Washington, DC—(ENEWSPF)—May 7, 2015. Three California men and a Minnesota company were charged in an indictment today in the Southern District of Ohio for their roles in a massive prescription drug diversion scheme. 

The indictment alleges that David Jess Miller, 50, of Santa Ana, California; Artur Stepanyan, 38, and Mihran Stepanyan, 29, both of Encino, California, and Minnesota Independent Cooperative Inc. (MIC) engaged in a conspiracy to sell prescription drugs from illegal, unlicensed sources to wholesalers and pharmacies throughout the United States.  The 12-count indictment charges the defendants with conspiracy to commit mail and wire fraud, multiple counts of mail fraud, and conspiracy to distribute prescription drugs without a license and to make false statements.    

Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division, U.S. Attorney Carter M. Stewart of the Southern District of Ohio, Director George M. Karavetsos of the U.S. Food and Drug Administration (FDA)’s Office of Criminal Investigations and Assistant Inspector in Charge Christopher White of the U.S. Postal Inspection Service (USPIS) announced the charges. 

According to the indictment, from 2007 through April 2014, David Miller and his company, MIC, of Eagan, Minnesota, purchased prescription drugs from a network of illegal and unlicensed sources in New York, Florida and California.  Artur Stepanyan and Mihran Stepanyan, worked together to sell drugs from illegal sources to Miller and MIC.  Artur and Mihran Stepanyan, using a variety of company names, including Panda Capital Group, Red Rock Capital Group, Trans Atlantic Capital Group and GC National Wholesale, were Miller’s largest source of illegal drugs.  During the course of the conspiracy, Miller and MIC paid the Stepanyans approximately $160 million for these prescription drugs. 

“American consumers should be able to rely on the prescription drug supply chain,” said Principal Deputy Assistant Attorney General Mizer.  “Prescription drug diversion schemes like the one charged in this indictment undermine that supply chain and increase the risk that counterfeit, adulterated, misbranded, sub-potent or expired drugs will be sold to patients and consumers.” 

To hide the true, illegal sources of their prescription drugs, David Miller and MIC falsified so-called drug pedigree documents.  Pedigrees are documents required by law that show the source of drugs.  For most of the conspiracy, the fraudulent pedigrees falsely listed B&Y Wholesale, a company located in Puerto Rico and co-owned by co-conspirator Yusef Yassin Gomez (Yassin) as the source of the drugs.  The pedigree documents also falsely stated that Yassin’s company was an authorized distributor of the drugs.  On Feb. 19, 2014, Yassin pleaded guilty in U.S. District Court for the Southern District of Ohio to conspiracy to engage in the wholesale distribution of prescription drugs without a wholesale license.  In connection with his guilty plea, Yassin admitted the he agreed to allow Miller and MIC to use his company’s name on pedigree documents to hide the true drug sources.  In exchange, Miller and MIC paid Yassin a commission on all of the drug sales. 

 “Once a prescription drug is diverted outside of the regulated distribution channels, it becomes difficult, if not impossible, for regulators, law enforcement and end-users to know whether the prescription drug package actually contains the correct drug or the correct dose,” said U.S. Attorney Stewart.  “We will aggressively prosecute individuals and companies that ignore the law and sell illegally diverted prescription drugs to pharmacies, and ultimately, to American consumers.

“We are committed to protecting the integrity of the pharmaceutical supply chain, especially as criminals go to more extreme measures to subvert it,” said FDA’s Office of Criminal Investigations Director Karavetsos. “We will continue to pursue these criminals and work to bring them to justice.”

“The Postal Inspection Service is proud to partner with the FDA Office of Criminal Investigations to bring to bear our mail fraud expertise to help the fight against drug diversion,” said USPIS Assistant Inspector in Charge White.

Throughout the course of the conspiracy charged in the indictment, using these fraudulent pedigree documents, Miller and MIC sold approximately $393 million worth of prescription drugs to wholesalers and retail pharmacies throughout the United States, including to multiple customers in the Southern District of Ohio. 

In addition to Yassin, two of Miller’s other illegal drug suppliers, Peter Kats and Joseph Dallal, previously pleaded guilty to conspiracy to commit mail and wire fraud for their sales of illegally-diverted prescription drugs to Miller and MIC. 

This matter is being investigated by the FDA and USPIS.  Assistant U.S. Attorneys Anne L. Porter and Christy Muncy of the Southern District of Ohio and Trial Attorney John W. Burke of the Civil Division’s Consumer Protection Branch are prosecuting this case.

David Miller, Artur Stepanyan, and Mihran Stepanyan were charged amongst 30 other individuals in the Northern District of California in a separate indictment on charges including federal Racketeer Influenced and Corrupt Organizations (RICO) Act; conspiracy to commit identity theft; conspiracy to commit access device fraud; conspiracy to commit mail, wire, and bank fraud; money laundering conspiracy; and conspiracy to distribute prescription drugs without a wholesale license.

The charges in the indictment are merely allegations, and do not constitute proof of guilt.  Every defendant is presumed to be innocent unless and until proven guilty.

Related Material:

Download Indictment (5.27 MB)

Source: justice.gov

Washington, DC--(ENEWSPF)--May 7, 2015. The Justice Department announced today that 16 separate hospitals and their respective corporate parents have agreed to collectively pay $15.69 million to resolve False Claims Act allegations that the providers sought and received reimbursement from Medicare for services that were not medically reasonable or necessary, the U.S. Department of Justice announced today. 

“Hospitals that participate in the Medicare program must ensure that the services they provide and bill for are based on the medical needs of patients rather than the desire to maximize profits,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division.  “The Department of Justice is committed to ensuring that those who seek to abuse the Medicare program will be held accountable for their actions.”

This case concerns claims to Medicare for Intensive Outpatient Psychotherapy (IOP) services.  IOP services represent a continuation of ambulatory psychiatric services and provide active treatment to individuals with mental disorders using a variety of treatment methods.  Medicare will pay for an appropriate course of IOP treatment provided a number of specific requirements are met including, most notably, that the services in question are reasonable and necessary for the diagnosis and treatment of the patient’s condition.

These settlements resolve allegations that, beginning as early as 2005 and in some cases continuing into 2013, the hospitals knowingly submitted claims for IOP services that did not qualify for Medicare reimbursement because: the patient’s condition did not qualify for IOP; the patient’s treatments were not provided pursuant to an individualized treatment plan designed to help the patient address specific mental health needs and reach achievable goals; the patient’s progress was not being adequately tracked or documented; the patient received an inappropriate level of treatment; and/or the therapy provided was primarily recreational or diversional in nature, and not therapeutic.  The IOP services in question were typically performed on the providers’ behalf by Allegiance Health Management (Allegiance), a post-acute healthcare management company based in Shreveport, Louisiana, but billed to Medicare by the providers.

The providers who have reached agreements to resolve these allegations with the United States include:

Health Management Associates Inc. (HMA), and the following 14 hospitals formerly owned and operated by HMA: Central Mississippi Medical Center in Mississippi, Crossgate River Oaks in Mississippi, Dallas Regional Medical Center in Texas, Davis Regional Medical Center in North Carolina, East Georgia Regional Medical Center in Georgia, Gilmore Regional Medical Center in Mississippi, Lake Norman Regional Medical Center in North Carolina, Lehigh Regional Medical Center in Florida, Medical Center of Southeastern Oklahoma in Oklahoma, Natchez Community Hospital in Mississippi, Northwest Mississippi Regional Medical Center in Mississippi, Santa Rosa Medical Center in Florida, Southwest Regional Medical Center in Arkansas, and Summit Medical Center in Arkansas, which agreed to collectively pay $15 million;

Community Health Systems and its subsidiary Wesley Medical Center in Mississippi, which agreed to pay $210,000; and

North Texas Medical Center in Texas, which agreed to pay $480,000.

In October 2013, the United States resolved similar allegations with LifePoint Hospitals Inc. and two of its subsidiaries, PHC-Minden L.P., doing business as Minden Medical Center, and PHC-Cleveland Inc., doing business as Bolivar Medical Center, which collectively paid $4,672,469.80.

“This case demonstrates that the U.S. Attorney’s Office for the Eastern District of Arkansas will aggressively pursue civil health care fraud cases, where the integrity of the Medicare system has been undermined,” said U.S. Attorney Christopher R. Thyer of the Eastern District of Arkansas.  “Medical care providers who abuse Medicare hurt all taxpayers, and today’s announcement highlights our commitment to protecting our national health care system, as well as the Arkansans who depend on it.”

“Our agency is dedicated to investigating health care fraud schemes such as this, which divert scarce taxpayer funds meant to provide for legitimate patient care, including services for the often underserved mentally ill population,” said Special Agent in Charge Mike Fields of U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG).

The allegations resolved by today’s settlements arose from a lawsuit filed under the False Claims Act.  The act allows private individuals known as “relators” to sue on behalf of the United States and to share in the proceeds of any settlement or judgment that may result.  The relator in this case will receive $2,667,300. 

These settlements were the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Eastern District of Arkansas and HHS’ Office of Audit Statistics and OIG.

These settlements illustrate the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of more than $24 billion through False Claims Act cases, with more than $15.3 billion of that amount recovered in cases involving fraud against federal health care programs.

The claims settled by these agreements are allegations only, and there has been no determination of liability. 

Source: justice.gov

Alleges Violation of Employment Rights of Sergeant in Army National Guard

Washington, DC—(ENEWSPF)—May 7, 2015. The Department of Justice announced today it has filed a civil complaint against a South Jersey company for failing to re-employ a former employee when she returned from a National Guard deployment, a violation of federal law.

The civil lawsuit, filed in Camden federal court, alleges that Healthcare Commons Inc., of Carneys Point, New Jersey, willfully violated the Uniformed Services Employment and Re-employment Rights Act of 1994 (USERRA).  USERRA protects the rights of uniformed service members to retain their civilian employment following absences due to military service obligations and provides that they shall not be discriminated against because of their military obligations.  

Megan Toliver, 32, of New Castle, Delaware, is a former employee of Healthcare Commons.  She joined the U.S. Army National Guard in September 2004 and, most recently, had served as a sergeant, with honorable service as a mental health specialist.  According to the complaint, when Toliver returned from her military deployment in May 2014, Healthcare Commons willfully violated USERRA by not re-employing her as a mental health screener or in another comparable position. 

“No person should lose their job for serving our country, but according to our complaint that’s exactly what happened to a National Guard member here,” said Acting Associate General Stuart F. Delery. “Today’s filing is one more example of the Department of Justice’s commitment to protecting the men and women who serve in our Armed Forces from discrimination and unlawful actions.”

