FROM: U.S. DEPARTMENT OF DEFENSE
DOD Mefloquine Policy Mirrors FDA Update on Malaria Drug
By Cheryl Pellerin
American Forces Press Service
WASHINGTON, Sept. 26, 2013 - The Defense Department's policy on the antimalarial drug mefloquine, which has been in use for decades, is consistent with a stronger, updated warning about the drug from the Food and Drug Administration, senior DOD officials said.
On July 29, the FDA posted on its website a public advisory about neurologic and psychiatric side effects associated with mefloquine hydrochloride, a drug used to prevent and treat the deadly mosquito-borne disease.
The regulatory agency added a boxed warning -- the most serious kind -- to modify the drug's label and revise the patient medication guide and wallet-information card given with each prescription to include the possibility that the neurologic side effects could persist or become permanent if the drug is used.
The FDA uses a boxed warning when an adverse reaction is so serious in proportion to the drug's potential benefit that prescribers should consider this when evaluating the drug's risks and benefits. The warning also is used to alert prescribers that they can prevent or reduce a serious adverse reaction in patients by using the drug appropriately.
Neurologic side effects can include dizziness, loss of balance or ringing in the ears. Psychiatric side effects can include anxiety, mistrust, depression, or hallucinations.
At the Defense Department, mefloquine was designated as the antimalarial drug of last resort in April, according to a DOD policy letter issued that month by Dr. Jonathan Woodson, assistant secretary of defense for health affairs.
"According to the April 15, 2013, Health Affairs guidance, mefloquine should be the last drug that's used. There are other drugs we use first, which would be chloroquine, doxycycline or Malarone, and we save mefloquine for last," Air Force Col. (Dr.) Scott Stanek, a preventive medicine physician in the Office of Force Health Protection and Readiness, told American Forces Press Service.
Malaria is rare in the United States, Stanek said, adding that about 1,700 cases were reported here in 2010 and all were acquired outside the country, leading to six deaths.
"But we send our service members to areas where there is malaria," he said. "It's a serious disease that kills many people around the world, so that's one of the reasons we go through these steps to make sure our service members are protected, and part of the protection package is to use antimalarial medications."
Stanek said that when service members find out they are deploying to an area, they come to the clinic to find out if there is malaria in that location, its type and sensitivity to medications, or whether any resistance to certain antimalarial medications may be present in that location as identified by the Centers for Disease Control and Prevention or the National Center for Medical Intelligence.
Air Force Col. (Dr.) Jose Rodriguez-Vazquez, a family practice and aerospace physician and director of medical readiness in the Office of Force Health Protection and Readiness, said no antimalarial drug is 100 percent protective. Every drug should be used along with personal protective measures such as insect repellent, long sleeves, long pants, sleeping in a mosquito-free setting or using an insecticide-treated bed net, he said.
Stanek added that protection is a multipronged approach.
"We try to minimize the amount of activity we do at times when there are high levels of mosquitoes out there. We provide [service members] with permethrin-treated uniforms; DEET, a very effective insect repellent for the exposed areas of their skin; mosquito netting if needed; and then the last one is antimalarial medicine. It's kind of a package deal," he said.
In areas of the world where service members need protection from malaria parasites, it's only 30 or 40 species of the female Anopheles mosquito infected with the parasites whose bite can transmit the Plasmodium falciparum parasites to humans.
The female mosquito bites mainly between 9 p.m. and 5 a.m., which is why sleeping under a mosquito net is so important.
If a mosquito is infected with Plasmodium parasites and bites someone, the parasites enter the body and travel through the blood stream to the liver, where they multiply about 10,000 times, producing no symptoms at first. About two weeks later, the parasites burst into the blood stream and start infecting red blood cells.
This is where the parasites start producing symptoms of the disease, including chills, fever, headache, sweats and nausea. But it's also where mefloquine works, killing the parasites and keeping them from multiplying.
Mefloquine is effective in preventing malaria, with a demonstrated success rate of 91 percent, according to studies of travelers to East Africa, military health officials said.
"This medication has been around for quite a few years," Stanek said. "It has been used by tens of thousands of individuals, and it works well. It is well known that there is a risk of side effects in some individuals, and although the number of those people is relatively small, we need to make sure that patients are screened so they're not inappropriately given the medication."
On Aug. 12, Woodson notified all military health care providers of the FDA mefloquine boxed warning and labeling change due to potential neurologic and psychiatric side effects associated with the drug.
"This FDA notice focuses on warnings in the prescribing information," he said, "but does not change the indications for the medication."
Woodson said the April 2013 DOD guidance reiterated that mefloquine should be reserved for those who can't take first-line medications and reinforces the need to evaluate each patient for contraindications before starting mefloquine.
Such contraindications include a history of traumatic brain injury and posttraumatic stress disorder, and in those with psychiatric diagnoses, specifically depression, schizophrenia and anxiety disorders, he said.
"As a result of DOD guidance limiting its use," Woodson added, "the number of active-duty service members who received prescriptions for mefloquine decreased from 17,361 in 2008 to 889 through July 2013. Use in other DOD beneficiaries has also decreased dramatically."
Mefloquine use at all points of service for all TRICARE beneficiaries during calendar year 2012 was 5,370 prescriptions given to 4,770 individuals, defense officials said. Of these beneficiaries, 2,030 were active-duty personnel.
"Based on the FDA guidance," Stanek said, "there needs to be a pretty strong reason why somebody uses mefloquine. They either can't take one of the other medicines because of contraindications, or they can't take them because they don't work for that particular [geographical] area."
Showing posts with label DOJ. Show all posts
Showing posts with label DOJ. Show all posts
Wednesday, October 2, 2013
Monday, September 9, 2013
AG HOLDER ANNOUNCES VA MOVE EXTENDING SAME-SEX BENEFITS TO MARRIED COUPLES
FROM: U.S. JUSTICE DEPARTMENT
Wednesday, September 4, 2013
Attorney General Holder Announces Move to Extend Veterans Benefits to Same-Sex Married Couples
In the Obama administration’s latest step to ensure equal treatment for same-sex married couples following the Supreme Court’s decision to strike down a key section of the Defense of Marriage Act, U.S. Attorney General Eric Holder announced Wednesday that President Obama has directed the Executive Branch to take steps allowing for same-sex spouses of military veterans to collect federal benefits.
The new policy means that the administration will no longer enforce statutory language governing the Department of Veterans Affairs (VA) and the Department of Defense (DoD) that restricts the awarding of spousal benefits to opposite-sex marriages only. The language, contained within Title 38 of the U.S. Code, has, until now, prevented the Executive Branch from providing spousal benefits to veterans—and in some instances active-duty service members and reservists—who are in same-sex marriages recognized under state law.
In a letter to Congressional leaders, Holder stated that the President’s decision was consistent with the Court’s decision in Windsor in June.
“Although the Supreme Court did not directly address the constitutionality of the Title 38 provisions in Windsor, the reasoning of the opinion strongly supports the conclusion that those provisions are unconstitutional under the Fifth Amendment,” Holder wrote.
The decision not to enforce Title 38 aligns with the Obama administration’s determination last year that two provisions of Title 38 that govern benefits for veterans and their families were unconstitutional as applied to legally married same-sex couples. At that time, the Attorney General informed Congress that the Department would no longer defend the Title 38 provisions, but that the Executive Branch would continue to enforce them. Today’s announcement makes clear that enforcement of the provision in Title 38 defining marriage as between a man and a woman will now cease.
The announcement comes after the House Bipartisan Legal Advisory Group (BLAG) recently decided to stop defending the Title 38 provisions in pending cases. In addition, last week, a federal district court in California held the Title 38 provisions unconstitutional on equal protection grounds. After consideration of these developments and a recommendation by the Attorney General, the President directed the Executive Branch to cease enforcement of the Title 38 provisions.
Wednesday, September 4, 2013
Attorney General Holder Announces Move to Extend Veterans Benefits to Same-Sex Married Couples
In the Obama administration’s latest step to ensure equal treatment for same-sex married couples following the Supreme Court’s decision to strike down a key section of the Defense of Marriage Act, U.S. Attorney General Eric Holder announced Wednesday that President Obama has directed the Executive Branch to take steps allowing for same-sex spouses of military veterans to collect federal benefits.
The new policy means that the administration will no longer enforce statutory language governing the Department of Veterans Affairs (VA) and the Department of Defense (DoD) that restricts the awarding of spousal benefits to opposite-sex marriages only. The language, contained within Title 38 of the U.S. Code, has, until now, prevented the Executive Branch from providing spousal benefits to veterans—and in some instances active-duty service members and reservists—who are in same-sex marriages recognized under state law.
In a letter to Congressional leaders, Holder stated that the President’s decision was consistent with the Court’s decision in Windsor in June.
“Although the Supreme Court did not directly address the constitutionality of the Title 38 provisions in Windsor, the reasoning of the opinion strongly supports the conclusion that those provisions are unconstitutional under the Fifth Amendment,” Holder wrote.
