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Wednesday, December 5, 2012
CIVIL RIGHTS AND NATIVE AMERICANS
FROM: U.S. DEPARTMENT OF JUSTICE
Honoring the Civil Rights of Native Americans
December 3rd, 2012 Posted by Tracy Russo
The following post appears courtesy of the Civil Rights Division.
Last week the Department of Justice formally recognized Native American Heritage Month with a program based on this year’s theme "Serving Our People, Serving Our Nation: Native Visions for Future Generations." As this month of special recognition of American Indian and Alaska Native peoples comes to a close, it is important to remember that the best way we can honor the contributions of tribal communities is through ongoing collaboration and effective enforcement of the civil rights of Native Americans throughout the country. The department’s work in this area is a year-round effort, with the active engagement of the Civil Rights Division’s Indian Working Group.
For too long, Native Americans have experienced discrimination and injustice, and the federal government can and must stop such discrimination. The Indian Working Group, with representatives from every section of the division, is a critical tool in that work. This collaborative effort elevates enforcement, outreach, and educational opportunities concerning Native American issues within the division, within the department, and throughout the country.
The Indian Working Group is just one tool within the Civil Rights Division when it comes to reducing crime and advancing public safety in Native American communities and the Division continues to increase the number of cases affecting Native Americans.
The department confronts daily challenges to the civil rights of Native Americans, including vicious assaults born of hatred, and threats used to drive Native Americans out of their homes. In parts of Indian country, rates of violent crime are two times, four times, even ten times what they are in other communities. One in three Indian women reports having been raped. This is profoundly disturbing, and completely unacceptable.
A core part of safe communities is an effective, accountable police department that reduces crime, ensures respect for the Constitution, and earns the trust of the public it is charged with protecting. This summer, the department reached a comprehensive agreement with the City of Seattle regarding the Seattle Police Department’s use of excessive force and concerns about discriminatory policing. Seattle must create a Community Police Commission and invite Native American community input on the Seattle Police Department’s training requirements and policies.
The Civil Rights Division’s first case under the 2009 Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act was in New Mexico, where the department successfully prosecuted a group of men who assaulted a 22-year-old Navajo man with a developmental disability and defaced his body with white supremacist and anti-Native American symbols.
The division enforces laws that protect the freedom to practice one’s religion, free from discrimination or persecution while incarcerated. In September, the District Court in South Dakota agreed with us that Native American inmates must be permitted to use tobacco in religious ceremonies in prison, without second-guessing whether tobacco is traditional to Native American religious practices.
In 2010, when minorities were hit particularly hard by the housing crisis, we created a Fair Lending Unit to address credit discrimination. Particularly in communities where unemployment rates were already high, as with many Native American communities, it is critical that we remain vigilant in enforcing fair housing and fair lending laws to ensure they do not suffer even further.
Using our authority under Title VI of the Civil Rights Act of 1964, we work to ensure state courts and other federally funded programs are free of discrimination and accessible to everyone, regardless of language – including Native Americans.
Finally, the division continues to enforce and defend the laws that enable access to the paramount expression of our democracy – the equal right to vote. The division enforces federal voting laws that protect Native Americans from discrimination based on race or membership in a language minority group. We have been active in enforcing and defending voting laws in Arizona, Montana, New Mexico, South Dakota, Utah, and Alaska.
We do this work, not only because it is our legal responsibility as a government, but because it is our moral responsibility as members of a broader community. We have the rule of law and the will of the federal government behind us and we will continue to protect the civil rights of American Indians and Alaska Natives.
Honoring the Civil Rights of Native Americans
December 3rd, 2012 Posted by Tracy Russo
The following post appears courtesy of the Civil Rights Division.
Last week the Department of Justice formally recognized Native American Heritage Month with a program based on this year’s theme "Serving Our People, Serving Our Nation: Native Visions for Future Generations." As this month of special recognition of American Indian and Alaska Native peoples comes to a close, it is important to remember that the best way we can honor the contributions of tribal communities is through ongoing collaboration and effective enforcement of the civil rights of Native Americans throughout the country. The department’s work in this area is a year-round effort, with the active engagement of the Civil Rights Division’s Indian Working Group.
For too long, Native Americans have experienced discrimination and injustice, and the federal government can and must stop such discrimination. The Indian Working Group, with representatives from every section of the division, is a critical tool in that work. This collaborative effort elevates enforcement, outreach, and educational opportunities concerning Native American issues within the division, within the department, and throughout the country.
The Indian Working Group is just one tool within the Civil Rights Division when it comes to reducing crime and advancing public safety in Native American communities and the Division continues to increase the number of cases affecting Native Americans.
The department confronts daily challenges to the civil rights of Native Americans, including vicious assaults born of hatred, and threats used to drive Native Americans out of their homes. In parts of Indian country, rates of violent crime are two times, four times, even ten times what they are in other communities. One in three Indian women reports having been raped. This is profoundly disturbing, and completely unacceptable.
A core part of safe communities is an effective, accountable police department that reduces crime, ensures respect for the Constitution, and earns the trust of the public it is charged with protecting. This summer, the department reached a comprehensive agreement with the City of Seattle regarding the Seattle Police Department’s use of excessive force and concerns about discriminatory policing. Seattle must create a Community Police Commission and invite Native American community input on the Seattle Police Department’s training requirements and policies.
The Civil Rights Division’s first case under the 2009 Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act was in New Mexico, where the department successfully prosecuted a group of men who assaulted a 22-year-old Navajo man with a developmental disability and defaced his body with white supremacist and anti-Native American symbols.
The division enforces laws that protect the freedom to practice one’s religion, free from discrimination or persecution while incarcerated. In September, the District Court in South Dakota agreed with us that Native American inmates must be permitted to use tobacco in religious ceremonies in prison, without second-guessing whether tobacco is traditional to Native American religious practices.
In 2010, when minorities were hit particularly hard by the housing crisis, we created a Fair Lending Unit to address credit discrimination. Particularly in communities where unemployment rates were already high, as with many Native American communities, it is critical that we remain vigilant in enforcing fair housing and fair lending laws to ensure they do not suffer even further.
Using our authority under Title VI of the Civil Rights Act of 1964, we work to ensure state courts and other federally funded programs are free of discrimination and accessible to everyone, regardless of language – including Native Americans.
Finally, the division continues to enforce and defend the laws that enable access to the paramount expression of our democracy – the equal right to vote. The division enforces federal voting laws that protect Native Americans from discrimination based on race or membership in a language minority group. We have been active in enforcing and defending voting laws in Arizona, Montana, New Mexico, South Dakota, Utah, and Alaska.
We do this work, not only because it is our legal responsibility as a government, but because it is our moral responsibility as members of a broader community. We have the rule of law and the will of the federal government behind us and we will continue to protect the civil rights of American Indians and Alaska Natives.
Tuesday, December 4, 2012
HUNGARIAN WOMAN PLEADS GUILTY IN INTERNATIONAL ONLINE MARKET SCHEME
FROM: U.S. DEPARTMENT OF JUSTICE
Wednesday, November 21, 2012
Hungarian Woman Pleads Guilty in Tennessee for Role in International Fraud Scheme Involving Online Marketplace Websites
WASHINGTON – A Hungarian woman pleaded guilty in Nashville, Tenn., for her role in moving approximately $550,000 in illicit proceeds derived from an international online marketplace fraud scheme, announced Assistant Attorney General Lanny Breuer of the Justice Department’s Criminal Division and U.S. Attorney Jerry E. Martin for the Middle District of Tennessee.
Beatrix Boka, 34, of Hungary, pleaded guilty today before U.S. District Judge Aleta A. Trauger in the Middle District of Tennessee to one count of conspiracy to commit bank and wire fraud. Boka and co-conspirator Aleksandar Kunkin, also of Hungary, were charged in a one-count indictment by a federal grand jury in August 2012. Kunkin pleaded guilty on Nov. 15, 2012.
Boka admitted in her plea hearing today that members of the conspiracy fraudulently listed vehicles for sale at online marketplaces such as eBay. When victims expressed interest in purchasing the vehicles, co-conspirators sent emails that directed victims to wire payments to certain bank accounts, and victims never received the vehicles for which they paid.
Boka further admitted that, from May to June 2012, she and Kunkin visited Bank of America branches in North Carolina and South Carolina and opened bank accounts under false identities, which were supported by fraudulent identity documents including counterfeit Hungarian passports. Boka pleaded guilty to opening 17 such accounts, each under a different name. In total, 36 victims sent approximately $550,102 to accounts opened by Boka and Kunkin. Boka admitted that she and Kunkin subsequently sent the bulk of the money to co-conspirators located abroad.
According to the criminal complaint affidavit, in June 2012, Boka and Kunkin traveled together to Madison, Tenn., where Kunkin was apprehended as he attempted to open an account at a Bank of America branch using a Hungarian passport bearing an alias. Boka was subsequently apprehended in Kennesaw, Ga., when she attempted to open an account at a Bank of America branch using a Hungarian passport bearing an alias.
Boka faces a maximum sentence of five years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 21, 2013.
