Category: US Department of Justice

Source: United States Department of Justice Criminal Division

Kyle Benjamin Douglas Calvert, 26, of Irondale, Alabama, pleaded guilty in federal court to the malicious use of an explosive device.

“This defendant built a bomb using nails and screws as shrapnel and detonated it outside the Alabama Attorney General’s Office, endangering a public institution and members of the community,” said Attorney General Merrick B. Garland. “Public servants should never be targeted for doing their jobs. The Justice Department will not tolerate such conduct, and we will use every resource at our disposal to prevent these attacks and hold perpetrators accountable.”

“The defendant pleaded guilty today to setting off a shrapnel-filled explosive at public offices in the middle of downtown Montgomery,” said FBI Director Christopher Wray. “Violence and destruction of property will never be tolerated, and the FBI and our partners will continue to work together to ensure anyone who attempts to harm or intimidate the community will be held accountable.”

“This attack on the Alabama Attorney General’s Office was an attack on the American justice system,” said Director Steven Dettelbach of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “Violent, targeted attacks like this, aim to harm, whether physically or through fear and intimidation, the civil servants and public officials who serve our communities and country. ATF is committed to holding those who attack American institutions accountable. I commend the work of the ATF and all our federal and local partners in bringing this defendant to justice.”

“Calvert’s offense was a very serious one and today’s plea ensures that he will face significant consequences,” said U.S. Attorney Jonathan S. Ross for the Middle District of Alabama. “Calvert would not have been held accountable had it not been for the thorough and painstaking investigation conducted by federal, state, and local law enforcement agents working together. I am grateful for the efforts of everyone involved.”

According to the court documents, Calvert detonated an explosive device during the early morning hours of Feb. 24, outside of the Alabama Attorney General’s Office in downtown Montgomery. No injuries were reported. Calvert admitted during the plea hearing to manufacturing the device himself, using items such as nails and screws to act as shrapnel along with accelerants to cause an explosion. Prior to planting the device, Calvert placed stickers on various state buildings depicting different graphics and advocating for various political ideologies. Some stickers included the phrase “Support your local antifa.” As reflected in the plea agreement, Calvert claims he has no affiliation with antifa. After placing the explosive device near the Attorney General’s Office, Calvert lit its fuse and fled the scene. Law enforcement arrested Calvert on April 10.

A sentencing hearing will be scheduled for Calvert at a later date. Calvert faces a minimum penalty of five years in prison and 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.

The FBI is investigating the case with assistance from the ATF.

Assistant U.S. Attorneys Russell T. Duraski and Brett J. Talley for the Middle District of Alabama are prosecuting the case.

Source: United States Department of Justice Criminal Division

The Justice Department filed a lawsuit today against Tony’s Auto Center Inc., doing business as Tony’s Auto Center, in Chula Vista, California, alleging that it illegally auctioned off a deployed U.S. Navy Lieutenant’s car, in violation of the Servicemembers Civil Relief Act (SCRA).  The SCRA prohibits a towing company from auctioning off a vehicle owned by a servicemember unless it first obtains an order from a court allowing it to do so.

“When towing companies ignore their legal obligations under the SCRA, it can have serious financial consequences for servicemembers,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We hope that bringing this case encourages other towing companies to review and improve their policies and ensure that the rights of all servicemembers are honored and respected.”

“The law provides specific and necessary protections to active duty servicemembers so they can dedicate themselves to protecting our freedom,” said U.S. Attorney Tara McGrath for the Southern District of California. “As the filing of this complaint demonstrates, we will fight to enforce those protections.”              

The department’s lawsuit, which was filed today in the Southern District of California, alleges that Tony’s Auto Center illegally auctioned the Lieutenant’s 2011 Mazda 6 while he was deployed at sea aboard the USS Bunker Hill. Prior to deployment, the Lieutenant placed some personal belongings in his car and parked it in front of a friend’s house. While the Lieutenant was at sea, Chula Vista Police Department impounded the car due to an expired registration, and Tony’s Auto Center towed the car to its facility. About two months later, Tony’s Auto Center, through its agent, sold the Lieutenant’s car at auction without obtaining a court order authorizing the sale.