The decision not to enforce Title 38 aligns with the Obama administration’s determination last year that two provisions of Title 38 that govern benefits for veterans and their families were unconstitutional as applied to legally married same-sex couples. At that time, the Attorney General informed Congress that the Department would no longer defend the Title 38 provisions, but that the Executive Branch would continue to enforce them. Today’s announcement makes clear that enforcement of the provision in Title 38 defining marriage as between a man and a woman will now cease.
The announcement comes after the House Bipartisan Legal Advisory Group (BLAG) recently decided to stop defending the Title 38 provisions in pending cases. In addition, last week, a federal district court in California held the Title 38 provisions unconstitutional on equal protection grounds. After consideration of these developments and a recommendation by the Attorney General, the President directed the Executive Branch to cease enforcement of the Title 38 provisions.
Tuesday, August 27, 2013
TAX PREPARER FOR DEFENSE CONTRACTOR WORKERS BARRED FROM TAX PREPARATION
FROM: U.S. JUSTICE DEPARTMENT
Friday, August 23, 2013
Texas Tax Preparer Is Permanently Barred from Tax Preparation for Allegedly Falsifying Returns for Overseas Customers and Impeding Audits
Many Customers of a Southlake Woman Allegedly Worked Overseas for Defense Contractors
The Justice Department announced that yesterday a federal court in Ft. Worth, Texas permanently barred Karena Mondrianh, of Southlake, Texas, from preparing tax returns and from operating a tax-preparation business. Mondrianh consented to entry of the preliminary injunctions without admitting the allegations against her.
In its complaint, the government alleged that Mondrianh prepared fraudulent tax returns understating customers’ income by inventing – sometimes without customers’ knowledge – false business expenses and by falsely claiming that customers’ income was exempt from tax. According to the complaint most of Mondrianh’s customers work overseas for defense contractors. The permanent injunction order was signed by Judge John H. McBryde of the U.S. District Court for the Northern District of Texas.
The complaint further alleged that Mondrianh provided false information to the Internal Revenue Service (IRS) in improper attempts to delay IRS audits of customers. She also allegedly urged a customer to lie to an IRS agent in order to forestall an IRS audit.
Friday, August 23, 2013
Texas Tax Preparer Is Permanently Barred from Tax Preparation for Allegedly Falsifying Returns for Overseas Customers and Impeding Audits
Many Customers of a Southlake Woman Allegedly Worked Overseas for Defense Contractors
The Justice Department announced that yesterday a federal court in Ft. Worth, Texas permanently barred Karena Mondrianh, of Southlake, Texas, from preparing tax returns and from operating a tax-preparation business. Mondrianh consented to entry of the preliminary injunctions without admitting the allegations against her.
In its complaint, the government alleged that Mondrianh prepared fraudulent tax returns understating customers’ income by inventing – sometimes without customers’ knowledge – false business expenses and by falsely claiming that customers’ income was exempt from tax. According to the complaint most of Mondrianh’s customers work overseas for defense contractors. The permanent injunction order was signed by Judge John H. McBryde of the U.S. District Court for the Northern District of Texas.
The complaint further alleged that Mondrianh provided false information to the Internal Revenue Service (IRS) in improper attempts to delay IRS audits of customers. She also allegedly urged a customer to lie to an IRS agent in order to forestall an IRS audit.
Wednesday, July 24, 2013
AUTO PARTS COMPANY AND EXECUTIVE AGREE TO PLEAD GUILTY TO PRICE FIXING
FROM: U.S. DEPARTMENT OF JUSTICE
DIAMOND ELECTRIC MFG. CO. LTD. AND AN AUTOLIV INC. EXECUTIVE
AGREE TO PLEAD GUILTY TO PRICE FIXING ON AUTOMOBILE PARTS
INSTALLED IN U.S. CARS
First Case Involving Parts Sold Directly to Automobile Company Headquartered in U.S.
WASHINGTON — Osaka, Japan-based Diamond Electric Mfg. Co. Ltd. has agreed to plead guilty and to pay a $19 million criminal fine for its role in a conspiracy to fix prices of ignition coils installed in cars sold in the United States and elsewhere, the Department of Justice announced today. This is the first case in the department’s antitrust investigation involving parts sold directly to an automobile company headquartered in the United States – Ford Motor Co. The department also announced that an Autoliv Inc. executive has agreed to plead guilty for his role in a conspiracy to fix the prices of certain seatbelts sold to Toyota Motor Corp. for installation in cars manufactured and sold in the United States and elsewhere.
Diamond Electric has agreed to cooperate with the department’s ongoing investigation. Takayoshi Matsunaga, a current employee of Autoliv and former vice president of the Toyota Global Business Unit at Autoliv Japan, agreed to serve one year and one day in a U.S. prison, to pay a $20,000 criminal fine and to cooperate with the department’s ongoing investigation. The plea agreements for both Diamond Electric and Matsunaga are subject to court approval.
According to a one-count felony charge filed today in U.S. District Court for the Eastern District of Michigan in Detroit, Diamond Electric engaged in a conspiracy, by agreeing during meetings and conversations, to rig bids for, and to fix, stabilize and maintain the prices of ignition coils it sold to Ford Motor Co., Toyota Motor Corp., Fuji Heavy Industries Ltd. and certain of their subsidiaries, in the United States and elsewhere, on a model-by-model basis. According to the charge, Diamond Electric and its co-conspirators carried out the conspiracy from at least as early as July 2003 until at least February 2010.
“Today’s prosecutions brings the total to 10 companies and 15 executives held accountable for fixing prices on parts used to manufacture cars in the United States,” said Scott D. Hammond, Deputy Assistant Attorney General of the Antitrust Division’s criminal enforcement program. “The Antitrust Division and its law enforcement partners will protect American businesses and consumers from harmful price-fixing cartels and bring those responsible to justice.”
Diamond Electric manufactures and sells ignition coils. Ignition coils are part of the fuel ignition system. They are responsible for quickly releasing electricity to the spark plugs for ignition.
According to a one-count felony charge filed today in the U.S. District Court for the Eastern District of Michigan in Detroit, Matsunaga, a Japanese national, engaged in a conspiracy to rig bids for, and to fix, stabilize and maintain the prices of certain seatbelts sold to Toyota in the United States and elsewhere. According to the charge, Matsunaga’s involvement in the conspiracy lasted from on or about May 2008 until at least February 2011.
“Those who engage in price fixing, bid rigging and other fraudulent schemes harm the automotive industry by driving up costs for vehicle makers and buyers,” said Robert D. Foley III, Special Agent in Charge, FBI Detroit Division. “The FBI is committed to pursuing and prosecuting these individuals for their crimes.”
According to the charge, Matsunaga and his co-conspirators carried out the conspiracy by, among other things, agreeing during meetings and discussions to coordinate bids submitted to Toyota. Matsunaga is the 15th individual to agree to plead guilty in the department’s ongoing antitrust investigation into price fixing and bid rigging in the auto parts industry.
Stockholm-based Autoliv Inc. is a manufacturer of automotive occupant safety systems, including certain seatbelts. In June 2012, Autoliv agreed to plead guilty and to pay a $14.5 million criminal fine for its role in a conspiracy to fix the prices of certain seatbelts, airbags and steering wheels installed in U.S. cars.
Including Diamond Electric and Matsunaga, 10 companies and 15 executives have pleaded guilty or agreed to plead guilty in the division’s ongoing investigation into price fixing and bid rigging in the auto parts industry and have agreed to pay a total of $828 million in criminal fines. DENSO, Nippon Seiki Ltd., Tokai Rika Co. Ltd., Furukawa Electric Co. Ltd, Yazaki Corp., G.S. Electech Inc., Fujikura Ltd., Autoliv Inc. and TRW Deutschland Holding GmbH have already pleaded guilty. Additionally, 12 individuals have been sentenced to pay criminal fines and to serve jail sentences ranging from a year and a day to two years each. Two additional executives have agreed to serve time in prison and are currently awaiting sentencing.
Diamond Electric and Matsunaga are charged with price fixing in violation of the Sherman Act, which carries maximum penalties of a $100 million criminal fine for corporations and 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
The charges are the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI.
DIAMOND ELECTRIC MFG. CO. LTD. AND AN AUTOLIV INC. EXECUTIVE
AGREE TO PLEAD GUILTY TO PRICE FIXING ON AUTOMOBILE PARTS
INSTALLED IN U.S. CARS
First Case Involving Parts Sold Directly to Automobile Company Headquartered in U.S.
WASHINGTON — Osaka, Japan-based Diamond Electric Mfg. Co. Ltd. has agreed to plead guilty and to pay a $19 million criminal fine for its role in a conspiracy to fix prices of ignition coils installed in cars sold in the United States and elsewhere, the Department of Justice announced today. This is the first case in the department’s antitrust investigation involving parts sold directly to an automobile company headquartered in the United States – Ford Motor Co. The department also announced that an Autoliv Inc. executive has agreed to plead guilty for his role in a conspiracy to fix the prices of certain seatbelts sold to Toyota Motor Corp. for installation in cars manufactured and sold in the United States and elsewhere.
Diamond Electric has agreed to cooperate with the department’s ongoing investigation. Takayoshi Matsunaga, a current employee of Autoliv and former vice president of the Toyota Global Business Unit at Autoliv Japan, agreed to serve one year and one day in a U.S. prison, to pay a $20,000 criminal fine and to cooperate with the department’s ongoing investigation. The plea agreements for both Diamond Electric and Matsunaga are subject to court approval.
