Month: July 2024

Source: United States Department of Justice

Diesel performance parts retailers GDP Tuning LLC and Custom Auto of Rexburg LLC, doing business as Gorilla Performance, and owner Barry Pierce were sentenced today in federal court in Pocatello, Idaho. Senior U.S. District Court Judge B. Lynn Winmill for the District of Idaho sentenced Pierce to four months in prison. GDP Tuning and Gorilla Performance were sentenced to five years of probation. All defendants were ordered to jointly pay a $1 million fine. The companies and Pierce had previously pleaded guilty.

The charges in the case relate to illegal tampering with monitoring devices required under the Clean Air Act, specifically the on-board diagnostic (OBD) systems in diesel trucks. The first part of the tampering process is to physically remove the emissions control devices, known as “deleting” a truck. In part two, computer software is used to reprogram or tune the vehicle’s OBD to not recognize what has happened; this process is known as “tuning.”

An OBD normally detects any removal or malfunction of a vehicle’s emissions control equipment, recording a diagnostic trouble code and triggering a vehicle’s “check engine” light. If a malfunction is not remedied, a vehicle can, in some circumstances, be forced into “limp mode,” with a max speed of five-miles-per-hour. Tuning bypasses these checks even with the emissions control equipment removed.

According to court documents, from approximately 2016 to 2020, Pierce and GDP Tuning and Gorilla Diesel Performance tuned and deleted hundreds of vehicles at the Gorilla Diesel Performance auto repair shop in Rexburg, Idaho. Through various distributors, GDP Tuning also sold tens of millions of dollars’ worth of tunes, tuners and equipment around the country, including what GDP Tuning described as “custom tunes.” GDP Tuning knew the tunes were being used to illegally reprogram vehicles.

Pierce told Environmental Protection Agency (EPA) inspectors in 2018 that his companies sold kits to delete trucks and products to tune them, including tunes and tuners. In response to EPA’s later follow-up, GDP Tuning produced sales data indicating that it sold over 20,000 tuning products for approximately $14 million in revenue from January 1, 2018, through approximately August 7, 2019.

EPA law enforcement agents conducted undercover operations to determine the extent of illegal activity at GDP Tuning and Gorilla Diesel Performance. Employees told an uncover agent that the companies routinely “deleted” trucks at the Gorilla Diesel Performance location. Evidence gathered showed that Gorilla Diesel Performance conducted hundreds of deletes and used GDP Tuning products, with at least seven employees conducting deletes or obtaining tunes for the deleted vehicles. Pierce was aware of and directed the conduct.

“The defendants knowingly and repeatedly flouted Clean Air Act regulations even after being told that this conduct was against the law,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We are committed to enforcing the law and holding individuals and businesses accountable.”

“Despite being warned by EPA that his conduct was illegal, Barry Pierce and his companies continued to flout the law for years, selling millions of dollars of products that defeated emissions controls on diesel trucks,” said Assistant Administrator David M. Uhlmann, of EPA’s Office of Enforcement and Compliance Assurance. “These products resulted in thousands of tons of excess pollutants being emitted into the air, putting our most vulnerable populations at risk. This brazen behavior must stop and EPA will continue to seek jail time for violations until it does.”

“Protecting Idaho’s environment and promoting public health are top priorities for my office, and the extreme amount of pollution emitted from illegally modified diesel trucks threatens both of these goals,” said U.S. Attorney Josh Hurwit for the District of Idaho. “We will continue to work with our law enforcement partners to hold accountable anyone who purposefully and illegally pollutes our air.”

The EPA investigated the case.

Senior Trial Attorney Cassandra Barnum of the Justice Department’s Environmental Crimes Section, U.S. Attorney Josh Hurwit for the District of Idaho and EPA Regional Criminal Enforcement Counsel Karla Perrin prosecuted the case.

Source: United States Department of Justice

Remarks as Prepared for Delivery

Good morning! I want to extend my thanks to the National Organization for Victim Advocacy (NOVA) for bringing us all together for this 50th annual training event. We are also grateful for the work that NOVA does year-round to provide critical training and technical assistance to grantees of the Office on Violence Against Women (OVW)’s Campus Grant Program. I also want to extend my deep gratitude to each of you for the work you do every day to support survivors along their unique paths to finding safety, healing and justice.

