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Friday, August 31, 2012

MICHIGAN ADMITS ASSAULTING A VICTIM HE THOUGHT WAS GAY


FROM: U.S. DEPARTMENT OF JUSTICE
Wednesday, August 29, 2012
Michigan Man Pleads Guilty to Federal Hate Crimes Charge
Everett Dwayne Avery, 36, of Detroit, Mich., pleaded guilty in federal court today to a federal hate crime, admitting that he assaulted a victim because he believed the victim was gay, the Justice Department, U.S. Attorney for the Eastern District of Michigan Barbara McQuade and Special Agent in Charge of the FBI Robert D. Foley, III announced today.

During the time of the plea, Avery admitted that on March 7, 2011, he struck the victim in the face while they were customers at a convenience store in Detroit because he believed that the victim was gay. The victim suffered a fractured eye socket and other facial injuries as a result.

"Hate-fueled incidents have no place in a civilized society," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "The Justice Department is committed to using all the tools in our law enforcement arsenal, including the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, to prosecute acts of violence motivated by hate."

Avery faces a maximum of 10 years in prison. His sentencing is scheduled for Nov. 28, 2012, before Judge John Corbett O’Meara.

"A hate crime is different than a simple assault because it is an attack on not just one individual victim, but an attack on everyone who shares a particular characteristic," said U.S. Attorney McQuade. "By passing this statute, Congress made it clear that an attack based on a victim's sexual orientation will not be tolerated in America."

"The FBI is committed to protecting the community from those who are motivated by hate to victimize anyone as the result of their sexual orientation," said Special Agent in Charge Foley.

This case was investigated by the Detroit Division of the FBI and was prosecuted by Assistant U.S. Attorney Pam Thompson and Trial Attorney Sanjay Patel of the Justice Department’s Civil Rights Division.

Thursday, August 30, 2012

10 Things You Can Do to Avoid Fraud | Publications.USA.gov

10 Things You Can Do to Avoid Fraud | Publications.USA.gov

INTERNET PIRACY LEADER PLEADS GUILTY

FROM: U.S. DEPARTMENT OF JUSTICE

Wednesday, August 29, 2012

Leader of Internet Piracy Group "IMAGiNE"Pleads Guilty to Copyright Infringement Conspiracy
WASHINGTON – A Virginia 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.

Jeramiah B. Perkins, 39, of Portsmouth, Va., pleaded guilty to one count of conspiracy to commit criminal copyright infringement. The plea was entered before U.S. Magistrate Judge Tommy E. Miller in the Eastern District of Virginia. At sentencing, scheduled for Jan. 3, 2013, Perkins faces a maximum sentence of five years in prison, a fine of $250,000 and three years of supervised release.

Perkins 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.

According to court documents, Perkins and his co-conspirators sought to illegally obtain and disseminate digital copies of copyrighted motion pictures showing in theaters. Perkins admitted he took the lead in renting computer servers in France and elsewhere for use by the IMAGiNE Group. He also admitted he registered domain names for use by the IMAGiNE Group, and opened e-mail and PayPal accounts to receive donations and payments from persons downloading or buying IMAGiNE Group releases of pirated copies of motion pictures and other copyrighted works. Perkins directed and participated in using receivers and recording devices in movie theaters to secretly capture the audio sound tracks of copyrighted movies and then synchronized the audio files with illegally recorded video files to create completed movie files suitable for sharing over the Internet among members of the IMAGiNE Group and others. Perkins also admitted the IMAGiNE Group’s conduct resulted in a readily provable and reasonably foreseeable infringement amount of more than $400,000.

Co-defendants Sean Lovelady, Willie Lambert and Gregory Cherwonik each pleaded guilty to one count of conspiracy to commit criminal copyright infringement on May 8, 2012, June 22, 2012, and July 10, 2012, respectively.

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 Justice Department Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) are prosecuting the case. Significant assistance was provided by the CCIPS Cyber Crime Lab and the Justice Department Criminal Division’s Office of International Affairs.

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 21 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.

Wednesday, August 29, 2012

TWO CONVICTED IN BILLION DOLLAR FRAUD SCHEME

FROM: U.S. DEPARTMENT OF JUSTICE
Tuesday, August 28, 2012
Two Investment Advisors Convicted in California of High Yield Investment Fraud

WASHINGTON – William J. Ferry, a former stock broker and investment advisor, and Dennis J. Clinton, a former real estate investment manager, were found guilty by a federal jury in Santa Ana, Calif., today for their roles in a conspiracy to defraud a wealthy investor of $1 billion in a high-yield investment fraud scheme, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division. The investor was, in reality, part of an undercover FBI team that posed as wealthy investors and investment managers in an effort to stop fraudsters before they actually harmed victims.

"Mr. Ferry and Mr. Clinton tried to dupe undercover agents into believing their high-yield investment program would earn them extremely high rates of return," said Assistant Attorney General Breuer. "In fact, Ferry and Clinton were conspiring to steal their money, along with the money of trusting investors. Undercover operations are an integral part of our efforts to stop financial fraudsters before they wipe out the life savings of innocent victims. Based on today’s verdict, the defendants will now pay a heavy price for their conduct."

Ferry, 70, of Newport Beach , Calif., and Clinton, 64, of San Diego, were each found guilty in U.S. District Court for the Central District of California of one count of conspiracy, two counts of mail fraud and six counts of wire fraud. They face a maximum penalty of 20 years in prison on each fraud count. They will be sentenced on Feb. 1, 2013.

Paul R. Martin, a former senior vice president and managing director of Bankers Trust, was found guilty in U.S. District Court for the Central District of California for his role in the scheme in a separate trial on Aug. 3, 2012. Martin, 63, of New Jersey, was convicted of one count of conspiracy, two counts of mail fraud and six counts of wire fraud. At sentencing, scheduled for Feb. 1, 2013, Martin faces a maximum penalty of 20 years in prison on each fraud count.

On Aug. 21, 2008, Ferry, Clinton and Martin were indicted along with Oregon resident John Brent Leiske, Canadian citizen and resident Alex Chelak, Iowa resident Richard Arthur Pundt, California resident Brad Keith Lee and Florida resident Ronald J. Nolte.

Evidence at trial established that, from February to December 2006, Ferry, Clinton, Martin and others conspired to promote a high-yield investment fraud scheme promising an extremely high return at little or no risk to principal. The defendants claimed that their high-yield investment program (HYIP) was a "Fed trade program" regulated by the "Fed" (Federal Reserve Bank), that they had to follow strict Fed guidelines, and that a Fed trade administrator administered their program, with compliance duties handled by a Fed compliance officer.

Investors also were told that once they had passed compliance, they would become registered in Washington, D.C., with the Fed. The defendants falsely represented to FBI undercover agents that they would arrange for them to meet a Federal Reserve official and/or the chairman of the board of a major U.S. bank to confirm the existence of the defendants’ HYIP. The defendants falsely claimed that these Fed investment programs existed primarily to generate funds for project funding and humanitarian purposes, such as Hurricane Katrina relief. They further falsely claimed that the promised profits from investing in a Fed program had to be divided, in equal amounts, with one portion going for some humanitarian purpose, another portion for some kind of project financing, and the remainder to the investor. The defendants represented to the undercover agents that the agents’ offshore bank account would be managed by a Swiss banker who was already managing billions of dollars for the defendants. In the scheme: Ferry acted as an underwriter and member of the compliance team; Martin acted as a banking expert; Clinton acted as a troubleshooter during the compliance phase and transfer of funds to the Swiss banker; Lee acted as the contact with the Swiss banker; and Leiske acted as the trader. Chelak is charged with having acted as a compliance officer.

On April 13, 2009, Lee pleaded guilty to wire fraud and conspiracy to commit mail and wire fraud. On Jan. 11, 2010, he was sentenced to 24 months in prison.

Leiske’s case was transferred to the District of Oregon, where he pleaded guilty to all counts on Jan. 24, 2012. He is scheduled to be sentenced on Sept. 19, 2012.

Nolte was acquitted today of all charges by a jury in the Central District of California. In August 2010, charges against Pundt were dismissed by the government.

Chelak remains a fugitive.

This continuing investigation is being conducted by the FBI. This case is being prosecuted by Senior Trial Attorney David Bybee and Trial Attorney Fred Medick of the Justice Department Criminal Division’s Fraud Section.

Tuesday, August 28, 2012

Statement from Education Secretary Arne Duncan on the Perry Hall High School Shooting

Statement from Education Secretary Arne Duncan on the Perry Hall High School Shooting

AIR FORCE TESTING FOR SPICE

FROM: U.S. AIR FORCE, SPICE

Air Force Spice testing lab goes full throttle

8/23/2012 - WASHINGTON, D.C. (AFNS) -- The Air Force Spice Testing Lab became fully operational on Aug. 1, in support of the Air Force's focus on quality Airmen. The new lab establishes a robust urinalysis testing program as part of the Air Force's ongoing efforts to deter use of "spice," the common name for synthetic cannabinoids.