According to a one-count felony charge filed today in U.S. District Court for the Eastern District of Michigan in Detroit, Diamond Electric engaged in a conspiracy, by agreeing during meetings and conversations, to rig bids for, and to fix, stabilize and maintain the prices of ignition coils it sold to Ford Motor Co., Toyota Motor Corp., Fuji Heavy Industries Ltd. and certain of their subsidiaries, in the United States and elsewhere, on a model-by-model basis. According to the charge, Diamond Electric and its co-conspirators carried out the conspiracy from at least as early as July 2003 until at least February 2010.
“Today’s prosecutions brings the total to 10 companies and 15 executives held accountable for fixing prices on parts used to manufacture cars in the United States,” said Scott D. Hammond, Deputy Assistant Attorney General of the Antitrust Division’s criminal enforcement program. “The Antitrust Division and its law enforcement partners will protect American businesses and consumers from harmful price-fixing cartels and bring those responsible to justice.”
Diamond Electric manufactures and sells ignition coils. Ignition coils are part of the fuel ignition system. They are responsible for quickly releasing electricity to the spark plugs for ignition.
According to a one-count felony charge filed today in the U.S. District Court for the Eastern District of Michigan in Detroit, Matsunaga, a Japanese national, engaged in a conspiracy to rig bids for, and to fix, stabilize and maintain the prices of certain seatbelts sold to Toyota in the United States and elsewhere. According to the charge, Matsunaga’s involvement in the conspiracy lasted from on or about May 2008 until at least February 2011.
“Those who engage in price fixing, bid rigging and other fraudulent schemes harm the automotive industry by driving up costs for vehicle makers and buyers,” said Robert D. Foley III, Special Agent in Charge, FBI Detroit Division. “The FBI is committed to pursuing and prosecuting these individuals for their crimes.”
According to the charge, Matsunaga and his co-conspirators carried out the conspiracy by, among other things, agreeing during meetings and discussions to coordinate bids submitted to Toyota. Matsunaga is the 15th individual to agree to plead guilty in the department’s ongoing antitrust investigation into price fixing and bid rigging in the auto parts industry.
Stockholm-based Autoliv Inc. is a manufacturer of automotive occupant safety systems, including certain seatbelts. In June 2012, Autoliv agreed to plead guilty and to pay a $14.5 million criminal fine for its role in a conspiracy to fix the prices of certain seatbelts, airbags and steering wheels installed in U.S. cars.
Including Diamond Electric and Matsunaga, 10 companies and 15 executives have pleaded guilty or agreed to plead guilty in the division’s ongoing investigation into price fixing and bid rigging in the auto parts industry and have agreed to pay a total of $828 million in criminal fines. DENSO, Nippon Seiki Ltd., Tokai Rika Co. Ltd., Furukawa Electric Co. Ltd, Yazaki Corp., G.S. Electech Inc., Fujikura Ltd., Autoliv Inc. and TRW Deutschland Holding GmbH have already pleaded guilty. Additionally, 12 individuals have been sentenced to pay criminal fines and to serve jail sentences ranging from a year and a day to two years each. Two additional executives have agreed to serve time in prison and are currently awaiting sentencing.
Diamond Electric and Matsunaga are charged with price fixing in violation of the Sherman Act, which carries maximum penalties of a $100 million criminal fine for corporations and 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
The charges are the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI.
Tuesday, July 23, 2013
HAPPY'S PIZZA FRANCHISE OWNER INDICTED IN CONSPIRACY TO UNDERREPORT INCOME AND PAYROLL TAXES
FROM: U.S. DEPARTMENT OF JUSTICE
Tuesday, July 16, 2013
Pizza Franchise Owner and Four Others Indicted for Tax Fraud
The Justice Department announced today that Happy Asker, franchise owner of multiple “Happy’s Pizza” franchises, was indicted by a federal grand jury in Detroit along with Maher Bashi, Tom Yaldo, Arkan Summa and Tagrid Bashi for multiple tax offenses arising from a conspiracy to under report taxable income and payroll taxes of nine Happy’s Pizza franchises. All defendants with the exception of Happy Asker were arrested.
A multiple count indictment was unsealed in the Eastern District of Michigan charging Happy Asker, Maher Bashi and Tom Yaldo with conspiracy to defraud the United States by keeping fraudulent accounting records and falsely reporting income taxes and payroll taxes due and owing.
The indictment alleges that from approximately June 2004 through April 2011, the defendants conspired with each other to divert business receipts, underreport wages and understate the true income and expenses of specified Happy’s Pizza franchises. According to the indictment, the scheme resulted in the specified franchises paying more than $2.1 million in unreported wages to employees and shareholders .
Additional charges in the indictment include three counts of filing a false individual income tax return as to Happy Asker; 21 counts of aiding in the filing of false payroll tax returns as to Happy Asker and Maher Bashi; 23 counts of aiding in the filing of false payroll tax returns as to Tom Yaldo on behalf of specified Happy’s Pizza franchises; and 11 counts as to Happy Asker and Maher Bashi for aiding in filing false corporate tax returns on behalf of specified Happy’s Pizza franchises.
Finally, the indictment also charges Happy Asker and Maher Bashi with one count of obstructing the due administration of the internal revenue laws. Arkan Summa and Tagrid Bashi are also charged together in a count of obstructing the due administration of the internal revenue laws and Tom Yaldo is also charged with one count of obstructing the due administration of the internal revenue laws.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty. If convicted of the conspiracy charge, the defendants face up to 5 years in prison and a $250,000 fine. The charges of filing a false income tax return and aiding or assisting in filing a false return carry a maximum penalty of three years in prison and a fine of $250,000 for each count. The obstruction charge carries a maximum penalty of three years in prison and a fine of $250,000 for each count.
This case was investigated by Internal Revenue Service – Criminal Investigation, the Drug Enforcement Administration and the FBI and is being prosecuted by Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald of the Justice Department’s Tax Division.
Tuesday, July 16, 2013
Pizza Franchise Owner and Four Others Indicted for Tax Fraud
The Justice Department announced today that Happy Asker, franchise owner of multiple “Happy’s Pizza” franchises, was indicted by a federal grand jury in Detroit along with Maher Bashi, Tom Yaldo, Arkan Summa and Tagrid Bashi for multiple tax offenses arising from a conspiracy to under report taxable income and payroll taxes of nine Happy’s Pizza franchises. All defendants with the exception of Happy Asker were arrested.
A multiple count indictment was unsealed in the Eastern District of Michigan charging Happy Asker, Maher Bashi and Tom Yaldo with conspiracy to defraud the United States by keeping fraudulent accounting records and falsely reporting income taxes and payroll taxes due and owing.
The indictment alleges that from approximately June 2004 through April 2011, the defendants conspired with each other to divert business receipts, underreport wages and understate the true income and expenses of specified Happy’s Pizza franchises. According to the indictment, the scheme resulted in the specified franchises paying more than $2.1 million in unreported wages to employees and shareholders .
Additional charges in the indictment include three counts of filing a false individual income tax return as to Happy Asker; 21 counts of aiding in the filing of false payroll tax returns as to Happy Asker and Maher Bashi; 23 counts of aiding in the filing of false payroll tax returns as to Tom Yaldo on behalf of specified Happy’s Pizza franchises; and 11 counts as to Happy Asker and Maher Bashi for aiding in filing false corporate tax returns on behalf of specified Happy’s Pizza franchises.
Finally, the indictment also charges Happy Asker and Maher Bashi with one count of obstructing the due administration of the internal revenue laws. Arkan Summa and Tagrid Bashi are also charged together in a count of obstructing the due administration of the internal revenue laws and Tom Yaldo is also charged with one count of obstructing the due administration of the internal revenue laws.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty. If convicted of the conspiracy charge, the defendants face up to 5 years in prison and a $250,000 fine. The charges of filing a false income tax return and aiding or assisting in filing a false return carry a maximum penalty of three years in prison and a fine of $250,000 for each count. The obstruction charge carries a maximum penalty of three years in prison and a fine of $250,000 for each count.
This case was investigated by Internal Revenue Service – Criminal Investigation, the Drug Enforcement Administration and the FBI and is being prosecuted by Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald of the Justice Department’s Tax Division.
Sunday, July 21, 2013
GALLOP ORGANIZATION TO PAY $10.5 MILLION TO SETTLE ALLEGATIONS OF FALSE CLAMS ACT VIOLATIONS
FROM: U.S. DEPARTMENT OF JUSTICE
Monday, July 15, 2013
The Gallup Organization Agrees to Pay $10.5 Million to Settle Allegations That It Improperly Inflated Contract Prices and Engaged in Prohibited Employment Negotiations with Fema Official
FEMA Official Also Settles with the United States
The Justice Department announced today that the Gallup Organization has agreed to pay $10.5 million to settle allegations that it violated the False Claims Act and the Procurement Integrity Act for conduct involving several of its federal government contracts and subcontracts. Gallup is a polling and market research firm headquartered in Washington, D.C.
