Month: February 2023

Source: United States Department of Justice News

ALEXANDRIA, Va. – U.S. Attorney Jessica D. Aber announced that the U.S. Attorney’s Office for the Eastern District of Virginia has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy released earlier today.

The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.

Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by—in the absence of any aggravating factor—fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50% below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.

The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50% and up to a 75% reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.

In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.

The Attorney General’s Advisory Committee (AGAC), under the leadership of United States Attorney for the Southern District of New York  Damian Williams, requested that the White Collar Fraud Subcommittee of the AGAC, under the leadership of United States Attorney for the Eastern District of New York Breon Peace, develop policies in response to the Deputy AG’s memo. The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of U.S. Attorneys from geographically diverse districts, including U.S. Attorney Peace, as well as U.S. Attorney for the Eastern District of Virginia Jessica Aber, U.S. Attorney for the District of Connecticut Vanessa Avery, U.S. Attorney for the District of Hawaii Clare Connors, U.S. Attorney for the Eastern District of North Carolina Michael F. Easley, Jr., U.S. Attorney for the Northern District of California Stephanie Hinds, U.S. Attorney for the Western District of Virginia Christopher Kavanaugh, and U.S. Attorney for the District of New Jersey Philip Sellinger. Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for U.S. Attorneys, also participated in the development of the policy.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia.

Source: United States Department of Justice News

The Justice Department announced today that it has filed a sexual harassment and retaliation lawsuit under the Fair Housing Act against Joel Nolen, the owner and operator of rental properties in Lassen County, California.

The lawsuit also names as defendants Shirlee Nolen and Nolen Properties LLC, the co-owners of the rental properties at the relevant times. The lawsuit, filed in the U.S. District Court for the Eastern District of California, alleges that Joel Nolen sexually harassed female tenants since at least 2011. According to the complaint, Nolen offered housing-related benefits in exchange for sexual contact, made unwelcome sexual comments and advances to female tenants, entered the homes of female tenants without their permission, subjected female tenants to unwelcome touching and groping, subjected female tenants to unwelcome sexual acts and took adverse housing-related actions against female tenants who refused his sexual advances.

“No one should ever feel unsafe or suffer sexual harassment in their home, especially at the hands of their housing provider,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to vigorously enforcing the Fair Housing Act and holding landlords and housing providers accountable when they sexually harass their tenants.”

“The sexual harassment and retaliation alleged in today’s complaint violates our federal fair housing laws and will not be tolerated,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “Landlords and other housing providers who engage in such conduct will be held accountable to ensure that individuals feel safe and comfortable in their homes.”

The lawsuit seeks monetary damages to compensate persons harmed by the alleged harassment, civil penalties to vindicate the public interest and a court order barring future discrimination.

The Justice Department launched its Sexual Harassment in Housing Initiative in October 2017. The initiative, which is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country, seeks to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the initiative, the Department of Justice has filed 27 lawsuits alleging sexual harassment in housing and recovered over $9.7 million for victims of such harassment.

The Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.

Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings owned or managed by Joel Nolen, Shirlee Nolen, or Nolen Properties LLC, or who have other information that may be relevant to this case, can contact the Housing Discrimination Tip Line at 1-833-591-0291, select 1 for English, and select option number 2, then option number 7 to leave a message. Individuals may also email the Justice Department at fairhousing@usdoj.gov or submit a report online. Reports also may be made by contacting the U.S. Department of Housing and Urban Development at 1-800-669-9777 or by filing a complaint online.

Source: United States Department of Justice News

TUCSON, Ariz. – Last week, a federal jury found Olegario Lares-De La Rosa, 29, of Mexico, guilty of Conspiracy to Commit Hostage Taking, Conspiracy to Transport Illegal Aliens for Profit, and two counts of Transportation of an Illegal Alien for Profit. Lares-De La Rosa previously pleaded guilty to Felon in Possession of a Firearm on June 9, 2022. Sentencing is scheduled for May 4, 2023, before United States District Judge Jennifer G. Zipps.

The investigation in this case began on April 6, 2022, when Homeland Security Investigations (HSI) received a tip from an individual in New York. The informant told HSI investigators that he had received a call from his cousins, undocumented noncitizens, who said they were being held captive and that their captors demanded $16,000 for their release. 

The cousins were detained by three armed men after they crossed illegally into the United States. The armed captors took the victims’ cellphones and transported them to a house where they were held captive for several days. Each evening, the door to their room was screwed shut so they could not escape. On April 8, 2022, Lares-De La Rosa picked up the cousins from the house and brought them to the place where they were to be exchanged for the $16,000 payment.

