Showing posts with label U.S. JUSTICE DEPARTMENT. Show all posts
Showing posts with label U.S. JUSTICE DEPARTMENT. Show all posts

Sunday, August 5, 2012

ANTIQUE DEALER PLEADS GUILTY TO TRAFFICKING IN RHIOCEROS HORN

Photo: Black Rhinoceros. Credit: U.S. Fish And Wildlife Service
FROM:  U.S. JUSTICE DEPARTMENT

WASHINGTON – David Hausman, an antiques dealer in Manhattan, pleaded guilty today in Manhattan federal court to obstruction of justice and creating false records, in relation to illegal rhinoceros horn trafficking, announced Ignacia S. Moreno, Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice, and Preet Bharara, U.S. Attorney for the Southern District of New York.

In the plea agreement, Hausman admitted that he committed these wildlife offenses while holding himself out to the U.S. Fish & Wildlife Service (FWS) as an antiques expert who purportedly wanted to help FWS investigate rhinoceros horn trafficking; in reality, he was covertly engaging in illegal activity himself. Hausman was arrested in February 2012 as part of "Operation Crash," a nationwide, multi-agency crackdown on those involved in the black market trade of endangered rhinoceros horn.

"Trafficking in endangered species like the black rhinoceros is an egregious violation of the laws enacted by Congress to protect endangered species from extinction," said Assistant Attorney General Moreno. "Mr. Hausman misled officers in a federal government investigation, falsified records and concealed his own purchase, sale and profit from illegal trade in black rhinoceros horns. This prosecution should send a strong message that we will vigorously prosecute those who deliberately violate wildlife protection laws."

"David Hausman pretended he was helping law enforcement protect a species from being wiped out but instead he was contributing to the very problem," said U.S. Attorney Bharara. "The laws that protect animals are not optional and will be enforced by this office vigorously since an important, even if less recognized, measure of justice is how we enforce the laws that protect endangered species. Thanks to the outstanding investigative work conducted by law enforcement in this case, Hausman’s deceptions were unsuccessful and he will now be held to account for his crimes."

Rhinoceros are an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under United States and international law, and all black rhinoceros species are endangered.

Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets. Nevertheless, the demand for Rhinoceros horn and black market prices have skyrocketed in recent years due to the value that some cultures have placed on ornamental carvings, good luck charms or alleged medicinal purposes, leading to a decimation of the global rhinoceros population.

Operation Crash is a continuing investigation being conducted by the Department of the Interior’s FWS in coordination with other federal and local law enforcement agencies including U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. A "crash" is the term for a herd of rhinoceros. Operation Crash is an ongoing effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns. The investigation is being led by the Special Investigations Unit of the FWS Office of Law Enforcement and involves a nationwide task force of agents focused on rhino trafficking.

According to the information, plea agreement and statements made during court proceedings:

In December 2010, Hausman – while purporting to help the government crack down on illegal rhinoceros trading – advised FWS that the taxidermied head of a black rhinoceros containing two horns had been illegally sold by a Pennsylvania auction house. Upon learning that the sale was not finalized, Hausman covertly purchased the rhinoceros mount himself, using a "straw buyer" to conceal that he was the true purchaser because federal law prohibits interstate trafficking in endangered species. Hausman instructed the straw buyer not to communicate with him about the matter by email to avoid creating a paper trail that could be followed by law enforcement. After the purchase was completed, Hausman directed the straw buyer to remove the horns and mail them to him. He then made a realistic set of fake horns using synthetic materials and directed the straw buyer to attach them on the rhinoceros head in order to deceive law enforcement in the event that they conducted an investigation. After his arrest in February 2012, Hausman contacted the straw buyer and they agreed that the rhinoceros mount should be burned or concealed.

In a second incident, in September 2011, Hausman responded to an Internet offer to sell a (different) taxidermied head of a black rhinoceros containing two horns. Unbeknownst to Hausman, the on-line seller was an undercover federal agent. Before purchasing the horns on Nov. 15, 2011, Hausman directed the undercover agent to send him an email falsely stating that the mounted rhinoceros was over 100 years old, even though the agent had told Hausman that the rhinoceros mount was only 20 to 30 years old. There is an antique exception for certain trade in rhinoceros horns that are over 100 years old. By creating the false record as to the age of the horns, Hausman sought to conceal his illegal conduct. Hausman also insisted on a cash transaction and told the undercover agent not to send additional emails so there would be no written record. After buying the black rhinoceros mount at a truck stop in Princeton, Ill., agents followed Hausman and observed him sawing off the horns in a motel parking lot.

In February 2012 at the time of his arrest, FWS agents seized four rhinoceros heads from Hausman’s apartment as well as six black rhinoceros horns – two of which were the very horns he was seen sawing off in the parking lot – numerous carved and partially carved rhinoceros horns, fake rhinoceros horns and $28,000 in cash.

Hausman, 67, of New York, N.Y., pleaded guilty to one count of obstruction of justice, which carries a maximum penalty of 20 years in prison, and one count of creating a false record in violation of the Lacey Act, a federal wildlife protection statute, which carries a maximum penalty of five years in prison. Hausman faces a maximum sentence of 25 years in prison for these offenses. Under the terms of the plea agreement, almost all of the items recovered from Hausman’s apartment at the time of his arrest will be forfeited or put toward the criminal fine, except for three items for which Hausman established legal purchase and antique status. He is scheduled to be sentenced by U.S. District Judge J. Paul Oetken on Dec. 5, 2012, at 2:00 p.m.

U.S. Attorney Bharara and Assistant Attorney General Moreno commended FWS and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Newark for their outstanding work in this investigation.

The case is being handled by the U.S. Attorney’s Complex Frauds Unit and the Environmental Crimes Section of the U.S. Department of Justice’s Environment and Natural Resources Division. Assistant U.S. Attorney Janis M. Echenberg and Richard A. Udell, a Senior Trial Attorney with the Environmental Crimes Section, are in charge of the prosecution.

Saturday, August 4, 2012

THE WHITE HOUSE NEIGHBORHOOD REVITALIZATION INITIATIVE

"If poverty is a disease that infects an entire community in the form of unemployment and violence; failing schools and broken homes, then we can’t just treat those symptoms in isolation. We have to heal that entire community. And we have to focus on what actually works."
-Barack Obama, July 18, 2007

FROM: U.S. JUSTICE DEPARTMENT, BUREAU OF JUSTICE ASSISTANCE

Thursday, August 2, 2012

Department of Justice and Partner Agencies Announce Neighborhoods to Receive Innovative Support Through the Building Neighborhood Capacity Program

The Department of Justice’s Bureau of Justice Assistance (BJA), on behalf of the White House Neighborhood Revitalization Initiative (NRI), today announced the eight neighborhoods that will receive training and technical assistance through the groundbreaking Building Neighborhood Capacity Program (BNCP). These competitively selected neighborhoods are located in Flint, Mich.; Fresno, Calif.; Memphis, Tenn.; and Milwaukee.

BNCP, a core component of NRI, is designed to help distressed neighborhoods transform themselves into neighborhoods of opportunity by building capacity around critical elements such as public safety, education, housing, human services and health. Funded through an interagency agreement among the Departments of Justice, Education, and Housing and Urban Development, BNCP will provide intensive training and technical assistance to faith based, nonprofit and community organizations over a period of at least 20 months to help these neighborhoods design and begin pursuing results-driven, sustainable revitalization plans.

"As we’ve seen in too many communities across the country, neighborhoods that have experienced persistent distress often lack the tools to overcome the challenges to revitalization," said Attorney General Eric Holder. " The Building Neighborhood Capacity Program helps these neighborhoods build the infrastructure and tap into the resources necessary to establish and sustain successful renewal efforts."

The selected neighborhoods within the four chosen cities are Flint’s Ward 1 and Ward 3 neighborhoods, Memphis’s Binghampton and Frayser neighborhoods, Milwaukee’s Amani and Metcalfe Park neighborhoods, and Fresno’s El Dorado and Southwest neighborhoods. These communities demonstrated a high need as well as the drive, citizen engagement, and commitment to success necessary to develop capacity around the essential elements of healthy neighborhoods.