According to the complaint, in March 2023, the Lieutenant returned home from deployment to find that his car had been towed. He then contacted Tony’s Auto and learned that they had sold his car. Even though he no longer had the car, he had to continue making his monthly car loan payments to Navy Federal Credit Union, which totaled over $2,500.

Individuals with information that may be relevant to this case should call the U.S. Attorney’s Office for the Southern District of California at 619-546-7516.

Servicemembers and their dependents who believe their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program Office.  Office locations can be found at legalassistance.law.af.mil/.

The Justice Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and U.S. Attorneys’ Offices throughout the country. Since 2011, the department has obtained over $481 million in monetary relief for over 147,000 servicemembers through its enforcement of the SCRA. Additional information on department’s enforcement of the SCRA and other laws protecting servicemembers is available at www.servicemembers.gov.

Source: United States Department of Justice Criminal Division

An indictment was unsealed today in which an individual was charged based on his involvement with online groups dedicated to creating and distributing videos depicting acts of extreme violence and sexual abuse against monkeys.

Philip Colt Moss, of Iowa, was charged with conspiracy to create and distribute so-called “animal crush videos,” and with distributing animal crush videos. According to court documents, in March and April 2023, Moss allegedly conspired with Nicholas Dryden and Giancarlo Morelli to create and distribute videos depicting acts of sadistic violence against baby, adolescent and adult monkeys. Dryden and Morelli were previously indicted and are awaiting trial. 

The videos alleged to have been created as part of the conspiracy included depictions of monkeys having their genitals burned, having their genitals cut with scissors, being sodomized with a wooden skewer and being sodomized with a spoon.

If convicted, Moss faces a maximum penalty of five years in prison for the conspiracy charge and a maximum penalty of seven years in prison for the charges related to the creation and distribution of animal crush videos. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Kenneth L. Parker for the Southern District of Ohio made the announcement.

The U.S. Fish and Wildlife Service and FBI investigated the case.

Senior Trial Attorney Adam Cullman of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Tim Oakley for the Southern District of Ohio 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

Remarks as Prepared for Delivery

Renters deserve the benefits of vigorous competition. In prosperous times, that competition should limit rent hikes; in harder times, competition should bring down rent, making housing more affordable.

RealPage has built a business out of frustrating the natural forces of vigorous competition.

In the words of RealPage, “a rising tide raises all ships.” This is more than just marketing. It’s literally the cost of housing for millions of Americans.

For RealPage, that rising tide of rents means more profits. For landlords, that rising tide means more revenues from higher rents. 

But renters pay the price. For renters, that rising tide means less money for food, healthcare, childcare and education. For renters, that rising tide means less money for families to make ends meet.

Today, we filed an antitrust suit against RealPage to fight the rising tide of high rent, to restore competition and to make housing more affordable for millions of people across the country.

This is best understood in the words of RealPage’s own executives. Here are some examples:

RealPage says its software enables landlords to — and this is a direct quote — “driv[e] every possible opportunity to increase price even in the most downward trending or unexpected conditions.” But independent decision making by landlords — not RealPage — should determine rental prices.

RealPage encourages landlords to “[e]liminate concessions.” But competition — not RealPage — should determine whether a renter gets a free month of rent when signing a lease.

RealPage tells landlords that it would prefer “everybody succeeding versus essentially trying to compete against one another in a way that actually keeps the entire industry down.” But that’s not how free markets work. Competition among landlords — not RealPage — should determine prices for renters in our free market system.

When a landlord asked, “who are your competitors?” A RealPage executive responded: “Our revenue management solution does not have any true competitors.” But honest businesses should not have to break the law just to compete with RealPage and its monopoly.

These quotes are just the tip of the iceberg. There are many, many more examples in our extensive complaint, which spans over 100 pages.

The time has come to stop this illegal conduct.

I want to thank the Antitrust Division’s attorneys, paralegals, economists, data scientists and professional staff for making this lawsuit possible. Over nearly two years, they have worked nonstop, going document by document and line by line of code to understand RealPage and its anticompetitive scheme.

