Category: MIL-OSI

Source: United States Department of Justice Criminal Division

In 1966, the United States sued Plaquemines Parish School Board seeking to desegregate its schools. By 1975, the Court found the schools had been properly integrated, but the case was never removed from the Court system. Thus, for nearly a half century the case remained open.  

That ended today. Assistant Attorney General Harmeet K. Dhillon righted a historical wrong, freeing the local school district of federal oversight. For decades, the Parish was forced to yield to the demands of past Administrations, unnecessarily subjecting schools and students to probing federal oversight.

“No longer will the Plaquemines Parish School Board have to devote precious local resources over an integration issue that ended two generations ago,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “This is a prime example of neglect by past administrations, and we’re now getting America refocused on our bright future.”

“Louisiana got its act together decades ago, and it is past time to acknowledge how far we have come,” said Leo Terrell, Senior Counsel to the Civil Rights Division. “America is back, and this Department of Justice is making sure the Civil Rights Division is correcting wrongs from the past and working for all Americans.”

Source: United States Department of Justice Criminal Division

A federal court ordered an Arizona company to stop distributing unapproved animal drugs that violate the Federal Food, Drug, and Cosmetic Act (FDCA), the Department of Justice announced.

In a civil complaint filed on August 29, 2023, in the U.S. District Court for the District of Arizona, the United States alleged that AniCell Biotech LLC and its founder and chief executive officer, Brandon T. Ames, violated the FDCA at the company’s facility in Gilbert, Arizona, by manufacturing and distributing unapproved animal drugs. According to the complaint, AniCell Biotech makes and distributes animal cell- and tissue-based products (ACTPs) derived from the amniotic tissue of horses for use in animals.

According to the complaint, AniCell and Ames claimed on their website and in promotional pamphlets that their products were intended for use in animals to treat various diseases and to promote tissue regeneration and healing. The complaint further alleged that AniCell and Ames made and sold new animal drugs that were considered adulterated and unsafe because they had not been approved by the U.S. Food and Drug Administration (FDA). According to the complaint, FDA provided defendants with multiple warnings, including a written warning letter regarding its need to submit its new animal drugs to the FDA for approval.

“Animal drug manufacturers have a duty to ensure that their products are safe and manufactured and sold in accordance with the law,” said Acting Assistant Attorney General Yaakov Roth of the Justice Department’s Civil Division. “The Department will continue to work closely with FDA to pursue appropriate actions against drug manufacturers that violate the law.”

“Marketing unapproved new animal drugs that claim to cure, mitigate, treat or prevent diseases in animals can pose serious safety risks to consumers’ pets,” said Acting Director Dr. Timothy Schell of the FDA’s Center for Veterinary Medicine. “The FDA will continue to pursue actions against those who may put animal patients in harm’s way by manufacturing and distributing unapproved new animal drugs.”

The defendants agreed to settle the suit and be bound by a consent decree permanently enjoining them from violating the FDCA. Under the court’s order, entered on April 17, the defendants must comply with specific requirements set forth in the injunction and the FDCA prior to manufacturing or distributing any new animal drugs.

Trial Attorney Coleen Schoch of the Civil Division’s Consumer Protection Branch handled the case, with assistance from Associate Chief Counsel of Enforcement Jaclyn E. Martinez Resly of the FDA’s Office of the Chief Counsel.

Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.

Source: United States Department of Justice Criminal Division

An Arizona man was sentenced to 4 years in prison for filing false tax returns and loan applications to obtain COVID-19 disaster relief.

According to court documents and evidence presented in court, to create the appearance that he was operating several businesses, Roy Layne of St. David, Arizona filed paperwork with the IRS, applied for a business license from the City of Tuscon, opened business bank accounts, and filed false employment-related tax returns. In April 2020, he filed an application with the U.S. Small Business Administration, that claimed he operated a “wholesale” business with 17 employees that had revenue of more than half a million dollars a year. In 2021, he submitted a false application for a Paycheck Protection Act Loan, claiming that same “wholesale” business had 31 employees, and $1.2 million in revenue. Layne ultimately received $306,700 in COVID-19 related loans to which he was not entitled.

In addition, Layne used the personal identifying information and identity of another person to file false claims for refunds with the IRS. In total, Layne claimed over $7.4 million in false refunds, of which the IRS paid $590,000.

In addition to the term of imprisonment, U.S. District Judge John C. Hinderaker ordered Layne to serve three years of supervised release and to pay $856,692.91 in restitution to the United States.

Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and Interim U.S. Attorney Timothy Courchaine of the District of Arizona made the announcement.

IRS Criminal Investigation and the Federal Bureau of Investigation are conducting the investigation.

Trial Attorney Matthew R. Hoffman of the Tax Division and Assistant U.S. Attorney Mary Sue Feldmeier of the District of Arizona are prosecuting the case.