The Center for the Study of Social Policy, a nonprofit public policy, research and technical assistance organization with nearly 30 years of experience, was competitively selected to provide training and technical assistance to these neighborhoods and to establish and manage an on-line resource center for anyone interested in sustainable revitalization.

"Poverty should never be destiny," said U.S. Secretary of Education Arne Duncan. "Through programs like BNCP that offer targeted support to distressed communities for safety, health services, and particularly greater access to a high-quality education, more children and families will have the tools necessary to be successful."

"HUD is proud to stand with our partners at Justice and Education to provide these cities the tools they need to revitalize neighborhoods," said HUD Secretary Shaun Donovan. "Through collaborations like this one, we are better aligning federal resources to execute place-based strategies to transform distressed, high-poverty neighborhoods into places that offer hope and opportunity to current families and future generations."

"The Building Neighborhood Capacity Program focuses on the nation’s neediest neighborhoods. BNCP blends the latest research on effective placed-based policing strategies, efforts on building community efficiency and lessons learned from BJA’s smart policing program into one innovative approach to community revitalization," said BJA Director Denise E. O’Donnell. "BJA is proud to lead the Department of Justice’s effort, in collaboration with our federal partners, on this innovative cross-funded program."

Monday, July 30, 2012

SEATTLE AGREES TO REFORM POLICE DEPARTMENT TO INSURE CONTITUTIONAL POLICING

FROM: U.S. JUSTICE DEPARTMENT
Friday, July 27, 2012
Justice Department Announces Agreement with City of Seattle to Implement Reforms of Seattle Police Department

The United States has entered into a comprehensive, cooperative agreement with the city of Seattle to implement sustainable reforms within the Seattle Police Department (SPD), the Justice Department announced today. The agreement seeks to resolve issues raised by the Justice Department’s investigation into SPD through federal court oversight of reform efforts to ensure effective and constitutional policing in Seattle. The agreement includes a settlement agreement and stipulated order of resolution (settlement agreement), filed in federal court in Seattle today, that is subject to an independent monitor and court oversight, and separately a memorandum of understanding (MOU) to be enforced by the parties with community oversight and the assistance of the monitor.

The settlement agreement will require SPD to revise its use of force policies and enhance its training, reporting, investigations and supervision of uses of force. It also requires revisions to policies, training and supervision relating to both bias-free policing and stops and detentions; improves supervision and accountability mechanisms to ensure implementation of the reforms on the ground; and creates the Community Police Commission, a civilian oversight board with responsibilities regarding particular areas of reform detailed in the settlement agreement and MOU. The settlement agreement is subject to approval of a federal judge and must be court-ordered.

The MOU is an agreement that will be enforced by the parties with community oversight. The MOU specifically provides for the Community Police Commission to assess SPD’s outreach efforts and initiatives; provide input regarding data collection around stops and detention; and ensure transparency and public reporting. As part of the MOU, the Community Police Commission also will lead a review of the structure of the city’s police accountability system.

"This agreement provides a blueprint for reform with innovative methods for ensuring community engagement and sustainability," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "We look forward to continuing our partnership with the city, Mayor McGinn, the Seattle Police Department and the community to ensure that effective and constitutional policing takes place in Seattle."

A court-appointed monitor, to be selected jointly by the city and the Justice Department, will oversee the implementation of the settlement agreement and provide expert assistance to the Community Police Commission in the MOU.

"Today begins a new chapter for policing in Seattle. All of us depend upon the critical bond between the community and police officers who risk their lives to protect public safety. This agreement advances meaningful and measurable reforms that ensure effective policing and build community trust. We must get this right. We owe it to every officer who serves and every resident of this great city," said U.S. Attorney for the Western District of Washington Jenny A. Durkan.

The department’s investigation of SPD was announced on March 31, 2011, and conducted by the Civil Rights Division’s Special Litigation Section and the U.S. Attorney’s Office for the Western District of Washington. The investigation focused on whether SPD engages in a pattern or practice of unconstitutional or unlawful policing through the use of excessive force or discriminatory policing. On December 16, 2011, the department issued a written report of its findings. The department found reasonable cause to believe that SPD engages in a pattern or practice of excessive force, in violation of the Fourth Amendment of the U.S. Constitution and the Violent Crime Control and Law Enforcement Act of 1994. The department did not make a finding that SPD engages in a pattern or practice of discriminatory policing, but raised concerns about some of SPD’s policies and practices, particularly those related to pedestrian encounters.

The Justice Department’s investigation, conducted in collaboration with and with the full and open cooperation of the city and SPD, involved an in-depth review of thousands of pages of SPD documents and materials, including written policies and procedures, training materials, and internal reports, data, video footage and investigative files. Justice Department attorneys and investigators also conducted interviews with SPD officers, supervisors and command staff, and city officials, in addition to conducting hundreds of interviews with community members and local advocates.

Following the release of the findings in December, the Justice Department received input from a wide range of stakeholders, including city officials and elected leaders, SPD commanders and police officers, police unions, and a broad range of community members and service providers.

Sunday, July 29, 2012

U.S. JUSTICE DEPARTMENT WEIGHS IN ON MOSQUE'S OCCUPANCY APPLICATIONS IN TENNESSEE

FROM: U.S. JUSTICE DEPARTMENT
Wednesday, July 18, 2012

Justice Department Files Lawsuit Requiring Rutherford County, Tenn., to Allow Mosque to Open in City of Murfreesboro Complaint Seeks Temporary Restraining Order and Injunction Compelling County to Process Mosque’s Applications for a Certificate of Occupancy

The Justice Department announced today that it has filed a federal lawsuit against Rutherford County, Tenn., alleging that the county violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) when, in compliance with a state chancery court ruling, it refused to process or issue a certificate of occupancy to the Islamic Center of Murfreesboro for a recently constructed mosque. The department’s complaint states that a certificate of occupancy is needed immediately so that the Islamic Center can hold worship services at the new facility during the Islamic holy month of Ramadan, which begins at sundown on July 19.

The lawsuit, filed today in U.S. District Court for the Middle District of Tennessee, alleges that the county’s refusal came as a result of a recent state chancery court order last month, which, acting in response to a motion brought by individuals opposed to the mosque, enjoined the county from processing or issuing a certificate. The chancery court ruled that the county had provided insufficient public notice prior to the hearing at which the county approved the mosque’s site-plan. The chancery court imposed a heightened notice requirement on the mosque, one not imposed on other religious or secular organizations.

"Our nation was founded on bedrock principles of religious liberty. The Department of Justice will continue to vigorously enforce civil rights laws that protect religious freedom," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "When a faith community follows the rules, as the Islamic Center of Murfreesboro has done in seeking to construct its place of worship, it is impermissible to change the rules in a discriminatory way that prevents people of faith from exercising their fundamental right to worship."

"The United States Attorney’s Office will zealously protect every citizen’s right to worship and assemble," said Jerry E. Martin, U.S. Attorney for the Middle District of Tennessee. "If we do not protect the rights of these congregants in Rutherford County, then the rights of all people are endangered and diminished."

The government’s complaint seeks a court order requiring the county to act promptly on the Islamic Center’s application for a certificate of occupancy despite the chancery court’s injunction.

The case began when the Islamic Center, which has been operating in Rutherford County since 1982, sought to construct a new mosque for its growing congregation. In 2009, it purchased land for that purpose on Veals Road in Rutherford County and, in compliance with the county’s zoning regulation, subsequently applied for site-plan approval. After considering the proposal at a regularly scheduled, advertised meeting, the county approved the site plan. Following the county’s approval, opponents of the mosque filed a lawsuit in state court seeking to stop construction. Ultimately, with the exception of the plaintiffs’ public-notice claim, the chancery court dismissed the plaintiffs’ claims.

RLUIPA prohibits religious discrimination in land use and zoning decisions. Persons who believe that they been subjected to religious discrimination in land use or zoning may contact the Housing and Civil Enforcement Section of the Justice Department’s Civil Rights Division at 1-800-896-7743. Additional information about the Justice Department’s efforts to combat religious discrimination may be found at www.justice.gov/crt/spec_topics/religiousdiscrimination/.

The complaint is an allegation of unlawful conduct. The allegations must be proven in federal court.