The spice lab is capable of handling 2,500 active-duty Air Force samples per month, with the potential to increase testing to 60,000 samples per year. Equipped with two liquid chromatography/tandem mass spectrometry (LC/MS/MS) instruments and a trained staff, the lab is taking over the full spice-testing responsibility from a commercial contract laboratory that previously handled the testing.

Over the past year, the Air Force has made significant strides in the deterrence of spice abuse among its members. Spice compounds are sprayed onto plant matter that is then generally smoked, causing hallucinogenic, psychotic and other harmful and sometimes deadly effects. In July of 2012, the President signed legislation placing 15 of these compounds on Schedule I of the Controlled Substances Act. However, the possession and use of any synthetic compounds, such as spice and other intoxicating substances other than alcohol and tobacco, remain strictly prohibited for Airmen.

In 2011, the Air Force dedicated funds to set-up its own spice lab at the Air Force Drug Testing Laboratory. In November, the spice lab team began developing a high throughput method for processing samples. By March, the team had reduced the analysis time for samples by one-third. Additional manpower further optimized the method, which will allow commanders to send in samples from an entire unit, maximizing the deterrence effect of the program.

The lab will continue to research testing for additional spice compounds as new compounds emerge to ensure the program remains an effective deterrence mechanism for commanders.

The spice lab will also continue to direct samples collected as part of an open law enforcement investigation to the Armed Forces Medical Examiner System. Active-duty Air Force commanders can send samples that are either commander-directed or taken as a part of unit, dorm, and gate sweeps to the Air Force Spice Testing Lab for testing.

Monday, August 27, 2012

$50 MILLION DOLLAR CASE INVOLVING CORPORATE MEDICARE FRAUD

FROM: U.S. DEPARTMENT OF JUSTICE
Friday, August 24, 2012
Eight Individuals and a Corporation Convicted at Trial in Florida in $50 Million Medicare Fraud
WASHINGTON – Eight individuals and a Miami-based corporation were convicted by a federal jury for their participation in a Medicare fraud scheme involving the submission of more than $50 million in fraudulent billings to Medicare, the Department of Justice, the FBI and the Department of Health and Human Services (HHS) announced today.

Antonio Macli, the owner of Biscayne Milieu Health Center Inc., a mental health care corporation, his son Jorge Macli, Biscayne Milieu’s CEO, and Antonio Macli’s daughter Sandra Huarte, an executive at the company, were each found guilty in U.S. District Court for the Southern District of Florida of one count of conspiracy to commit health care fraud, and one or more substantive counts of health care fraud, conspiracy to commit a health care kickback scheme and conspiracy to commit money laundering and substantive counts of money laundering. Antonio Macli and Jorge Macli were also convicted of substantive kickback counts. Dr. Gary Kushner, the medical director at Biscayne Milieu, was found guilty of conspiracy to commit health care fraud and a substantive count of health care fraud. Rafael Alalu, a therapist, and Jacqueline Moran, who handled Medicare billing for Biscayne Milieu, were each found guilty of conspiracy to commit health care fraud and substantive counts of health care fraud. Anthony Roberts and Derek Alexander, two patient recruiters, were each found guilty of one count of conspiracy to commit a health care kickback scheme, and each was convicted of one health care kickback count.

The defendants were charged in a superseding indictment returned June 5, 2012. Twenty other individuals who worked at Biscayne Milieu have all previously pleaded guilty.

Evidence at trial demonstrated that the defendants and their co-conspirators caused the submission of false and fraudulent claims to Medicare through Biscayne Milieu, a Florida corporation headquartered in Miami that purported to operate a partial hospitalization program (PHP) in that city. Biscayne Milieu purported to provide PHP services, a form of intensive treatment for severe mental illness, for Medicare beneficiaries suffering from mental illnesses. In fact, however, the defendants devised a scheme in which they paid patient recruiters to refer ineligible Medicare beneficiaries to Biscayne Milieu for PHP services, which were never provided. Many of the beneficiaries admitted to Biscayne Milieu were not eligible for PHP because they were chronic substance abusers, suffered from severe dementia or Alzheimer’s disease and would not benefit from group therapy, or had no mental health diagnosis at all. Indeed, some beneficiaries were seeking fraudulent mental health treatment in order to be declared exempt from certain requirements for their applications for U.S. citizenship.

As part of a scheme orchestrated by Antonio Macli, Jorge Macli and Huarte, Biscayne Milieu used fraudulent documents created by Alalu and others and bogus certifications signed by psychiatrists, including Kushner, to bill Medicare for tens of millions of dollars in false and fictitious services. Kushner did not treat patients but rather created and certified false documents to make it appear that ineligible patients were receiving legitimate PHP treatment. In addition, the evidence at trial showed that Alexander and Roberts solicited and received illegal kickbacks in exchange for sending ineligible patients to Biscayne Milieu.

Throughout the course of the fraud conspiracy, beneficiaries who did not qualify for PHP services attended treatment programs that did not provide legitimate PHP services. Biscayne Milieu billed tens of millions of dollars in services to patients who did not need the services and to whom the appropriate services were not provided. According to the evidence, co-conspirators personally altered, and caused the alteration of, patient files and therapist notes for the purpose of making it appear, falsely, that patients being treated by Biscayne Milieu were qualified for PHP treatments and that the treatments provided were legitimate PHP treatments. Evidence further revealed that Kushner signed patient files without providing meaningful treatment, and Biscayne Milieu then billed Medicare for millions of dollars in PHP treatment for these patients under his name as the attending physician. Once Biscayne Milieu received reimbursement from Medicare for these fraudulent services, its owners and executives laundered the money through various accounts to launder the proceeds of their illegal scheme.

Kushner and Alalu were remanded into custody. Antonio Macli, Jorge Macli, Huarte, Alexander and Roberts were already in custody.

Today’s verdicts were announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Acting Special Agent-in-Charge of the FBI Miami field office; and Special Agent-in-Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG), Office of Investigations Miami office.

Friday, August 24, 2012

U.S. AG HOLDER SPEAKS AT 2012 LAVENDER LAW CONFERENCE

FROM: U.S. DEPARTMENT OF JUSTICE

Attorney General Eric Holder Speaks at the 2012 Lavender Law Conference

Washington, D.C. ~ Thursday, August 23, 2012

Thank you, D’Arcy, for those kind words – and thank you all for such a warm welcome. It’s a pleasure to be here tonight, and a privilege to join with each of you – and with so many members of the National LGBT Bar Association – in celebrating and renewing our shared commitment to advancing the cause of equality for lesbian, gay, bisexual, and transgender individuals.

I’d particularly like to recognize the Association’s staff and entire leadership team, and to thank them for all they’ve done to bring us together for this year’s Lavender Law Conference and Career Fair. For more than two decades, this important annual event has brought together hundreds of legal practitioners and law students from across the country. This conference provides an opportunity to highlight the extraordinary work that this organization’s members are leading and participating in every day. And it offers a chance to reflect on the progress that, especially over the past few years, each of you has helped make possible – and to reaffirm our determination to carry this essential work into the future.

Because of your dedicated efforts, you have made this year’s gathering the largest minority recruiting event in the country, and the most successful Lavender Law Conference yet – with over 260 employers in attendance, including multiple representatives from the United States Department of Justice. In fact, I'm pleased to report that tonight we're joined by a number of senior Deparment leaders, as well as five United States Attorneys who are strong LGBT allies: Melinda Haag, from the Northern District of California; David Hickton, from the Western District of Pennsylvania; Amanda Marshall, from the District of Oregon; Stephen Wigginton, from the Southern District of Illinois; and Robert Pitman, from the Western District of Texas.

Through workshop sessions, career counseling, and panel discussions, this conference is providing a unique platform for mentoring and engagement among some of the best attorneys in America on cutting-edge legal issues. You’re helping to call attention to the obstacles and biases – in forms both overt and subtle – that continue to affect far too many LGBT Americans every day. And you’re encouraging collaboration, cooperation, and more effective advocacy as we seek to design and implement innovative strategies for confronting the most persistent challenges that far too many Americans face.

As Attorney General, I consider it a privilege to be part of this annual gathering, and to join such a diverse group of partners, colleagues, and friends in working to strengthen our nation’s legal community, and legal system. And as an American, I am deeply proud to stand with you in celebrating the remarkable, once-unimaginable progress that – particularly over the past three and a half years – your leadership and coordinated efforts have helped to bring about.

