Department of Justice is committed to prosecuting hate crimes. In the meantime, we urge dating app users to remain vigilant. Unfortunately, predators often lurk online.”  

“Investigating hate crimes is one of the FBI's highest priorities because of the devastating impact they have on families and communities,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “We are committed to the pursuit of offenders and holding them accountable for perpetrating these harmful crimes. No one should have to live in fear of violence because of who they are, where they are from or what they believe. We will continue working with our law enforcement and community partners to detect and prevent violent incidents motivated by hate or bias. We also urge the public to report any suspected hate crimes to the FBI and local law enforcement.”

According to court documents filed in connection with his guilty plea, Jenkins admitted that he and his co-conspirators used Grindr, a social media dating platform used primarily by gay men, to lure gay men to a vacant apartment and other areas in and around Dallas for robbery, carjacking, kidnapping, and hate crimes over the course of approximately a week in December 2017. Jenkins admitted that he and his co-conspirators held victims against their will; pointed a handgun at victims and took their personal property, including their vehicles; and traveled to local ATMs to withdraw cash from the victims’ accounts. Jenkins further admitted that he and his co-conspirators physically injured at least one victim and taunted the victims based upon the co-conspirators’ perception of the men’s sexual orientation. 

In March 2019, Michael Atkinson pleaded guilty to conspiracy and kidnapping charges in connection with this case. In December 2019, Daryl Henry and Pablo Ceniceros-Deleon pleaded guilty to a federal hate crime and other charges in connection with this case. Sentencing for these three defendants is set for June 23.  

Daniel Jenkins’ sentencing is set for Oct. 6. Pursuant to the terms of the plea agreement, Jenkins faces a sentence of up to 26 years in prison.

The FBI’s Dallas Field Office conducted the federal investigation; a separate criminal investigation is being conducted by the Dallas Police Department. Special Litigation Counsel Rose E. Gibson and Trial Attorney Kathryn Gilbert of the Justice Department’s Civil Rights Division along with Assistant U.S. Attorney Nicole Dana of the Northern District of Texas are prosecuting the case.

NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on May 26, 2021, ZYETA RUDOLPH, age 42, a resident of Orleans Parish, Louisiana, was sentenced to serve 37 months in the custody of the United States Bureau of Prisons for participating in a conspiracy to distribute cocaine.  RUDOLPH was also sentenced to 4 years of supervised release following imprisonment and payment of a $100 mandatory special assessment fee. 

These charges stemmed from an investigation by both the United States Drug Enforcement Administration and the Plaquemines Parish Sheriff’s Office into the illegal distribution of drugs in  South Louisiana and Houston, Texas.  This investigation led to the Indictment of Paul Metz, Eugene Rudolph, Elbert Childs, ZYETA RUDOLPH, Yrian Devoure, and Dale Phillips back in May 2019 under case number 19-087 “H”.  To date, Elbert Childs, ZYETA RUDOLPH, and Dale Phillips have pled guilty.

During her guilty plea in this case, ZYETA RUDOLPH admitted that she was a drug courier for her brother Gene Rudolph.  She acknowledged that she had transported between 3.5 and 5 kilograms of cocaine from Houston to the greater New Orleans area on behalf of her brother. 

The case was investigated by the Drug Enforcement Administration (D.E.A.), and the Plaquemines Parish Sheriff’s Office.  Assistant United States Attorney Maurice Landrieu is in charge of the prosecution.

*   *   *

Lone Star Industries Inc, a subsidiary of Italian company Buzzi Unicem, has agreed to upgrade and optimize pollution control equipment and procedures at its cement manufacturing facility in Greencastle, Indiana, to resolve Clean Air Act (CAA) violations brought by the U.S. Environmental Protection Agency (EPA) and the State of Indiana Department of Environmental Management.