“The filing of this case reinforces the commitment of the Department of Justice to the vigorously enforce the prohibition of employment discrimination based on military service,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division.  “I want to thank the Department of Labor for referring this case to the Department of Justice.  I’m hopeful that through the department’s newly created Servicemembers and Veterans Initiative, we will continue to build on our strong ties with federal partners and continue using every tool at our disposal to protect the rights of the men and women who serve in our Armed Forces.”

“The men and women who serve in our armed forces here and abroad do so at great personal sacrifice,” said U.S. Attorney Paul Fishman of the District of New Jersey.  “Because of that sacrifice, federal law guarantees that they have the opportunity to resume their careers when they’ve completed their service.  When companies seek to skirt their obligations to re-employ our returning veterans, we will hold them accountable.”

The case was referred by U.S. Department of Labor following an investigation by the department’s Veterans’ Employment and Training Service.

The plaintiff is represented by Special Litigation Counsel Andrew Braniff of the Civil Rights Division and Assistant U.S. Attorney Michael E. Campion of the District of New Jersey.

In March 2015, the Attorney General created the Servicemembers and Veterans Initiative, which is led by three dedicated career Justice Department attorneys with strong ties to the military community.  They will further the department’s existing efforts by coordinating and expanding enforcement, outreach, and training efforts on behalf of service members, veterans and their families.  The initiative will address the unique challenges that service members face while on active duty, that veterans face upon returning home, and that families face when a loved one is deployed.

Additional information about USERRA can be found on the Justice Department’s websites at www.usdoj.gov/crt/emp and www.servicemembers.gov, the U.S. Attorney’s Office website at www.justice.gov/usao-nj and the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.

Related Material:

Download Toliver Complaint (17.44 KB)

Source: justice.gov

Washington, DC—(ENEWSPF)—May 7, 2015. Thirty-two people were arrested yesterday after being charged variously with racketeering conspiracy, conspiracy to commit identity theft, conspiracy to commit access device fraud, conspiracy to commit mail, wire and bank fraud, conspiracy to commit money laundering, conspiracy to use a facility of interstate commerce to commit murder-for-hire and conspiracy to engage in the unlicensed wholesale distribution of drugs, announced U.S. Attorney Melinda Haag of the Northern District of California, Special Agent in Charge David J. Johnson of the Federal Bureau of Investigation, and Special Agent in Charge José M. Martinez of Internal Revenue Service (IRS) Criminal Investigation.  A thirty-third defendant remains at large and is subject to an active arrest warrant.

According to an indictment that was unsealed yesterday, Ara Karapedyan, 45, Mihran Stepanyan, 29, and Artur Stepanyan, 38, were at the center of a nationwide conspiracy—with at least 18 other person—to conduct the affairs of a wide-ranging criminal enterprise through a pattern of racketeering.  This enterprise was fueled by a broad range of criminal activity including unlicensed wholesale drug distribution, money laundering and fraud.  The indictment names 33 defendants in all and describes an enterprise that spanned throughout California as well as in Minnesota, Ohio and Puerto Rico.

One key aspect of the alleged criminal activity described in the indictment was a multi-million dollar prescription drug diversion scheme.  Members and associates of the enterprise are alleged to have procured prescription drugs from unlicensed sources and to have resold the drugs to unknowing customers.  A central figure to these allegations is David Miller, 50.  Miller is alleged to be the owner and operator of a drug wholesaler called Minnesota Independent Cooperative (MIC) that, between 2010 and 2014, bought approximately $157 million of drugs from Mihran Stepanyan and Artur Stepanyan.  Miller and his employees allegedly knew the Stepanyans were not licensed to sell drugs and knew the Stepanyans procured their drugs through unlicensed sources.  Miller and his employees nevertheless purchased the drugs from the Stepanyans’ various companies, including Panda Capital Group, Red Rock Capital, Trans Atlantic Capital, GC National Wholesale, Sky Atlantic Capital and Nationwide Payment Solutions and resold the drugs as legitimate products.

A separate investigation has resulted in another indictment in the Southern District of Ohio charging David Miller, Mihran Stepanyan, Artur Stepanyan and MIC with various crimes arising from their sale of millions of dollars of illicitly-procured drugs.

The indictment also charges Karapedyan and his associates with engaging in the fraudulent unlicensed distribution of drugs.  For instance, from 2013 through 2015, Karapedyan, either personally or through an associate, sold several hundred thousand dollars’ worth of drugs such as Abilify, Liboderm, Cymbalta and Namenda, as well as HIV drugs such as Atripla, Truvada and Isentress and the cancer drug Gleevec.  Likewise, from roughly the latter part of 2014 through early 2015, Karapdyan and his racketeer co-conspirator Maxwell Starsky, 36, sold to another complicit wholesaler more than $1 million in illicitly procured drugs.  Karapedyan also supplied the Stepanyans with drugs.

Hugo Marquez, 41, Eric Figueroa, 29, Arman Zagaryan, 32, and their associates are likewise charged with procuring drugs from unlicensed sources and distributing the drugs to buyers.  According to the indictment, Alexander Soliman, 46, was one of their principal customers.  Between roughly 2012 and 2014, Soliman, through his companies Apex Pharmaceuticals and Maroon Pharma, knowingly purchased illicitly-procured drugs from Marquez, Figueroa and Zagaryan and then re-sold them as legitimate drugs.  During this time period, Marquez, Figueroa, Zargaryan and Soliman engaged in the distribution of more than $20 million worth of drugs.

Another aspect of the alleged criminal activity is a massive check and bank fraud operation.  As part of the enterprise, Karapedyan and his associates, including Asatour Magzanyan, 53, Tigran Sarkisyan, 38, and Hripsime Khachtryan, 41, allegedly used fraudulent identification information to prepare fraudulent tax returns, which were then filed with the government in order to induce the U.S. Treasury to issue tax refund checks.  Karapedyan associate Khachig Geuydjian, 74, allegedly used his unlicensed mail-box business to provide addresses for these fraudulent tax filings.  They and other members and associates of the enterprise then negotiated the tax refund checks using fraudulent identities or through a complicit check cashing business operated by Jean Dukmajian, 61, Karine Dukmajian, 33, and Angela Dukmajian, 26.  In addition to the tax refund scheme, members and associates of the enterprise also engaged in negotiating counterfeit and stolen checks.  In all, from roughly late 2012 to late 2014, Karapedyan and his associates negotiated more than 500 fraudulent checks worth more than $5 million.

In addition to the fraudulent unlicensed distribution of drugs and negotiating fraudulent checks, Karapedyan, the Stepanyans, Miller and others are charged with conspiring to launder money in an effort to promote their criminal activities and to conceal proceeds collected from their criminal activities.  For example, a description of Miller’s activity between 2012 through 2014, wherein he attempted to hide the fact he was paying the Stepanyans for drugs is alleged in the indictment.  The indictment further alleges Miller made the payments to the Stepanyans’ company GC National Wholesale through companies in Puerto Rico he controlled, such as B&Y Wholesalers and FMC Distributors.  The payments were for sales of drugs that the Stepanyans actually delivered to Miller’s company MIC.  Similarly, the indictment includes allegations Karapedyan and Starsky also arranged payments for more than $1 million of illicitly-procured drugs through a shell company.  In addition, Karapedyan also allegedly laundered money for the Stepanyans.  According to the indictment, in 2013, the Stepanyans transferred more than $1 million in proceeds derived from MIC to Karapedyan, who caused the money to be withdrawn as cash.

Furthermore, in addition to the foregoing, defendants Karapedyan and Gevork Ter-Mkrtchyan are charged with conspiring to use a facility of interstate commerce to commit murder-for-hire.  According to the indictment, these defendants made several attempts to find a person who would be willing to kill someone who had angered Ter-Mkrtchyan.  Although the defendants paid $1,500 for the hit, it was never carried out.

According to the indictment, a significant portion of the criminal activity took place in the Northern District of California.  For example, one delivery of drugs took place in the Northern District of California and many of the checks were negotiated in the Northern District as well.  In addition, much of the proceeds from the check and the drug schemes were laundered through the Northern District of California, where Karapedyan and his associates regularly picked up large amounts of cash.  In addition, Miller’s company, MIC, posted fraudulent information relating to the origins of the drugs he sold via a website.  The website was maintained by an Internet service provider in the Northern District of California.  Furthermore, Karapedyan made numerous calls to the Northern District of California in order to find individuals willing to perform the hit he sought.

An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.   All the defendants except Miller were arrested yesterday.  Miller remains at large and is the subject of an active arrest warrant. 

In sum, the indictment includes seven counts as follows: count One, RICO conspiracy, in violation of 18 U.S.C. § 1962(d) (maximum term of imprisonment, life or 20 years); Count Two, conspiracy to commit identity theft, in violation of 18 U.S.C. §  1028(f) (maximum term of imprisonment, 15 years); Count Three, conspiracy to commit access device fraud, 18 U.S.C. § 1029(b)(2) (maximum term of imprisonment, 5 years); Count Four, conspiracy to commit mail, wire, and bank fraud, in violation of 18 U.S.C. § 1349; Count Five, conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h) (maximum term of imprisonment, 20 years); Count Six, conspiracy to use interstate facility to commit murder-for-hire, in violation of 18 U.S.C. § 1958); Count Seven, conspiracy to engage in unlicensed wholesale distribution of drugs, in violation of 18 U.S.C. § 371 (maximum term of imprisonment, 5 years).

The following charges apply as against the following defendants are: Ara Karapedyan on Counts one through seven, Mihran Stepanyan on counts one through five and seven, Artur Stepanyan on counts one through five and seven, Gevork Ter-Mkrtchyan on counts 1-7, Khachig Geuydjian on counts one through five, Arman Petrosyan on counts one through five, Lanna Karapedyan on counts one through five, Maxwell Starsky on counts one through five and seven, Sevak Gharghani on counts one through five and seven, Jean Dukmajian, on counts one through five, Karine Dukmajian on counts one through five, Angela Dukmajian on counts one through five, Arman Danielian count one, four, five and seven, Asatour Magzanyan conts one through five, Tigran Sarkisyan counts one through five, Hripsime Khachtryan counts one through five, Loui Artin on counts one through five, Hugo Marquez on counts one through five and seven, Arman Zargaryan on counts one through five and seven, Dmitriy Kustov on counts two through four, Michael Inman on counts two through four, Araxia Nazaryian on counts two five and seven, Alexander Soliman on counts four, five and seven, Cheryl Barndt on counts four, five and seven, Eric Figueroa on counts four, five and seven, Marc Asheghian on counts four, five and seven, Michael Asheghian on counts four, five and seven, David Milleron counts one through five and seven, James Russoon on counts four, five and seven, Jeannette Couch counts four, five and seven, Marie Polichetti counts four, five and seven, Bernardo Guillen counts four, five and seven, Javier Ramirez on counts four and seven.