The settlement announced today resolves allegations in a complaint filed by the United States in November 2012. The United States’ complaint alleged that Gallup knowingly overstated its true estimated labor hours in proposals to the U.S. Mint and State Department for contracts and task orders that were to be awarded without competition. Because of Gallup’s conduct, the complaint alleged, the two federal agencies awarded Gallup contracts and task orders at falsely inflated prices. The settlement also resolves allegations that Gallup engaged in improper employment negotiations with a then Federal Emergency Management Agency (FEMA) official, Timothy Cannon, in order to obtain a FEMA subcontract at an inflated price and additional FEMA funding after the subcontract had been awarded.
"Contractors must be honest and straightforward in their contract proposals to the government," said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division of the Department of Justice. "We will pursue contractors that seek to take advantage of the government by providing estimates that do not reflect their best judgment, or by offering employment to federal officials who have a conflict of interest. This type of misconduct results in inflated contract prices and undermines the integrity of the government’s contracting process."
Separately, in April 2013, Cannon agreed to pay $40,000 to the United States to resolve allegations that he violated the Procurement Integrity Act by improperly negotiating for and accepting an offer of employment from Gallup while being personally and substantially involved in Gallup’s subcontract with FEMA. In related criminal proceedings, on January 15, 2013, Cannon pled guilty to a violation of 18 U.S.C. § 208, a federal conflict of interest statute, and was subsequently sentenced to probation.
"This case exposed a cozy arrangement between a contractor and a government employee where nobody was looking out for the American taxpayer," said Ronald C. Machen Jr., U.S. Attorney for the District of Columbia. "With this settlement, we have held the contractor accountable for overbilling the government and returned $10.5 million to the federal treasury. This significant corporate settlement and the related criminal prosecution should send a clear message that contractors and government officials alike must operate with honor and integrity."
The False Claims Act allegations against Gallup were originally brought in a lawsuit filed under the whistleblower provisions of the Act by Michael Lindley, Gallup’s former Director of Client Services. The False Claims Act prohibits the submission of false claims for government money or property and allows the United States to recover treble damages and penalties for a violation. Under the Act’s whistleblower provisions, a private party may file suit on behalf of the United States and share in any recovery. The United States may elect to intervene and take over the case, as it did here. As a result of the settlement with Gallup, Lindley will receive $1,929,363 as his share of the government’s recovery.
The settlement announced today is part of a global civil, criminal, and administrative resolution involving the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the District of Columbia, and the United States Department of Homeland Security (DHS). After the United States’ civil complaint was filed, DHS, the parent organization of FEMA, suspended Gallup from government contracting. In contemplation of resolving the criminal and civil investigations, Gallup recently entered into an Administrative Agreement with DHS, under which Gallup agreed to enhance its corporate compliance and ethics programs. As a result, DHS lifted the suspension of Gallup. Contemporaneous with the civil settlement, Gallup has entered into a Non-Prosecution Agreement with the U.S. Attorney’s Office for the District of Columbia related to the FEMA conflict of interest allegations, in which Gallup has further agreed to strengthen its corporate compliance and ethics programs and to pay a penalty of $50,000.
The criminal investigation was conducted by the FBI and the Inspectors General for DHS and the General Services Administration (GSA).
The Deputy Inspector General for the Department of State, Harold W. Geisel, said, "We are very pleased with the successful resolution of this case, and I commend the dedication of our OIG investigators in these complicated investigations. Our efforts should reinforce our commitment to American taxpayers to recover funds from contractors who have unlawfully claimed them."
P. Brian Crane, Assistant Inspector General for Investigations, Treasury Office of Inspector General, would like to thank the U.S. Department of Justice and all agents involved in this case, and states that his office is committed to investigating contract fraud within Treasury’s bureaus, and is pleased with the outcome of this investigation.
"We are vigilant to protect taxpayers from contractors who overcharge the government," said GSA Inspector General Brian D. Miller.
The claims asserted in the government’s complaint are allegations only and there has been no determination of liability.
Monday, July 15, 2013
The Gallup Organization Agrees to Pay $10.5 Million to Settle Allegations That It Improperly Inflated Contract Prices and Engaged in Prohibited Employment Negotiations with Fema Official
FEMA Official Also Settles with the United States
The Justice Department announced today that the Gallup Organization has agreed to pay $10.5 million to settle allegations that it violated the False Claims Act and the Procurement Integrity Act for conduct involving several of its federal government contracts and subcontracts. Gallup is a polling and market research firm headquartered in Washington, D.C.
The settlement announced today resolves allegations in a complaint filed by the United States in November 2012. The United States’ complaint alleged that Gallup knowingly overstated its true estimated labor hours in proposals to the U.S. Mint and State Department for contracts and task orders that were to be awarded without competition. Because of Gallup’s conduct, the complaint alleged, the two federal agencies awarded Gallup contracts and task orders at falsely inflated prices. The settlement also resolves allegations that Gallup engaged in improper employment negotiations with a then Federal Emergency Management Agency (FEMA) official, Timothy Cannon, in order to obtain a FEMA subcontract at an inflated price and additional FEMA funding after the subcontract had been awarded.
"Contractors must be honest and straightforward in their contract proposals to the government," said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division of the Department of Justice. "We will pursue contractors that seek to take advantage of the government by providing estimates that do not reflect their best judgment, or by offering employment to federal officials who have a conflict of interest. This type of misconduct results in inflated contract prices and undermines the integrity of the government’s contracting process."
Separately, in April 2013, Cannon agreed to pay $40,000 to the United States to resolve allegations that he violated the Procurement Integrity Act by improperly negotiating for and accepting an offer of employment from Gallup while being personally and substantially involved in Gallup’s subcontract with FEMA. In related criminal proceedings, on January 15, 2013, Cannon pled guilty to a violation of 18 U.S.C. § 208, a federal conflict of interest statute, and was subsequently sentenced to probation.
"This case exposed a cozy arrangement between a contractor and a government employee where nobody was looking out for the American taxpayer," said Ronald C. Machen Jr., U.S. Attorney for the District of Columbia. "With this settlement, we have held the contractor accountable for overbilling the government and returned $10.5 million to the federal treasury. This significant corporate settlement and the related criminal prosecution should send a clear message that contractors and government officials alike must operate with honor and integrity."
The False Claims Act allegations against Gallup were originally brought in a lawsuit filed under the whistleblower provisions of the Act by Michael Lindley, Gallup’s former Director of Client Services. The False Claims Act prohibits the submission of false claims for government money or property and allows the United States to recover treble damages and penalties for a violation. Under the Act’s whistleblower provisions, a private party may file suit on behalf of the United States and share in any recovery. The United States may elect to intervene and take over the case, as it did here. As a result of the settlement with Gallup, Lindley will receive $1,929,363 as his share of the government’s recovery.
The settlement announced today is part of a global civil, criminal, and administrative resolution involving the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the District of Columbia, and the United States Department of Homeland Security (DHS). After the United States’ civil complaint was filed, DHS, the parent organization of FEMA, suspended Gallup from government contracting. In contemplation of resolving the criminal and civil investigations, Gallup recently entered into an Administrative Agreement with DHS, under which Gallup agreed to enhance its corporate compliance and ethics programs. As a result, DHS lifted the suspension of Gallup. Contemporaneous with the civil settlement, Gallup has entered into a Non-Prosecution Agreement with the U.S. Attorney’s Office for the District of Columbia related to the FEMA conflict of interest allegations, in which Gallup has further agreed to strengthen its corporate compliance and ethics programs and to pay a penalty of $50,000.
The criminal investigation was conducted by the FBI and the Inspectors General for DHS and the General Services Administration (GSA).
The Deputy Inspector General for the Department of State, Harold W. Geisel, said, "We are very pleased with the successful resolution of this case, and I commend the dedication of our OIG investigators in these complicated investigations. Our efforts should reinforce our commitment to American taxpayers to recover funds from contractors who have unlawfully claimed them."
P. Brian Crane, Assistant Inspector General for Investigations, Treasury Office of Inspector General, would like to thank the U.S. Department of Justice and all agents involved in this case, and states that his office is committed to investigating contract fraud within Treasury’s bureaus, and is pleased with the outcome of this investigation.
"We are vigilant to protect taxpayers from contractors who overcharge the government," said GSA Inspector General Brian D. Miller.
The claims asserted in the government’s complaint are allegations only and there has been no determination of liability.
Friday, July 19, 2013
MAN CHARGED WITH SELLING COUNTERFEIT SEMICONDUCTORS FROM CHINA FOR NUCLEAR SUBMARINES
FROM: U.S. DEPARTMENT OF JUSTICE
Monday, July 15, 2013
Massachusetts Man Charged with Selling Counterfeit Semiconductors Intended for Use on Nuclear Submarines
Peter Picone, 40, of Methuen, Mass., has been charged with importing counterfeit semiconductors from China for sale in the United States.
The charges were announced today by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Acting U.S. Attorney for the District of Connecticut Deirdre M. Daly; Special Agent in Charge Bruce Foucart of U.S. Immigration and Customs Enforcement (ICE) - Homeland Security Investigations (HSI) in Boston; Acting Special Agent in Charge of Defense Criminal Investigative Service (DCIS) Northeast Field Office Craig W. Rupert; and Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Northeast Field Office Cheryl A. DiPrizio.
