Former State Senator Wayne Bryant Guilty of All Counts for Schemes to Obtain a Corrupt Low-Show Job at UMDNJ - 09:33, Nov. 20, 2008

Former State Senator Wayne Bryant Guilty of All Counts for
Schemes to Obtain a Corrupt Low-Show Job at UMDNJ and
Fraudulently Pad State Pension
– Former Dean of Medical School Also Convicted–
 
TRENTON – A jury today convicted former New Jersey State Sen. Wayne R. Bryant on all corruption charges against him for unlawfully using his power and influence to obtain a paid, low-show job at UMDNJ’s School of Osteopathic Medicine in exchange for lobbying and bringing millions of dollars in extra funding to the school, and using that job and others to fraudulently nearly triple his state pension, U.S. Attorney Christopher J. Christie announced.

The former dean at the School of Osteopathic Medicine (SOM) in Stratford, R. Michael Gallagher, 59, of Haddonfield, was also found guilty of capitalized on Bryant’s influence to become dean and, in turn, rigged the hiring process to create a job for Bryant at SOM that appeared to be a legitimate, bona fide position.

Bryant was convicted on Counts One through Count Six with mail and wire fraud for their alleged scheme to defraud the public of Bryant’s honest services by use of the mails and wires. Gallagher was also convicted of Count One through Count Three and Counts Five and Six; the defendant was found not guilty of Count Four. Bryant was convicted of Count Seven with corrupt solicitation and acceptance (from Gallagher) of a bribe (the SOM job) involving an organization receiving federal funds. Gallagher, in turn, was convicted of Count Eight with corruptly offering a bribe (to Bryant) involving an organization receiving federal funds.

Bryant alone was convicted of Count Nine through Count 13 with mail fraud for his alleged scheme to defraud the New Jersey Division of Pensions and Benefits of money and property by use of the mails.

“Today one of New Jersey’s once most powerful politicians has been convicted of twelve felony charges for placing his own personal greed ahead of the interests of the good people of the State of New Jersey,” Christie said. “Once again elected and non-elected officials are put on notice, no officeholder or public employee will be permitted to turn public service into self-service in violation of the law.”

There are a number of fact-dependent determinations that will be made at sentencing. However, under certain scenarios, the defendants would be facing an advisory U.S. Sentencing Guidelines sentence of over 15 years. The Sentencing Guidelines, however, are advisory only, and U.S. District Judge Freda L. Wolfson will have discretion in imposing sentence within or outside of that range. Parole has been abolished in the federal system. Defendants who are given custodial terms must serve nearly all that time.

The jury began deliberating at approximately 1:00 p.m. on Friday, Nov. 14 and returned a verdict at 1:00 p.m. Judge Wolfson, who presided over the nearly 11-week trial, scheduled sentencing for both defendants on March 20, 2009.

The case was tried by First Assistant U.S. Attorney Ralph J. Marra, Jr., and Assistant U.S. Attorneys Joshua Drew and Adam S. Lurie.

In convicting Bryant and Gallagher, the jury found that the job at SOM amounted to a bribe from Gallagher, which was solicited by Bryant. The jury heard that Gallagher was elevated from Vice Dean to Interim Dean and finally, in November 2002, to permanent Dean at SOM with Bryant’s help, which included arranging meetings between Gallagher and state legislators and drafting a letter to the Governor supporting Gallagher. The jury found that in March 2003, Gallagher in turn put Bryant on the SOM payroll and in doing so committing fraudulent acts and acts of concealment.

The jury also found that from his position at SOM, Bryant used his power and influence as Senator and Chairman of the Senate Budget and Appropriations Committee to directly lobby state agencies, high-level officials (including the state Treasurer), legislators and their staffs and personally directed changes in the state budget to bring millions of dollars in extra funding to SOM. All the while, Bryant failed to reveal that he was simultaneously on the payroll at SOM, receiving a high salary of $40,841 in 2004, and, in fact, used various means to conceal his purported role at SOM.

The jury also found that beginning in July 2002 Bryant engaged in the pension-padding scheme by taking on public positions for which he did no meaningful work. During the trial, the jury viewed evidence and heard testimony which showed that Bryant took salaries from UMDNJ’s School of Osteopathic Medicine (SOM), the Gloucester County Board of Social Services and Rutgers University Camden and its law school, even as he did little to no meaningful work in return for those government salaries and other benefits.

Bryant was individually and specifically hired by the Gloucester County Board of Social Services (GCBSS) to perform legal services. Instead, he dispatched employees of his private law firm to provide those legal services; yet he personally received a salary and accrued retirement benefits. From mid-2002 through about August 2006, Bryant worked a total of about 14.8 hours for GCBSS, yet received approximately $200,000 of pensionable income. Throughout the period Bryant submitted false and fraudulent signed attorney time sheets which declared that he personally had done the work.

At SOM, Gallagher caused personnel records to indicate that Bryant worked the equivalent of three full days a week in order to make Bryant eligible for pension credits on his SOM salary. In fact, according to testimony, Bryant showed up only for about half a day once a week, did no meaningful work, and instead spent much of the time reading the newspaper. As a result of those frauds, Bryant’s anticipated annual pension from government positions went from about $28,000 in 2002 to about $81,268 in 2006.

Gallagher remains under indictment on another set of charges for his alleged scheme to created phony “profits” on financial statements for SOM’s University Headache Center, where Gallagher also served as chairman. Those “profits” resulted in additional annual bonuses to Gallagher – determined by Gallagher himself as chairman of the Headache Center – of between $15,000 and $20,000 in each of 2002, 2003 and 2004. With salary and bonuses, Gallagher had compensation that ranged from between $345,000 to $402,000 from 2003 to 2005. Judge Wolfson, in motions decided before the trial of Bryant and Gallagher, severed that set of charges from the government’s original Indictment, necessitating two trials for Gallagher and one for Bryant. Christie said he will consult within the office and with federal investigative agencies before deciding how to proceed on those charges.
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Member of Aryan Brotherhood Indicted for Bias-motivated Assault with Intent to Murder - 15:20, Nov. 19, 2008

Member of Aryan Brotherhood Indicted for Bias-motivated Assault with Intent to Murder

WASHINGTON — A federal grand jury in Dallas, Texas, indicted Timothy York, a member of the United/Universal Aryan Brotherhood, on two counts of bias-motivated assault.

According to the indictment, on Dec. 28, 2007, Timothy York assaulted his prison cell-mate with intent to commit murder, by using a ligature made from his prison clothing. At the time, York was detained at Seagoville Federal Correctional Institution. The grand jury further alleged that York targeted his cell-mate, who was Jewish, because of his actual or perceived race, religion, national origin and ethnicity.

 If convicted, York faces up to 30 years in prison, a $500,000 fine and five years of supervised release.

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

The case is being investigated by the Federal Bureau of Investigation. It will be prosecuted by Jared Fishman, Trial Attorney for the Justice Department’s Civil Rights Division, and Sarah Saldana, Assistant U.S Attorney for the Northern District of Texas.

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Company to Pay $5.6 Million for Allegedly Overcharging U.S. on Contract to Recruit & Select Airport Screeners - 15:18, Nov. 19, 2008

Company to Pay $5.6 Million for Allegedly Overcharging U.S. on Contract to Recruit & Select Airport Screeners

WASHINGTON– NCS Pearson Inc. has agreed to pay $5.6 million to resolve allegations that it submitted false claims in connection with a contract to assist the Transportation Security Administration (TSA) in deploying federal government security personnel at airports, the Justice Department announced today.

The Aviation and Transportation Security Act, which was enacted Nov. 19, 2001, created TSA and, among other things, gave the agency one year to identify the personnel it needed to perform airport security screening, and then to hire and train them. TSA contracted with the Bloomington, Minn., firm for help recruiting and selecting federal screeners. Today’s settlement resolves allegations that NCS Pearson overcharged TSA in connection with that contract by billing incorrect rates for subcontractor labor.

"Today's settlement again demonstrates the Department’s commitment to protecting taxpayer funds from misuse by those doing business with the federal government," said Gregory G. Katsas, Assistant Attorney General for the Department's Civil Division.

The settlement resulted from the collective efforts of the Justice Department’s Civil Division, the Office of Inspector General for the Department of Homeland Security, the Defense Contract Audit Agency and TSA.

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Former DoD Official Sentenced for Making a False Statement - 15:17, Nov. 14, 2008

Former DoD Official Sentenced for Making a False Statement

WASHINGTON – A former employee of the Defense Logistics Agency, an agency within the Department of Defense (DoD), was sentenced today to two years of probation for committing one count of making a false statement, Acting Assistant Attorney General Matthew Friedrich of the Criminal Division announced. Constance Walton, 55, of Mitchellville, Md., also was ordered to pay a $10,000 fine.

According to court documents, Walton failed to disclose to the DoD that she received income from a company that she owned. Walton started the company to receive work assignments from contractors of the U.S. Department of the Army Information Technology Agency where her associate, Robert Johnson, worked. Between 2000 and 2006, Walton received more than $100,000 from the contractors.

On June 27, 2006, in the Eastern District of Virginia, Johnson pleaded guilty to one count of wire fraud for using his official position to obtain more than $150,000 from the Army. Johnson committed this fraud by directing two prime contractors to subcontract with two companies in which Johnson secretly held a financial interest, one of which was Walton’s company. Johnson also falsely certified that the prime contractors and their subcontractors provided services to the government when, in fact, such services were not provided. On Sept. 29, 2006, District Court Judge James C. Cacheris sentenced Johnson to 24 months in prison.

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U.S. Files Suit Against New Jersey Generic Drug Manufacturer That Distributed Adulterated and Misbranded Products - 15:15, Nov. 14, 2008

U.S. Files Suit Against New Jersey Generic Drug Manufacturer That Distributed Adulterated and Misbranded Products

WASHINGTON – The United States is seeking a permanent injunction to bar Actavis Totowa LLC, and Actavis Inc. and two of their officers, from the manufacturing and distribution of generic drug products until they demonstrate compliance with the Good Manufacturing Practice requirements of the Federal Food, Drug and Cosmetic Act (FDCA), the Justice Department announced today.