Additional periods of supervised release, fines and special assessments also could be imposed.  Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Thirty-one defendants appeared before the Honorable Victor B. Kenton and Michael R. Wilner in the Central District of California on Wednesday, May 6, 2015, to be advised of the charges against them and to determine conditions of release.  Some of those hearings have been continued at the request of the defendants.  Specifically, the bail hearing for Eric Figueroa has been continued to Friday, May 8, 2015, and the hearings for Hugo Marquez and Michael Inman have been continued to Monday, May 11, 2015, before the Honorable Michael R. Wilner.  In addition, Karapedyan will appear on Friday, May 8, 2015, before the Honorable Victor B. Kenton. 

Further, Ter-Mkrtchyan has requested a hearing in which the government will be required to prove his identity, i.e., that he is the individual named in the indictment.  That hearing will occur on Friday, May 8, 2015, before the Honorable Victor B. Kenton. 

The remaining 26 defendants have been ordered to appear before the Honorable Jacqueline Scott Corley in the Northern District of California. Alexander Soliman, Araxia Nazaryian and Asatour Magzanyan will appear on May 12, 2015.  Cheryl Barndt, Marc Asheghian, Michael Asheghian, Hripsime Khachtryan, Bernardo Guillen, Javier Ramirez, Jean Dukmajian, Karine Dukmajian, Angela Dukmajian, Khachig Geuydjian and Arman Zargaryan will appear on May 20, 2015.  Jeannette Couch, Loui Artin, Dmitriy Kustov, Marie Polichetti, Arman Danielian, Lanna Karapedyan, Sevak Gharghani, Arman Petrosyan and Maxwell Starsky will appear on May 22, 2015.

Mihran Stepanyan, Artur Stepanyan and Tigran Sarkisyan are being transported to the Northern District of California by the U.S. Marshal Service and will make court appearances after their arrival.

Assistant U.S. Attorneys Damali A. Taylor, David Countryman and W.S. Wilson Leung are prosecuting the case with the assistance of Lance Libatique, Ponly Tu, Daniel Charlier-Smith.  The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service.

Related Material:

Download Karapedyan Indictment (3.37 MB)

Source: justice.gov

Washington, DC--(ENEWSPF)--May 1, 2015. Former Puerto Rico Police Officers Jimmy Rodriguez Vega and David Colon Martinez were sentenced today for civil rights and obstruction of justice violations related to the fatal beating of Jose Luis Irizarry Perez, 19, announced Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division, U.S. Attorney Rosa Emilia Rodriguez-Velez of the District of Puerto Rico and Special Agent in Charge Carlos Cases of the FBI San Juan Field Office.  Rodriguez Vega was sentenced to serve 33 months months in prison for violating Irizarry Perez’s civil rights by striking him with a police baton during the incident, and Colon Martinez was sentenced to serve 24 months for making false statements to a Special Agent of the Federal Bureau of Investigation (FBI) and to the federal grand jury during the federal civil rights investigation.

With the issuance of today’s sentences, all six former Puerto Rico police officers who pled guilty for their roles in the beating and obstruction of the subsequent civil rights investigation have been sentenced.  According to documents filed in connection with the underlying guilty pleas, Rodriguez Vega and former Puerto Rico Police Sergeant Erick Rivera Nazario violated the constitutional rights of Irizarry Perez by striking him with their police batons while Colon Martinez physically restrained Irizarry Perez during an election evening celebration at the Las Colinas housing development in Yauco, Puerto Rico, on Nov. 5, 2008.  As part of his guilty plea, Rodriguez Vega admitted that after Rivera Nazario struck Irizarry Perez, while he was restrained and not posing a threat to any officer, Rodriguez Vega swung his own police baton as if it were a baseball bat into the victim’s forehead.  In conjunction with his guilty plea, Colon Martinez admitted that he falsely told the FBI and the grand jury that he did not see anyone else hit Irizarry Perez, whereas in truth he observed Rodriguez Vega and Rivera Nazario swing their batons into Irizarry Perez’s head and upper body, after which the victim collapsed to the ground.

U.S. District Court Judge Juan M. Perez Gimenez issued the sentence, which will be followed by three years of supervised release.  During the three-year term, the defendants will be under federal supervision, and risk additional prison time should they violate any terms of their supervised release. 

“The former police officers convicted for their roles in the fatal beating and obstruction of the subsequent investigation violated their sworn oaths to the young victim, his family, and the public at large,” said Principal Deputy Assistant Attorney General Gupta.  “Unfortunately, egregious civil rights violations by a few individuals, such as in this case, damage the public’s trust in law enforcement.  That’s why the department will steadfastly continue to investigate and prosecute these matters, but also work with law enforcement to rebuild that trust and ensure all individuals’ civil rights are protected under the law.”

 “Today’s sentencing brings a measure of justice to the family of Jose Luis Irizarry Perez,” said U.S. Attorney Rodriguez-Vélez.  “The U.S. Attorney’s Office reaffirms its commitment to vigorously prosecute those who abuse their power and official positions at the expense of constitutionally guaranteed civil rights.”

This case was investigated by the FBI’s San Juan Division and is being prosecuted by Senior Litigation Counsel Gerard Hogan and Trial Attorneys Shan Patel and Olimpia E. Michel of the Civil Rights Division and Assistant U.S. Attorney Jose A. Contreras of the District of Puerto Rico.

Source: justice.gov

Washington, DC--(ENEWSPF)--May 1, 2015.  In a settlement agreement with the Navajo Nation, the U.S. will place $13.2 million into an environmental response trust to pay for the evaluations of 16 priority abandoned uranium mines located across Navajo lands.  The investigation of these sites is a necessary step before final cleanup decisions can be made.  The work to be conducted is subject to the approval of the Navajo Nation as the lead agency and the Environmental Protection Agency (EPA) as the supporting agency. 

“This agreement is part of the Justice Department’s increased focus on environmental and health concerns in Indian country as well as the commitment of the Obama Administration to fairly resolve the historic grievances of American Indian tribes and build a healthier future for their people,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division.  “The site evaluations focus on the mines that pose the most significant hazards and will form a foundation for their final cleanup.  In partnership with our sister federal agencies, we will also continue our work to address the legacy of uranium mining on Navajo lands, including ongoing discussions with the Navajo Nation.”

“EPA is proud to help implement this historic settlement,” said Regional Administrator Jared Blumenfeld for EPA for the Pacific Southwest.  “It dovetails with our ongoing activities as we work together to make real progress on the environmental legacy of uranium mining on the Navajo Nation.”

The Navajo Nation encompasses more than 27,000 square miles within Utah, New Mexico and Arizona in the Four Corners area.  The unique geology of the region makes the Navajo Nation rich in uranium, a radioactive ore in high demand after the development of atomic power and weapons at the close of World War II.  Approximately four million tons of uranium ore were extracted during mining operations within the Navajo Nation from 1944 to 1986.  The federal government, through the Atomic Energy Commission (AEC), was the sole purchaser of uranium until 1966, when commercial sales of uranium began.  The AEC continued to purchase ore until 1970.  The last uranium mine on the Navajo Nation shut down in 1986.  Many Navajo people worked in and near the mines, often living and raising families in close proximity to the mines and mills.

Since 2008, a number of federal agencies including EPA, the Department of Energy, the Bureau of Indian Affairs, the Department of the Interior, the Nuclear Regulatory Commission and the Indian Health Service have been collaborating to address uranium contamination on the Navajo Nation.  The federal government has invested more than $100 million to address abandoned uranium mines on Navajo lands.  EPA has remediated 34 homes, provided safe drinking water to 1,825 families, conducted field screening at 521 mines, compiled a list of 46 “priority mines” for cleanup and performed stabilization or cleanup work at nine mines. This settlement agreement resolves the claims of the Navajo Nation pertaining to costs of evaluations at 16 of the 46 priority mines for which no viable responsible private party has been identified.

In April 2014, the Justice Department and EPA announced in a separate matter that approximately $985 million of a multi-billion dollar settlement of litigation against subsidiaries of Anadarko Petroleum Corp. will be paid to EPA to fund the clean-up of approximately 50 abandoned uranium mines in and around the Navajo Nation, where radioactive waste remains from Kerr-McGee mining operations.

Source: justice.gov

Washington, DC—(ENEWSPF)—May 5, 2015. The Justice Department announced today that it reached settlement agreements with the city of Parowan, Utah; the city of Española, New Mexico; and the village of Ruidoso, New Mexico.  The agreements resolve investigations of each public entity under Title I of the Americans with Disabilities Act (ADA).  The investigations found that each jurisdiction’s online employment application asked questions about disabilities in violation of the ADA.  The ADA does not permit employers to inquire as to whether an applicant is an individual with a disability or as to the nature of such disability before making a conditional offer of employment.  Under Section 503 of the Rehabilitation Act of 1973, however, federal contractors subject to affirmative action requirements must invite an applicant voluntarily to self-identify as an individual with a disability, consistent with certain requirements. 

Two investigations also found that the public entity’s online employment opportunities website or job applications were not fully accessible to people with disabilities, such as those who are blind or have low vision, are deaf or hard of hearing, or have physical disabilities affecting manual dexterity (such as limited ability to use a mouse).  In recent months, the department reached similar settlement agreements with the cities of DeKalb, Illinois; Vero Beach, Florida; Fallon, Nevada; Isle of Palms, South Carolina; Hubbard, Oregon; and Florida State University. 

“These agreements ensure that job applicants with disabilities will have an equal chance to compete for jobs in the public sector and won’t face illegal questions,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division.  “We commend each public entity for its cooperation in making the job application process more accessible.”   

Under the settlement agreements, each public entity agrees to ensure that its hiring policies and procedures do not discriminate against any applicant on the basis of disability, including by:

not conducting a medical examination or making a disability-related inquiry of a job applicant before a conditional offer of employment is made;

not requiring a medical examination or making inquiries of an employee as to whether such employee is an individual with a disability or as to the nature or severity of the disability, unless such examination or inquiry is shown to be job-related and consistent with business necessity;

maintaining the medical or disability-related information of applicants and employees in separate, confidential medical files; and

training employees who make hiring or personnel decisions on the requirements of the ADA, designating an individual to address ADA compliance matters, and reporting on compliance.

Parowan and Ruidoso must also ensure that their online employment opportunities website and job applications conform with the Web Content Accessibility Guidelines 2.0, which are industry guidelines for making web content accessible.

Those interested in finding out more about the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.

Related Material:

Espanola Settlement Agreement

Parowan Settlement Agreement

Ruidoso Settlement Agreement

Source: justice.gov

Washington, DC—(ENEWSPF)—May 5, 2015. The Justice Department’s Civil Rights Division announced today that a settlement has been reached with the Bullhead City Fire District (BCFD) in Arizona, resolving claims that BCFD violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA), by discriminating against U.S. Army Reserves Member Brett Guinan  and by failing to reemploy him following his military deployment.  USERRA protects the rights of uniformed service members to retain their civilian employment following absences due to military service obligations, and provides that service members shall not be discriminated against because of their military obligations.              

