MEMPHIS POLICE OFFICER CONVICTED OF CIVIL RIGHTS VIOLATION

The following excerpt is from the Department of Justice website:
Friday, March 30, 2012
West Memphis, Ark., Police Department Officer Convicted of Criminal Civil Rights Violation
WASHINGTON – A federal jury convicted West Memphis, Ark., Police Department (WMPD) Officer Scott McCall, 39, of West Memphis, Ark., of one misdemeanor count of Deprivation of Rights under Color of Law.

According to the evidence presented at trial, on June 14, 2010, McCall, while in the lobby of the WMPD, choked an arrestee who was handcuffed behind his back.   Two WMPD dispatchers physically removed McCall from the man he was choking.

“This officer pledged to protect and serve, not to abuse and victimize those who are in his custody,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division.   “The Justice Department is committed to holding officers who engage in such conduct accountable.”

West Memphis Police Department Director of Internal Affairs Lester Ditto, 56, was also charged with three counts of witness tampering for his role in the same incident.   Ditto is scheduled to go to trial later this year.

A misdemeanor count of deprivation of rights under color of law carries a possible punishment of up to one year in prison and a fine of up to $100,000.

The investigation was conducted by the FBI.   The case was prosecuted by Department of Justice Civil Rights Division Trial Attorneys Chiraag Bains and Henry Leventis, and Assistant U.S. Attorney Julie Peters from the Eastern District of Arkansas.

MAN GETS 300 MONTH PRISON TERM FOR HIS CHILD PORN BUSINESS

The following excerpt is from the Department of Justice website:
Friday, March 23, 2012
California Man Sentenced to 300 Months in Prison for Production and Possession of Child Pornography
WASHINGTON – Edward Lee Sullivan, of Oakland, Calif., was sentenced today to 300 months in prison for production and possession of child pornography, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Melinda Haag of the Northern District of California.

Sullivan, 39, was found guilty on Feb. 25, 2011, of one count of producing and one count of possessing child pornography after a 13-day bench trial before U.S. District Court Judge D. Lowell Jensen of the Northern District of California.

Evidence presented at trial showed that during a two-week period in March 2008, Sullivan trained a 14 year-old girl to work for him as a child prostitute.  During the course of those two weeks, Sullivan produced numerous photographs and videos of the minor, which documented the steps Sullivan took to prepare the girl to work as a prostitute and as an actress in pornographic movies.  According to trial evidence, Sullivan filmed at least one pornographic video of the minor, which depicted Sullivan instructing the minor as she performed oral sex on him.  At the time Sullivan committed these crimes, he was on parole following a 2002 state conviction for pimping and sexual conduct with a 14 year-old girl.
Sullivan also was sentenced today to lifetime supervised release following the completion of his prison term.
           
The case is being prosecuted by Assistant U.S. Attorneys Andrew S. Huang and Maureen C. Bessette of the Northern District of California and Trial Attorney Alecia Riewerts Wolak of the Criminal Division’s Child Exploitation and Obscenity Section.  The investigation was conducted by the FBI; the Berkeley, Calif., Police Department; and the Oakland Police Department.

TWO BLOODS GANG MEMBERS CONVICTED FOR THREE MURDERS

Friday, March 23, 2012

Two Bloods Gang Members in Tennessee Convicted for Roles in Three Murders, Racketeering Conspiracy and Firearms Offenses

WASHINGTON – A federal jury in Nashville, Tenn., has convicted two Bloods gang members for their roles in the murder of three individuals, a racketeering conspiracy and committing firearms offenses, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Jerry E. Martin for the Middle District of Tennessee and Special Agent in Charge Glenn N. Anderson for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Nashville Field Division.

           

Keairus Wilson, 22, aka “Key-Thang,” of Nashville, and Rondarius Williamson, 21, also of Nashville, were convicted yesterday in U.S. District Court in Nashville.

Wilson was found guilty on eight counts, including the murders of Michael Goins and Alexandra Franklin.   He also was convicted of racketeering conspiracy, using and carrying firearms during and in relation to crimes of violence, and conspiracy to use and carry firearms during and in relation to crimes of violence.  

Williamson was found guilty on seven counts, including the murder of Andreus Taylor.   He also was convicted of racketeering conspiracy, using and carrying firearms during and in relation to crimes of violence, and conspiracy to use and carry firearms during and in relation to crimes of violence.   

“This Nashville jury has convicted two dangerous members of the Bloods gang for acts of murder and other violent crimes,” said Assistant Attorney General Breuer.   “The evidence showed, among other things, that Mr. Wilson shot and killed two people and Mr. Williamson shot and killed another person.   For their terrorizing conduct, they now each face mandatory life prison terms.   To date, 37 individuals have pleaded guilty or been convicted at trial in Nashville for their involvement with the Bloods.   Through coordinated investigations and prosecutions of the Bloods, Crips, Aryan Brotherhood, Latin Kings, MS-13 and other violent gangs across the country, this Justice Department is working hard to make our communities safer.”

“The verdicts in this case demonstrate the unwavering commitment of the law enforcement agencies and the prosecution team to hold those accountable who insist on creating an atmosphere of violence and sustaining fear in our neighborhoods,” said U.S. Attorney Martin.  “We will continue to vigorously pursue those who engage in such activity and bring them to justice.”

“Jurors in Nashville have sent a loud and clear message with regard to Kearius Wilson and Rondarius Williamson,” said ATF Special Agent In Charge Anderson.   “A lifelong sentence to the Bureau of Prisons could be on the horizon for both of these individuals.  Criminal activity involving senseless acts of murder, gun crimes and other gang-related activity to promote their lifestyle will always be a concern of the law enforcement officers who have worked relentlessly in this long term investigation.   Other gang members in Nashville and across the United States could face similar consequences as cases like these are presented in court.  Today, our neighborhoods are a safer place as this case continues to unfold through the investigative work of all the law enforcement agencies involved.”

According to evidence presented at trial, Wilson and Williamson were both members of the Bloods, a violent street gang that originated in Los Angeles in the 1970s and ultimately migrated to cities throughout the United States, including Nashville.   Specifically, Wilson was a member of the Eastside Skyline Piru set of the Bloods, and Williamson was a member of the Tree Top Piru set of the Bloods.   The Bloods gang has a hierarchal structure and a long-term and often lethal rivalry with the Crips gang.  

From approximately 2006 until December 2011, Bloods gang members committed and conspired to commit acts of murder, attempted murder, robbery and drug trafficking.  Evidence at trial showed that the Bloods gang members met regularly to plan and agree upon the crimes to commit, including murder; maintained and circulated a collection of firearms for use in criminal activity by Bloods members; distributed cocaine, cocaine base, marijuana and hydromorphone; and used the proceeds of those drug transactions to help finance the gang’s illegal activities.   Bloods gang members committed murder and other acts of violence against rival gang members and others during the course of the conspiracy.  

           

According to evidence presented at trial, Wilson and Williamson committed or conspired to commit numerous racketeering acts, including shooting at three different individuals and possessing and selling drugs.   In addition, evidence specifically showed that Wilson shot and killed Goins on June 14, 2008, and shot and killed Franklin on July 19, 2008.   Evidence also showed that Williamson shot and killed Taylor on May 18, 2009, and robbed and carjacked an individual on Oct. 31, 2009.

        

Wilson and Williamson face mandatory penalties of life in prison. U.S. District Judge Aleta Trauger scheduled sentencing for July 5, 2012.  

Thirty-five individuals have pleaded guilty in the Middle District of Tennessee to various crimes related to their involvement in the Bloods gang.   Kenneth Gaddie, aka “K.G.,” remains a fugitive. 

Lonnie Greenlee, co-founder of the Galaxy Star Drug Awareness and Gang Prevention Center in Nashville and father of lead defendant Lonnie Newsome, allowed Bloods gang members to use the facility to conduct gang meetings.   According to evidence presented at trial, Greenlee provided numerous Bloods gang members with fraudulent documentation of court-ordered community service hours in exchange for money.   Greenlee pleaded guilty in May 2011 to one count of racketeering conspiracy.   His sentencing is scheduled for April 2, 2012.   

The investigation was a joint operation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Metropolitan Nashville Police Department; U.S. Marshals Service; the LaVergne, Tenn., Police Department; and the Davidson County, Tenn., Sheriff’s Office.   The case was prosecuted by Trial Attorney Cody L. Skipper of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Scarlett M. Singleton for the Middle District of Tennessee.   

FORMER PUERTO RICO POLICE OFFICER CONVICTED FOR GUARDING DRUG TRANSACTIONS

The following excerpt is from the U.S. Department of Justice website:
Thursday, March 22, 2012
Former San Juan, Puerto Rico, Police Department Officer Convicted for Role in Providing Security for Drug Transactions
WASHINGTON – A former officer with the San Juan, Puerto Rico, Municipal Police Department was convicted by a federal jury yesterday for his role in providing security for drug transactions, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodriguez-Velez of the District of Puerto Rico and Special Agent in Charge Joseph S. Campbell of the FBI’s San Juan Field Office.

Arcadio Hernandez-Soto, 35, was convicted in San Juan of three counts of conspiracy to possess with intent to distribute more than five kilograms of cocaine, four counts of attempting to possess with the intent to distribute more than five kilograms of cocaine and four counts of possession of a firearm in furtherance of a drug transaction.   Hernandez-Soto was charged in an indictment unsealed on Oct. 6, 2010, along with 89 law enforcement officers in Puerto Rico and 44 other individuals, as part of the FBI undercover operation known as Guard Shack.