Actavis Totowa is a drug manufacturer located in New Jersey. Actavis Inc. is the United States manufacturing division of Actavis Group hf, an international generic pharmaceutical company located in Iceland, and the direct parent of Actavis Totowa. The two officers are Sigurdur Oli Olafsson, the Executive Chairman of Actavis Inc., and Douglas Boothe, the President and CEO of Actavis Totowa.

According to the complaint, The Food and Drug Administration (FDA) conducted five inspections of Actavis Totowa's facilities over the last three years. Despite written warnings to the company, during its last inspection this year, the FDA continued to find numerous and recurring violations of Good Manufacturing Practice requirements. FDA also found that the company continued to manufacturer and distribute unapproved new drug products.

Under the FDCA, drugs are adulterated if they were not manufactured in compliance with Good Manufacturing Practice requirements; and they are misbranded if they are unapproved by the FDA.

During its most recent inspection this year, FDA found that Actavis Totowa’s failure to comply with the Good Manufacturing Practice requirements resulted in, among other things, the company’s release of Digoxin tablets to the market after it had discovered that some tablets from the same production batch were double thick and, thus, double potent. Double dose Digoxin tablets can cause digitalis toxicity and result in cardiac instability, bradycardia and death among other things.

Recently, the defendants informed FDA that they would like to restart manufacturing drug products. However, Actavis has not demonstrated to FDA that it can do this in compliance with the Good Manufacturing Practice requirements.

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Miami Clinic Owner Sentenced to 30 Months in Prison for $10.9 Million Medicare Fraud - 09:09, Nov. 13, 2008

Miami Clinic Owner Sentenced to 30 Months in Prison for $10.9 Million Medicare Fraud

WASHINGTON – Miami clinic owner Nayda Freire, 61, was sentenced today to 30 months in prison for defrauding the Medicare program in connection with a $10.9 million HIV infusion fraud scheme, Acting Assistant Attorney General Matthew Friedrich of the Criminal Division and U.S. Attorney R. Alexander Acosta of the Southern District of Florida announced.

In addition to the prison term, U.S. District Judge Adalberto Jordan also sentenced Freire to two years of supervised release following her release from prison and ordered her to pay $7,992,391 in restitution to the Medicare program. Freire pleaded guilty to one count of conspiracy to commit health care fraud in connection with her role as the owner of Global Med-Care Corp. Inc. (Global), a Miami-area HIV clinic that purported to provide HIV infusion services to Medicare beneficiaries.

In her plea, Freire acknowledged that between April 2003 and November 2003, she and others conspired to file $10.9 million in false claims to the Medicare program for HIV infusion services that were not provided and were not medically necessary. In addition, court documents explain how the patients at Global were paid cash kickbacks in return for agreeing to allow Global to bill Medicare for the unneeded services.

After payments from Medicare were made into the bank accounts of Global, Freire admitted that she and others transferred $6 million of the fraud proceeds to sham management, marketing and investment companies owned and operated by co-conspirators Carlos, Luis and Jose Benitez. Co-conspirators Carlos and Luis Benitez and Thomas McKenzie were charged separately with health care fraud and money laundering crimes in an indictment unsealed on June 11, 2008.  According to the separate indictment, these co-conspirators allegedly provided the money and staff necessary to open Global, the Medicare patients who the clinic would bill to the Medicare program, and transportation for the HIV patients who visited the clinic.  The indictment also alleges that Carlos and Luis Benitez were the true owners of Global. The Benitez brothers and McKenzie were charged with participating in the commission of approximately $109 million in HIV infusion fraud and money laundering through Global and 10 other HIV infusion clinics. On Sept. 18, 2008, McKenzie pleaded guilty to one count of conspiracy to commit health care fraud and one count of submitting false claims to the Medicare program, and also admitted his role in a $119 million HIV infusion fraud scheme. The Benitez brothers remain fugitives.

The Global case was prosecuted by Assistant Chief Hank Bond Walther and Trial Attorney N. Nathan Dimock of the Criminal Division’s Fraud Section, and investigated by the FBI and the Department of Health and Human Services’ Office of Inspector General. The case was brought as part of the Medicare Fraud Strike Force, supervised by Deputy Chief Kirk Ogrosky of the Criminal Division’s Fraud Section and U.S. Attorney Acosta of the Southern District of Florida. Since the inception of Strike Force operations in 2007, federal prosecutors have indicted 104 cases with 185 defendants in Los Angeles and Miami. Collectively, these defendants fraudulently billed the Medicare program for more than half a billion dollars.
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LG, Sharp, Chunghwa Agree to Plead Guilty, Pay Total of $585 Million in Fines for Participating in LCD Price-fixing Conspiracies - 15:05, Nov. 12, 2008

LG, Sharp, Chunghwa Agree to Plead Guilty, Pay Total of $585 Million in Fines for Participating in LCD Price-fixing Conspiracies

WASHINGTON – Three leading electronics manufacturers –LG Display Co. Ltd., Sharp Corp. and Chunghwa Picture Tubes Ltd. –have agreed to plead guilty and pay a total of $585 million in criminal fines for their roles in conspiracies to fix prices in the sale of liquid crystal display (LCD) panels, the Department of Justice announced. Of the $585 million in fines, LG will pay $400 million, the second highest criminal fine ever imposed by the Department’s Antitrust Division.

Today’s charges were filed in U.S. District Court in San Francisco. The companies have agreed to cooperate with the Department’s ongoing antitrust investigation.

Thin-Film Transistor-Liquid Crystal Display (TFT-LCD) panels are used in computer monitors and notebooks, televisions, mobile phones, and other electronic devices. In 2006, the worldwide market for TFT-LCD panels was approximately $70 billion. Companies directly affected by the LCD price-fixing conspiracies are some of the largest computer, television and cellular telephone manufacturers in the world, including Apple, Dell and Motorola.

"Today’s charges and criminal fines emphasize the commitment of the Department of Justice to crack down on international cartels," said Attorney General Michael B. Mukasey.

LG Display Co. Ltd, a South Korean corporation, and its wholly-owned subsidiary, LG Display America Inc., a California company (LG), agreed to plead guilty to participating in a conspiracy from September 2001 to June 2006 to fix the price of TFT-LCD panels sold worldwide. During the conspiracy, LG Display Co. Ltd. was known as LG.Philips LCD Co. Ltd. (a joint venture between LG Electronics and Philips Electronics) and LG Display America Inc. was known as LG.Philips LCD America Inc.

Sharp Corp., a Japanese consumer electronics manufacturer, has agreed to pay a $120 million fine for its participation in separate conspiracies to fix the price of TFT-LCD panels sold to Dell Inc. from April 2001 to December 2006 for use in computer monitors and laptops; to Motorola Inc. from fall 2005 to the middle of 2006 for use in Razr mobile phones; and to Apple Computer Inc. from September 2005 to December 2006 for use in iPod portable music players.

Chunghwa, a Taiwanese TFT-LCD panel manufacturer, has agreed to pay a $65 million fine for its participation with LG and other unnamed co-conspirators in a conspiracy from September 2001 to December 2006 to fix the price of TFT-LCD panels sold worldwide.

"These price-fixing conspiracies affected millions of American consumers who use computers, cell phones and numerous other household electronics every day," said Thomas O. Barnett, Assistant Attorney General in charge of the Department’s Antitrust Division. "These convictions, and the significant fines they carry, should send a clear message that the Antitrust Division will vigorously investigate and prosecute illegal cartels, regardless of where they are located."

LG and Chunghwa are charged with carrying out the conspiracy by:

• Participating in meetings, conversations, and communications in Taiwan, Korea and the United States to discuss the prices of TFT-LCD panels;
• Agreeing during those meetings, conversations and communications to charge prices of TFT-LCD panels at certain pre-determined levels;
• Issuing price quotations in accordance with the agreements reached; and
• Exchanging information on sales of TFT-LCD panels, for the purpose of monitoring and enforcing adherence to the agreed-upon prices.

Sharp is charged with participating in three separate conspiracies, to fix the price of TFT-LCD panels sold to Dell, Motorola and Apple by:

•  Participating in bilateral meetings, conversations, and communications in Japan and the United States to discuss the prices of TFT-LCD panels to be sold to Dell, Apple and Motorola;
• Agreeing during those bilateral meetings, conversations and communications to charge prices of TFT-LCD panels at certain pre-determined levels to Dell, Apple and Motorola;
• Issuing price quotations in accordance with the agreements reached; and
• Exchanging information on sales of TFT-LCD panels to be sold to Dell, Apple and Motorola, for the purpose of monitoring and enforcing adherence to the agreed-upon prices.

LG, Sharp and Chunghwa are each charged with price fixing in violation of the Sherman Act. Each violation carries a maximum fine of $100 million for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

LG Display Co. Ltd., based in Seoul, South Korea, reported $15.3 billion in revenue for 2007.

Sharp, based in Osaka, Japan, reported $34.2 billion in revenues for its fiscal year ending March 31, 2008, including $6.8 billion in revenue from LCD sales.

Chunghwa, based in Taoyuan, Taiwan, Republic of China, reported $4.8 billion in revenue for 2007.

These pleas are the result of a joint investigation by the Antitrust Division’s San Francisco Field Office and the Federal Bureau of Investigation in San Francisco. The plea agreements are subject to court approval.

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More Than $1 Billion Recovered by Justice Department in Fraud and False Claims in Fiscal Year 2008 - 09:05, Nov. 12, 2008

More Than $1 Billion Recovered by Justice Department in Fraud and False Claims in Fiscal Year 2008

More Than $21 Billion Recovered Since 1986

WASHINGTON – The United States secured $1.34 billion in settlements and judgments in the fiscal year ending Sept. 30, 2008, pursuing allegations of fraud against the federal government, the Justice Department announced today. This brings total recoveries since 1986, when Congress substantially strengthened the civil False Claims Act, to more than $21 billion.