According to the complaint, filed yesterday in the United States District Court of the District of Arizona, BCFD discriminated against Guinan by terminating his employment on the basis of his military service.  The complaint alleges that, between 2008 and 2013, Guinan was deployed three times in the Army Reserves.  During his second military deployment, Guinan’s supervisor began making negative statements about Guinan’s military service obligations.  In June 2013, while Guinan was serving his third deployment, BCFD eliminated Guinan’s Fire Inspector position and terminated his employment, claiming to have undergone a “reduction in workforce.”  Guinan’s Fire Inspector position, however, was the only job position eliminated in 2013.  After Guinan’s position was eliminated, BCFD also continued to pay other people to perform Guinan’s Fire Inspector duties and continued to post new job openings on its website.  The complaint further alleges that after Guinan returned from his third deployment, he notified BCFD that he was seeking reemployment.  Despite Guinan’s efforts to be reemployed, BCFD refused to reemploy him as required by USERRA.

Under the terms of the settlement agreement, filed along with the complaint, BCFD has agreed to pay $75,000 as back pay and front pay damages to Guinan.  BCFD also has agreed to adopt a new personnel policy that informs employees of their rights and obligations under USERRA and to provide USERRA training to all supervisory staff in its five fire stations.

“This settlement will provide much needed relief to U.S. Army Reserve Member Brett Guinan, who lost his job simply for serving our country,” said Acting Associate Attorney General Stuart F. Delery.  “I want to thank the Department of Labor for referring this case to the Department of Justice. I’m hopeful that through the department’s newly created Servicemembers and Veterans Initiative, we will continue to build on our strong ties with federal partners and continue using every tool at our disposal to protect the rights of the men and women who serve in our Armed Forces.”

“The men and women who wear our nation’s uniform need to know that they will be protected from the types of injustice experienced by Mr. Guinan,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division.  “The Department of Justice, through its enforcement of USERRA, strongly supports the right of service members to retain their rightful positions in the workforce both while they serve and after they complete their military service to our country.”

This case stems from a referral by the U.S. Department of Labor (DOL), pursuant to an investigation by the DOL’s Veterans’ Employment and Training Service.  The case is being handled by the Employment Litigation Section of the Department of Justice’s Civil Rights Division, which works collaboratively with the DOL to protect the jobs and benefits of Army Reserves service members upon their return to civilian life.

The Justice Department’s Civil Rights Division has given a high priority to the enforcement of service members’ rights under USERRA.  Additional information about USERRA can be found on the Justice Department’s websites at www.usdoj.gov/crt/emp and www.servicemembers.gov, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.

Related Material:

Guinan Complaint

Guinan Settlement Agreement

Source: justice.gov

Company Must Pay $232.7 Million Penalty

Washington, DC--(ENEWSPF)--May 7, 2015.  The U.S. District Court of the District of Columbia entered a formal judgment yesterday memorializing the sentence requiring Schlumberger Oilfield Holdings Ltd. (SOHL), a wholly-owned subsidiary of Schlumberger Ltd, to pay a $232,708,356 penalty to the United States for conspiring to violate the International Emergency Economic Powers Act (IEEPA) by willfully facilitating illegal transactions and engaging in trade with Iran and Sudan.

The judgment was announced by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Vincent H. Cohen Jr. of the District of Columbia and Under Secretary Eric L. Hirschhorn of the U.S. Commerce Department’s Bureau of Industry and Security (BIS). 

At a hearing on April 30, 2015, the District Judge John D. Bates of the District of Columbia accepted the company’s guilty plea and sentenced the company to the proposed sentence articulated in the plea agreement, which called for the fine and other terms of corporate probation.  The court recognized the seriousness of SOHL’s criminal conduct, which posed a threat to our national security.  In addition, the court noted that the scope of criminal conduct justified the large monetary penalty imposed.  Finally, the court concluded that the terms of probation provided adequate deterrence to SOHL as well as other companies.  Yesterday, the court entered the written judgment confirming the sentence imposed on April 30, 2015.

“The court’s judgment represents a milestone in the enforcement of U.S. sanctions laws,” said Assistant Attorney General Carlin.  “This case marks the first conviction of a corporate entity for facilitating violations of the International Economic Emergency Powers Act and the highest criminal fine ever imposed in a sanctions prosecution.  The Court’s imposition of this serious sentence should serve as a strong deterrent for multinational corporations doing any business in countries subject to U.S. economic sanctions.”

“This guilty plea and sentence hold this company accountable for violating trade laws by doing business with sanctioned countries and undermining the interests of the United States,” said Acting U.S. Attorney Cohen. “We hope that other companies tempted to break our export laws take note of the $232.7 million penalty that will be paid in this case.”

The criminal information and plea agreement were filed on March 25, 2015, in federal court in the District of Columbia, charging SOHL with one count of knowingly and willfully conspiring to violate IEEPA.  The plea agreement that the court approved also requires SOHL to submit to a three-year period of corporate probation and agree to continue to cooperate with the government and not commit any additional felony violations of U.S. federal law.  SOHL’s monetary penalty includes a $77,569,452 criminal forfeiture and an additional $155,138,904 criminal fine.  The criminal fine represents the largest criminal fine in connection with an IEEPA prosecution.  In addition to SOHL’s commitments, under the plea agreement SOHL’s parent company, Schlumberger Ltd., has also agreed to the following terms during the three-year term of probation, among others: maintaining its cessation of all operations in Iran and Sudan, reporting on the parent company’s compliance with sanctions, responding to requests to disclose information and materials related to the parent company’s compliance with U.S. sanctions laws when requested by U.S. authorities, and hiring an independent consultant to review the parent company’s internal sanctions policies and procedures and the parent company’s internal audits focused on sanctions compliance. 

The court agreed that in addition to SOHL continuing its cooperation with U.S. authorities throughout the three-year period of probation and agreeing not to engage in any felony violation of U.S. federal law, SOHL’s parent company, Schlumberger Ltd., will also hire an independent consultant who will review the parent company’s internal sanctions policies, procedures and company-generated sanctions audit reports.

According to court documents, starting on or about early 2004 and continuing through June 2010, Drilling & Measurements (D&M), a United States-based Schlumberger business segment, provided oilfield services to Schlumberger customers in Iran and Sudan through non-U.S. subsidiaries of SOHL.  Although SOHL, as a subsidiary of Schlumberger Ltd., had policies and procedures designed to ensure that D&M did not violate U.S. sanctions, SOHL failed to train its employees adequately to ensure that all U.S. persons, including non-U.S. citizens who resided in the United States while employed at D&M, complied with Schlumberger Ltd.’s sanctions policies and compliance procedures.  As a result of D&M’s lack of adherence to U.S. sanctions combined with SOHL’s failure to train properly U.S. persons and to enforce fully its policies and procedures, D&M, through the acts of employees residing in the United States, violated U.S. sanctions against Iran and Sudan by: (1) approving and disguising the company’s capital expenditure requests from Iran and Sudan for the manufacture of new oilfield drilling tools and for the spending of money for certain company purchases; (2) making and implementing business decisions specifically concerning Iran and Sudan; and (3) providing certain technical services and expertise in order to troubleshoot mechanical failures and to sustain expensive drilling tools and related equipment in Iran and Sudan. 

The investigation that commenced in 2009 was led by the Justice Department’s National Security Division, the U.S. Attorney’s Office of the District of Columbia and the U.S. Department of Commerce BIS’ Dallas Field Office.  Assistant Attorney General Carlin is grateful to Special Agent Troy Shaffer from BIS’ Dallas Field Office for his excellent work.  Assistant Attorney General Carlin also acknowledged the work of those who handled the case from the National Security Division and the U.S. Attorney’s Office, including former Trial Attorney Ryan Fayhee and former Assistant U.S. Attorneys John Borchert and Ann H. Petalas.

The case was prosecuted by Trial Attorney Casey Arrowood of the National Security Division, Assistant U.S. Attorney Maia L. Miller of the National Security Section and Assistant U.S. Attorney Zia Faruqui of the District of Columbia.

Source: justice.gov

Washington, DC--(ENEWSPF)--May 7, 2015.  A federal grand jury has brought an additional charge against Christopher Lee Cornell, 21, of Green Township, Ohio.  In a superseding indictment returned in Cincinnati, he is now also charged with attempting to provide material support to a designated foreign terrorist organization.

The charge is in addition to the original Jan. 21, 2015, indictment that charged Cornell with attempting to kill officers and employees of the United States, solicitation to commit a crime of violence and possession of a firearm in furtherance of a crime of violence.  Cornell was charged for his alleged participation in a plot to attack the U.S. Capitol Building and kill government officials.

The superseding indictment, which was returned today, was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Carter M. Stewart of the Southern District of Ohio and Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Field Division.

The four-count superseding indictment alleges that on or about August 2014 through January 2015, Cornell allegedly plotted, planned and attempted to attack the U.S. Capitol.

The defendant is also alleged to have attempted to provide material support and resources to a foreign terrorist organization, specifically the Islamic State of Iraq and the Levant (ISIL), knowing that the organization was a designated foreign terrorist organization and that the organization had engaged in and was continuing to engage in terrorist activity.  Material support and resources consisted of personnel in the form of the defendant himself by plotting and attempting to execute an attack on the U.S. Capitol.

Cornell allegedly attempted to kill officers and employees of the United States during their official duties, specifically by attempting to attack the U.S. Capitol Building.  During that same time, the defendant allegedly attempted to persuade others to kill officers and employees of the United States.  Cornell also allegedly possessed two semi-automatic rifles and approximately 600 rounds of ammunition.

Providing material support to a designated foreign terrorist organization carries a potential maximum sentence of 15 years in prison.  Attempted murder of government employees and officials is a crime punishable by up to 20 years in prison.  Solicitation to commit an attempted murder is a crime punishable by 20 years in prison.  Possession of a firearm in furtherance of an attempted crime of violence is a crime punishable by a mandatory sentence of five years in prison.

Cornell was arrested on Jan. 14, 2015, by the FBI’s Joint Terrorism Task Force (JTTF).  The JTTF is made up of officers and agents from the Cincinnati Police Department; Colerain, Ohio, Police Department; Dayton, Ohio, Police Department; Ohio State Highway Patrol; U.S. Immigrations and Customs Enforcement; U.S. Secret Service; and West Chester, Ohio, Police Department.

Assistant Attorney General Carlin and U.S. Attorney Stewart commended the investigation of this case by the JTTF.  The case is being prosecuted by Trial Attorney Michael Dittoe of the Justice Department’s National Security Division and Assistant U.S. Attorney Tim Mangan of the Southern District of Ohio.

An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.

