Month: August 2024

Source: United States Department of Justice Criminal Division

A federal jury convicted seven defendants today of federal civil rights offenses arising out of their blockade of a reproductive health care clinic in Sterling Heights, Michigan, on Aug. 27, 2020. The defendants were each convicted of a felony conspiracy against rights and a Freedom of Access to Clinic Entrances (FACE) Act offense. Two defendants were convicted of a second FACE Act offense arising out of a blockade of a reproductive health care clinic in Saginaw, Michigan.  

“These defendants orchestrated an unlawful clinic blockade and physically obstructed patients seeking access to their doctors, without regard to the serious medical needs of the women they blocked from accessing reproductive health care,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “These defendants intentionally broke the law. One woman’s fetus experienced fatal abnormalities and the defendants’ coordinated campaign of physical obstruction posed a grave and real threat to her health and fertility. Make no mistake: every American enjoys the right to obtain and provide reproductive health services free from physical obstruction, and the Justice Department will continue to hold accountable those that oppress the free exercise of that right. We thank the jury for the time, attention, and careful consideration of the facts of this case.”

“My office is committed to protecting all of the legal rights of our district’s citizens, including the right to access reproductive health care,” said U.S. Attorney Dawn N Ison for the Eastern District of Michigan. “The defendants convicted today sought to interfere with that right by physically blocking the doors of clinics providing such services.  These defendants are entitled to their views, but they are not entitled to prevent others from exercising the rights secured to them by the laws of the United States. This case is about the rule of law, and today’s verdict is a victory for that principle.”

According to evidence presented at trial, Calvin Zastrow, Chester Gallagher, Heather Idoni, Caroline Davis, Joel Curry, Justin Phillips, Eva Edl and Eva Zastrow engaged in a conspiracy to prevent clinic employees from providing, and patients from receiving, reproductive health services, a civil right secured by the FACE Act. As part of the conspiracy, the defendants participated in the “Michigan Holiness Revival Tour,” a camping tour organized by Calvin Zastrow with the express purpose of blockading a reproductive health clinic during the second week of the tour.  

During the blockade, the defendants sat or stood in front of the entrances to the clinic so that patients and employees could not enter. Evidence at trial further proved that the defendants blocked a patient, S.S., from entering. The evidence showed that S.S. and her husband had made an appointment at the clinic after learning that their fetus suffered fatal abnormalities, and that attempting to continue carrying the pregnancy carried serious risks to S.S.’s health and fertility. The defendants blocked S.S. from obtaining reproductive health care.  

The evidence further proved that Calvin and Eva Zastrow followed a clinic employee around the building in order to prevent her from entering an emergency exit, and that Gallagher and Edl attempted to stall the Sterling Heights Police Department in order to prolong the blockade. Evidence at trial further proved that the defendants violated the FACE Act by using physical obstruction to interfere with the clinic’s employees and patients because the clinic was providing, and patients were seeking, reproductive health services.  

According to evidence presented at trial, Edl and Idoni physically obstructed access to a second clinic, in Saginaw, Michigan, on April 16, 2021. The evidence proved that Edl obstructed access by sitting in front of one entrance with a doorstop wedged under the door such that the door could not be opened from the inside, while Idoni used a bicycle lock to chain herself in front of a second door. The evidence proved that Edl and Idoni violated the FACE Act by using physical obstruction to interfere with the clinic’s employees and patients because the clinic was providing, and patients were seeking, reproductive health services.

A sentencing hearing will be set at a later date.

The FBI’s Detroit Field Office and Bay City Resident Agency investigated the case.  

Trial Attorney Laura-Kate Bernstein of the Justice Department’s Civil Rights Division and Assistant U.S. Attorneys Frances Carlson and Sunita Doddamani for the Eastern District of Michigan are prosecuting the case.

Anyone who has information about incidents of violence, threats and obstruction that target a patient or provider of reproductive health services, or damage and destruction of reproductive health care facilities, should report that information to the FBI at www.tips.fbi.gov. For more information about clinic violence, and the Justice Department’s efforts to enforce FACE Act violations, visit www.justice.gov/crt/national-task-force-violence-against-reproductive-health-care-providers.

Source: United States Department of Justice Criminal Division

George Semerene Quintero (Semerene), 60, of Venezuela, pleaded guilty today to conspiring to violate the International Emergency Economic Powers Act (IEEPA) for his role in a scheme to evade U.S. sanctions imposed on Petróleos de Venezuela S.A. (PDVSA), a Venezuelan state-owned oil company.

“This defendant admitted to participating in an illicit scheme to procure millions in aviation equipment for the Maduro regime,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today’s conviction demonstrates the Justice Department’s commitment to hold accountable those who seek to evade export controls and sanctions to prop up rogue authoritarians.”

“By lying to U.S. suppliers, falsifying customs forms and creating fake invoices, Semerene helped PDVSA evade U.S. sanctions,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod of the Commerce Department’s Bureau of Industry and Security (BIS). “But, as today’s guilty plea makes clear, what he couldn’t evade are the consequences of breaking U.S. law.”

