Category: US Department of Justice

Source: United States Department of Justice 2

Yesterday, a federal court in Massachusetts entered a consent decree requiring SunSetter Products LP (SunSetter) to pay $9.25 million in civil penalties and implement and maintain a robust compliance program to prevent future illegal conduct, the Justice Department announced.

In a complaint filed April 6, 2023, the government alleged that SunSetter failed to timely report to the Consumer Product Safety Commission (CPSC) a defect affecting approximately 270,000 protective covers used with SunSetter retractable awnings. According to the complaint, removal of the defective awning cover could cause the retractable awning to unexpectedly spring open with enough force to knock over anyone in the awning’s path, putting consumers using ladders to access the awning at risk of death or serious injury. The complaint alleged that multiple consumers were injured, and one killed, as a result of this defect. The complaint alleged that SunSetter violated the Consumer Product Safety Act (CPSA) by failing to report the defect until 2017, despite being aware of consumer complaints as early as 2012 and completing its own simulation testing in 2015 that confirmed the safety hazard. SunSetter recalled the covers in August 2019.

“The failure to immediately report dangerous products puts consumers at unnecessary risk,” said Acting Assistant Attorney General Yaakov Roth of the Justice Department’s Civil Division. “The Department will continue to work with the CPSC to hold accountable companies that fail to follow the law.”

“This settlement makes clear that companies must prioritize consumer safety and comply with their legal obligations to report hazardous defects in a timely manner,” said U.S. Attorney Leah B. Foley for the District of Massachusetts. “SunSetter’s failure to do so had tragic consequences. We will continue to hold companies accountable when they put the public at risk by disregarding federal safety laws.”

“This consent decree is an important reminder of the affirmative obligation to report product hazards in a timely manner,” said Acting Chairman Peter A. Feldman of the Consumer Product Safety Commission. “I appreciate the work of CPSC staff and our partners at DOJ in resolving this matter and keeping American consumers safe.”

Trial Attorneys Brett Ruff and Nicole Frazer of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Anuj Khetarpal for the District of Massachusetts, with the assistance of Renee McCune of CPSC’s Office of the General Counsel and Amelia Hairston-Porter of CPSC’s Office of Compliance and Field Operations, are handling the case.

For more information about the enforcement efforts of the Consumer Protection Branch visit the Branch’s website at www.justice.gov/civil/consumer-protection-branch.

The claims resolved by the consent decree announced today are allegations only, and there has been no determination of liability.

Source: United States Department of Justice Criminal Division

Three South Carolina men and one woman were sentenced on Feb. 3, March 13, and April 1, for violent crimes targeting Hispanics in Columbia, South Carolina. Charles Antonio Clippard, 27, was sentenced to 420 months in prison; Michael Joseph Knox, 29, was sentenced to 303 months in prison; Gabriel Brunson, 21, was sentenced to 100 months in prison; and Sierra Fletcher, 34, was sentenced to 200 months in prison.

All four defendants previously pleaded guilty to carjacking, conspiracy, firearms, and criminal civil rights charges in connection with the string of armed robberies. According to court documents, beginning in January 2021 and continuing through February 2021, the four defendants conspired to target Hispanic victims for armed robberies. The group would wait for their victims at gas stations and grocery stores and then follow them to their homes or other locations to rob their victims at gunpoint. All four defendants admitted their involvement in a Jan. 30, 2021, armed robbery and carjacking targeting a Hispanic victim after following him from a gas station to his home. In another series of robberies on Jan. 30, 2021, three members of the group carjacked one victim, and invaded the home of another group of victims. The group stole cash, cellphones, driver’s licenses, and credit cards from multiple victims.

Deputy Assistant Attorney General Mac Warner of the Justice Department’s Civil Rights Division; Acting U.S. Attorney Brook Andrews, and Acting Special Agent in Charge Reid Davis of the FBI Columbia Field Office made the announcement.

The FBI Columbia Field Office investigated the case.

Assistant U.S. Attorney Ben Garner for the District of South Carolina and Trial Attorneys Katherine McCallister and Andrew Manns of the Civil Rights Division’s Criminal Section prosecuted the case.