I am honored to have the opportunity to serve as the Director of OVW and to collaborate with so many dedicated individuals and organizations committed to furthering our nation’s vision for ending domestic violence, dating violence, sexual assault, stalking and other related forms of gender-based violence.

OVW is tasked with overseeing the implementation of key parts of the Violence Against Women Act (VAWA), landmark bipartisan legislation first enacted by Congress in 1994. Born from years of grassroots advocacy and the voices and leadership of survivors, VAWA’s 1994 enactment was a testament to the power of collective action in shaping public policy and setting a vision for our nation to advance a society that does not tolerate abuse of any kind.

The hallmark of VAWA is a coordinated community response, which seeks to bring together agencies and community partners across many disciplines to address the needs of survivors. Because survivors’ lives do not exist in silos, it is critical that no individual or entity operates in a silo and that we all work together to prevent and effectively address gender-based violence.

OVW’s grant programs help grantees implement trauma-informed and survivor-centered services in their communities as they improve access for individuals with disabilities, enhance services in rural communities, increase the capacity of community-based organizations that primarily focus on historically marginalized or underserved populations, address elder abuse, reduce gender-based violence on college campuses — an effort NOVA supports by providing training and technical assistance on developing a robust coordinated community response on campuses and supporting culturally specific student populations — and more.

At OVW, equity is viewed as an essential component of ending sexual assault, domestic violence, dating violence and stalking, which is why we have made advancing equity and supporting Tribal sovereignty a core programmatic priority that cuts across all grant programs. Our grant programs seek to improve outreach, services, civil and criminal justice responses, prevention and support for survivors from historically marginalized and underserved communities, particularly those facing disproportionate rates or impacts of violence and multiple barriers to services, justice and safety. And importantly, OVW funds programs that take a strengths-based approach to increasing access to services and reducing additional barriers that survivors from underserved communities face.

We know that there is no “one-size-fits-all” approach to serving survivors, and we recognize that victim advocates play a vital role in ensuring survivors are able to access survivor-centered and trauma-informed services that are tailored to their unique needs. We also recognize that victim advocates are critically important messengers in their communities — ensuring that their community partners are aware of both the barriers that survivors encounter and the resources that can help them access safety and justice.

To that end, I would like to highlight some of the new programs and protections in the 2022 reauthorization of VAWA that respond to emerging issues highlighted by survivors and advocates.

We recognize that economic security and access to safe and affordable housing are critical needs that confront many survivors, and that often undermine their efforts to seek safety, healing and stability. Just two weeks ago, we released a solicitation for a new grant program focused on flexible financial support to address the economic needs of survivors. This program will increase flexibility for victim service providers to meet the unique needs of survivors — whether it is a month of rent, helping them purchase tires for their car to get to work or helping put food on the table for their children while they are searching for a job.

To advance protections for survivors of technology-facilitated gender-based violence, OVW has launched two new grant programs that will increase national training and technical assistance, as well as provide resources for law enforcement, prosecutors and victim service providers to support victims of cybercrimes. Additionally, the Justice Department’s Office for Victims of Crime is funding the first-ever national helpline for survivors of image-based sexual abuse, which will expand support to victims of the non-consensual distribution of intimate images, including sextortion and deepfake intimate images.

OVW also recently awarded three grants that support national training and technical assistance for restorative practices, and we anticipate selecting up to 15 sites as part of a new restorative practices pilot program that was included in the 2022 VAWA reauthorization. This initiative also includes robust funding for evaluation and for national training and technical assistance so that we can ensure that these programs are trauma-informed and focused on victim safety and so that we can continue to learn how to expand the range of options for survivors.

As we prepare to commemorate the 30th anniversary of VAWA this September, it is an opportunity for all of us to collectively reflect on the substantial progress that has been made — but also how much further we have to go. There have been significant paradigm shifts in society’s perceptions of gender-based violence and our responses to it, but many survivors still encounter significant challenges navigating complex systems and accessing critical resources and support.

Addressing these gaps and barriers requires consistent, long-term coordination, which is why just last year the White House launched the first-ever U.S. National Plan to End Gender-Based Violence, with the collaboration of more than 15 federal agencies. The plan advances a whole-of-government approach to preventing and ending gender-based violence — which we refer to as a federal coordinated community response — and it acts as a blueprint that builds on the lessons learned and achievements made through the efforts of survivors, advocates and others in the field.