Related Material:

Cornell Superseding Indictment

Source: justice.gov

Washington, DC—(ENEWSPF)—May 7, 2015. Three California men and a Minnesota company were charged in an indictment today in the Southern District of Ohio for their roles in a massive prescription drug diversion scheme. 

The indictment alleges that David Jess Miller, 50, of Santa Ana, California; Artur Stepanyan, 38, and Mihran Stepanyan, 29, both of Encino, California, and Minnesota Independent Cooperative Inc. (MIC) engaged in a conspiracy to sell prescription drugs from illegal, unlicensed sources to wholesalers and pharmacies throughout the United States.  The 12-count indictment charges the defendants with conspiracy to commit mail and wire fraud, multiple counts of mail fraud, and conspiracy to distribute prescription drugs without a license and to make false statements.    

Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division, U.S. Attorney Carter M. Stewart of the Southern District of Ohio, Director George M. Karavetsos of the U.S. Food and Drug Administration (FDA)’s Office of Criminal Investigations and Assistant Inspector in Charge Christopher White of the U.S. Postal Inspection Service (USPIS) announced the charges. 

According to the indictment, from 2007 through April 2014, David Miller and his company, MIC, of Eagan, Minnesota, purchased prescription drugs from a network of illegal and unlicensed sources in New York, Florida and California.  Artur Stepanyan and Mihran Stepanyan, worked together to sell drugs from illegal sources to Miller and MIC.  Artur and Mihran Stepanyan, using a variety of company names, including Panda Capital Group, Red Rock Capital Group, Trans Atlantic Capital Group and GC National Wholesale, were Miller’s largest source of illegal drugs.  During the course of the conspiracy, Miller and MIC paid the Stepanyans approximately $160 million for these prescription drugs. 

“American consumers should be able to rely on the prescription drug supply chain,” said Principal Deputy Assistant Attorney General Mizer.  “Prescription drug diversion schemes like the one charged in this indictment undermine that supply chain and increase the risk that counterfeit, adulterated, misbranded, sub-potent or expired drugs will be sold to patients and consumers.” 

To hide the true, illegal sources of their prescription drugs, David Miller and MIC falsified so-called drug pedigree documents.  Pedigrees are documents required by law that show the source of drugs.  For most of the conspiracy, the fraudulent pedigrees falsely listed B&Y Wholesale, a company located in Puerto Rico and co-owned by co-conspirator Yusef Yassin Gomez (Yassin) as the source of the drugs.  The pedigree documents also falsely stated that Yassin’s company was an authorized distributor of the drugs.  On Feb. 19, 2014, Yassin pleaded guilty in U.S. District Court for the Southern District of Ohio to conspiracy to engage in the wholesale distribution of prescription drugs without a wholesale license.  In connection with his guilty plea, Yassin admitted the he agreed to allow Miller and MIC to use his company’s name on pedigree documents to hide the true drug sources.  In exchange, Miller and MIC paid Yassin a commission on all of the drug sales. 

 “Once a prescription drug is diverted outside of the regulated distribution channels, it becomes difficult, if not impossible, for regulators, law enforcement and end-users to know whether the prescription drug package actually contains the correct drug or the correct dose,” said U.S. Attorney Stewart.  “We will aggressively prosecute individuals and companies that ignore the law and sell illegally diverted prescription drugs to pharmacies, and ultimately, to American consumers.

“We are committed to protecting the integrity of the pharmaceutical supply chain, especially as criminals go to more extreme measures to subvert it,” said FDA’s Office of Criminal Investigations Director Karavetsos. “We will continue to pursue these criminals and work to bring them to justice.”

“The Postal Inspection Service is proud to partner with the FDA Office of Criminal Investigations to bring to bear our mail fraud expertise to help the fight against drug diversion,” said USPIS Assistant Inspector in Charge White.

Throughout the course of the conspiracy charged in the indictment, using these fraudulent pedigree documents, Miller and MIC sold approximately $393 million worth of prescription drugs to wholesalers and retail pharmacies throughout the United States, including to multiple customers in the Southern District of Ohio. 

In addition to Yassin, two of Miller’s other illegal drug suppliers, Peter Kats and Joseph Dallal, previously pleaded guilty to conspiracy to commit mail and wire fraud for their sales of illegally-diverted prescription drugs to Miller and MIC. 

This matter is being investigated by the FDA and USPIS.  Assistant U.S. Attorneys Anne L. Porter and Christy Muncy of the Southern District of Ohio and Trial Attorney John W. Burke of the Civil Division’s Consumer Protection Branch are prosecuting this case.

David Miller, Artur Stepanyan, and Mihran Stepanyan were charged amongst 30 other individuals in the Northern District of California in a separate indictment on charges including federal Racketeer Influenced and Corrupt Organizations (RICO) Act; conspiracy to commit identity theft; conspiracy to commit access device fraud; conspiracy to commit mail, wire, and bank fraud; money laundering conspiracy; and conspiracy to distribute prescription drugs without a wholesale license.

The charges in the indictment are merely allegations, and do not constitute proof of guilt.  Every defendant is presumed to be innocent unless and until proven guilty.

Related Material:

Download Indictment (5.27 MB)

Source: justice.gov

Washington, DC--(ENEWSPF)--May 7, 2015. The Justice Department announced today that 16 separate hospitals and their respective corporate parents have agreed to collectively pay $15.69 million to resolve False Claims Act allegations that the providers sought and received reimbursement from Medicare for services that were not medically reasonable or necessary, the U.S. Department of Justice announced today. 

“Hospitals that participate in the Medicare program must ensure that the services they provide and bill for are based on the medical needs of patients rather than the desire to maximize profits,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division.  “The Department of Justice is committed to ensuring that those who seek to abuse the Medicare program will be held accountable for their actions.”

This case concerns claims to Medicare for Intensive Outpatient Psychotherapy (IOP) services.  IOP services represent a continuation of ambulatory psychiatric services and provide active treatment to individuals with mental disorders using a variety of treatment methods.  Medicare will pay for an appropriate course of IOP treatment provided a number of specific requirements are met including, most notably, that the services in question are reasonable and necessary for the diagnosis and treatment of the patient’s condition.

These settlements resolve allegations that, beginning as early as 2005 and in some cases continuing into 2013, the hospitals knowingly submitted claims for IOP services that did not qualify for Medicare reimbursement because: the patient’s condition did not qualify for IOP; the patient’s treatments were not provided pursuant to an individualized treatment plan designed to help the patient address specific mental health needs and reach achievable goals; the patient’s progress was not being adequately tracked or documented; the patient received an inappropriate level of treatment; and/or the therapy provided was primarily recreational or diversional in nature, and not therapeutic.  The IOP services in question were typically performed on the providers’ behalf by Allegiance Health Management (Allegiance), a post-acute healthcare management company based in Shreveport, Louisiana, but billed to Medicare by the providers.

The providers who have reached agreements to resolve these allegations with the United States include:

Health Management Associates Inc. (HMA), and the following 14 hospitals formerly owned and operated by HMA: Central Mississippi Medical Center in Mississippi, Crossgate River Oaks in Mississippi, Dallas Regional Medical Center in Texas, Davis Regional Medical Center in North Carolina, East Georgia Regional Medical Center in Georgia, Gilmore Regional Medical Center in Mississippi, Lake Norman Regional Medical Center in North Carolina, Lehigh Regional Medical Center in Florida, Medical Center of Southeastern Oklahoma in Oklahoma, Natchez Community Hospital in Mississippi, Northwest Mississippi Regional Medical Center in Mississippi, Santa Rosa Medical Center in Florida, Southwest Regional Medical Center in Arkansas, and Summit Medical Center in Arkansas, which agreed to collectively pay $15 million;

Community Health Systems and its subsidiary Wesley Medical Center in Mississippi, which agreed to pay $210,000; and

North Texas Medical Center in Texas, which agreed to pay $480,000.

In October 2013, the United States resolved similar allegations with LifePoint Hospitals Inc. and two of its subsidiaries, PHC-Minden L.P., doing business as Minden Medical Center, and PHC-Cleveland Inc., doing business as Bolivar Medical Center, which collectively paid $4,672,469.80.

“This case demonstrates that the U.S. Attorney’s Office for the Eastern District of Arkansas will aggressively pursue civil health care fraud cases, where the integrity of the Medicare system has been undermined,” said U.S. Attorney Christopher R. Thyer of the Eastern District of Arkansas.  “Medical care providers who abuse Medicare hurt all taxpayers, and today’s announcement highlights our commitment to protecting our national health care system, as well as the Arkansans who depend on it.”

“Our agency is dedicated to investigating health care fraud schemes such as this, which divert scarce taxpayer funds meant to provide for legitimate patient care, including services for the often underserved mentally ill population,” said Special Agent in Charge Mike Fields of U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG).

The allegations resolved by today’s settlements arose from a lawsuit filed under the False Claims Act.  The act allows private individuals known as “relators” to sue on behalf of the United States and to share in the proceeds of any settlement or judgment that may result.  The relator in this case will receive $2,667,300. 

These settlements were the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Eastern District of Arkansas and HHS’ Office of Audit Statistics and OIG.

These settlements illustrate the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of more than $24 billion through False Claims Act cases, with more than $15.3 billion of that amount recovered in cases involving fraud against federal health care programs.

The claims settled by these agreements are allegations only, and there has been no determination of liability. 

Source: justice.gov

Alleges Violation of Employment Rights of Sergeant in Army National Guard

Washington, DC—(ENEWSPF)—May 7, 2015. The Department of Justice announced today it has filed a civil complaint against a South Jersey company for failing to re-employ a former employee when she returned from a National Guard deployment, a violation of federal law.

The civil lawsuit, filed in Camden federal court, alleges that Healthcare Commons Inc., of Carneys Point, New Jersey, willfully violated the Uniformed Services Employment and Re-employment Rights Act of 1994 (USERRA).  USERRA protects the rights of uniformed service members to retain their civilian employment following absences due to military service obligations and provides that they shall not be discriminated against because of their military obligations.  

Megan Toliver, 32, of New Castle, Delaware, is a former employee of Healthcare Commons.  She joined the U.S. Army National Guard in September 2004 and, most recently, had served as a sergeant, with honorable service as a mental health specialist.  According to the complaint, when Toliver returned from her military deployment in May 2014, Healthcare Commons willfully violated USERRA by not re-employing her as a mental health screener or in another comparable position. 

“No person should lose their job for serving our country, but according to our complaint that’s exactly what happened to a National Guard member here,” said Acting Associate General Stuart F. Delery. “Today’s filing is one more example of the Department of Justice’s commitment to protecting the men and women who serve in our Armed Forces from discrimination and unlawful actions.”