The complaint filed simultaneously with the settlement alleges numerous, longstanding Clean Air Act violations at the Greencastle plant that date from 2010 to the present. Many of the violations involved opacity in emissions that exceeded state and federal limits. Opacity measures the amount of light blocked by emissions of particulate matter. Particulate matter, especially fine particulates, contains microscopic solids or liquid droplets, which can migrate deep into the lungs and cause serious health problems. The complaint also alleges violations of CAA requirements that limit emissions of other hazardous air pollutants from the burning of hazardous wastes which Lone Star uses to heat its cement kilns.

“This settlement is a reminder that industrial facilities must comply with the law and prevent illegal emissions of harmful pollutants from plant operations,” said Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division (ENRD). “The settlement requires Lone Star to improve its processes and pollution controls to protect air quality and the public health in surrounding communities.”

“The health of the citizens of the State of Indiana is a top priority of my office,” said Acting U.S. Attorney John Childress of the Southern District of Indiana. “Successful efforts such as this protect and preserve the environment for current and future generations and demonstrate our ongoing dedication to that goal.”

“EPA is committed to improving air quality in Indiana in order to protect people’s health and the environment,” said Acting EPA Region 5 Administrator Cheryl Newton. “Reducing particulate matter especially benefits vulnerable populations such as children, older adults, and people with heart or lung diseases.”

Under the settlement, Lone Star also will pay $729,000 in civil penalties, split equally between the United States and the State of Indiana, and will undertake additional measures not required by law to mitigate past violations of CAA opacity limits.

EPA estimates that the measures in the consent decree will reduce emissions of particulate matter from the Lone Star plant by 2.44 tons per year, carbon monoxide emissions by 46.39 tons per year, and other hazardous air pollutants by 1.69 tons per year. Lone Star will spend approximately $1.4 million at the Greencastle facility to bring it into compliance and to mitigate for past harm.

The settlement was lodged in the U.S. District Court for the Southern District of Indiana 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.

Information about EPA Region 5's air enforcement program is at http://www.epa.gov/region5/air/enforce/index.html.

Potential environmental violations may be reported at http://www.epa.gov/compliance/complaints.

The Justice Department today announced it has reached an agreement with defendant Larry Nelson to resolve a Fair Housing Act lawsuit alleging that he sexually harassed female tenants while owning and managing San Diego area rental properties.  

Under the consent order entered by the U.S. District Court for the Southern District of California, Nelson must pay at least $230,000 to $205,000 in damages to tenants harmed by his harassment and a $25,000 civil penalty to the United States. A judgment for an additional $350,000 also was entered against Nelson in favor of the United States, but is suspended based on sworn disclosure statements reflecting Nelson’s financial situation. Any misrepresentation or omission by Nelson on those disclosure statements will trigger collection of the suspended judgment. Nelson also is prohibited from being involved in property management of rental units in the future and must hire an independent professional property manager. He also must implement a nondiscrimination policy and complaint procedure and must release judgments obtained against victims whom he wrongfully evicted.  

The United States’ lawsuit alleged that Nelson’s harassment spanned a period of nearly two decades. The allegations included that Nelson engaged in unwelcome sexual touching, offered to reduce monthly rental payments in exchange for sex, made unwelcome sexual comments and advances, made intrusive and unannounced visits to female tenants’ homes to further his sexual advances, and evicted or threatened to evict female tenants who objected to or refused his sexual advance.

“People deserve to be safe in their homes,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Sexual harassment in housing deprives them of that security. The Justice Department will not tolerate landlords who abuse their power by sexually harassing their tenants and will continue vigorously to pursue allegations of sexual harassment.”

“Abusive landlords in San Diego and Imperial counties should be on notice that protecting the civil rights of citizens in our district is a top priority, and we do not tolerate discrimination and harassment in housing,” said Acting U.S. Attorney Randy S. Grossman for the Southern District of California. “Holding a key to someone’s property is a position of trust, not a license to engage in illegal sexual harassment and sexual demands.”

This case was jointly litigated by attorneys in the Civil Rights Division and the Civil Division of the U.S. Attorney’s Office for the Southern District of California.  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 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 $2.5 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, e-mailing 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.   