That same day, Lares-De La Rosa’s co-conspirator, Borboa-Ruiz, met with undercover agents in Tucson to collect the $16,000 payment. After counting the money, Borboa-Ruiz made a call stating that “they were good.” Less than a minute later, the cousins walked single file out of a black Hyundai driven by Lares-De La Rosa. Borboa-Ruiz was immediately arrested.

While the agents were arresting Borboa-Ruiz, Lares-De La Rosa sped away in the Hyundai, leading agents on a high-speed vehicle chase. During the pursuit, Lares-De La Rosa attempted to discard his 9mm pistol by throwing it out of the car. He then bailed out of the Hyundai while it was still in drive, narrowly missing being struck by the vehicle. Lares-De La Rosa then ran into a wash and through a residential neighborhood before he was arrested. 

On February 2, 2023, Borboa-Ruiz, 28, of Mexico, pleaded guilty to Conspiracy to Commit Hostage Taking and Illegal Alien in Possession of a Firearm. Sentencing for Borboa-Ruiz is scheduled for April 25, 2023, before Judge Zipps.

HSI conducted the investigation in this case, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Marana Police Department. Assistant United States Attorneys Serra M. Tsethlikai and Jennifer Berman, District of Arizona, Tucson, handled the prosecution.

CASE NUMBER:            CR-22-0974-TUC-JGZ
RELEASE NUMBER:    2023-023_Lares-De_La_Rosa 

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

Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.

Source: United States Department of Justice News

NEWPORT NEWS, Va. – A sixteen-plus year veteran of, and former sergeant with, the Newport News Police Department was sentenced today to 25 years in prison for the sexual exploitation of children and receipt of child pornography.

According to court documents, Michael Nicholas Covey, 39, of Newport News, used a child to engage in sexually explicit conduct for the purposes of producing a visual depiction of such conduct. In a separate investigation, child sexual assault images were found on a convicted sex offender’s electronic devices in Cincinnati, Ohio. Those images were submitted to the National Center for Missing and Exploited Children (NCMEC) in Alexandria. During the analysis of the images, NCMEC determined that the images may have been produced in Newport News. NCMEC forwarded the information to the Southern Virginia Internet Crimes Against Children Task Force, which, in turn, contacted the FBI. Agents with the FBI were able to identify the child depicted in the images. Further investigation led the agents to the defendant, Michael Nicholas Covey. He was arrested on a federal criminal complaint on Friday, June 10.

According to court documents, Covey was originally indicted in June 2022 on three counts of sexual exploitation of a child. Law enforcement later discovered an additional cellular phone belonging to Covey that he had concealed in a container in the back of his patrol vehicle. New evidence on this phone led to additional charges of sexual exploitation of a second minor victim, as well as receipt and possession of child pornography counts in a superseding indictment filed in July 2022. Covey also received a sentencing enhancement for obstructing justice. Covey pleaded guilty to two counts of sexual exploitation of a child and one count of receipt of child pornography last September.

Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis.

Newport News Police Department provided significant assistance in this case.

Assistant U.S. Attorneys Lisa McKeel and Peter G. Osyf prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:22-cr-48.

Source: United States Department of Justice News

TRENTON, N.J. – An Ocean County, New Jersey, man today admitted coercing a minor into producing images of child sexual abuse, U.S Attorney Philip R. Sellinger announced. 

Samuel Schwinger, 37, Lakewood, New Jersey, pleaded guilty before U.S. District Court Judge Georgette Castner in Trenton federal court to an information charging him with one count of sexual exploitation of a minor.

According to documents filed in the case and statements made in court:

In March 2019 used an internet-based application to communicate with the victim, who was under the age of 12. Schwinger asked the victim to make sexually explicit videos of the victim and send them to him. Schwinger admitted that from October 2018 through April 5, 2019, he communicated with more than 25 minor victims for the purpose of producing and distributing sexually explicit material.

The charge of sexual exploitation of a minor carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison and a $250,000 fine. Sentencing is scheduled for June 27, 2023.

U.S. Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, Cherry Hill under the direction of Special Agent in Charge Ricky J. Patel in Newark; the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer; and the Lakewood New Jersey Police Department under the direction of Chief Gregory Meyer. 

The government is represented by Assistant U.S. Attorney Michelle Gasparian, Chief of the General Crimes Unit.