We’ve come together at an exciting moment. Thanks to the work of tireless advocates, activists, and attorneys in – and far beyond – this room, our nation has made great strides on the road to LGBT equality and the unfinished struggle to secure and protect the civil rights of all Americans. For President Obama, for me, and for our colleagues at every level of the Obama Administration, this work has long been a top priority – and I’m pleased to note that it has resulted in meaningful, measurable, and enduring change.

We can all be proud that, today – for the first time in history – those who courageously serve their country in uniform need no longer hide their sexual orientation. As we approach the one-year anniversary of the end of Don’t Ask, Don’t Tell, it’s worth celebrating the fact that so many brave servicemen and women can now serve their country proudly, honestly, openly, and without fear of discharge. We can take pride in the fact that, early last year, President Obama and I directed Justice Department attorneys not to defend the constitutionality of Section 3 of the Defense of Marriage Act. Since then, we’ve seen an encouraging – and increasing – number of courts hold this provision to be unconstitutional, including a federal district court in Connecticut that found that Section 3 fails to survive heightened constitutional scrutiny just last month.

And we can be encouraged by the robust efforts that our nation’s Department of Justice is leading to ensure the vigorous enforcement of civil rights protections in order to safeguard LGBT individuals and others from the most brutal forms of bias-motivated violence. Thanks to the outstanding leadership of my good friend, Assistant Attorney General Tom Perez – and the dedication of skilled investigators, attorneys, law enforcement officials, and support staffers within the Department’s Civil Rights Division and throughout its partner agencies – today, this work is stronger than ever before. And our resolve to meet evolving threats with renewed vigilance has never been more clear.

This past April, the Department issued its first-ever indictment for a hate crime based on sexual orientation under the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act – a landmark measure signed into law by President Obama in 2009, which many of the people in this room helped to move forward – in relation to an alleged anti-gay crime in Kentucky. Since then, we’ve continued to review reported incidents that may fall under this legislation. Under this law, we’re working to strengthen our ability to achieve justice on behalf of those who are victimized simply because of their sexual orientation or gender identity. And we stand ready to vigorously pursue allegations of federal hate crimes wherever they arise; to bring charges whenever they are warranted; and to support the efforts of our state and local law enforcement partners to enforce their own hate crimes laws.

The Civil Rights Division is also taking the lead in bolstering our ability to educate and train federal, state, local, and tribal law enforcement officials on sexual orientation and gender identity-based discrimination, in order to ensure that those who serve on the front lines are well-equipped to prevent, identify, and stop it wherever it occurs. Just last month, the Department filed an historic consent decree with the City of New Orleans to address allegations of discrimination and harassment by local police, including against LGBT individuals. In this agreement, and in our broader efforts to combat such actions, we have demonstrated the importance – and the effectiveness – of working closely with elected and appointed authorities to identify troubling practices, to correct patterns of repeated violations, and to craft policies and procedures that ensure the rights and freedoms of the citizens that our law enforcement officers are sworn to serve and protect. In recent years, we’ve taken significant steps to raise awareness about the role that community leaders, public officials, and educators can play in protecting a variety of vulnerable populations – particularly the youngest members of our society. And we’ve worked to expand and extend these protections to make certain that our children can feel safe in their homes, on our streets – and especially in our schoolyards and classrooms.

As many of you know all too well, every school year, bullying touches the lives of countless young people. As we’ve seen all too clearly, it can have a devastating – and potentially lifelong – impact. In response, the Department has been collaborating with educators, administrators, and students in school districts nationwide to investigate and address this troubling behavior. We’re working with our partners – including federal allies like the Department of Education, under the leadership of Secretary Arne Duncan – to explore ways to stop harassment and bullying before it starts. In places like Minnesota’s Anoka-Hennepin School District – where an investigation found that some students faced threats, physical violence, derogatory language, and other forms of harassment on a daily basis – we’ve successfully engaged with school districts and advocates to resolve harassment allegations and lay out detailed blueprints for sustainable reform. As we move forward, we will continue to promote safe and healthy learning environments; to support a Student Non-Discrimination Act that would allow us to better address harassment and bullying based on an individual’s real or perceived sexual orientation or gender identity; to provide assistance to bullying victims; and to work closely with local leaders, parents, educators, and young people themselves to make certain that all of our students can feel safe – and free to be themselves – in school.

Beyond these efforts, the Justice Department continues to support – and to fight for – legislative and policy reforms like an inclusive Employment Non-Discrimination Act, which would extend protections to LGBT individuals in all workplaces, and an updated Violence Against Women Act that would ensure that the law’s non-discrimination provisions cover sexual orientation and gender identity. Even in the face of extraordinary budget challenges, we remain determined to use every available resource to build the necessary institutional and legal frameworks to end harassment, violence, and discrimination – and to provide the safeguards that, for LGBT Americans, my fellow citizens, are long overdue.

But my colleagues and I aren’t merely content to advocate, and speak out, for these changes and reforms. We understand the importance of leading by example. And that’s why the Justice Department – and a wide range of agencies throughout the Administration – have taken decisive action to help create a more inclusive work environment for our own employees. To strengthen our mission of serving all Americans by recruiting – and retaining – highly-qualified individuals, like you, who reflect our nation’s rich diversity. And to make a sustained and concerted effort to provide the opportunities, support, and respect that every aspiring public servant needs to develop, to grow, and to thrive both personally and professionally.

No one understands the importance of creating such an environment – or has advocated more passionately on behalf of the LGBT community – than President Obama. Thanks to his leadership, this Administration has made historic strides in adopting inclusive policies and sending a clear message that the federal government is "open for everyone," and that it is an employer that accepts and respects every potential employee.

For instance, within the Justice Department, I launched a new Diversity Management Initiative in 2010 in order to expand and strengthen strategies and programs for promoting fairness, equality, and opportunity for every member of the DOJ family – which today includes an increasing number of openly gay or lesbian U.S. Attorneys – including my good friend, Robert Pitman – as well as senior Department leaders, U.S. Marshals, the keynote speaker at your Transgender Law Institute and three of the attorneys recently named to the National LGBT Bar Association’s "Best Lawyers Under 40," and an extremely dedicated, and ever-expanding, membership of a wonderful organization known as "DOJ Pride."

Earlier this summer, we held a Department-wide training workshop for managers across the country – which was conducted by a nationally-recognized expert on diversity and workplace inclusion, Dr. Richard Friend – who discussed lesbian, gay, bisexual and transgender inclusion as an imperative for effectively recruiting new talent and fully engaging all individuals in the workplace. In addition, the Bureau of Prisons has announced that every federal prison will appoint an LGBT representative to their Affirmative Employment Program, to help start a dialogue about issues facing staff members who serve in more than 120 facilities nationwide.

Now, I believe these new actions and policies constitute promising steps in the right direction. But, like everyone here tonight, I also recognize that our journey – as a nation, and as a legal profession – is far from over.

I know the progress we seek won’t always come as quickly as we might hope, or as easily as we would like. And that’s why, tonight, I’m not just here to thank you for all you’ve done to help bring us to this point; to highlight the Administration’s efforts in service of the same cause; or to celebrate everything that we’ve achieved together.

I’m also here to ask for your continued help, to draw on your considerable passion and expertise, and to reiterate the Department’s commitment – and my own – to building on the momentum we’ve established, and ensuring that the recent successes we’ve seen are just the beginning.

As current – and aspiring – leaders of the bench and bar, everyone here tonight understands what’s at stake. You realize how important every hard-fought legal victory – large and small – really is. You are – or soon will be – uniquely situated to use the power of the law, as well as your own gifts and knowledge, to help build a more fair, more equal, and more just society. And you have not only the power, but – I believe – the solemn responsibility, to do precisely that: to safeguard the rights and freedoms of everyone in this country, and to carry on the critical but unfinished work that lies ahead.

Of course, this never has been – and never will be – easy. But as I look around this room, I can’t help but feel optimistic about where your efforts will lead us – and how far our collective commitment will take us – in the months and years ahead. With the benefit of your partnership and the strength of your passion, I know that we can – and I’m confident that we will – continue the work that has become both our shared priority and common cause. And I look forward to all that we will surely accomplish together.

Thank you.

Thursday, August 23, 2012

SEC ADOPTS RULE ON CONFLICT MINERALS

FROM: SECURITIES AND EXCHANGE COMMISSIION

Washington, D.C., Aug. 22, 2012 — The Securities and Exchange Commission today adopted a rule mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act to require companies to publicly disclose their use of conflict minerals that originated in the Democratic Republic of the Congo (DRC) or an adjoining country.