FALLS CHURCH, VA – The Executive Office for Immigration Review (EOIR) today announced it has recently been notified of phone calls that spoof the Office of the Chief Immigration Judge as part of a misinformation campaign. The callers will often “spoof,” or fake, the Office of the Chief Immigration Judge’s main line, 703-305-1247, so the calls appear to be coming from EOIR on the recipient’s caller ID.

In this scam, fraudulent callers posing as EOIR employees request personal information from the victims. These calls are fraudulent; EOIR personnel do not call individuals from this number about case-related matters. To protect yourself, be wary of answering phone calls from numbers you do not recognize. Never give out your personal information over the phone to individuals you do not know.

If you have a question about your case, please call the Automated Case Information Hotline at  1-800-898-7180, or visit the Automated Case Information System (https://portal.eoir.justice.gov/InfoSystem) or the Immigration Court Online Resource (https://icor.eoir.justice.gov).

A federal grand jury in Billings, Montana, returned an indictment on May 20 charging a Montana man with hate crime and firearm violations for allegedly firing a gun into an individual’s house and threatening the individual with violent, homophobic slurs.

According to court documents, John Russell Howald, 44, of Basin, is charged with violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, and with the use of a firearm during and in relation to a crime of violence. The indictment alleges that on March 22, 2020, in Basin, Howald attempted to injure an individual because of their actual and perceived sexual orientation by discharging a firearm into the individual’s house, stating that he wanted to “get rid of the lesbians [and] gays.” The offense included an attempt to kill the individual.

Howald is scheduled for an arraignment on June 29 before a U.S. Magistrate Judge in Great Falls. If convicted, Howald faces up to life in prison on the hate crime charge and a mandatory minimum of 10 years in prison, consecutive to any other sentence, on the firearm charge.

A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and Acting U.S. Attorney Leif M. Johnson of the District of Montana made the announcement.

Assistant U.S. Attorney Brendan McCarthy of the District of Montana and Trial Attorney Eric Peffley of Civil Rights Division’s Criminal Section are prosecuting the case. The FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Jefferson County Sheriff’s Office investigated the case.

An indictment is merely an allegation and the defendant is presumed innocent 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.

A federal court permanently enjoined a Henderson, Nevada, company from preparing, processing and distributing adulterated and misbranded bottled water.

In a complaint filed on May 19, at the request of the U.S. Food and Drug Administration (FDA), the United States alleged that AffinityLifestyles.com Inc. and Real Water Inc., along with company officers Brent A. Jones and his son, Blain K. Jones, violated the Federal Food, Drug, and Cosmetic Act by distributing adulterated and misbranded bottled water. The companies formerly distributed bottled water under the brand names “Re2al Water Drinking Water” and “Re2al Alkalized Water.” While the companies marketed their products as a healthy alternative to tap water, the government alleged that the products in fact consisted of municipal tap water that the defendants processed with various chemicals in violation of current good manufacturing practices, relevant food safety standards and hazard prevention measures.

According to the complaint filed in the U.S. District Court for the District of Nevada, the FDA received information that at least five children experienced acute non-viral hepatitis (resulting in acute liver failure) after drinking Re2al Water. The FDA documented other consumer complaints of illness, including nausea and vomiting, related to the Re2al Water. Subsequently, the agency warned consumers, restaurants, distributors and retailers not to drink, cook with, sell or serve the product.

“Food and water sold to consumers must be safe,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department's Civil Division. “The Department of Justice will continue to work closely with the Food and Drug Administration to ensure that bottled water and other products we eat and drink are manufactured in compliance with the law.”

“As consumers, we count on bottled water companies to take appropriate measures in ensuring their water doesn’t make our families sick, particularly children,” said Acting U.S. Attorney Christopher Chiou for the District of Nevada. “The permanent injunction imposed on Real Water reflects the Department of Justice’s and FDA’s commitment to protecting the health of Nevadans and consumers across the country.”