“Today, George Semerene Quintero admitted that he conspired to circumvent economic sanctions and export controls to aid Nicolás Maduro’s regime in Venezuela in obtaining critical aircraft parts from the United States,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “Together with the BIS and our law enforcement partners, we will continue to ensure that the integrity and intent of U.S. sanctions are preserved. Semerene’s guilty plea reflects our steadfast commitment to holding those who violate sanctions accountable and to vigorously enforcing export controls to protect our nation’s security.”

According to court documents, between January 2019 and December 2021, after learning of the sanctions imposed on PDVSA, Semerene and his co-conspirators devised a scheme to illegally procure aircraft parts, including bearings, rudder parts, joint slide flexes and actuators, from the United States to service PDVSA’s aircraft fleet in Venezuela, in violation of U.S. sanctions and export controls. Semerene, who was an employee in PDVSA’s procurement department, and his co-conspirators concealed from U.S. companies that the requested parts were destined for Venezuela and PDVSA, and they utilized freight forwarders and shipping companies located in the Southern District of Florida to move the parts. Semerene and his co-conspirators carried out this scheme by (1) lying to U.S. parts suppliers; (2) making false declarations on customs forms and shipping documents; (3) fabricating supplier invoices; and (4) providing false end-user certificates. Semerene and his co-conspirators further utilized third parties in other countries, including Novax Group SA, a Costa Rican Aerofalcon SL, a Spanish company, to serve as the purported purchasers and end users for the aircraft parts ultimately destined for PDVSA.

The indictment charging Semerene and nine co-defendants, including three other individuals associated with PDVSA, was unsealed in April, following Semerene’s arrest upon his arrival in the United States.

Semerene is scheduled to be sentenced on Nov. 5 and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

BIS is investigating the case.

Assistant U.S. Attorney Jonathan Stratton for the Southern District of Florida and Trial Attorney Ahmed Almudallal of the National Security Division’s Counterintelligence and Export Control Section (CES) are prosecuting the case. CES Deputy Chief Matthew McKenzie provided valuable assistance during the investigation.

Source: United States Department of Justice Criminal Division

A Maryland woman was sentenced today to one year and one day in prison for not paying employment taxes to the IRS and embezzling from an employee benefit plan.

According to court documents and statements made in court, Michelle Leach-Bard, of Lutherville-Timonium, was the owner and sole corporate officer of iProcess Online Inc., a third-party accounting company that specialized in payroll, human resources and bookkeeping. From at least October 2016 through the end of 2021, she was, as iProcess’ sole corporate officer, responsible for withholding Social Security, Medicare and income taxes from employees’ wages and paying those taxes to the IRS. Though the taxes were withheld, Leach-Bard did not pay them to the IRS, as she was required to do.

In total, Leach-Bard caused a tax loss to the IRS of $2,663,264.12.

In addition, iProcess had a Section 401(k) Profit Sharing and Retirement Plan for the benefit of some of its employees. Contributions to the 401(k) Plan were deducted from participating employees’ wages. Beginning in or around 2007, Leach-Bard did not pay those employee contributions to the 401(k) Plan. In total, Leach-Bard did not pay to the 401(k) plan approximately $207,180.41 in employee withholdings. Additionally, Leach-Bard did not make approximately $18,740.37 in employer matching contributions for certain employees.

In addition to the term in prison, U.S. District Judge Stephanie A. Gallagher ordered Leach-Bard to serve two years of supervised release and to pay $2,663,264.12 in restitution to the United States and approximately $207,180.41 in restitution to her former employees.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Erek L. Barron for the District of Maryland made the announcement.

IRS Criminal Investigation and the U.S. Department of Labor, Employee Benefits Security Administration investigated the case.

Trial Attorneys Catriona Coppler and Jeffrey McLellan of the Tax Division prosecuted the case.

Source: United States Department of Justice Criminal Division

Intrepid U.S.A. Inc., headquartered in Dallas, and various wholly-owned subsidiaries (Intrepid) have agreed to pay $3,850,000 to resolve allegations that Intrepid violated the False Claims Act in connection with two lines of its business: first, that Intrepid knowingly submitted claims to Medicare for home healthcare services for patients who did not qualify for the Medicare home healthcare benefit or where services otherwise did not qualify for Medicare reimbursement; and second, that Intrepid knowingly submitted claims to Medicare for patients who did not qualify for the hospice benefit. The settlement is based on Intrepid’s ability to pay.

The United States alleged that, between 2016 and 2021, 19 Intrepid home healthcare facilities submitted claims to Medicare for home healthcare services for patients who did not qualify or were not properly certified as eligible for the Medicare home healthcare benefit, where the services provided were not reasonable or medically necessary, where the services were provided by untrained staff, or where services were not performed. Separately, the United States alleged that, between 2016 and 2021, three Intrepid hospice facilities admitted patients to hospice care who were ineligible for the Medicare hospice benefit because they were not terminally ill or continued providing services to patients who should have been discharged because they no longer met the requirements for the Medicare hospice benefit.