Friday, July 27, 2012

NEW PUBLIC-PRIVATE PARTNERSHIP TO PREVENT HEALTH CARE FRAUD

FROM: U.S. JUSTICE DEPARTMENT
Thursday, July 26, 2012
Obama Administration Announces Ground-breaking Public-private Partnership to Prevent Health Care Fraud

Attorney General Eric Holder and Health and Human Services (HHS) Secretary Kathleen Sebelius today announced the launch of a ground-breaking partnership among the federal government, state officials, several leading private health insurance organizations, and other health care anti-fraud groups to prevent health care fraud. This voluntary, collaborative arrangement uniting public and private organizations is the next step in the Obama administration’s efforts to combat health care fraud and safeguard health care dollars to better protect taxpayers and consumers.

The new partnership is designed to share information and best practices in order to improve detection and prevent payment of fraudulent health care billings. Its goal is to reveal and halt scams that cut across a number of public and private payers. The partnership will enable those on the front lines of industry anti-fraud efforts to share their insights more easily with investigators, prosecutors, policymakers and other stakeholders. It will help law enforcement officials to more effectively identify and prevent suspicious activities, better protect patients’ confidential information and use the full range of tools and authorities provided by the Affordable Care Act and other essential statutes to combat and prosecute illegal actions.

"This partnership is a critical step forward in strengthening our nation’s fight against health care fraud," said Attorney General Holder. "This administration has established a record of success in combating devastating fraud crimes, but there is more we can and must do to protect patients, consumers, essential health care programs, and precious taxpayer dollars. Bringing additional health care industry leaders and experts into this work will allow us to act more quickly and effectively in identifying and stopping fraud schemes, seeking justice for victims, and safeguarding our health care system."

"This partnership puts criminals on notice that we will find them and stop them before they steal health care dollars," Secretary Sebelius said. "Thanks to this initiative today and the anti-fraud tools that were made available by the health care law, we are working to stamp out these crimes and abuse in our health care system."

One innovative objective of the partnership is to share information on specific schemes, utilized billing codes and geographical fraud hotspots so that action can be taken to prevent losses to both government and private health plans before they occur. Another potential goal of the partnership is the ability to spot and stop payments billed to different insurers for care delivered to the same patient on the same day in two different cities. A potential long-range goal of the partnership is to use sophisticated technology and analytics on industry-wide healthcare data to predict and detect health care fraud schemes.

The Executive Board, the Data Analysis and Review Committee and the Information Sharing Committee will hold their first meeting in September. Until then, several public-private working groups will continue to meet to finalize the operational structure of the partnership and develop its draft initial work plan.

The following organizations and government agencies are among the first to join this partnership:

• America’s Health Insurance Plans
• Amerigroup Corporation
• Blue Cross and Blue Shield Association
• Blue Cross and Blue Shield of Louisiana
• Centers for Medicare & Medicaid Services
• Coalition Against Insurance Fraud
• Federal Bureau of Investigations
• Health and Human Services Office of Inspector General
• Humana Inc.
• Independence Blue Cross
• National Association of Insurance Commissioners
• National Association of Medicaid Fraud Control Units
• National Health Care Anti-Fraud Association
• National Insurance Crime Bureau
• New York Office of Medicaid Inspector General
• Travelers
• Tufts Health Plan
• UnitedHealth Group
• U.S. Department of Health and Human Services
• U.S. Department of Justice
• WellPoint, Inc.

The partnership builds on existing tools provided by the Affordable Care Act, resulting in:

• Tougher sentences for people convicted of health care fraud. Criminals will receive 20 to 50 percent longer sentences for crimes that involve more than $1 million in losses.
• Enhanced screenings of Medicare and Medicaid providers and suppliers to keep fraudsters out of the program.
• Suspended payments to providers and suppliers engaged in suspected fraudulent activity.

Sunday, July 22, 2012

MAN INDEICTED FOR ACTING AS UNREGISTERED AGENT FOR SYRIA

FROM:  U.S. DEPARTMENT OF JUSTICE                            Friday, July 20, 2012
Virginia Man Sentenced to 18 Months in Prison for Acting as Unregistered Agent for Syrian Government

Mohamad Anas Haitham Soueid, 48, a resident of Leesburg, Va., was sentenced today to 18 months in prison, followed by three years of supervised release, for collecting video and audio recordings and other information about individuals in the United States and Syria who were protesting the government of Syria and to providing these materials to Syrian intelligence agencies in order to silence, intimidate and potentially harm the protestors.

Lisa Monaco, Assistant Attorney General for National Security; Neil MacBride, U.S. Attorney for the Eastern District of Virginia; and James McJunkin, Assistant Director in Charge of the FBI Washington Field Office, made the announcement following sentencing by United States District Judge Claude M. Hilton.

Soueid, aka "Alex Soueid" or "Anas Alswaid," a Syrian-born naturalized U.S. citizen, was charged by a federal grand jury on Oct. 5, 2011, in a six-count indictment in the Eastern District of Virginia. He was convicted of unlawfully acting as an agent of a foreign government on March 26, 2012.

"Mohamad Soueid acted as an unregistered agent of the Syrian government as part of an effort to collect information on people in this country protesting the Syrian government crack-down. I applaud the many agents, analysts and prosecutors who helped bring about this important case," said Assistant Attorney General Monaco.

"Mr. Soueid betrayed this country to work on behalf of a state sponsor of terror," said U.S. Attorney MacBride. "While the autocratic Syrian regime killed, kidnapped, intimidated and silenced thousands of its own citizens, Mr. Soueid spearheaded efforts to identify and intimidate those protesting against the Syrian government in the United States."

"By illegally acting as an agent of Syria, Mr. Souied deceived his adopted country of the United States in support of a violent and repressive despotic government," said Assistant Director in Charge McJunkin. "Through today’s sentencing, he will now be held accountable for his actions."

According to court records, from March to October 2011, Soueid acted in the United States as an agent of the Syrian Mukhabarat, which refers to the intelligence agencies for the Government of Syria, including the Syrian Military Intelligence and General Intelligence Directorate. At no time while acting as an agent of the government of Syria in this country did Soueid provide prior notification to the Attorney General as required by law. The U.S. government has designated the Syrian government a state sponsor of terrorism since 1979.

Under the direction and control of Syrian officials, Soueid recruited individuals living in the United States to make dozens of audio and video recordings of protests against the Syrian regime – including recordings of conversations with individual protestors – in the United States and Syria, which he provided to the Syrian government. He also supplied the Syrian government with contact information for key dissident figures in the United States, details about the financiers of the dissident movement, logistics for protests and meetings, internal conflicts within the movement, and the movement’s future plans.

In a handwritten letter to a Syrian official in April 2011, Soueid outlined his support for the Syrian government’s repressions of its citizens, stating that disposing of dissension must be decisive and prompt and that violence, home invasions, and arrests against dissidents is justified.

The Syrian government provided Soueid with a laptop to further their ability to surreptitiously communicate, which he later destroyed. In late June 2011, the Syrian government paid for Soueid to travel to Syria, where he met with intelligence officials and spoke with President Bashar al-Assad in private.

To thwart detection of his activities by U.S. law enforcement, Soueid lied to a Customs and Border Patrol agent upon his return from meeting with President al-Assad in Syria, and he also lied repeatedly to FBI agents when they questioned him in August 2011. Following the FBI interview, Soueid destroyed documents in his backyard and informed the Mukhbarat about his FBI interview.

This investigation is being conducted by the FBI’s Washington Field Office with assistance from the Loudon County, Va., Sheriff’s Office. The prosecution is being handled by Assistant U.S. Attorneys Dennis Fitzpatrick and Neil Hammerstrom of the U.S. Attorney’s Office for the Eastern District of Virginia and Trial Attorney Brandon L. Van Grack of the Counterespionage Section of the Justice Department’s National Security Division.