Source: United States Department of Justice Criminal Division

A California man pleaded guilty today to operating an illegal gambling business, tax evasion, and money laundering.

According to court documents and statements made in court, Christopher Scott King, of Santa Monica, California, operated an illegal bookmaking business. Working out of Los Angeles County, King used a sports betting website based in Costa Rica to facilitate bettors wagering on sporting events in violation of both California state and federal law.

King also evaded his taxes. Between 2019 and 2022, King concealed $13,586,493 of income from the IRS by, among other things, not reporting all of his income on his tax returns. On his 2022 income tax return, for example, King reported $143,258 in taxable income, but, in reality, he earned more than $5 million in income that year.

King laundered his money by channeling it through real estate development projects and gold. King also used money he received from his illegal gambling business to fund his brokerage and financial accounts. As part of his plea agreement, King has agreed to pay $10 million in a personal money judgment of forfeiture at the time of sentencing.

In total, King caused a tax loss to the IRS of $3,804,218.

King is scheduled to be sentenced on Sept. 9 and faces a maximum penalty of five years in prison for each count of tax evasion, operating an illegal gambling operation, and accepting a financial instrument for unlawful internet gambling, and 10 years in prison for money laundering. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney Bilal A. Essayli for the Central District of California made the announcement.

IRS Criminal Investigation’s International Tax and Financial Crimes group and Homeland Security Investigations are investigating the case.

Trial Attorneys John C. Gerardi and Charles A. O’Reilly of the Tax Division are prosecuting the case.

Source: United States Department of Justice Criminal Division

Peter Karasev, 38, a U.S. citizen residing in San Jose, pleaded guilty in the Northern District of California today to federal charges related to two separate bombings of PG&E electrical transformers in late 2022 and early 2023.

Karasev was indicted on Oct. 19, 2023, and pleaded guilty today to two counts of willful destruction of an energy facility. According to the plea agreement, Karasev admitted that on Dec. 8, 2022, and Jan. 5, 2023, he willfully damaged energy facilities involved in the production, storage, transmission, and distribution of electricity. In both attacks, Karasev used homemade explosive devices to cause significant destruction and widespread power outages in the San Jose area.

“Attacks on America’s critical infrastructure are attacks targeting the heart of our nation’s security. They will be treated like the grave threat they are to our country,” said Sue J. Bai, head of the Justice Department’s National Security Division. “With today’s guilty plea, the defendant admitted to putting thousands of lives and businesses at risk and endangering essential services for countless more. The Justice Department will not rest until we disrupt and hold accountable those participating in these dangerous attacks.”

“The defendant admitted to using homemade explosives to intentionally damage two electrical transformers and cause significant disruptions to more than 1,500 residences and businesses in San Jose. The search of his home following his arrest uncovered a staggering trove of explosive devices and hazardous chemicals. There can be no mistake as to the extent of destruction that could have resulted,” said Acting U.S. Attorney Patrick D. Robbins for the Northern District of California. “We applaud the swift work of law enforcement officers to investigate these threats to critical infrastructure, bring the defendant to justice, and prevent further harm to the residents of San Jose.”

“With today’s guilty plea, Karasev admits to using explosives to attack two electrical facilities which resulted in power outages to numerous homes and businesses in the San Jose area,” said Assistant Director David J. Scott of the FBI’s Counterterrorism Division. “Americans rely on essential infrastructure as they go about their daily lives. The FBI works with our partners to protect that infrastructure, and we will hold accountable anyone who seeks to damage it.”

The first attack, which occurred near the Westfield Oakridge Mall, resulted in the destruction of a PG&E transformer and left more than 1,450 customers without power for nearly 16 hours. The second attack, carried out near Plaza Del Rey shopping center, caused further destruction, damaging a transformer and adjacent building, and interrupted power to dozens more residents and businesses.

In connection with his plea, Karasev admitted that the attacks were premeditated and deliberate. He conducted extensive internet searches regarding explosive materials, infrastructure attacks, and geopolitical conflicts. Upon his arrest on March 1, 2023, law enforcement agents discovered multiple homemade explosive devices, over 300 pounds of explosive precursor materials, hazardous chemicals, firearms, and remote detonation devices in his home, vehicle, and office.

Under the terms of the plea agreement, Karasev faces a stipulated sentence of between 102 and 126 months (approximately 8.5 to 10.5 years) in federal prison. He also agreed to pay restitution of no less than $104,076.26 for the damages caused. Sentencing is scheduled for Aug. 19.

The FBI and the San Jose Police Department are investigating the case.

Assistant U.S. Attorney Anne C. Hsieh for the Northern District of California and Trial Attorney Jacob Warren of the National Security Division’s Counterterrorism Section are prosecuting the case.