The case is being prosecuted by Assistant U.S. Attorney Byron M. Jones of the Middle District of Tennessee and Trial Attorney Mysti Degani of the Criminal Division’s Computer Crime and Intellectual Property Section. The case is being investigated by the FBI, the Tennessee Bureau of Investigation, the Metropolitan Nashville Police Department, and the Cobb County, Ga., Sheriff’s Department.
Wednesday, November 21, 2012
Hungarian Woman Pleads Guilty in Tennessee for Role in International Fraud Scheme Involving Online Marketplace Websites
WASHINGTON – A Hungarian woman pleaded guilty in Nashville, Tenn., for her role in moving approximately $550,000 in illicit proceeds derived from an international online marketplace fraud scheme, announced Assistant Attorney General Lanny Breuer of the Justice Department’s Criminal Division and U.S. Attorney Jerry E. Martin for the Middle District of Tennessee.
Beatrix Boka, 34, of Hungary, pleaded guilty today before U.S. District Judge Aleta A. Trauger in the Middle District of Tennessee to one count of conspiracy to commit bank and wire fraud. Boka and co-conspirator Aleksandar Kunkin, also of Hungary, were charged in a one-count indictment by a federal grand jury in August 2012. Kunkin pleaded guilty on Nov. 15, 2012.
Boka admitted in her plea hearing today that members of the conspiracy fraudulently listed vehicles for sale at online marketplaces such as eBay. When victims expressed interest in purchasing the vehicles, co-conspirators sent emails that directed victims to wire payments to certain bank accounts, and victims never received the vehicles for which they paid.
Boka further admitted that, from May to June 2012, she and Kunkin visited Bank of America branches in North Carolina and South Carolina and opened bank accounts under false identities, which were supported by fraudulent identity documents including counterfeit Hungarian passports. Boka pleaded guilty to opening 17 such accounts, each under a different name. In total, 36 victims sent approximately $550,102 to accounts opened by Boka and Kunkin. Boka admitted that she and Kunkin subsequently sent the bulk of the money to co-conspirators located abroad.
According to the criminal complaint affidavit, in June 2012, Boka and Kunkin traveled together to Madison, Tenn., where Kunkin was apprehended as he attempted to open an account at a Bank of America branch using a Hungarian passport bearing an alias. Boka was subsequently apprehended in Kennesaw, Ga., when she attempted to open an account at a Bank of America branch using a Hungarian passport bearing an alias.
Boka faces a maximum sentence of five years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 21, 2013.
The case is being prosecuted by Assistant U.S. Attorney Byron M. Jones of the Middle District of Tennessee and Trial Attorney Mysti Degani of the Criminal Division’s Computer Crime and Intellectual Property Section. The case is being investigated by the FBI, the Tennessee Bureau of Investigation, the Metropolitan Nashville Police Department, and the Cobb County, Ga., Sheriff’s Department.
Monday, December 3, 2012
EPA, JUSTICE DEPARTMENT AND LOUISIANA GENERATING REACH A SETTLEMENT REGARDING BIG CAJUN II EMISIONS CASE
FROM: U.S. ENVIRONMENTAL PROTETION AGENCY
Louisiana Generating to Install Pollution Controls and Pay $14 Million In Penalties and Projects to Resolve Clean Air Act Violations
Marks 24th settlement under United States’ power plant enforcement initiative and largest clean air act settlement in Louisiana history
WASHINGTON – The U.S. Environmental Protection Agency (EPA) and the Department of Justice announced today that Louisiana Generating, an electric generating company owned by NRG Energy, Inc., agreed to a settlement at its Big Cajun II coal-fired power plant in New Roads, Louisiana, which will result in the elimination of over 27,300 tons of harmful emissions per year. The settlement, lodged in federal court today in Baton Rouge, will require Louisiana Generating to spend approximately $250 million to reduce air pollution and also requires the company to pay a civil fine of $3.5 million and spend $10.5 million on environmental mitigation projects.
Louisiana Generating will achieve these reductions through a combination of new pollution controls, natural gas conversion, and annual emission caps at all three units at the Big Cajun II plant. Emissions of sulfur dioxide will be reduced by approximately 20,000 tons and nitrogen oxides by about 3,300 tons. Louisiana Generating will spend an estimated $250 million in capital costs to comply with the consent decree through the end of 2015. Louisiana Generating also has agreed to further air pollution reductions by 2025, which will reduce SO2 by at least an additional 4,000 tons each year.
The State of Louisiana joined in the settlement and will receive $1.75 million, one-half of the $3.5 million civil penalty.
"This settlement continues our important enforcement initiative to reduce harmful illegal air pollution from the largest sources of emissions," said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. "Pollution from these sources can cause severe respiratory and cardiovascular impacts, and EPA is committed to making sure that they all comply with the law."
"The Big Cajun II Power Plant is the largest source of illegal air pollution in Louisiana. This settlement will secure substantial reductions in harmful emissions from the plant which will have a beneficial impact on air quality for residents of Louisiana and downwind states, including low-income communities who have been historically overburdened with pollution," said Ignacia S. Moreno, assistant attorney general for the Justice Department’s Environment and Natural Resources Division. "Louisiana Generating will install modern air pollution controls that will significantly reduce harmful emissions and also will perform environmental projects that will conserve energy."
Louisiana Generating will spend $10.5 million on environmental mitigation projects that will further reduce emissions and benefit communities adversely affected by pollution from the Big Cajun II plant as follows:
- Install solar photovoltaic panels at local schools, government-owned facilities, or buildings owned by nonprofit groups;
- Restore and protect land, watersheds, vegetation, and forests;
- Fund creation of one or more charging stations for electric vehicles in the South Louisiana area that are supplied with zero emission renewable energy sources;
- Mitigate nitrogen loading in the False River, which will have the co-benefit of reducing phosphorus loading and preventing harmful algal blooms;
- Conduct energy efficiency projects, which could include voltage optimization, residential energy efficiency, and assistance with commercial or industrial energy efficiency improvements; and
- Pay $1.5 million to the State of Louisiana to implement projects which could include the following: retrofitting vehicles with pollution controls, truck stop electrification, purchase and installation of photo-voltaic cells on buildings, building energy conservation and efficiency, buyback programs for dirty old motors, and removal or replacement of oil-fired home heaters with ultra-low sulphur oil and outdoor wood-fired boilers.
Louisiana Generating to Install Pollution Controls and Pay $14 Million In Penalties and Projects to Resolve Clean Air Act Violations
Marks 24th settlement under United States’ power plant enforcement initiative and largest clean air act settlement in Louisiana history
WASHINGTON – The U.S. Environmental Protection Agency (EPA) and the Department of Justice announced today that Louisiana Generating, an electric generating company owned by NRG Energy, Inc., agreed to a settlement at its Big Cajun II coal-fired power plant in New Roads, Louisiana, which will result in the elimination of over 27,300 tons of harmful emissions per year. The settlement, lodged in federal court today in Baton Rouge, will require Louisiana Generating to spend approximately $250 million to reduce air pollution and also requires the company to pay a civil fine of $3.5 million and spend $10.5 million on environmental mitigation projects.
Louisiana Generating will achieve these reductions through a combination of new pollution controls, natural gas conversion, and annual emission caps at all three units at the Big Cajun II plant. Emissions of sulfur dioxide will be reduced by approximately 20,000 tons and nitrogen oxides by about 3,300 tons. Louisiana Generating will spend an estimated $250 million in capital costs to comply with the consent decree through the end of 2015. Louisiana Generating also has agreed to further air pollution reductions by 2025, which will reduce SO2 by at least an additional 4,000 tons each year.
The State of Louisiana joined in the settlement and will receive $1.75 million, one-half of the $3.5 million civil penalty.
"This settlement continues our important enforcement initiative to reduce harmful illegal air pollution from the largest sources of emissions," said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. "Pollution from these sources can cause severe respiratory and cardiovascular impacts, and EPA is committed to making sure that they all comply with the law."
"The Big Cajun II Power Plant is the largest source of illegal air pollution in Louisiana. This settlement will secure substantial reductions in harmful emissions from the plant which will have a beneficial impact on air quality for residents of Louisiana and downwind states, including low-income communities who have been historically overburdened with pollution," said Ignacia S. Moreno, assistant attorney general for the Justice Department’s Environment and Natural Resources Division. "Louisiana Generating will install modern air pollution controls that will significantly reduce harmful emissions and also will perform environmental projects that will conserve energy."
Louisiana Generating will spend $10.5 million on environmental mitigation projects that will further reduce emissions and benefit communities adversely affected by pollution from the Big Cajun II plant as follows:
- Install solar photovoltaic panels at local schools, government-owned facilities, or buildings owned by nonprofit groups;
- Restore and protect land, watersheds, vegetation, and forests;
- Fund creation of one or more charging stations for electric vehicles in the South Louisiana area that are supplied with zero emission renewable energy sources;
- Mitigate nitrogen loading in the False River, which will have the co-benefit of reducing phosphorus loading and preventing harmful algal blooms;
- Conduct energy efficiency projects, which could include voltage optimization, residential energy efficiency, and assistance with commercial or industrial energy efficiency improvements; and
- Pay $1.5 million to the State of Louisiana to implement projects which could include the following: retrofitting vehicles with pollution controls, truck stop electrification, purchase and installation of photo-voltaic cells on buildings, building energy conservation and efficiency, buyback programs for dirty old motors, and removal or replacement of oil-fired home heaters with ultra-low sulphur oil and outdoor wood-fired boilers.