The complaint alleges that FDA inspections found: (a) multiple regulatory violations in the companies’ manufacturing processes, including significant deviations from preventative control requirements intended to control the risk of hazards in food; and (b) multiple failures to follow current good manufacturing practice requirements for water bottling facilities.

“We are committed to preventing harmful products from entering the nation’s food supply, and we will take enforcement action when a company fails to follow the law,” said FDA Associate Commissioner for Regulatory Affairs Judy McMeekin, Pharm.D. “The FDA, together with our federal counterparts at the U.S. Department of Justice, aggressively pursued this injunction and we will continue to take swift action to protect consumers.”

The defendants agreed to settle the suit and be bound by a consent decree of permanent injunction. The order entered by the federal court permanently enjoins the defendants from violating the Food, Drug, and Cosmetic Act and requires that they destroy any food, including any bottled water products, still in their possession. As part of the settlement, the defendants represented that they are no longer engaged in processing, preparing, packing or distributing water or any other type of food. Before processing or distributing any food in the future, the defendants first must notify the FDA in advance, comply with specific remedial measures set forth in the injunction, and permit the FDA to inspect their facilities and procedures.

Trial Attorneys Brianna Gardner and Sarah Williams of the Civil Division’s Consumer Protection Branch are handling the case with the assistance of Assistant U.S. Attorney Troy Flake of the U.S. Attorney’s Office for the District of Nevada and Associate Chief Counsel Jennifer Argabright of the FDA’s Office of the Chief Counsel.

The Department of Justice announced today that it will require Zen-Noh Grain Corp. (ZGC) to divest nine grain elevators in nine geographic areas located in five states along the Mississippi River and its tributaries in order to proceed with its proposed $300 million acquisition of 35 operating and 13 idled grain elevators from Bunge North America Inc. 

The Justice Department’s Antitrust Division filed a civil antitrust lawsuit in the U.S. District Court for the District of Columbia to block the proposed merger. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the department’s competitive concerns.

“American farmers produce the crops that feed our nation and the world,” said Acting Assistant Attorney General Richard Powers of the Justice Department’s Antitrust Division. “Without this comprehensive divestiture, many American farmers would have faced lower prices for the corn and soybeans they produce. The divestiture of these assets protects vital competition in our nation’s agricultural industry.”

According to the complaint, the defendants are two of only a small number of competing grain purchasers in nine geographic areas. Without the required divestiture, the combined company likely would have been able to pay less for grain and lower the quality of services offered to farmers. The divestiture ensures that the buyer of the grain elevators will be well positioned to compete vigorously with the merged company in the purchase of corn and soybeans in the affected markets, preserving competition for the benefit of farmers in Arkansas, Iowa, Illinois, Louisiana and Missouri.

The divestiture required under the settlement would, if approved by the court, require ZGC to sell the grain elevators to Viserion Grain LLC (Viserion) or an alternative acquirer approved by the United States. Viserion’s management team has substantial experience in the grain industry.

Zen-Noh Grain Corporation, headquartered in Covington, Louisiana, is the U.S. subsidiary of the National Federation of Agriculture Cooperative Associations of Japan, Zen-Noh. Zen-Noh Grain Corporation trades and exports corn, soybeans, sorghum, wheat and byproducts from its export elevator in Convent, Louisiana, to Japan and other global markets.

Bunge North America Inc. is the North American arm of Bunge Limited. Bunge North America is headquartered in Chesterfield, Missouri. Its operations include grain origination, grain processing and grain trading. 

Viserion Grain LLC is owned by Viserion International Holdco LLC, a Colorado-based global agriculture merchant formed with the financial backing of Pinnacle Management L.P. Pinnacle is a $3.2 billion private, New York-based alternative asset management firm that maintains a focus on global commodity markets and trading.