The regulatory reform law directed the Commission to issue rules requiring certain companies to disclose their use of conflict minerals that include tantalum, tin, gold, or tungsten if those minerals are "necessary to the functionality or production of a product" manufactured by those companies. Companies are required to provide this disclosure on a new form to be filed with the SEC called Form SD.

After proposing the rule in 2010, the Commission hosted a roundtable in October 2011 to assist in finalizing the rule.

"I am pleased that the Commission has finalized this very challenging project in such a thoughtful manner," said SEC Chairman Mary L. Schapiro. "We have received significant public input on this rulemaking, and in response we incorporated many changes from the proposal that are designed to address concerns about the costs. I believe the final rule faithfully implements the statutory requirement as mandated by Congress in a fair and balanced manner."

Under the final rule, issuers are required to file for the same period — a calendar year — regardless of when their fiscal year ends. Companies will file their first specialized disclosure report on May 31, 2014 (for the 2013 calendar year) and annually on May 31 every year thereafter.

Wednesday, August 22, 2012

TAX FRAUD IN ALABAMA

FROM: U.S. DEPARTMENT OF JUSTICE
Tuesday, August 21, 2012
Alabama Woman Pleads Guilty in Stolen Identity Refund Fraud Scheme
 
 
Sonya Darrington pleaded guilty in the Middle District of Alabama to conspiracy to defraud the United States, the Justice Department and the Internal Revenue Service (IRS) announced today.

According to court documents related to the guilty plea, Darrington had been involved in a stolen identity federal tax refund fraud scheme from April 2006 through June 2011. In April 2006, Darrington opened a bank account that received a total of $129,144 in fraudulently obtained tax refunds.

The case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Jason H. Poole and Michael Boteler of the Justice Department’s Tax Division and Assistant U.S. Attorney Todd Brown are prosecuting the case.

Monday, August 20, 2012

GEORGIA TAX PREPARER PLEADS GUILTY TO IDENTITY REFUND FRAUD

FROM: U.S. DEPARTMENT OF JUSTICE
Friday, August 17, 2012
Georgia Tax Return Preparer Pleads Guilty to Stolen Identity Refund Fraud Crimes

A tax return preparer from Macon, Ga., pleaded guilty Thursday to filing a false claim for tax refund, theft of government money and aggravated identity theft, the Justice Department and the Internal Revenue (IRS) announced.
 
According to court documents, Willie C. Grant is a former tax return preparer who used many of his former clients’ names and Social Security numbers to file false federal income returns in their names and without their knowledge. On these tax returns, Grant intentionally claimed false tax refunds and directed the IRS either to electronically deposit the false refunds into his personal or business bank accounts or to issue paper refund Treasury checks which he then cashed or deposited into his personal or business bank accounts. Grant spent the proceeds of his false refund scheme on personal items including expensive cars and personal living expenses.
 
Court documents further established that from 2003 through 2008, Grant owned and operated a tax return preparation business, Grant Income Tax Bookkeeping and Check Cash (GIT) out of his home in Macon, eventually closing GIT in 2009. During calendar years 2006 through 2009, Grant prepared and filed false tax returns in the names of unsuspecting individuals. Many of the individuals were elderly or disabled former clients of GIT or deceased individuals. Grant admitted that that he abused his position of private trust as a professional paid tax preparer in committing his crimes.
 
Grant faces a potential maximum sentence of 17 years in prison and a fine of up to $500,000. U.S. District Court Chief Judge C. Ashley Royal, who is presiding over this matter, set a sentencing date of Oct. 30, 2012.

Sunday, August 19, 2012

VIOLENT FUGITIVES CAPTURED

FROM: U.S. MARSHALS SERVICE
U.S. Marshals Task Force Captures Three Violent Fugitives in Escambia
Pensacola, FL
– The U.S. Marshals Florida Regional Fugitive Task Force hit the streets of Pensacola early today and arrested three Pensacola men wanted on numerous charges that include aggravated assault with a weapon, armed robbery, using a firearm and including a non-registered sex offender. The Task Force began their day when they had to breach the door of the home of Rodney Deangelo Ries, aka "Tattoo" after knocking and observing someone inside the home and they would not come to the door. Ries, was arrested around 8:15 am after he surrendered after hiding in the home on the 8500 Block of Stockdale Avenue. The 23 year old Ries is wanted for Aggravated Assault with a Gun and Firing a Weapon in Public.
 

Task Force members from the Marshals, Escambia and Okaloosa County Sheriff’s Offices and Florida Department of Law Enforcement (FDLE) then apprehended David Lee Jones at the Travelodge Inn on Highway 29 in Pensacola. Together with the assistance from Escambia County Patrol, the Task Force captured him around 1:00 in the afternoon, after he pulled into the parking lot of the hotel where they were doing surveillance. Jones, 18, was arrested after he and another man he was with tried to elude the Task Force inside the hotel. Jones is wanted on an Escambia warrant that charges him with Aggravated Assault with a Deadly Weapon, Use or Display of a Firearm During a Felony, Armed Burglary, Robbery with a Firearm or Deadly Weapon and Petit Theft. The other man was detained shortly then released.
 

The Florida Regional Fugitive Task Force then made their last arrest for the day when they nabbed Caleb Joseph Alderman after he left a job site on Nine Mile Road. They caught up with the fugitive around the 200 Block of New Warrington Road at about 3:00. The 19 year old Alderman was arrested without incident. Alderman’s charges include Failure to Register as a Sex Offender, Probation Violation for a weapon charge and Failure to Appear on a larceny arrest. All men were booked into Escambia County Jail. Ries has an $11,000 bond, Jones $95,250.00 and Alderman has a $5,000 bond on the Failure to Register but no bond on the other charges.

Friday, August 17, 2012

ALLEGED MURDERER AND FUGITIVE CAUGHT AFTER 6 WEEK INVESTIGATION

FROM: U.S. MARSHALS TASK FORCE
August 15, 2012
 
Cleveland, OH
– U.S. Marshal Pete Elliott announces that the U.S. Marshals Northern Ohio Violent Fugitive Task Force (NOVFTF) has arrested fugitive Nathan Summerfield, age 27, this morning in Wadsworth, OH. Summerfield, who was an Ashland, OH resident, is wanted for the murder of Lynn Jackenheimer, which took place on July 3rd in Dare County (Outer Banks), North Carolina. Summerfield has been on the run since early July and the case has received national media attention to include airings on America’s Most Wanted.
 

In early July, the U.S. Marshal’s office in Greenville, NC received the murder warrant from the Dare County Sheriff’s Office and then contacted the NOVFTF to request assistance in the fugitive investigation for Summerfield, as it related to Northern Ohio.
 

The NOVFTF has worked diligently on this investigation over the last 6 weeks, teaming up with the Ashland County Sheriff’s Office and Ashland Police Department, along with other Task Force partner agencies to follow up on all leads and continue the fugitive investigation within Northern Ohio. Summerfield’s photo was published in local and national media, and also on digital billboards across several states. The NOVFTF received hundreds of tips, all of which were followed up by U.S. Marshals across the nation to include but not limited to Ohio, North Carolina, West Virginia, Michigan, Pennsylvania and Illinois.
 

This morning, at approximately 9:30 a.m., all the hard work of the NOVFTF paid off when Summerfield was found hiding within the Northern District of Ohio. Early this morning, the NOVFTF developed information that placed Summerfield at the Legacy Inn & Suites at 810 High Street in Wadsworth, OH. The NOVFTF gathered an arrest team to include Deputy U.S. Marshals and Task Force Officers from the NOVFTF Richland County Division and NOVFTF Akron Division, as well as officers from the Wadsworth Police Department. The NOVFTF was able to confirm that Summerfield was in a room at the hotel and had checked in yesterday under an alias. Officers made entry into the room and arrested Summerfield without incident. Summerfield was transported to the Medina County Sheriff’s Office to await extradition to North Carolina to face the murder charges.
 

U.S. Marshal Pete Elliott stated, "This has been an intensive investigation following a horrible crime. We are extremely relieved and thankful that the time and effort poured into this manhunt has resulted in the safe capture of Nathan Summerfield and this hopefully brings some relief and justice to the family and friends of Lynn Jackenheimer."
 

Ashland County Sheriff E. Wayne Risner stated, "This was a great coordinated effort by all the law enforcement partners involved. It is truly great to see the response and dedication that these officers put forward when tragedy struck family and friends within our county."