According to the evidence presented in court, Hernandez-Soto provided security for what he believed were illegal cocaine deals on May 8, 2009; June 4, 2009; July 23, 2009; and July 13, 2010, but which in fact were part of the undercover FBI operation.   According to information presented at trial, Hernandez-Soto was employed as a member of the San Juan Police Department but acted as a security guard for what he believed were cocaine deals by frisking the buyer, providing protection for the deal and escorting the buyer in and out of the transaction.  Information presented at trial also showed that Hernandez-Soto recruited other police officers to participate in the second, third and fourth deals.

In return for the security he provided, Hernandez-Soto received a cash payment of between $2,000 and $3,000 for each transaction.

U.S. District Judge Carmen C. Cerezo did not schedule a sentencing date.  At sentencing, Diaz faces a mandatory minimum sentence of 90 years in prison and a maximum penalty of life in prison.

The case was prosecuted by Trial Attorneys John P. Pearson and Richard B. Evans of the Criminal Division’s Public Integrity Section.   The case was investigated by the FBI.   The U.S. Attorney’s Office for the District of Puerto Rico also participated in the investigation and prosecution of this case.

INSIDE TRADER IN 3 COM STOCK SETTLES WITH SEC

The following excerpt is from the SEC website:
March 20, 2012
Defendant Michael Kimelman Settles SEC Insider Trading Charges
The U.S. Securities and Exchange Commission announced today that on March 16, 2012, The Honorable Richard J. Sullivan of the United States District Court for the Southern District of New York, entered a final judgment against Michael Kimelman in SEC v. Cutillo et al., 09-CV-9208, an insider trading case the SEC filed on November 5, 2009. See Lit. Rel. No. 21283 (Nov. 5, 2009). The SEC charged Kimelman, who was a trader at Lighthouse Financial Group, LLC, with trading on inside information regarding the announced acquisition of 3Com Corp. in September 2007.

In its complaint, the SEC alleged that Arthur Cutillo, a former attorney with the law firm Ropes & Gray LLP, misappropriated from his law firm material nonpublic information concerning, among other things, the potential acquisition of 3Com, and tipped the inside information, through another attorney, to Zvi Goffer, in exchange for kickbacks. The SEC further alleged that Goffer tipped the inside information to a number of individuals, including Kimelman, who traded based on the information, realizing illicit profits of approximately $270,000 in two personal trading accounts.

To settle the SEC’s charges, Kimelman consented to the entry of a final judgment that: (i) permanently enjoins him from violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder; and (ii) orders him to pay disgorgement of $273,255, plus prejudgment interest of $54,582. In a related SEC administrative proceeding, Kimelman consented to the entry of an SEC order barring him from association with any broker or dealer, investment adviser, municipal securities dealer or transfer agent, and barring him from participating in any offering of a penny stock. Kimelman previously was found guilty of securities fraud and conspiracy to commit securities fraud in a related criminal case, United States v. Michael Kimelman, 10-CR-0056 (S.D.N.Y.), and was sentenced to 30 months in prison and ordered to pay a criminal forfeiture of $289,079.

ASSISTANT ATTORNEY GENERAL PEREZ ON GUILTY PLEAS IN RACE BASED MURDER

The following excerpt is from the Department of Justice website:
Assistant Attorney General Thomas E. Perez Speaks at a Press Conference Regarding Guilty Pleas in Mississippi Jackson, Miss. ~ Thursday, March 22, 2012
As prepared for delivery
Today is an important day in the journey for justice for the family of James Craig Anderson, and other African American victims of senseless, racially motivated violence in Jackson.  Earlier today, the Department of Justice secured guilty pleas from three of the individuals responsible for the brutal, racially motivated murder of James Anderson.  This is the eighth case brought under the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, and the first involving the death of a victim.  The Shepard-Byrd Act was named in memory of James Byrd Jr., who died a horrific death in Jasper, Texas, after being dragged behind a pick-up truck on an asphalt road with his ankles bound by a chain.  Mr. Byrd’s death shocked the conscience of the nation.  Sadly, the facts surrounding the murder of Mr. Anderson are a shocking reminder of how hate fueled violence manifests itself in unthinkable ways.

This is a case about a group of racist thugs who made a sport of targeting vulnerable African Americans in Jackson, and attacking them without provocation, simply because of the color of their skin.  On a number of occasions, they drove around Jackson looking for African Americans to assault.  Jackson is a venerable community.  However, for these defendants, Jackson was “Jafrica”; African Americans were subhuman, and their mission was to drive around Jackson looking for African Americans to attack.  They used many different weapons in carrying out their sport.  Beer bottles and fists were typical tools of their trade.  They took great pleasure one evening in watching one victim plead for his life after they had brutally assaulted him.

Their sport took a deadly turn on the early morning of June 26, 2011.  On that fateful morning, defendants Deryl Dedmon, Dylan Wade Butler and John Aaron Rice and others were driving around Jackson looking for African Americans to attack when they spotted James Craig Anderson, a 47-year-old African American who was in the wrong place at the wrong time.   Defendants Rice and Butler spotted Mr. Anderson and concluded that he was an inviting target, and they corralled him while Dedmon and others arrived.  After Mr. Anderson got back to his feet, defendant Dedmon and others got into what became the murder weapon, a Ford F-250 pickup truck, which weighs over a ton, and proceeded to deliberately run over Mr. Anderson.  As they drove away, one of the participants placed a call on a cell phone bragging about their accomplishment.    

Following the murder of James Byrd Jr., I travelled to Texas as part of the Justice Department’s investigation and, among other things, toured the crime scene with the case investigators.  I remember vividly reflecting on how it was possible that such a depraved act could have occurred.  I hoped that such a crime would never occur again.  Sadly, I was mistaken.  Yesterday, defendant Dedmon pleaded guilty to a state charge of depraved heart murder.  That description is a spot on characterization of this hate crime.

We would like to think that horrific crimes such as these are in the history books, not today’s headlines.  Sadly, hate crimes remain a persistent problem in our nation .  We must and will remain ever vigilant in our common humanity to root out hate and violence when it rears its ugly face.  Hate crimes such as this simply have no place in Jackson, in Mississippi or anywhere in America.  No one in our nation should live in fear being attacked because of the color of their skin, their ethnicity, the God they choose to worship or whom they love.

The Justice Department will use every tool at its disposal to root out hate crimes.  The Civil Rights Division, in conjunction with its partners in the United States Attorneys’ Offices and the FBI, has aggressively focused on prosecuting hate crime cases, and our prosecutions are on the rise.  Last year, the department convicted the most defendants on hate crimes charges in over a decade.  And, over the past three fiscal years, the department has prosecuted 35 percent more hate crime cases than during the preceding three year period.  The Byrd-Shepard law is a critical new tool for combating hate crimes.  Already, 27 defendants have been charged in cases across the country.  There is an undeniable headwind of intolerance that rears its ugly head in different ways, whether it is today’s events or the arson of mosques, assaults on immigrants and brutal attacks of people who are lesbian, gay, bisexual or transgendered.

Our work is not finished, either here in Jackson or across America.  Let me be clear about this case.  Yesterday’s state court plea and today’s guilty pleas of the three defendants mark an important milestone in this investigation.  But our work is not finished, and our investigation continues, and I fully expect additional activity.  We will not rest until every responsible individual is brought to justice.

Last year, I had the privilege of traveling to Jackson to celebrate the 50th anniversary of the Freedom Riders historic and courageous journey for justice.  It was a memorable day here in Jackson.   Mississippi and indeed America have come a long way in the journey for equal opportunity.  Today’s guilty pleas should not obscure the progress we have made in Jackson and communities across America in ensuring equal justice under law.  At the same time, today’s guilty pleas and the horrific facts of this hate crime are another reminder that civil rights remains the unfinished business of America.

I had an opportunity to meet with some of the victim’s family members.  You have shown enormous patience and fortitude in the face of this tragedy.  Days like today are invariably bittersweet for loved ones.  Nothing we can do will bring Mr. Anderson back.  I am hopeful that yesterday’s and today’s guilty pleas bring some sense of justice for Mr. Anderson’s loving friends and family.  Again, I assure you that our work is not done.

We are grateful to our partners in this investigation and prosecution.  I’d like to personally thank United States Attorney John Dowdy and his office for their partnership; Special Agent in Charge Dan McMullen and the FBI for dedicating tremendous resources and countless man hours in this investigation, including conducting more than 200 interviews; District Attorney Robert Shuler Smith and his office for their work and cooperation in reaching global dispositions on these three defendants; and Chief Rebecca Coleman and the Jackson Police Department for their participation in the investigation.

FOUR CONVICTED IN LOS ANGELES FOR PARTICIPATION IN IDENTITY THEFT RING

The following excerpt is from the Department of Justice website:
Thursday, March 22, 2012
Armenian Power Member and Three Armenian Power Associates Convicted in Los Angeles for Roles in Identity Theft Ring
WASHINGTON – After a five week trial, four defendants have been convicted for their roles in one of the largest bank fraud and identity theft schemes in California history, with dozens of victims in four states and millions of dollars in losses.

The convictions were announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Andre Birotte Jr. of the Central District of California, Assistant Director in Charge of the FBI’s Los Angeles Field Office Steven Martinez and Special Agent in Charge of the U.S. Secret Service (USSS) Joseph Beaty.

Arman Sharopetrosian, Karen Markosian, Artush Margaryan and Kristine Ogandzhanyan were found guilty of conspiring to commit bank fraud, attempted bank fraud and various counts of aggravated identity theft.  Sharopetrosian, Markosian and Ogandzhanyan waived a jury trial and consented to trial by the judge, and Margaryan proceeded with a jury trial.