"Now, more than ever, it is crucial that taxpayer dollars aren't lost to fraud," said Gregory G. Katsas, Assistant Attorney General for the Department’s Civil Division. "The billion dollars collected this year is only part of the story. By rooting out fraud and vigorously pursuing it, the Department, with the help of concerned citizens who report fraud in hotline calls and in qui tam complaints, undoubtedly saves the country many times that amount in aborted schemes and misconduct."

Assistant Attorney General Katsas also paid tribute to Senator Charles Grassley of Iowa and Representative Howard L. Berman of California who sponsored the 1986 amendments to the False Claims Act, the government's primary weapon to fight government fraud. "Without this important legislation strengthening the Act and, in particular, the qui tam provisions which encourage private citizens to uncover government fraud, such recoveries would not have been possible."

Almost 78 percent of this year’s recoveries are associated with suits initiated by private citizens (known as "relators") under the False Claims Act's qui tam provisions. These provisions authorize relators to file suit on behalf of the United States against those who have falsely or fraudulently claimed federal funds. Such cases run the gamut of federally funded programs from Medicare and Medicaid to defense procurement contracts, disaster assistance loans and agricultural subsidies. Persons who knowingly make false claims for federal funds are liable for three times the government’s loss plus a civil penalty of $5,500 to $11,000 for each claim.

Relators recover 15 to 25 percent of the proceeds of a successful suit if the United States intervenes in the qui tam action, and up to 30 percent if the government declines and the relator pursues the action alone. In fiscal year 2008, relators were awarded $198 million. (This figure does not include relator shares awarded after Sept. 30, 2008.)

As in the last several years, health care accounted for the lion's share of fraud settlements and judgments–$1.12 billion. This number includes both qui tam claims and those initiated by the United States. The Department of Health and Human Services reaped the biggest recoveries, largely attributable to its Medicare program and the federal/state Medicaid program which funds health care for the needy. Recoveries were also made by the Office of Personnel Management which administers the Federal Employees Health Benefits Program, the Department of Defense for its TRICARE insurance program, the Department of Veterans Affairs and others.

The largest health care recoveries came from pharmaceutical companies and related entities. Settlements with Cephalon Inc., Merck & Co. and CVS Caremark Corp. accounted for more than $640 million. In addition to federal recoveries, these pharmaceutical fraud cases returned $430 million to state Medicaid programs.

The Civil Division’s investigation of the pharmaceutical industry is part of a Department-wide effort. Typical allegations include "off-label" marketing, which is the illegal promotion of drugs or devices that are billed to Medicare and other federal health care programs, for uses that were neither found safe and effective by the Food and Drug Administration nor supported by the medical literature; paying kickbacks to physicians, wholesalers and pharmacies to induce drug or device purchases; establishing inflated drug prices knowing that federal health care programs use these prices to reimburse providers, then marketing the "spread" between the federal reimbursement and the provider’s lower cost to induce drug purchases; and knowingly failing to report the company’s true "best price" for a drug to reduce rebates owed to the Medicaid program.

The Department also collected $133 million in defense procurement fraud. Defense contract recoveries included a $53 million settlement with Pratt & Whitney, a division of United Technologies Corporation, and PCC Airfoils LLC, a subsidiary of Precision Castparts Corporation. The settlement resolved allegations that Pratt & Whitney and PCC Airfoils knowingly submitted false claims to the Air Force for defective turbine blades sold to the government to retrofit the F100-PW-220 engines in F-16 and F-15 aircraft. This case was pursued as part of a National Procurement Fraud initiative, launched in October 2006, to promote the early detection, identification, prevention and prosecution of procurement fraud.

FACT SHEET: SIGNIFICANT RECOVERIES IN FISCAL YEAR 2008

Among the Department’s most significant settlements and judgments in fiscal year 2008 were:

• $361.5 million from Merck & Company to resolve allegations that the pharmaceutical manufacturer knowingly failed to pay proper rebates to Medicaid and other government health care programs, and paid kickbacks to health care providers to induce them to prescribe the company’s products. The settlement resulted from two lawsuits brought under the qui tam provisions of the False Claims Act.
  In the first, which accounted for $221.9 million of the $361.5 settlement, a former Merck employee alleged that the company violated the Medicaid Rebate Statute by providing deep discounts to hospitals that used its drugs Zocor and Vioxx in place of competitors’ brands, without reporting those discounts and other cost information to reflect its "best price," as required by the statute to ensure that Medicaid obtains the benefit of the same price concessions other purchasers enjoy. This suit also alleged that Merck paid kickbacks to physicians, disguised as fees for training, consultation, and market research, to induce them to prescribe its drugs, also contrary to law. The United States paid the relator $46.6 million as his share of the settlement under the False Claims Act’s qui tam provisions. In addition to the federal recovery, Merck paid $162 million to state Medicaid programs.
  
  In the second lawsuit, which accounted for the remaining $139.6 million of the settlement, a physician alleged that Merck provided deep discounts to hospitals to induce them to administer its antacid, Pepcid, as a means to boost sales through continued use after the patient’s discharge. The suit went on to allege, similar to the first suit, that Merck knowingly failed to report these discounts as required by the Medicaid Rebate Statute, which resulted in illegal and inflated claims to federal and state Medicaid programs. In addition to paying the United States $139.5 million in federal claims, Merck paid $114 million to settle state Medicaid claims. The relator received $24 million as his federal share of the settlement and an additional sum for the state recoveries. Merck also entered into a Corporate Integrity Agreement with the Inspector General of the Department of Health and Human Services (HHS) to ensure compliance with federal health insurance programs in the future.
  
  For the original press release, see:
  
  http://www.usdoj.gov/opa/pr/2008/February/08_civ_094.html
  
  http://www.usdoj.gov/usao/pae/News/Pr/2008/feb/steinkrelease.pdf

   

• $258 million from Cephalon Inc. to resolve claims that the company marketed three drugs for uses not approved by the Food and Drug Administration (FDA). By promoting the drugs for so-called "off label" uses, Cephalon caused providers to charge federal health insurance programs such as Medicare, Medicaid, TRICARE and the Federal Employees Health Benefits Program for unapproved uses of the drugs not covered by the programs. The settlement resolved four lawsuits, three of which were brought by former Cephalon sales representatives under the qui tam provisions of the False Claims Act. Consistent with those provisions, the relators who filed the suits will share $46.7 million as their part of the settlement. In addition to the $258 million recovered for federal programs, the United States recovered $116 million for the Medicaid programs in 14 states and the District of Columbia. Cephalon also pleaded guilty to related criminal charges, paid $50 million in fines and forfeitures and entered into a five-year Corporate Integrity Agreement with the Inspector General of HHS to ensure strict compliance in the future.
  For the original press release, see:
  
  http://www.usdoj.gov/opa/pr/2008/September/08-civ-860.html

   

• $225 million from Amerigroup Corporation to settle both federal and state allegations that Amerigroup, together with its Illinois subsidiary, systematically avoided enrolling pregnant women and other high-cost patients in the company’s managed care program in Illinois. The program was funded by Medicaid, which required open enrollment to all eligible beneficiaries. By excluding pregnant women and other high-cost patients, Amerigroup increased its profits in conflict with the law. The United States and Illinois jointly brought suit under the federal False Claims Act and the Illinois Whistleblower Reward and Protection Act. In October 2006, following a lengthy trial, the court entered judgment for $334 million. Amerigroup appealed and the parties entered negotiations leading to settlement. The relator received $56.25 million as his share of the federal and state recoveries. In conjunction with the settlement, Amerigroup entered into a Corporate Integrity Agreement with the Inspector General of HHS to ensure future compliance.
  
  For the original press release, see:
  
  http://www.usdoj.gov/opa/pr/2008/August/08-civ-723.html

   

• $75 million to settle claims that Kyphon Inc., now Medtronic Spine LLC, violated the False Claims Act by knowingly causing the submission of false claims to Medicare for its kyphoplasty procedure–a minimally-invasive surgery used to treat compression fractures of the spine. The settlement resolved a lawsuit filed by two former Kyphon employees under the qui tam provisions of the False Claims Act. The suit alleged that Kyphon engaged in a seven-year marketing scheme that resulted in certain hospitals billing Medicare for kyphoplasties performed on an inpatient basis rather than for less costly and clinically appropriate outpatient kyphoplasty treatment. This conduct resulted in the Medicare program paying more for inpatient kyphoplasty procedures. The relators received a total of $14.9 million as their share of the settlement. In conjunction with the settlement, Kypon entered into a Corporate Integrity Agreement with the Inspector General of HHS to ensure future compliance.
  
  For the original press release, see:
  
  http://www.usdoj.gov/opa/pr/2008/May/08-civ-455.html

   

• $74 million from Staten Island University Hospital (SIUH) to resolve two False Claims Act qui tam suits and two other matters. In the first action, a physician and former SIUH Director of Chemical Dependency Services, filed suit alleging that SIUH fraudulently billed Medicare and Medicaid for substance abuse and alcohol detoxification services provided to inpatients in unlicensed beds, in violation of state law, between 1994 and 2000. SIUH paid the United States $11.8 million in settlement of this qui tam action, with the relator receiving $2.3 million as his share of the government’s recovery. In related allegations of inflated Medicaid billings asserted under New York State’s false claims statute, SIUH paid New York $14.88 million, with the relator receiving $2.97 million as his share of the state’s recovery.
  In the second action, the widow of an SIUH cancer patient filed suit alleging that between 1996 and 2004, SIUH submitted false claims to Medicare and TRICARE using incorrect codes for cancer treatments not covered by the programs. SIUH paid the United States $25 million, including a relator share award of $3.75 million. In the third matter, the United States alleged that SIUH deliberately inflated the number of residents it employed to fraudulently increase Medicare reimbursement between 1996 and 2003. SIUH paid the United States $35.7 million in settlement of this matter. Lastly, SIUH paid the United States $1.47 million to settle allegations that it billed Medicare and Medicaid for treating psychiatric patients in unlicensed beds from 2003-2005. In conjunction with the settlement, SIUH also entered into a Corporate Integrity Agreement with the Inspector General of HHS to ensure future compliance.
  
