Month: May 2022

Source: United States Department of Justice

The Department of Justice today announced that it has reached a settlement agreement with Cloud Peritus Inc., a California IT consulting services company. The settlement resolves the department’s claims that Cloud Peritus discriminated against a non-U.S. citizen by requesting that he present additional and unnecessary documents to prove his permission to work because of his citizenship status.

“Once employees have presented valid, acceptable documentation to prove their permission to work, employers cannot ask for more documentation because of the employees’ citizenship, immigration status, or national origin,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division is committed to ensuring all workers have the right to prove their permission to work free from unlawful discrimination.”

The department’s investigation determined that Cloud Peritus discriminated against a non-U.S. citizen by asking him for additional documentation to prove his permission to work, even though he had already provided sufficient documentation, based on his citizenship status. The investigation also revealed that the company’s discriminatory document request was partly caused by its misunderstanding of the software it used to verify employees’ permission to work, which the company believed required these documents from non-U.S. citizens.

The anti-discrimination provision of the Immigration and Nationality Act (INA) prohibits employers from asking for more or different documents than necessary to prove their permission to work in the United States because of a worker’s citizenship, immigration status or national origin. Employers should allow workers to present whatever valid documentation the workers choose and cannot reject valid documentation that reasonably appears to be genuine.

Under the settlement, Cloud Peritus will pay a civil penalty to the United States. The settlement also requires Cloud Peritus to train staff on the requirements of the INA’s anti-discrimination provision and be subject to departmental monitoring and reporting requirements. 

The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation. 

Learn more about IER’s work and how to get assistance through this brief video. Find more information on how employers can avoid citizenship status discrimination on IER’s website. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment, or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email IER@usdoj.gov; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER. View the Spanish translation of this release here.

Source: United States Department of Justice Criminal Division

A federal judge in Greeneville, Tennessee, sentenced a Michigan woman today to 168 months, the equivalent of 14 years, in prison for a scheme to steal trade secrets, engage in economic espionage and commit fraud. The defendant was also ordered to serve three years of supervised release and pay a $200,000 fine.

In April 2021, following a 13-day jury trial, Xiaorong You, aka Shannon You, 59, of Lansing, Michigan, was convicted of conspiracy to commit trade secret theft, conspiracy to commit economic espionage, possession of stolen trade secrets, economic espionage and wire fraud.

“As the evidence at trial showed, the defendant stole valuable trade secrets and intended to use them to benefit not only a foreign company, but also the government of China,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today’s sentence reflects the seriousness of this offense, as well as the Department of Justice’s commitment to protect our nation’s security by investigating and prosecuting those who steal U.S. companies’ intellectual property.”

“When companies invest huge amounts of time and money to develop world-class technologies, only to have those technologies stolen, the results are devastating,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Here, the defendant intended not only to enrich herself and her China-based partners, but also the government of China. Crimes like the defendant’s threaten both victim companies and the economic security of the nation as a whole. This case should serve as a warning to those entrusted with valuable trade secrets: if you break the law, you will be punished.”

“Stealing trade secrets of U.S. companies for the benefit of the Chinese government will be vigorously prosecuted in the Eastern District of Tennessee, and today’s 14-year sentence reflects the seriousness of this defendant’s crimes,” said U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee. “The corporate vigilance and subsequent cooperation with federal law enforcement that brought this defendant to justice is to be commended; our national security depends on it.”

“Stealing technology isn’t just a crime against a company,” said Acting Assistant Director Bradley S. Benavides of the FBI’s Counterintelligence Division. “It’s a crime against American workers whose jobs and livelihoods are impacted. Today’s sentencing is a reminder that the FBI and its partners will hold accountable those who break our laws and threaten our economic and national security.”

According to court documents and evidence presented at trial, You stole valuable trade secrets related to formulations for bisphenol-A-free (BPA-free) coatings for the inside of beverage cans. You was granted access to the trade secrets while working at The Coca-Cola Company in Atlanta, and Eastman Chemical Company in Kingsport, Tennessee. The stolen trade secrets belonged to major chemical and coating companies including Akzo-Nobel, BASF, Dow Chemical, PPG, Toyochem, Sherwin Williams and Eastman Chemical Company, and cost nearly $120 million to develop.