Sunday, December 2, 2012
STATE DEPARTMENT COMMENTS ON JAILED IRANIAN HUMAN RIGHTS ACTIIVIST'S DECLINING HEALTH
FROM: U.S. STATE DEPARTMENT
2012 Sakharov Prize Winner Nasrin Sotoudeh's Hunger Strike
Press Statement
Victoria Nuland
Department Spokesperson, Office of the Spokesperson
Washington, DC
November 30, 2012
We are deeply troubled by reports of the rapidly declining health of jailed Iranian human rights defender and 2012 Sakharov Prize winner Nasrin Sotoudeh. Iranian officials have denied Sotoudeh, a leading women’s rights champion, medical care during her more than six-week hunger strike and have kept her in solitary confinement.
We remain concerned for Sotoudeh’s well-being given Iran’s history of withholding treatment from prisoners and allowing them to die from hunger strikes.
We demand the Iranian Government cease its intolerable mistreatment of Sotoudeh and immediately release her and the more than 30 other female political prisoners detained in Evin Prison.
2012 Sakharov Prize Winner Nasrin Sotoudeh's Hunger Strike
Press Statement
Victoria Nuland
Department Spokesperson, Office of the Spokesperson
Washington, DC
November 30, 2012
We are deeply troubled by reports of the rapidly declining health of jailed Iranian human rights defender and 2012 Sakharov Prize winner Nasrin Sotoudeh. Iranian officials have denied Sotoudeh, a leading women’s rights champion, medical care during her more than six-week hunger strike and have kept her in solitary confinement.
We remain concerned for Sotoudeh’s well-being given Iran’s history of withholding treatment from prisoners and allowing them to die from hunger strikes.
We demand the Iranian Government cease its intolerable mistreatment of Sotoudeh and immediately release her and the more than 30 other female political prisoners detained in Evin Prison.
Saturday, December 1, 2012
REMARKS BY AG HOLDER ON VIOLENCE AGAINST WOMEN RECOMMENDATIONS
FROM: U.S. DEPARTMENT OF JUSTICE
Friday, November 30, 2012
Statement by Attorney General Eric Holder on the Release of the National Advisory Committee on Violence Against Women Recommendations
Attorney General Eric Holder issued the following statement today on the release of the recommendations by the National Advisory Committee on Violence Against Women:
"For the past two years, the National Advisory Committee on Violence Against Women has displayed remarkable leadership and dedication to the cause of ending violence against women. I appreciate the thoughtful recommendations they have submitted in their final report.
"My intention when I re-chartered the advisory committee in March 2010 was to convene leaders in the field to solicit recommendations about how to improve the nation’s response to violence against women, with a specific focus on successful interventions with children and teens who witness or are victimized by domestic violence, dating violence and sexual assault.
"Prevention and successful interventions with children and teens will help break the cycle of violence that afflicts our nation. There is an unmistakable relationship between young people who witness or are victims of violence and the overall public safety of communities across the country.
"Together, I hope we can end this destructive violence and offer safety, security and hope to our children."
Information on the National Advisory Committee can be found at: www.ovw.usdoj.gov/nac.html.
Friday, November 30, 2012
Statement by Attorney General Eric Holder on the Release of the National Advisory Committee on Violence Against Women Recommendations
Attorney General Eric Holder issued the following statement today on the release of the recommendations by the National Advisory Committee on Violence Against Women:
"For the past two years, the National Advisory Committee on Violence Against Women has displayed remarkable leadership and dedication to the cause of ending violence against women. I appreciate the thoughtful recommendations they have submitted in their final report.
"My intention when I re-chartered the advisory committee in March 2010 was to convene leaders in the field to solicit recommendations about how to improve the nation’s response to violence against women, with a specific focus on successful interventions with children and teens who witness or are victimized by domestic violence, dating violence and sexual assault.
"Prevention and successful interventions with children and teens will help break the cycle of violence that afflicts our nation. There is an unmistakable relationship between young people who witness or are victims of violence and the overall public safety of communities across the country.
"Together, I hope we can end this destructive violence and offer safety, security and hope to our children."
Information on the National Advisory Committee can be found at: www.ovw.usdoj.gov/nac.html.
Friday, November 30, 2012
U.S. DOD NOTIFIES SOUTH CAROLINA TROOPS OF POSSIBLE IDENTITY THEFT
FROM: U.S. DEPARTMENT OF DEFENSE
DOD Notifies Troops of South Carolina Cyber Intrusions
By Nick Simeone
American Forces Press Service
ASHINGTON, Nov. 28, 2012 - The Defense Department and South Carolina officials are notifying military members and families who paid state income taxes there that they may have been victims of information/identity theft as a result of several recent cyber intrusions.
South Carolina's Department of Revenue reported nearly four million Social Security numbers and several hundred thousand credit and debit card numbers belonging to current and former taxpayers may have been stolen during cyber intrusions in August and September.
While the vast majority of the personal data is believed to have been protected by encryption, state revenue officials said about 16,000 accounts were not, and that anyone who filed a South Carolina income tax return as far back as 1998 could be affected.
The intrusions were discovered last month, officials said. While South Carolina officials believe their system is now secure, Gov. Nikki Haley said the state is offering one year of free credit monitoring and identity protection to anyone who might have been exposed and applies for it. "The number of records breached requires an unprecedented, large-scale response," she said.
In addition to Social Security numbers and credit card information, defense officials said information usually found on the front of checks may also have been exposed.
DOD personnel and their family members who are current or former South Carolina taxpayers, especially those who are living abroad, are urged to visit www.ProtectMyId.com/SCDOR or contact Experian's national consumer assistance center at 1-866-578-5422 by January 31, 2013, to enroll in identity threat protection.
DOD Notifies Troops of South Carolina Cyber Intrusions
By Nick Simeone
American Forces Press Service
ASHINGTON, Nov. 28, 2012 - The Defense Department and South Carolina officials are notifying military members and families who paid state income taxes there that they may have been victims of information/identity theft as a result of several recent cyber intrusions.
South Carolina's Department of Revenue reported nearly four million Social Security numbers and several hundred thousand credit and debit card numbers belonging to current and former taxpayers may have been stolen during cyber intrusions in August and September.
While the vast majority of the personal data is believed to have been protected by encryption, state revenue officials said about 16,000 accounts were not, and that anyone who filed a South Carolina income tax return as far back as 1998 could be affected.
The intrusions were discovered last month, officials said. While South Carolina officials believe their system is now secure, Gov. Nikki Haley said the state is offering one year of free credit monitoring and identity protection to anyone who might have been exposed and applies for it. "The number of records breached requires an unprecedented, large-scale response," she said.
In addition to Social Security numbers and credit card information, defense officials said information usually found on the front of checks may also have been exposed.
DOD personnel and their family members who are current or former South Carolina taxpayers, especially those who are living abroad, are urged to visit www.ProtectMyId.com/SCDOR or contact Experian's national consumer assistance center at 1-866-578-5422 by January 31, 2013, to enroll in identity threat protection.
Thursday, November 29, 2012
U.S. DEPARTMENT OF LABOR SUES ANIMAL HIDE COMPANY FOR VIOLATIONS OF FAIR LABOR STANDARDS ACT
FROM: U.S. DEPARTMENT OF LABOR
US Labor Department sues Boston Hides & Furs Ltd., seeking at least $1 million in back wages and damages for underpaid, wrongfully fired workers
Chelsea, Mass., business also assessed $100,000 penalty for willful labor violations
BOSTON — Citing "knowing, deliberate and intentional" violations of federal wage and hour law, the U.S. Department of Labor has filed a lawsuit against Boston Hides & Furs Ltd. and company officials seeking at least $500,000 in back wages and an equal amount in liquidated damages for underpaid employees of the Chelsea wholesale animal hide business.
The department filed the lawsuit in federal court following an investigation by its Wage and Hour Division that found the employer committed willful and repeated violations of the minimum wage, overtime and record-keeping provisions of the federal Fair Labor Standards Act, including offering for shipment or sale "hot goods" produced in violation of the law during a period spanning at least three years. The suit also asserts that the company unlawfully retaliated against several workers by firing them after they cooperated with the federal investigation.
"The violations uncovered by this investigation reveal a disturbing disregard for the law," said Secretary of Labor Hilda L. Solis. "Such unacceptable behavior not only harms the workers involved, it also undercuts employers who obey the law."
