New York Paralegal Blog

WASHINGTON – JP Morgan Chase & Co. has entered into an agreement with the Department of Justice to resolve the company’s role in anticompetitive activity in the municipal bond investments market and has agreed to pay a total of $228 million in restitution, penalties and disgorgement to federal and state agencies, the Department of Justice announced today.   As part of its agreement with the department, JPMorgan admits, acknowledges and accepts responsibility for illegal, anticompetitive conduct by its former employees.   According to the non-prosecution agreement, from 2001 through 2006, certain former JPMorgan employees at its municipal derivatives desk, entered into unlawful agreements to manipulate the bidding process and rig bids on municipal investment and related contracts. These contracts were used to invest the proceeds of, or manage the risks associated with, bond issuances by municipalities and other public entities.   “By entering into i...

WASHINGTON – The co-founder of a criminal enterprise known as the “Tran Organization” pleaded guilty today in San Diego to conspiring to participate in the organization’s scheme to cheat casinos across the country out of millions of dollars, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Laura E. Duffy for the Southern District of California. Van Thu Tran, 45, entered her guilty plea before U.S. Magistrate Judge Anthony J. Battaglia, subject to final acceptance of the plea by U.S. District Judge John A. Houston.

WASHINGTON –Six officers with the New Orleans Police Department (NOPD) were charged today in connection with the federal investigation of a police-involved shooting on the Danziger Bridge in the days after Hurricane Katrina, the Justice Department announced today. The incident resulted in the death of two civilians and the wounding of four others. The indictment charges four officers – Kenneth Bowen, Robert Gisevius, Robert Faulcon and Anthony Villavaso – in connection with the shootings, and charges those four officers and two supervisors – Arthur “Archie” Kaufman and Gerard Dugue – with helping to obstruct justice during the subsequent investigations.

WASHINGTON- Albert Gonzalez, 28, of Miami, pleaded guilty today to conspiring to hack into computer networks supporting major American retail and financial organizations, and to steal data relating to tens of millions of credit and debit cards, announced Assistant Attorney General of the Criminal Division Lanny A. Breuer, U.S. Attorney for the District of New Jersey Paul J. Fishman, U.S. Attorney for the District of Massachusetts Carmen Milagros Ortiz and Director of the U.S. Secret Service Mark Sullivan. Gonzalez, aka "segvec," "soupnazi" and "j4guar17," pleaded guilty to two counts of conspiracy to gain unauthorized access to the payment card networks operated by, among others, Heartland Payment Systems, a New Jersey-based card processor; 7-Eleven, a Texas-based nationwide convenience store chain; and Hannaford Brothers Co. Inc., a Maine-based supermarket chain. The plea was entered in federal court in Boston before U.S. District Court Judge Douglas P....

WASHINGTON - The University of Medicine and Dentistry of New Jersey (UMDNJ) has agreed to pay the government $8.3 million to settle allegations that it illegally paid kickbacks to cardiologists and caused the submission of false claims to Medicare, the Justice Department announced today. UMDNJ’s University Hospital, which is located in Newark, N.J., is a state-licensed Level 1 Trauma Center. To maintain funding and accreditation from the state, University Hospital was dependent on the annual performance of a certain number of cardiac procedures, including cardiac catheterizations and cardiothoracic surgery.

Settlement Ensures Equal Lending Services to African-Americans WASHINGTON – First United Security Bank of Thomasville, Ala., will invest more than $600,000, open a new branch in an African-American neighborhood in west central Alabama and take other steps as part of a settlement to resolve allegations that it engaged in a pattern of discrimination on the basis of race, the Justice Department announced. The settlement was filed today in conjunction with the department’s complaint in federal court in Mobile, Ala. The complaint alleges that the bank charged African-American borrowers higher rates than similarly-situated white borrowers on home mortgage-related loans. The complaint also alleges that the bank has unlawfully failed to provide its lending products and services on an equal basis to majority African-American areas in west central Alabama, a practice known as redlining. The lawsuit is brought under the federal Fair Housing Act and the Equal Credit Opportunity Act.

WASHINGTON – The Justice Department announced that it has filed a lawsuit today against the commonwealth of Massachusetts and its Department of Corrections (MDOC), alleging that they engaged in a pattern or practice of discrimination against female applicants for entry-level correctional officer positions, in violation of Title VII of the Civil Rights Act of 1964, as amended. Title VII is a federal statute that prohibits employment discrimination on the basis of race, color, sex, national origin and religion. The department’s complaint, filed in federal court in Boston, alleges that Massachusetts and the MDOC are using an unlawful physical abilities test (PAT) that disproportionately screens out female applicants for entry-level correctional officer jobs, resulting in a significant disparate impact against female applicants. According to the complaint, in 2007 and 2008, female applicants for the entry-level jobs of correctional officer and correctional program officer passed the PAT at...

