Category: US Department of Justice

Source: United States Department of Justice News

The Justice Department announced today that ESSA Bank & Trust (ESSA) has agreed to pay over $3 million to resolve allegations that it engaged in a pattern or practice of lending discrimination by redlining majority-Black and Hispanic neighborhoods in and around Philadelphia. Redlining is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color or national origin of the residents in those communities.

The complaint filed in federal court today alleges that from at least 2017 to 2021, ESSA failed to provide mortgage lending services and did not serve the credit needs of majority-Black and Hispanic neighborhoods in the Philadelphia metropolitan area.

“For too long, residents of communities of color have been unlawfully denied equal access to credit and shut out of economic opportunities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When banks engage in redlining, they perpetuate existing patterns of segregation and widen the racial wealth gap in our country. This resolution makes clear our commitment to holding banks and financial institutions accountable for modern day redlining while ensuring access to fair lending in communities of color.”

“Accessing the American dream of owning your own home is possible only when there is equality for all in their opportunities to access lending in the residential mortgage markets,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “Redlining in Greater Philadelphia has deep roots; it’s led to decades of disinvestment in communities of color. We appreciate ESSA’s prompt cooperation with the department’s investigation and their efforts that will aim to infuse lending resources and help build wealth in neighborhoods of color.”

Under the proposed consent order, which is subject to court approval, ESSA has agreed to invest at least $2.92 million in a loan subsidy fund to increase access to credit for home mortgage, improvement and refinance loans, as well as home equity loans and lines of credit, in majority-Black and Hispanic neighborhoods in the bank’s lending area. ESSA has also agreed to spend an additional $125,000 on community partnerships and $250,000 on advertising, outreach, consumer financial education and credit counseling, in an effort to expand the bank’s services in majority-Black and Hispanic communities. The consent order also requires the bank to hire two new mortgage loan officers to serve its existing branches in West Philadelphia and conduct a research-based market study to help identify the needs for financial services in communities of color.

The department opened its investigation into ESSA’s lending practices after receiving a referral from the Federal Deposit Insurance Corporation. ESSA fully cooperated with the department’s investigation and worked expeditiously to resolve these allegations.

In October 2021, the department launched its Combating Redlining Initiative as a coordinated enforcement effort to address this persistent form of discrimination against communities of color. Since the initiative was launched, the department has announced seven redlining cases and settlements and secured $87 million in relief for communities of color that have been victims of lending discrimination across the country.

More information about the department’s fair lending enforcement can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291 or submitting a report online.

Source: United States Department of Justice News

On May 23, the U.S. District Court for the Western District of Missouri permanently barred Rhonda Eickhoff from organizing, promoting, selling or marketing a tax scheme involving the use of charitable remainder annuity trusts (CRATs).

On May 17, the court likewise permanently barred John Eickhoff Jr. and Hoffman Associates LLC from organizing, promoting, selling or marketing a tax scheme involving the use of CRATs. In addition, the court ordered Hoffman Associates LLC, the company allegedly used to promote the scheme, to disgorge $1.1 million and John Eickhoff Jr. to disgorge $400,000. The court previously entered injunctions against defendants John William Gray II and Damon Thomas Eisma stemming from their roles in this scheme. Each defendant agreed to the court orders. The case against two additional defendants for their roles in this scheme remains pending.

According to the United States’ amended complaint, defendants falsely claimed that customers following their CRAT scheme could sell property in a way that eliminated the federal income tax on the gain generated from the sale. The government alleged each defendant took part in one or more of the following steps involved in the scheme: (1) recruiting customers to contribute property to a CRAT (usually real property that has gained value over time); (2) unlawfully inflating (stepping-up) the cost basis in the property on tax documents; (3) selling the property and using the proceeds to purchase an annuity; and (4) falsely reporting the annuity payments received by the customers as tax-free distributions from the CRAT. The government alleged that the defendants promoted, sold, or established at least 70 CRATs, resulting in an estimated $40 million of unreported taxable income.

Abusive arrangements using Charitable Remainder Annuity Trusts remain a concern of the IRS, which recently warned taxpayers about the misuse of this trust arrangement as part of the IRS’s Dirty Dozen series.

Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.

Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS offers tips on how to accurately file returns and how to choose a tax return preparer, as well as steps taxpayers can take to get a jumpstart on filing. The IRS also offers 10 tips to avoid tax season fraud and ways to safeguard their personal information.  Taxpayers seeking assistance can access the IRS’s free directory of federal tax preparers.

In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

Source: United States Department of Justice News

            WASHINGTON – Firoz Patel, 48, of Canada, was ordered detained today following indictment on charges of laundering 450 Bitcoin (BTC), valued at $24,020,699.83 at the time of the transaction, shortly before he reported to prison in another case in 2021. The two-count indictment, unsealed on May 17, 2023, charges Patel with money laundering and engaging in monetary transactions in property derived from specified unlawful activity. U.S. District Court Judge Dabney L. Friedrich, of the U.S. District Court for the District of Columbia, ordered Patel be detained pending trial.

            The announcement was made by U.S. Attorney Matthew M. Graves and Special Agent in Charge Derek W. Gordon of Homeland Security Investigations (HSI) Washington, D.C.

            Previously, Patel, his brother, Ferhan, and their company, MH Pillars, Inc., d/b/a Payza, were prosecuted in the United States District Court for the District of Columbia for operating an Internet-based unlicensed money service business that processed more than $250 million in transactions. Through Payza.com, the defendants ran a money transmitting business that operated without the necessary state licenses and knowingly transmitted funds that were derived from illegal activity. The brothers each pled guilty to conspiracy to commit crimes against the United States by operating an unlicensed money transmitting business and by laundering monetary instruments. As part of his plea agreement, Firoz Patel was required to disclose all known assets to the U.S. government. On November 10, 2020, Patel was sentenced to 36 months in prison and was given a reporting date. The court also entered a forfeiture judgment for “any property, real or personal, involved in” the offense to which Firoz Patel had pled guilty. 

            According to court documents, between his sentencing and reporting dates, Patel transferred 450 BTC, traceable to Payza.com, to an account at a virtual currency exchange in the United Kingdom. The 450 Bitcoin would have been subject to forfeiture in Patel’s previous criminal case. The virtual currency exchange account was opened using the name and date of birth of Patel’s father, but with an email address and phone number controlled by Firoz Patel.  When the virtual currency exchange requested additional information about the account and the large deposit, it received a response in the name of an employee of a company in India affiliated with Payza. The account containing the 450 Bitcoin was ultimately frozen. 

            This matter is being investigated by the Homeland Security Investigations (HSI) Washington, D.C. Field Office.  The case is being prosecuted by Assistant U.S. Attorneys Arvind K. Lal and Christopher B. Brown. 

            An indictment is a formal accusation of criminal conduct, not evidence of guilt.  A defendant is presumed innocent unless proven guilty.

Source: United States Department of Justice News

Remarks as Prepared for Delivery

Thank you, Rosie, and good morning, everyone. As a lifelong advocate and a survivor, I’m honored to be here with all of you and to represent the Department of Justice at the release of the National Plan to End Gender-Based Violence: Strategies for Action.

At the Department of Justice, we know that sexual assault, domestic violence, stalking and human trafficking are serious violent crimes that make our nation less equal and less just. Only a comprehensive response that is deeply informed by survivors and historically marginalized communities can end gender-based violence.

I travel all over the country meeting with advocates, law enforcement, prosecutors and clinicians. They are doing whatever it takes to meet survivors where they are – both figuratively and literally. Just as laid out in this national plan, they are responding to the whole person, the whole community.

A family justice center in Louisiana is offering onsite forensic exams and primary health care and holistic wellness. But also housing and connections to jobs and options for survivors who aren’t sure about working with law enforcement yet.

A tribal program in California is waiting with kids every morning before they get on the school bus, to stop traffickers from approaching them and to build relationships that help prevent dating violence.

Federal prosecutors in Texas, Alabama, Oklahoma and more are reducing violent crime by partnering with service providers and prosecuting federal gun crimes committed by domestic violence perpetrators.