  For the original press release, see:
  
  http://www.usdoj.gov/usao/nye/pr/2008/2008sep15.html

   

• $60 million from Lester E. Cox Medical Centers, a health care system headquartered in Springfield, Mo., to settle claims that it violated the False Claims Act, the Anti-Kickback Statute and the Stark Statute between 1996 and 2005. The United States alleged that Cox entered into illegal financial relationships with referring physicians at a local physician group and engaged in improper billing practices with respect to Medicare. Under the Stark Statute, providers such as Cox are prohibited from billing Medicare for referrals from doctors with whom the providers have a financial relationship, unless that relationship falls within certain exceptions. The United States contended that Cox and the referring physicians ran afoul of the Stark Statute, as well as the Anti-Kickback Statute, which prohibits offering inducements to providers in return for patient referrals. The settlement also resolves claims that Cox included non-reimbursable costs on its Medicare cost reports and improperly billed for dialysis services. In conjunction with the settlement, Cox entered into a Corporate Integrity Agreement with the Inspector General of HHS to ensure future compliance.
  
  For the original press release, see:
  
  http://www.usdoj.gov/opa/pr/2008/July/08-civ-638.html
  
  http://www.usdoj.gov/usao/mow/news2008/cox.settlement.htm

   

• $53 million from Pratt & Whitney, a division of United Technologies Corporation, and PCC Airfoils LLC, a subsidiary of Precision Castparts Corporation, to resolve allegations that the companies knowingly submitted false claims for defective turbine blades purchased by the Air Force to retrofit the F100-PW-220 engines found in F-16 and F-15 aircraft. The settlement includes corrective action to replace defective blades and inspection of potentially serviceable blades to ensure their integrity. The case was pursued as part of a National Procurement Fraud Initiative launched in October 2006, to promote the early detection, identification, prevention and prosecution of procurement fraud.
  
  For the original press release, see:
  
  http://www.usdoj.gov/opa/pr/2008/August/08-civ-675.html

   

• $26 million from St. Joseph’s Hospital of Atlanta to resolve allegations that the hospital falsely claimed Medicare reimbursement for inpatient admissions that were, in fact, less costly outpatient visits. A registered nurse, formerly employed by the hospital, initiated suit under the False Claims Act’s qui tam provisions. The complaint alleged that the hospital improperly billed for short inpatient admissions, usually of one day or less, when the service should have been billed as an outpatient "observation" or emergency room visit. Medicare reimburses hospitals a higher rate for inpatient admissions than it does for observation care or emergency room visits. The nurse who triggered the investigation received $4.94 million as her share of the recovery. St. Joseph’s entered into a Corporate Integrity Agreement with the Inspector General of HHS in conjunction with the settlement, to ensure future compliance.
  For the original press release, see:
  
  http://www.usdoj.gov/usao/gan/press/2007/12-21-07.pdf

   

• $23.2 million from Bechtel Infrastructure Corp. and PB Americas Inc. to settle allegations of false claims for federal highway funds in connection with the firms’ failure to provide adequate management and quality assurance services during the construction of the Central Artery Tunnel, known as the Big Dig, in Boston. The recovery, part of a $458 million settlement of state and federal claims, resolved parts of a qui tam lawsuit, a related federal investigation and additional claims that Bechtel and PB Americas violated federal and state criminal and civil laws in connection with their services on the Big Dig. In addition to the federal recovery, the companies paid $40 million in state claims and $335 million into a state warranty fund for future repairs to the Big Dig. The private citizen who filed the suit received $54,000 and $96,000 as his share of the federal and state recoveries, respectively.
  
  For the original press release, see:
  
  http://www.usdoj.gov/opa/pr/2008/January/08_crt_048.html
  
  http://boston.fbi.gov/dojpressrel/pressrel08/govtclaimsettlement012308.htm

   

• $21.1 million from CVS Caremark Corp. to settle claims that from 2000-2006, the company illegally switched patients from the tablet version of the drug Ranitidine (generic Zantac) to a more expensive capsule version for the sole purpose of increasing Medicaid reimbursement. For example, CVS pharmacies in Illinois would charge Medicaid $79.80 for 60 Ranitidine capsules, rather than $17.10 for the tablets prescribed, increasing reimbursement by $62.70 on a single prescription. CVS Caremark is headquartered in Rhode Island and operates more than 6,000 pharmacies nationwide. The settlement resolves qui tam claims under federal and state false claims statutes. In addition to the federal recovery, CVS Caremark paid $15.6 million to 23 states and the District of Columbia. The qui tam plaintiff received $4.3 million as his share of the federal and state settlements. CVS Caremark also entered into a Corporate Integrity Agreement with the Inspector General of HHS to ensure future compliance.
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Japanese Operator of Cargo Vessel Pleads Guilty to Conspiracy and Falsifying Records - 09:03, Nov. 12, 2008

Japanese Operator of Cargo Vessel Pleads Guilty to Conspiracy and Falsifying Records

WASHINGTON— Hiong Guan Navegacion Japan Co. Ltd., operator of the commercial cargo ship Balsa 62, agreed to plead guilty today in U.S. District Court in Tampa, Fla., to conspiracy and to falsifying and failing to properly maintain records meant to ensure environmental compliance, the Justice Department announced.

Specifically, Hiong Guan agreed to plead guilty for falsifying the oil record book kept on board the Balsa 62.  Federal and international law requires that all ships comply with pollution regulations that include the proper disposal of oily water and sludge by passing the oily water through an oily-water separator aboard the vessel or burning the sludge in the ship’s incinerator.   Federal law also requires ships to accurately record each disposal of oily water or sludge in an oil record book, and to have the oil record book available for the U.S. Coast Guard when the vessel is within the waters of the United States. 

“Deliberate violations of the environmental laws protecting our oceans will not be tolerated,” said Eileen Sobeck, Deputy Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “Hiong Guan agreed to plead guilty today to conspiracy and deliberate falsification of ship records to conceal the illegal discharge of oily waste. This type of criminal conduct is all too frequent and the Justice Department and the Coast Guard will continue to work together to stem the tide of intentional pollution from ships.”

“Environmental crimes such as this adversely impact marine life as well as human life,” stated U.S. Attorney A. Brian Albritton.  “The investigation, prosecution and punishment for this disregard of our environment is an important step in protecting our oceans.”

“Marine environment protection is one of the Coast Guard’s core missions and it is important to ensure vessel operators comply with federal laws and environmental regulations,” said Capt. Timothy Close, the Coast Guard Captain of the Port of Tampa, St. Petersburg and Manatee.  “This case is an example of why our Coast Guard boarding teams routinely, and randomly, inspect vessels for procedural compliance.”

According to the plea agreement, from June 2007 through February 2008, Francisco Bagatela, the chief engineer of the Balsa 62, directed other crew members and personally participated in the operation of a bypass pipe, also referred to as a “magic pipe,” which was used to circumvent the pollution prevention equipment on board the ship, thereby transferring oily water and sludge directly overboard and into the ocean approximately twice a month.  On Feb. 25, 2008, Robert Racho replaced Bagatela as chief engineer and continued the use of the magic pipe.  Both Bagatela and Racho deliberately concealed these illegal discharges from the U.S. Coast Guard by not recording them in the ship’s oil record book. 

On both Oct. 31, 2007, and May 31, 2008, the Balsa 62 arrived in the Port of Tampa with its falsified oil record book.  The Coast Guard conducted an investigation of the ship on May 31, 2008, based in part on information from crew members aboard the ship.  At that time, the officers on board presented the falsified book.  The Coast Guard subsequently located evidence on board the ship corroborating the crew members’ allegation that the ship had been unlawfully discharging oily waste.

The maximum penalties that the company Hiong Guan faces include fines of $500,000 per felony count, a term of probation of five years and a special assessment of $400 per felony count.  According to the plea agreement, Hiong Guan has agreed to pay a $1.75 million fine and implement a detailed environmental compliance plan, which requires monitoring of its fleet-wide operations over the course of three years.

Francisco Bagatela and Robert Racho, both citizens of the Philippines, pleaded guilty on Oct. 15, 2008, to felony offenses related to the falsification of the vessel’s the oil record book.   They each face up to six years in prison, a $250,000 fine, and three years of supervised release years.

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TWO MEN INDICTED BY FEDERAL GRAND JURY FOR VIOLATIONS OF FEDERAL FIREARMS LAWS AND MAKING THREATS AGAINST A PRESIDENTIAL CANDIDATE - 09:01, Nov. 7, 2008

TWO MEN INDICTED BY FEDERAL GRAND JURY FOR VIOLATIONS OF FEDERAL FIREARMS LAWS AND MAKING THREATS AGAINST A PRESIDENTIAL CANDIDATE

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Massachusetts State Senator Arrested on Public Corruption Charges - 16:26, Oct. 30, 2008

SENATOR DIANNE WILKERSON ARRESTED ON FEDERAL PUBLIC CORRUPTION CHARGES

BOSTON, MA - Eight-term Massachusetts State Senator DIANNE WILKERSON was arrested this morning on public corruption charges stemming from her acceptance of more than $20,000 in cash payments to introduce legislation in the State Senate.

United States Attorney Michael J. Sullivan, Warren T. Bamford, Special Agent in Charge of the Federal Bureau of Investigation - Boston Field Office and Police Commissioner Edward Davis of the Boston Police Department announced today that DIANNE WILKERSON, 53, of 74 Howland Street in Boston, Massachusetts, was arrested on a federal Complaint charging her with attempted extortion under color of official right and theft of honest services as a State Senator.

“Public service is a honor,” said U.S. Attorney Sullivan. “Voters and taxpayers expect that elected officials will do what is right for their constituents -- not what is financially best for themselves. Citizens place extraordinary trust in those it gives the greatest authority, and with that authority comes the obligation to act with fairness and honesty. The allegations against Senator Wilkerson are unconscionable, and the citizens of the Commonwealth deserve honest and faithful services of their elected representatives -- uncompromised by secret payments of cash.”

