Month: January 2023

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United States Attorney’s Office Reaches $639,916 Settlement with Governor of Maryland’s Office on Service and Volunteerism to Resolve Alleged False Claims for AmeriCorps Program Funds

Source: United States Department of Justice News

Baltimore, Maryland – The State of Maryland Governor’s Office on Service and Volunteerism (“GOSV”), a division within the Governor’s Office on Community Initiatives (“GOCI”), has agreed to pay the United States $639,916 and enter into a compliance agreement to resolve a civil False Claims Act investigation relating to the operation of its AmeriCorps program. 

The settlement agreement was announced today by United States Attorney for the District of Maryland Erek L. Barron and AmeriCorps’ Inspector General Deborah Jeffrey.

“This settlement demonstrates our firm commitment to protect taxpayer money and to guard the integrity of federal grant funds,” said United States Attorney Erek L. Barron.  “State agencies, such as GOSV and GOCI, are required to properly account for their use of federal grant funds and when they fail to do so they will be held accountable,” said U.S. Attorney Barron.

“AmeriCorps depends on state service commissions to be partners in stewardship of national service funds.  The Maryland Governor’s Office on Service and Volunteerism failed in that trust by overstating its expenses and other irregularities that deprived at-risk communities of benefits intended for them,” said Deborah Jeffrey, AmeriCorps’ Inspector General.  “We thank the U.S. Attorney’s Office for the District of Maryland for their work in protecting the integrity of national service.”

AmeriCorps’ mission is to engage millions in service and national volunteer efforts. State Commissions, such as the State of Maryland Governor’s Office on Service and Volunteerism (“GOSV”), administer AmeriCorps programs which includes oversight and administration of AmeriCorps’ grant funds to subgrantees.  GOSV, which is part of GOCI, supports more than 800 AmeriCorps members each year in the State of Maryland through its grant-making program.  In 2016 AmeriCorps awarded GOSV a grant “[t]o promote and recognize volunteer activities throughout the state with events such as: Governor’s Service Awards, Governor’s Volunteer Appreciation Day at the Maryland State Fair, and Honor Rows to recognize youth groups who are active in their community the chance to attend a Baltimore Ravens game free of charge.”  Pursuant to the terms of the AmeriCorps’ grant, GOSV was required to maintain a financial management system that provided accurate, current, and complete disclosure of the financial results of each Federal award and retain records that identify adequately the source and application of funds.  GOCI provides accounting services to GOSV and other coordinating offices and thus was involved in the administration of the AmeriCorps grant awards.

The United States contends that GOSV and GOCI engaged in widespread violations of the AmeriCorps grant requirements, including distributing Orioles and Maryland State Fair tickets that were intended to be given to volunteers to individuals who were not eligible under the grant, including GOSV employees themselves, charging salaries of GOSV and GOCI employees, including the Director of GOSV, to the AmeriCorps grant without timesheets or time records to reflect the fact these individuals worked on the AmeriCorps grant, and overcharging AmeriCorps on certain Federal Financial Reports (“FFR”) that were submitted to AmeriCorps to demonstrate how GOSV expended the grant funds.  Additionally, GOSV and GOCI entered into an expansive, three year Compliance Agreement with AmeriCorps that will govern and monitor the AmeriCorps GOSV awards to ensure compliance with AmeriCorps grant procedures.

The claims resolved by this settlement are allegations only, and there has been no determination of liability. 

U.S. Attorney Erek L. Barron commended the investigation which was conducted by the AmeriCorps Office of Inspector General.  The case was handled by Assistant United States Attorney Thomas Corcoran.

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Justice Department Sues Google for Monopolizing Digital Advertising Technologies

Source: United States Department of Justice News

Through Serial Acquisitions and Anticompetitive Auction Manipulation, Google Subverted Competition in Internet Advertising Technologies

Today, the Justice Department, along with the Attorneys General of California, Colorado, Connecticut, New Jersey, New York, Rhode Island, Tennessee, and Virginia, filed a civil antitrust suit against Google for monopolizing multiple digital advertising technology products in violation of Sections 1 and 2 of the Sherman Act.

Filed in the U.S. District Court for the Eastern District of Virginia, the complaint alleges that Google monopolizes key digital advertising technologies, collectively referred to as the “ad tech stack,” that website publishers depend on to sell ads and that advertisers rely on to buy ads and reach potential customers. Website publishers use ad tech tools to generate advertising revenue that supports the creation and maintenance of a vibrant open web, providing the public with unprecedented access to ideas, artistic expression, information, goods, and services. Through this monopolization lawsuit, the Justice Department and state Attorneys General seek to restore competition in these important markets and obtain equitable and monetary relief on behalf of the American public.