Yesterday, U.S. District Judge David O. Carter found Ogandzhanyan, 28, of Burbank, Calif., guilty of one count of bank fraud conspiracy, two counts of attempted bank fraud and four counts of aggravated identity theft.  On March 16, 2012, the judge found Sharopetrosian, 33, of Burbank, guilty of one count of bank fraud conspiracy, four counts of bank fraud and seven counts of aggravated identify theft.  On March 16, 2012, the judge also found Markosian, 39, of Glendale, Calif., guilty of one count of bank fraud conspiracy, one count of attempted bank fraud and two counts of aggravated identity theft.  A jury convicted the fourth defendant, Artush Margaryan, 28, of Van Nuys, Calif., on March 16, 2012, of one count of bank fraud conspiracy, one count of attempted bank fraud and three counts of aggravated identity theft.

Evidence was presented at trial that Sharopetrosian is a member of the Armenian Power organized crime group, and Margaryan, Markosian and Ogandzhanyan are Armenian Power associates.

According to evidence presented at trial, Sharopetrosian directed the massive fraud scheme along with co-defendant Angus Brown, while the two were incarcerated at Avenal State Prison.  Using cellular telephones that were smuggled into the prison, Sharopetrosian and Brown worked from behind bars to coordinate with others, including Ogandzhanyn, Markosian and Margaryan, to obtain confidential bank profile information and steal money from victim account holders.  Often targeting high-value bank accounts, the defendants used account holders’ personal identifying information – including names, Social Security numbers and dates of birth – to impersonate victims in phone calls to the bank.  The defendants gathered account information, transferred funds between victims’ accounts and placed unauthorized check orders for the accounts.  They then stole the checks, obtained the victims’ signatures from public documents and paid conspirators to cash the forged checks.  Over the course of the six-year conspiracy, the defendants and their co-conspirators caused more than $10 million dollars in losses to victims in Southern California, Nevada, Arizona and Texas.

“These defendants, including two individuals who were operating from a prison cell, perpetrated a massive fraudulent scheme on behalf of a dangerous criminal enterprise,” said Assistant Attorney General Breuer.  “As members and associates of Armenian Power, they stole sensitive personal and financial information from innocent consumers and caused millions of dollars in losses.  Whether organized criminal groups traffic in drugs, commit financial fraud or wreak other havoc to keep themselves going, they must be stopped.  We are doing everything possible to shut down dangerous gangs like Armenian Power.”

“The safety and sanctity of confidential financial information is paramount in today’s society,” said U.S. Attorney Birotte.  “Identity theft is a fundamental invasion of consumer privacy that cannot be tolerated.  These convictions demonstrate that violators, whoever and wherever they may be, will be caught and will be prosecuted to the fullest extent of the federal law.”

“The defendants were convicted in a trial that uncovered a sophisticated and lengthy scheme that targeted victims in multiple states, and included disturbing details, such as orders made from within prison walls and assistance from bank insiders enlisted by the defendants,” said FBI Assistant Director Martinez.  “This case is also indicative of the growing trend of gang or organized crime-affiliated groups now engaging in identity theft and other financial crimes in furtherance of their enterprise.”  

These defendants are four of 20 defendants who were charged with operating the bank fraud and identity theft scheme in one of a series of federal indictments unsealed on Feb. 16, 2011.  The indictments allege various federal crimes against members and associates of the Armenian Power criminal organization.  To date, 19 of the 20 defendants charged in the bank fraud indictment have been convicted, including Brown.  One defendant, Faye Bell, was arrested earlier this year and is still awaiting trial.

Sharopetrosian, Margaryan, Markosian and Ogandzhanyan face maximum sentences of 30 years in federal prison for each count of bank fraud, 30 years for each count of conspiracy to commit bank fraud and additional mandatory two year sentences for each count of aggravated identity theft.

 Sentencing for all four defendants is scheduled for Aug. 6, 2012, before Judge Carter.

The case is being prosecuted by Assistant U.S. Attorneys Martin Estrada and Joseph McNally of the Central District of California and Trial Attorney Cristina Moreno of the Organized Crime and Gang Section in the Justice Department’s Criminal Division.  The case was investigated by the Eurasian Organized Crime Task Force, which includes the FBI, the USSS, the Los Angeles Police Department, the Glendale Police Department, the Burbank Police Department, the Internal Revenue Service and the U.S. Immigration and Customs Enforcement.

FORMER DEFENSE DEPARTMENT SCIENTIST GOES TO PRISON FOR ESPIONAGE

The following excerpt is from the Department of Justice website:
Wednesday, March 21, 2012
Noted Scientist Sentenced to 13-Year Prison Term for Attempted Espionage, Fraud and Tax Charges
WASHINGTON – Stewart David Nozette, 54, a scientist who once worked for the Department of Energy, the Department of Defense, the National Aeronautics and Space Administration and the White House’s National Space Council, was sentenced today to 13 years in prison for attempted espionage, conspiracy to defraud the United States and tax evasion.

The sentence covered charges in two cases.   In one, Nozette pleaded guilty in September 2011 to attempted espionage for providing classified information to a person he believed to be an Israeli intelligence officer.   In the other, he pleaded guilty in January 2009 to fraud and tax charges stemming from more than $265,000 in false claims he submitted to the government.

The sentencing, which took place this morning in the U.S. District Court for the District of Columbia, was announced by Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; Lisa Monaco, Assistant Attorney General for National Security; and Principal Deputy Assistant Attorney General John A. DiCicco of the Tax Division.

Joining in the announcement were James W. McJunkin, Assistant Director in Charge of the FBI’s Washington Field Office; Paul K. Martin, Inspector General for the National Aeronautics and Space Administration (NASA OIG); Eric Hylton, Acting Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI); and John Wagner, Special Agent in Charge of the Washington, D.C., Office of the Naval Criminal Investigative Service (NCIS).

In addition to the prison term, the Honorable Paul L. Friedman ordered that Nozette pay more than $217,000 in restitution to the government agencies he defrauded.

Nozette has been in custody since his arrest for attempted espionage on Oct. 19, 2009.   At the time, he was awaiting sentencing on the fraud and tax evasion charges.  FBI agents arrested Nozette following an undercover operation in which he provided classified materials on three occasions, including one that formed the basis for his guilty plea.   He was subsequently indicted by a federal grand jury.  The indictment does not allege that the government of Israel or anyone acting on its behalf committed any offense under U.S. laws in this case.

“Stewart Nozette's greed exceeded his loyalty to our country” said U.S. Attorney Machen.  “He wasted his talent and ruined his reputation by agreeing to sell national secrets to someone he believed was a foreign agent.  His time in prison will provide him ample opportunity to reflect on his decision to betray the United States.”

“Stewart Nozette betrayed his country and the trust that was placed in him by attempting to sell some of America’s most closely-guarded secrets for profit.   Today, he received the justice he deserves.  As this case demonstrates, we remain vigilant in protecting America’s secrets and in bringing to justice those who compromise them,” said Assistant Attorney General Monaco.  “I thank the many agents, analysts and prosecutors who worked on this important case.”        

“As this case demonstrates, those who attempt to evade their taxes by abusing the tax-exempt status of non-profit entities will be investigated, prosecuted and punished,” said Principal Deputy Assistant Attorney General DiCicco.

“Today’s sentencing demonstrates that espionage remains a serious threat to our national security,” said Assistant Director in Charge McJunkin. “The FBI and our partners in the defense and intelligence communities work every day to prevent sensitive information from getting into the wrong hands, and I commend the hard work of the dedicated agents, analysts and prosecutors who spent a significant amount of time bringing this case to resolution.”

“We are particularly proud that NASA OIG’s fraud investigation of Nozette, which began in 2006, served as the catalyst for further investigation and today's outcome,” said NASA Inspector General Martin.

“IRS-Criminal Investigation provides financial investigative expertise in our work with our law enforcement partners,” said Acting Special Agent in Charge Hylton. “Pooling the skills of each agency makes a formidable team as we investigate allegations of wrongdoing.  Mr. Nozette decided to betray his country to line his own pockets rather than play by the rules.  He now is being held accountable for his actions.”

“Federal agents take an oath to protect our nation ‘against all enemies, foreign and domestic.’  That would include ‘insider threats’ like Stewart Nozette,” said Special Agent in Charge Wagner.  “NCIS is committed to working with our law enforcement partners and prosecutors to find and hold accountable those like Nozette who put personal gain above national security.”

Nozette received a Ph.D. in Planetary Sciences from the Massachusetts Institute of Technology. Beginning in at least 1989, he held sensitive and high-profile positions within the U.S. government.  He worked in various capacities on behalf of the government in the development of state-of-the-art programs in defense and space.   During his career, for example, Nozette worked at the White House on the National Space Council, Executive Office of the President.  He also worked as a physicist for the U.S. Department of Energy’s Lawrence Livermore National Laboratory, where he designed highly advanced technology.
         
Nozette was the president, treasurer and director of the Alliance for Competitive Technology (ACT), a non-profit organization that he organized in March 1990.  Between January 2000 and February 2006, Nozette, through his company, ACT, entered into agreements with several government agencies to develop highly advanced technology. Nozette performed some of this research and development at the U.S. Naval Research Laboratory (NRL) in Washington, D.C., the Defense Advanced Research Projects Agency (DARPA) in Arlington, Va., and NASA’s Goddard Space Flight Center in Greenbelt, Md.
         