Special Agent in Charge Bamford said, “Public corruption is the FBI’s highest criminal priority. Rooting out public corruption is extremely difficult. The FBI not only has the experience and skills to take on these types of investigations, but also the ability to investigate without any influence from political patron. The FBI will not cease in our efforts to combat public corruption at every level. I thank the men and women of the FBI, USAO, and our law enforcement partners who worked tirelessly to bring this case forward.”

The Complaint alleges that law enforcement authorities were first alerted to WILKERSON´s acceptance of cash in connection with the use of her public office in the spring of 2007. The Federal Bureau of Investigation, in conjunction with the Boston Police Anti-Corruption Unit, undertook a long-term covert operation, which included audio and videotaped recordings, commencing in May 2007 aimed at exploring these allegations. It is alleged that, between June 2007 and March 2008, WILKERSON took $8,500 in cash payments from an undercover agent, and a cooperating witness, to assist in obtaining a liquor license for a proposed nightclub in Roxbury. It is further alleged that, in exchange for these payments, WILKERSON pressured the Boston Licensing Board, the Mayor and the City Council, and also held-up pending legislation in the State Senate, including legislation increasing the salaries of the Boston Licensing Board.

The Complaint alleges that in an effort to obtain a license for which she was obtaining unreported cash payments, WILKERSON ultimately introduced legislation to increase the number of liquor licenses available in Boston, and then manipulated the timing of that legislation at the request of undercover agents.

It is further alleged that in January 2008 WILKERSON proposed that an undercover agent, posing as out-of-state businessman, become involved in the development of a piece of state property in Roxbury. WILKERSON proposed that she introduce legislation which directly designated the property to a private entity for development in order to avoid the ordinary public bidding process. In exchange for her assistance in the direct designation of the property, WILKERSON took a $5,000 payment in June 2008.

The Complaint further alleges that, in September 2008, WILKERSON requested that another undercover agent, posing as an out of state businessman, pay her $10,000 in cash. According to the Complaint, in early October 2008, the undercover agent paid WILKERSON $10,000 in cash, on her promise to file the direct designation legislation in the State Senate and to continue to advance the private interests of his business. WILKERSON allegedly filed the legislation and was pressing their interests with the House of Representatives and the Boston Redevelopment Authority as recently as last week.

In total, WILKERSON allegedly accepted a total of $23,500 in cash payments, ranging in amounts from $500 to $10,000. Each of the eight payments was in connection with the use of her office as a State Senator.

If convicted WILKERSON faces up to 20 years imprisonment, 3 years of supervised release and a $250,000 fine on each of the charges.

The case was investigated by the Federal Bureau of Investigation - Boston Field Office, in conjunction with the Boston Police Department Anti-Corruption Unit and the Internal Revenue Service - Criminal Investigation - Boston Field Office. It is being prosecuted by Assistant U.S. Attorney John T. McNeil in Sullivan’s Public Corruption and Special Prosecutions Unit.

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Agreements Ensure Funding for Cleanup of Connecticut Superfund Site - 15:21, Oct. 30, 2008

Agreements Ensure Funding for Cleanup of Connecticut Superfund Site

WASHINGTON—The federal government, along with the state of Connecticut, has reached three related settlements with numerous responsible parties to ensure funding for environmental clean up activities at the Solvents Recovery Service of New England Superfund (SRSNE) site in Southington, Conn., the Justice Department and Environmental Protection Agency (EPA) announced.

The site is the former location of a solvent recycling and resale facility that disposed of solvent-laden sludge in lagoons or open pits for 36 years.  The distillation process that the facility undertook caused heavy groundwater contamination.  EPA has been conducting various cleanup activities at the site and has accumulated significant costs.

As a result of today’s settlements, EPA will receive payments totaling more than $6 million in reimbursement for past costs incurred by the federal government’s clean up actions. In addition, settling parties under the three decrees will pay about $200,000 to resolve federal natural resource damage claims and more than $2 million to resolve natural resource damage claims of the state of Connecticut.  The $2 million payment will go to the Southington Water District to reimburse the district for costs incurred finding an alternate drinking water source as a result of the contaminated groundwater.  The settlements will allow cleanup work to proceed without further costs being borne by taxpayers.

Under the first settlement, a group of 59 potentially responsible parties has agreed to perform the site-wide cleanup, estimated to cost approximately $29 million.  These parties will perform the work under the oversight of EPA and the Connecticut Department of Environmental Protection and will pay EPA and the state’s future oversight costs.

Under the second settlement, 213 “de minimis” parties have settled their potential liability for cleanup costs at the site by making cash payments.  Only those parties that sent relatively small volume of waste to the site at the time that it was operating were eligible to join this settlement.

Under the third settlement, one potentially responsible party, M. Swift & Sons, Inc., will make a payment based on the company’s limited financial ability.

Under the terms of the cleanup settlement, the settling parties have agreed to implement the September 30, 2005, “Record of Decision” that outlines EPA’s clean up plan for the site.  The remedy includes heating, capturing, and treating waste oils and solvents in the subsurface; excavating, consolidating, and capping contaminated soil and wetland soil onsite; and continuing to pump and treat contaminated groundwater. There will also be restrictions on uses of the site property and groundwater, and long term monitoring of the cap and groundwater to ensure that the cleanup remains protective of human health and the environment for the future.

“Many years of cooperation between all levels of government and concerned parties have led to today’s agreements and, as a result, this site will be cleaned up,” said Ronald J. Tenpas, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division.

“This marks the beginning of a new chapter at the Solvents Recovery site,” said Robert Varney, regional administrator of EPA’s New England office. “These settlement agreements clear the way to design and implement a final cleanup plan for the site, for the benefit of the community.”

From 1955 to 1991, SRSNE operated as a spent solvent processing and reclamation facility at the site. Millions of gallons of waste solvents and oils were handled, stored and processed at the facility. Past operating practices, such as the use of sludge lagoons and a leach field, contributed to contamination at SRSNE and surrounding properties. Poor housekeeping from a variety of practices, including the unloading and loading of tank trucks, the transfer of spent solvents to storage tanks, and as the improper handling and storage of drums, resulted in numerous leaks and spills to the bare ground and into the underlying aquifer.  The area near the site is a mixture of commercial, light industrial, residential and agricultural uses. The facility is located approximately 500 feet to the west of the Quinnipiac River.

The presence of volatile organic compounds (VOCs) in drinking water forced the closure of the town of Southington's Production Well No. 4 in 1976, and Production Well No. 6 in 1979. Subsequent environmental investigations revealed that SRSNE was a major source of VOC contamination to the groundwater in this area.

From 1983 to 1988, EPA and the state of Connecticut took enforcement actions to compel SRSNE to clean up the facility and its operations. SRSNE failed to comply with these enforcement efforts and shut down in 1991.  In 1992, EPA removed soil contaminated with VOCs and polychlorinated biphenyls (PCBs) from a drainage ditch along the eastern side of the operations area. Chemicals stored on site also were removed.

From 1995 to 2005, the Potentially Responsible Parties' Group (businesses and individuals that sent waste material to SRSNE) installed and operated a groundwater and containment system for the overburden and bedrock aquifers. The combined system has extracted and treated more than 85 million gallons of contaminated groundwater to date and has removed an estimated 12,500 pounds of VOCs.  In addition, the group has completed various investigations and studies, constructed a wetland in the flood plain of the Quinnipiac River adjacent to the site, and decontaminated, demolished and removed all the original buildings and tanks in the former operations areas of the site.

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Man Sentenced for Conspiracy to Provide Material Support to Terror Organization - 15:19, Oct. 30, 2008

Man Sentenced for Conspiracy to Provide Material Support to Terror Organization

Aided Tamil Tiger Terrorists in the Attempted Purchase of Surface to Air Missiles, Night Vision Devices, Machine Guns and State of the Art Firearms

BALTIMORE, MD -- U.S. District Judge Catherine C. Blake sentenced Haniffa Bin Osman, age 57, a citizen of the Republic of Singapore, today to 37 months in prison followed by three years of supervised release for conspiracy to provide material support to a designated foreign terrorist organization and money laundering, announced United States Attorney for the District of Maryland Rod J. Rosenstein.

United States Attorney Rod J. Rosenstein said, "Haniffa Bin Osman conspired with others to provide material support to the Tamil Tigers, a designated foreign terrorist organization, and attempted to illegally export arms, including state of the art firearms, grenade launchers, night vision devices, surface to air missiles and unmanned aerial vehicles. We will use all available legal tools to prevent terrorism, including undercover operations targeting people who attempt to obtain military weapons in violation of American law."

According to the plea agreement, from April to September 29, 2006 Osman conspired with Haji Subandi, Erick Wotulo and Thirunavukarasu Varatharasa to provide state-of-the-art firearms, machine guns and ammunition, surface to air missiles, night vision goggles and other military weapons to the Liberation Tigers of Tamil Eelam (Tamil Tigers) operating within Sri Lanka, to be used to fight against Sri Lankan government forces. The conspirators contacted an undercover business in Maryland about the sale of military weapons, requesting price quotes and negotiating the purchases. Subandi sent an itemized list of 53 military weapons, including sniper rifles, machine guns and grenade launchers that he wanted to acquire for the Tamil Tigers. Subandi advised the undercover business that Osman would inspect the weapons for the Tamil Tigers. Wotulo also advised that the chief of Tamil Tigers requested that he and Osman travel to Baltimore to meet with the undercover agents.

In July 2006, Osman met with undercover agents in Baltimore and stated that the weapons were for the Tamil Tigers from Sri Lanka. Osman said that he was not a Tamil Tigers member but was helping them obtain weapons. The agents showed Osman a number of weapons, ammunition and night vision devices.