The eight-count indictment charges Picone with conspiring to traffic in counterfeit goods, conspiring to traffic in counterfeit military goods, trafficking in counterfeit goods, conspiring to commit wire fraud, wire fraud and conspiring to commit money laundering. The indictment was returned by a federal grand jury in New Haven on June 25, 2013, and was unsealed today.
The indictment charges that from February 2007 through April 2012, Picone, through two companies he owned and operated, Tytronix Inc. and Epic International Electronics, purchased counterfeit semiconductors from sources in Hong Kong and China. According to the indictment, Picone made false representations about the semiconductors and sold them to customers throughout the United States, including companies believed by Picone to be defense contractors in Connecticut and Florida. Certain semiconductors sold by Picone were intended for use on nuclear submarines.
“By allegedly purchasing and reselling counterfeit semiconductors for military applications, Peter Picone put personal gain above the safety and well-being of dedicated U.S. servicemen and women,” said Acting Assistant Attorney General Raman. “As charged in the indictment, Picone went to great lengths to conceal the true origin of counterfeit semiconductors in order to sell the devices as seemingly legitimate and reliable components for use in nuclear submarines and other complex machinery. The charges unsealed today demonstrate our steadfast commitment to working with our law enforcement partners to prosecute counterfeiters and others who risk the security of the men and women of the U.S. military.”
“Counterfeit semiconductors pose a serious health and safety risk to consumers and end-users, and an even greater threat to the safety of the men and women of our armed services when they are sold for use in the military,” said Acting U.S. Attorney Daly. “We will prosecute these types of cases to the fullest extent of the law.”
“Today’s charges demonstrate the continued commitment of the Defense Criminal Investigative Service and our peer agencies to protect the Department of Defense’s supply chain from being infiltrated and compromised with inferior components,” said DCIS Northeast Field Office Acting Special Agent in Charge Rupert. “Safeguarding our warfighters and ensuring their equipment functions at the absolute highest levels is vital to our nation’s defense and readiness. Detecting and dismantling the operations of suppliers who choose to make a profit by supplying counterfeit or inferior products is a DCIS priority. I applaud the agents and prosecutors who worked tirelessly to bring about this result.”
“Trafficking in counterfeit sensitive technologies is an extremely dangerous practice on several fronts. Not only are there significant risks associated with the transportation of this faulty equipment, but our own American servicemembers are also put in harm’s way when they encounter substandard equipment,” said ICE-HSI Special Agent in Charge Foucart. “One of HSI's top enforcement priorities is protecting the integrity of U.S. military products and other sensitive technology.”
“Counterfeit semiconductors represent a serious threat to the safety of our military service members and raise national security concerns,” said NCIS Special Agent in Charge DiPrizio. “The introduction of defective equipment into the military supply chain can result in product failure, property damage and even serious bodily injury, including death. Some of these counterfeit devices can also be preprogrammed with malicious code and enable computer network intrusion. NCIS has worked closely with our law enforcement partners at DCIS and ICE-HSI in identifying unscrupulous suppliers and bringing them to justice.”
Picone was arraigned before U.S. Magistrate Judge Donna F. Martinez of the District of Connecticut in Hartford, Conn., and was released on bond. Trial is scheduled for Sept. 9, 2013, before U.S. District Judge Alvin W. Thompson in Hartford.
If convicted of conspiracy to traffic in counterfeit goods, Picone faces a maximum penalty of five years in prison. If convicted of conspiracy to traffic in counterfeit military goods, Picone faces a maximum term of 20 years in prison. If convicted of trafficking in counterfeit goods, Picone faces a maximum term of 10 years in prison. If convicted of conspiracy to commit wire fraud, or wire fraud, Picone faces a maximum penalty of 20 years in prison. If convicted of conspiracy to commit money laundering, Picone faces a maximum term of 20 years in prison.
The indictment also seeks forfeiture of proceeds from illicit trafficking in counterfeit goods and wire fraud as well as the seizure of the goods and any property involved in the money laundering conspiracy.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The case was jointly investigated by HSI, DCIS and NCIS. The case is being prosecuted by Assistant U.S. Attorney Edward Chang of the District of Connecticut and Trial Attorneys Kendra Ervin and Carol Sipperly of the Criminal Division’s Computer Crime and Intellectual Property Section. Trial Attorney Kristen M. Warden of the Criminal Division’s Asset Forfeiture and Money Laundering Section is assisting with the forfeiture aspects of the case.
The enforcement action announced today is one of many efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). 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.
Monday, July 15, 2013
Massachusetts Man Charged with Selling Counterfeit Semiconductors Intended for Use on Nuclear Submarines
Peter Picone, 40, of Methuen, Mass., has been charged with importing counterfeit semiconductors from China for sale in the United States.
The charges were announced today by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Acting U.S. Attorney for the District of Connecticut Deirdre M. Daly; Special Agent in Charge Bruce Foucart of U.S. Immigration and Customs Enforcement (ICE) - Homeland Security Investigations (HSI) in Boston; Acting Special Agent in Charge of Defense Criminal Investigative Service (DCIS) Northeast Field Office Craig W. Rupert; and Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Northeast Field Office Cheryl A. DiPrizio.
The eight-count indictment charges Picone with conspiring to traffic in counterfeit goods, conspiring to traffic in counterfeit military goods, trafficking in counterfeit goods, conspiring to commit wire fraud, wire fraud and conspiring to commit money laundering. The indictment was returned by a federal grand jury in New Haven on June 25, 2013, and was unsealed today.
The indictment charges that from February 2007 through April 2012, Picone, through two companies he owned and operated, Tytronix Inc. and Epic International Electronics, purchased counterfeit semiconductors from sources in Hong Kong and China. According to the indictment, Picone made false representations about the semiconductors and sold them to customers throughout the United States, including companies believed by Picone to be defense contractors in Connecticut and Florida. Certain semiconductors sold by Picone were intended for use on nuclear submarines.
“By allegedly purchasing and reselling counterfeit semiconductors for military applications, Peter Picone put personal gain above the safety and well-being of dedicated U.S. servicemen and women,” said Acting Assistant Attorney General Raman. “As charged in the indictment, Picone went to great lengths to conceal the true origin of counterfeit semiconductors in order to sell the devices as seemingly legitimate and reliable components for use in nuclear submarines and other complex machinery. The charges unsealed today demonstrate our steadfast commitment to working with our law enforcement partners to prosecute counterfeiters and others who risk the security of the men and women of the U.S. military.”
“Counterfeit semiconductors pose a serious health and safety risk to consumers and end-users, and an even greater threat to the safety of the men and women of our armed services when they are sold for use in the military,” said Acting U.S. Attorney Daly. “We will prosecute these types of cases to the fullest extent of the law.”
“Today’s charges demonstrate the continued commitment of the Defense Criminal Investigative Service and our peer agencies to protect the Department of Defense’s supply chain from being infiltrated and compromised with inferior components,” said DCIS Northeast Field Office Acting Special Agent in Charge Rupert. “Safeguarding our warfighters and ensuring their equipment functions at the absolute highest levels is vital to our nation’s defense and readiness. Detecting and dismantling the operations of suppliers who choose to make a profit by supplying counterfeit or inferior products is a DCIS priority. I applaud the agents and prosecutors who worked tirelessly to bring about this result.”
“Trafficking in counterfeit sensitive technologies is an extremely dangerous practice on several fronts. Not only are there significant risks associated with the transportation of this faulty equipment, but our own American servicemembers are also put in harm’s way when they encounter substandard equipment,” said ICE-HSI Special Agent in Charge Foucart. “One of HSI's top enforcement priorities is protecting the integrity of U.S. military products and other sensitive technology.”
“Counterfeit semiconductors represent a serious threat to the safety of our military service members and raise national security concerns,” said NCIS Special Agent in Charge DiPrizio. “The introduction of defective equipment into the military supply chain can result in product failure, property damage and even serious bodily injury, including death. Some of these counterfeit devices can also be preprogrammed with malicious code and enable computer network intrusion. NCIS has worked closely with our law enforcement partners at DCIS and ICE-HSI in identifying unscrupulous suppliers and bringing them to justice.”
Picone was arraigned before U.S. Magistrate Judge Donna F. Martinez of the District of Connecticut in Hartford, Conn., and was released on bond. Trial is scheduled for Sept. 9, 2013, before U.S. District Judge Alvin W. Thompson in Hartford.
If convicted of conspiracy to traffic in counterfeit goods, Picone faces a maximum penalty of five years in prison. If convicted of conspiracy to traffic in counterfeit military goods, Picone faces a maximum term of 20 years in prison. If convicted of trafficking in counterfeit goods, Picone faces a maximum term of 10 years in prison. If convicted of conspiracy to commit wire fraud, or wire fraud, Picone faces a maximum penalty of 20 years in prison. If convicted of conspiracy to commit money laundering, Picone faces a maximum term of 20 years in prison.
