Category: US Department of Justice

Source: United States Department of Justice Criminal Division

DynCorp International LLC (DynCorp) has agreed to pay $21 million to resolve False Claims Act allegations that it knowingly submitted inflated subcontractor charges under a State Department contract to train Iraqi police forces, known as the “CIVPOL” contract. DynCorp was a government contractor headquartered in Irving, Texas, and Falls Church, Virginia. Amentum, another government contractor with headquarters in Chantilly, Virginia, purchased DynCorp in November 2020.

The State Department awarded the CIVPOL contract to DynCorp in April 2004 to provide training for civilian police forces in Iraq. DynCorp was also tasked with supplying support for this effort, such as lodging for contractor personnel and various labor services. In a lawsuit filed in July 2016, the United States alleged that one of DynCorp’s main CIVPOL subcontractors charged excessive, uncompetitive, and unsubstantiated rates for hotel lodging and guard, translator, driver, and supervisor services, and that DynCorp, contrary to its obligations as a government prime contractor, knowingly passed on those charges to the State Department for reimbursement.

“Federal contractors have a duty be fair and honest when doing business with the government,” said Principal Deputy Assistant Attorney General Yaakov Roth of the Department of Justice’s Civil Division. “The Department will not tolerate those who use times of conflict and strife to enrich themselves at the expense of the American people.”  

“As the Trump Administration zeroes in on fraud, waste, and abuse, this office will continue to seek settlements with outside entities that are taking advantage of their U.S. government contract by either not providing what they promised or misusing the funds in other ways,” said Interim U.S. Attorney Edward Martin Jr. for the District of Columbia. “This contractor was supposed to train civilian police forces to help the State Department provide some stability for a strategic partner. When you are given a government contract, you are taking money from the American people and this office will make certain you deliver on your promises.”

“State Department contractors and subcontractors have a unique opportunity to serve their country and contribute to the safety and security of Americans across the globe,” said Assistant Inspector General Robert J. Smolich for Investigations at the Department of State Office of Inspector General. “Today’s settlement sends a clear message that those who seek to exploit State Department contracts in order to defraud American taxpayers will be held accountable for their actions.”

The resolution obtained in this matter was the result of an effort by the Civil Division’s Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the District of Columbia, and the U.S. Department of State’s Office of Inspector General. 

Trial Attorneys Ben Young and Jeff McSorley and Assistant U.S. Attorney Darrell Valdez for the District of Columbia represented the United States in this matter.

The case is captioned United States v. DynCorp International LLC, Case No. 1:16-cv-01473 (D.D.C.).

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

Source: United States Department of Justice Criminal Division

A Michigan man pleaded guilty today to filing a false tax return for his international vehicle shipping business along with not paying taxes on cash wages he paid to his employees.

According to court documents and statements made in court, Ali Kassem Kain owned and operated a business called Specialized Overseas Shipping that arranged for vehicles to be shipped to West Africa and other destinations for third parties. For tax years 2017 through 2020, Kain underreported the company’s gross receipts by $6.4 million on the business’ tax returns. Kain also did not collect and pay over to the IRS taxes on $249,000 in cash wages he paid to his employees.

Kain faces a maximum penalty of five years in prison for the employment tax offense and a maximum penalty of three years in prison for filing a false tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. District Judge Matthew F. Leitman for the Eastern District of Michigan scheduled sentencing for Aug. 14.

Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division made the announcement.

IRS Criminal Investigation and the FBI Detroit Field Office are investigating the case.

Trial Attorneys Richard J. Kelley and Jeffrey A. McLellan of the Tax Division are prosecuting the case.

Source: United States Department of Justice

A Florida man was sentenced yesterday to 30 months in prison for evading more than $5.5 million in taxes, interest, and penalties that he owed the IRS.

According to court documents and statements made in court, David Albert Fletcher, of Deltona, owned and operated furniture liquidations businesses, including Century Liquidators. For tax years 2004 through 2013, Fletcher did not timely file his federal income tax returns or pay the taxes he owed. After an audit, the IRS assessed a total of $1.7 million in taxes, interest, and penalties against him.

To evade collection of these taxes, Fletcher concealed his income and assets from the IRS. For example, Fletcher used nominees to hide his purchases of luxury vehicles, including Rolls Royces. Fletcher also filed false income tax returns that understated his income by several million dollars, and when an IRS special agent interviewed him, Fletcher falsely represented the amount of income he earned.

In addition to his prison sentence, U.S. District Judge Wendy Berger for the Middle District of Florida ordered Fletcher to serve three years of supervised release and to pay approximately $7,112,689 in restitution to the United States.

Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney Gregory W. Kehoe for the Middle District of Florida made the announcement.

IRS Criminal Investigation investigated the case.

Trial Attorneys Zachary A. Cobb and Charles A. O’Reilly of the Tax Division and Assistant U.S. Attorney Megan Testerman for the Middle District of Florida prosecuted the case.

Source: United States Department of Justice Criminal Division

A federal grand jury in Alexandria, Virginia, returned an indictment yesterday charging a Virginia man with obstructing the IRS and willfully failing to file tax returns.

According to the indictment, Omini Tete Riman, of Woodbridge, was an information technology specialist. He allegedly filed false 2013 and 2014 tax returns, reporting that he earned nearly $2 million in income and had almost $1 million withheld in taxes. Based on those false statements, Riman allegedly claimed nearly $400,000 in refunds, which the IRS paid.

The indictment states that starting in 2016, after notifying Riman about his outstanding tax liabilities, the IRS attempted to recover the funds from him. However, Riman allegedly took numerous steps to frustrate the IRS’s collection efforts. For example, it is alleged he transferred his property to a trust, opened bank accounts in the trust’s name and directed that his wages be deposited into the trust’s bank account. It is further alleged that he also submitted false documents to the IRS, including false documents which purported to show that an IRS employee owed him money and that Riman had canceled the debt, which, if accurate, would have caused the IRS employee’s own tax liability to increase.  

In addition, the indictment alleges that for tax years 2018 through 2023, Riman knew he was legally required to file tax returns but willfully did not do so timely. In fact, after being notified that he was the target of a grand jury investigation in 2025, Riman allegedly filed tax returns for 2017 through 2020 which falsely reported that he had earned no income during those years. 

If convicted, Riman faces a maximum penalty of three years in prison for each count of obstructing the IRS and a maximum penalty of one year in prison for each count of failing to file a tax return. 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 Erik S. Siebert for the Eastern District of Virginia made the announcement.

IRS Criminal Investigation and the U.S. Department of the Treasury’s Office of the Inspector General are investigating the case.

Trial Attorneys Isaiah Boyd III and Daniel Lipkowitz of the Justice Department’s Tax Division and Assistant U.S. Attorney Jordan Harvey for the Eastern District of Virginia are prosecuting the case.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Source: United States Department of Justice Criminal Division

WASHINGTON – Attorney General Pamela Bondi released the following statement regarding her creation of a 2^nd Amendment Task Force at the Department of Justice:

“The prior administration placed an undue burden on gun owners and vendors by targeting law-abiding citizens exercising their 2nd Amendment rights. The Department of Justice’s new 2^nd Amendment Task Force will combine department-wide policy and litigation resources to advance President Trump’s pro-gun agenda and protect gun owners from overreach.”

Background:

• This follows the DOJ and ATF’s Monday repeal of the Enhanced Regulatory Enforcement Policy and the review of Final Rule 2021R-08F, related to stabilizing braces, and Final Rule 2022R-17F, related to the definition of “engaging in the business” of firearms dealing. Read more here.
• Read the full memo establishing the 2^nd Amendment Task Force here.