Thursday, August 16, 2012

BRUTAL ASSAULT SUSPECT APPREHENDED

FROM: U.S. MARSHALS SERVICE
U.S. Marshals Task Force Arrests Man Wanted for Brutal Assault on Four People
August 14, 2012
Cleveland, OH
– Early this morning, at approximately 12:30 a.m., the U.S. Marshals Northern Ohio Violent Fugitive Task Force, with the assistance of the Trumbull County Sheriff’s Office, arrested Marco Correa, age 27, near the 100 block of Arhaven Drive in Newton Falls, OH. Correa was wanted by the Cleveland Division of Police for four counts of felonious assault. It is alleged that Correa was one of five people that were involved in an unprovoked assault at Charlie’s Place on Lorain Ave. in Cleveland that left two people unconscious, permanently blinded a waitress, and broke the jaw of an off-duty Cleveland police officer that stepped in to help the victims.

Last Friday, the Cleveland Division of Police requested assistance from the U.S. Marshals Task Force to locate Correa. Correa was previewed in local media yesterday as the "Fugitive of the Week". Within hours, tips began to pour in and information was developed that Correa was staying at a home. in Newton Falls. Deputy U.S. Marshals and Task Force Officers went to the residence earlier in the day on Monday but did not find Correa. Late Monday night investigators received a tip the Correa was back at the home on Arhaven Dr. and the Task Force quickly responded to the residence. This time Correa was located inside. He was arrested without incident and transported to the Trumbull County Jail.

U.S. Marshal Pete Elliott stated, "Once again the partnership between law enforcement, the media and the public worked together to bring this violent fugitive to justice. We are hopeful this arrest brings some peace to the victims and their families that are continuing to suffer from this horrible crime."

Monday, August 13, 2012

PHARMA COMPANY PLEADS GUILTY TO DEALING DRUGS IN THE "GREY MARKET"

FROM: U.S. DEPARTMENT OF JUSTICE
Friday, August 10, 2012
South Carolina Pharmaceutical Distribution Company Pleads Guilty in Multi-Million Dollar Scheme to Purchase and Sell Drugs in the Grey Market

The Department of Justice announced the guilty plea and sentencing of Easley, S.C.-based Altec Medical for engaging in a multi-million dollar prescription drug scheme. Altec Medical pleaded guilty in U.S. District Court in Miami to one count of conspiring to defraud the U.S. Food and Drug Administration (FDA) and to commit federal offenses in connection with a drug-diversion scheme that lasted from 2007 to 2009.
 
In the sentencing, U.S. District Judge Robert N. Scola, Jr. ordered Altec to pay a $2 million fine and to forfeit $1 million. The judge also ordered the company to be on probation for one year.
 
In a criminal information filed with the court, the government charged that Altec paid its supplier and co-conspirator William D. Rodriguez, approximately $55 million for prescription drugs that it knew had been diverted from lawful channels of drug wholesale distribution. "Drug Diversion" refers to various ways in which prescription drugs are removed from lawful channels of distribution and then reintroduced into the marketplace for sale to consumers. In drug diversion schemes, prescription drugs at issue are often stolen from warehouses or cargo trucks; torn from boxes of free samples, repackaged and resold; or bought from individual patients looking to make extra money.
 
"Drug diversion undermines the safety and effectiveness of our prescription drug system," said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division. "When individuals divert drugs from lawful channels, we cannot be sure that the drugs are properly handled and stored. As a result, diverted drugs could be expired, become contaminated, or have their mechanisms of action altered. Diversion is a serious crime that puts consumers at risk; we will continue to prosecute those who engage in it aggressively."
 
The Justice Department advises consumers who have concerns about a drug to check the lot numbers on the manufacturer’s web site to see if there are any warnings about it.
 
According to a plea agreement that was filed with the court, Altec became aware that Rodriguez had bought these drugs from individuals who had acquired them illegally and who were not properly licensed to sell prescription drugs on a wholesale basis. The government further charged that Altec and Rodriguez orchestrated the reentry of these drugs into the lawful channels of distribution. According to the government, Rodriguez first sent the diverted drugs to companies he controlled in South Carolina. His companies, in turn, resold the drugs to Altec, which, in turn, resold the drugs to various purchasers throughout the United States, including drug distributors with valid drug distribution licenses. This process caused reentry of the diverted drugs into the ordinary, lawful channels of distribution. Eventually, the diverted drugs were bought by retail pharmacies, which dispensed the drugs by filling prescriptions for individual consumers.
 
Finally, the government charged that Altec and Rodriguez attempted to conceal their scheme by falsifying a variety of business records. In particular, Altec and Rodriguez falsified documents known as "drug pedigrees." Drug pedigrees are statements required by the FDA of all those who sell wholesale quantities of prescription drugs. The drug pedigrees are supposed to accurately identify all prior sales and transactions so that it is clear that the drugs have been acquired lawfully, and properly stored and held along the way. Despite knowing that the law required accurate pedigrees, Altec admitted that it created pedigrees that falsified prior transactions to make it appear as though the drugs had originally been acquired lawfully.
 
Use of diverted drugs can cause unpredictable adverse side effects and may fail to treat the condition for which a consumer is taking the drugs. According to the government, neither purchasers who bought from Altec nor consumers who later bought the drugs at retail pharmacies would have purchased the drugs had they known that the drugs had been diverted.
 
In June 2012, in U.S. District Court in Miami, Rodriguez pleaded guilty to conspiracy and money laundering in a separate case charging him with, among other things, his role in this drug diversion scheme. He has not yet been sentenced.
 
The case was prosecuted by Assistant U.S. Attorney Jon M. Juenger, of the U.S. Attorney’s Office for the Southern District of Florida, and David A. Frank, of the Justice Department’s Consumer Protection Branch. Additional assistance was provided by Joshua Eizen, of the FDA’s Office of Chief Counsel for Enforcement. The case was investigated by the FDA’s Office of Criminal Investigations.

Sunday, August 12, 2012

OBAMA ADMINISTRATION STARTS CRACKDOWN ON SNAP FRAUD

FROM: U.S. DEPARTMENT OF AGRICULTURE, SNAP PROGRAM, SNAP FRAUD
USDA Unveils New Aggressive Tactics to Counter Fraud and Enhance SNAP Program Integrity

Strengthened Measures Target Bad Actors in Nation's Supplemental Nutrition Assistance Program

 
WASHINGTON, August 9, 2012— Agriculture Under Secretary Kevin Concannon today announced a broad range of additional strategies to further improve program integrity in USDA's (SNAP) and hold those misusing benefits accountable. The measures include tougher financial sanctions for the small number of retailers that defraud the program and new requirements and tools for States to ensure benefits go solely to eligible individuals.
 
"USDA has a zero tolerance policy for SNAP fraud," said Concannon. "These additional measures reaffirm our ongoing commitment to ensuring these dollars are spent as intended–helping millions of people in need get back on solid economic footing."
 
The retailer sanctions proposal allows USDA to not only permanently disqualify a retailer who traffics, but also assess a monetary penalty in addition to the disqualification. Financial penalties would be proportional to the amount of SNAP business the store is conducting, which will help ensure that the financial punishment more closely fits the crime. Currently, when a retailer is found guilty of fraud or abuse, USDA can either disqualify the retailer from participating in SNAP, or issue a financial penalty, but not both.
 
Today's announcement includes new requirements for States to take specific actions that would catch fraud and abuse on the front end and ensure that ineligible people do not participate in the program. The new standards strengthen integrity by giving States an additional tool to identify cases that may require further investigation and review when an applicant or recipient is found in a Federal database.
 
"These requirements will make us better at identifying potential fraud and abuse before it occurs, as well as help us hold bad actors even more accountable than in the past and discourage them from abusing the public's trust," said Concannon.
 
Concannon also today released third quarter, fiscal year 2012 results of USDA work in fighting fraudulent activity in SNAP retail stores, tallying final actions to sanction or disqualify retailers violating program rules. In that quarter, USDA staff took final actions to:
 
Impose sanctions, through fines or temporary disqualifications, on more than 574 stores found violating program rules; and
 
Permanently disqualify 1,016 stores for trafficking SNAP benefits (i.e. exchanging SNAP benefits for cash) or falsifying an application.
 

These announcements are part of the Obama Administration's ongoing Campaign to Cut Waste designed to fight fraud and abuse in Federal programs. .USDA continues to work with local, state and federal partners to root out fraud, waste and abuse in SNAP and ensure the integrity of our nation's most important food assistance program. Recent actions include:
 
Sending letters to the CEOs of Craigslist, Ebay, Facebook and Twitter to reiterate the need to help prevent the illegal sale or purchase of SNAP benefits online;
 
Proposing a rule to provide States the option to require recipients to make contact with the state when there have been an excessive number of requests for EBT card Replacements;
 
Increasing documentation required for high-risk stores applying to redeem SNAP benefits;
 
Continuing to notify state social service agencies and federal agency partners about violators to better protect our public programs. This includes information on program recipients with suspicious transactions at stores that have been sanctioned for trafficking so that the recipients can be further investigated by States.
 