The indictment also seeks forfeiture of proceeds from illicit trafficking in counterfeit goods and wire fraud as well as the seizure of the goods and any property involved in the money laundering conspiracy.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The case was jointly investigated by HSI, DCIS and NCIS. The case is being prosecuted by Assistant U.S. Attorney Edward Chang of the District of Connecticut and Trial Attorneys Kendra Ervin and Carol Sipperly of the Criminal Division’s Computer Crime and Intellectual Property Section. Trial Attorney Kristen M. Warden of the Criminal Division’s Asset Forfeiture and Money Laundering Section is assisting with the forfeiture aspects of the case.
The enforcement action announced today is one of many efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). 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.
Friday, July 12, 2013
ATTORNEY GENERAL ERIC HOLDER'S STATEMENT ON ENFORCEMENT MATTERS INVOLVING JOURNALISTS
FROM: U.S. DEPARTMENT OF JUSTICE ATTORNEY
Friday, July 12, 2013
Statement of Attorney General Eric Holder on the Justice Department Report on Revised Media Guidelines
After conducting a rigorous review of internal Justice Department guidelines governing investigations and other law enforcement matters that involve journalists, Attorney General Eric Holder today released a report outlining several key reforms to the department’s protocols, as well as the following statement:
“The Department of Justice is firmly committed to ensuring our nation’s security, and protecting the American people, while at the same time safeguarding the freedom of the press. These revised guidelines will help ensure the proper balance is struck when pursuing investigations into unauthorized disclosures. While these reforms will make a meaningful difference, there are additional protections that only Congress can provide. For that reason, we continue to support the passage of media shield legislation. I look forward to working with leaders from both parties to achieve this goal, and am grateful to all of the journalists, free speech advocates, experts, and Administration leaders who have come together in recent weeks – in good faith, and with mutual respect – to guide and inform the changes we announce today.”
During the review, Attorney General Holder personally held seven meetings with approximately 30 news media organizations as well as with First Amendment groups, media industry associations and academic experts.
A copy of the full Justice Department report may be obtained at U.S. Department of Justice website.
Friday, July 12, 2013
Statement of Attorney General Eric Holder on the Justice Department Report on Revised Media Guidelines
After conducting a rigorous review of internal Justice Department guidelines governing investigations and other law enforcement matters that involve journalists, Attorney General Eric Holder today released a report outlining several key reforms to the department’s protocols, as well as the following statement:
“The Department of Justice is firmly committed to ensuring our nation’s security, and protecting the American people, while at the same time safeguarding the freedom of the press. These revised guidelines will help ensure the proper balance is struck when pursuing investigations into unauthorized disclosures. While these reforms will make a meaningful difference, there are additional protections that only Congress can provide. For that reason, we continue to support the passage of media shield legislation. I look forward to working with leaders from both parties to achieve this goal, and am grateful to all of the journalists, free speech advocates, experts, and Administration leaders who have come together in recent weeks – in good faith, and with mutual respect – to guide and inform the changes we announce today.”
During the review, Attorney General Holder personally held seven meetings with approximately 30 news media organizations as well as with First Amendment groups, media industry associations and academic experts.
A copy of the full Justice Department report may be obtained at U.S. Department of Justice website.
Monday, June 17, 2013
HEALTH-RELATED SCHOOLS TO RECEIVE LETTER REGARDING HEPATITIS B DISCRIMINATION
FROM: U.S. DEPARTMENT OF EDUCATION
Departments of Justice, Education, and Health and Human Services Issue Letter to Health-Related Schools Regarding Hepatitis B Discrimination
June 12, 2013
WASHINGTON – The Department of Justice, the Department of Education, and the Department of Health and Human Services sent a joint letter today to the nation’s medical schools, dental schools, nursing schools, and other health-related schools regarding hepatitis B discrimination.
In the letter, the departments express concern that some health-related schools may be making enrollment decisions based on an incorrect understanding of the hepatitis B virus, resulting in discrimination.
The letter updates schools on the latest recommendations from the Centers for Disease Control and Prevention (CDC) regarding the participation of students with hepatitis B in health-related schools. The letter also emphasizes the importance of CDC’s recommendations, especially as they relate to the schools’ obligation to comply with federal laws prohibiting discrimination on the basis of disability, race, color, and national origin.
Approximately 800,000 to 1.4 million people in the United States have hepatitis B. Asians, Native Hawaiians, and Pacific Islanders make up roughly 4.5 percent of the U.S. population, but represent 50 percent of the persons with hepatitis B in the United States.
The letter cites to a March 2013 settlement agreement that the Justice Department reached with a medical school and a school of osteopathic medicine resolving allegations that the schools violated the Americans with Disabilities Act by excluding previously-accepted applicants with hepatitis B from their programs.
The updated CDC recommendations, based on the most current scientific information, dispel many myths associated with hepatitis B and provide guidance to health-related schools on managing students with the virus. The CDC also notes that since the last update of the recommendations in 1991, there have been no reports of hepatitis B transmission in the United States or other developed countries from medical or dental students to patients. Among other recommendations, the CDC recommends that chronic hepatitis B virus infection, in itself, should not preclude the study or practice of medicine, surgery, dentistry, or allied health professions.
"The Justice Department strongly urges health-related schools to review the CDC’s recommendations and to ensure that their policies and practices comply with federal nondiscrimination laws," said Jocelyn Samuels, Principal Deputy Assistant Attorney General for the Civil Rights Division of the Justice Department. "Applicants and students with hepatitis B should not have to face exclusion on the basis of unfounded fears and stereotypes, and the Justice Department will not tolerate it."
"Both public ealth and civil rights will be promoted when medical schools rely on the most recent scientific information, not overbroad generalizations, in dealing with medical students with hepatitis B," said Seth Galanter, Acting Assistant Secretary for Civil Rights in the Department of Education.
Leon Rodriguez, Director of the Office for Civil Rights in the Department of Health and Human Services, agrees that health-related schools must ensure that they do not deny equal access to individuals based on discrimination, adding: "The CDC recommendations promote public health and safety while also offering guidance on the management of students with hepatitis B. Our agencies place considerable weight on this guidance in our enforcement of Federal civil rights laws."
The Departments of Justice, Education, and Health and Human Services share responsibility for protecting the rights of students and applicants with disabilities, including hose with hepatitis B, in schools of higher education by enforcing titles II and III of the Americans with Disabilities Act and Section 504 of the Rehabilitation Act. These laws prohibit covered postsecondary institutions from discriminating on the basis of disability and from refusing to make reasonable modifications to their policies, practices, or procedures when necessary to avoid discrimination on the basis of disability, unless such modifications would fundamentally alter the nature of the program or the services provided. The Departments of Justice, Education, and Health and Human Services also enforce Title VI of the Civil Rights Act, which prohibits discrimination on the basis of race, color, or national origin in programs and activities receiving federal financial assistance, including those of health-related schools.
Departments of Justice, Education, and Health and Human Services Issue Letter to Health-Related Schools Regarding Hepatitis B Discrimination
June 12, 2013
WASHINGTON – The Department of Justice, the Department of Education, and the Department of Health and Human Services sent a joint letter today to the nation’s medical schools, dental schools, nursing schools, and other health-related schools regarding hepatitis B discrimination.
In the letter, the departments express concern that some health-related schools may be making enrollment decisions based on an incorrect understanding of the hepatitis B virus, resulting in discrimination.
The letter updates schools on the latest recommendations from the Centers for Disease Control and Prevention (CDC) regarding the participation of students with hepatitis B in health-related schools. The letter also emphasizes the importance of CDC’s recommendations, especially as they relate to the schools’ obligation to comply with federal laws prohibiting discrimination on the basis of disability, race, color, and national origin.
Approximately 800,000 to 1.4 million people in the United States have hepatitis B. Asians, Native Hawaiians, and Pacific Islanders make up roughly 4.5 percent of the U.S. population, but represent 50 percent of the persons with hepatitis B in the United States.
The letter cites to a March 2013 settlement agreement that the Justice Department reached with a medical school and a school of osteopathic medicine resolving allegations that the schools violated the Americans with Disabilities Act by excluding previously-accepted applicants with hepatitis B from their programs.
The updated CDC recommendations, based on the most current scientific information, dispel many myths associated with hepatitis B and provide guidance to health-related schools on managing students with the virus. The CDC also notes that since the last update of the recommendations in 1991, there have been no reports of hepatitis B transmission in the United States or other developed countries from medical or dental students to patients. Among other recommendations, the CDC recommends that chronic hepatitis B virus infection, in itself, should not preclude the study or practice of medicine, surgery, dentistry, or allied health professions.
"The Justice Department strongly urges health-related schools to review the CDC’s recommendations and to ensure that their policies and practices comply with federal nondiscrimination laws," said Jocelyn Samuels, Principal Deputy Assistant Attorney General for the Civil Rights Division of the Justice Department. "Applicants and students with hepatitis B should not have to face exclusion on the basis of unfounded fears and stereotypes, and the Justice Department will not tolerate it."
"Both public ealth and civil rights will be promoted when medical schools rely on the most recent scientific information, not overbroad generalizations, in dealing with medical students with hepatitis B," said Seth Galanter, Acting Assistant Secretary for Civil Rights in the Department of Education.
