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Former New York State Supreme Court Justice Thomas J. Spargo Sentenced for Attempted Extortion and Bribery

Former New York State Supreme Court Justice Thomas J. Spargo was sentenced today by U.S. District Judge Gary Sharpe in Albany, N.Y. to 27 months in prison followed by two years of supervised release for attempted extortion and bribery, Assistant Attorney General Lanny A. Breuer of the Criminal Division and Special Agent in Charge John F. Pikus of the FBI’s Albany office announced.



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Duke Energy to Spend Approximately $93 Million to Resolve Clean Air Act Violations

“This important settlement resolves lengthy litigation on very favorable terms,” said Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division.



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Florida Man Pleads Guilty to Traveling to the Philippines for Sex Tourism

Donald Mathias of Davie, Fla., pleaded guilty today to engaging in sex tourism in the Philippines.



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Indiana Man to Spend 42 Months in Prison for Cross Burning

This is the fourth Indiana man in two months to be sentenced to prison time for burning a cross.



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Settlement Reached at Sutton Brook Disposal Area Superfund Site in Massachusetts

A settlement estimated worth more than $30 million will ensure that cleanup of the Sutton Brook Disposal Area Superfund Site in Tewksbury, Mass., will move forward, the Justice Department and U.S. Environmental Protection Agency and the Massachusetts Department of Environmental Protection announced today.



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Oklahoma Hospital Group Pays U.S. $13 Million to Settle False Claims Act Allegations

“The resolution of this matter yielded a substantial recovery for taxpayers, and it underscores our commitment to ensure that services reimbursable by federal health care programs are based on the best interests of patients rather than the personal financial interests of referring physicians,” said Tony West, Assistant Attorney General for the Department’s Civil Division.



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Visiting Physicians Association to Pay $9.5 Million to Resolve False Claims Act Allegations

Visiting Physicians Association, which is based in Farmington Hills, Mich., will pay the United States and the state of Michigan $9.5 million to settle allegations that the association violated the False Claims Act by submitting false claims to Medicare, TRICARE and the Michigan Medicaid program.



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Attorney General Appoints Gary Grindler Acting Deputy Attorney General

“Gary is a great asset to the Department, and I am pleased he has agreed to take on this responsibility,” Attorney General Eric Holder said.



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Chevron to Pay U.S. More Than $45 Million to Resolve Allegations of False Claims for Royalties Underpayment

Chevron Corporation, Texaco, Unocal Incorporated and their affiliates (the Chevron companies) have agreed to pay the United States $45,569,584.74, to resolve claims that they violated the False Claims Act by knowingly underpaying royalties owed on natural gas produced from federal and Indian leases.



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Justice Department to Participate in Community Integration Case in North Carolina

The Department filed a brief as a friend of the court in Marlo M., et al. v. Cansler, et al., a community integration case in federal court for the Eastern District of North Carolina.



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Ohio Attorney Charged with Tax Fraud, Obstruction of Justice for Scheme to Hide Income and Assets Through Trusts and in Foreign Bank Account

Aristotle R. Matsa, an attorney in Columbus, Ohio, was charged with tax offenses, obstruction of justice and additional charges in a 20-count indictment unsealed today.



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Nigerian National Charged with Attempting to Destroy Northwest Airlines Aircraft

A 23-year-old Nigerian man was charged in a federal criminal complaint today with attempting to destroy a Northwest Airlines aircraft on its final approach to Detroit Metropolitan Airport on Christmas Day, and with placing a destructive device on the aircraft.



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Michigan Health Care Provider to Pay United States $669,413 to Settle False Claims Allegations

“As this case demonstrates, we are committed to vigorously pursuing those who defraud Medicare.”



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Colorado-based Spectranetics Corporation to Pay $5 Million to Resolve Allegations Relating to Its Medical Devices

“The Department of Justice will be vigilant in pursuing cases against medical device companies that break the law and defraud taxpayers,” said Tony West, Assistant Attorney General for the Justice Department’s Civil Division.



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UTStarcom Inc. Agrees to Pay $1.5 Million Penalty for Acts of Foreign Bribery in China

UTStarcom Inc. (UTSI) has entered into an agreement with the Department of Justice, agreeing to pay a $1.5 million fine for violations of the Foreign Corrupt Practices Act by providing travel and other things of value to foreign officials, specifically employees at state-owned telecommunications firms in the People’s Republic of China.



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Minnesota Hospital to Pay U.S. to Resolve Allegations of False Claims Involving Unnecessary Admissions

Wheaton Community Hospital, the City of Wheaton, Minn. and Dr. Stanley Gallagher (collectively WCH) have agreed to pay $846,461 to settle allegations that their hospital admission practices violated the False Claims Act.