“The filing of this case reinforces the commitment of the Department of Justice to the vigorously enforce the prohibition of employment discrimination based on military service,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division.  “I want to thank the Department of Labor for referring this case to the Department of Justice.  I’m hopeful that through the department’s newly created Servicemembers and Veterans Initiative, we will continue to build on our strong ties with federal partners and continue using every tool at our disposal to protect the rights of the men and women who serve in our Armed Forces.”

“The men and women who serve in our armed forces here and abroad do so at great personal sacrifice,” said U.S. Attorney Paul Fishman of the District of New Jersey.  “Because of that sacrifice, federal law guarantees that they have the opportunity to resume their careers when they’ve completed their service.  When companies seek to skirt their obligations to re-employ our returning veterans, we will hold them accountable.”

The case was referred by U.S. Department of Labor following an investigation by the department’s Veterans’ Employment and Training Service.

The plaintiff is represented by Special Litigation Counsel Andrew Braniff of the Civil Rights Division and Assistant U.S. Attorney Michael E. Campion of the District of New Jersey.

In March 2015, the Attorney General created the Servicemembers and Veterans Initiative, which is led by three dedicated career Justice Department attorneys with strong ties to the military community.  They will further the department’s existing efforts by coordinating and expanding enforcement, outreach, and training efforts on behalf of service members, veterans and their families.  The initiative will address the unique challenges that service members face while on active duty, that veterans face upon returning home, and that families face when a loved one is deployed.

Additional information about USERRA can be found on the Justice Department’s websites at www.usdoj.gov/crt/emp and www.servicemembers.gov, the U.S. Attorney’s Office website at www.justice.gov/usao-nj and the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.

Related Material:

Download Toliver Complaint (17.44 KB)

Source: justice.gov

Washington, DC—(ENEWSPF)—May 7, 2015. Thirty-two people were arrested yesterday after being charged variously with racketeering conspiracy, conspiracy to commit identity theft, conspiracy to commit access device fraud, conspiracy to commit mail, wire and bank fraud, conspiracy to commit money laundering, conspiracy to use a facility of interstate commerce to commit murder-for-hire and conspiracy to engage in the unlicensed wholesale distribution of drugs, announced U.S. Attorney Melinda Haag of the Northern District of California, Special Agent in Charge David J. Johnson of the Federal Bureau of Investigation, and Special Agent in Charge José M. Martinez of Internal Revenue Service (IRS) Criminal Investigation.  A thirty-third defendant remains at large and is subject to an active arrest warrant.

According to an indictment that was unsealed yesterday, Ara Karapedyan, 45, Mihran Stepanyan, 29, and Artur Stepanyan, 38, were at the center of a nationwide conspiracy—with at least 18 other person—to conduct the affairs of a wide-ranging criminal enterprise through a pattern of racketeering.  This enterprise was fueled by a broad range of criminal activity including unlicensed wholesale drug distribution, money laundering and fraud.  The indictment names 33 defendants in all and describes an enterprise that spanned throughout California as well as in Minnesota, Ohio and Puerto Rico.

One key aspect of the alleged criminal activity described in the indictment was a multi-million dollar prescription drug diversion scheme.  Members and associates of the enterprise are alleged to have procured prescription drugs from unlicensed sources and to have resold the drugs to unknowing customers.  A central figure to these allegations is David Miller, 50.  Miller is alleged to be the owner and operator of a drug wholesaler called Minnesota Independent Cooperative (MIC) that, between 2010 and 2014, bought approximately $157 million of drugs from Mihran Stepanyan and Artur Stepanyan.  Miller and his employees allegedly knew the Stepanyans were not licensed to sell drugs and knew the Stepanyans procured their drugs through unlicensed sources.  Miller and his employees nevertheless purchased the drugs from the Stepanyans’ various companies, including Panda Capital Group, Red Rock Capital, Trans Atlantic Capital, GC National Wholesale, Sky Atlantic Capital and Nationwide Payment Solutions and resold the drugs as legitimate products.

A separate investigation has resulted in another indictment in the Southern District of Ohio charging David Miller, Mihran Stepanyan, Artur Stepanyan and MIC with various crimes arising from their sale of millions of dollars of illicitly-procured drugs.

The indictment also charges Karapedyan and his associates with engaging in the fraudulent unlicensed distribution of drugs.  For instance, from 2013 through 2015, Karapedyan, either personally or through an associate, sold several hundred thousand dollars’ worth of drugs such as Abilify, Liboderm, Cymbalta and Namenda, as well as HIV drugs such as Atripla, Truvada and Isentress and the cancer drug Gleevec.  Likewise, from roughly the latter part of 2014 through early 2015, Karapdyan and his racketeer co-conspirator Maxwell Starsky, 36, sold to another complicit wholesaler more than $1 million in illicitly procured drugs.  Karapedyan also supplied the Stepanyans with drugs.

Hugo Marquez, 41, Eric Figueroa, 29, Arman Zagaryan, 32, and their associates are likewise charged with procuring drugs from unlicensed sources and distributing the drugs to buyers.  According to the indictment, Alexander Soliman, 46, was one of their principal customers.  Between roughly 2012 and 2014, Soliman, through his companies Apex Pharmaceuticals and Maroon Pharma, knowingly purchased illicitly-procured drugs from Marquez, Figueroa and Zagaryan and then re-sold them as legitimate drugs.  During this time period, Marquez, Figueroa, Zargaryan and Soliman engaged in the distribution of more than $20 million worth of drugs.

Another aspect of the alleged criminal activity is a massive check and bank fraud operation.  As part of the enterprise, Karapedyan and his associates, including Asatour Magzanyan, 53, Tigran Sarkisyan, 38, and Hripsime Khachtryan, 41, allegedly used fraudulent identification information to prepare fraudulent tax returns, which were then filed with the government in order to induce the U.S. Treasury to issue tax refund checks.  Karapedyan associate Khachig Geuydjian, 74, allegedly used his unlicensed mail-box business to provide addresses for these fraudulent tax filings.  They and other members and associates of the enterprise then negotiated the tax refund checks using fraudulent identities or through a complicit check cashing business operated by Jean Dukmajian, 61, Karine Dukmajian, 33, and Angela Dukmajian, 26.  In addition to the tax refund scheme, members and associates of the enterprise also engaged in negotiating counterfeit and stolen checks.  In all, from roughly late 2012 to late 2014, Karapedyan and his associates negotiated more than 500 fraudulent checks worth more than $5 million.

In addition to the fraudulent unlicensed distribution of drugs and negotiating fraudulent checks, Karapedyan, the Stepanyans, Miller and others are charged with conspiring to launder money in an effort to promote their criminal activities and to conceal proceeds collected from their criminal activities.  For example, a description of Miller’s activity between 2012 through 2014, wherein he attempted to hide the fact he was paying the Stepanyans for drugs is alleged in the indictment.  The indictment further alleges Miller made the payments to the Stepanyans’ company GC National Wholesale through companies in Puerto Rico he controlled, such as B&Y Wholesalers and FMC Distributors.  The payments were for sales of drugs that the Stepanyans actually delivered to Miller’s company MIC.  Similarly, the indictment includes allegations Karapedyan and Starsky also arranged payments for more than $1 million of illicitly-procured drugs through a shell company.  In addition, Karapedyan also allegedly laundered money for the Stepanyans.  According to the indictment, in 2013, the Stepanyans transferred more than $1 million in proceeds derived from MIC to Karapedyan, who caused the money to be withdrawn as cash.

Furthermore, in addition to the foregoing, defendants Karapedyan and Gevork Ter-Mkrtchyan are charged with conspiring to use a facility of interstate commerce to commit murder-for-hire.  According to the indictment, these defendants made several attempts to find a person who would be willing to kill someone who had angered Ter-Mkrtchyan.  Although the defendants paid $1,500 for the hit, it was never carried out.

According to the indictment, a significant portion of the criminal activity took place in the Northern District of California.  For example, one delivery of drugs took place in the Northern District of California and many of the checks were negotiated in the Northern District as well.  In addition, much of the proceeds from the check and the drug schemes were laundered through the Northern District of California, where Karapedyan and his associates regularly picked up large amounts of cash.  In addition, Miller’s company, MIC, posted fraudulent information relating to the origins of the drugs he sold via a website.  The website was maintained by an Internet service provider in the Northern District of California.  Furthermore, Karapedyan made numerous calls to the Northern District of California in order to find individuals willing to perform the hit he sought.

An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.   All the defendants except Miller were arrested yesterday.  Miller remains at large and is the subject of an active arrest warrant. 

In sum, the indictment includes seven counts as follows: count One, RICO conspiracy, in violation of 18 U.S.C. § 1962(d) (maximum term of imprisonment, life or 20 years); Count Two, conspiracy to commit identity theft, in violation of 18 U.S.C. §  1028(f) (maximum term of imprisonment, 15 years); Count Three, conspiracy to commit access device fraud, 18 U.S.C. § 1029(b)(2) (maximum term of imprisonment, 5 years); Count Four, conspiracy to commit mail, wire, and bank fraud, in violation of 18 U.S.C. § 1349; Count Five, conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h) (maximum term of imprisonment, 20 years); Count Six, conspiracy to use interstate facility to commit murder-for-hire, in violation of 18 U.S.C. § 1958); Count Seven, conspiracy to engage in unlicensed wholesale distribution of drugs, in violation of 18 U.S.C. § 371 (maximum term of imprisonment, 5 years).

The following charges apply as against the following defendants are: Ara Karapedyan on Counts one through seven, Mihran Stepanyan on counts one through five and seven, Artur Stepanyan on counts one through five and seven, Gevork Ter-Mkrtchyan on counts 1-7, Khachig Geuydjian on counts one through five, Arman Petrosyan on counts one through five, Lanna Karapedyan on counts one through five, Maxwell Starsky on counts one through five and seven, Sevak Gharghani on counts one through five and seven, Jean Dukmajian, on counts one through five, Karine Dukmajian on counts one through five, Angela Dukmajian on counts one through five, Arman Danielian count one, four, five and seven, Asatour Magzanyan conts one through five, Tigran Sarkisyan counts one through five, Hripsime Khachtryan counts one through five, Loui Artin on counts one through five, Hugo Marquez on counts one through five and seven, Arman Zargaryan on counts one through five and seven, Dmitriy Kustov on counts two through four, Michael Inman on counts two through four, Araxia Nazaryian on counts two five and seven, Alexander Soliman on counts four, five and seven, Cheryl Barndt on counts four, five and seven, Eric Figueroa on counts four, five and seven, Marc Asheghian on counts four, five and seven, Michael Asheghian on counts four, five and seven, David Milleron counts one through five and seven, James Russoon on counts four, five and seven, Jeannette Couch counts four, five and seven, Marie Polichetti counts four, five and seven, Bernardo Guillen counts four, five and seven, Javier Ramirez on counts four and seven.