Wednesday, July 11, 2012

TWO PERSONS SENTENCED FOR PARTS IN $2.3 MILLION KICKBACK SCHEME


FROM:  U.S. JUSTICE DEPARTMENT
Tuesday, July 10, 2012
Two Individuals Sentenced to Prison for Participating in Kickback Scheme at New York Presbyterian Hospital A Pennsylvania Company and Two New York Companies Sentenced to Pay a Total of $3 Million in Criminal Fines
WASHINGTON — Two individuals and three corporations were sentenced in the U.S. District Court in Manhattan by Judge George B. Daniels today to serve time in prison and to pay criminal fines for their participation in an eight-year conspiracy involving kickbacks in excess of $2.3 million to defraud New York Presbyterian Hospital (NYPH), the Department of Justice announced. The individuals and the corporations were convicted after a four-week trial in February 2012.

Michael Yaron, the owner of two of the companies convicted for their roles in the conspiracy—Cambridge Environmental & Construction Corp, doing business as National Environmental Associates (Cambridge/NEA) and Oxford Construction & Development Corp.—was sentenced to serve 60 months in jail, and to pay a $500,000 criminal fine.  Cambridge/NEA and Oxford Construction were each sentenced to pay a $1 million criminal fine.

Moshe Buchnik, the president of an asbestos abatement company that also did business at NYPH, was sentenced to serve 48 months in jail, and to pay a $500,000 criminal fine for his role in the conspiracy.

Artech Corp., a company owned by a relative of Santo Saglimbeni, a former vice president of facilities operations at NYPH, was also sentenced to pay a $1 million criminal fine.

Two additional charged co-conspirators, Saglimbeni and Emilio “Tony” Figueroa, a former director of facilities operations at NYPH, who were convicted along with Yaron, Buchnick, Cambridge/NEA, Oxford Construction and Artech, are scheduled to appear in court on July 31, 2012.

“The sentences imposed today are consistent with the seriousness of the crimes for which the individuals and companies were found guilty,” said Acting Assistant Attorney General Joseph Wayland in charge of the Department of Justice’s Antitrust Division.  “Today’s sentences hold accountable the unlawful conduct of those involved in illegal kickback conspiracies.”

The department said the scheme to defraud NYPH centered on Saglimbeni, who with the assistance of Figueroa, awarded asbestos abatement, air monitoring and general construction contracts to Yaron, Buchnik and their companies in return for more than $2.3 million in kickbacks. The kickbacks were funneled by Yaron to Saglimbeni through Artech Corp., a sham company Saglimbeni created in his mother’s name in order to conceal the kickbacks.

Yaron, Buchnik, Saglimbeni, Figueroa, Cambridge/NEA, Oxford Construction and Artech, were each convicted of conspiracy to defraud NYPH.  Additionally, Yaron, his companies, Buchnik, Saglimbeni and Artech were also convicted of a substantive wire fraud violation.
 
The sentences announced today resulted from a federal antitrust investigation of bid rigging, fraud, bribery and tax-related offenses in the award of construction, maintenance and service contracts to the facilities operations department of NYPH.  Including today’s sentencings, 14 individuals and six companies have been convicted of or pleaded guilty to charges arising out of this investigation.

ATTORNEY GENERAL HOLDER SPEAKS AT NAACP ANNUAL CONVENTION


FROM:  U.S. JUSTICE DEPARTMENT
Attorney General Eric Holder Speaks at the NAACP Annual Convention Houston ~ Tuesday, July 10, 2012
Thank you, Leon, for those kind words – and thank you all for such a warm welcome.   It’s a privilege – and a sincere pleasure – to be with you; to be part another important NAACP gathering; and to share the stage with so many good friends, dedicated partners, and indispensible leaders.

I also want to thank President Jealous, Chairman Brock, General Counsel Keenan, and the NAACP’s National Board of Directors for inviting me to join you.   It’s nice to be out of Washington today.    And it’s an honor to bring greetings from President Obama, from my fellow members of his Cabinet, and from my colleagues across the United States Department of Justice.

I’m also grateful for this chance to salute the essential work that you are doing – here in the great state of Texas and all across the country – to bring our nation together, and to bring attention to the problems we must solve, the wrongs we must right, the divisions we must heal, and the future we must build.   For more than a century, the NAACP’s leaders, members, and supporters have been defined and distinguished by your unyielding determination to do what you believe is right.   And I want to tell you how much I appreciate, and am inspired by, the example of strength that this organization continues to provide for our nation – and for me personally.

This convention is focused on issues of real consequence – issues that directly affect people’s lives and influence our nation’s course.   So, today – like all of you – I’d like to focus on the future.   And I want to discuss some of the ways we must continue to build upon the social, political, economic, educational, and legal progress that this organization – and generations of like-minded civil rights pioneers, activists, advocates, and champions – have struggled and sacrificed to bring about.

Today’s gathering presents an important opportunity to celebrate, and give thanks for, the visionary leaders – from W.E.B. DuBois and Ida B. Wells, to Charles Hamilton Houston, Walter White, Roy Wilkins, Dr. Martin Luther King, Jr., our dear friend John Payton, and Clarence Mitchell, Jr. – whose memory many of you gathered to honor yesterday, and whose critical work – as the NAACP’s Chief Advocate in Washington – is being carried on today, with a renewed spirit and dedication, by Hilary Shelton.   This is a critical moment for each of us – not only to lift up their legacies, but to take up the work that became the cause of their lives.   And it’s a chance to recommit ourselves, in this hour of need, to the effort that now constitutes our sacred charge, our solemn obligation, and our breathtaking opportunity.

Every one of us has the ability – and, I believe, the responsibility – to continue the work that has driven the NAACP’s record of achievement.   In short, it is time – yet again – to put our energy and skills to good use – in advocating for the most vulnerable members of society; in protecting the liberty – and the sacred rights – of every single person in this country; in safeguarding the basic infrastructure of our democracy; in ensuring economic and educational opportunities for all of our countrymen – and women; and in carrying forward the fundamental and inclusive ideals upon which this country was founded, and which continue to drive our pursuit of a more perfect Union.

These were the values that a group of patriots first seized upon 236 years ago last week, when they gathered in Philadelphia to draft a declaration that shook the foundations of an empire and set in motion the great American experiment with which we are entrusted today.   They are the principles that another generation fought and died to extend, less than a hundred years later, with the abolition of slavery in the aftermath of a terrible Civil War that remade our nation; and the ratification – exactly 144 years ago this week – of the Fourteenth Amendment to the U.S. Constitution, which finally ensured due process, equal protection, and – for the first time – the full rights of citizenship for the African-American people who helped to build this nation and their heirs.   Even within our own lifetimes, these are the essential ideals that have driven great leaders and ordinary citizens alike to stand up, to march forward, to reach out a hand, or simply to take a seat – at a lunch counter or the front of a bus, in a classroom or a courthouse – in order to bring about transformative, once-unimaginable progress.

One of these people was a brave young woman who – in her desire to attend her state’s public university, had to march past a defiant Governor George Wallace to integrate the University of Alabama.  I am proud to say that this courageous young student, Vivian Malone, would later become my sister in law.   In her pursuit of the educational opportunity she deserved, Vivian was represented by the legendary civil rights attorney – and former NAACP counsel – Fred Gray.   With his assistance – and with support from organizations like yours, and with the backing of the Justice Department I now have the privilege to lead, Vivian was able to open new doors of opportunity.   And, although she is no longer with us, her legacy continues to teach and inspire us.

If she were here with us this afternoon, I’m certain that Vivian would be proud to help celebrate how far our nation has traveled on the road to equality in the decades since she took her rightful place in that university classroom.   But she’d also be the first to remind us that we still have much more to do; and that, despite the advances we’ve seen – and the fact that a direct beneficiary of the civil rights movement now sits in the Oval Office, and another has the honor of addressing you today as the 82nd Attorney General of the United States – our nation’s long struggle for freedom and fairness is far from over.   In fact, much of the hardest work remains unfinished.   And, for all the successes we’ve enjoyed and the milestones we’ve celebrated – today, in 2012 – we cannot, and we must not, ignore the fact that there are still neighborhoods in America’s most vibrant cities where too many kids go to prison, and too few to college; where our young people are involved in, and become victims of, violence; and where the doors to education and opportunity still seem closed.   And there is too little outrage, and not nearly enough action, in response to the fact that – nationwide – homicide is the leading cause of death for black men between the ages of 15 and 24; and that more than 60 percent of young people of all races are exposed to violence at some point in their lives, either as victims or as witnesses – which can have devastating, long-term consequences that last well into adulthood.