The Department of Justice is committed to making our communities safer by increasing access to justice, in all its forms. The Office on Violence Against Women alone has awarded over $9.5 billion under the Violence Against Women Act since it was first authorized. And that’s to say nothing of our colleagues at the Office for Victims of Crime, who award billions every year.

• On Monday, we announced the first-ever National Protocol for Intimate Partner Violence Medical Forensic Examinations.
  • The protocol gives guidance on caring for victims with compassion and respect, empowers patients to make decisions for their welfare, and instructs clinicians on collecting evidence should survivors opt for a criminal justice system response.

• Last year, the Department released guidance to improve law enforcement response to sexual assault and domestic violence by identifying and preventing gender bias, so that survivors who seek help can get it and law enforcement can more effectively fight these cries.
• Deputy Attorney General Lisa Monaco issued a memorandum reiterating the priority to address the disproportionately high rates of violence experienced by American Indians and Alaska Natives, and relatedly.
• DOJ has also spearheaded efforts to implement state of the art forensic telehealth centers to respond to gender-based violence survivors in rural and isolated communities in America, including remote villages in Alaska.
• Last April, the Civil Rights Division launched a Coordinating Committee to Combat Sexual Misconduct. In just one year, they have secured $3.75 million for victims and survivors, obtained 21 criminal convictions, filed nine civil complaints with 16 in active litigation, and trained more than 6,000 people.

These efforts are among many others that are creating systemic change. Together as federal agencies, we can end gender-based violence.

Source: United States Department of Justice News

This week, the Justice Department highlighted a series of initiatives aimed at preventing and addressing sexual violence, intimate partner violence, stalking, and other forms of gender-based violence (GBV). With its strong, longstanding commitment to upholding justice and pursuing equality for all, the Justice Department joins its partners across the federal government and communities nationwide to prioritize the safety of all survivors of GBV and lauds the White House’s recent release of the National Plan to End Gender-Based Violence: Strategies for Action.

“Gender-based violence violates fundamental human rights, destroys communities, and fosters social inequities,” said Associate Attorney General Vanita Gupta. “Identifying and preventing these crimes is a top department priority, underscored by this first-ever national plan and the government’s collective commitment to this cause. The Justice Department, with our federal partners, will continue to spotlight the repercussions of these crimes on society and applauds those who support survivors in restoring their sense of safety and well-being.”

GBV affects individuals from all walks of life and spans all ages, representing a significant public safety crisis. It pervades every sphere of human interaction, be it public or private. In our ever-connected world, this form of violence impacts communities nationwide and can often escalate under disaster, conflict or crisis conditions, including global health emergencies such as a pandemic.

During the Launch of the National Plan to End Gender-Based Violence, Acting Director Allison Randall of the Office on Violence Against Women (OVW) delivered remarks and facilitated a roundtable discussion with leaders, advocates, and survivors. “Sexual assault, domestic violence, stalking, and human trafficking are serious violent crimes that make our nation less equal and less just,” said Acting Director Randall. “Only a comprehensive response that is deeply informed by survivors and historically marginalized communities can end gender-based violence. Today we uplift the ongoing work of the Department of Justice and stand with colleagues across the federal government and with communities across the United States.”

The Justice Department’s work to respond to GBV is a whole-of-agency effort to provide comprehensive services for survivors and hold offenders accountable by enforcing the nation’s laws against these crimes. The department’s unwavering commitment to addressing GBV spans across funding, research, policy, technical assistance, training, and guidance that includes, but is not limited, to the following:

Funding

The OVW and the Office of Justice Programs (OJP) administer grants to prevent, address and coordinate community responses across the nation to address gender-based violence. Funding helps to strengthen the criminal justice system’s response, expand victim services, support community-based efforts and bolster prevention.

Of note, the Violence Against Women Act Reauthorization Act of 2022 (VAWA 2022) includes numerous improvements to legal tools and expansions to  OVW grant programs addressing domestic violence, dating violence, sexual assault, and stalking. Also, each year, OJP’s Office for Victims of Crime (OVC) administers hundreds of millions of dollars to all states and territories for crime victim assistance and compensation, including for survivors of gender-based violence.