The investigation found that 14 Boston Hides & Furs employees worked approximately 10 hours per day, six days per week processing hides and furs for shipping to tanneries. These workers were paid a daily cash wage of $50 to $70, which amounted to an hourly pay rate far below the federal minimum wage of $7.25 per hour. The employees also were not paid time and one-half the required state minimum wage of $8 applicable for those hours worked above 40 in a week. Additionally, the defendants failed to keep adequate records of the workers' employment, work hours and pay rates, and a representative of the defendants falsely told investigators that the company's payroll records included all employees.
Further, the defendants ordered employees to hide in a nearby house when Wage and Hour Division investigators first arrived at Boston Hides & Furs so they could not be interviewed. Investigators subsequently interviewed the workers. Two days later, the defendants fired the workers. During their employment, the workers were threatened and subjected to verbally abusive treatment on an ongoing basis, particularly when they asked about their pay rates.
"If you work, you are entitled to be paid the wages you earn — at a rate no less than the applicable minimum wage, with proper overtime pay — and to seek those wages without fear of retaliation or termination. It's that simple and it's the law," said Michael Felsen, the Labor Department's regional solicitor for New England. "If you're an employer, understand that if you cheat your workers on their pay, the U.S. Department of Labor will seek not only the withheld wages but an equal amount in liquidated damages for those workers. And if you fire your workers or otherwise retaliate against them because they cooperated with a Labor Department investigation, we will seek appropriate redress for that violation too."
In addition to back wages and liquidated damages, the department's suit seeks to permanently prohibit the defendants from future FLSA violations — including a prohibition against shipping any goods handled by workers who were paid in violation of the law — and compensatory and punitive damages for the workers on account of their unlawful firing. The Wage and Hour Division also has assessed $100,000 in civil money penalties against Boston Hides & Furs Ltd. for willful violations of the FLSA.
The suit has been filed in the U.S. District Court for the District of Massachusetts by the Labor Department's Regional Office of the Solicitor in Boston. The original investigation was conducted by the Wage and Hour Division's Boston District Office.
The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 per hour as well as time and one-half their regular rates for every hour they work beyond 40 per week. When the state minimum wage is higher than the federally mandated wage, and employees work more than 40 hours in a week, employees paid at the minimum permissible level are entitled to overtime compensation based on the higher state minimum wage.
The law also requires employers to maintain accurate records of employees' wages, hours and other conditions of employment, and prohibits employers from retaliating against employees who exercise their rights under the law. The FLSA provides that employers who violate the law are, as a general rule, liable to employees for back wages and an equal amount in liquidated damages.
US Labor Department sues Boston Hides & Furs Ltd., seeking at least $1 million in back wages and damages for underpaid, wrongfully fired workers
Chelsea, Mass., business also assessed $100,000 penalty for willful labor violations
BOSTON — Citing "knowing, deliberate and intentional" violations of federal wage and hour law, the U.S. Department of Labor has filed a lawsuit against Boston Hides & Furs Ltd. and company officials seeking at least $500,000 in back wages and an equal amount in liquidated damages for underpaid employees of the Chelsea wholesale animal hide business.
The department filed the lawsuit in federal court following an investigation by its Wage and Hour Division that found the employer committed willful and repeated violations of the minimum wage, overtime and record-keeping provisions of the federal Fair Labor Standards Act, including offering for shipment or sale "hot goods" produced in violation of the law during a period spanning at least three years. The suit also asserts that the company unlawfully retaliated against several workers by firing them after they cooperated with the federal investigation.
"The violations uncovered by this investigation reveal a disturbing disregard for the law," said Secretary of Labor Hilda L. Solis. "Such unacceptable behavior not only harms the workers involved, it also undercuts employers who obey the law."
The investigation found that 14 Boston Hides & Furs employees worked approximately 10 hours per day, six days per week processing hides and furs for shipping to tanneries. These workers were paid a daily cash wage of $50 to $70, which amounted to an hourly pay rate far below the federal minimum wage of $7.25 per hour. The employees also were not paid time and one-half the required state minimum wage of $8 applicable for those hours worked above 40 in a week. Additionally, the defendants failed to keep adequate records of the workers' employment, work hours and pay rates, and a representative of the defendants falsely told investigators that the company's payroll records included all employees.
Further, the defendants ordered employees to hide in a nearby house when Wage and Hour Division investigators first arrived at Boston Hides & Furs so they could not be interviewed. Investigators subsequently interviewed the workers. Two days later, the defendants fired the workers. During their employment, the workers were threatened and subjected to verbally abusive treatment on an ongoing basis, particularly when they asked about their pay rates.
"If you work, you are entitled to be paid the wages you earn — at a rate no less than the applicable minimum wage, with proper overtime pay — and to seek those wages without fear of retaliation or termination. It's that simple and it's the law," said Michael Felsen, the Labor Department's regional solicitor for New England. "If you're an employer, understand that if you cheat your workers on their pay, the U.S. Department of Labor will seek not only the withheld wages but an equal amount in liquidated damages for those workers. And if you fire your workers or otherwise retaliate against them because they cooperated with a Labor Department investigation, we will seek appropriate redress for that violation too."
In addition to back wages and liquidated damages, the department's suit seeks to permanently prohibit the defendants from future FLSA violations — including a prohibition against shipping any goods handled by workers who were paid in violation of the law — and compensatory and punitive damages for the workers on account of their unlawful firing. The Wage and Hour Division also has assessed $100,000 in civil money penalties against Boston Hides & Furs Ltd. for willful violations of the FLSA.
The suit has been filed in the U.S. District Court for the District of Massachusetts by the Labor Department's Regional Office of the Solicitor in Boston. The original investigation was conducted by the Wage and Hour Division's Boston District Office.
The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 per hour as well as time and one-half their regular rates for every hour they work beyond 40 per week. When the state minimum wage is higher than the federally mandated wage, and employees work more than 40 hours in a week, employees paid at the minimum permissible level are entitled to overtime compensation based on the higher state minimum wage.
The law also requires employers to maintain accurate records of employees' wages, hours and other conditions of employment, and prohibits employers from retaliating against employees who exercise their rights under the law. The FLSA provides that employers who violate the law are, as a general rule, liable to employees for back wages and an equal amount in liquidated damages.
Wednesday, November 28, 2012
TENTH ANNIVERSARY OF HCOC AGAINST BALLISTIC MISSILE PROLIFERATION
FROM: U.S. STATE DEPARTMENT
Tenth anniversary of the Hague Code of Conduct Against Ballistic Missile Proliferation (HCOC)
Media Note
Office of the Spokesperson
Washington, DC
November 26, 2012
On the occasion of the tenth anniversary of the Hague Code of Conduct Against Ballistic Missile Proliferation (HCOC), the United States recognizes the HCOC as an outstanding example of international cooperation and applauds the Code’s ongoing efforts to promote transparency and confidence building measures in the area of ballistic missiles.
Since it was launched on November 25, 2002, subscription to the HCOC has grown to 134 countries, and the Code has contributed significantly to international ballistic missile nonproliferation through its efforts to delegitimize such proliferation. The United States looks forward to continued close cooperation with all HCOC-Subscribing States to promote ballistic missile nonproliferation – and through it, global security – and encourages all countries that have not yet done so to subscribe to the Code.
Tenth anniversary of the Hague Code of Conduct Against Ballistic Missile Proliferation (HCOC)
Media Note
Office of the Spokesperson
Washington, DC
November 26, 2012
On the occasion of the tenth anniversary of the Hague Code of Conduct Against Ballistic Missile Proliferation (HCOC), the United States recognizes the HCOC as an outstanding example of international cooperation and applauds the Code’s ongoing efforts to promote transparency and confidence building measures in the area of ballistic missiles.
Since it was launched on November 25, 2002, subscription to the HCOC has grown to 134 countries, and the Code has contributed significantly to international ballistic missile nonproliferation through its efforts to delegitimize such proliferation. The United States looks forward to continued close cooperation with all HCOC-Subscribing States to promote ballistic missile nonproliferation – and through it, global security – and encourages all countries that have not yet done so to subscribe to the Code.
Tuesday, November 27, 2012
FORMER POLICE OFFICER SENTENCED FOR PROVIDING PROTECTION DURING A COCAINE SALE
FROM: U.S. DEPARTMENT OF JUSTICE
Friday, November 16, 2012
Former Police of Puerto Rico Officer Sentenced to 181 Months in Prison for Providing Armed Security for Drug Transaction
WASHINGTON – A former Police of Puerto Rico officer was sentenced today to 181 months in prison for her role in providing armed security for a drug transaction, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodriguez-Velez of the District of Puerto Rico, and Special Agent in Charge Joseph S. Campbell of the FBI’s San Juan Field Office.
Yamil Navedo Ramirez, 39, was sentenced today by U.S. District Judge Juan M. Perez-Gimenez in the District of Puerto Rico.
In May 2012, a federal jury in San Juan found Navedo Ramirez guilty of one count of attempting to possess with the intent to distribute more than five kilograms of cocaine and possession of a firearm in furtherance of a drug transaction. The jury acquitted her of one count of conspiracy to possess with the intent to distribute more than five kilograms of cocaine.