You stole the trade secrets to set up a new BPA-free coating company in China. You and her Chinese corporate partner, Weihai Jinhong Group, received millions of dollars in Chinese government grants to support the new company (including a Thousand Talents Plan award). You’s Thousand Talents Program application and other evidence presented at trial showed that she intended to benefit not only Weihai Jinhong Group, but also the governments of China, the Chinese province of Shandong, the Chinese city of Weihai and the Chinese Communist Party.

Until recently, BPA was used to coat the inside of cans and other food and beverage containers to help minimize flavor loss and prevent the container from corroding or reacting with the food or beverage contained therein. However, due to BPA’s potential health risks, companies began searching for BPA-free alternatives. Developing these BPA-free alternatives was a very expensive and time-consuming process.

From December 2012 through August 2017, You was employed as Principal Engineer for Global Research at Coca-Cola, which had agreements with numerous companies to conduct research and development, testing, analysis and review of various BPA-free technologies. Because of You’s extensive education and experience with BPA and BPA-free coating technologies, she was one of a limited number of Coca-Cola employees with access to BPA-free trade secrets belonging to Akzo-Nobel, BASF, Dow Chemical, PPG, Toyochem and Sherwin Williams. From approximately September 2017 through June 2018, You was employed as a packaging application development manager for Eastman Chemical Company in Kingsport, Tennessee, where she was one of a limited number of employees with access to trade secrets belonging to Eastman.

The FBI’s Knoxville Field Office and HSI investigated the case.

Assistant U.S. Attorney Mac D. Heavener III for the Eastern District of Tennessee; Senior Counsel Matt Walczewski of the Criminal Division’s Computer Crime and Intellectual Property Section; and Trial Attorney Nic Hunter of the National Security Division’s Counterintelligence and Export Control Section and are prosecuting the case. Valuable assistance was provided by Assistant U.S. Attorney T.J. Harker for the Eastern District of Tennessee.

Source: United States Department of Justice News

A federal judge in Greeneville, Tennessee, sentenced a Michigan woman today to 168 months, the equivalent of 14 years, in prison for a scheme to steal trade secrets, engage in economic espionage and commit fraud. The defendant was also ordered to serve three years of supervised release and pay a $200,000 fine.

Source: United States Department of Justice

Today, the U.S. Department of Justice announced the availability of approximately $40 million in funding in Community Policing Development (CPD) grants and roughly $5 million for the Collaborative Reform Initiative. Attorney General Merrick B. Garland first announced the expansion of technical assistance services offered to law enforcement agencies through the Collaborative Reform Initiative in March 2022.

The Community Oriented Policing Services’ (COPS Office) CPD funds are used to help law enforcement implement community policing through the development and testing of innovative strategies; building knowledge about effective practices and outcomes; and supporting creative approaches to preventing crime and promoting safe communities. The Collaborative Reform Initiative offers a range of intermediary and intensive forms of technical assistance, including targeted assistance following a critical incident, issue-specific reviews and analysis, and in-depth assessments on systemic issues that damage community trust and confidence. Each level of the initiative’s assistance is voluntary and provided at the request of law enforcement agencies.

“Nothing is more important than keeping our communities safe,” said Associate Attorney General Vanita Gupta. “Each day, approximately half a million people throughout the United States call 911 for help and there are hundreds of thousands more daily interactions between law enforcement and members of the communities they serve. The funding we are announcing today is critical to the department’s commitment to public safety and best practices in community policing.”

Highlights of the 2022 CPD funding include:

• Crisis Intervention Teams (CIT). Up to $10 million will support crisis intervention teams.
• De-escalation Training. Up to $15 million will support national level de-escalation training for officers through a network of regional centers.
• Accreditation. Up to $8 million to expand state accreditation programs and assist agencies with gaining accreditation will ensure compliance with state and national standards, covering all aspects of law enforcement policies, procedures and practices.
• COPS Microgrants. Up to $5 million will support local agencies’ demonstration or pilot projects, known as COPS Microgrants. These projects offer creative ideas to advance crime fighting, community engagement, problem solving or organizational changes to support community policing.
• Tolerance, Diversity and Anti-Bias Training. Up to $2 million will support the delivery of tolerance, diversity and anti-bias training for law enforcement officers.