Source: United States Department of Justice

Today, a Federal Judge accepted a guilty plea to destruction of records in a federal investigation from a former employee of a contractor that provided operation and maintenance services to the U.S. Army Corps of Engineers for U.S. military installations in South Korea.

According to the information filed in the Western District of Texas, in or about July 2021, David Cruz, 37, deleted text messages with Hyuk Jin Kwon and Hyun Ki Shin. Kwon and Shin were separately charged ‌for fraud and conspiring to rig bids and fix prices on millions of dollars in maintenance and repair subcontracting work provided to the U.S. Army Corps of Engineers in South Korea and remain fugitives. At Kwon’s suggestion, Cruz deleted text messages after receiving a litigation hold notice from his employer requiring him not to destroy or delete communications. Cruz then covered up the deletion of those text messages after being specifically advised by his employer that there was an ongoing federal investigation.

In the deleted text messages, Cruz discussed with Kwon and Shin the need to get additional bids from their competitor to satisfy the U.S. Army Corps of Engineer’s competitive bidding requirements for subcontract work. Kwon had previously told Cruz that Cruz should contact him instead of requesting bids directly from Kwon’s competitors.

“The Procurement Collusion Strike Force’s commitment to safeguard taxpayer dollars from collusion and fraud is unwavering,” said Director Daniel Glad of the Justice Department’s Procurement Collusion Strike Force (PCSF). “The Antitrust Division will not hesitate to prosecute individuals who unlawfully impede our investigations by destroying or covering up evidence.”

“Bid rigging and other acts of fraud against the U.S. Army not only undermine the integrity of critical procurement efforts but also put our Soldiers at risk by providing them capabilities and services which do not meet the high standards necessary to maintain peak lethality,” said Special Agent in Charge Michael DeFamio of the Department of the Army Criminal Investigation Division (Army CID), Far East Field Office. “Army CID is grateful for the collaborative efforts of our federal partners at the FBI and the Department of Justice, and we will continue to identify, investigate, and hold accountable those who attempts to defraud the U.S. Government, regardless of where they are in the world.”

“The Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS) is steadfast in its mission to protect taxpayer funds from fraud and collusion,” said Special Agent in Charge Stanley Newell of DCIS’ Transnational Field Office. “We are equally committed to relentlessly pursuing those who attempt to obstruct our investigations through the destruction or concealment of evidence.”

“Mr. Cruz knowingly destroyed records that were part of an ongoing criminal investigation and has now acknowledged his crime” said Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office. “The FBI is committed to holding accountable military contractors who flout the bidding process and intentionally destroy evidence of their guilt.”

Destruction of records in a federal investigation carries a maximum penalty of 20 years in prison and a $250,000 fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other relevant factors.

The Antitrust Division’s Washington Criminal Section, Army CID, DCIS, and the FBI investigated the case.

Assistant Chief Daniel E. Lipton and Trial Attorney Daniel P. Chung of the Antitrust Division prosecuted the case with assistance from Assistant U.S. Attorney Matthew B. Devlin for the Western District of Texas.

In November 2019, the Justice Department created the PCSF, a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government — federal, state and local. To learn more about the PCSF, or to report information on bid rigging, price fixing, market allocation and other anticompetitive conduct related to government spending, go to www.justice.gov/procurement-collusion-strike-force. Anyone with information in connection with this investigation can contact the PCSF at the link listed above.

Source: United States Department of Justice

The Justice Department today announced that it will surge FBI assets across the country to address unresolved violent crimes in Indian Country, including crimes relating to missing and murdered indigenous persons.

FBI will send 60 personnel, rotating in 90-day temporary duty assignments over a six-month period. This operation is the longest and most intense national deployment of FBI resources to address Indian Country crime to date. FBI personnel will support field offices in Albuquerque; Denver; Detroit; Jackson, Miss.; Minneapolis; Oklahoma City; Phoenix; Portland, Oreg.; Seattle; and Salt Lake City. The FBI will work in partnership with the Bureau of Indian Affairs and Tribal law enforcement agencies across jurisdictions.