According to the evidence presented in court, Navedo Ramirez provided security on April 14, 2010, for what she believed was an illegal cocaine deal. In fact, the purported drug transaction was part of an undercover FBI operation. On that day, Navedo Ramirez provided armed protection for the deal and escorted the buyer in and out of the transaction.
Navedo Ramirez was charged in a superseding indictment unsealed on Oct. 28, 2010, along with 89 law enforcement officers in Puerto Rico and 44 other individuals charged as part of the FBI undercover operation known as Guard Shack.
In return for the security she provided, Navedo Ramirez received a cash payment of $2,000. Judge Perez Gimenez ordered the defendant to forfeit the $2,000 she received in exchange for providing security for the drug transaction.
The case was prosecuted by Trial Attorneys Kevin Driscoll and Monique Abrishami of the Criminal Division’s Public Integrity Section. The case was investigated by the FBI. The U.S. Attorney’s Office for the District of Puerto Rico also participated in the investigation and prosecution of this case.
Friday, November 16, 2012
Former Police of Puerto Rico Officer Sentenced to 181 Months in Prison for Providing Armed Security for Drug Transaction
WASHINGTON – A former Police of Puerto Rico officer was sentenced today to 181 months in prison for her role in providing armed security for a drug transaction, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodriguez-Velez of the District of Puerto Rico, and Special Agent in Charge Joseph S. Campbell of the FBI’s San Juan Field Office.
Yamil Navedo Ramirez, 39, was sentenced today by U.S. District Judge Juan M. Perez-Gimenez in the District of Puerto Rico.
In May 2012, a federal jury in San Juan found Navedo Ramirez guilty of one count of attempting to possess with the intent to distribute more than five kilograms of cocaine and possession of a firearm in furtherance of a drug transaction. The jury acquitted her of one count of conspiracy to possess with the intent to distribute more than five kilograms of cocaine.
According to the evidence presented in court, Navedo Ramirez provided security on April 14, 2010, for what she believed was an illegal cocaine deal. In fact, the purported drug transaction was part of an undercover FBI operation. On that day, Navedo Ramirez provided armed protection for the deal and escorted the buyer in and out of the transaction.
Navedo Ramirez was charged in a superseding indictment unsealed on Oct. 28, 2010, along with 89 law enforcement officers in Puerto Rico and 44 other individuals charged as part of the FBI undercover operation known as Guard Shack.
In return for the security she provided, Navedo Ramirez received a cash payment of $2,000. Judge Perez Gimenez ordered the defendant to forfeit the $2,000 she received in exchange for providing security for the drug transaction.
The case was prosecuted by Trial Attorneys Kevin Driscoll and Monique Abrishami of the Criminal Division’s Public Integrity Section. The case was investigated by the FBI. The U.S. Attorney’s Office for the District of Puerto Rico also participated in the investigation and prosecution of this case.
Monday, November 26, 2012
U.S. JUSTICE DEPARTMENT FILES LAWSUIT AGAINST EBAY INC.
FROM: U.S. DEPARTMENT OF JUSTICE
WASHINGTON — The Department of Justice filed a civil antitrust lawsuit today against eBay Inc., alleging that it violated antitrust laws when it entered into an agreement not to recruit or hire Intuit Inc.’s employees. The department said that the agreement eliminated a significant form of competition to the detriment of affected employees who were likely deprived of access to better job opportunities and salaries.
The department’s Antitrust Division worked closely with the Office of the Attorney General of the State of California, which conducted its own investigation and filed a similar lawsuit today.
The department filed its lawsuit in U.S. District Court in the Northern District of California, in San Jose. The lawsuit seeks to prevent eBay from adhering to or enforcing the agreement and from entering into any similar agreements with any other companies. Intuit is already subject to a settlement prohibiting it from entering into such agreements as part of an earlier case with the department.
The department alleges the agreement, which was enforced at the highest levels of each company, barred either firm from soliciting each other’s employees, and for over a year barred at least eBay from hiring any employees from Intuit at all. In court papers, the department alleges that Meg Whitman, then eBay’s CEO, and Scott Cook, Intuit’s founder and executive committee chair, were intimately involved in forming, monitoring and enforcing the anticompetitive agreement. Cook was serving as a member of eBay’s board of directors at the same time he was making complaints about eBay’s recruiting of Intuit employees.
"eBay’s agreement with Intuit hurt employees by lowering the salaries and benefits they might have received and deprived them of better job opportunities at the other company," said Joseph Wayland, Acting Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. "The Antitrust Division has consistently taken the position that these kinds of agreements are per se unlawful under the antitrust laws."
According to the complaint, beginning no later than 2006, and lasting at least until 2009, eBay and Intuit entered an illegal agreement that restricted their ability to actively recruit employees from the other company, and for some period of time even restricted at least eBay from hiring any employees at Intuit. In 2007, the pact evolved into an agreement that eBay would not recruit Intuit’s employees. eBay’s recruiting personnel were instructed to not pursue potential applications that came from Intuit and to throw away such resumes, the department said.
As stated in the department’s complaint, eBay and Intuit are direct competitors for employees, including specialized computer engineers and scientists covered by the agreements at issue in the case.
The department said it was not necessary to name Intuit in today’s complaint because the company had previously been named in the division’s September 2010 lawsuit and settlement, and the relief the department obtained in the previous settlement is sufficient to prevent Intuit from entering into these types of agreements. In September 2010, the Antitrust Division filed a lawsuit against six high technology companies–Adobe Systems Inc., Apple Inc., Google Inc., Intel Corp., Intuit Inc. and Pixar–over a series of bilateral agreements not to solicit each other’s employees. All six companies entered into a settlement which prohibited them from entering agreements to refrain from, or pressure others to refrain from, soliciting, recruiting, or otherwise competing for another firm’s employees. The Antitrust Division also filed a lawsuit against Lucasfilm in December 2010 for entering into a similar agreement with Pixar, and Lucasfilm entered into a similar settlement. The eBay case grew out of the same investigation.
eBay is a Delaware corporation with its principal place of business in San Jose. In 2011, eBay had revenues of $11.7 billion.
Intuit is a Delaware corporation with its principal place of business in Mountain View, Calif. In 2011, Intuit had revenues of $3.85 billion.
PUTTING AN END TO HUMAN TRAFFICKING
FROM: U.S. DEPARTMENT OF JUSTICE
The Fight to End Human Trafficking Contineus
November 21st, 2012
Posted by Tracy Russo
Deputy Attorney General James Cole met with Jada Pinkett Smith last week to discuss the department’s extensive efforts to end human trafficking. Ms. Pinkett Smith founded the organization,
Don’t Sell Bodies, to raise awareness about this global epidemic and advocate for victims of trafficking. Ms. Pinkett Smith was joined by former trafficking victims who now work to raise awareness and eliminate human trafficking, including Minh Dang and Withelma "T" Ortiz-Macey, Glamour magazine’s 2011 Woman of the Year.
During the meeting the group discussed remarks made by Deputy Cole before the INTERPOL General Assembly in Italy earlier this month, which largely focused on the department’s myriad of efforts to combat trafficking, including the links between transnational organized crime and human trafficking and the department’s prosecution and training efforts in this area.
Human trafficking cases are prosecuted by several Department of Justice components, including the Civil Rights Division and its specialized Human Trafficking Prosecution Unit, the Criminal Division through the Child Exploitation and Obscenity Section, and individual U.S. Attorney’s Offices. These cases are investigated by the Federal Bureau of Investigation, the Department of Homeland Security’s Immigration and Customs Enforcement/Homeland Security Investigations, and partners at the Departments of Labor and State.
In recent years we have demonstrated unprecedented success in fighting both labor and sex trafficking. We are bringing a record number of federal cases, while at the same time, more states than ever before have passed their own anti-trafficking laws. The department has increased the number of human trafficking prosecutions by more than 30 percent in forced labor and adult sex trafficking cases, while also increasing the number of convictions in Innocence Lost National Initiative cases by 30 percent.
Working with federal, state, local, and international law enforcement agencies, we recently secured the longest sentence ever imposed in a forced labor case. In United States v. Botsvynyuk, the lead defendant was sentenced to life in prison plus twenty years, and his co-conspirator was sentenced to twenty years, for their respective roles in an organized human trafficking scheme that held its victims in forced labor on cleaning crews in and around Philadelphia, Pennsylvania.
Just over a year ago, we initiated a pilot project of multi-agency Anti-Trafficking Coordination Teams (ACTeams) in six judicial districts in the United States. These task forces will prove the value of interagency coordination to address the scourge of human trafficking. In addition to the ACTeams, each U.S. Attorney now participates in some form of anti-trafficking task force.
In addition to our own federal prosecutions, the department’s grant making components are funding state and local law enforcement agencies and victim services organizations to support multidisciplinary, victim-centered task forces dedicated to investigating trafficking crimes and providing culturally-competent assistance to victims.
By taking a multi-disciplinary approach to combating human trafficking and working with our federal, state local and nonprofit partners we can ensure that victims obtain the services that they need and that offenders are prosecuted and sentenced to lengthy jail sentences.