Leon Rodriguez, Director of the Office for Civil Rights in the Department of Health and Human Services, agrees that health-related schools must ensure that they do not deny equal access to individuals based on discrimination, adding: "The CDC recommendations promote public health and safety while also offering guidance on the management of students with hepatitis B. Our agencies place considerable weight on this guidance in our enforcement of Federal civil rights laws."
The Departments of Justice, Education, and Health and Human Services share responsibility for protecting the rights of students and applicants with disabilities, including hose with hepatitis B, in schools of higher education by enforcing titles II and III of the Americans with Disabilities Act and Section 504 of the Rehabilitation Act. These laws prohibit covered postsecondary institutions from discriminating on the basis of disability and from refusing to make reasonable modifications to their policies, practices, or procedures when necessary to avoid discrimination on the basis of disability, unless such modifications would fundamentally alter the nature of the program or the services provided. The Departments of Justice, Education, and Health and Human Services also enforce Title VI of the Civil Rights Act, which prohibits discrimination on the basis of race, color, or national origin in programs and activities receiving federal financial assistance, including those of health-related schools.
Tuesday, April 23, 2013
JUSTICE SUES ANNUITY AND BENEFIT FUND TO ENFORCE EMPLOYMENT RIGHTS OF ARMY RESERVE MEMBER
FROM: U.S. DEPARTMENT OF JUSTICE
Wednesday, April 17, 2013
Justice Department Files Lawsuit in Illinois Against County Employees’ and Officers’ Annuity and Benefit Fund of Cook County and Cook County to Enforce the Employment Rights of Army Reserve Member
The Justice Department announced today the filing of a complaint alleging that the County Employees’ and Officers’ Annuity and Benefit Fund of Cook County and Cook County willfully violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by failing to allow U.S. Army Reserve Member Latoya Hayward to lawfully contribute to her pension for the time she was serving in the armed forces.
According to the complaint, filed in the U.S. District Court for the Northern District of Illinois, in 2008 Hayward began working for John H. Stroger Jr. Hospital, which is owned and operated by Cook County. During her employment with Stroger Hospital, Hayward was mobilized for a two year tour of duty with the Army Reserves starting on July 27, 2009. During Hayward’s period of active service, she served as a nurse case manager at Walter Reed Hospital as part of the Warrior Transition Brigade. As alleged in the complaint, upon Hayward’s return from duty, the County Employees’ and Officers’ Annuity and Benefit Fund of Cook County notified her not only that she was ineligible to make payments into her pension for the 90-day grace period following her active military service, but also that her employee contributions for the two-year period of her active military service would be subject to a 3 percent interest fee. Among the protections provided by USERRA are pension-related provisions that treat a servicemember who is called to active duty as if she has had no break in service for purpose of the administration of pension benefits. According to Hayward’s complaint, both of the County Employees’ and Officers’ Annuity and Benefit Fund of Cook County’s requirements for her participation in her employer’s pension plan violated USERRA’s pension protection provisions.
"Congress enacted USERRA to protect our men and women in uniform from experiencing this kind of injustice," said Jocelyn Samuels, Principal Deputy Assistant Attorney General for the Civil Rights Division. "The Justice Department is committed to vigorously enforcing federal laws that protect the employment rights of our service members."
"Members of the Army Reserves sacrifice time away from their jobs to serve their country," said Gary S. Shapiro, U.S. Attorney for the Northern District of Illinois. "USERRA ensures that they are not discriminated against after they have returned and that their employment rights are protected."
The case stems from a referral by the U.S. Department of Labor following an investigation by the Department of Labor’s Veterans’ Employment and Training Service. This case is being handled by the Civil Rights Division and the U.S. Attorney’s Office for the Northern District of Illinois, who work collaboratively with the Department of Labor to protect the jobs and benefits of National Guard and Reserve service members upon their return to civilian life.
Wednesday, April 17, 2013
Justice Department Files Lawsuit in Illinois Against County Employees’ and Officers’ Annuity and Benefit Fund of Cook County and Cook County to Enforce the Employment Rights of Army Reserve Member
The Justice Department announced today the filing of a complaint alleging that the County Employees’ and Officers’ Annuity and Benefit Fund of Cook County and Cook County willfully violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by failing to allow U.S. Army Reserve Member Latoya Hayward to lawfully contribute to her pension for the time she was serving in the armed forces.
According to the complaint, filed in the U.S. District Court for the Northern District of Illinois, in 2008 Hayward began working for John H. Stroger Jr. Hospital, which is owned and operated by Cook County. During her employment with Stroger Hospital, Hayward was mobilized for a two year tour of duty with the Army Reserves starting on July 27, 2009. During Hayward’s period of active service, she served as a nurse case manager at Walter Reed Hospital as part of the Warrior Transition Brigade. As alleged in the complaint, upon Hayward’s return from duty, the County Employees’ and Officers’ Annuity and Benefit Fund of Cook County notified her not only that she was ineligible to make payments into her pension for the 90-day grace period following her active military service, but also that her employee contributions for the two-year period of her active military service would be subject to a 3 percent interest fee. Among the protections provided by USERRA are pension-related provisions that treat a servicemember who is called to active duty as if she has had no break in service for purpose of the administration of pension benefits. According to Hayward’s complaint, both of the County Employees’ and Officers’ Annuity and Benefit Fund of Cook County’s requirements for her participation in her employer’s pension plan violated USERRA’s pension protection provisions.
"Congress enacted USERRA to protect our men and women in uniform from experiencing this kind of injustice," said Jocelyn Samuels, Principal Deputy Assistant Attorney General for the Civil Rights Division. "The Justice Department is committed to vigorously enforcing federal laws that protect the employment rights of our service members."
"Members of the Army Reserves sacrifice time away from their jobs to serve their country," said Gary S. Shapiro, U.S. Attorney for the Northern District of Illinois. "USERRA ensures that they are not discriminated against after they have returned and that their employment rights are protected."
The case stems from a referral by the U.S. Department of Labor following an investigation by the Department of Labor’s Veterans’ Employment and Training Service. This case is being handled by the Civil Rights Division and the U.S. Attorney’s Office for the Northern District of Illinois, who work collaboratively with the Department of Labor to protect the jobs and benefits of National Guard and Reserve service members upon their return to civilian life.
Sunday, December 11, 2011
MANAGER OF ASSITED LIVING FACILITY PLEADS GUILTY TO KICKBACKS
The following excerpt is from the Department of Justice website:
Thursday, November 17, 2011
Fort Lauderdale, Fla.-Area Assisted Living Facility Manager Pleads Guilty to Fraud and Kickback Scheme
WASHINGTON – The manager of a Fort Lauderdale, Fla.-area assisted living facility and owner of a purported community mental health center pleaded guilty yesterday for his role in a Medicare fraud kickback scheme that funneled patients through a fraudulent mental health company, American Therapeutic Corporation (ATC), announced the Department of Justice, FBI and Department of Health and Human Services (HHS).
Ramchand Ramrup, aka Ramy Ramrup, 35, pleaded guilty before U.S. District Judge Marcia G. Cooke in Miami to one count of conspiracy to commit health care fraud. Ramrup was the manager and operator of Boynton Beach Assisted Living Facility (BBALF) and the owner of a purported community mental health center called Florida Behavioral Specialists Inc.
Ramrup admitted that in exchange for illegal health care kickbacks, he agreed to provide Medicare beneficiaries who resided at BBALF to ATC for intensive mental health treatment called partial hospitalization program (PHP) services. ATC purported to operate PHPs in seven different locations throughout south Florida and Orlando. According to court documents, Ramrup was paid approximately $40 per Medicare beneficiary per day the beneficiary attended ATC for purported PHP treatment. ATC paid the kickbacks by check made out to Florida Behavioral Specialists Inc.
According to court documents, Ramrup knew that ATC would fraudulently bill Medicare for the PHP treatment that his referrals would purportedly receive at ATC. Ramrup admitted that he did not refer beneficiaries to ATC because a physician had ordered PHP treatment. He referred beneficiaries to ATC because, among other things, he would receive kickbacks, his referrals were covered by Medicare and they were willing to attend ATC.
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 its related company, the American Sleep Institute (ASI). In some cases, the patients received a portion of those kickbacks. Throughout the course of the ATC conspiracy, millions of dollars in kickbacks were paid in exchange for Medicare beneficiaries who did not qualify for PHP services. The ineligible beneficiaries attended treatment programs that were not legitimate so that ATC and ASI could bill Medicare more than $200 million in medically unnecessary services.
According to the plea agreement, Ramrup’s participation in the fraud resulted in more than $873,200 in fraudulent billing to the Medicare program. At sentencing, scheduled for Feb. 8, 2012, Ramrup faces a maximum of 10 years in prison and a $250,000 fine.
ATC, its management company Medlink Professional Management Group Inc., 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 nine 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.
The 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 case is being prosecuted by Trial Attorneys Steven Kim and Jennifer L. Saulino 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 Southern District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force operations in nine locations have charged more than 1,140 defendants that collectively have billed the Medicare program for more than $2.9 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.”