While in Baltimore, Osman discussed the illegality of the transfer of the arms to the Tamil Tigers and provided navigational coordinates for a delivery in the Indian Ocean. Osman stated that if the first transfer of the weapons were successful, the second order could be worth as much as $15 million. Osman also inquired about pricing for unmanned aerial vehicles, and test-fired several weapons, including machine guns and sniper rifles. Osman discussed the commission he would receive for the arms sale and stated that Varatharasa would inspect the weapons and travel on the boat which was to carry the weaponry to the delivery point. He also raised the possibility that members of the Sea Tigers, the Marine Unit of the Tamil Tigers, would also escort the weapons to their final destination.

On August 1, 2006, Osman told the undercover agents that the Tamil Tigers wired a deposit of $250,000 as a down payment for the purchase of the weapons. Indeed, the next day $250,000 was wired from Malaysia to an undercover bank account in Maryland. Later that month Osman requested that the undercover business provide photographs and technical specifications for surface to air missiles.

Osman arrived in Guam on September 26, 2006 and inspected various machine guns, sniper rifles and ammunition. He also inspected two surface to air missiles and agreed to communicate with others within the Tamil Tigers about the availability and pricing of the missiles. After the inspection was completed, Osman agreed to arrange for the transfer of additional monies into an undercover bank account in Maryland as further payment for the arms and munitions. On September 28 an additional $452,000 was wired from Malaysia to the undercover account in Maryland as a further down payment on the $900,000 worth of weapons ordered by the Tamil Tigers.

 On September 29, 2006, Wotulo arrived in Guam and met with Osman and undercover agents to discuss the ship-board loading of the arms and munitions. They also discussed current and future sales of weapons to the Tamil Tigers with undercover agents. They were then arrested.

"This case demonstrates the cooperative and relentless efforts of U.S. law enforcement agencies to pursue terrorist organizations and their illicit supporters." said Scot Rittenberg, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement (ICE) in Baltimore. "ICE will continue to do everything we can to keep sophisticated U.S. weapons from falling into the hands of terrorists." 

"Terrorist organizations continue to seek a sophisticated range of military-grade weaponry and equipment from transnational dealers which can be utilized in furtherance of violent campaigns," said James R. Ives, Special Agent in Charge of the Defense Criminal Investigative Service's Mid-Atlantic Field Office. "Individuals who knowingly provide support to these groups fuel global insecurity; they are as culpable as those who use the illicit weapons and equipment to carry out vicious attacks. The results of this investigation are indicative of the Defense Criminal Investigative Service's commitment to working with the Department of Justice and law enforcement partners to bring criminals seeking to profit from illegal munitions sales to justice."

Thirunavukarasu Varatharasa, age 38, a citizen of the Democratic Socialist Republic of Sri Lanka, pleaded guilty and was sentenced to 57 months in prison for the conspiracy and attempted arms exportation.

Subandi, age 71, a citizen of the Republic of Indonesia, pleaded guilty and was sentenced to 37 months in prison for conspiracy to provide material support to a foreign terrorist organization, money laundering and attempted exportation of arms and munitions.

Wotulo, age 60, a citizen of the Republic of Indonesia, and a retired Indonesian Marine Corps General, pleaded guilty and was sentenced to 30 months in prison for the conspiracy and money laundering.

Founded in 1976, the Tamil Tigers has advocated the violent overthrow of the Sri Lankan government, employing acts of violence, including suicide bombings, against both civilian and military targets. Approximately 200 such attacks have been attributed to the Tamil Tigers to date. The Tamil Tigers relies heavily upon supporters throughout the world to raise and launder money, acquire intelligence and purchase military use technology. The U.S. Department of State designated the Tamil Tigers as a Foreign Terrorist Organization in1997. As such, the Tamil Tigers cannot legally raise money or procure operational equipment in the United States.

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Third Man Pleads Guilty to Hate Crime for Anti-Muslim Vandalism in Massachusetts - 19:23, Oct. 22, 2008

Third Man Pleads Guilty to Hate Crime for Anti-Muslim Vandalism in Massachusetts
WASHINGTON – Adam J. Bonito, of Boston, Mass., pleaded guilty today to a one-count information charging him with conspiracy to interfere with the fair housing rights of two Arab-Muslim families living in Revere, Mass., during late 2004 and early 2005.

Bonito is the third co-conspirator to plead guilty to the bias-motivated crime. Christopher D. Giaquinto pleaded guilty on Oct. 10, 2008, to the same criminal charge and a third co-conspirator pleaded guilty earlier in the month to a juvenile delinquency charge arising out of the same bias-motivated acts of vandalism.

Bonito, now 21, was 17-years-old when he and his co-defendants repeatedly vandalized and damaged vehicles that were parked in front of the duplex home shared by two Arab-Muslim families in September 2004 and then again on four separate occasions in January and again in March 2005. Giaquinto, also now 21, was also 17-years-old when he and Bonito, along with other conspirators not named in the information, vandalized and damaged a van parked outside the victims’ home on Sept. 19, 2004, breaking a windshield and several windows and damaging the body of the van.

Both defendants admitted that they conspired to vandalize the van belonging to one of the residents in order to interfere with the housing rights of the families because of their race, religion and national origin. On four subsequent occasions during January and March 2005, Bonito and another conspirator vandalized and broke the windows of a different van parked in front of the residence that they believed belonged to the same victim, but which in fact belonged to another Muslim family living in the same duplex. Both families eventually moved from their homes.

Bonito and Giaquinto each face a maximum sentence of one year in prison, a $100,000 fine, one year of supervised release, and an unspecified amount of restitution to be paid to the victims, who suffered significant property damage.

"Tolerance is a core American value," said Acting Assistant Attorney General Grace Chung Becker. "It is vital that we vigorously pursue cases like this, where the basic right to live peacefully and without fear in one’s own home has been infringed. The protection of the rights of Arabs and Muslims, like the rights of all individuals victimized because of their race, religion or national origin, remains one of our highest priorities at the Department of Justice."

"Our nation’s foundation is built on the principles of freedom," said Michael J. Sullivan, U.S. Attorney for the District of Massachusetts. "We stand ready to defend and protect each and every citizen and visitor from crimes motivated by ignorance and intolerance and based on hate, harassment and intimidation."

After an investigation that remained open for four years, new evidence was discovered last year that led to the three guilty pleas.

Since Sept. 11, 2001, the Civil Rights Division, the Federal Bureau of Investigation and U.S. Attorneys offices around the country have investigated more than 800 incidents involving violence, threats, vandalism and arson against Arab-Americans, Muslims, Sikhs, South-Asian Americans and other people perceived to be of Middle Eastern origin.

The incidents have ranged from telephone, Internet, mail, and face-to-face threats to vandalism and minor assaults to deadly attacks, arson and bombings directed at homes, businesses, and places of worship. In addition to these three guilty pleas in Boston, federal charges have been brought against 43 other defendants with 37 convictions thus far. Federal law enforcement authorities have also assisted numerous local prosecutions.

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U.S. Indicts Former Chicago Police Cmdr. On Perjury, Obstruction of Justice Charges Related to Alleged Torture and Physical Abuse - 21:40, Oct. 21, 2008

U.S. Indicts Former Chicago Police Cmdr. On Perjury, Obstruction of Justice Charges Related to Alleged Torture and Physical Abuse

WASHINGTON – Former Chicago Police Commander Jon Burge was arrested today at his home in Florida on federal obstruction of justice and perjury charges for allegedly lying about whether he and other officers under his command participated in torture and physical abuse of suspects in police custody dating back to the 1980s. Burge was charged with two counts of obstruction of justice and one count of perjury in a three-count indictment that was returned under seal by a federal grand jury last Thursday, Oct. 16. 2008, and unsealed following his arrest.

The indictment was announced jointly by Grace Chung Becker, Acting Assistant Attorney General for the U.S. Justice Department’s Civil Rights Division, Patrick J. Fitzgerald, U.S. Attorney for the Northern District of Illinois, and Robert D. Grant, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.

Today’s indictment alleges that Burge lied and impeded court proceedings in November 2003 when he provided written answers to questions, known as interrogatories, in a civil lawsuit alleging that he and others tortured and abused people in their custody.

"Throughout our nation, our fine law enforcement officers make daily sacrifices in the pursuit of justice," said Acting Assistant Attorney General Becker. "It is imperative that we take these charges seriously but also bear in mind they do not reflect upon the conduct of the vast majority of law enforcement officers."

"There is no place for torture and abuse in a police station. There is no place for perjury and false statements in federal lawsuits," said U.S. Attorney. Fitzgerald. "No person is above the law, and nobody – even a suspected murderer – is beneath its protection. The alleged criminal conduct by defendant Burge goes to the core principles of our criminal justice system."

"Everyday Chicago Police Officers execute their sworn duties lawfully with great skill, courage and integrity," said Special Agent-in-Charge Grant. "Sometimes they do so with great peril, as we have been sadly reminded in recent weeks and months. But police officers have a special duty which is underscored by today's announcement. Police officers don't serve the public as judge and jury and they have a special responsibility to care for those within their custody, regardless of their alleged crimes. Today’s announcement brings great shame on the career of retired Commander Jon Burge. These charges will not erase the pain within our Chicago community, but perhaps it can help begin the healing process."

Burge, 60, of Apollo Beach. Fla., is expected to have an initial appearance later today in Federal Court in Tampa. No date has yet been set for him to appear in U.S. District Court in Chicago, where he will face prosecution.

According to the indictment, Burge was a Chicago Police Officer from 1970 to 1993. He served in several jurisdictions throughout the city, as a detective from 1972-1974, a sergeant from 1977-1980, and a lieutenant commanding detectives working in the Area Two violent crimes unit from about 1981-1986 . Subsequently, he was commander of the Bomb and Arson Unit, and, later, commander of Area Three detectives. Burge was suspended by the Chicago Police Department in 1991 and fired in 1993.

The indictment alleges that during the time Burge worked in Area Two, he was present on one or more occasions for, and at times participated in, the torture and physical abuse of persons in police custody. It is further alleged that during the time he worked as the lieutenant supervising Area Two violent crimes detectives, Burge was aware that detectives he supervised, on one or more other occasions, engaged in torture and physical abuse of people in their custody.

Chicago Police Department regulations, as well as state and federal law, prohibit torture, physical abuse and other use of excessive force by police officers.