The Fight to End Human Trafficking Contineus
November 21st, 2012
Posted by Tracy Russo
Deputy Attorney General James Cole met with Jada Pinkett Smith last week to discuss the department’s extensive efforts to end human trafficking. Ms. Pinkett Smith founded the organization,
Don’t Sell Bodies, to raise awareness about this global epidemic and advocate for victims of trafficking. Ms. Pinkett Smith was joined by former trafficking victims who now work to raise awareness and eliminate human trafficking, including Minh Dang and Withelma "T" Ortiz-Macey, Glamour magazine’s 2011 Woman of the Year.
During the meeting the group discussed remarks made by Deputy Cole before the INTERPOL General Assembly in Italy earlier this month, which largely focused on the department’s myriad of efforts to combat trafficking, including the links between transnational organized crime and human trafficking and the department’s prosecution and training efforts in this area.
Human trafficking cases are prosecuted by several Department of Justice components, including the Civil Rights Division and its specialized Human Trafficking Prosecution Unit, the Criminal Division through the Child Exploitation and Obscenity Section, and individual U.S. Attorney’s Offices. These cases are investigated by the Federal Bureau of Investigation, the Department of Homeland Security’s Immigration and Customs Enforcement/Homeland Security Investigations, and partners at the Departments of Labor and State.
In recent years we have demonstrated unprecedented success in fighting both labor and sex trafficking. We are bringing a record number of federal cases, while at the same time, more states than ever before have passed their own anti-trafficking laws. The department has increased the number of human trafficking prosecutions by more than 30 percent in forced labor and adult sex trafficking cases, while also increasing the number of convictions in Innocence Lost National Initiative cases by 30 percent.
Working with federal, state, local, and international law enforcement agencies, we recently secured the longest sentence ever imposed in a forced labor case. In United States v. Botsvynyuk, the lead defendant was sentenced to life in prison plus twenty years, and his co-conspirator was sentenced to twenty years, for their respective roles in an organized human trafficking scheme that held its victims in forced labor on cleaning crews in and around Philadelphia, Pennsylvania.
Just over a year ago, we initiated a pilot project of multi-agency Anti-Trafficking Coordination Teams (ACTeams) in six judicial districts in the United States. These task forces will prove the value of interagency coordination to address the scourge of human trafficking. In addition to the ACTeams, each U.S. Attorney now participates in some form of anti-trafficking task force.
In addition to our own federal prosecutions, the department’s grant making components are funding state and local law enforcement agencies and victim services organizations to support multidisciplinary, victim-centered task forces dedicated to investigating trafficking crimes and providing culturally-competent assistance to victims.
By taking a multi-disciplinary approach to combating human trafficking and working with our federal, state local and nonprofit partners we can ensure that victims obtain the services that they need and that offenders are prosecuted and sentenced to lengthy jail sentences.
Sunday, November 25, 2012
SEC BRINGS CHARGES AGAINST OPERATORS OF ALLEGED PRIME BANK SCHEME
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C., Nov. 19, 2012 — The Securities and Exchange Commission today charged the operators of a long-running prime bank scheme with defrauding investors who were promised sky-high returns on loans to a secret European trust. It also is seeking an emergency court order to freeze the operators’ assets for the benefit of investors.
The SEC alleges that Billy W. McClintock, who lives in Florida, and Dianne Alexander, a former Georgia resident who now lives in California and also is known as Linda Dianne Alexander, raised $15 million from at least 220 investors in more than 20 states, primarily Georgia. McClintock portrayed himself as the "U.S. Director" of a secret European trust that had the power to create money and claimed to have appointed Alexander as a "U.S. Regional Director" for the trust. McClintock and Alexander led investors to believe that they could receive 38 percent annual interest on loans to the trust, provided they abide by the trust’s strict rules requiring secrecy. However, investor money was instead used to merely pay other investors, the hallmark of a Ponzi scheme.
"McClintock and Alexander pitched an investment opportunity that simply did not exist. They merely reshuffled funds between investors in a modern take on a classic prime bank scheme," said William P. Hicks, Associate Director of Enforcement in the SEC’s Atlanta Regional Office.
According to the SEC’s complaint filed in U.S. District Court for the Northern District of Georgia, McClintock and Alexander began conducting the scheme by at least 2004 and misrepresented or omitted facts about investment risks, expected returns, and how investor funds would be used. The complaint charges McClintock and Alexander with violating the securities registration, broker-dealer registration, and antifraud provisions of the U.S. securities laws and a related SEC anti-fraud rule.
The SEC’s complaint also names as relief defendants two entities that McClintock controls — MSC Holdings USA LLC, and MSC Holdings Inc. — and another entity controlled by Alexander — MSC GA Holdings LLC. The SEC believes the three firms may have received ill-gotten assets from the fraud that should be returned to investors.
Information on how to avoid prime bank frauds is available at: http://www.sec.gov/divisions/enforce/primebank.shtml and
http://investor.gov/investing-basics/avoiding-fraud/types-fraud/prime-bank-investments
The SEC’s investigation, which is continuing, has been conducted by Natalie M. Brunson and Lucy T. Graetz of the SEC's Atlanta Regional Office under the supervision of Aaron W. Lipson. Senior Trial Counsel Pat Huddleston II will lead the litigation. The SEC acknowledges the assistance of the U. S. Attorney's Office for the Northern District of Georgia and the Federal Bureau of Investigation’s Atlanta Division in this matter.
Washington, D.C., Nov. 19, 2012 — The Securities and Exchange Commission today charged the operators of a long-running prime bank scheme with defrauding investors who were promised sky-high returns on loans to a secret European trust. It also is seeking an emergency court order to freeze the operators’ assets for the benefit of investors.
The SEC alleges that Billy W. McClintock, who lives in Florida, and Dianne Alexander, a former Georgia resident who now lives in California and also is known as Linda Dianne Alexander, raised $15 million from at least 220 investors in more than 20 states, primarily Georgia. McClintock portrayed himself as the "U.S. Director" of a secret European trust that had the power to create money and claimed to have appointed Alexander as a "U.S. Regional Director" for the trust. McClintock and Alexander led investors to believe that they could receive 38 percent annual interest on loans to the trust, provided they abide by the trust’s strict rules requiring secrecy. However, investor money was instead used to merely pay other investors, the hallmark of a Ponzi scheme.
"McClintock and Alexander pitched an investment opportunity that simply did not exist. They merely reshuffled funds between investors in a modern take on a classic prime bank scheme," said William P. Hicks, Associate Director of Enforcement in the SEC’s Atlanta Regional Office.
According to the SEC’s complaint filed in U.S. District Court for the Northern District of Georgia, McClintock and Alexander began conducting the scheme by at least 2004 and misrepresented or omitted facts about investment risks, expected returns, and how investor funds would be used. The complaint charges McClintock and Alexander with violating the securities registration, broker-dealer registration, and antifraud provisions of the U.S. securities laws and a related SEC anti-fraud rule.
The SEC’s complaint also names as relief defendants two entities that McClintock controls — MSC Holdings USA LLC, and MSC Holdings Inc. — and another entity controlled by Alexander — MSC GA Holdings LLC. The SEC believes the three firms may have received ill-gotten assets from the fraud that should be returned to investors.
Information on how to avoid prime bank frauds is available at: http://www.sec.gov/divisions/enforce/primebank.shtml and
http://investor.gov/investing-basics/avoiding-fraud/types-fraud/prime-bank-investments
The SEC’s investigation, which is continuing, has been conducted by Natalie M. Brunson and Lucy T. Graetz of the SEC's Atlanta Regional Office under the supervision of Aaron W. Lipson. Senior Trial Counsel Pat Huddleston II will lead the litigation. The SEC acknowledges the assistance of the U. S. Attorney's Office for the Northern District of Georgia and the Federal Bureau of Investigation’s Atlanta Division in this matter.
Saturday, November 24, 2012
TAX PREPARER SENTENCED FOR FILING FALSE CLAIMS AND IDENTITY THEFT
FROM: U.S. DEPARTMENT OF JUSTICE
Monday, November 19, 2012
New Mexico Man Sentenced to Prison for Stolen Identity Refund Fraud
Douglas Kuester, 43, a tax preparer from Silver City, N.M., was sentenced today to 48 months in prison for filing false claims and aggravated identity theft, the Justice Department and the Internal Revenue Service (IRS) announced today. Kuester was also ordered to pay $911,000 in restitution and will be on supervised release for three years after completing his prison sentence.
Kuester had pleaded guilty to the charges in May. He was originally indicted by a federal grand jury on Jan. 18, 2012, and has been in custody since his arrest on January 24.
According to court documents, Kuester used stolen identities to file false tax returns which fraudulently claimed refunds. He would direct the fraudulently obtained refunds to various bank accounts and prepaid debit cards, retaining portions of the proceeds for himself. Kuester also admitted to using an anonymizer to help conceal his filing of the false returns.
Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, and U.S. Attorney Kenneth J. Gonzales commended special agents of IRS - Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Jason H. Poole and Gregory P. Bailey, who prosecuted the case with assistance from the New Mexico U.S. Attorney’s Office.