And as we move forward, we must continue to amplify the voices and leadership of survivors — work you all do every day — to advance a whole-of-society approach that continues to lift these issues out of the shadows, support survivors and hold offenders accountable. It is only together that we can build a world that affirms the dignity, rights and humanity of every individual, a world where gender-based violence is not tolerated, and a world where healing and justice are accessible to all. Thank you.

Source: United States Department of Justice

After a week-long trial, a federal jury convicted an Illinois man last Friday of conspiracy to commit securities fraud, for agreeing with his brother and another man to alter the odometer readings on hundreds of used cars and sell those cars to unsuspecting consumer victims.

According to court documents and evidence presented at trial, Hussein Ghzo, 42, of Palos Heights, conspired with his brother Laith Ghzo, 38, and Musab Sawai, 36, to roll back the odometer readings on hundreds of used cars. The defendants purchased high-mileage cars at auto auctions, brought the cars to Chicago, had the odometer readings on those cars altered, falsified title documents to reflect the false low mileage, submitted those false titles to the Illinois Secretary of State and then sold the cars at other auctions with the false low mileage titles and false odometer readings. The evidence at trial revealed that Hussein Ghzo was warned on three separate occasions that the cars he was selling had rolled back mileage, but he nevertheless continued to participate in the scheme, including by attempting to pose as other people and hide his true identity. U.S. District Judge Manish S. Shah of the Northern District of Illinois presided over the trial.

“The Justice Department is committed to prosecuting those who prey on unsuspecting consumers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The scheme at issue here deprived consumers of important information relating to vehicle safety and future repair costs.”

“Odometer fraud endangers the public and keeps older, less-safe vehicles on our nation’s roads,” said Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois. “We will continue to work with our law enforcement and regulatory partners to ensure that consumers are purchasing vehicles with valid odometer readings.”

Ghzo is scheduled to be sentenced on Jan. 22, 2025, and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Ghzo and Sawai have previously pleaded guilty in connection with this matter and are awaiting sentencing. Ghzo will be sentenced on Oct. 31. Sawai’s sentencing date has not yet been set.

The U.S. Department of Transportation, National Highway Traffic Safety Administration, Office of Odometer Tampering Investigation and the U.S. Postal Inspection Service investigated the case. The matter was originally referred to the federal government by the Maryland Motor Vehicle Administration.

Trial Attorneys Joshua D. Rothman and Thomas S. Rosso of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Kartik K. Raman for the Northern District of Illinois are prosecuting the case.

Source: United States Department of Justice

A Canadian man pleaded guilty yesterday in federal court in Las Vegas to conspiracy to commit wire fraud and money laundering in connection with a scheme to steal millions of dollars from thousands of victims in the United States.

According to court documents, Poupak Jannissar, 52, of Quebec, Canada, operated and controlled sham companies that used fake checks and other fraudulent debits to steal from victims’ accounts at banks in the United States. The defendant and his co-conspirators used various names for the sham companies, including Computer Run, EBooks, Joreeb, Memo Storage, Our Online Backup, You Can Fax Too and Your E-Library. These companies pretended to sell various internet-based services for consumers, such as cloud storage, internet faxing and online books. However, the sham companies did not actually provide any real products or services. Instead, the sham companies served to conceal the theft of money from bank accounts by Jannissar and his co-conspirators.

According to court documents, Jannissar and his co-conspirators bought lists containing misappropriated personal information belonging to thousands of potential victims. Jannissar and his co-conspirators then falsely represented to banks and others that individual victims had authorized debits from their bank accounts. If the individual victims did not notice and dispute initial charges made by the sham companies, the sham companies would fraudulently debit bank accounts multiple times. Jannissar and his co-conspirators transferred money they stole to accounts in Canada.

Jannissar pleaded guilty to one count of conspiracy to commit wire fraud and one count of money laundering in front of U.S. District Judge Andrew P. Gordon of the U.S. District Court for the District of Nevada.

Jannissar was arrested on Jan. 22, at the Fort Lauderdale–Hollywood International Airport in Florida based on a criminal complaint and arrest warrant issued in the District of Nevada by U.S. Magistrate Judge Brenda Weksler. He was subsequently indicted on the charges to which he pled guilty today.

“Through various sham entities, the defendant and his accomplices stole consumers’ hard-earned money directly from their bank accounts,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will use all of the tools at its disposal to apprehend and prosecute criminals, whether located inside or outside the United States, who steal from Americans.”