Together with our State partners, this team has proven that antitrust law enforcement can and will keep pace with changes in the technology of lawbreaking.

On the one hand, we used our traditional economic and investigative tools such as reviewing internal documents and taking deposition testimony.

On the other hand, we also used data science experts to interrogate the code so that we can understand how algorithms use sensitive information from landlords to recommend and set prices.

Our lawsuit demonstrates that modern-day wrongdoers cannot hide behind software algorithms and artificial intelligence to violate the law.

Throughout this investigation, we learned that the modern machinery of algorithms and AI can be even more effective than the smoke-filled rooms of the past.

You don’t need a PhD to know that algorithms can make coordination among competitors easier. Algorithms process far more information more rapidly than humans. The technical capabilities of software can enhance competitors’ ability to extract gains; tip the market in favor of monopolies; and undermine the competitive process.

While these modern technologies might have been unimaginable in 1890 when Congress passed the Sherman Act, Congress knew then what we know today. A restraint of trade is still a restraint of trade and monopolization is still monopolization.

The antitrust laws had something to say about it then and the antitrust laws have something to say about it now.  

And let me be clear: when companies use artificial intelligence to set artificially high prices, the antitrust laws have something to say about that too.

We are joined in sending that message by the Attorneys General and the terrific staffs from North Carolina, California, Colorado, Connecticut, Minnesota, Oregon, Tennessee and Washington.

We are honored to stand together to protect competition on behalf of American renters.  

Thank you. 

Source: United States Department of Justice Criminal Division

Remarks as Prepared for Delivered

Thank you, Mr. Attorney General.

Since the beginning of this administration, our approach to corporate misconduct across the Justice Department has been simple, straightforward, and relentless.

We identify the most serious wrongdoers, whether individuals or companies, and we focus our full energy on holding them accountable.

Today’s complaint against RealPage illustrates this strategy in action.

In this country, we’ve had laws for over a century that promote healthy competition.

Competition is the bedrock of our market economy — like how a strong foundation supports a house.

When that competition — that foundation — is undermined, the house stands on shaky ground, compromising its stability and the security of those who live there.

Today, we’re seeing this phenomenon play out in our nation’s rental housing market.

As alleged in our complaint, RealPage is using technology to undermine competition in the rental market and to harm consumers in the process.

By feeding sensitive data into a sophisticated algorithm, RealPage has found a modern way to violate a century-old law through systematic coordination of rental housing prices.

Healthy competition in the rental housing market requires two key ingredients.

The market must be dictated by open and honest competition among landlords.

And, renters must be able to negotiate prices with landlords — without the specter of collusion — to arrive at a fair deal for all involved.

But RealPage has shut away those ingredients, changed the locks, and thrown away the keys

And they’ve done that by selling software to landlords – software that operates off an algorithm to drive pricing – among other things.  

As alleged:

• RealPage’s systems rely on confidential and sensitive pricing data from landlords.
• They run this data through a machine learning model to set prices, then recommend them to landlords.
• And through this process, they enable landlords to avoid negotiating with tenants, without concern they’ll be undercut by competitors.

That’s collusion — and that’s against the law.

Let’s be clear, algorithms don’t operate in a law-free zone. 

After all, humans create them.

Our laws will always apply to the people behind the machines and the companies behind the algorithms.

This idea is core to how the Department is addressing technology-enabled crimes — particularly those that employ artificial intelligence and machine learning.

Because while the law governing AI is sure to develop over time, our existing laws and enduring legal tools — including the antitrust laws — already offer a firm foundation.

Make no mistake:

• Training a machine to break the law is still breaking the law.
• Price coordination using AI is still price coordination.
• And monopolization advanced by an algorithm is still monopolization.

I want to thank the women and men of the Antitrust Division — and Assistant Attorney General Jonathan Kanter for his leadership and their hard work on this matter; I want to thank them for promoting healthy competition and fairness across this critical market; and for protecting consumers, renters and landlords alike.

No company or individual is above the law — and today’s action, once again, makes that crystal clear.

With that, I’d like to invite up Acting Associate Attorney General Mizer.