As alleged in the complaint, over the past 15 years, Google has engaged in a course of anticompetitive and exclusionary conduct that consisted of neutralizing or eliminating ad tech competitors through acquisitions; wielding its dominance across digital advertising markets to force more publishers and advertisers to use its products; and thwarting the ability to use competing products. In doing so, Google cemented its dominance in tools relied on by website publishers and online advertisers, as well as the digital advertising exchange that runs ad auctions.

“Today’s complaint alleges that Google has used anticompetitive, exclusionary, and unlawful conduct to eliminate or severely diminish any threat to its dominance over digital advertising technologies,” said Attorney General Merrick B. Garland. “No matter the industry and no matter the company, the Justice Department will vigorously enforce our antitrust laws to protect consumers, safeguard competition, and ensure economic fairness and opportunity for all.”

“The complaint filed today alleges a pervasive and systemic pattern of misconduct through which Google sought to consolidate market power and stave off free-market competition,” said Deputy Attorney General Lisa O. Monaco. “In pursuit of outsized profits, Google has caused great harm to online publishers and advertisers and American consumers. This lawsuit marks an important milestone in the Department’s efforts to hold big technology companies accountable for violations of the antitrust laws.”

“The Department’s landmark action against Google underscores our commitment to fighting the abuse of market power,” said Associate Attorney General Vanita Gupta. “We allege that Google has captured publishers’ revenue for its own profits and punished publishers who sought out alternatives. Those actions have weakened the free and open internet and increased advertising costs for businesses and for the United States government, including for our military.”

“Today’s lawsuit seeks to hold Google to account for its longstanding monopolies in digital advertising technologies that content creators use to sell ads and advertisers use to buy ads on the open internet,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Our complaint sets forth detailed allegations explaining how Google engaged in 15 years of sustained conduct that had — and continues to have — the effect of driving out rivals, diminishing competition, inflating advertising costs, reducing revenues for news publishers and content creators, snuffing out innovation, and harming the exchange of information and ideas in the public sphere.”

Google now controls the digital tool that nearly every major website publisher uses to sell ads on their websites (publisher ad server); it controls the dominant advertiser tool that helps millions of large and small advertisers buy ad inventory (advertiser ad network); and it controls the largest advertising exchange (ad exchange), a technology that runs real-time auctions to match buyers and sellers of online advertising.

Google’s anticompetitive conduct has included:

  • Acquiring Competitors: Engaging in a pattern of acquisitions to obtain control over key digital advertising tools used by website publishers to sell advertising space;
  • Forcing Adoption of Google’s Tools: Locking in website publishers to its newly-acquired tools by restricting its unique, must-have advertiser demand to its ad exchange, and in turn, conditioning effective real-time access to its ad exchange on the use of its publisher ad server;
  • Distorting Auction Competition: Limiting real-time bidding on publisher inventory to its ad exchange, and impeding rival ad exchanges’ ability to compete on the same terms as Google’s ad exchange; and
  • Auction Manipulation: Manipulating auction mechanics across several of its products to insulate Google from competition, deprive rivals of scale, and halt the rise of rival technologies.

As a result of its illegal monopoly, and by its own estimates, Google pockets on average more than 30% of the advertising dollars that flow through its digital advertising technology products; for some transactions and for certain publishers and advertisers, it takes far more. Google’s anticompetitive conduct has suppressed alternative technologies, hindering their adoption by publishers, advertisers, and rivals.

The Sherman Act embodies America’s enduring commitment to the competitive process and economic liberty. For over a century, the Department has enforced the antitrust laws against unlawful monopolists to unfetter markets and restore competition. To redress Google’s anticompetitive conduct, the Department seeks both equitable relief on behalf of the American public as well as treble damages for losses sustained by federal government agencies that overpaid for web display advertising. This enforcement action marks the first monopolization case in approximately half a century in which the Department has sought damages for a civil antitrust violation.

In 2020, the Justice Department filed a civil antitrust suit against Google for monopolizing search and search advertising, which are different markets from the digital advertising technology markets at issue in the lawsuit filed today. The Google search litigation is scheduled for trial in September 2023.

Google is a limited liability company organized and existing under the laws of the State of Delaware, with a headquarters in Mountain View, California. Google’s global network business generated approximately $31.7 billion in revenues in 2021. Google is owned by Alphabet Inc., a publicly traded company incorporated and existing under the laws of the State of Delaware and headquartered in Mountain View, California.