In connection with the fraud and tax case, Nozette admitted that, from 2000 through 2006, he used ACT to defraud the NRL, DARPA and NASA by making and presenting more than $265,000 in fraudulent reimbursement claims, most of which were paid.  He also admitted that, from 2001 through 2005, he willfully evaded more than $200,000 in federal taxes.  In addition, he admitted using ACT, an entity exempt from taxation because of its non-profit status, to receive income and to pay personal expenses, such as mortgages, automobile loans, sedan services and other items.
           
The investigation concerning ACT led investigators to suspect that Nozette had misused government information.  From 1989 through 2006, Nozette held security clearances as high as TOP SECRET and had regular, frequent access to classified information and documents related to the national defense of the United States.
         
On Sept. 3, 2009, Nozette was contacted via telephone by an individual purporting to be an Israeli intelligence officer from the Mossad, but who was, in fact, an undercover employee of the FBI.   That same day, Nozette informed the undercover employee that he had clearances “all the way to Top Secret SCI” and that anything “that the U.S. has done in space I’ve seen.”   He stated that he would provide classified information for money and a foreign passport to a country without extradition to the United States.
         
A series of contacts followed over the next several weeks, including meetings and exchanges in which Nozette took $10,000 in cash left by the FBI at pre-arranged drop-off sites. Nozette provided information classified as SECRET/SCI and TOP SECRET/SCI that related to the national defense. Some of this information directly concerned satellites, early warning systems, means of defense or retaliation against large-scale attack, communications intelligence information and major elements of defense strategy.
         
Nozette and the undercover employee met for the final time on Oct. 19, 2009, at the Mayflower Hotel.  During that meeting, Nozette pushed to receive larger payments for the secrets he was disclosing, declaring that, “I gave you even in this first run, some of the most classified information that there is. . . . I’ve sort of crossed the Rubicon.”
         
Nozette was arrested soon after he made these statements.

The investigation of the fraud and tax evasion case was conducted by NASA-OIG, NCIS, the Defense Criminal Investigative Service (DCIS), IRS-CI, the IRS Tax Exempt & Government Entities Group, the Naval Audit Service, the Defense Contract Audit Agency and the FBI’s Washington Field Office.
         
The prosecution of the fraud and tax evasion case was handled by Assistant U.S. Attorney Michael K. Atkinson from the Fraud and Public Corruption Section of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney Kenneth C. Vert from the Department of Justice’s Tax Division.
         
The investigation of the attempted espionage case was conducted by the FBI’s Washington Field Office, with assistance from NCIS; Naval Audit Service; National Reconnaissance Office; Air Force Office of Special Investigations; Defense Computer Forensics Laboratory; Defense Advanced Research Projects Agency; DCIS; Defense Contract Audit Agency; U.S. Army 902ndMilitary Intelligence Group; NASA Office of Counterintelligence; NASA-OIG; Department of Energy Office of Intelligence and Counterintelligence; IRS-CI; IRS Tax Exempt & Government Entities group; U.S. Customs and Border Protection; and the U.S. Postal Inspection Service, as well as other partners in the U.S. intelligence community.

U.S. MARSHALS ANNOUNCE CAPTURE OF ALLEGED CHILD MOLESTER

The following excerpt is from the U.S. Marshals Service website:
Alleged Child Predator Arrested
Las Cruces, NM - The United States Marshal Service in New Mexico arrested Oscar Oropeza, Monday March 19, 2012 on an outstanding warrant charging him with Criminal Sexual Penetration of a Minor Under 13 in the first degree and Criminal Sexual Contact of a Minor in the third degree.

Oropeza (32) has been arrested twice for DWI and was arrested at his home in Las Cruces without incident by Deputy United States Marshals and Task Force Officers with the Marshals Service Southwest Fugitive Investigative Team (SWIFT) Task Force. Oropeza was booked into the Dona Ana County Detention Center pending criminal proceedings.

United States Marshal Conrad E. Candelaria commented "the Marshals Service for the District of New Mexico is committed to pursuing all violent fugitives but rising to the top of the list are those that must be held accountable for the unconscionable acts by predators that committed sexual violence against children; the most precious segment of any community are children and the Marshals Service will ensure justice is served against sexual predators so that or families and children can live, and play without fear."

FORMER ARIZONA STATE REPRESENTATIVE PLEADS GUILTY TO FRAUD AND TAX EVASION

The following excerpt is from the Department of Justice website:
Wednesday, March 14, 2012
Former Arizona State Representative Pleads Guilty to Wire Fraud and Tax Evasion Related to the Misuse of More Than $140,000 in Charity Funds
WASHINGTON – Richard David Miranda, a former Arizona state representative, pleaded guilty today in the U.S. District Court for the District of Arizona to a two-count information charging him with defrauding a charity of more than $140,000 and evading income tax related to those unlawfully obtained funds.

The guilty plea was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; Special Agent in Charge James L. Turgal of the FBI’s Phoenix Field Office; and Special Agent in Charge Dawn Mertz of the Internal Revenue Service-Criminal Investigation (IRS-CI) Phoenix office.

“Mr. Miranda, a former member of the Arizona legislature and executive director of a non-profit organization, pleaded guilty today to using over $140,000 of the charity’s funds for his personal expenses, and then failing to disclose the extra income on his tax return,” said Assistant Attorney General Breuer.   “Having admitted this illegal conduct, Miranda will now face the consequences of his actions.   This Justice Department will continue to hold elected officials, just like ordinary citizens, accountable for their crimes.”

“The Federal Bureau of Investigation, the Internal Revenue Service and the Department of Justice remain steadfast in our efforts to combat public corruption at all levels of government by investigating and prosecuting those who deliberately abuse the public’s trust by using their office for personal gain stated,” said FBI Special Agent in Charge James L. Turgal Jr.   “The FBI and our law enforcement partners are committed to holding our elected officials accountable from intentionally engaging in schemes to profit from fraudulent activity and exploiting the faith placed in them by the American public.”  

“It is an embarrassment to the state and its people when a state representative deceives those he was elected to represent,” said IRS Special Agent in Charge Mertz.   “Former Representative Miranda selfishly defrauded a charity that was established to assist disadvantaged members of the community and used the profits for his own benefit.   Those in public office should be held to a higher standard and are not exempt from criminal prosecution.”

Miranda, 55, of Tolleson, Ariz., served as a member of the Arizona House of Representatives for the 13th District from 2011 until his resignation, effective Feb. 20, 2012.   Miranda previously served as a member of the Arizona State Senate from 2002 until 2011, and the Arizona House of Representatives from 1999 until 2002.   According to court documents, since July 2002, Miranda also served as executive director of Centro Adelante Campesino Inc. (Centro), a non-profit charitable organization that provided food, clothing and educational assistance to persons in need, including migrant farm workers, in and around Maricopa County, Ariz.

According to court documents, in May 2005, Miranda initiated a scheme to wind down Centro, sell Centro’s sole remaining asset (a building), and use the proceeds of the sale for personal expenses.   To do so, Miranda removed the charity’s longstanding volunteer accountant as an authorized signer on the charity’s bank and credit union accounts, and assumed sole control of the charity’s accounts and financial records.   He also told the volunteer accountant that the proceeds of the sale would be used to fund scholarships.   In March 2007, the building was sold for $250,000, and on March 7, 2007, a significant portion of the profits of that sale – $144,576 – were wired across state lines into Centro’s credit union account.

According to court documents, within one week of the wire transfer, Miranda began to withdraw the proceeds from Centro’s credit union account without the authorization or knowledge of Centro’s board of directors.   For example, Miranda obtained two checks payable to himself totaling $37,000, and paid off personal credit card debts totaling more than $60,000.   By Dec. 31, 2007, Miranda had withdrawn the remaining proceeds (approximately $46,836) using checks, withdrawals and electronic funds transfers, and used the funds to pay off additional personal debts and make numerous purchases for personal travel, services, clothing, food and household items.   Miranda also failed to report the proceeds of the sale as income on his IRS Form 1040 for calendar year 2007.

The charge of wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, or twice the amount gained or lost in the scheme.   The charge of attempt to evade or defeat tax carries a maximum penalty of five years in prison and a $100,000 fine.   Sentencing has been scheduled for June 5, 2012.

The case is being prosecuted by Trial Attorneys Edward T. Kang, Monique T. Abrishami and Brian A. Lichter of the Criminal Division’s Public Integrity Section, and Assistant U.S. Attorney Frederick A. Battista of the District of Arizona.   The case is being investigated by agents from the FBI Phoenix Field Office and IRS-CI Phoenix Office.

ATTORNEY GENERAL ERIC HOLDER SPEAKS ON HUMAN TRAFFICKING

The following excerpt is from the U.S. Department of Justice website:
Today Attorney General Eric Holder joined members of the president’s cabinet and other senior advisors at the White House for a meeting of the Interagency Task Force to Monitor and Combat Trafficking in Persons.

Speaking at the meeting, the Attorney General said:
For the Department of Justice, our commitment to preventing human trafficking, bringing traffickers to justice, and assisting victims has never been stronger – and our approach has never been more effective. Our work has sent a clear and critical message: that, in this country – and under this Administration – human trafficking crimes will not be tolerated. I’m proud to report that, this past year, we charged nearly 120 defendants – a record number – in human trafficking cases. And, over the last three years, we’ve achieved significant increases in human trafficking prosecutions – including a rise of more than 30 percent in the number of forced labor and adult sex trafficking prosecutions.