Monday, November 19, 2012
New Mexico Man Sentenced to Prison for Stolen Identity Refund Fraud
Douglas Kuester, 43, a tax preparer from Silver City, N.M., was sentenced today to 48 months in prison for filing false claims and aggravated identity theft, the Justice Department and the Internal Revenue Service (IRS) announced today. Kuester was also ordered to pay $911,000 in restitution and will be on supervised release for three years after completing his prison sentence.
Kuester had pleaded guilty to the charges in May. He was originally indicted by a federal grand jury on Jan. 18, 2012, and has been in custody since his arrest on January 24.
According to court documents, Kuester used stolen identities to file false tax returns which fraudulently claimed refunds. He would direct the fraudulently obtained refunds to various bank accounts and prepaid debit cards, retaining portions of the proceeds for himself. Kuester also admitted to using an anonymizer to help conceal his filing of the false returns.
Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, and U.S. Attorney Kenneth J. Gonzales commended special agents of IRS - Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Jason H. Poole and Gregory P. Bailey, who prosecuted the case with assistance from the New Mexico U.S. Attorney’s Office.
SEC BRINGS CHARGES AGAINST 7 MEMBERS OF INSIDER TRADING RING
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C., Nov. 19, 2012 — The Securities and Exchange Commission today charged three health care company employees and four others in a New Jersey-based insider trading ring of various high school friends generating $1.7 million in illegal profits and kickbacks by trading in advance of 11 public announcements involving mergers, a drug approval application, and quarterly earnings of pharmaceutical companies and medical technology firms.
The SEC alleges that Celgene Corporation's director of financial reporting John Lazorchak, Sanofi S.A.'s director of accounting and reporting Mark S. Cupo, and Stryker Corporation's marketing employee Mark D. Foldy each illegally tipped confidential information about their companies for the purpose of insider trading. Typically the nonpublic information involved upcoming mergers or acquisitions, but Lazorchak also tipped confidential details about Celgene's quarterly earnings and the status of a Celgene application to expand the use of its drug Revlimid. The trading was carefully orchestrated so there was usually someone acting solely as a non-trading middleman who received the nonpublic information from the insider and tipped others. They hoped to avoid detection with no direct connection between the insiders and the traders, and the insiders were later compensated for the inside information with cash payments made in installments to avoid any scrutiny of large cash withdrawals.
The SEC alleges that Cupo's friend Michael Castelli along with Lawrence Grum, who attended high school with Castelli, were the primary traders in the scheme. Among the ways that Castelli and Grum tried to hide their illegal conduct was by compiling binders of research to serve as a false basis for their trading. They actively traded in Celgene securities to create a pattern of long-standing positions in the stock. Grum reassured Cupo that discovery of the scheme and consequent legal action was unlikely due to limited government resources to police insider trading activity. Grum said, "At the end of the day, the SEC's got to pick their battle because they have a limited number of people and a huge number of investors to go after."
Daniel M. Hawke, Chief of the SEC Enforcement Division's Market Abuse Unit and Director of the Philadelphia Regional Office, said, "This is yet another case where wrongdoers believed they could outsmart investigators by creating an elaborate smokescreen to hide their insider trading. Such tactics as using middlemen to pass inside information and compiling research to falsely justify illegal trades will not prevent lawbreakers from getting caught."
The other two traders charged are Lazorchak's high school friends Michael T. Pendolino and James N. Deprado, who now live in New Hampshire and Virginia respectively. The others live in New Jersey. In a parallel criminal action, the U.S. Attorney's Office for the District of New Jersey today announced criminal charges against Lazorchak, Cupo, Foldy, Castelli, Grum, and Pendolino.
According to the SEC's complaint filed in U.S. District Court for the District of New Jersey, the scheme began in late 2007 when Lazorchak and Cupo, who were friends and colleagues at Sanofi, discussed Lazorchak's new position at Celgene where he'd have access to nonpublic information about mergers and acquisitions. Lazorchak told Cupo that he was initially working on Celgene's possible acquisition of another pharmaceutical company, Pharmion. Cupo discussed Lazorchak's position with Castelli, a friend with whom he attends winemaking club meetings. Castelli brought in Grum, who he considered a sophisticated trader with knowledge of the securities industry. Castelli and Grum devised the scheme in which Lazorchak tipped Cupo with nonpublic Celgene-related information. Cupo, as the middleman, tipped Castelli and Grum so they could illegally trade. Castelli and Grum paid Cupo for his tips, and gave Cupo money to pass along to Lazorchak for the initial tips. Lazorchak never knew the identities of Castelli or Grum, but was aware that Cupo was passing confidential Celgene information to other traders.
The SEC alleges that Lazorchak's high school friend Foldy entered the scheme in 2007, when Lazorchak tipped him with confidential details about the impending merger between Celgene and Pharmion, and Foldy illegally traded on the information prior to the public announcement of the deal. Lazorchak and Foldy devised and used code phrases while conversing to identify instances when Lazorchak was passing inside information or Foldy was seeking more details. After the illegal trading occurred and Foldy obtained illicit profits of $14,500, Lazorchak repeatedly demanded that Foldy compensate him for the inside information. Foldy ultimately paid Lazorchak at least $500 and later returned the favor with illegal tips of confidential information about a tender offer involving his employer, Stryker Corp. Lazorchak acted as a middleman and did not trade, instead tipping Pendolino so he could trade on the nonpublic information. Pendolino in turn tipped Deprado, who also traded. Lazorchak additionally tipped Cupo, who did not trade but acted as a middleman and tipped Castelli and Grum, who both traded.
The SEC alleges that Cupo began tipping inside information about his employer in late 2009, when he learned that Sanofi was planning to announce a tender offer to acquire another pharmaceutical company, Chattem Inc. Cupo learned of the imminent tender offer a few days prior to the public announcement, he tipped Castelli and Grum with the confidential details, and they both traded on the nonpublic information.
The SEC alleges that each of the defendants violated Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder and that Castelli and Grum violated Section 17(a) of the Securities Act of 1933. The SEC is seeking permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, financial penalties, and officer and director bars for Lazorchak, Cupo, and Foldy.
The SEC's investigation, which is continuing, has been conducted by Colleen K. Lynch, David W. Snyder and John S. Rymas, who are members of the Market Abuse Unit in the SEC's Philadelphia office. G. Jeffrey Boujoukos and Catherine E. Pappas are handling the litigation.
The SEC brought this enforcement action in coordination with the U.S. Attorney's Office for the District of New Jersey. The SEC also appreciates the assistance of the Federal Bureau of Investigation, the Financial Industry Regulatory Authority, and the Options Regulatory Surveillance Authority.
Washington, D.C., Nov. 19, 2012 — The Securities and Exchange Commission today charged three health care company employees and four others in a New Jersey-based insider trading ring of various high school friends generating $1.7 million in illegal profits and kickbacks by trading in advance of 11 public announcements involving mergers, a drug approval application, and quarterly earnings of pharmaceutical companies and medical technology firms.
The SEC alleges that Celgene Corporation's director of financial reporting John Lazorchak, Sanofi S.A.'s director of accounting and reporting Mark S. Cupo, and Stryker Corporation's marketing employee Mark D. Foldy each illegally tipped confidential information about their companies for the purpose of insider trading. Typically the nonpublic information involved upcoming mergers or acquisitions, but Lazorchak also tipped confidential details about Celgene's quarterly earnings and the status of a Celgene application to expand the use of its drug Revlimid. The trading was carefully orchestrated so there was usually someone acting solely as a non-trading middleman who received the nonpublic information from the insider and tipped others. They hoped to avoid detection with no direct connection between the insiders and the traders, and the insiders were later compensated for the inside information with cash payments made in installments to avoid any scrutiny of large cash withdrawals.
The SEC alleges that Cupo's friend Michael Castelli along with Lawrence Grum, who attended high school with Castelli, were the primary traders in the scheme. Among the ways that Castelli and Grum tried to hide their illegal conduct was by compiling binders of research to serve as a false basis for their trading. They actively traded in Celgene securities to create a pattern of long-standing positions in the stock. Grum reassured Cupo that discovery of the scheme and consequent legal action was unlikely due to limited government resources to police insider trading activity. Grum said, "At the end of the day, the SEC's got to pick their battle because they have a limited number of people and a huge number of investors to go after."
Daniel M. Hawke, Chief of the SEC Enforcement Division's Market Abuse Unit and Director of the Philadelphia Regional Office, said, "This is yet another case where wrongdoers believed they could outsmart investigators by creating an elaborate smokescreen to hide their insider trading. Such tactics as using middlemen to pass inside information and compiling research to falsely justify illegal trades will not prevent lawbreakers from getting caught."
The other two traders charged are Lazorchak's high school friends Michael T. Pendolino and James N. Deprado, who now live in New Hampshire and Virginia respectively. The others live in New Jersey. In a parallel criminal action, the U.S. Attorney's Office for the District of New Jersey today announced criminal charges against Lazorchak, Cupo, Foldy, Castelli, Grum, and Pendolino.