Reducing childhood obesity and improving the nutrition of all Americans are vital to achieve a healthy future for America. That's why the Obama administration and USDA are committed to promoting healthy eating and active lifestyles and to ensuring that all Americans have access to safe, nutritious, and balanced meals.
 
SNAP–the nation's first line of defense against hunger–helps put food on the table for millions of low income families and individuals every month. The largest of USDA's 15 nutrition assistance programs, it has never been more urgently needed than it is today. SNAP is a vital supplement to the monthly food budget of more than 46 million low-income individuals. Nearly half of SNAP participants are children and more than 40 percent of recipients live in households with earnings.

Saturday, August 11, 2012

WOMAN BARRED FROM PREPARING TAXES FOR CLAIMING IMPROPER INDIAN EMPLOYMENT CREDITS FOR CUSTOMERS

FROM: U.S. DEPARTMENT OF JUSTICE,
Friday, August 10, 2012
New York Federal Court Bars Woman from Preparing Tax Returns
Tax Preparer in East Rockaway, N.Y., Allegedly Claimed Improper Indian Employment Credits for Customers
 
A federal court in Central Islip, N.Y., has permanently barred Diana D. Bertocci-Aliffi from preparing federal tax returns for others, the Justice Department announced today. The civil injunction order, to which Aliffi agreed without admitting the government’s allegations, was signed by Judge Joanna Seybert of the U.S. District Court of the Eastern District of New York.

The government complaint in the case alleged that Aliffi, of East Rockaway, claimed false Indian Employment Tax Credits (IETCs) for customers who were not eligible for the credits. The IETC is a credit for employers of certain qualified employees who are or whose spouses are members of an enrolled Indian tribe. It is not a credit for Native Americans who have no qualified employees. According to the complaint, Aliffi falsely told her customers, many of whom lived on or near the Shinnecock Indian Reservation in Southampton, N.Y., that they were eligible for the credit simply because they were Native Americans and lived on or near a reservation. Aliffi allegedly prepared federal income tax returns for these customers and improperly claimed the IETC on the returns. Aliffi also allegedly fabricated wage income and tax withholding on other customers’ tax returns in order to obtain larger tax refunds.

The government complaint alleged that Aliffi was incarcerated from February to August 2009 after pleading guilty in a New York state court to 76 counts of grand larceny, identity theft and forgery related to her tax preparation activities. According to the complaint she had stolen her customers’ personal information to file false federal and New York State tax returns, applied for refund anticipation loans using the false returns, and then diverted part of those loans to her own bank accounts.

Friday, August 10, 2012

COURT SHUTS DOWN TAX RETURN PREPARERS

FROM:  U.S. DEPARTMENT OF JUSTICE
Thursday, August 9, 2012
Federal Court Shuts Down Florida Tax Return Preparers
 
 
A federal court in Miami has permanently barred Sharon Angulo and Claudia Zuloaga, both of Miami, from preparing federal tax returns for others, the Justice Department announced today. The injunction order was signed by Judge Joan A. Lenard of the U.S. District Court for the Southern District of Florida.

According to the government complaint in the civil case, Angulo and Zuloaga help customers use Internal Revenue Service (IRS) Forms 1099-OID to report fictitious income tax withholding. The complaint alleges that Angulo and Zuloaga’s customers file federal tax returns claiming tax refunds based on the fake withholding. The complaint states that the defendants have prepared or assisted in the preparation of at least 19 tax returns reporting false withholding and claiming fraudulent tax refunds totaling more than $3 million.

The court ordered Angulo and Zuloaga to pay to the U.S. Treasury the funds they received from customers who paid them a percentage of the tax refunds received through the scheme. The court also ordered the defendants to provide the government with a list of all persons for whom they prepared federal tax returns or forms since 2008.

The IRS lists return preparer fraud as one of the Dirty Dozen Tax Scams for 2012. In the past decade the Justice Department’s Tax Division has obtained hundreds of injunctions to stop the promotion of tax-fraud schemes and the preparation of fraudulent returns. More information about these cases is available on the Justice Department website.


Thursday, August 9, 2012

PHILADELPHIA MAN PLEADS GUILTY TO LA COSA NOSTRA ACTIVITIES

FROM: U.S. DEPARTMENT OF JUSTICE
WASHINGTON – Martin Angelina, 50, of Philadelphia, pleaded guilty today to participating in a racketeering conspiracy involving loan sharking and illegal gambling, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania and George C. Venizelos, Special Agent in Charge of the FBI’s Philadelphia Division.

At the plea hearing before U.S. District Judge Eduardo C. Robreno of the Eastern District of Pennsylvania, Angelina pleaded guilty to conspiring to conduct and participate in the affairs of the Philadelphia La Cosa Nostra (LCN) Family through a pattern of racketeering activity. He admitted to the court that he attempted to collect payments related to usurious loans by using extortionate means and operated an illegal video poker machine business in furtherance of the racketeering conspiracy. His sentencing is scheduled for Dec. 3, 2012.

Angelina was among 14 members and associates of the Philadelphia LCN Family charged with crimes involving racketeering conspiracy, extortion, loan sharking, illegal gambling, witness tampering and theft from an employee benefit plan in a third superseding indictment returned by a federal grand jury in Philadelphia on July 25, 2012. The other defendants charged in the 52-count third superseding indictment included Philadelphia LCN Family boss Joseph Ligambi, Philadelphia LCN Family underboss Joseph Massimino, George Borgesi, Gaeton Lucibello, Anthony Staino Jr., Damion Canalichio, Louis Barretta, Gary Battaglini, Robert Verrecchia, Eric Esposito, Robert Ranieri, Joseph Licata and Louis Fazzini.

Gaeton Lucibello pleaded guilty to racketeering conspiracy charges on Aug. 2, 2012, and is scheduled to be sentenced on Nov. 26, 2012.

The trial for Ligambi, Massimino, Borgesi, Staino, Canalichio, Barretta, Battaglini, Licata and Fazzini is scheduled for Oct. 9, 2012. The trial for Verrecchia, Esposito and Ranieri has not yet been scheduled. Ligambi, Massimino, Borgesi, Canalichio, Licata and Fazzini are detained while awaiting trial. Staino, Barretta, Battaglini, Verrecchia, Esposito and Ranieri are free on bond while awaiting trial.

The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Frank A. Labor III and Suzanne B. Ercole of the Eastern District of Pennsylvania. Valuable prosecutorial assistance was provided by the Pennsylvania Office of the Attorney General.

The case is being investigated by the FBI, the Internal Revenue Service Criminal Investigation Division, the Pennsylvania State Police, the New Jersey State Police, the Philadelphia Police Department, and the U.S. Department of Labor’s Office of Inspector General Office of Labor Racketeering and Fraud Investigations, and Employee Benefits Security Administration. Additional assistance was provided by the New Jersey Department of Corrections.

Wednesday, August 8, 2012

TAX PREPARER ACCUSED OF FALSIFYING CUSTOMER'S RETURNS TO MAXIMISE EARNED INCOME CREDIT

FROM: U.S. JUSTICE DEPARTMENT
Tuesday, August 7, 2012
Justice Department Seeks to Shut Down Chicago Tax Preparer
Chicago Man Allegedly Falsifies Customers’ Returns to Maximize Earned Income Credit
 
The Justice Department announced that it has asked a federal court in Chicago to bar Bruce E. Grant and his business, Quick Check Limited, from preparing tax returns. The civil injunction suit alleges that Grant falsifies customers’ income on their tax returns, frequently by fabricating business income and expenses, in order to claim the maximum earned income tax credit (EITC) for them.

The EITC is a refundable credit available to certain low-income people. The maximum credit in 2010 was $5,666. Due to the method used to calculate the EITC, individuals with higher annual incomes may be entitled to a larger credit. Some tax preparers refer to the range of earned income generating a maximum EITC as the "sweet spot." According to the complaint, Grant fabricated businesses and reported fake business income and expenses on his customers’ tax returns to achieve reported income in the EITC sweet spot.

The complaint alleges that Grant pleaded guilty in 2006 to one count of conspiracy to defraud the United States, based on allegations that Grant charged customers a fee for listing a false dependent on the customers’ tax returns. The government now seeks to bar Grant permanently from preparing federal tax returns altogether. According to the complaint, Grant’s Social Security number identified him as the paid preparer on 2,555 individual income tax returns prepared in 2011. Of these returns, 2,543 request a refund, an extraordinarily high refund rate of 99.5 percent.

Tuesday, August 7, 2012

LA COSA NOSTRA FAMILY MEMBER PLEADS GUILTY!