Additional periods of supervised release, fines and special assessments also could be imposed.  Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Thirty-one defendants appeared before the Honorable Victor B. Kenton and Michael R. Wilner in the Central District of California on Wednesday, May 6, 2015, to be advised of the charges against them and to determine conditions of release.  Some of those hearings have been continued at the request of the defendants.  Specifically, the bail hearing for Eric Figueroa has been continued to Friday, May 8, 2015, and the hearings for Hugo Marquez and Michael Inman have been continued to Monday, May 11, 2015, before the Honorable Michael R. Wilner.  In addition, Karapedyan will appear on Friday, May 8, 2015, before the Honorable Victor B. Kenton. 

Further, Ter-Mkrtchyan has requested a hearing in which the government will be required to prove his identity, i.e., that he is the individual named in the indictment.  That hearing will occur on Friday, May 8, 2015, before the Honorable Victor B. Kenton. 

The remaining 26 defendants have been ordered to appear before the Honorable Jacqueline Scott Corley in the Northern District of California. Alexander Soliman, Araxia Nazaryian and Asatour Magzanyan will appear on May 12, 2015.  Cheryl Barndt, Marc Asheghian, Michael Asheghian, Hripsime Khachtryan, Bernardo Guillen, Javier Ramirez, Jean Dukmajian, Karine Dukmajian, Angela Dukmajian, Khachig Geuydjian and Arman Zargaryan will appear on May 20, 2015.  Jeannette Couch, Loui Artin, Dmitriy Kustov, Marie Polichetti, Arman Danielian, Lanna Karapedyan, Sevak Gharghani, Arman Petrosyan and Maxwell Starsky will appear on May 22, 2015.

Mihran Stepanyan, Artur Stepanyan and Tigran Sarkisyan are being transported to the Northern District of California by the U.S. Marshal Service and will make court appearances after their arrival.

Assistant U.S. Attorneys Damali A. Taylor, David Countryman and W.S. Wilson Leung are prosecuting the case with the assistance of Lance Libatique, Ponly Tu, Daniel Charlier-Smith.  The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service.

Related Material:

Download Karapedyan Indictment (3.37 MB)

Source: justice.gov

Washington, DC--(ENEWSPF)--May 1, 2015. Former Puerto Rico Police Officers Jimmy Rodriguez Vega and David Colon Martinez were sentenced today for civil rights and obstruction of justice violations related to the fatal beating of Jose Luis Irizarry Perez, 19, announced Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division, U.S. Attorney Rosa Emilia Rodriguez-Velez of the District of Puerto Rico and Special Agent in Charge Carlos Cases of the FBI San Juan Field Office.  Rodriguez Vega was sentenced to serve 33 months months in prison for violating Irizarry Perez’s civil rights by striking him with a police baton during the incident, and Colon Martinez was sentenced to serve 24 months for making false statements to a Special Agent of the Federal Bureau of Investigation (FBI) and to the federal grand jury during the federal civil rights investigation.

With the issuance of today’s sentences, all six former Puerto Rico police officers who pled guilty for their roles in the beating and obstruction of the subsequent civil rights investigation have been sentenced.  According to documents filed in connection with the underlying guilty pleas, Rodriguez Vega and former Puerto Rico Police Sergeant Erick Rivera Nazario violated the constitutional rights of Irizarry Perez by striking him with their police batons while Colon Martinez physically restrained Irizarry Perez during an election evening celebration at the Las Colinas housing development in Yauco, Puerto Rico, on Nov. 5, 2008.  As part of his guilty plea, Rodriguez Vega admitted that after Rivera Nazario struck Irizarry Perez, while he was restrained and not posing a threat to any officer, Rodriguez Vega swung his own police baton as if it were a baseball bat into the victim’s forehead.  In conjunction with his guilty plea, Colon Martinez admitted that he falsely told the FBI and the grand jury that he did not see anyone else hit Irizarry Perez, whereas in truth he observed Rodriguez Vega and Rivera Nazario swing their batons into Irizarry Perez’s head and upper body, after which the victim collapsed to the ground.

U.S. District Court Judge Juan M. Perez Gimenez issued the sentence, which will be followed by three years of supervised release.  During the three-year term, the defendants will be under federal supervision, and risk additional prison time should they violate any terms of their supervised release. 

“The former police officers convicted for their roles in the fatal beating and obstruction of the subsequent investigation violated their sworn oaths to the young victim, his family, and the public at large,” said Principal Deputy Assistant Attorney General Gupta.  “Unfortunately, egregious civil rights violations by a few individuals, such as in this case, damage the public’s trust in law enforcement.  That’s why the department will steadfastly continue to investigate and prosecute these matters, but also work with law enforcement to rebuild that trust and ensure all individuals’ civil rights are protected under the law.”

 “Today’s sentencing brings a measure of justice to the family of Jose Luis Irizarry Perez,” said U.S. Attorney Rodriguez-Vélez.  “The U.S. Attorney’s Office reaffirms its commitment to vigorously prosecute those who abuse their power and official positions at the expense of constitutionally guaranteed civil rights.”

This case was investigated by the FBI’s San Juan Division and is being prosecuted by Senior Litigation Counsel Gerard Hogan and Trial Attorneys Shan Patel and Olimpia E. Michel of the Civil Rights Division and Assistant U.S. Attorney Jose A. Contreras of the District of Puerto Rico.

Source: justice.gov

Washington, DC--(ENEWSPF)--May 1, 2015.  In a settlement agreement with the Navajo Nation, the U.S. will place $13.2 million into an environmental response trust to pay for the evaluations of 16 priority abandoned uranium mines located across Navajo lands.  The investigation of these sites is a necessary step before final cleanup decisions can be made.  The work to be conducted is subject to the approval of the Navajo Nation as the lead agency and the Environmental Protection Agency (EPA) as the supporting agency. 

“This agreement is part of the Justice Department’s increased focus on environmental and health concerns in Indian country as well as the commitment of the Obama Administration to fairly resolve the historic grievances of American Indian tribes and build a healthier future for their people,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division.  “The site evaluations focus on the mines that pose the most significant hazards and will form a foundation for their final cleanup.  In partnership with our sister federal agencies, we will also continue our work to address the legacy of uranium mining on Navajo lands, including ongoing discussions with the Navajo Nation.”

“EPA is proud to help implement this historic settlement,” said Regional Administrator Jared Blumenfeld for EPA for the Pacific Southwest.  “It dovetails with our ongoing activities as we work together to make real progress on the environmental legacy of uranium mining on the Navajo Nation.”

The Navajo Nation encompasses more than 27,000 square miles within Utah, New Mexico and Arizona in the Four Corners area.  The unique geology of the region makes the Navajo Nation rich in uranium, a radioactive ore in high demand after the development of atomic power and weapons at the close of World War II.  Approximately four million tons of uranium ore were extracted during mining operations within the Navajo Nation from 1944 to 1986.  The federal government, through the Atomic Energy Commission (AEC), was the sole purchaser of uranium until 1966, when commercial sales of uranium began.  The AEC continued to purchase ore until 1970.  The last uranium mine on the Navajo Nation shut down in 1986.  Many Navajo people worked in and near the mines, often living and raising families in close proximity to the mines and mills.

Since 2008, a number of federal agencies including EPA, the Department of Energy, the Bureau of Indian Affairs, the Department of the Interior, the Nuclear Regulatory Commission and the Indian Health Service have been collaborating to address uranium contamination on the Navajo Nation.  The federal government has invested more than $100 million to address abandoned uranium mines on Navajo lands.  EPA has remediated 34 homes, provided safe drinking water to 1,825 families, conducted field screening at 521 mines, compiled a list of 46 “priority mines” for cleanup and performed stabilization or cleanup work at nine mines. This settlement agreement resolves the claims of the Navajo Nation pertaining to costs of evaluations at 16 of the 46 priority mines for which no viable responsible private party has been identified.

In April 2014, the Justice Department and EPA announced in a separate matter that approximately $985 million of a multi-billion dollar settlement of litigation against subsidiaries of Anadarko Petroleum Corp. will be paid to EPA to fund the clean-up of approximately 50 abandoned uranium mines in and around the Navajo Nation, where radioactive waste remains from Kerr-McGee mining operations.

Source: justice.gov

Washington, DC—(ENEWSPF)—May 5, 2015. The Justice Department announced today that it reached settlement agreements with the city of Parowan, Utah; the city of Española, New Mexico; and the village of Ruidoso, New Mexico.  The agreements resolve investigations of each public entity under Title I of the Americans with Disabilities Act (ADA).  The investigations found that each jurisdiction’s online employment application asked questions about disabilities in violation of the ADA.  The ADA does not permit employers to inquire as to whether an applicant is an individual with a disability or as to the nature of such disability before making a conditional offer of employment.  Under Section 503 of the Rehabilitation Act of 1973, however, federal contractors subject to affirmative action requirements must invite an applicant voluntarily to self-identify as an individual with a disability, consistent with certain requirements. 

Two investigations also found that the public entity’s online employment opportunities website or job applications were not fully accessible to people with disabilities, such as those who are blind or have low vision, are deaf or hard of hearing, or have physical disabilities affecting manual dexterity (such as limited ability to use a mouse).  In recent months, the department reached similar settlement agreements with the cities of DeKalb, Illinois; Vero Beach, Florida; Fallon, Nevada; Isle of Palms, South Carolina; Hubbard, Oregon; and Florida State University. 

“These agreements ensure that job applicants with disabilities will have an equal chance to compete for jobs in the public sector and won’t face illegal questions,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division.  “We commend each public entity for its cooperation in making the job application process more accessible.”   

Under the settlement agreements, each public entity agrees to ensure that its hiring policies and procedures do not discriminate against any applicant on the basis of disability, including by:

not conducting a medical examination or making a disability-related inquiry of a job applicant before a conditional offer of employment is made;

not requiring a medical examination or making inquiries of an employee as to whether such employee is an individual with a disability or as to the nature or severity of the disability, unless such examination or inquiry is shown to be job-related and consistent with business necessity;

maintaining the medical or disability-related information of applicants and employees in separate, confidential medical files; and

training employees who make hiring or personnel decisions on the requirements of the ADA, designating an individual to address ADA compliance matters, and reporting on compliance.

Parowan and Ruidoso must also ensure that their online employment opportunities website and job applications conform with the Web Content Accessibility Guidelines 2.0, which are industry guidelines for making web content accessible.

Those interested in finding out more about the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.

Related Material:

Espanola Settlement Agreement

Parowan Settlement Agreement

Ruidoso Settlement Agreement

Source: justice.gov

Washington, DC—(ENEWSPF)—May 5, 2015. The Justice Department’s Civil Rights Division announced today that a settlement has been reached with the Bullhead City Fire District (BCFD) in Arizona, resolving claims that BCFD violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA), by discriminating against U.S. Army Reserves Member Brett Guinan  and by failing to reemploy him following his military deployment.  USERRA protects the rights of uniformed service members to retain their civilian employment following absences due to military service obligations, and provides that service members shall not be discriminated against because of their military obligations.              