FBI personnel will be assisted by the Bureau of Indian Affairs Missing and Murdered Unit, and they will use the latest forensic evidence processing tools to solve cases and hold perpetrators accountable. U.S. Attorney’s Offices will aggressively prosecute case referrals.

“Crime rates in American Indian and Alaska Native communities are unacceptably high,” said Attorney General Pamela Bondi. “By surging FBI resources and collaborating closely with U.S. Attorneys and Tribal law enforcement to prosecute cases, the Department of Justice will help deliver the accountability that these communities deserve.”

“The FBI will manhunt violent criminals on all lands – and Operation Not Forgotten ensures a surge in resources to locate violent offenders on tribal lands and find those who have gone missing,” said FBI Director Kash Patel.

Indian Country faces persistent levels of crime and victimization. At the beginning of Fiscal Year 2025, FBI’s Indian Country program had approximately 4,300 open investigations, including over 900 death investigations, 1,000 child abuse investigations, and more than 500 domestic violence and adult sexual abuse investigations.

Operation Not Forgotten renews efforts begun during President Trump’s first term under E.O. 13898, Establishing the Task Force on Missing and Murdered American Indians and Alaska Natives. This is the third deployment under Operation Not Forgotten, which has provided investigative support to over 500 cases in the past two years. Combined, these operations resulted in the recovery of 10 child victims, 52 arrests, and 25 indictments or judicial complaints.

Operation Not Forgotten also expands upon the resources deployed in recent years to address cases of missing and murdered indigenous people. The effort will be supported by the Department’s MMIP Regional Outreach Program, which places attorneys and coordinators in U.S. Attorneys’ Offices across the United States to help prevent and respond to cases of missing or murdered indigenous people.

Source: United States Department of Justice Criminal Division

DRI Relays Inc. (DRI), a subsidiary of TE Connectivity Corporation (TEC), has agreed to pay $15.7 million to resolve allegations that it violated the False Claims Act by supplying military parts that did not meet military specifications, the Justice Department announced today.

TEC acquired DRI in October 2020. DRI manufactures electrical relays and sockets for numerous military platforms and has manufacturing locations in Long Island, New York, and Bangalore, India. In January 2011, TEC disclosed to the Department of Defense that DRI had not conducted certain required tests on MIL-PRF-83536 relays and MIL-DTL-12883 sockets, and cooperated with the government’s investigation. The United States subsequently alleged that between 2015 and 2021, under various Department of Defense (DoD) contracts and subcontracts, DRI invoiced for military grade electrical relays and sockets when it knew those parts had not met the testing requirements to be deemed military grade.  

“It is essential to the safety and operational readiness of our military that contractors comply with applicable military specifications,” said Acting Assistant Attorney General Yaakov M. Roth of the Justice Department’s Civil Division. “We will continue to hold accountable those who knowingly supply equipment to the U.S. military that fails to meet their contract obligations.”

“Maintaining the integrity of the U.S. Department of Defense supply chain is a top priority for the DoD Office of Inspector General’s Defense Criminal Investigative Service (DCIS),” said Special Agent in Charge Patrick J. Hegarty of the DCIS Northeast Field Office. “The DoD expects its suppliers to adhere to contract specifications and perform required testing on products sold to the U.S. military. We are committed to working with our law enforcement partners to investigate allegations of contractors failing to meet testing protocols and disclose product deficiencies.”

“This settlement demonstrates the resolve of the Department of the Army Criminal Investigation Division (Army CID) and our law enforcement partners to ensure the integrity of the equipment and materiel procured or used by the United States Army,” said Special Agent in Charge Keith K. Kelly of the Department of the Army CID Fraud Field Office. “Failures to adhere to established standards when providing military parts can place our Soldiers at significant risk and adversely impact the Army’s warfighting capabilities.”

This matter was handled by Senior Trial Counsel Art J. Coulter of the Civil Division’s Commercial Litigation Branch, Fraud Section. DCIS, Army CID, and the Defense Contract Audit Agency assisted in this investigation.

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