WASHINGTON – Joseph Hirko, former co-chief executive officer of Enron Broadband Services (EBS), Enron’s failed telecommunications business, was sentenced today to 16 months in prison, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division. In addition to the prison term, U.S. District Court Judge Vanessa Gilmore ordered Hirko, 53, of Portland, Ore., to forfeit approximately $7 million in restitution to victims through the U.S. Securities and Exchange Commission’s Enron Fair Fund, in accordance with the terms of the plea agreement. Hirko pleaded guilty on Oct. 14, 2008, in U.S. District Court in Houston to one count of wire fraud charged in a superseding indictment.

WASHINGTON — The Department of Justice today announced that three detainees have been transferred from the detention facility at Guantanamo Bay to the control of the governments of Ireland and Yemen. As directed by the President’s Jan. 22, 2009 Executive Order, the interagency Guantanamo Review Task Force conducted a comprehensive review of each of these cases. As a result of that review, these detainees were approved for transfer from Guantanamo Bay. In accordance with Congressionally-mandated reporting requirements, the Administration informed Congress of its intent to transfer each of these detainees at least 15 days before their transfer.

A Dutch aviation services company, its director and sales manager pleaded guilty today in the District of Columbia to federal charges related to a conspiracy to illegally export aircraft components and other items from the United States to entities in Iran via the Netherlands, the United Arab Emirates and Cyprus. The announcement was made by David Kris, Assistant Attorney General for National Security; Channing D. Phillips, Acting U.S. Attorney for the District of Columbia; and Kevin Delli-Colli, Acting Assistant Secretary of Commerce for Export Enforcement, and Sharon E. Woods, Director of the Defense Criminal Investigative Service. The investigation was conducted by agents from the Department of Commerce’s Office of Export Enforcement, with assistance from the Defense Criminal Investigative Service (DCIS), the Department of Homeland Security’s U.S. Immigration and Customs Enforcement (ICE), and the Federal Bureau of Investigation (FBI).

Hosam Maher Husein Smadi, 19, has been arrested and charged in a federal criminal complaint with attempting to use a weapon of mass destruction. Smadi, who was under continuous surveillance by the FBI, was arrested today near Fountain Place, a 60-story glass office tower located at 1445 Ross Avenue in downtown Dallas, after he placed an inert/inactive car bomb at the location. Smadi, a Jordanian citizen in the U.S. illegally, lived and worked in Italy, Texas. He has repeatedly espoused his desire to commit violent Jihad and has been the focus of an undercover FBI investigation. "The highest priority of the FBI and the Department of Justice remains the prevention of another terrorist attack within the United States," said U.S. Attorney of the Northern District of Texas James T. Jacks. "In that effort, it is the job of the FBI to locate and identify individuals intent upon carrying out any type of attack upon this country and its citizens/residents. Whether as...

Two individuals in Colorado and one individual in New York have been arrested on charges of making false statements to federal agents in an ongoing terror investigation. FBI agents in Colorado arrested Najibullah Zazi, 24, a resident of Aurora, Colo., and legal permanent resident from Afghanistan, and his father Mohammed Wali Zazi, 53, a resident of Aurora and a naturalized U.S. citizen from Afghanistan. In addition, FBI agents in New York arrested Ahmad Wais Afzali, 37, a resident of Flushing, N.Y., and a legal permanent resident from Afghanistan. Each of the defendants has been charged by criminal complaint with knowingly and willfully making false statements to the FBI in a matter involving international and domestic terrorism. Najibullah Zazi and Mohammed Zazi are scheduled to make their initial appearances on Monday in federal court in the District of Colorado. Ahmad Afzali is scheduled to make his initial appearance on Monday in federal court in the Eastern District of New Yo...

The Department of Justice today advised the U.S. District Court for the Southern District of New York that while it should not accept the class action settlement in The Authors Guild Inc. et al . v. Google Inc. as proposed due to concerns of the United States regarding class action, copyright and antitrust law, the parties should be encouraged to continue their productive discussions to address those concerns. In its statement of interest filed with the court, the Department stated: "Given the parties’ express commitment to ongoing discussions to address concerns already raised and the possibility that such discussions could lead to a settlement agreement that could legally be approved by the Court, the public interest would best be served by direction from the Court encouraging the continuation of those discussions between the parties and, if the Court so chooses, by some direction as to those aspects of the Proposed Settlement that need to be improved. Because a properly struc...

Almighty Latin King and Queen Nation (ALKQN) member Marie Chavez, aka "Shorty," wife of an alleged ALKQN leader, Jose Nava, aka "Chino," was sentenced today, while his brother Luis Nava, aka "Flaco," re-entered a guilty plea to a superseding indictment that charged them and 14 others with various offenses related to alleged narcotics and weapons trafficking, as well as violent activities throughout Texas. Marie Chavez, 28, of Lubbock, Texas, was sentenced today to 188 months in prison by U.S. District Judge Sam R. Cummings in U.S. District Court in Lubbock. Chavez pleaded guilty on June 15, 2009, to the superseding indictment, which charged her with one count of conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine and 100 kilograms or more of marijuana, as well as one count of possession with intent to distribute 500 grams or more of cocaine. Chavez has been in custody since her arrest in December 2008.