Since 1991, a series of police brutality civil lawsuits have been filed alleging that Burge and other detectives and police officers under his command participated in torture and abuse of suspects. One such case, Hobley v. Burge, et al., filed in 2003 in U.S. District Court in Chicago, alleged that plaintiff Madison Hobley was tortured and abused by police officers at Area Two headquarters in January 1987 in order to coerce a confession. The suit included an allegation that police officers had placed a plastic bag over Hobley’s head until he lost consciousness.

The Hobley lawsuit claimed that Burge was aware of a pattern of torture and abuse at Area Two police headquarters. The indictment does not, however, allege that Hobley was tortured or abused.

During the discovery process in civil litigation, Hobley’s attorneys served Burge with written interrogatories. Burge’s written responses are the basis for today’s charges, which allege that Burge corruptly obstructed, influenced and impeded an official proceeding by signing answers containing false statements in response to two interrogatories in the Hobley litigation.

If convicted, Burge faces a statutory maximum penalty of 20 years in prison on each count of obstruction of justice, five years for perjury, and a $250,000 fine on each count.

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Executives of Michigan Wastewater Treatment Company Found Guilty of Illegally Discharging Untreated Liquid Wastes - 21:39, Oct. 21, 2008

Executives of Michigan Wastewater Treatment Company Found Guilty of Illegally Discharging Untreated Liquid Wastes

WASHINGTON—A federal jury in Detroit has convicted three former managers of Comprehensive Environmental Solutions, Inc. (CESI), a company that operates an industrial waste treatment and disposal facility in Dearborn, Mich., following a three week jury trial before U.S. District Judge Victoria A. Roberts, announced Ronald J. Tenpas, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division, and Terrence Berg, Acting U.S. Attorney for the Eastern District of Michigan.

Michael Panyard, of Pleasant Ridge, Mich., the former general manager of the company, was convicted of nine counts, including one conspiracy count, two counts of violating the Clean Water Act and six counts of making false statements in connection with illegal discharges of millions of gallons of untreated liquid wastes from the facility.  Charles Long, of Brownstown, Mich., a former plant manager, was convicted of conspiracy and a Clean Water Act violation.  Bryan Mallindine, of Carlsbad, Calif., the former chief executive officer, was convicted of one count of negligently bypassing the facility's required pretreatment system, a misdemeanor violation of the Clean Water Act.

According to the evidence presented during the trial, CESI had a permit to treat liquid industrial waste brought to the facility from throughout the Midwest and Canada, through a variety of processes, and then discharge it into the Detroit sanitary sewer system.  The facility contained twelve large above-ground tanks capable of holding more than 10 million gallons of liquid industrial wastes.

During the period of January 2001 to June 2002, facility employees routinely bypassed the facility’s treatment system in order to discharge untreated liquid wastes directly into the sanitary sewer system.  During most of this time, the facility had no operable equipment to treat incoming liquid wastes and the 10 million gallon tank farm was full, with virtually no capacity to store additional liquid wastes.  Nonetheless, the facility continued to accept more than 16 million gallons of liquid industrial waste-streams for purported treatment and disposal.  Because the facility had no space available for this additional waste, nor equipment to treat it, company employees discharged nearly 13 million gallons of untreated liquid waste into the sanitary sewer in violation of the Clean Water Act, the facility’s permit and the consent order under which the facility operated.

Evidence at trial further showed that the defendants took steps to conceal the lack of treatment from customers and regulatory officials, including Detroit Water and Sewerage Department personnel, through false statements, tampering with legally required compliance samples, and obstruction.  After an oil release to the Rouge River in April 2002 caused a team of federal, state and local officials to investigate the source of the release, facility employees, based on the authorization and consent of Mallindine, cemented over a floor drain at the facility, which was a potential outlet for discharges of oily wastes to the sewer.

“Today’s result emphasizes the importance of compliance with laws and regulations designed to protect the environment,” said Assistant Attorney General Tenpas. “Vigorous enforcement ensures that companies in the waste treatment business compete on an even playing field, that industrial customers can be confident that their wastes are being properly handled, and that the public enjoys a safe clean environment.”

Acting U.S. Attorney Berg said, “Our federal environmental laws are there to protect people and the environment from the risks of those who would put profit ahead of public safety.  There will be significant legal consequences – including criminal prosecution – for any companies or persons who dump millions of gallons of industrial waste into our sewer system.” 

“The defendants not only illegally dumped millions of gallons of oil based industrial waste into the sewer system, but also engaged in a concerted effort to cover it up,” said Randall Ashe, Acting Special Agent in Charge of the Environmental Protection Agency’s Criminal Investigation Division in Chicago. “Today’s convictions show that the public has no tolerance for those who commit environmental crimes.”

An additional plant manager pleaded guilty earlier this year to violating the Clean Water Act and has not yet been sentenced.

On Sept. 4, 2008, CESI pleaded guilty to related charges and agreed to pay a fine of $600,000 plus an additional $150,000 to fund a community service project for the benefit, preservation and restoration of the environment and ecosystems in the waters adjoining the Rouge River and the Detroit River.  In addition to accepting responsibility today for its past misconduct, CESI, which is under new management, has taken a number of steps during the last several years to install new equipment and systems to treat liquid industrial waste before it is discharged to the sewer. 

As a condition of probation, CESI has agreed to abide by the terms of a consent order with the Michigan Department of Environmental Quality for the cleanup of the facility, at an estimated cost of about $1.5 million that includes the proper disposal of the liquid waste previously stored in the facility’s tank farm.  CESI has further agreed to develop, adopt, implement and fund an environmental management system/compliance plan at its facility.  This will include an annual program to train employees on environmental compliance and ethics, to ensure that all CESI employees understand the requirements imposed by the facility’s discharge permit.

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us Crime rates 1998 to 2007 - 08:05, Oct. 15, 2008

Year	Population1	Violent crime	Violent crime rate	Murder and nonnegligent manslaughter	Murder and nonnegligent manslaughter rate	Forcible rape	Forcible rape rate	Robbery	Robbery rate	Aggravated assault	Aggravated assault rate	Property crime	Property crime rate	Burglary	Burglary rate	Larceny-theft	Larceny-theft rate	Motor vehicle theft	Motor vehicle theft rate
1988	244,498,982	1,566,221	640.6	20,675	8.5	92,486	37.8	542,968	222.1	910,092	372.2	12,356,865	5,054.0	3,218,077	1,316.2	7,705,872	3,151.7	1,432,916	586.1
1989	246,819,230	1,646,037	666.9	21,500	8.7	94,504	38.3	578,326	234.3	951,707	385.6	12,605,412	5,107.1	3,168,170	1,283.6	7,872,442	3,189.6	1,564,800	634.0
1990	249,464,396	1,820,127	729.6	23,438	9.4	102,555	41.1	639,271	256.3	1,054,863	422.9	12,655,486	5,073.1	3,073,909	1,232.2	7,945,670	3,185.1	1,635,907	655.8
1991	252,153,092	1,911,767	758.2	24,703	9.8	106,593	42.3	687,732	272.7	1,092,739	433.4	12,961,116	5,140.2	3,157,150	1,252.1	8,142,228	3,229.1	1,661,738	659.0
1992	255,029,699	1,932,274	757.7	23,760	9.3	109,062	42.8	672,478	263.7	1,126,974	441.9	12,505,917	4,903.7	2,979,884	1,168.4	7,915,199	3,103.6	1,610,834	631.6
1993	257,782,608	1,926,017	747.1	24,526	9.5	106,014	41.1	659,870	256.0	1,135,607	440.5	12,218,777	4,740.0	2,834,808	1,099.7	7,820,909	3,033.9	1,563,060	606.3
1994	260,327,021	1,857,670	713.6	23,326	9.0	102,216	39.3	618,949	237.8	1,113,179	427.6	12,131,873	4,660.2	2,712,774	1,042.1	7,879,812	3,026.9	1,539,287	591.3
1995	262,803,276	1,798,792	684.5	21,606	8.2	97,470	37.1	580,509	220.9	1,099,207	418.3	12,063,935	4,590.5	2,593,784	987.0	7,997,710	3,043.2	1,472,441	560.3
1996	265,228,572	1,688,540	636.6	19,645	7.4	96,252	36.3	535,594	201.9	1,037,049	391.0	11,805,323	4,451.0	2,506,400	945.0	7,904,685	2,980.3	1,394,238	525.7
1997	267,783,607	1,636,096	611.0	18,208	6.8	96,153	35.9	498,534	186.2	1,023,201	382.1	11,558,475	4,316.3	2,460,526	918.8	7,743,760	2,891.8	1,354,189	505.7
1998	270,248,003	1,533,887	567.6	16,974	6.3	93,144	34.5	447,186	165.5	976,583	361.4	10,951,827	4,052.5	2,332,735	863.2	7,376,311	2,729.5	1,242,781	459.9
1999	272,690,813	1,426,044	523.0	15,522	5.7	89,411	32.8	409,371	150.1	911,740	334.3	10,208,334	3,743.6	2,100,739	770.4	6,955,520	2,550.7	1,152,075	422.5
2000	281,421,906	1,425,486	506.5	15,586	5.5	90,178	32.0	408,016	145.0	911,706	324.0	10,182,584	3,618.3	2,050,992	728.8	6,971,590	2,477.3	1,160,002	412.2
20012	285,317,559	1,439,480	504.5	16,037	5.6	90,863	31.8	423,557	148.5	909,023	318.6	10,437,189	3,658.1	2,116,531	741.8	7,092,267	2,485.7	1,228,391	430.5
2002	287,973,924	1,423,677	494.4	16,229	5.6	95,235	33.1	420,806	146.1	891,407	309.5	10,455,277	3,630.6	2,151,252	747.0	7,057,379	2,450.7	1,246,646	432.9
2003	290,788,976	1,383,676	475.8	16,528	5.7	93,883	32.3	414,235	142.5	859,030	295.4	10,442,862	3,591.2	2,154,834	741.0	7,026,802	2,416.5	1,261,226	433.7
2004	293,656,842	1,360,088	463.2	16,148	5.5	95,089	32.4	401,470	136.7	847,381	288.6	10,319,386	3,514.1	2,144,446	730.3	6,937,089	2,362.3	1,237,851	421.5
2005	296,507,061	1,390,745	469.0	16,740	5.6	94,347	31.8	417,438	140.8	862,220	290.8	10,174,754	3,431.5	2,155,448	726.9	6,783,447	2,287.8	1,235,859	416.8
20063	299,398,484	1,418,043	473.6	17,030	5.7	92,757	31.0	447,403	149.4	860,853	287.5	9,983,568	3,334.5	2,183,746	729.4	6,607,013	2,206.8	1,192,809	398.4
2007	301,621,157	1,408,337	466.9	16,929	5.6	90,427	30.0	445,125	147.6	855,856	283.8	9,843,481	3,263.5	2,179,140	722.5	6,568,572	2,177.8	1,095,769	363.3