This work has saved lives, ensured freedom, and restored dignity to women, men, and children in virtually every corner of the country. We’ve liberated scores of victims; secured long prison sentences against individual traffickers; and dismantled large, transnational organized criminal enterprises.

The Department of Justice’s comprehensive approach to prevent human trafficking involves the work of many offices. That’s why the Attorney General formed the Anti-Trafficking Coordination Team – or “ACTeam” – Initiative, an interagency collaboration among the Departments of Justice, Homeland Security, and Labor aimed at streamlining federal criminal investigations and prosecutions of human trafficking offenses.
The scourge of human trafficking goes beyond our borders. The Department of Justice continues to work closely with our international counterparts. For instance, we’ve advanced the U.S.-Mexico Human Trafficking Bilateral Enforcement Initiative, in collaboration with DHS and Mexican law enforcement counterparts, to develop high-impact bilateral investigations and prosecutions to dismantle international human trafficking networks, resulting in landmark convictions in coordinated prosecutions under both U.S. and Mexican law.

Department officials have also shared their expertise and helped to train hundreds of prosecutors, investigators and law enforcement officials in partner countries abroad through our International Criminal Investigative Training Assistance Program (ICITAP). ICITAP supported the international anti-human trafficking effort through program activities in seven countries on three continents.

In addition to ensuring those who perpetuate these crimes are found and brought to justice, the department’s anti-trafficking grant programs, training and technical assistance initiatives continue to support communities in building capacity to combat human trafficking and assist victims.

These programs take a multidisciplinary approach to human trafficking prevention and encourage close partnerships among federal prosecutors, state and local law enforcement, victim service providers, and other federal partners, including the FBI, U.S. Immigration and Customs Enforcement (ICE), U.S. Customs and Border Protection, U.S. Citizenship and Immigration Services, and the Departments of Health and Human Services, Labor, and State.

Supplementing training and grant programs are resources like the Anti-Human Trafficking Task Force Strategy and Operations eGuide, a comprehensive online resource to assist anti-trafficking task forces in establishing, strengthening, and operating multidisciplinary response teams to identify and assist trafficking victims across the country.

To better understand trafficking, the National Institute of Justice continues to expand its research portfolio to understand how and why trafficking occurs, how to best help victims and examine the reasons why these crimes go under-reported in the United States.

MAN IN NEW ORLEANS CHARGED WITH FIVE MURDERS

The following excerpt is from the Department of Justice website:
Thursday, March 15, 2012
New Orleans Man Charged for Alleged Role in Five Murders
WASHINGTON – A New Orleans man was charged today by a federal grand jury in the Eastern District of Louisiana in a 17-count superseding indictment for his alleged role in five murders, announced U. S. Attorney Jim Letten in the Eastern District of Louisiana and Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division.

The superseding indictment charges Steven Earl Hardrick, 27, with violations of the federal controlled substances act and federal firearms laws, carjacking, witness tampering and murder.  The superseding indictment alleges that Hardrick allegedly carried out the Oct. 1, 2007, murder of Dwayne Landry; the Oct. 13, 2007, home invasion, shooting and killing of off-duty New Orleans Police Officer Thelonius Dukes; and the Oct. 24, 2007, carjacking and murder of Brett Jacobs, David Alford and Howard Pickens.
According to the superseding indictment, Hardrick conspired to possess with intent to distribute drugs.  He did so by obtaining drugs through force and violence, as well as firearms, which he then used to facilitate the theft or robbery of the drugs.  The superseding indictment alleges that Hardrick obtained firearms in all three incidents, and in two of the incidents, he attempted to obtain drugs.  The superseding indictment alleges that Howard Pickens was killed in the Oct. 24, 2007, murders to prevent him from reporting information about the carjacking that resulted in the murders of Brett Jacobs and David Alford.

An indictment is merely a charge and a defendant must be proven guilty beyond a reasonable doubt.
The superseding indictment includes offenses with a maximum penalty of death.

JUSTICE ANNOUNCES SIX GUILTY PLEAS IN TAX/MAIL FRAUD CASE INVOLVING ID THEFT FROM THE DECEASED

The following excerpt is from the Department of Justice website:
Tuesday, March 13, 2012
Six Plead Guilty in Ohio to Tax and Mail Fraud Conspiracies Involving I.D. Theft of Deceased
Muaad Salem, Hanan Widdi, Najeh Widdi, Hazem Woodi, Daxesj Patel and Fahim Suleiman each entered guilty pleas before the Honorable James S. Gwin today to charges arising from a scheme to obtain false and fraudulent U.S. Treasury tax refund checks, the Justice Department, the U.S. Attorney’s Office for the Northern District of Ohio and the Internal Revenue Service (IRS) announced.   Specifically, Salem, Najeh Widdi and Woodi entered guilty pleas to conspiracy to defraud the United States, conspiracy to commit mail fraud and mail fraud; Hanan Widdi entered a guilty plea to conspiracy to defraud the United States and conspiracy to commit mail fraud; Patel entered a guilty plea to two counts of submitting false claims and one count of false statements; and Suleiman entered a guilty plea to conspiracy to defraud the United States, conspiracy to commit mail fraud; mail fraud and aggravated identity theft.

According to the indictment, between April 15, 2009 to at least August 2011, Salem, Suleiman, Najeh Widdi, Hanan Widdi, Woodi, Patel and other unknown co-conspirators defrauded the United States by filing false and fraudulent tax returns, many in the names of recently deceased taxpayers, and directing refunds to controlled locations in the state of Florida.   The U.S. Treasury checks generated by the false and fraudulent returns were then sent by the U.S. mail to co-conspirators in Ohio who sold and distributed the checks for negotiation at various businesses and banking institutions.   As part of their plea agreements, the defendants admitted that the fraud loss caused by their conduct was between $1 and 2.5 million and that the offenses involved more than ten victims.

Sentencing is scheduled on May 29, 2012, for Najeh Widdi and Patel; on May 30, 2012, for Hanan Widdi and Woodi; and on June 1, 2012, for Salem and Suleiman.   Mail fraud is punishable by a maximum potential sentence of 20 years in prison; conspiracy to defraud the United States is punishable by a maximum potential sentence of 10 years; conspiracy to commit mail fraud, making a false claim against the United States and making a false statement are each punishable by a maximum potential sentence of five years in prison; aggravated identity theft is punishable by a mandatory minimum prison sentence of two years to follow conviction on any other offense.   All of the above sentences are also punishable by a fine of $250,000 for each count of conviction.

The case was prosecuted by Assistant U.S. Attorney Gary D. Arbeznik of the Northern District of Ohio and Trial Attorney Jessica W. Knight of the Justice Department’s Tax Division following investigation by the Cleveland Division of the Federal Bureau of Investigation, the IRS-Criminal Investigation, and the United States Postal Service.

MAN CONVICTED OF DRUG TRAFFICKING AND NARCO-TERRORISM

The following excerpt is from the Department of Justice website:
Tuesday, March 13, 2012
Haji Bagcho Convicted by Federal Jury in Washington, D.C., on Drug Trafficking and Narco-terrorism Charges Afghan National Trafficked More Than 123,000 Kilograms of Heroin in 2006
WASHINGTON – An Afghan national with ties to the Taliban was convicted today by a jury in U.S. District Court for the District of Columbia of conspiracy, distribution of heroin for importation into the United States and narco-terrorism, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and Administrator Michele M. Leonhart of the Drug Enforcement Administration (DEA).
 
Haji Bagcho, from Nangarhar Province, Afghanistan, was investigated by the DEA for narcotics offenses.  The investigation revealed that Bagcho was one of the largest heroin traffickers in the world and manufactured the drug in clandestine laboratories along Afghanistan’s border region with Pakistan.  Bagcho sent heroin to more than 20 countries, including the United States.  Proceeds from his heroin trafficking were then used to support high-level members of the Taliban to further their insurgency in Afghanistan.
Beginning in 2005 and continuing for the next five years, the DEA, in cooperation with Afghan authorities, conducted an investigation of Bagcho’s organization.  With the help of cooperating witnesses, the DEA purchased heroin directly from the organization on two occasions, which Bagcho understood was destined for the United States.  They also conducted several searches of residences belonging to Bagcho and his associates, recovering evidence consistent with drug trafficking.  During one search, ledgers belonging to the defendant were found.  One ledger, cataloguing Bagcho’s activities during 2006, reflected heroin transactions of more than 123,000 kilograms, worth more than $250 million, according to Bagcho’s ledger.   Based on heroin production statistics compiled by the United Nations Office of Drugs and Crime for 2006, the defendant’s trafficking accounted for approximately 20% of the world’s total production for that year.
The investigation also obtained evidence that over several years, Bagcho used a portion of his drug proceeds to provide the former Taliban governor of Nangarhar Province and two Taliban commanders responsible for insurgent activity in eastern Afghanistan with cash, weapons and other supplies so that they could continue their “jihad” against western troops and the Afghan government.

“Haji Bagcho was a prolific and dangerous heroin manufacturer, trafficking in over 123,000 kilograms of the drug in 2006 alone,” said Assistant Attorney General Breuer.  “Moreover, he used proceeds from his crimes to fund Taliban insurgents and fuel their ongoing ‘jihad’ against the United States and others.  The effects of Bagcho’s criminal activity were felt all over the world, and today’s guilty verdict ensures that he will serve a lengthy prison term.”

“One of the world’s most prolific drug trafficker’s reign has come to an end,” said DEA Administrator Leonhart.  “Now Haji Bagcho will serve time behind bars on the same soil he sought to destroy with his drugs, and whose troops he sought to kill through his support to the Taliban.  DEA stands committed to stopping narco-traffickers, like Bagcho, and their funding of terror.”