As required by the Tunney Act, the proposed settlement, along with a competitive impact statement will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Robert Lepore, Chief, Transportation, Energy and Agriculture Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street NW, Suite 8000, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may enter the final judgment upon finding it is in the public interest.

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

Four defendants pleaded guilty to federal dogfighting and conspiracy charges for their roles in an inter-state dogfighting network across the District of Columbia, Maryland, Virginia and New Jersey.

The Honorable John A. Gibney Jr., U.S. District Judge in Richmond, Virginia, accepted the following pleas:

• On June 1, Odell S. Anderson Sr., 52, of the District of Columbia, pleaded guilty to one felony count of conspiracy to violate the animal-fighting prohibitions of the Animal Welfare Act by conspiring with others to sponsor and exhibit dogs in a dog fight, as well as to buy, sell, possess, train, transport, deliver, and receive dogs for the purposes of having those dog participate in animal-fighting ventures. Additionally, Anderson pleaded guilty to one felony count of causing a child under the age of sixteen to attend an animal-fighting venture;
• On May 10, Emmanuel A. Powe Sr., 46, of Frederick, Maryland, also pleaded guilty to one felony count of conspiracy to violate the animal-fighting prohibitions of the Animal Welfare Act; and
• On April 28, Chester A. Moody Jr., 46, of Glenn Dale, Maryland; and Carlos L. Harvey, 46, of King George, Virginia, each pleaded guilty to the same conspiracy.

According to court documents filed in connection with the cases, from April 2013 through July 11, 2018, the pleading defendants and their co-conspirators participated in animal-fighting ventures, involving training, transporting, breeding and dogfighting setups, including at least one specific “two-card” dogfighting event on April 3, 2016. For that event, Anderson, Powe and Harvey met up with others in the Walmart parking lot in King George, Virginia, and then traveled to another location for a fight. Moody, Powe and Anderson then participated in a pre-scheduled “two-card” dogfight, which involves two separate dogfights with different dogs and handlers. The dogfighters subjected the dogs to arduous training for several weeks before the fighting event. At least one of the dogs died due to its injuries in this dog fight.

The defendants each also maintained other fighting dogs at their residences, as well as dogfighting equipment including dog treadmills, “med kits,” “breeding stands” (to immobilize female dogs), and chains weighing up to several pounds per linear foot. Each animal-fighting charge carries a maximum sentence of five years in prison and a $250,000 fine. The charge against Anderson of taking a minor to attend a dog fight carries a maximum sentence of three years in prison and a $250,000 fine.

“Organized dogfighting — whether on a professional, hobbyist or street fighter level — has no place in our society,” said Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division. “Dogfighting is an extremely violent and secretive venture of animal abuse, and bringing young children to these fighting events exposes another generation to indifference towards animal cruelty and disrespect for the law against this ruthless and illegal activity.”

“Dogfighting is absolutely intolerable and callously subjects defenseless animals to inhumane treatment and abuse,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “We must protect and care for these animals—not cruelly turn them against each other for profit. Those who engage in this deplorable conduct will face justice to the fullest extent of the law.”

“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity,” said Special Agent in Charge Bethanne M. Dinkins of the U.S. Department of Agriculture-Office of Inspector General (USDA-OIG). “Together with the Department of Justice, animal fighting is an investigative priority for USDA-OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”

This case was prosecuted as part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dogfighting. The phrase “Grand Champion” is used by dogfighters to refer to a dog with more than five dogfighting “victories.”

The Humane Society of the United States, along with other entities, assisted with the care of the dogs seized by federal law enforcement.

The government is represented by Trial Attorney Shennie Patel of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Olivia L. Norman of the U.S. Attorney’s Office for the Eastern District of Virginia. The case is being investigated by the USDA-OIG, with assistance from the FBI.

The district court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Attorney General Merrick B. Garland met virtually with Karen Andrews, Australia’s Minister for Home Affairs. In this inaugural meeting, the Attorney General and Home Affairs Minister reaffirmed their shared commitment to deepening our bilateral cooperation on countering common threats, including those posed by terrorism and cybercrime. The two leaders also discussed their intention to work to promote infrastructure security and combat online child sexual exploitation and abuse. They look forward to further in-depth discussions on these and other issues central to the protection of the citizens of both our countries.