According to the SEC's complaint filed in U.S. District Court for the District of New Jersey, the scheme began in late 2007 when Lazorchak and Cupo, who were friends and colleagues at Sanofi, discussed Lazorchak's new position at Celgene where he'd have access to nonpublic information about mergers and acquisitions. Lazorchak told Cupo that he was initially working on Celgene's possible acquisition of another pharmaceutical company, Pharmion. Cupo discussed Lazorchak's position with Castelli, a friend with whom he attends winemaking club meetings. Castelli brought in Grum, who he considered a sophisticated trader with knowledge of the securities industry. Castelli and Grum devised the scheme in which Lazorchak tipped Cupo with nonpublic Celgene-related information. Cupo, as the middleman, tipped Castelli and Grum so they could illegally trade. Castelli and Grum paid Cupo for his tips, and gave Cupo money to pass along to Lazorchak for the initial tips. Lazorchak never knew the identities of Castelli or Grum, but was aware that Cupo was passing confidential Celgene information to other traders.
The SEC alleges that Lazorchak's high school friend Foldy entered the scheme in 2007, when Lazorchak tipped him with confidential details about the impending merger between Celgene and Pharmion, and Foldy illegally traded on the information prior to the public announcement of the deal. Lazorchak and Foldy devised and used code phrases while conversing to identify instances when Lazorchak was passing inside information or Foldy was seeking more details. After the illegal trading occurred and Foldy obtained illicit profits of $14,500, Lazorchak repeatedly demanded that Foldy compensate him for the inside information. Foldy ultimately paid Lazorchak at least $500 and later returned the favor with illegal tips of confidential information about a tender offer involving his employer, Stryker Corp. Lazorchak acted as a middleman and did not trade, instead tipping Pendolino so he could trade on the nonpublic information. Pendolino in turn tipped Deprado, who also traded. Lazorchak additionally tipped Cupo, who did not trade but acted as a middleman and tipped Castelli and Grum, who both traded.
The SEC alleges that Cupo began tipping inside information about his employer in late 2009, when he learned that Sanofi was planning to announce a tender offer to acquire another pharmaceutical company, Chattem Inc. Cupo learned of the imminent tender offer a few days prior to the public announcement, he tipped Castelli and Grum with the confidential details, and they both traded on the nonpublic information.
The SEC alleges that each of the defendants violated Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder and that Castelli and Grum violated Section 17(a) of the Securities Act of 1933. The SEC is seeking permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, financial penalties, and officer and director bars for Lazorchak, Cupo, and Foldy.
The SEC's investigation, which is continuing, has been conducted by Colleen K. Lynch, David W. Snyder and John S. Rymas, who are members of the Market Abuse Unit in the SEC's Philadelphia office. G. Jeffrey Boujoukos and Catherine E. Pappas are handling the litigation.
The SEC brought this enforcement action in coordination with the U.S. Attorney's Office for the District of New Jersey. The SEC also appreciates the assistance of the Federal Bureau of Investigation, the Financial Industry Regulatory Authority, and the Options Regulatory Surveillance Authority.
CO. TO PAY $4.1 MILLION PENALTY TO SETTLE CLEAN WATER ACT VIOLATIONS AT WASTE WATER TREATMENT PLANT
FROM: U.S. DEPARTMENT OF JUSTICE
Tuesday, November 13, 2012
Roquette America Inc., to Pay $4.1 Million Penalty to Settle Violations of Clean Water Act at Its Keokuk, Iowa, Facility
Roquette America, Inc., has agreed to pay a $4.1 million civil penalty to settle alleged violations of the Clean Water Act and its National Pollutant Discharge Elimination System (NPDES) permit at its grain processing facility in Keokuk, Iowa, the Department of Justice and the Environmental Protection Agency (EPA) announced today.
As early as 2008, Roquette was aware that its waste water treatment plant was marginally adequate and that it could not handle spills or surges in loading. Instead of constructing additional containment structures for waste water surges, or routing spills to the waste water treatment plant, Roquette allowed the industrial waste to be discharged directly into the Mississippi River and Soap Creek.
"Roquette’s actions resulted in over a thousand permit violations and allowed the discharge of untreated industrial waste into the Mississippi River and another Iowa waterway even after it was informed on numerous occasions it was violating its state permit and federal law," said Ignacia S. Moreno, Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division. "This settlement holds Roquette accountable for its multiple violations of the nation’s Clean Water Act and requires sewer improvements, wastewater treatment upgrades, enhanced monitoring and independent compliance audits that will benefit public health and the environment for the people of Iowa for years to come."
"The magnitude of these violations warrants the magnitude of the penalty," said EPA Region 7 Administrator Karl Brooks. "The Mississippi River is a vital waterway, used by millions of Americans for commerce, recreation and drinking water. It is imperative that industrial facilities abide by their discharge permits to protect our valuable water resources."
The Iowa Department of Natural Resources has issued three administrative orders and eight notices of violation to Roquette since 2000. Despite these orders and notices, Roquette continued to overload its waste water treatment plant and failed to address the deficiencies at other portions of its facility, resulting in permit violations and illegal discharges of untreated industrial waste.
The Keokuk facility violated its NPDES permit at least 1,174 times, and on at least 30 occasions illegally discharged via storm drains resulting in at least 250,000 gallons of industrial waste being released into the Mississippi River and Soap Creek. In addition to these permit violations and illegal discharges, Roquette discharged partially treated industrial waste from its waste water treatment plant, and discharged steam condensate into Soap Creek through an unpermitted outfall.
In addition to paying the penalty, Roquette will complete other requirements valued at more than $17 million to further protect the Mississippi River and Soap Creek. Among these requirements are the completion of a sewer survey to identify possible discharge locations, the implementation of sewer modifications, the construction of upgrades to the wastewater treatment plant, and the performance of enhanced effluent monitoring. In addition, Roquette will obtain annual third party audits of its compliance with the operations and maintenance program, the Storm Water Pollution Prevention Program, the company’s NPDES permits, and the compliance requirements set out in the consent decree.
The consent decree is subject to a 30-day public comment period and approval by the federal court. Once it is published in the Federal Register, a copy of the consent decree will be available on the Justice Department website at www.usdoj.gov/enrd/Consent_Decrees.html
Tuesday, November 13, 2012
Roquette America Inc., to Pay $4.1 Million Penalty to Settle Violations of Clean Water Act at Its Keokuk, Iowa, Facility
Roquette America, Inc., has agreed to pay a $4.1 million civil penalty to settle alleged violations of the Clean Water Act and its National Pollutant Discharge Elimination System (NPDES) permit at its grain processing facility in Keokuk, Iowa, the Department of Justice and the Environmental Protection Agency (EPA) announced today.
As early as 2008, Roquette was aware that its waste water treatment plant was marginally adequate and that it could not handle spills or surges in loading. Instead of constructing additional containment structures for waste water surges, or routing spills to the waste water treatment plant, Roquette allowed the industrial waste to be discharged directly into the Mississippi River and Soap Creek.
"Roquette’s actions resulted in over a thousand permit violations and allowed the discharge of untreated industrial waste into the Mississippi River and another Iowa waterway even after it was informed on numerous occasions it was violating its state permit and federal law," said Ignacia S. Moreno, Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division. "This settlement holds Roquette accountable for its multiple violations of the nation’s Clean Water Act and requires sewer improvements, wastewater treatment upgrades, enhanced monitoring and independent compliance audits that will benefit public health and the environment for the people of Iowa for years to come."
"The magnitude of these violations warrants the magnitude of the penalty," said EPA Region 7 Administrator Karl Brooks. "The Mississippi River is a vital waterway, used by millions of Americans for commerce, recreation and drinking water. It is imperative that industrial facilities abide by their discharge permits to protect our valuable water resources."
The Iowa Department of Natural Resources has issued three administrative orders and eight notices of violation to Roquette since 2000. Despite these orders and notices, Roquette continued to overload its waste water treatment plant and failed to address the deficiencies at other portions of its facility, resulting in permit violations and illegal discharges of untreated industrial waste.
The Keokuk facility violated its NPDES permit at least 1,174 times, and on at least 30 occasions illegally discharged via storm drains resulting in at least 250,000 gallons of industrial waste being released into the Mississippi River and Soap Creek. In addition to these permit violations and illegal discharges, Roquette discharged partially treated industrial waste from its waste water treatment plant, and discharged steam condensate into Soap Creek through an unpermitted outfall.
In addition to paying the penalty, Roquette will complete other requirements valued at more than $17 million to further protect the Mississippi River and Soap Creek. Among these requirements are the completion of a sewer survey to identify possible discharge locations, the implementation of sewer modifications, the construction of upgrades to the wastewater treatment plant, and the performance of enhanced effluent monitoring. In addition, Roquette will obtain annual third party audits of its compliance with the operations and maintenance program, the Storm Water Pollution Prevention Program, the company’s NPDES permits, and the compliance requirements set out in the consent decree.
The consent decree is subject to a 30-day public comment period and approval by the federal court. Once it is published in the Federal Register, a copy of the consent decree will be available on the Justice Department website at www.usdoj.gov/enrd/Consent_Decrees.html
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