A grand jury returned an indictment against Bagcho on Nov. 8, 2006, charging him with distributing heroin, knowing that it would be imported into the United States.  A superseding indictment returned on Jan. 28, 2010, added additional charges of conspiracy to distribute and distribution of heroin, knowing or intending that it would be imported in the United States, as well as engaging in drug trafficking knowing or intending to provide something of pecuniary value to a terrorist or terrorist organization.  Bagcho was brought to the United States on June 24, 2009.  He faces a mandatory minimum sentence of 20 years and a maximum of life in prison.  A sentencing hearing is scheduled before the Honorable Ellen S. Huvelle on June 12, 2012.

The case was prosecuted by Trial Attorneys Matthew Stiglitz and Marlon Cobar of the Criminal Division’s Narcotic and Dangerous Drug Section.  The case was investigated by the DEA Special Operations Division in the United States, with assistance from the DEA’s Foreign Deployed Advisory Support Team and Kabul Country Office in Afghanistan, the U.S. Embassy in Kabul, and in close cooperation with Afghan law enforcement.  The Criminal Division’s Office of International Affairs provided invaluable support.

THOMAS LUBANGA DYILO FOUND GUILTY BY ICC OF USING CHILDREN AS SOLDIERS

The following excerpt is from a U.S. State Department e-mail:
ICC Conviction of Thomas Lubanga Dyilo
Press Statement Victoria Nuland
Department Spokesperson, Office of the Spokesperson Washington, DC
March 16, 2012
On March 14 2012, the International Criminal Court (ICC) convicted Thomas Lubanga Dyilo, former commander of the Patriotic Forces for the Liberation of the Congo militia and president of the Union of Congolese Patriots, for his responsibility for the war crimes of enlisting and conscripting children and using them to participate actively in hostilities in the Democratic Republic of the Congo (DRC) in 2002 and 2003. Congolese authorities referred the situation in the DRC to the ICC in 2004.

As the Court’s first conviction, this ruling is an historic and important step in providing justice and accountability for the Congolese people. The conviction is also significant for highlighting as an issue of paramount international concern the brutal practice of conscripting and using children to take a direct part in hostilities. These children are often sent to the front lines of combat or used as porters, guards, or sex slaves, and their conscription reverberates throughout entire communities. This conviction puts perpetrators and would-be perpetrators of unlawful child soldier recruitment and other atrocities on notice that they cannot expect their crimes to go unpunished.

Congolese institutions have a critical role to play in ending impunity in the DRC. The Congolese government has taken recent positive steps, such as the prosecution and conviction in national courts of several Congolese army officers for the mass rapes that took place in the town of Fizi on January 1, 2011. The United States continues to encourage the Congolese government to arrest other alleged human rights violators and abusers still at large.

DETROIT MEDICARE FRAUDSTER PLEADS GUILTY TO ROLE IN $5.4 MILLION SCHEME

The following excerpt is from the Department of Justice website:
Wednesday, March 14, 2012
Three Detroit-Area Clinic Owners Plead Guilty for Their Roles in $5.4 Million Medicare Fraud Scheme
WASHINGTON – Three Detroit-area clinic owners pleaded guilty today for their participation in a Medicare fraud scheme, announced the Department of Justice, the FBI and the Department of Health and Human Services (HHS).  

Karina Hernandez, 28, Marieva Briceno, 46, and Henry Briceno, 58, all of Miami, pleaded guilty before U.S. District Judge Arthur J. Tarnow in the Eastern District of Michigan to one count of conspiracy to commit health care fraud.  At sentencing, each defendant faces a maximum penalty of 10 years in prison and a $250,000 fine.      

According to the plea documents, Hernandez managed the daily operations of three Livonia, Mich., clinics: Blessed Medical Clinic, Alpha & Omega Medical Clinic and Manuel Medical Clinic.  Marieva Briceno contributed capital to fund the opening of one clinic, and assisted her daughter, Hernandez, in the daily management of the clinics.  At each clinic, Hernandez and Marieva Briceno hired recruiters, who paid cash bribes to Medicare beneficiaries to attend the clinics and provide their Medicare numbers and other information.  Hernandez and Marieva Briceno admitted that they used the beneficiary information to bill for medically unnecessary diagnostic tests and treatments.  Henry Briceno admitted that he incorporated Manuel Medical Clinic and opened a bank account to conceal the actual ownership of the clinic.  According to court documents, Blessed Medical Clinic, Alpha & Omega Medical Clinic and Manuel Medical Clinic fraudulently billed Medicare for $5.4 million during the course of the scheme.

Today’s guilty pleas were announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Andrew G. Arena of the FBI’s Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the HHS Office of Inspector General’s (OIG) Chicago Regional Office.
   
This case is being prosecuted by Assistant U.S. Attorneys Frances Lee Carlson and Philip A. Ross of the Eastern District of Michigan, with assistance from Assistant Chief Gejaa T. Gobena of the Criminal Division’s Fraud Section.  The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.    

Since their inception in March 2007, the Medicare Fraud Strike Force operations in nine districts have charged more than 1,190 individuals, who collectively have falsely billed the Medicare program for more than $3.6 billion.  In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.

SOUTH FLORIDA RESIDENT PLEADS GUILTY FOR ROLE IN $200 MILLION MEDICARE FRAUD SCHEME

The following excerpt is from the Department of Justice website:
Tuesday, March 13, 2012
Miami-Area Resident Pleads Guilty to Participating in $200 Million Medicare Fraud Scheme
WASHINGTON – A Miami-area resident pleaded guilty today for his role in a fraud scheme that resulted in the submission of more than $200 million in fraudulent claims to Medicare, announced the Department of Justice, the FBI and the Department of Health and Human Services (HHS).

Mathis Moore, 56, pleaded guilty before U.S. Magistrate Judge Barry L. Garber in Miami to one count of conspiracy to commit health care fraud and one count of conspiracy to defraud the United States and to pay and receive illegal health care kickbacks.  Moore was charged in an indictment unsealed on Feb. 15, 2011, in the Southern District of Florida.

Moore admitted to participating in a fraud scheme that was orchestrated by the owners and operators of American Therapeutic Corporation (ATC); its management company, Medlink Professional Management Group Inc.; and the American Sleep Institute (ASI).  ATC, Medlink and ASI were Florida corporations headquartered in Miami.  ATC operated purported partial hospitalization programs (PHPs), a form of intensive treatment for severe mental illness, in seven different locations throughout South Florida and Orlando.  ASI purported to provide diagnostic sleep disorder testing.
 
According to court filings, ATC’s owners and operators paid kickbacks to owners and operators of assisted living facilities and halfway houses and to patient brokers in exchange for delivering ineligible patients to ATC and ASI.  In some cases, the patients received a portion of those kickbacks.  Throughout the course of the ATC and ASI conspiracy, millions of dollars in kickbacks were paid in exchange for Medicare beneficiaries who did not qualify for PHP services to attend treatment programs that were not legitimate PHPs so that ATC and ASI could bill Medicare for the medically unnecessary services.  According to court filings, to obtain the cash required to support the kickbacks, the co-conspirators laundered millions of dollars of payments from Medicare.

Moore admitted to serving as a patient broker who provided patients for ATC and ASI in exchange for kickbacks in the form of checks and cash.  The amount of the kickback was based on the number of days each patient spent at ATC.  

According to his plea agreement, Moore’s participation in the ATC fraud resulted in $17 million in fraudulent billings to the Medicare program.
Sentencing for Moore is scheduled for May 29, 2012, at 9:30 a.m.  He faces a maximum penalty of 15 years in prison and a $250,000 fine.

ATC, Medlink, and various owners, managers, doctors, therapists, patient brokers and marketers of ATC, Medlink and ASI, were charged with various health care fraud, kickback, money laundering and other offenses in two indictments unsealed on Feb. 15, 2011.  ATC, Medlink and 10 of the individual defendants have pleaded guilty or have been convicted at trial. Other defendants are scheduled for trial April 9, 2012, before U.S. District Judge Patricia A. Seitz.  A defendant is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.

Today’s guilty plea was 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; John V. Gillies, Special Agent-in-Charge of the FBI’s Miami field office; and Special Agent-in-Charge Christopher B. Dennis of the HHS Office of Inspector General (HHS-OIG), Office of Investigations Miami office.

The criminal case is being prosecuted by Trial Attorneys Jennifer L. Saulino, Steven Kim and Robert Zink of the Criminal Division’s Fraud Section.  A related civil action is being handled by Vanessa I. Reed and Carolyn B. Tapie of the Civil Division and Assistant U.S. Attorney Ted L. Radway of the Southern District of Florida.  The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.

Since its inception in March 2007, the Medicare Fraud Strike Force operations in nine locations have charged more than 1,190 defendants that collectively have billed the Medicare program for more than $3.6 billion.  In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

U.K CITIZEN AND TWO AMERICANS CHARGED WITH CONSPIRING TO DEFRAUD THE U.S. GOVERNMENT

The following excerpt is from the U.S. Department of Justice website:
Tuesday, March 13, 2012
WASHINGTON – United Kingdom citizen Ahmed Sarchil Kazzaz and his company, Leadstay Company, were charged in an indictment unsealed today in the Northern District of Alabama for their roles in a conspiracy to defraud the United States and pay kickbacks in exchange for receiving subcontracts for a Department of Defense program in Iraq, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Joyce White Vance of the Northern District of Alabama.