The Justice Department today announced it has reached a settlement agreement with the Hazleton Police Department (HPD) and the City of Hazleton, Pennsylvania, to help people with limited English proficiency (LEP) communicate with the police.

The agreement resolves a Justice Department investigation of the HPD under Title VI of the Civil Rights Act of 1964. Title VI prohibits discrimination on the basis of race, color, and national origin by recipients of federal assistance, such as the HPD. The Justice Department initiated its review after receiving a complaint from the Community Justice Project on behalf of an LEP Hazleton resident who had been forced to rely on his young son and a co-worker to communicate with the police. HPD has since agreed to secure appropriate and reliable means of communicating with the City’s large Spanish-speaking community. 

"Timely and accurate communication between limited English proficient residents and police officers is essential to public safety,” said Assistant Attorney General Kristen Clarke for the Civil Rights Division. "The changes required by this agreement will benefit crime victims and witnesses, but also help police officers do their jobs. We are pleased that Hazleton’s City and Police Department leadership support improvements to police policy and practices on language services."

“Our office is proud to have joined with the Civil Rights Division on this important case,” said Acting U.S. Attorney Bruce D. Brandler for the Middle District of Pennsylvania. “Ensuring that all individuals can communicate with law enforcement officers benefits all involved and is fundamental to our democracy.”

Under the agreement, HPD will soon release a new standard operating procedure on language access that requires HPD officers to provide appropriate language assistance in any contacts with LEP community members. Over the next year, HPD and the City will take a number of additional steps, including providing Spanish and English language notices and complaint forms, assessing language skills of bilingual officers, and training staff on how and when to access interpreters and translations.  

Enforcement of Title VI of the Civil Rights Act of 1964 is a top priority of the Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and information about limited English proficiency and Title VI is available at www.lep.gov. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/.

El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con la Policía de Hazleton («HPD», por sus siglas en inglés) y la Ciudad de Hazleton, Pennsylvania, para ayudar a personas cuyo dominio del inglés es limitado («LEP», por sus siglas en inglés) a comunicarse con la policía.

El acuerdo resuelve una investigación liderada por el Departamento de Justicia de la HPD en virtud del Título VI de la ley de Derechos Civiles de 1964. El Título VI prohíbe la discriminación por motivos de raza, color de piel y nacionalidad de origen por parte de beneficiarios de fondos federales, tales como la HPD. El Departamento de Justicia inició su investigación tras recibir una querella del Community Justice Project [Proyecto Comunitario para la Justicia] en nombre de un residente LEP de Hazleton que se había visto obligado a usar a su hijo pequeño y un colega de trabajo para comunicarse con la policía. Desde entonces, la HPD ha acordado conseguir medios apropiados y fiables de comunicación con la gran comunidad hispanoparlante de la ciudad.

«La comunicación oportuna y precisa entre residentes con un dominio limitado del inglés y agentes de policía es esencial para la seguridad pública», afirmó la Fiscal General Auxiliar de la División de Derechos Civiles Kristen Clarke. «Los cambios que este recuerdo requiere beneficiarán a víctimas y testigos, pero también ayudarán a los agentes de policía a hacer su trabajo. Estamos muy contentos de ver que los líderes en Ciudad de Hazleton y su Policía apoyan mejoras a las políticas y prácticas de la policía en lo que estos se refieren a servicios lingüísticos».

«Nuestra oficina se enorgullece de haberse unido a la División de Derechos Civiles en este importante caso», dijo el fiscal federal interino Bruce D. Brandler. «Asegurar que todas las personas puedan comunicarse con los agentes del orden beneficia a todos los involucrados y es fundamental para nuestra democracia».