This is unacceptable.  And it’s why the leadership of organizations like the NAACP – and the engagement of activists throughout Texas and across the country – remains as vital as ever.   It’s also why, under the Obama Administration, today’s Justice Department has made an unprecedented commitment to protecting the safety – and potential – of our children.

Through our landmark Defending Childhood Initiative and our National Forum on Youth Violence Prevention, we’re developing strategies for reducing violence and countering its negative impact.   I’m especially proud that, for the first time in history, the Department is now directing significant resources for the express purpose of addressing childhood exposure to violence, raising awareness of its ramifications, and advancing scientific inquiry on its causes and characteristics.  We’re working closely with other federal agencies, educators, and state and local partners across the country to disrupt the “school to prison pipeline” that transforms too many of our schools from doorways to opportunity into gateways to the correctional system.  And this is only the beginning.

At every level of this Administration, we’re working in new ways – and with a range of partners – to achieve fairness and expand opportunity – from successfully advocating for the reduction of the unjust 100-to-1 sentencing disparity between crack and powder cocaine offenses, to launching a new emphasis on re-entry programs to ensure the successful reintegration into society of those who have become involved in the criminal justice system.  Through the Justice Department’s new Access to Justice Office, we’re fighting to expand the availability of desperately needed legal services, and to advance pro bono initiatives – in both the public and private sectors – that can help provide representation for those who can’t afford it.   And, by any measure, our determination to build on these efforts – particularly through the work of the Department’s Civil Rights Division – has, quite simply, never been stronger.

As Attorney General, I am often mindful of the fact that I have the great privilege – and the solemn duty – of overseeing the enforcement of many of the laws and reforms that the NAACP fought so hard to enact.  I take this obligation seriously.   It is at the forefront of all I do as Attorney General.   For the Department I lead – and our allies across the country – this work is a top priority.  And our approach has never been more effective.

Over the past three years, the Civil Rights Division has filed more criminal civil rights cases than ever before, including record numbers of police misconduct, hate crimes, and human trafficking cases.  We’ve moved aggressively to combat continuing racial segregation in our schools – and to eliminate discriminatory practices in our housing and lending markets, where we recently achieved the largest residential fair lending settlement in American history.  We’ve also worked to eliminate bias, combat intimidation, and ensure nothing but the highest standards of integrity and professionalism across our nation’s law enforcement community.   And – alongside state, local, tribal, and international authorities – we’ve reinvigorated sweeping efforts to ensure that, in our workplaces and military bases; in our classrooms and places of worship; in our immigrant communities and our voting booths – the rights of all Americans are protected.

Nowhere is this clearer than in our work to combat hate crimes, and to bring those who commit these vicious acts to justice.  Over the past three years, the Justice Department prosecuted 35 percent more hate crime cases than during the preceding three-year period.  We’ve moved vigorously to enforce the landmark Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act – which the NAACP strongly supported, and which President Obama signed into law in 2009.        And we’re working to bring together a range of allies and partners to help strengthen our collaborative efforts to make good on the promise of equal justice – and the protections of our legal system – in every sector of society.

At a fundamental level, this is the same commitment that has driven us to expand access to, and prevent discrimination in, America’s elections systems.   And in jurisdictions across the country, it has compelled the Civil Right’s Division’s Voting Section to take meaningful steps to ensure integrity, independence, and transparency in our enforcement of the Voting Rights Act of 1965 – a law that the NAACP was instrumental in advancing.

Especially in recent months, Texas has – in many ways – been at the center of our national debate about voting rights issues.   And I know many of you have been on the front lines of this fight.   Here – as in a number of jurisdictions across the country – the Justice Department has initiated careful, thorough, and independent reviews of proposed voting changes – including redistricting plans, early voting procedures, photo identification requirements, and changes affecting third party registration organizations – in order to guard against disenfranchisement, and to help ensure that none of these proposals would have a discriminatory purpose or effect.

And, as many of you know, yesterday was the first day of trial in a case that th e State of Texas filed against the Justice Department, under Section 5 of the Voting Rights Act, seeking approval of its proposed voter ID law.   After close review, the Department found that this law would be harmful to minority voters – and we rejected its implementation.

Under the proposed law, concealed handgun licenses would be acceptable forms of photo ID – but student IDs would not.   Many of those without IDs would have to travel great distances to get them – and some would struggle to pay for the documents they might need to obtain them.  Since the passage of this law, the NAACP and other leading civil rights organizations have been spearheading critical efforts to protect the rights of minority voters in this and other states.  And a growing number of you are working to raise awareness about the potential impact of this and other similar laws – and the fact that – according to some recent studies – nationally, only 8% of white voting age citizens, while 25% of African-American voting age citizens, lack a government-issued photo ID.   In our efforts to protect voting rights and to prevent voting fraud, we will be vigilant and strong.   But let me be clear:  we will not allow political pretexts to disenfranchise American citizens of their most precious right.

Now, I can’t predict the future.   And I don’t know what will happen as this case moves forward.  But I can assure you that the Justice Department’s efforts to uphold and enforce voting rights will remain aggressive.   And I have every expectation that we’ll continue to be effective.   The arc of American history has always moved toward expanding the electorate.   It is what has made this nation exceptional.   We will simply not allow this era to be the beginning of the reversal of that historic progress.

For this and other reasons, I am confident about where this work will lead us – and the progress that passionate advocates like all of you will continue to make possible.  And as we carry these efforts into the future, there’s no question that we’ll keep relying on organizations like the NAACP to help extend essential protections – and to encourage broad-based engagement – on a host of other issues of national concern.

I’m sure that, like millions of others across the country, you were closely following last month’s decisions by the Supreme Court – to strike down major provisions of an Arizona law that would have effectively criminalized unlawful status, and to uphold essential components of the Affordable Care Act.   As President Jealous and Chairman Brock noted, these monumental rulings constituted an important step forward – providing a clear and final decision on a landmark health care law that will offer desperately needed help to millions of Americans, and – in the Arizona decision – confirming the federal government’s exclusive authority to regulate on immigration issues, so that our nation speaks with one voice in this important area.

I’m pleased that, in both cases, the Court broadly affirmed the government’s position as argued by the Justice Department.   However, I remain concerned about the practical impact of the remaining provision of the Arizona law that requires local law enforcement officials to check the immigration status of anyone they even suspect to be here illegally. No American should ever live under a cloud of suspicion just because of what they look like.   Going forward, we must ensure that Arizona law enforcement officials do not enforce this law in a manner that undermines the civil rights of Americans.   In this work, I can assure you that the Department of Justice will continue to be vigilant.

At the same time, I recognize that the Justice Department will never be able to do it all – and that it simply won’t be possible for government to make all of the progress we need, and that the American people deserve, on our own.

So, this afternoon, as we come together to celebrate the power of individual voices, and the strength of collective action – we must also take stock of what’s left to do, and reflect on the responsibilities that each one of us shares – to ourselves, to those whose memories we honor this week, and – of course – to our children.   Although the direction we must take is clear, the road ahead is far from certain.   Significant obstacles and unprecedented threats remain to be confronted.   And overcoming these challenges is sure to be anything but easy.

But I firmly believe that – if the leaders in this room heed the lessons of our past and follow the examples of our predecessors; if we keep faith in one another, and in our democratic institutions; and if we rededicate ourselves to the essential work of helping freedom grow, and extending the blessings of our Constitution to all men and women – there is no limit to the progress we can make, or the distance we must – and will – travel together in the days ahead.

Once again, thank you for your commitment to – and leadership of – this work.   May God continue to bless our journey.  And may God continue to bless the United States of America.

Saturday, June 23, 2012

PENNSYLVANIA RESIDENT AND MEMBER OF INTERNET GROUP "IMAGINE" PLEADS GUILTY


FROM:  U.S. JUSTICE DEPARTMENT
Friday, June 22, 2012
Pennsylvania Member of the Internet Piracy Group “Imagine” Pleads Guilty to Copyright Infringement Conspiracy

A Pennsylvania man pleaded guilty today to conspiring to willfully reproduce and distribute tens of thousands of infringing copies of copyrighted works without permission, including infringing copies of movies before they were commercially released on DVD, Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Virginia Neil H. MacBride and Special Agent in Charge John P. Torres of U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE-HSI) in Washington, D.C., announced today.