Policies and Guidance

Projects and Initiatives

• In April 2023, the Civil Rights Division’s Coordinating Committee to Combat Sexual Misconduct released a fact sheet showcasing its achievements in combatting sexual misconduct throughout the preceding year.
• In September 2022, OVC funded Restoring Youth: Supporting Sexual Abuse Survivors in Youth Detention, a program aimed at expanding services for sexual abuse survivors in youth detention. The project will build the capacity of four selected grantee partnership sites, comprised of youth detention facilities and community-based sexual abuse survivor service providers, to establish services for youth that are rooted in racial equity and accessible to survivors from traditionally underserved communities.
• OVC funded several initiatives to prevent Female Genital Mutilation or Cutting (FGM/C) including a Support Line for Survivors of FGM/C, an End FGM/C Network Resources Page, and a Voices to End FGM/C Digital Storytelling Project. They also funded two national trainings for maternal healthcare providers to address FGM/C in May of 2023.

• OVC funded the Youth Collaboratory to implement projects to prevent and reduce the victimization of Black girls vulnerable to sex trafficking by increasing the capacity of program providers and other stakeholders working to prevent the trafficking of Black girls. The projects included a three-part video series that amplified voices from the field-direct service professionals, researchers, youth and young adults with lived expertise, and multidisciplinary providers. Additionally, the Girls Action Board (GAB), a national leadership opportunity for youth and young adults (ages 18-24) with lived expertise, wrote and performed a collaborative poetry piece about the importance of centering Black girls.

Addressing Crimes Against American Indian and Alaska Native Communities

• In July 2022, Deputy Attorney General Lisa O. Monaco issued a memorandum reiterating the priority of the Department of Justice to address the disproportionately high rates of violence experienced by American Indians and Alaska Natives, and relatedly, the high rates impacting indigenous women and girls reported missing or murdered. The memorandum directed each U.S. Attorney with Indian country jurisdiction – along with their law enforcement partners at the Justice Department – to update and develop new plans for addressing missing and murdered persons crisis.

• On Aug. 8-10, the OVW will hold the 18th Annual OVW Government-to-Government Tribal Consultation on Violence Against Women in Tulsa, Oklahoma, on behalf of the Attorney General. The 2022 Tribal consultation report is available here.
• In December 2022, the OVC held its Tribal Nation’s Conference in Palm Springs, California, bringing together thousands of Tribal leaders, victim service providers, and criminal justice practitioners to address crime victimization in Indian Country, including all aspects of gender-based violence.
• In April 2022, OVW issued an interim final rule governing the Special Tribal Criminal Jurisdiction (STCJ) Reimbursement Program, a new program authorized under VAWA 2022 to reimburse Tribal governments for expenses incurred in exercising STCJ over non-Native individuals who commit certain covered crimes on tribal lands.
• OVC administers the Tribal Victim Services Set-Aside, which provides non-competitive grant funding to support victim services, including gender-based violence. Tribal set-aside awards support activities such as shelters, child advocacy centers, sexual assault services, community outreach and education; and other activities needed to address survivors in tribal communities.

Research and Data

• In May 2022, OVW released the FY 2023 Research and Evaluation Initiative to conduct research that facilitates researcher-practitioner partnerships and studies interventions that address domestic violence, sexual assault, dating violence, and stalking.
• In March 2023, the Department’s National Institute of Justice released a solicitation to conduct research and evaluation projects examining a broad range of topics, including the crimes of domestic and family violence, intimate partner violence, rape, sex trafficking, sexual assault, stalking, and teen dating violence, also known as adolescent relationship abuse, along with the associated criminal justice system response, procedures, and policies.
• The Bureau of Justice Statistics (BJS) maintains a collection of data that support efforts to address gender-based violence. These measures are collected on several BJS data collections, although the approach to measurement can vary depending on the collection and the year of administration: National Crime Victimization Survey, National Inmate Survey, National Survey of Youth in Custody, and Survey of Prison Inmates.