According to the complaint, filed yesterday in the United States District Court of the District of Arizona, BCFD discriminated against Guinan by terminating his employment on the basis of his military service.  The complaint alleges that, between 2008 and 2013, Guinan was deployed three times in the Army Reserves.  During his second military deployment, Guinan’s supervisor began making negative statements about Guinan’s military service obligations.  In June 2013, while Guinan was serving his third deployment, BCFD eliminated Guinan’s Fire Inspector position and terminated his employment, claiming to have undergone a “reduction in workforce.”  Guinan’s Fire Inspector position, however, was the only job position eliminated in 2013.  After Guinan’s position was eliminated, BCFD also continued to pay other people to perform Guinan’s Fire Inspector duties and continued to post new job openings on its website.  The complaint further alleges that after Guinan returned from his third deployment, he notified BCFD that he was seeking reemployment.  Despite Guinan’s efforts to be reemployed, BCFD refused to reemploy him as required by USERRA.

Under the terms of the settlement agreement, filed along with the complaint, BCFD has agreed to pay $75,000 as back pay and front pay damages to Guinan.  BCFD also has agreed to adopt a new personnel policy that informs employees of their rights and obligations under USERRA and to provide USERRA training to all supervisory staff in its five fire stations.

“This settlement will provide much needed relief to U.S. Army Reserve Member Brett Guinan, who lost his job simply for serving our country,” said Acting Associate Attorney General Stuart F. Delery.  “I want to thank the Department of Labor for referring this case to the Department of Justice. I’m hopeful that through the department’s newly created Servicemembers and Veterans Initiative, we will continue to build on our strong ties with federal partners and continue using every tool at our disposal to protect the rights of the men and women who serve in our Armed Forces.”

“The men and women who wear our nation’s uniform need to know that they will be protected from the types of injustice experienced by Mr. Guinan,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division.  “The Department of Justice, through its enforcement of USERRA, strongly supports the right of service members to retain their rightful positions in the workforce both while they serve and after they complete their military service to our country.”

This case stems from a referral by the U.S. Department of Labor (DOL), pursuant to an investigation by the DOL’s Veterans’ Employment and Training Service.  The case is being handled by the Employment Litigation Section of the Department of Justice’s Civil Rights Division, which works collaboratively with the DOL to protect the jobs and benefits of Army Reserves service members upon their return to civilian life.

The Justice Department’s Civil Rights Division has given a high priority to the enforcement of service members’ rights under USERRA.  Additional information about USERRA can be found on the Justice Department’s websites at www.usdoj.gov/crt/emp and www.servicemembers.gov, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.

Related Material:

Guinan Complaint

Guinan Settlement Agreement

Source: justice.gov

Company Must Pay $232.7 Million Penalty

Washington, DC--(ENEWSPF)--May 7, 2015.  The U.S. District Court of the District of Columbia entered a formal judgment yesterday memorializing the sentence requiring Schlumberger Oilfield Holdings Ltd. (SOHL), a wholly-owned subsidiary of Schlumberger Ltd, to pay a $232,708,356 penalty to the United States for conspiring to violate the International Emergency Economic Powers Act (IEEPA) by willfully facilitating illegal transactions and engaging in trade with Iran and Sudan.

The judgment was announced by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Vincent H. Cohen Jr. of the District of Columbia and Under Secretary Eric L. Hirschhorn of the U.S. Commerce Department’s Bureau of Industry and Security (BIS). 

At a hearing on April 30, 2015, the District Judge John D. Bates of the District of Columbia accepted the company’s guilty plea and sentenced the company to the proposed sentence articulated in the plea agreement, which called for the fine and other terms of corporate probation.  The court recognized the seriousness of SOHL’s criminal conduct, which posed a threat to our national security.  In addition, the court noted that the scope of criminal conduct justified the large monetary penalty imposed.  Finally, the court concluded that the terms of probation provided adequate deterrence to SOHL as well as other companies.  Yesterday, the court entered the written judgment confirming the sentence imposed on April 30, 2015.

“The court’s judgment represents a milestone in the enforcement of U.S. sanctions laws,” said Assistant Attorney General Carlin.  “This case marks the first conviction of a corporate entity for facilitating violations of the International Economic Emergency Powers Act and the highest criminal fine ever imposed in a sanctions prosecution.  The Court’s imposition of this serious sentence should serve as a strong deterrent for multinational corporations doing any business in countries subject to U.S. economic sanctions.”

“This guilty plea and sentence hold this company accountable for violating trade laws by doing business with sanctioned countries and undermining the interests of the United States,” said Acting U.S. Attorney Cohen. “We hope that other companies tempted to break our export laws take note of the $232.7 million penalty that will be paid in this case.”

The criminal information and plea agreement were filed on March 25, 2015, in federal court in the District of Columbia, charging SOHL with one count of knowingly and willfully conspiring to violate IEEPA.  The plea agreement that the court approved also requires SOHL to submit to a three-year period of corporate probation and agree to continue to cooperate with the government and not commit any additional felony violations of U.S. federal law.  SOHL’s monetary penalty includes a $77,569,452 criminal forfeiture and an additional $155,138,904 criminal fine.  The criminal fine represents the largest criminal fine in connection with an IEEPA prosecution.  In addition to SOHL’s commitments, under the plea agreement SOHL’s parent company, Schlumberger Ltd., has also agreed to the following terms during the three-year term of probation, among others: maintaining its cessation of all operations in Iran and Sudan, reporting on the parent company’s compliance with sanctions, responding to requests to disclose information and materials related to the parent company’s compliance with U.S. sanctions laws when requested by U.S. authorities, and hiring an independent consultant to review the parent company’s internal sanctions policies and procedures and the parent company’s internal audits focused on sanctions compliance. 

The court agreed that in addition to SOHL continuing its cooperation with U.S. authorities throughout the three-year period of probation and agreeing not to engage in any felony violation of U.S. federal law, SOHL’s parent company, Schlumberger Ltd., will also hire an independent consultant who will review the parent company’s internal sanctions policies, procedures and company-generated sanctions audit reports.

According to court documents, starting on or about early 2004 and continuing through June 2010, Drilling & Measurements (D&M), a United States-based Schlumberger business segment, provided oilfield services to Schlumberger customers in Iran and Sudan through non-U.S. subsidiaries of SOHL.  Although SOHL, as a subsidiary of Schlumberger Ltd., had policies and procedures designed to ensure that D&M did not violate U.S. sanctions, SOHL failed to train its employees adequately to ensure that all U.S. persons, including non-U.S. citizens who resided in the United States while employed at D&M, complied with Schlumberger Ltd.’s sanctions policies and compliance procedures.  As a result of D&M’s lack of adherence to U.S. sanctions combined with SOHL’s failure to train properly U.S. persons and to enforce fully its policies and procedures, D&M, through the acts of employees residing in the United States, violated U.S. sanctions against Iran and Sudan by: (1) approving and disguising the company’s capital expenditure requests from Iran and Sudan for the manufacture of new oilfield drilling tools and for the spending of money for certain company purchases; (2) making and implementing business decisions specifically concerning Iran and Sudan; and (3) providing certain technical services and expertise in order to troubleshoot mechanical failures and to sustain expensive drilling tools and related equipment in Iran and Sudan. 

The investigation that commenced in 2009 was led by the Justice Department’s National Security Division, the U.S. Attorney’s Office of the District of Columbia and the U.S. Department of Commerce BIS’ Dallas Field Office.  Assistant Attorney General Carlin is grateful to Special Agent Troy Shaffer from BIS’ Dallas Field Office for his excellent work.  Assistant Attorney General Carlin also acknowledged the work of those who handled the case from the National Security Division and the U.S. Attorney’s Office, including former Trial Attorney Ryan Fayhee and former Assistant U.S. Attorneys John Borchert and Ann H. Petalas.

The case was prosecuted by Trial Attorney Casey Arrowood of the National Security Division, Assistant U.S. Attorney Maia L. Miller of the National Security Section and Assistant U.S. Attorney Zia Faruqui of the District of Columbia.

Source: justice.gov

Washington, DC--(ENEWSPF)--May 7, 2015.  A federal grand jury has brought an additional charge against Christopher Lee Cornell, 21, of Green Township, Ohio.  In a superseding indictment returned in Cincinnati, he is now also charged with attempting to provide material support to a designated foreign terrorist organization.

The charge is in addition to the original Jan. 21, 2015, indictment that charged Cornell with attempting to kill officers and employees of the United States, solicitation to commit a crime of violence and possession of a firearm in furtherance of a crime of violence.  Cornell was charged for his alleged participation in a plot to attack the U.S. Capitol Building and kill government officials.

The superseding indictment, which was returned today, was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Carter M. Stewart of the Southern District of Ohio and Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Field Division.

The four-count superseding indictment alleges that on or about August 2014 through January 2015, Cornell allegedly plotted, planned and attempted to attack the U.S. Capitol.

The defendant is also alleged to have attempted to provide material support and resources to a foreign terrorist organization, specifically the Islamic State of Iraq and the Levant (ISIL), knowing that the organization was a designated foreign terrorist organization and that the organization had engaged in and was continuing to engage in terrorist activity.  Material support and resources consisted of personnel in the form of the defendant himself by plotting and attempting to execute an attack on the U.S. Capitol.

Cornell allegedly attempted to kill officers and employees of the United States during their official duties, specifically by attempting to attack the U.S. Capitol Building.  During that same time, the defendant allegedly attempted to persuade others to kill officers and employees of the United States.  Cornell also allegedly possessed two semi-automatic rifles and approximately 600 rounds of ammunition.

Providing material support to a designated foreign terrorist organization carries a potential maximum sentence of 15 years in prison.  Attempted murder of government employees and officials is a crime punishable by up to 20 years in prison.  Solicitation to commit an attempted murder is a crime punishable by 20 years in prison.  Possession of a firearm in furtherance of an attempted crime of violence is a crime punishable by a mandatory sentence of five years in prison.

Cornell was arrested on Jan. 14, 2015, by the FBI’s Joint Terrorism Task Force (JTTF).  The JTTF is made up of officers and agents from the Cincinnati Police Department; Colerain, Ohio, Police Department; Dayton, Ohio, Police Department; Ohio State Highway Patrol; U.S. Immigrations and Customs Enforcement; U.S. Secret Service; and West Chester, Ohio, Police Department.

Assistant Attorney General Carlin and U.S. Attorney Stewart commended the investigation of this case by the JTTF.  The case is being prosecuted by Trial Attorney Michael Dittoe of the Justice Department’s National Security Division and Assistant U.S. Attorney Tim Mangan of the Southern District of Ohio.

An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.

Related Material:

Cornell Superseding Indictment

Source: justice.gov