“Today’s guilty plea demonstrates our commitment to finding and prosecuting individuals who steal from consumers,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “Defrauding consumers and stealing their hard-earned dollars is a crime against the individuals but it also violates the trust we have in free commerce. With our law enforcement partners, we are committed to holding accountable those who violate federal law. We thank our partners for their investigative efforts to help bring justice for victims.”

“Mr. Jannisar and his co-conspirators used sham companies to steal from unknowing victims by accessing their bank accounts using personal identifiable information from illegally obtained lists, and sadly nothing more than a keystroke on a computer,” said Inspector in Charge Eric Shen of U.S. Postal Inspection Service Criminal Investigations (USPIS-CI). “His actions and those of his co-conspirators represent a crime of greed and opportunity but will not go unpunished thanks to the law enforcement community, who have dedicated their mission to uncovering and putting an end to devious schemes like these.”

“The defendant’s guilty plea holds him accountable for perpetrating a fraudulent scheme that stole funds from thousands of victims’ bank accounts,” said Special Agent in Charge Vincent R. Zehme of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG) Chicago Regional Office. “The FDIC OIG continues to work closely with our law enforcement partners to pursue those who cause financial harm to consumers and threaten to undermine the integrity of our Nation’s banking system.”

Jannissar faces a maximum penalty of 20 years in prison per charge. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

USPIS-CI and FDIC OIG are investigating the case. U.S. Customs and Border Protection provided valuable assistance.

Senior Trial Attorney Daniel Zytnick of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Richard Anthony Lopez for the District of Nevada are prosecuting the case.

For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Consumer complaints can be filed with the FTC at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.

Source: United States Department of Justice

The Justice Department filed a statement of interest yesterday in the U.S. District Court for the District of Arizona explaining that a church’s claims under the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) are ready for judicial review in federal court.     

The statement of interest was filed in Gethsemani Baptist Church v. City of San Luis, a lawsuit alleging that the City of San Luis, Arizona, (the City) imposed a substantial burden on the religious exercise of Gethsemani Baptist Church (the Church) and treated the Church less favorably than secular institutions. The lawsuit alleges that the Church has operated a Food Ministry on its property as part of its religious exercise since 1999 and has provided food to thousands of people in need. The City recently became hostile to the Church, claiming that its use of its property and its use of semi-trucks to deliver food and supplies to the Ministry violated the City’s zoning code. The City took enforcement action to stop the Church from operating the Food Ministry, including by issuing multiple citations to the Church’s pastor.  

“Churches have been on the front lines helping to alleviate hunger and meet the needs of those experiencing food insecurity across the country,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Federal law provides broad protection to religious exercise, including for ministries that serve people who are hungry or in need of basic supplies. Once a municipality applies its zoning code to restrict religious exercise, impacted groups do not need to jump through procedural hoops to obtain relief in federal court. The Justice Department is committed to ensuring that religious groups can properly exercise their rights under RLUIPA.”

The City filed a motion to dismiss the Church’s lawsuit, arguing in part that the Church’s RLUIPA claims could not proceed. The department’s statement of interest refutes this claim, asserting that the Church is not required to apply for a conditional use permit and that doing so would have been futile. The statement also argues that the Church has sufficiently shown the City’s ability to conduct an “individualized assessment” of the Church’s use of the property as required by RLUIPA. 

RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship. As part of this initiative, the department has filed statements of interest in other RLUIPA cases involving faith-based services to persons in need, including in Micah’s Way v. City of Santa Ana (Central District of California) and St. Timothy’s Episcopal Church et al. v. City of Brookings (District of Oregon). Additionally, the department hosted outreach forums with religious leaders at Seton Hall Law School in Newark, New Jersey, and Chapman University Law School in Santa Ana, California, on combating religious discrimination under RLUIPA and also issued a letter to state, county and municipal leaders throughout the country to remind them of their obligations under RLUIPA.   

Individuals who believe they have been subjected to discrimination in land use or zoning decisions can contact the U.S. Attorney’s Office Civil Division’s Civil Rights Section at (213) 894-2879 or the Civil Rights Division Housing and Civil Enforcement Section at (833) 591-0291 or may submit a complaint through the complaint portal on the Place to Worship Initiative website. More information about RLUIPA, including questions and answers about the law and other documents, can be found at www.justice.gov/crt/about/hce/rluipaexplain.php.