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Connecticut Man Sentenced to 360 Months in Prison for Leading Brutal Sex Trafficking Ring That Victimized U.S. Citizens - 07:53, Oct. 15, 2008

Connecticut Man Sentenced to 360 Months in Prison for Leading Brutal Sex Trafficking Ring That Victimized U.S. Citizens
Prosecution Illustrates DOJ ‘Victim-Centered’ Model

WASHINGTON – Dennis Paris of Middletown, Conn., was sentenced today to 360 months in prison, five years of supervised release and $46,116 in restitution for his role in organizing and facilitating a prostitution ring that victimized minors and coerced multiple young women to engage in commercial sex acts against their will. Paris—one of 10 defendants associated with this trafficking ring—was convicted in June 2007 on multiple counts of commercial sex trafficking through force, fraud or coercion.

"As this case illustrates, human trafficking can victimize any vulnerable person, including U.S. citizens, and girls as young as 14-years-old," said Grace Chung Becker, Acting Assistant Attorney General for the Civil Rights Division. "The Department works with non-governmental organizations to address the needs of victims and our investigators and prosecutors take the time to earn their trust. This victim-centered approach has been essential to our success in dismantling networks who exploit minors or adults for commercial sex."

Paris, 36, was previously convicted on two counts of sex trafficking of minors, including a 14 year-old child; two counts of sex trafficking of adult women through force, fraud or coercion; 13 counts of using interstate facilities to promote and conduct a prostitution ring; and conspiracy to use an interstate facility to promote unlawful activities. All of the victims in this case were U.S. citizens, many of whom were young and vulnerable females, some addicted to drugs, and easily exploited. Nine co-defendants charged in connection with the scheme had previously pleaded guilty for their respective roles in the sex trafficking ring.

Evidence presented at trial demonstrated that Paris operated a prostitution scheme in the Hartford, Conn., area in which he exploited young, uneducated girls from troubled backgrounds and forced them to perform commercial sex acts for his financial benefit. The evidence demonstrated that Paris used a combination of deception, fraud, coercion, brutal rapes, threats of arrest, physical violence and manipulation of addictive drugs to maintain control over his victims.

The evidence established that Paris "purchased" two of the victims from a co-defendant, Brian Forbes, who previously pleaded guilty to five counts of sex trafficking and was sentenced to 13 years in prison for his role in recruiting and exploiting minors and vulnerable young women into prostitution, as well as using beatings, rapes, drug withdrawal, threats and unlawful restraint, to compel them to perform commercial sex acts.

"This defendant preyed on the vulnerabilities of girls and young women, and hopefully the strict sentence imposed today will deter others from participating in the sex trafficking businesses and manipulating women and minors into committing sexual acts under the threat of violence," said Acting U.S. Attorney Nora R. Dannehy.  "This investigation, prosecution and 30-year sentence combine to reflect that everyone is entitled to protection under the law."

Human trafficking prosecutions are a top priority of the Justice Department. In FY 2008, the Civil Rights Division once again initiated a record-number of human-trafficking cases, beating record-setting FY 2007. Working with the various U.S. Attorneys’ Offices, the Division initiated 183 investigations, charged 79 defendants in 38 cases and obtained 77 convictions involving human trafficking in FY 2008.

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Justice Department Files Suit Against Vermont, Secretary of State Markowitz for Noncompliance with Uniformed and Overseas Citizens Absentee Voting Act - 07:52, Oct. 15, 2008

Justice Department Files Suit Against Vermont, Secretary of State Markowitz for Noncompliance with Uniformed and Overseas Citizens Absentee Voting Act

WASHINGTON - The Justice Department announced today the filing of a lawsuit against the State of Vermont and Vermont Secretary of State Deborah L. Markowitz, alleging violations of the Uniformed Overseas Citizen Absentee Voting Act (UOCAVA).

UOCAVA is designed to ensure that uniformed military members and overseas citizens may effectively participate in federal elections. Vermont and the Secretary are responsible for collecting and reporting the number of military voters and overseas citizens who are sent ballots, return them and have them successfully cast in each federal general election. Vermont has failed to fulfill this important obligation ever since it became law in the Help America Vote Act of 2002. The complaint filed in the U.S. District Court in Burlington, Vt., seeks a declaration that Vermont has previously violated the law, and seeks an injunction against any future noncompliance.

"Accurate and complete information about whether our uniformed service members and overseas citizens are being given an effective opportunity to have their votes counted is essential," said Grace Chung Becker, Acting Assistant Attorney General for the Civil Rights Division. "Without it, Congress and the public cannot determine whether states are fulfilling their obligations to let uniformed service members and overseas citizens fully participate in our elections."

The Election Assistance Commission (EAC) publishes a report every two years and provides data for every state and jurisdiction in the country about how many absentee ballots were transmitted to UOCAVA voters, how many were returned and how many were cast in federal general elections. UOCAVA specifically mandates that state and local governments report to the EAC "not later than 90 days after the date of each regularly scheduled general election for Federal office" the "combined number of absentee ballots that are transmitted to absent uniformed services voters and overseas voters for the election and the combined number of such ballots which were returned by such voters and cast in the election." 42 U.S.C. § 1973ff-1(c) (2003). Further, the States must "make such a report available to the general public." Vermont has never submitted the reports required by this law. The Justice Department has the authority to bring an action to enforce compliance by the states.

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Former Enron Broadband Co-Chief Executive Officer Pleads Guilty to Wire Fraud - 07:50, Oct. 15, 2008

Former Enron Broadband Co-Chief Executive Officer Pleads Guilty to Wire Fraud
WASHINGTON – Joseph Hirko, former co-chief executive officer of Enron Broadband Services (EBS), Enron’s failed telecommunications business, pleaded guilty today to wire fraud, Acting Assistant Attorney General Matthew Friedrich of the Criminal Division and Assistant Director Kenneth W. Kaiser of the FBI Criminal Investigative Division announced.

Hirko, 52, of Portland, Ore., pleaded guilty to one count of a superseding indictment charging him with wire fraud before Judge Vanessa Gilmore at U.S. District Court in Houston. According to the terms of the plea agreement, Hirko faces a maximum sentence of 16 months in prison and a fine of up to $250,000. Sentencing has been scheduled for March 3, 2009. As part of his plea agreement, Hirko agreed to cooperate fully with the government’s ongoing criminal investigation of individuals formerly employed at EBS. In addition, Hirko agreed to forfeit approximately $8.7 million in restitution to the Enron victims through the U.S. Securities and Exchange Commission’s Enron Fair Fund.

In July 2005, Hirko and four other EBS executives were tried on various charges of conspiracy to commit securities and wire fraud, securities fraud, wire fraud, insider trading and money laundering relating to their employment at Enron. The trial resulted in a mistrial, and Hirko was subsequently charged in a new indictment with wire fraud, securities fraud and insider trading.

As described in the superseding indictment and the plea agreement, Hirko participated at Enron’s annual analyst conference in Houston at which Jeffrey Skilling, Enron’s former chief executive officer, introduced EBS as one of Enron’s "core" units. Skilling also announced the development of a broadband operating system or "BOS." According to the superseding indictment, the BOS was meant to be an "intelligent" operating system that would, among other things, automatically find the most optimal path to deliver data on Enron’s network, a process Enron dubbed "dynamic routing," link Enron’s network to other networks and provide guaranteed levels of service.

As alleged in the superseding indictment, Enron issued a press release on May 15, 2000, announcing the acquisition of Warpspeed Communications. According to the plea agreement, the press release falsely represented the status of the BOS and implied that it was already embedded and functioning as a part of Enron’s network; in particular, the press release stated that the BOS "allows application developers to dynamically provision bandwidth on demand for the end-to-end quality of service necessary to deliver broadband content." The plea agreement states that Hirko reviewed and approved this language even though he knew it contained material inaccurate representations of the BOS’s status. Hirko admitted that he knew the BOS was under development throughout his employment at Enron, was never embedded on Enron’s network and could not dynamically provide bandwidth on demand or provide for the end-to-end quality of service necessary to deliver broadband content. According to the plea agreement, Hirko’s approval of this press release, as well as other press releases, assisted in maintaining Enron’s overall stock price, thereby improperly increasing the value of Hirko’s holdings of Enron stock.

"Today’s plea closes another chapter in the Enron scandal," said Acting Assistant Attorney General Matthew Friedrich. "According to admissions made by Mr. Hirko as a part of his plea, he played a part in disseminating misstatements about the technical viability of Enron’s Broadband Services Division, and shareholders were left holding the bag."

"Mr. Hirko not only deceived his colleagues and investors about Enron’s ‘core’ broadband unit, but his actions had a greater impact on our nation’s economy and resulted in the eventual erosion of numerous retirement nest eggs," said Assistant Director Kenneth W. Kaiser, FBI Criminal Investigative Division. "The FBI remains committed to bringing to justice those responsible for corporate fraud and restoring the public’s confidence in our economy."

This case is being prosecuted by attorneys Jonathan E. Lopez, Jack B. Patrick and Liam B. Brennan of the Criminal Division’s Fraud Section.

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