James M. Davis, 60, the former chief financial officer of Houston-based Stanford Financial Group (SFG), pleaded guilty today to fraud and obstruction charges related to a $7 billion scheme to defraud investors. Davis was charged in a criminal information, filed on June 18, 2009, with conspiracy to commit mail, wire and securities fraud; mail fraud; and conspiracy to obstruct a U.S. Securities and Exchange Commission (SEC) investigation. The criminal information also seeks forfeiture of up to $1 billion in fraud proceeds. According to the plea documents, Davis admitted that as part of the scheme, he and his co-conspirators defrauded investors who purchased approximately $7 billion in certificates of deposit (CDs) administered by Stanford International Bank Ltd. (SIBL), an offshore bank located on the island of Antigua. Davis further admitted that he and his co-conspirators misused and misappropriated most of those investor assets, including by diverting more than $1.6 billion into u...

WASHINGTON — A former sand and gravel subcontractor was sentenced today to serve five years in prison and to pay a $5,000 criminal fine by U.S. District Judge Carl J. Barbier after being convicted by a federal jury of conspiracy and bribery in connection with a $16 million hurricane protection project for the reconstruction a New Orleans levee, the Department of Justice announced today. The project involved the Lake Cataouatche Levee, which is south of New Orleans. Durwanda Elizabeth Morgan Heinrich was found guilty on April 1, 2009, of conspiracy and bribery. The conduct centered on Heinrich’s offer to pay Kern Carver Bernard Wilson and Raul Miranda, former contract employees of the U.S. Army Corps of Engineers in exchange for their attempt to steer a dirt, sand and gravel subcontract on the levee project to her. Heinrich planned to use part of the proceeds from the subcontract to pay the bribes. A jury found both Heinrich and Wilson guilty in the charged conspiracy and bribery. The...

A sixth individual pleaded guilty today to illegally accessing numerous confidential passport application files. Karal Busch, 28, of District Heights, Md., pleaded guilty before U.S. Magistrate Judge Alan Kay in the District of Columbia to a one-count criminal information charging her with unauthorized computer access. Busch is scheduled to be sentenced on Dec. 15, 2009. According to court documents, Busch worked fulltime for the State Department as a citizens services specialist in the Office of Children’s Issues from June 2003 through July 2006. In pleading guilty, Busch admitted that she had access to official State Department computer databases in the regular course of her employment, including the Passport Information Electronic Records System (PIERS), which contains all imaged passport applications dating back to 1994. The imaged passport applications on PIERS contain, among other things, a photograph of the passport applicant as well as certain personal information including t...

WASHINGTON – Japanese electronics manufacturer Epson Imaging Devices Corporation (Epson) agreed to plead guilty and pay a $26 million criminal fine for its role in a conspiracy to fix prices in the sale of Thin Film Transistor-Liquid Crystal Display panels (TFT-LCD) sold to Motorola Inc., the Department of Justice announced today. According to a one-count felony charge filed today in U.S. District Court in San Francisco, Epson, a subsidiary of Seiko Epson Corporation, participated in a conspiracy to fix the prices of TFT-LCD panels sold to Motorola for use in Razr mobile phones from the fall of 2005 to the middle of 2006. According to the plea agreement, which is subject to court approval, Epson has agreed to cooperate with the Department’s ongoing antitrust investigation. TFT-LCD panels are used in computer monitors and notebooks, televisions, mobile phones and other electronic devices. In 2006, the worldwide market for TFT-LCD panels was approximately $70 billion. Epson, based in Jap...

The Department of Justice today announced that Mohammed Jawad, a native of Afghanistan, has been transferred from the detention facility at Guantanamo Bay to Afghanistan. On July 30, 2009, consistent with the U.S. government’s notice that it would no longer treat Jawad as detainable under the Authorization for Use of Military Force, a federal court ordered the U.S. government to release him from detention at Guantanamo Bay. On Aug. 6, 2009, in accordance with Congressionally-mandated reporting requirements, the administration informed Congress of its intent to transfer Jawad. Jawad’s transfer was carried out under an arrangement between the United States and the government of Afghanistan. The United States has coordinated closely with the government of Afghanistan to ensure the transfer takes place under appropriate security measures and will continue to consult with the Afghan government regarding Jawad. Since 2002, more than 540 detainees have departed Guantanamo for other countries ...

WASHINGTON - Donald Platten of Boca Raton, Fla., was convicted today of conspiracy, securities fraud and tax charges following a jury trial before Judge Donald Middlebrooks in West Palm Beach, Fla., the Justice Department and Internal Revenue Service (IRS) announced. In December 2008, Platten was indicted on 17 charges, including conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud and impeding the internal revenue laws. He was convicted on the conspiracy to commit securities fraud count, 6 of the 14 securities fraud counts, conspiracy to commit wire fraud and impeding the internal revenue laws. According to the indictment and evidence introduced at trial, Platten was the president of Harvard Learning Centers Inc., a Florida corporation also located in Boca Raton. Harvard Learning changed its name several times and claimed to be involved in several different business ventures. From 2004 to 2007, Platten caused Harvard Learning to issue stock to his w...