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Former Energy Company Executive Sentenced for $15 Million Investment Fraud

Source: United States Department of Justice News

A California man was sentenced today to five years in prison for defrauding investors of more than $15 million in connection with a scheme to misappropriate investor funds for his own personal use.

Joey Stanton Dodson, 58, formerly of Indio, pleaded guilty in the Northern District of California to one count of wire fraud on June 14, 2022.

According to court documents, between November 2012 and May 2015, Dodson engaged in a scheme to defraud investors while serving as the executive chairman and managing partner of Citadel Energy (Citadel), which purported to provide fluid-management services to oil and gas companies. In his role, Dodson was responsible for raising funds, controlling the bank accounts, and disseminating financial information to investors for three limited partnerships affiliated with Citadel. As part of the scheme, Dodson made materially false and misleading representations and omissions to prospective and existing investors about the intended use of investor funds, the status of a potential acquisition by a private-equity firm, and Dodson’s own compensation. 

After inducing victims to invest, Dodson pooled the funds from the limited partnerships and conducted multiple transfers between Citadel-related accounts in order to divert investor funds for his own benefit and to conceal his actions. In total, Dodson fraudulently raised over $15.6 million from more than 50 investors and misappropriated $1.3 million in investor funds, which he used to pay for his personal expenses and to repay earlier investors in unrelated entities known collectively as Duke Equity. After Dodson’s misappropriation was discovered, the limited partnerships were placed into bankruptcy and the investors suffered a total loss of their investments.       

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Stephanie M. Hinds for the Northern District of California, and Special Agent in Charge Robert R. Tripp of the FBI San Francisco Field Office made the announcement.

The FBI San Francisco Field Office investigated the case. 

Trial Attorney Theodore M. Kneller of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Sarah Griswold and Marissa Harris for the Northern District of California prosecuted the case.

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City and County of Honolulu Agree to Improve Paratransit for People with Disabilities

Source: United States Department of Justice News

The Justice Department announced today that it entered into a settlement agreement with the City and County of Honolulu (Honolulu) under Title II of the Americans with Disabilities Act (ADA) to improve its paratransit.  

Title II of the ADA requires that cities and counties, including Honolulu, that provide bus or rail service, also provide paratransit. Paratransit is a public service where individuals who are unable to use the regular bus or rail transit system because of a physical or mental impairment schedule a trip to be picked up (at home, for example) and dropped off at their destination. Reserving rides is a key aspect to paratransit. 

“Ensuring easy access to booking paratransit is required by the Americans with Disabilities Act,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This agreement will allow users to reserve and use paratransit in Honolulu. The Justice Department is committed to ending discriminatory practices in paratransit, because accessible transportation is critical to independence and engagement in civic life.”

The agreement resolves complaints that customers of Honolulu’s paratransit service, TheHandi-Van, who called to make or change reservations for rides, had very long telephone hold times or did not have their calls answered. Under the agreement, Honolulu will take immediate steps to lessen hold times and within three years will answer 95% of calls to TheHandi-Van within three minutes and 99% of calls within five minutes. Honolulu will also provide regular reports to the department on its progress under the agreement.  

This matter was prosecuted by the Civil Rights Division’s Disability Rights Section.

The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. For more information on the Civil Rights Division, please visit the ADA website at http://www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint/.

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Two Sentenced to Prison for Participation in Drug Trafficking Ring

Source: United States Department of Justice News

PITTSBURGH, PA – A resident of Pennsylvania and a resident of Nevada have been sentenced in federal court on their convictions for violating federal narcotics laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Cindy K. Chung announced today.

United States District Judge Christy Criswell Wiegand sentenced James Williams Jr., age 58, of Reynoldsville, Pennsylvania, to 46 months of imprisonment followed by three years of supervised release. According to information presented to the court, Williams was a methamphetamine distributor who obtained between 350 grams and 500 grams of methamphetamine as part of a large-scale methamphetamine distribution conspiracy and redistributed it to meth users.

Judge Weigand also Christopher Robertson, age 61, of Reno, Nevada, to 23 months of imprisonment followed by two years of supervised release. According to information presented to the court, Robertson transported over 200 pounds of methamphetamine from Stockton, California, to various post offices located in Nevada. Robertson then mailed parcels containing meth on behalf of suppliers in California to distributors based in the Western District of Pennsylvania.

Assistant United States Attorneys Jonathan D. Lusty and Michael R. Ball prosecuted these cases on behalf of the government.

The Drug Enforcement Administration led the multi-agency investigation of this case, which also included the Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department.

This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.