Kazzaz, 45, and Leadstay were charged with one count of conspiracy to defraud and commit offenses against the United States; six counts of unlawful kickbacks; one count of wire fraud; and three counts of mail fraud.   Kazzaz was arrested on Feb. 14, 2012, in Los Angeles.   In addition, two informations filed in the Northern District of Alabama were unsealed today, charging Gaines R. Newell Jr., 52, and Billy Joe Hunt, 57, with conspiracy to commit the federal offenses of kickbacks, wire fraud and mail fraud, and with filing false tax returns.  

According to the indictment, Kazzaz paid more than $947,500 in unlawful kickbacks to two employees of a prime contractor to the United States government in order to obtain lucrative subcontracts for himself and Leadstay, in connection with the Coalition Munitions Clearance Program (CMCP).   CMCP is operated in Iraq by the U.S. Army Corps of Engineers, Huntsville Engineering and Support Center (HESC).   HESC, located in the Northern District of Alabama, operated the CMCP to clear out, store and dispose of weapons that were seized or abandoned in Iraq since the 2003 invasion.   HESC awarded a contract to perform this work to an international engineering and construction firm headquartered in Pasadena, Calif.

The indictment alleges that beginning in about March 2006, Kazzaz entered into a kickback agreement with the California prime contractor’s program manager and deputy program manager, who arranged for the award of subcontracts to Kazzaz and Leadstay to provide materials, heavy equipment and operators for equipment for the CMCP.   Kazzaz also allegedly obtained multiple funding increases to those subcontracts.   From April 2006 through August 2008, Kazzaz and Leadstay received more than $23 million in U.S. funds for services under the CMCP.

According to the two informations unsealed today, Newell was the program manager in Iraq for the California-based prime contractor to HESC, and Hunt was the deputy program manager.  Both are charged with conspiring to solicit and accept kickbacks to award subcontracts under the CMCP program and to commit mail and wire fraud by knowingly and intentionally devising a scheme to defraud the United States.   In addition, both are charged with failing to report the kickback income on their federal tax returns.

“Mr. Kazzaz allegedly paid kickbacks to two employees of a California-based contractor in order to secure subcontracts for Department of Defense programs in Iraq,” said Assistant Attorney General Breuer.   “Federal contracts must be won or lost based on the merits of the bid, and we will continue to take aggressive steps to hold accountable anyone who tries to play by their own set of rules instead.”

“Government contracts fraud is an insult to all law-abiding taxpayers,” said U.S. Attorney Vance.  “These defendants’ conduct was even worse in that they tried to illegally profit from defense contracts in Iraq, where American men and women were willing to put their lives on the line for freedom.”

“These charges clearly demonstrate that we will take firm action against those who make illegal payments while engaged in wartime contracting,” said Stuart W. Bowen, Special Inspector General for Iraq Reconstruction (SIGIR).   “SIGIR and its investigative partners will continue our vigorous pursuit of those whose illegal acts undermined the U.S. government’s management of the stabilization and reconstruction effort in Iraq.”

“Individuals and businesses that illegally enrich themselves at the expense of the U.S. taxpayer, especially as wartime profiteers, or those who diminish the combat readiness or effectiveness of the U.S. military, will be aggressively investigated by DCIS and our investigative partners,” said Defense Criminal Investigative Service (DCIS) Special Agent in Charge Chris D. Hendrickson.  “The combined investigative effort, the Department of Justice and the U.S. Attorney’s Office’s work demonstrate the combined federal commitment to combating fraud, waste and abuse.”

“IRS Criminal Investigation provides financial expertise with our law enforcement partners,” said Special Agent in Charge Leslie P. DeMarco of the Internal Revenue Service Criminal Investigations (IRS-CI) Los Angeles Field Office.  “Today’s unsealing of these charges demonstrates our collective efforts in tracing illicit funds internationally to enforce the laws and ensure public trust.”

Kazzaz, Newell and Hunt are also facing criminal forfeiture proceedings.

The cases were investigated by the DCIS, IRS-CI, SIGIR, the FBI, and the U.S. Army Criminal Investigations Division.   The cases are being prosecuted by Trial Attorney Catherine Votaw, on detail from SIGIR to the Fraud Section of the Justice Department’s Criminal Division, and Assistant U.S. Attorney David Estes of the Northern District of Alabama.

An indictment and information contain charges, and defendants are innocent until proven guilty.

FORMER HAITIAN OFFICIAL CONVICTED IN BRIBE LAUNDERING SCHEME

The following excerpt is from a Department of Justice website:
Tuesday, March 13, 2012
Former Haitian Government Official Convicted in Miami for Role in Scheme to Launder Bribes Paid by Telecommunications Companies Laundered Funds Were Proceeds of Violations of the Foreign Corrupt Practices Act
WASHINGTON – Jean Rene Duperval, a former director of international relations for Telecommunications D’Haiti S.A.M. (Haiti Teleco), a Haitian state-owned telecommunications company, has been convicted by a federal jury on all counts for his role in a scheme to launder bribes paid to him by two Miami-based telecommunications companies.  The jury reached its verdict late yesterday after less than three hours of deliberations, following a week-long trial.

The conviction was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida; and Special Agent in Charge Jose A. Gonzalez of Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office.

“Mr. Duperval was convicted by a Miami jury of laundering $500,000 paid to him as part of an elaborate bribery scheme,” said Assistant Attorney General Breuer.  “As the director of international relations for Haiti’s state-owned telecommunications company, Duperval doled out business in exchange for bribes and then used South Florida shell companies to conceal his crimes.  This Justice Department is committed to stamping out corruption wherever we find it.”

“To conceal the payment and receipt of bribes, Duperval participated in a money laundering scheme to funnel about half a million dollars to two shell companies under his control,” said U.S. Attorney Ferrer.  “This verdict confirms that American taxpayers will not tolerate bribery, either at home or abroad,  to obtain unfair business advantages.”
“Today’s announcement sends a strong message to those hiding monies in bogus business entities: no matter how elaborate or complex the scheme, you will get caught,” said IRS Special Agent in Charge Gonzalez.  “IRS criminal investigators will continue to aggressively investigate bribery schemes to ensure that honest businesses have the benefit of a competitive market.”

Duperval, 45, of Miramar, Fla., was convicted of two counts of conspiracy to commit money laundering and 19 counts of money laundering.  According to the charges, the funds that were laundered were the proceeds of violations of the Foreign Corrupt Practices Act (FCPA), Haitian bribery law and the wire fraud statute.

Duperval was the director of international relations for Haiti Teleco, the sole provider of land line telephone service in Haiti.  According to the evidence presented at trial, two Miami-based telecommunications companies had a series of contracts with Haiti Teleco that allowed the companies’ customers to place telephone calls to Haiti.

Duperval was convicted for participating in a scheme to commit money laundering from 2003 to 2006, during which time the telecommunications companies collectively paid $500,000 to two shell companies to funnel the bribes to Duperval.  
 
The purpose of these bribes, according to the evidence presented at trial, was to obtain various business advantages from Duperval, including the issuance of preferred telecommunications rates, a continued telecommunications connection with Haiti and the continuation of a particularly favorable contract with Haiti Teleco.  To conceal the bribe payments, Duperval instructed the companies to forward the payments to the shell companies.  To support these payments, the companies and their executives created false documents claiming that the payments were for “consulting services” or for “international minutes from USA to Haiti.”  No actual services were performed.  The funds were then disbursed from the shell companies for the benefit of Duperval and his family.  To conceal the nature of these funds, Duperval falsely characterized these payments as “commissions” and “payroll.”

Duperval was remanded to the custody of the U.S. Marshals.  Sentencing is scheduled for May 21, 2012.  The conspiracy to commit money laundering count carries a maximum penalty of 20 years in prison and a fine of the greater of $500,000 or twice the value of the property involved in the transaction.  The money laundering counts each carry a maximum penalty of 20 years in prison and a fine of the greater of $500,000 or twice the value of the property involved in the transaction.  The indictment also seeks forfeiture, which will be determined by the court at a later date.

Duperval was the eighth defendant involved in the corruption scheme to be convicted, which includes the following individuals:
On April 27, 2009, Antonio Perez, a former controller at one of the Miami-based telecommunications companies, pleaded guilty to one count of conspiracy to violate the FCPA and money laundering.  On Jan. 12, 2010, he was sentenced to 24 months in prison, which he is currently serving.
On May 15, 2009, Juan Diaz, the president of J.D. Locator Services, pleaded guilty to one count of conspiracy to violate the FCPA and money laundering.   He admitted to receiving more than $1 million in bribe money from telecommunications companies.  On July 30, 2010, he was sentenced to 57 months in prison, which he is currently serving.
On Feb. 19, 2010, Jean Fourcand, the president and director of Fourcand Enterprises Inc., pleaded guilty to one count of money laundering for receiving and transmitting bribe monies in the scheme.  On May 5, 2010, he was sentenced to six months in prison.
On March 12, 2010, Robert Antoine, a former director of international affairs for Haiti Teleco, pleaded guilty to one count of conspiracy to commit money laundering.  He admitted to receiving more than $1 million in bribes from Miami-based telecommunications companies.  On June 2, 2010, he was sentenced to 48 months in prison, which he is currently serving.
On Aug. 4, 2011, Joel Esquenazi and Carlos Rodriguez, who were the former president and vice-president, respectively, of one of the telecommunications companies, were convicted by a federal jury of one count of conspiracy to violate the FCPA and wire fraud, seven counts of FCPA violations, one count of money laundering conspiracy and 12 counts of money laundering.  On Oct. 25, 2011, Esquenazi was sentenced to 15 years in prison, the longest sentence ever imposed in a case involving the FCPA.  On the same day, Rodriguez was sentenced to 84 months in prison for his role in the bribery scheme.  Both are currently serving their sentences.
In a second superseding indictment, Washington Vasconez Cruz, Amadeus Richers and Cecilia Zurita were charged in a related scheme to commit foreign bribery and money laundering from December 2001 through January 2006.  The defendants are fugitives.  An indictment is merely an accusation, and defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

The Department of Justice is grateful to the government of Haiti for continuing to provide substantial assistance in gathering evidence during this investigation.   In particular, Haiti’s financial intelligence unit, the Unité Centrale de Renseignements Financiers (UCREF), the Bureau des Affaires Financières et Economiques (BAFE), which is a specialized component of the Haitian National Police, and the Ministry of Justice and Public Security provided significant cooperation and coordination in this ongoing investigation.