FROM: U.S. DEPARTMENT OF JUSTICE
Thursday, August 2, 2012

Member of the Philadelphia La Cosa Nostra Family Pleads Guilty to Racketeering Conspiracy

WASHINGTON – Gaeton Lucibello, 59, of Philadelphia, pleaded guilty today to participating in a racketeering conspiracy involving extortion and illegal gambling, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania and George Venizelos, Special Agent in Charge of the FBI’s Philadelphia Division.

At the plea hearing before U.S. District Judge Eduardo C. Robreno of the Eastern District of Pennsylvania, Lucibello pleaded guilty to conspiring to conduct and participate in the affairs of the Philadelphia La Cosa Nostra (LCN) Family through a pattern of racketeering activity. He admitted to the court that he assisted in shaking down a bookmaker for "street tax" payments and operated two illegal video poker machine businesses in furtherance of the racketeering conspiracy. His sentencing is scheduled for Nov. 26, 2012.

Lucibello was among 14 members and associates of the Philadelphia LCN Family charged with crimes involving racketeering conspiracy, extortion, loan sharking, illegal gambling, witness tampering, and theft from an employee benefit plan in a third superseding indictment returned by a federal grand jury in Philadelphia on July 25, 2012. The other defendants charged in the 52-count third superseding indictment included Philadelphia LCN Family boss Joseph Ligambi, Philadelphia LCN Family underboss Joseph Massimino, George Borgesi, Martin Angelina, Anthony Staino Jr., Damion Canalichio, Louis Barretta, Gary Battaglini, Robert Verrecchia, Eric Esposito, Robert Ranieri, Joseph Licata and Louis Fazzini.

The trial for Ligambi, Massimino, Borgesi, Angelina, Staino Jr., Canalichio, Barretta, Battaglini, Licata and Fazzini is scheduled for Oct. 9, 2012. The trial for Verrecchia, Esposito and Ranieri has not yet been scheduled. Ligambi, Massimino, Borgesi, Angelina, Canalichio, Licata and Fazzini are detained while awaiting trial. Staino Jr., Barretta, Battaglini, Verrecchia, Esposito and Ranieri are free on bond while awaiting trial.

The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Frank A. Labor III and Suzanne B. Ercole of the Eastern District of Pennsylvania. Valuable prosecutorial assistance was provided by the Pennsylvania Office of the Attorney General.

The case is being investigated by the FBI, the Internal Revenue Service Criminal Investigation Division, the Pennsylvania State Police, the New Jersey State Police, the Philadelphia Police Department, and the U.S. Department of Labor’s Office of Inspector General Office of Labor Racketeering and Fraud Investigations, and Employee Benefits Security Administration. Additional assistance was provided by the New Jersey Department of Corrections.

Monday, August 6, 2012

FORMER POLICE CHIEF CONVICTED REGARDING AN ASSAULT ON A FULLY RESTRAINED DETAINEE

FROM: U.S. DEPARTMENT OF JUSTICE
Thursday, August 2, 2012
Former Georgia Police Chief Convicted on Federal Civil Rights ViolationA federal jury in Valdosta, Ga., convicted defendant Walter Young, 54, the former chief of the Omega Police Department in Omega, Ga., for physically abusing a man in his custody, the Justice Department announced.

On March 24, 2011, Young, while acting in his capacity as the chief of police, assaulted Alfonso Moreno, a pretrial detainee, by repeatedly slapping and punching him in the head and face while he was fully restrained in a restraint chair, violating the civil rights of the detainee. The defendant struck the victim eight times, causing him to bleed. X-rays the next day showed the victim had a broken nose. The assault was captured on the jail's video surveillance system. The jury further found that Alfonso Moreno suffered bodily injury as a result of Young’s use of excessive force.

"Most officers do their job with honor, but this officer abused the authority entrusted to him by his community," said Assistant Attorney General for Civil Rights Thomas Perez. "The federal government will continue to vigorously prosecute individuals who violate the Constitutional rights of others."

The defendant faces a maximum penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 29, 2012, before Judge Hugh Lawson, U.S. District Judge for the Middle District of Georgia.

This case was investigated by the FBI, and is being prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Tona Boyd of the Civil Rights Division of the U.S. Department of Justice, with the assistance of the U.S. Attorney’s Office for the Middle District of Georgia.

Sunday, August 5, 2012

FEDERAL OFFICER PLEADS GUILTY TO SEXUALLY ASSAULTING THREE WOMEN

FROM: U.S. DEPARTMENT OF JUSTICE
Tuesday, July 24, 2012

U.S. Customs and Border Protection Officer Pleads Guilty in Miami to Civil Rights Violations for Sexual Assault of Three Women

WASHINGTON – U.S. Customs and Border Protection (CBP) Officer Paulo Morales, 47, of Miami, pleaded guilty today in U.S. District Court in Miami to three civil rights offenses for sexually groping three women in his custody, the Justice Department announced today.

During the plea proceedings, Morales admitted that on various dates in January 2011, while working as an officer with CBP at the Miami International Airport, he groped the breasts of three separate women without their consent and while they were in the custody of CBP.

"Officers who sexually assault individuals in their custody defy the public trust bestowed upon law enforcement officials, and their actions will not be tolerated," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "The Justice Department will continue to investigate and prosecute criminal civil rights violations committed by law enforcement officials."

"This former Customs and Border Protection officer misused his office and his power to sexually assault three women in his custody at Miami International Airport, in violation of their civil rights," said U.S. Attorney for the Southern District of Florida Wifredo A. Ferrer. "My office and the Department of Justice are fully committed to protecting the civil rights of our citizens from all types of abuses."

"Immigration and Customs Enforcement’s Office of Professional Responsibility is dedicated to aggressively investigating all allegations of criminal and serious misconduct involving employees within our area of responsibility," said Southeast Region Special Agent in Charge David P. D’Amato of U.S. Immigration and Customs Enforcement, Office of Professional Responsibility (ICE-OPR). "ICE-OPR takes great pride in protecting the integrity of all ICE and CBP employees. A law enforcement badge is a privilege; we will not tolerate its misuse as a key to assert power or unlawful force over those in one’s custody."

Sentencing is scheduled for Oct. 26, 2012. Morales faces a maximum sentence of three years in prison and a fine of up to $300,000.

This case is being investigated by ICE-OPR and CBP Internal Affairs, and is being prosecuted by Trial Attorney Henry Leventis of the Civil Rights Division and Assistant U.S. Attorney William White of the U.S. Attorney's Office for the Southern District of Florida.

Saturday, August 4, 2012

HACKER GETS SEVEN YEARS IN PRISON FOR STEALING OVER 240,000 CREDIT CARD NUMBERS

FROM: U.S. DEPARTMENT OF JUSTICE
Wednesday, July 18, 2012
Hacker Sentenced to Seven Years in Prison for Role
in Two Hacking Schemes Involving a Total of More Than 240,000 Stolen Credit Card
Numbers

WASHINGTON – Aleksandr Suvorov, of Estonia, was sentenced today to seven years in prison for his role in two separate hacking schemes involving a total of more than 240,000 stolen credit card numbers.

The sentence was announced today by Assistant Attorney General Lanny A. Breuer for the Criminal Division, U.S. Attorney for the Eastern District of New York Loretta E. Lynch, U.S. Attorney for the Southern District of California Laura E. Duffy and Director of the U.S. Secret Service Mark Sullivan.

Suvorov, 28, was sentenced by U.S. District Judge Sandra J. Feuerstein in Central Islip, N.Y. Suvorov was an accomplice to Albert Gonzalez, one of the most prolific identity thieves ever prosecuted by the U.S. government.

Suvorov pleaded guilty in May 2009 to a wire fraud conspiracy charge, filed in the Eastern District of New York, for hacking into the national restaurant chain Dave & Buster’s and stealing more than 80,000 credit card numbers. In addition, Suvorov pleaded guilty in November 2011 to a trafficking in unauthorized access devices charge, originally filed in the Southern District of California, related to the sale of more than 160,000 stolen credit card numbers to an undercover agent with the U.S. Secret Service. The cases were consolidated in the Eastern District of New York for sentencing. In addition to his prison term, Suvorov was ordered to pay $675,000 in restitution and to satisfy a $300,000 asset forfeiture judgment stemming from the New York charges.

"Mr. Suvorov participated in a scheme to sell thousands of credit card numbers stolen from unsuspecting consumers," said Assistant Attorney General Breuer. "Computer hackers like Mr. Suvorov victimize businesses and individuals, posing a serious threat to their financial security. Today’s sentence sends a clear message that cyber criminals operating abroad will suffer severe consequences for their crimes."