Willie O. Lambert, 57, of Pittston, Pa., pleaded guilty to one count of conspiracy to commit criminal copyright infringement.  The plea was entered before U.S. District Judge Arenda L. Wright Allen in the Eastern District of Virginia.  Lambert faces up to five years in prison, a fine of $250,000 and three years of supervised release.

Lambert was indicted on April 18, 2012, along with three other leading members of the IMAGiNE Group, an organized online piracy group seeking to become the premier group to first release Internet copies of new movies only showing in theaters.  A co-defendant, Sean M. Lovelady, entered a guilty plea to the same charge on May 8, 2012.

According to court documents, Lambert and his co-conspirators sought to illegally obtain and disseminate digital copies of copyrighted motion pictures showing in theaters.  Lambert admitted that he went to movie theaters and secretly used receivers and recording devices to capture the audio sound tracks of copyrighted movies (referred to as “capping”).  After obtaining, editing and filtering audio sound tracks and uploading them to servers utilized by the IMAGiNE Group, Lambert used and attempted to use software to synchronize the audio file with an illegally obtained video file of a movie to create a completed movie file suitable for sharing over the Internet among members of the IMAGiNE Group and others.  Mr. Lambert also admitted that the IMAGiNE group’s conduct resulted in a readily provable and reasonably foreseeable infringement amount of more than $400,000.

The investigation of the case and the arrests were conducted by agents with ICE-HSI.  Assistant U.S. Attorney Robert J. Krask of the Eastern District of Virginia and Senior Counsel John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case on behalf of the United States.  Significant assistance was provided by the CCIPS Cyber Crime Lab and the Office of International Affairs in the Justice Department’s Criminal Division.

This case is part of efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force) to stop the theft of intellectual property.  Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation and hard work.  The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders.

 This investigation was supported by the HSI-led National Intellectual Property Rights Coordination Center (IPR Center) in Washington.  The IPR Center is one of the U.S. government’s key weapons in the fight against criminal counterfeiting and piracy.  As a task force, the IPR Center uses the expertise of its 20 member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to IP theft.  Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and our war fighters.



Saturday, June 16, 2012

ALLEGED CREDIT CARD TRAFFICKER EXTRADITED FROM FRANCE TO THE U.S.


FROM:  U.S. JUSTICE DEPARTMENT
Friday, June 15, 2012
Alleged International Credit Card Trafficker “Badb” Extradited from France to the United States
WASHINGTON – Vladislav Anatolievich Horohorin, aka “BadB” of Moscow, an alleged international credit card trafficker thought to be one of the most prolific sellers of stolen credit card data, has been extradited from France to the United States to face criminal charges filed in the District of Columbia and in the Northern District of Georgia.

The extradition was announced today by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Ronald C. Machen Jr. for the District of Columbia, U.S. Attorney Sally Quillian Yates of the Northern District of Georgia, U.S. Secret Service (USSS) Assistant Director for Investigations David J. O’Connor, and Special Agent in Charge Brian D. Lamkin of the FBI’s Atlanta Field Office.

Horohorin, 27, made his first appearance before U.S. District Judge Ellen Segal Huvelle in the District of Columbia yesterday.  He was extradited to the United States on June 6, 2012, and was arraigned before U.S. Magistrate Judge Alan Kay in the District of Columbia on June 7, 2012.  He was ordered detained pending trial.

“According to the indictment, Mr. Horohorin was one of the most notorious credit card traffickers in the world, transacting in stolen credit information across the globe,” said Assistant Attorney General Breuer.  “Due to our strong relationships with our international law enforcement partners, we secured his extradition to the United States, where he now faces multiple criminal counts in two separate indictments.  We will continue to do everything we can to bring cybercriminals to justice, including those who operate beyond our borders.”

“Our indictment alleges that this young man used his technological savvy to profit by selling stolen credit card information over the Internet on a massive scale,” said U.S. Attorney Machen.  “We are pleased that he has been extradited to the United States to face these criminal charges in a District of Columbia courtroom.  This prosecution demonstrates that those who try to rip off Americans from behind a computer screen across an ocean will not escape American justice.”

“The Secret Service is committed to identifying and apprehending those individuals that continue to attack American financial institutions and we will continue to work through our international and domestic law enforcement partners in order to accomplish this,” said USSS Assistant Director O’Connor.

“International cyber criminals who target American citizens and businesses often believe they are untouchable because they are overseas,” said U.S. Attorney Yates.  “But as this case demonstrates, we will work relentlessly with our law enforcement partners around the world to charge, find and bring those criminals to justice.”

“Horohorin’s extradition to the United States demonstrates the FBI’s expertise in conducting long-term investigations into complex criminal computer intrusions, resulting in bringing the most egregious cyber criminals to justice, even from foreign shores,” said Special Agent in Charge Lamkin.  “The combined efforts of law enforcement agencies to include our international partners around the world will ensure this trend continues.”
Horohorin was indicted by a federal grand jury in the District of Columbia in November 2009 on charges of access device fraud and aggravated identity theft.  In a separate investigation, a federal grand jury in the Northern District of Georgia returned a superseding indictment against Horohorin in August 2010, charging him with conspiracy to commit wire fraud, wire fraud and access device fraud.  In August 2010, French law enforcement authorities, working with the U.S. Secret Service, identified Horohorin in Nice, France, and arrested him as he was attempting to board a flight to return to Moscow.

According to the indictment filed in the District of Columbia, Horohorin was the subject of an undercover investigation by USSS agents.  Horohorin, who is a citizen of Israel, Russia and Ukraine, allegedly used online criminal forums such as “CarderPlanet” and “carder.su” to sell stolen credit card information, known as “dumps,” to online purchasers around the world.  According to the indictment, Horohorin, using the online name “BadB,” advertised the availability of stolen credit card information through these web forums and directed purchasers to create accounts at “dumps.name,” a fully-automated dumps vending website operated by Horohorin and hosted outside the United States.  The website was designed to assist in the exchange of funds for the stolen credit card information.  Horohorin allegedly directed buyers to fund their “dumps.name” account using funds transferred by services including “Webmoney,” an online currency service hosted in Russia.  The purchaser would then access the “dumps.name” website and select the desired stolen credit card data.  Using an online undercover identity, USSS agents negotiated the sale of numerous stolen credit card dumps.

According to the indictment filed in the Northern District of Georgia, Horohorin was one of the lead cashers in an elaborate scheme in which 44 counterfeit payroll debit cards were used to withdraw more than $9 million from over 2,100 ATMs in at least 280 cities worldwide in a span of less than 12 hours.  Computer hackers broke into a credit card processor located in the Atlanta area, stole debit card account numbers, and raised the balances and withdrawal limits on those accounts while distributing the account numbers and PIN codes to lead cashers, like Hororhorin, around the world.

Horohorin faces a maximum penalty of 10 years in prison for each count of access device fraud, 20 years in prison for each count of conspiracy to commit wire fraud and wire fraud and a statutory consecutive penalty of two years in prison for the aggravated identity theft count.

The charges in the indictments are merely allegations and a defendant is presumed innocent until proven guilty.

The District of Columbia case is being prosecuted by Trial Attorneys Carol Sipperly, Ethan Arenson and Corbin Weiss of the Computer Crime and Intellectual Property Section (CCIPS) in the Justice Department’s Criminal Division.  Weiss also serves as a Special Assistant U.S. Attorney for the District of Columbia.  The District of Columbia case is being investigated by USSS.  Key assistance was provided by the French Police Nationale Aux Frontiers and the Netherlands Police Agency National Crime Squad High Tech Crime Unit.  The FBI Atlanta field office provided information helpful to the investigation.
The Northern District of Georgia case is being prosecuted by Assistant U.S. Attorneys Nick Oldham and Lawrence R. Sommerfeld and Trial Attorney Sipperly of CCIPS.  The Atlanta case is being investigated by the FBI.  Assistance was provided by numerous law enforcement partners.  U.S. Secret Service provided information helpful to the investigation.