The Collaborative Reform Initiative continuum includes:

• A continuation of the Collaborative Reform Initiative Technical Assistance Center (CRI-TAC). Established in 2017, CRI-TAC provides a wide range of targeted technical assistance services and involves a coalition of support and expertise from ten leading law enforcement stakeholder organizations. Through CRI-TAC’s “by the field, for the field” approach, the department facilitates customizable, short-term technical assistance on more than 60 topics. Last year, CRI-TAC worked with over 170 law enforcement agencies. The new initiative will maintain CRI-TAC as its first level of support.
• An updated Critical Response. A law enforcement agency experiencing a high-profile event or other special circumstance will be able to reach out to the COPS Office for needed technical assistance. Like CRI-TAC, this program is also customizable and provides flexible assistance to law enforcement agencies in a variety of ways. Once an agency connects with the Department of Justice, tools will be in place to offer support ranging from after-action reviews, to peer-to-peer exchanges, to data analysis and recommendations, to facilitating discussions with experts. The initiative will maintain the Critical Response program as its second level of support.
• An updated Organizational Assessments. This program will offer the most intensive form of support, involving in-depth assessments on systemic issues. Under the new initiative, areas for reform will be addressed with timely, ongoing and actionable guidance. Participating agencies will be provided with the technical assistance they need to accomplish reforms as they are identified. This program is a voluntary opportunity for an agency that knows it needs to make changes and wants to make changes. The department will prioritize offering this third level of support to agencies that have a clear desire to engage with the model and advance community policing.

The CPD solicitation will close on June 23, 2022, and the Collaborative Reform solicitation will close on July 8, 2022. Additional information can be found on the COPS website at https://cops.usdoj.gov/grants.

The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to agency for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served. The COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and Tribal law enforcement agencies to fund the hiring and redeployment of more than 135,000 officers.

Source: United States Department of Justice News

TUCSON, Ariz. – Last week, a federal grand jury in Tucson returned a two-count indictment against Timothy Mikell Schultheis, aka Jackson Oden, 24, of South Carolina, charging Transportation of a Minor with Intent to Engage in Criminal Sexual Activity and Travel with Intent to Engage in Illicit Sexual Conduct.

The indictment alleges that on or about March 20, 2022, Schultheis knowingly transported Jane Doe, a 12-year-old minor, in interstate commerce by taking her from the state of Arizona to the state of South Carolina, with intent to engage in criminal sexual activity. The indictment further alleges that Schultheis traveled in interstate commerce from Arizona to South Carolina for the purpose of engaging in illicit sexual conduct with the minor.

According to the complaint filed last month, the 12-year-old was reported missing after she left her home on the morning of March 20, 2022 and did not return. The minor’s Facebook account revealed communications with 24-year-old Schultheis, including his plan to travel from South Carolina and pick up the child in Safford, and his intention to engage in sexual conduct with her. When Schultheis was arrested at his apartment in South Carolina on March 30, 2022, Jane Doe was found in the apartment. 

A conviction for the crime of Transportation of a Minor with Intent to Engage in Criminal Sexual Activity carries a mandatory minimum penalty of 10 years imprisonment and a maximum penalty of life imprisonment. A conviction for the crime of Travel with Intent to Engage in Illicit Sexual Activity carries a maximum penalty of 30 years imprisonment.

An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

The FBI in Sierra Vista and the Graham County Sheriff’s Department conducted the investigation in this case. Assistant U.S. Attorneys Carin Duryee and Raquel Arellano, District of Arizona, Tucson, are handling the prosecution.

CASE NUMBER:            CR-22-00973-TUC-RM
RELEASE NUMBER:    2022-062_Schultheis

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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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