"Suvorov reached across an ocean to victimize thousands of Americans," said U.S. Attorney Lynch. "That ocean was no protection from the reach of U.S. law enforcement, whose coordinated efforts put a stop to Suvorov and his cohorts’ criminal scheme. He will now serve his sentence in the country of his victims. Computer hackers and identity thieves who prey on innocent American consumers, businesses and financial institutions will find no refuge from U.S. criminal justice in any corner of the globe."

"This international criminal enterprise thought that they could traffic in stolen credit card information from abroad, but due to the coordinated efforts of the United States Secret Service and the Justice Department, they were wrong," said U.S. Attorney Duffy. "The agents of the San Diego field office of the United States Secret Service are to be commended for their investigative work in dismantling this organization."

"This case demonstrates the potential for criminals to inflict significant damage to our nation’s financial sector, but this investigation and the resulting sentences should serve as a warning to cyber criminals that law enforcement will continue to pursue them wherever they are," said U.S. Secret Service Director Sullivan. "The Secret Service, in conjunction with its many law enforcement partners across the United States and around the world, continues to successfully combat these crimes by adapting our investigative methodologies. We realize our success in this investigation is due to the cooperation of these partners in more than a dozen international law enforcement agencies."

According to court documents, in the New York case, Suvorov, Albert Gonzalez and a third co-conspirator devised a scheme to gain unauthorized access into the computer systems of Dave & Buster’s Inc. for the purposes of installing malicious software and extracting credit card information of the Dave & Buster’s patrons. Gonzalez, who was in Miami, sent the software, known as a "packet sniffer," to a co-conspirator in Ukraine. A packet sniffer is malicious software designed, in this case, to collect credit card information. The co-conspirator in Ukraine then provided the packet sniffer to Suvorov in Estonia. Suvorov, working with another individual, gained unauthorized access to 11 Dave & Buster’s restaurants throughout the United States, one of which was in Islandia, N.Y., and installed the packet sniffer. Suvorov and his co-conspirators ultimately obtained data from 81,005 credit cards.

Gonzalez was sentenced in March 2010 to 20 years in prison for his role in the Dave & Buster’s hack, as well as hacks into a major payment processor and several retail networks. The other co-conspirator was arrested in Turkey on related identity theft charges, and was sentenced there to 30 years in prison.

In the California case, Suvorov and an accomplice conspired to sell more than 160,000 stolen credit card numbers to a buyer in San Diego who was an undercover agent with the U.S. Secret Service. Suvorov provided the stolen credit card numbers to an accomplice, who in turn sold them to the undercover agent.

The New York case was prosecuted by Assistant U.S. Attorney William Campos of the Eastern District of New York and Trial Attorneys James Silver and Evan Williams of the Criminal Division’s Computer Crime & Intellectual Property Section (CCIPS) and was investigated by the U.S. Secret Service Criminal Investigative Division Cyber Investigations Branch. Former CCIPS Assistant Deputy Chief Howard Cox and Senior Counsel Kimberly Peretti also contributed significantly to the investigation and prosecution of this case. The California case was prosecuted by Assistant U.S. Attorney Orlando Gutierrez of the Southern District of California and investigated by the U.S. Secret Service San Diego Field Office. The Office of International Affairs in the Criminal Division provided significant assistance.

Friday, August 3, 2012

LANDLORD SETTLES TENANT SEXUAL HARASSMENT CASE FOR $855,000

FROM: U.S. DEPARTMENT OF JUSTICE
Wednesday, July 18, 2012
Justice Department Obtains $855,000 Judgment Against Cincinnati Landlord for Sexually Harassing His Tenants
WASHINGTON – Cincinnati landlord Henry E. Bailey agreed to the entry of an $855,000 civil judgment against him, after admitting that he violated the Fair Housing Act as alleged in a complaint filed by the Justice Department in federal court, the department announced today. The department’s complaint alleged that Bailey subjected female tenants and applicants for tenancy to unwanted sexual comments and touching, entered the apartments of female tenants without notice or permission, granted tangible housing benefits in exchange for sexual favors and took adverse actions against female tenants when they refused his sexual advances.

"The women involved were subjected to intimidating and severe acts of unwanted sexual conduct in their homes, where they expected to feel safe," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "This judgment reflects the gravity of the alleged conduct."

Under the terms of the consent judgment, which was approved by the U.S. District Court for the Southern District of Ohio earlier today, Bailey is obligated to pay $800,000 in damages to 14 women he sexually harassed and $55,000 in a civil penalty to the United States. In addition, the consent judgment enjoins Bailey from further acts of discrimination and requires him to retain an independent management company to manage any currently rented units and any future rental properties he acquires.

"This helps right the wrongs committed against vulnerable individuals," said U.S. Attorney for the Southern District of Ohio Carter Stewart. "Going forward, the decree sends a message that property owners must respect the rights of their tenants and those who seek safe, secure housing."

The department began investigating Bailey after Housing Opportunities Made Equal, a Cincinnati-based non-profit fair housing advocacy group, notified the department of sexual harassment complaints it had received about Bailey.

Thursday, August 2, 2012

MAN ARRESTED FOR ALLEGEDLY PRACTICING CYBER SEXTORTION

FROM:  U.S. DEPARTMENT OF JUSTICE
Wednesday, July 18, 2012
Maine Resident Charged and Arrested for Allegedly Engaging in Cyber “Sextortion” of New Hampshire Victim
WASHINGTON – A Maine resident was charged in a criminal complaint unsealed today in the District of New Hampshire for allegedly engaging in a type of cyber extortion known as “sextortion,” announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney John P. Kacavas of the District of New Hampshire.

John Bryan Villegas, 21, of Kittery, Maine, was arrested yesterday and made his initial appearance today in federal court in New Hampshire. Villegas is charged with one count of engaging in computer intrusion involving extortion and one count of making extortionate interstate threats.

The complaint affidavit alleges that Villegas attempted to extort the victim, a New Hampshire resident, into providing him with sexually explicit photographs and videos of the victim. He sent the victim interstate e-mail messages in which he threatened to publish on the internet, and distribute to the victim’s neighbors and work and social acquaintances, other sexually explicit photographs of the victim that he obtained from a computer without authorization.

If convicted, Villegas faces a maximum sentence of two years in prison on the interstate threats charge and five years in prison on the computer intrusion charge, to be followed by up to three years of supervised release, a fine of up to $500,000 and restitution.

The case was investigated by the U.S. Secret Service and is being prosecuted by Trial Attorney Mona Sedky of the Computer Crime and Intellectual Property Section in the Justice Department’s Criminal Division and Assistant U.S. Attorney Arnold H. Huftalen of the District of New Hampshire. The Department would like to thank the cooperation of the Dover, N.H., and Kittery, Maine, police departments and the Naval Criminal Investigative Service (NCIS).

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

Wednesday, August 1, 2012

ARYAN BROTHERHOOD OF TEXAS GANG MEMBER GETS 10 YEARS IN PRISON FOR AGGRAVATED ASSAULT

FROM: U.S. DEPARTMENT OF JUSTICE
An Aryan Brotherhood of Texas (ABT) gang member from Houston was sentenced today to serve 10 years in prison for his role in an aggravated assault that took place in Tomball, Texas, in September 2008, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.


David Harlow, 43, aka "Bam Bam," was found guilty at trial on March 21, 2012, of racketeering aggravated assault and conspiracy to commit racketeering aggravated assault for his role in the severe beating of a prospective ABT member. Harlow was convicted on two counts and sentenced to serve 36 months on count one and 120 months on count two, to run concurrently. In addition to the prison term, Harlow was also sentenced to pay a $2,000 fine by senior U.S. District Court Judge Ewing Werlein Jr.

According to court documents, Harlow was a member of the ABT, a powerful race-based, state-wide organization that operated inside and outside of state and federal prisons throughout the United States. The ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to court documents, previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT has expanded its criminal enterprise to include illegal activities for profit.

According to court documents, the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as "direct orders."



According to court documents, Harlow, along with 11 fellow ABT gang members, participated in the beating of a prospective ABT member at the home of another ABT gang leader, Steven Walter Cooke, 48, aka "Stainless," in Tomball, on Sept. 22, 2008. The ABT prospect, who sustained serious bodily injury, was beaten by ABT gang members because he violated ABT rules of conduct.

The remaining 11 co-defendants have pleaded guilty for their roles in the assault.

This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; the FBI; the U.S. Marshals Service; the Texas Ranger Division – Texas Department of Public Safety; the Walker County, Texas, Sheriff’s Office; the Montgomery County, Texas, Sheriff’s Department; the Houston Police Department-Gang Division; the Tomball Police Department; the Texas Department of Criminal Justice–Inspector General; and the Harris County, Texas, Sheriff’s Office.

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