The Office of International Affairs in the Justice Department’s Criminal Division provided invaluable assistance.

Wednesday, June 13, 2012

ATTORNEY GENERAL ERIC HOLDER'S STATEMENT TO SENATE JUDICIARY COMMITTEE


FROM:  U.S. JUSTICE DEPARTMENT
Attorney General Eric Holder Testifies Before the U.S. Senate Committee on the Judiciary Washington, D.C. ~ Tuesday, June 12, 2012
Chairman Leahy, Ranking Member Grassley, and distinguished Members of the Committee.   I appreciate the chance to appear before you today to highlight some of the accomplishments that have distinguished the Department’s work under this Administration.

I am proud of all that’s been achieved by the 116,000 men and women who serve the Department in offices around the world.   Their dedicated efforts – and those of our government and law enforcement partners at every level – have allowed me to fulfill the commitments that I made during my first appearance before this Committee as Attorney General.   I pledged that my colleagues and I would work tirelessly to protect the American people from terrorism and other threats to our national security; to ensure that every decision would be guided exclusively by the facts and the law; to move aggressively in combating violent crime and financial fraud; to seek justice for victims, protect the environment, and safeguard the most vulnerable among us; and to uphold the essential civil rights of all citizens.

I am proud to report that the Department has made extraordinary – and, in many cases, historic – progress in each of these areas.

Nowhere is this more clear than in our national security efforts.   Over the last three years, the Department has secured convictions against scores of dangerous terrorists in our Article III courts.   We’ve uncovered – and prevented – multiple plots hatched by terrorist groups abroad, as well as extremists here at home.   And we’ve strengthened essential surveillance and intelligence-gathering capabilities in a manner that is not only consistent with the rule of law – but with our most sacred values.

Last month, we secured our seventh conviction in an al-Qaeda-sponsored plot to conduct coordinated suicide bomb attacks in the New York subway system.   Less than three weeks ago, we obtained a guilty verdict in the case of a former U.S. service member who planned a bomb attack against American soldiers at a restaurant in Killeen, Texas.   And on the same day, a federal judge sentenced another Texas man to 20 years in prison for attempting to join al-Qaeda in the Arabian Peninsula.

I also would like to briefly discuss the steps the Department has taken in response to recent allegations regarding possible unauthorized disclosures of classified information.   These allegations are of great concern to me personally, and I know they concern all of you.

On Friday, I assigned two experienced United States Attorneys to lead separate criminal investigations being conducted by the FBI of potential unauthorized disclosures. These U.S. Attorneys are fully authorized to consult with members of the Intelligence Community, to follow all appropriate leads wherever they lead, and – ultimately – to prosecute any criminal violations to the fullest extent of the law.

Let me be clear: unauthorized disclosures of classified information could jeopardize the security of our nation, and risk the safety of the American people.   They will not be tolerated.   The Department will continue to take any such disclosures extremely seriously.   And as our investigations unfold, I will provide information to members of the Judiciary and Intelligence Committees, as appropriate.

In addition to our significant national security achievements, the Department has taken decisive action to combat a wide range of financial and health-care fraud crimes.   And I am happy to report that – across the country – this work is paying dividends.

Last year alone, the Department’s Consumer Protection Branch – in cooperation with our U.S. Attorneys’ Offices –secured more than $900 million in criminal and civil fines, restitution, and penalties; and obtained sentences totaling more than 130 years of confinement against more than 30 individuals.   Working closely with the Department of Housing and Urban Development and a bipartisan group of 49 state attorneys general, we achieved the largest federal-state settlement in history – totaling $25 billion – with five of the nation’s top mortgage servicers.  Through the President’s Financial Fraud Enforcement Task Force we’ve obtained prison sentences of up to 60 years in a wide range of fraud cases.   And we’ve created two new Working Groups to enhance civil and criminal enforcement of consumer fraud, and to bring federal and state authorities together in investigating and prosecuting misconduct by financial institutions that contributed to the financial crisis.

Alongside key partners like the Department of Health and Human Services, we’ve also made tremendous gains in our efforts to fight health-care fraud.   Over the last fiscal year alone – utilizing authorities provided under the False Claims Act and other statutes – we recovered nearly $4.1 billion in cases involving fraud on federal health-care programs.   That’s the highest amount ever recovered in a single year.   And for every dollar we’ve spent combating health-care fraud, we’ve returned an average of seven dollars to the U.S. Treasury, the Medicare Trust Funds, and others.

Put simply, our resolve to protect American consumers has never been stronger.   The same can be said of our efforts to safeguard our citizens and law enforcement officers from violent crime.

Through innovative programs such as our Defending Childhood Initiative and National Forum on Youth Violence Prevention, we’ve developed comprehensive approaches for addressing the causes and consequences of violence among, and directed toward, our nation’s young people.  We’ve strengthened partnerships between federal, state, local, tribal, and international law enforcement officials – and, as a result, we are working more effectively than ever before to confront gun-, gang-, and drug-fueled violence.   In cooperation with our counterparts in Mexico and other countries, we’ve orchestrated coordinated strikes against violent drug cartels, arrested thousands of cartel members, and seized billions of dollars in assets.   And we’re implementing strategic plans to address the shocking rates of violence that plague American Indian and Alaska Native women.

We’re also using every tool at our disposal to protect America’s law enforcement community.  Violence against law enforcement officers is approaching the highest level we’ve seen in nearly two decades.   As the brother of a retired police officer, I am proud that the Department has taken robust action to address this crisis.   Throughout my tenure as Attorney General, I have met frequently with law enforcement leaders to ensure that the Department understands their concerns.   This has led to the development, implementation, and enhancement of a host of important programs – from the VALOR Initiative, which is providing our law enforcement partners with the latest in training and cutting-edge technologies – to the Bulletproof Vest Partnership Program, which Chairman Leahy has long championed and which has helped more than 13,000 jurisdictions purchase lifesaving bullet- and stab-resistant equipment.

We also have worked   closely with Members of Congress to advance important legislation – from the historic hate crimes prevention bill to the reduction of the unjust crack/powder cocaine sentencing disparity – a landmark achievement this Committee helped to make possible – to our ongoing efforts to ensure the reauthorization of the Violence Against Women Act, and our strong support for the renewal of essential authorities such as those included in the Foreign Intelligence Surveillance Act Amendments of 2008.

The Department also has taken steps to uphold essential civil rights protections.   O ver the past three years, our Civil Rights Division filed more criminal civil rights cases than ever before – including record numbers of human trafficking cases.   And we’ve taken action to make certain that – in our housing and lending markets; in our workplaces and military bases; in our immigrant communities and our voting booths; in our schools and places of worship – the rights of all Americans are protected.

In advancing this vital work, my colleagues and I are grateful for your continued support.   We are eager to move forward together to achieve our shared priorities.   And I am happy to answer any questions you may have.

Saturday, June 9, 2012

TWO CALIFORNIA REAL ESTATE INVESTORS PLEAD GUILTY TO BID RIGGING AT FORECLOSURE AUCTIONS


FROM:  U.S. DEPARTMENT OF JUSTICE ANTITRUST DIVISION
Investigation Has Yielded 24 Plea Agreements to Date
WASHINGTON — Two Northern California real estate investors have agreed to plead guilty for their roles in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California, the Department of Justice announced.

Felony charges were filed today in the U.S. District Court for the Northern District of California in Oakland, Calif., against Douglas Ditmer of San Ramon, Calif. and Keith Slipper of Oakland.

To date, as a result of the department’s ongoing antitrust investigation into bid rigging and fraud at public real estate foreclosure auctions in Northern California, 24 individuals, including Ditmer and Slipper, have agreed to plead or have pleaded guilty.

“By agreeing not to compete with one another in the bidding process, these investors illegally profited and undermined the integrity of the real estate market,” said Scott D. Hammond, Deputy Assistant Attorney General of the Antitrust Division’s criminal enforcement program.  “The conspiracy eliminated competition and prevented lenders and distressed homeowners from getting fair market prices for their property.”

According to court documents, Ditmer and Slipper participated in conspiracies to rig bids and commit mail fraud by agreeing to stop bidding or to refrain from bidding for properties at public foreclosure auctions in Contra Costa and Alameda counties, Calif., negotiating payoffs with other conspirators not to compete, purchasing selected properties at public auctions at suppressed prices, and participating in second, private auctions open only to members of the conspiracy, where the property was awarded to the conspirator who submitted the highest bid.