FORMER CORRECTIONS OFFICERS CHARGED IN BEATING DEATH

The following excerpt is from the Department of Justice website:
Monday, March 12, 2012
Three Former Corrections Officers Charged with Federal Civil Rights Offenses for Role in Beating Death of an Inmate at Ventress Correctional Facility in Alabama
WASHINGTON – The Justice Department announced today that a federal grand jury has charged Michael Smith, 37, Matthew Davidson, 43, and Joseph Sanders, 31 – former corrections officers of the Alabama Department of Corrections – in a 17-count indictment.   The indictment alleges that the officers participated in the beating of an inmate that resulted in bodily injury and the inmate’s death, and that the officers conspired with each other and other officers to cover up the incident.

The indictment charges all three former officers with felony civil rights violations, with obstruction of justice-related violations, and with making false statements to the FBI.  Defendants Davidson and Sanders are charged with assaulting the victim, which resulted in bodily injury to the victim.   Smith is also charged with assaulting the victim, which resulted in bodily injury to, and the death of, the victim.   Agents of the FBI and the Alabama Bureau of Investigation arrested all three defendants earlier this morning.

The charges stem from an incident that occurred at Ventress Correctional Facility in Clayton, Ala., on Aug.4, 2010, when inmate Rocrast Mack, was severely beaten, suffered significant injuries, and died the following day in a Montgomery, Ala., hospital.   As set forth in the indictment, at the time of the incident, Michael Smith was a lieutenant with supervisory authority over other officers on his shift.   Davidson and Sanders were corrections officers on the same shift with Smith.

Scottie Glenn, another former corrections officer at Ventress, pleaded guilty on Nov.18, 2011, in U.S. District Court in Montgomery to one count of violating the civil rights of Rocrast Mack for his role in the incident and to one count of conspiring with other corrections officers to cover up the incident.   In court, Glenn admitted that he escorted Rocrast Mack in handcuffs to an office at the prison, knowing that Rocrast Mack would be beaten in retaliation for a prior incident.   Glenn also admitted that he and other officers, at the direction of another officer, identified in court documents as Officer A, lied in written reports and lied to investigators to cover up the incident.

If convicted, Smith faces a maximum potential penalty of life in prison or the death penalty. Davidson faces a maximum sentence of 105 years in prison.   Sanders faces a maximum sentence of 75 years in prison.

This case is being investigated by the Mobile, Ala., Division of the FBI, in partnership with the Alabama Bureau of Investigation, and is being prosecuted by Trial Attorney Patricia Sumner of the U.S. Department of Justice Department’s Civil Rights Division and Assistant U.S. Attorney Jerusha Adams of the U.S. Attorney’s Office for the Middle District of Alabama.

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

BIZJET INTERNATIONAL SALES AND SUPPORT INC., SETTLES FOREIGN CORRUPT PRACTICES CASE

The following excerpt is from the U.S. Department of Justice website:
Wednesday, March 14, 2012
Bizjet International Sales and Support Inc., Resolves Foreign Corrupt Practices Act Investigation and Agrees to Pay $11.8 Million Criminal Penalty

WASHINGTON – BizJet International Sales and Support Inc., a provider of aircraft maintenance, repair and overhaul (MRO) services based in Tulsa, Okla., has agreed to pay an $11.8 million criminal penalty to resolve charges related to the Foreign Corrupt Practices Act (FCPA) for bribing government officials in Latin America to secure contracts to perform aircraft MRO services for government agencies, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division.

The department filed a one-count criminal information today charging BizJet with conspiring to violate the FCPA’s anti-bribery provisions and a deferred prosecution agreement in U.S. District Court for the Northern District of Oklahoma.
 
According to court documents, BizJet paid bribes to officials employed by the Mexican Policia Federal Preventiva, the Mexican Coordinacion General de Transportes Aereos Presidenciales, the air fleet for the Gobierno del Estado de Sinaloa, the air fleet for the Gobierno del Estado de Sonora and the Republica de Panama Autoridad Aeronautica Civil.  In many instances, BizJet paid the bribes directly to the foreign officials.  In other instances, BizJet funneled the bribes through a shell company owned and operated by a BizJet sales manager.  BizJet executives orchestrated, authorized and approved the unlawful payments.

Under the terms of the department’s agreement with BizJet, the department agreed to defer prosecution of BizJet for three years.  In addition to the monetary penalty, BizJet agreed to cooperate with the department in ongoing investigations, to report periodically to the department concerning BizJet’s compliance efforts, and to continue to implement an enhanced compliance program and internal controls designed to prevent and detect FCPA violations.  If BizJet abides by the terms of the deferred prosecution agreement, the department will dismiss the criminal information when the agreement’s term expires.
In addition, BizJet’s indirect parent company, Lufthansa Technik AG, itself a German provider of aircraft-related services, entered into an agreement with the department in connection with the unlawful payments by BizJet and its directors, officers, employees and agents.  The department has agreed not to prosecute Lufthansa Technik provided that Lufthansa Technik satisfies its obligations under the agreement for a period of three years.  Those obligations include ongoing cooperation and the continued implementation of rigorous internal controls.

The agreements acknowledge BizJet’s and Lufthansa Technik’s voluntary disclosure of the FCPA violations to the department and their extraordinary cooperation, including conducting an extensive internal investigation, voluntarily making U.S. and foreign employees available for interviews, and collecting, analyzing and organizing voluminous evidence and information for the department.  In addition, BizJet and Lufthansa Technik engaged in extensive remediation, including terminating the officers and employees responsible for the corrupt payments, enhancing their due-diligence protocol for third-party agents and consultants, and heightening review of proposals and other transactional documents for all BizJet contracts.

The case is being prosecuted by Trial Attorneys Daniel S. Kahn and Stephen J. Spiegelhalter of the Criminal Division’s Fraud Section.  Assistant U.S. Attorney Kevin Leitch from the Northern District of Oklahoma has provided assistance in the case.  The department has also worked closely with its law-enforcement counterparts in Mexico and Panama in this matter and is grateful for their assistance.  The ongoing investigation is being assisted by the FBI’s Washington Field Office.

CITY OF NEW YORK TO PAY $128 MILLION IN DISCRIMINATION CASE

The following excerpt is from the Department of Justice website:

WASHINGTON – A federal court announced last week that it had determined the aggregate amount of back pay damages owed to African-American and Hispanic applicants who were discriminated against by the city of New York in the hiring of entry-level firefighters for the Fire Department of New York (FDNY).  As part of the remedy for the city’s violation of Title VII of the Civil Rights Act of 1964, the court calculated the aggregate amount of gross wage losses at $128,696,803.  The city of New York will have an opportunity to reduce the aggregate amount of back pay by proving that discrimination victims mitigated their losses through interim employment. 

The United States filed its complaint in May 2007, which alleged that the city’s pass/fail and rank order use of two written examinations, administered in 1999 and 2002, resulted in disparate impact upon African-American and Hispanic applicants and were not job-related and consistent with business necessity, in violation of Title VII.  In July 2009, the U.S. District Court for the Eastern District of New York agreed and found that the city’s use of these two written examinations violated Title VII.  Title VII’s prohibitions of discrimination in employment on the basis of race, color, sex, national origin or religion proscribe not only intentional discrimination, but also the use of employment practices (e.g., written tests) that result in disparate impact. Unless the employer can prove that such practices are job related and consistent with business necessity, employment practices that disproportionately screen out applicants based upon race and national origin do not identify the best qualified candidates and violate the law.  In its July 2009 order, the court found that the city’s pass/fail use of the challenged written examinations did not usefully distinguish between candidates who were qualified to perform the job of firefighter, nor did the rank-order use of the exam meaningfully distinguish between candidates who were more or less qualified to do the job. 

“The Department of Justice will not tolerate discrimination in employment on the basis of race or national origin, whether that discrimination is intentional or the result of employment practices that have discriminatory impact,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “The court’s order will provide relief to potentially thousands of individuals who were harmed by such discriminatory practices in New York City.” 

“FDNY’s hiring practices have deprived many qualified African-Americans and Hispanics of the opportunity to serve the people of New York City as firefighters,” said Loretta E. Lynch,  U.S. Attorney for the Eastern District of New York.  “The court’s order sends a strong message to FDNY and to all other employers, public and private, that they must comply with the requirements of Title VII.”

According to the court’s order, a process for distributing monetary damages to individuals harmed by the city’s discriminatory practices will be established in a future order.  The Department of Justice has established a website with information about the lawsuit for individuals who believe that they may have been victims of the city’s discriminatory practices, which is available at www.usdoj.gov/fdnycase.