Thursday, November 17, 2011
Fort Lauderdale, Fla.-Area Assisted Living Facility Manager Pleads Guilty to Fraud and Kickback Scheme
WASHINGTON – The manager of a Fort Lauderdale, Fla.-area assisted living facility and owner of a purported community mental health center pleaded guilty yesterday for his role in a Medicare fraud kickback scheme that funneled patients through a fraudulent mental health company, American Therapeutic Corporation (ATC), announced the Department of Justice, FBI and Department of Health and Human Services (HHS).
Ramchand Ramrup, aka Ramy Ramrup, 35, pleaded guilty before U.S. District Judge Marcia G. Cooke in Miami to one count of conspiracy to commit health care fraud. Ramrup was the manager and operator of Boynton Beach Assisted Living Facility (BBALF) and the owner of a purported community mental health center called Florida Behavioral Specialists Inc.
Ramrup admitted that in exchange for illegal health care kickbacks, he agreed to provide Medicare beneficiaries who resided at BBALF to ATC for intensive mental health treatment called partial hospitalization program (PHP) services. ATC purported to operate PHPs in seven different locations throughout south Florida and Orlando. According to court documents, Ramrup was paid approximately $40 per Medicare beneficiary per day the beneficiary attended ATC for purported PHP treatment. ATC paid the kickbacks by check made out to Florida Behavioral Specialists Inc.
According to court documents, Ramrup knew that ATC would fraudulently bill Medicare for the PHP treatment that his referrals would purportedly receive at ATC. Ramrup admitted that he did not refer beneficiaries to ATC because a physician had ordered PHP treatment. He referred beneficiaries to ATC because, among other things, he would receive kickbacks, his referrals were covered by Medicare and they were willing to attend ATC.
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 its related company, the American Sleep Institute (ASI). In some cases, the patients received a portion of those kickbacks. Throughout the course of the ATC conspiracy, millions of dollars in kickbacks were paid in exchange for Medicare beneficiaries who did not qualify for PHP services. The ineligible beneficiaries attended treatment programs that were not legitimate so that ATC and ASI could bill Medicare more than $200 million in medically unnecessary services.
According to the plea agreement, Ramrup’s participation in the fraud resulted in more than $873,200 in fraudulent billing to the Medicare program. At sentencing, scheduled for Feb. 8, 2012, Ramrup faces a maximum of 10 years in prison and a $250,000 fine.
ATC, its management company Medlink Professional Management Group Inc., 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 nine 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.
The 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 case is being prosecuted by Trial Attorneys Steven Kim and Jennifer L. Saulino 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 Southern District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force operations in nine locations have charged more than 1,140 defendants that collectively have billed the Medicare program for more than $2.9 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.”
Thursday, August 18, 2011
DOJ AND ERIE COUNTY HOLDING CENTER MAKE AGREEMENT TO PROTECT PRISONERS
The following is an excerpt from the Department of Justice Website:
"Thursday, August 18, 2011
WASHINGTON – The Justice Department announced today that it has filed a stipulated order of dismissal to resolve its lawsuit concerning conditions of confinement at the Erie County Holding Center (ECHC), a pre-trial detention center in Buffalo, N.Y., and the Erie County Correctional Facility (ECCF), a correctional facility in Alden, N.Y. The lawsuit, which the department filed on Sept. 30, 2009, in federal court in the Western District of New York, alleged that conditions at the facilities routinely and systemically deprive prisoners of constitutional rights through inadequate medical and mental health care, failures to protect prisoners from harm, and deficiencies in environmental health and safety.
“As the Supreme Court confirmed over 35 years ago, ‘There is no iron curtain drawn between the Constitution and the prisons of this country,’” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “The relief that we have obtained through this agreement will ensure that prisoners in Erie County are no longer denied the basic constitutional rights that humanity affords to them. This agreement follows on the heels of last year’s settlement on suicide prevention to reverse the tide of years of neglect and harm at the Erie County facilities.”
“This is a historic agreement. As a result of the government’s lawsuit, the county of Erie will be making broad and significant changes that will ensure the prisoners at ECHC and ECCF will be afforded their rights under the Constitution, such as comprehensive mental health care and medical care and protection from harm,” said William J. Hochul, Jr., U.S. Attorney for the Western District of New York.
On June 22, 2010, the department resolved a portion of its lawsuit against Erie County regarding suicide prevention and related mental health care following a series of suicides that occurred after the United States filed suit. However, individuals with mental illness continued to suffer as a result of lack of appropriate treatment in ECHC and ECCF, and were also subjected to excessive uses of force by staff. The stipulated order entered by the court today requires Erie County to implement a comprehensive mental health program for its prisoners, including:
Screening and assessment of individuals by qualified mental health professionals within designated time periods;
Referral of individuals with mental health issues for treatment within designated time periods on an emergent, urgent or routine basis;
Provision of clinically appropriate mental health treatment at outpatient, residential and crisis levels of care; and
Implementation of medication administration policies to ensure that psychotropic medications are prescribed and delivered in a timely and clinically appropriate manner.
In order to implement this comprehensive mental health treatment program, Erie County has increased the number of mental health staff at its facilities. This stipulated order, coupled with the June 2010, stipulated settlement agreement, will afford individuals held at ECHC and ECCF with appropriate mental health care.
Erie County also has agreed to enhance its provision of medical care at the facilities, including maintaining complete and unified medical and mental health records at the location where each prisoner is actually housed, in order to ensure continuity of treatment and care. Erie County will also establish quality assurance reviews for its medical and mental health treatment programs to analyze and correct trends that present risk of harm to prisoners.
The stipulated order also includes comprehensive provisions aimed at addressing sexual abuse at ECHC and ECCF by changing the way the county investigates allegations of sexual abuse by prisoners and staff, including appointing a sexual abuse coordinator within the facilities, offering counseling services for victims of sexual abuse, and increasing training and awareness on prison rape and sexual violence. Additionally, the stipulated order includes provisions to ensure proper investigation of allegations of violence and excessive force.
Independent consultants will monitor compliance with the medical and mental health provisions of the stipulated order and the previously ordered suicide prevention settlement. The c ourt will retain the ability to enforce the terms of both settlements."
"Thursday, August 18, 2011
WASHINGTON – The Justice Department announced today that it has filed a stipulated order of dismissal to resolve its lawsuit concerning conditions of confinement at the Erie County Holding Center (ECHC), a pre-trial detention center in Buffalo, N.Y., and the Erie County Correctional Facility (ECCF), a correctional facility in Alden, N.Y. The lawsuit, which the department filed on Sept. 30, 2009, in federal court in the Western District of New York, alleged that conditions at the facilities routinely and systemically deprive prisoners of constitutional rights through inadequate medical and mental health care, failures to protect prisoners from harm, and deficiencies in environmental health and safety.
“As the Supreme Court confirmed over 35 years ago, ‘There is no iron curtain drawn between the Constitution and the prisons of this country,’” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “The relief that we have obtained through this agreement will ensure that prisoners in Erie County are no longer denied the basic constitutional rights that humanity affords to them. This agreement follows on the heels of last year’s settlement on suicide prevention to reverse the tide of years of neglect and harm at the Erie County facilities.”
“This is a historic agreement. As a result of the government’s lawsuit, the county of Erie will be making broad and significant changes that will ensure the prisoners at ECHC and ECCF will be afforded their rights under the Constitution, such as comprehensive mental health care and medical care and protection from harm,” said William J. Hochul, Jr., U.S. Attorney for the Western District of New York.
On June 22, 2010, the department resolved a portion of its lawsuit against Erie County regarding suicide prevention and related mental health care following a series of suicides that occurred after the United States filed suit. However, individuals with mental illness continued to suffer as a result of lack of appropriate treatment in ECHC and ECCF, and were also subjected to excessive uses of force by staff. The stipulated order entered by the court today requires Erie County to implement a comprehensive mental health program for its prisoners, including:
Screening and assessment of individuals by qualified mental health professionals within designated time periods;
Referral of individuals with mental health issues for treatment within designated time periods on an emergent, urgent or routine basis;
Provision of clinically appropriate mental health treatment at outpatient, residential and crisis levels of care; and
Implementation of medication administration policies to ensure that psychotropic medications are prescribed and delivered in a timely and clinically appropriate manner.
In order to implement this comprehensive mental health treatment program, Erie County has increased the number of mental health staff at its facilities. This stipulated order, coupled with the June 2010, stipulated settlement agreement, will afford individuals held at ECHC and ECCF with appropriate mental health care.
Erie County also has agreed to enhance its provision of medical care at the facilities, including maintaining complete and unified medical and mental health records at the location where each prisoner is actually housed, in order to ensure continuity of treatment and care. Erie County will also establish quality assurance reviews for its medical and mental health treatment programs to analyze and correct trends that present risk of harm to prisoners.
The stipulated order also includes comprehensive provisions aimed at addressing sexual abuse at ECHC and ECCF by changing the way the county investigates allegations of sexual abuse by prisoners and staff, including appointing a sexual abuse coordinator within the facilities, offering counseling services for victims of sexual abuse, and increasing training and awareness on prison rape and sexual violence. Additionally, the stipulated order includes provisions to ensure proper investigation of allegations of violence and excessive force.
Independent consultants will monitor compliance with the medical and mental health provisions of the stipulated order and the previously ordered suicide prevention settlement. The c ourt will retain the ability to enforce the terms of both settlements."
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