The department said Ditmer conspired with others to rig bids and commit mail fraud at public real estate foreclosure auctions in Contra Costa County beginning as early as July 2008 and continuing until about January 2011, and in Alameda County beginning as early as June 2007 and continuing until about January 2011.  Slipper conspired with others to rig bids and commit mail fraud at public foreclosure auctions in Contra Costa County beginning as early as June 2008 and continuing until about December 2010, and in Alameda County beginning as early as March 2009 and continuing until about May 2009

 “The FBI continues to work closely with the Antitrust Division to target those individuals who engage in fraudulent bid rigging and other anticompetitive activities at foreclosure auctions,” said FBI Special Agent in Charge Stephanie Douglas of the San Francisco Field Office.  “We are committed to bringing to justice those who engage in illegal and unfair practices that adversely impact legitimate home buyers and sellers.”

The department said that the primary purpose of the conspiracies was to suppress and restrain competition in order to obtain selected real estate offered at Contra Costa and Alameda county public foreclosure auctions at non-competitive prices.  When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner.  According to court documents, these conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties, and, in some cases, the defaulting homeowner.

Each violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals.  The maximum fine for the Sherman Act charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victim if either amount is greater than $1 million.  Each count of conspiracy to commit mail fraud carries a maximum sentence of 30 years in prison and a $1 million fine.  The government can also seek to forfeit the proceeds earned from participating in the conspiracy to commit mail fraud.

The charges today are the latest cases filed by the department in its ongoing investigation into bid rigging and fraud at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa and Alameda counties, Calif.

The ongoing investigation into fraud and bid rigging at certain real estate foreclosure auctions in Northern California is being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco office.

Tuesday, June 5, 2012

U.S. JUSTICE DEPARTMENT WILL MONITOR JUNE 5, 2012 ELECTIONS IN CALIFORNIA, NEW MEXICO, SOUTH DAKOTA AND WISCONSIN


FROM:  U.S. DEPARTMENT OF JUSTICE
Monday, June 4, 2012
Justice Department to Monitor Elections in California, New Mexico, South Dakota and Wisconsin

WASHINGTON – The Justice Department announced today that it will monitor elections on June 5, 2012, in the following jurisdictions to ensure compliance with the Voting Rights Act of 1965 and other federal voting rights statutes: Alameda, Fresno and Riverside Counties, Calif.; Cibola and Sandoval Counties, N.M.; Shannon County, S.D.; and the city of Milwaukee.

The Voting Rights Act prohibits discrimination in the election process on the basis of race, color or membership in a minority language group.  In addition, the act requires certain covered jurisdictions to provide language assistance during the election process.  Fresno County, Riverside County and the city of Milwaukee are required to provide assistance in Spanish.  Cibola, Sandoval and Shannon Counties are required to provide language assistance to Native American voters.  Alameda County is required to provide language assistance to Hispanic, Chinese, Vietnamese and Filipino voters.

Under the Voting Rights Act, the Justice Department is authorized to ask the U.S. Office of Personnel Management (OPM) to send federal observers to jurisdictions that are certified by the attorney general or by a federal court order.  Federal observers will be assigned to monitor polling place activities in Shannon County based on the attorney general’s certification and in Alameda, Riverside and Sandoval Counties based on court orders.  The observers will watch and record activities during voting hours at polling locations in these jurisdictions, and Civil Rights Division attorneys will coordinate the federal activities and maintain contact with local election officials.

In addition, Justice Department personnel will monitor polling place activities in Fresno County, Cibola County and the city of Milwaukee.  Civil Rights Division attorneys will coordinate federal activities and maintain contact with local election officials.

Each year, the Justice Department deploys hundreds of federal observers from OPM, as well as departmental staff, to monitor elections across the country.  To file complaints about discriminatory voting practices, including acts of harassment or intimidation, voters may call the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.


Sunday, May 27, 2012

JUSTICE DEPARTMENT ALLEGES U.S. COMPANY DISCRIMINATED AGAINST U.S. CITIZENS


FROM:  U.S. DEPARTMENT OF JUSTICE
Tuesday, May 22, 2012
Justice Department Files Lawsuit Against New Jersey Information Technology Company for Retaliation
The Justice Department filed a lawsuit today against Whiz International LLC, an information technology staffing company in Jersey City, N.J., regarding allegations that the company violated the anti-discrimination provision of the Immigration and Nationality Act (INA) when it terminated an employee in retaliation for expressing opposition to Whiz’s alleged preference for foreign nationals with temporary work visas.

The complaint alleges that the company directed an employee that served as a receptionist and a recruiter, to prefer certain noncitizens in its recruitment efforts and then terminated the employee when she expressed discomfort with excluding U.S. citizens and lawful permanent residents from consideration. The anti-discrimination provision prohibits employers from retaliating against workers who oppose a practice that is illegal under the statute or who attempt to assert rights under the statute.

“Employers cannot punish employees who try to do the right thing and take reasonable measures to shed light on a practice they believe may be discriminatory,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “Employers must ensure that their practices conform to the anti-discrimination provision of the INA, and retaliation will not be tolerated.”

The complaint seeks a court order prohibiting future discrimination by the respondent, monetary damages to the employee, as well as civil penalties.

The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provisions of the INA, which protect U.S. citizens and certain work-authorized individuals from citizenship status discrimination.  The INA also protects work-authorized individuals from national origin discrimination, over-documentation in the employment eligibility verification process and retaliation.

Tuesday, April 24, 2012

FUJIKURA LTD. WILL PAY $20 MILLION CRIMINAL FINE FOR ROLE IN PRICE FIXING AUTO PARTS IN U.S. CARS


FROM:  DEPARTMENT OF JUSTICE
Monday, April 23, 2012
Fujikura Ltd. Agrees to Plead Guilty to Price Fixing on Auto Parts Installed in U.S. Cars Company Agrees to Pay $20 Million Criminal Fine
WASHINGTON – Tokyo-based Fujikura Ltd. has agreed to plead guilty and to pay a $20 million criminal fine for its role in a conspiracy to fix prices of automotive wire harnesses and related products installed in U.S. cars, the Department of Justice announced today.

According to a one-count felony charge filed today in the U.S. District Court for the Eastern District of Michigan in Detroit, Fujikura engaged in a conspiracy to rig bids for and to fix, stabilize and maintain the prices of automotive wire harnesses and related products sold to an automaker in the United States and elsewhere. According to the charge, Fujikura’s involvement in the conspiracy lasted from at least as early as January 2006 until at least February 2010. According to the plea agreement, which is subject to court approval, Fujikura has agreed to pay a criminal fine and to cooperate with the department’s ongoing investigation.

“The Antitrust Division will remain vigilant in its efforts to detect and prosecute anticompetitive conduct in this important industry, which affects virtually every American consumer,” said Acting Assistant Attorney General Sharis A. Pozen in charge of the Department of Justice’s Antitrust Division.  “The division has focused its enforcement efforts in industries essential to consumers’ everyday lives, and we, along with our law enforcement partners, have been successful in bringing to justice companies and executives engaged in illegal price fixing conspiracies.”

To date, including Fujikura, eight executives and five companies have been charged and have agreed to plead guilty in the department’s ongoing antitrust investigation into the auto parts industry. Three of the companies have pleaded guilty and have been sentenced to pay criminal fines totaling more than $748 million. Seven of the executives have pleaded guilty and have been sentenced to serve a total of more than 122 months in jail.

Fujikura manufactures and sells automotive wire harnesses, which are automotive electrical distribution systems used to direct and control electronic components, wiring and circuit boards in cars.

According to the charge, Fujikura and its co-conspirators carried out the conspiracy by agreeing, during meetings and conversations in Japan, to allocate the supply of automotive wire harnesses and related products on a model-by-model basis and sold the parts at non-competitive prices to an automaker in the United States and elsewhere.

Fujikura is charged with price fixing in violation of the Sherman Act, which carries a maximum fine of $100 million for corporations. The maximum fine for the company may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.


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