Conforme este acuerdo, dentro de poco, la HPD publicará un nuevo procedimiento operativo estándar sobre el acceso lingüístico para la provisión de asistencia lingüística apropiada durante cualquier contacto con miembros comunitarios LEP. Durante el próximo año, la HPD y la Ciudad tomarán unas medidas adicionales, entre ellas la provisión de notificaciones y formularios de demanda en inglés y español, la evaluación de los conocimientos lingüísticos de sus agentes bilingües y la capacitación del personal en cuanto a cómo y cuándo acceder a intérpretes o traducciones.

La ejecución del Título VI de la ley de Derechos Civiles de 1964 representa una de las prioridades principales de la División de Derechos Civiles. Para más información sobre la División de Derechos Civiles, vaya a su sitio web en www.justice.gov/crt-espanol. Para más información sobre el dominio limitado del inglés y el Título VI, vaya a www.lep.gov. Miembros del público también pueden informar de posibles vulneraciones de derechos civiles en  https://civilrights.justice.gov/report/.   

El Departamento de Justicia resuelve una investigación de las barreras lingüísticas en la Policía de Hazleton

El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con la Policía de Hazleton («HPD», por sus siglas en inglés) y la Ciudad de Hazleton, Pennsylvania, para ayudar a personas cuyo dominio del inglés es limitado («LEP», por sus siglas en inglés) a comunicarse con la policía.

El acuerdo resuelve una investigación liderada por el Departamento de Justicia de la HPD en virtud del Título VI de la ley de Derechos Civiles de 1964. El Título VI prohíbe la discriminación por motivos de raza, color de piel y nacionalidad de origen por parte de beneficiarios de fondos federales, tales como la HPD. El Departamento de Justicia inició su investigación tras recibir una querella del Community Justice Project [Proyecto Comunitario para la Justicia] en nombre de un residente LEP de Hazleton que se había visto obligado a usar a su hijo pequeño y un colega de trabajo para comunicarse con la policía. Desde entonces, la HPD ha acordado conseguir medios apropiados y fiables de comunicación con la gran comunidad hispanoparlante de la ciudad. 

«La comunicación oportuna y precisa entre residentes con un dominio limitado del inglés y agentes de policía es esencial para la seguridad pública», afirmó la Fiscal General Auxiliar de la División de Derechos Civiles Kristen Clarke. «Los cambios que este recuerdo requiere beneficiarán a víctimas y testigos, pero también ayudarán a los agentes de policía a hacer su trabajo. Estamos muy contentos de ver que los líderes en Ciudad de Hazleton y su Policía apoyan mejoras a las políticas y prácticas de la policía en lo que estos se refieren a servicios lingüísticos».

«Nuestra oficina se enorgullece de haberse unido a la División de Derechos Civiles en este importante caso», dijo el fiscal federal interino Bruce D. Brandler. «Asegurar que todas las personas puedan comunicarse con los agentes del orden beneficia a todos los involucrados y es fundamental para nuestra democracia».

Conforme este acuerdo, dentro de poco, la HPD publicará un nuevo procedimiento operativo estándar sobre el acceso lingüístico para la provisión de asistencia lingüística apropiada durante cualquier contacto con miembros comunitarios LEP. Durante el próximo año, la HPD y la Ciudad tomarán unas medidas adicionales, entre ellas la provisión de notificaciones y formularios de demanda en inglés y español, la evaluación de los conocimientos lingüísticos de sus agentes bilingües y la capacitación del personal en cuanto a cómo y cuándo acceder a intérpretes o traducciones. 

La ejecución del Título VI de la ley de Derechos Civiles de 1964 representa una de las prioridades principales de la División de Derechos Civiles. Para más información sobre la División de Derechos Civiles, vaya a su sitio web en www.justice.gov/crt-espanol. Para más información sobre el dominio limitado del inglés y el Título VI, vaya a www.lep.gov. Miembros del público también pueden informar de posibles vulneraciones de derechos civiles en https://civilrights.justice.gov/report/.