“Medicare’s hospice and home healthcare benefits provide critical services to vulnerable patient populations across the country,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This settlement reflects our commitment to ensuring that these benefits are used to care for those who need them and not just to enrich those who seek to provide them.”

“The Medicare Program provides vital health insurance to the elderly and disabled population,” said U.S. Attorney Michael A. Bennett for the Western District of Kentucky. “Our office will vigorously pursue unscrupulous providers who choose to illegally and improperly bill the Medicare Program.”

“Businesses who engage in improper Medicare billing practices undercut the legitimate provision of healthcare services for patients in need,” said U.S. Attorney Andrew Luger for the District of Minnesota. “This settlement reinforces the importance of holding accountable health care providers who seek financial gain above quality patient care.”

“Home health is designed to increase health care access for our most vulnerable populations with mobility limitations, while hospice care aims to provide comfort and relief for the terminally ill. Exploiting these systems for financial gain is intolerable,” said Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working with our law enforcement partners, we will continue to pursue health care providers who jeopardize the integrity of these services by prioritizing profit over medically necessary palliative care.”

The civil settlement resolves claims brought under the qui tam or whistleblower provisions of the False Claims Act in two different lawsuits. One qui tam action was brought by Jennifer Jones, a former travel nurse, and Pamela Joffe, a former Director of Quality Assessment Performance Improvement and New Business Development, for Intrepid. The qui tam case is captioned U.S. ex rel. Jones v. Intrepid USA Healthcare Inc., No. 19-sc-2973 (D. Minn.). The second qui tam action was brought by Marsha Rigney, a former Director of Clinical Excellence and Integrity, and Janet Watts, a former Regional Manager of Clinical Excellence, for Intrepid. This qui tam case is captioned U.S. ex rel. Rigney v. Intrepid U.S.A. Inc., No. 3:20-cv-95-RGJ (WDKY). Under the provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of any recovery. Relators Jones and Joffe will receive $333,985 from the settlement proceeds, and Relators Rigney and Watts will receive $359,014 from the settlement proceeds.

The resolution of these matters was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the Western District of Kentucky and U.S. Attorney’s Office for the District of Minnesota. HHS-OIG assisted in the investigations.

The investigation and resolution of these matters illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).

Trial Attorney Anthony Gill of the Civil Division’s Commercial Litigation Branch, Fraud Section, Assistant U.S. Attorney Benjamin Schecter for the Western District of Kentucky and Assistant U.S. Attorney Kristen Rau for the District of Minnesota investigated the matter.

The claims resolved by the settlement are allegations only. There has been no determination of liability.

Source: United States Department of Justice Criminal Division

The Justice Department announced today that it has opened an investigation into the conditions at Trousdale Turner Correctional Center, a Tennessee Department of Correction facility operated by the private correctional management company CoreCivic. Trousdale Turner, located approximately an hour outside of Nashville, is Tennessee’s largest correctional facility.  

Based on an extensive review of publicly available information and information gathered from stakeholders, the department has found significant justification to open this investigation, including state audits that have flagged dangerous understaffing and safety concerns since Trousdale Turner first opened in 2016. The investigation will examine whether Tennessee protects those incarcerated at Trousdale Turner from harm, including physical violence and sexual abuse.  

“People are incarcerated at Trousdale Turner as punishment for their crimes, but in our legal system, punishment does not and cannot include violence and sexual abuse,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is launching this comprehensive investigation to determine if there are systemic constitutional violations regarding the treatment of people in this privately-run correctional facility. We are committed to protecting the constitutional rights of people held inside jails and prisons across our country.”  

“Publicly available information suggests that Trousdale Turner has been plagued by serious problems since it first opened its doors,” said United States Attorney Henry C. Leventis. “This includes reports of staffing shortages, physical and sexual assaults, murders, and a 188% turnover rate among prison guards just last year. Although CoreCivic owns and operates Trousdale, the State of Tennessee is ultimately responsible for the safety of the people incarcerated there. This investigation seeks to determine whether Tennessee is meeting its constitutional obligations.”

The Justice Department notified State officials of the investigation earlier today and pledged that the department will work cooperatively with them in conducting the investigation and identifying solutions to any problems that are uncovered.

The department has not reached any conclusions regarding the allegations in this matter. The investigation will be conducted under the Civil Rights of Institutionalized Persons Act. This statute gives the department the authority to investigate systemic violations of the rights of individuals in institutional settings, including prisons.  

The Civil Rights Division’s Special Litigation Section is conducting this investigation jointly with the U.S. Attorney’s Office for the Middle District of Tennessee. Individuals with relevant information are encouraged to contact the department via phone at 888-392-7031 or by email at community.trousdaleturner@usdoj.gov.  

Additional information about the Civil Rights Division’s work regarding correctional facilities is available on its website at www.justice.gov/crt/rights-persons-confined-jails-and-prisons.