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Massachusetts Man Sentenced to Five Years in Prison on Child Pornography Charges

Johnny Pires, 24, was sentenced today to five years in prison and five years of supervised release following his prison term for attempting to receive and possessing child pornography. Pires was also ordered to register as a sex offender.



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Justice Department Files Six Lawsuits to Enjoin Preparation of Fraudulent Federal Income Tax Returns

The United States this week filed five civil injunction lawsuits in Detroit, Cincinnati and Chicago against several individuals and their tax preparation services.



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Former Military Official Sentenced to Three Years in Prison for Participation in Bribery Conspiracy Involving $206 Million Telecommunications Contract in Korea

A former Army and Air Force Exchange Service (AAFES) official was sentenced today in U.S. District Court in Columbus, Ga., to three years in prison for his role in a bribery conspiracy involving a multi-million dollar telecommunications contract, and for not reporting the bribes he accepted on his income tax returns.



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Two Individuals Charged with Murder and Other Offenses Related to Shooting Death of Two Afghan Nationals in Kabul, Afghanistan

Justin Cannon, 27, of Corpus Christi, Texas, and Christopher Drotleff, 29, of Virginia Beach, Va., have been charged with crimes including second-degree murder, attempted murder and firearms offenses while working as contractors for the U.S. Department of Defense in Afghanistan. Cannon and Drotleff were charged under the Military Extraterritorial Jurisdiction Act (MEJA).



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Justice Department Files Lawsuit Alleging New Jersey’s Written Civil Service Examination for Promotion to Police Sergeant Discriminates Against African-Americans and Hispanics

The Department filed a lawsuit against the state of New Jersey and the New Jersey Civil Service Commission alleging a pattern or practice of employment discrimination against African-Americans and Hispanics, in violation of Title VII of the Civil Rights Act of 1964



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Justice Department Reaches Agreement with New York City to Correct Conditions at Kings County Hospital Center

The Department’s Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of New York have entered into an agreement with New York City to correct conditions of confinement at the Kings County Hospital Center’s (KCHC) psychiatric emergency room and psychiatric in-patient units located in Brooklyn, N.Y.



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Former Vice President of Texas Company Pleads Guilty to Environmental Crime

Michael Sayklay, the former vice president of Economy Cash & Carry Inc., a Texas-based grocery wholesaler, pleaded guilty today in federal court in El Paso, Texas, to a criminal violation of the Plant Protection Act.



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Attorney General Eric Holder at the Forum Club of the Palm Beaches

"We cannot ignore the fact that protecting our economy is an essential component of our larger security goals," said Attorney General Holder.




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Florida Man Sentenced to 90 Months in Prison for Extortion, Making Interstate Threats, Computer Fraud and Identity Theft

A Florida man has been sentenced to 90 months in prison for making e-mail and telephone threats, including threats intended to cause a candidate for statewide office in Florida to drop out of an election.



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Associate Attorney General Perrelli Hosts Town Hall Commemorating National Stalking Awareness Month

“This year cannot just be an anniversary – it must be a call to action.  The Department is marking this year with our renewed dedication and a recommitment to ending violence against women.”



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Attorney General Announces Significant Reforms to Improve Public Safety in Indian Country

The new directive is part of a larger Justice Department initiative to create better communication and coordination to fight crime and promote justice in Indian Country.



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Justice Department to Participate in Zoning Disability Case in Richmond Township, Michigan

The department filed a brief as a friend of the court in Sacred Heart Rehabilitation Center Inc. v. Richmond Township and Richmond Township Planning Commission, a civil rights case regarding the expansion of an addictive disorders treatment facility in Macomb County, Mich.



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Associate Attorney General Tom Perrelli Speaks at Stalking Awareness Town Hall

"We want to use this year not merely to commemorate an anniversary, but to recommit ourselves to ending violence against women. Our government and this Department have a responsibility to speak out and act on issues of violence against women."




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North Carolina Ginseng Dealer Sentenced to Prison for Illegal Export of Ginseng Valued Over $100,000

Howard William Ledford of Hayesville, N.C., was sentenced today in federal court in the Western District of North Carolina to serve one year in prison for illegally selling and transporting wild American ginseng into Georgia.



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Purchasing Official at a New York City Hospital Pleads Guilty to Bid Rigging

Freddy Deoliveira, who held various supervisory positions at the New York Presbyterian Hospital, pleaded guilty in U.S. District Court in Manhattan.



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Phoenix Asphalt Paver Sentenced to Prison for Tax Evasion

John D. Stacey of Mesa, Ariz., was sentenced by U.S. District Judge Neil V. Wake to 77 months in prison and ordered to pay $1.5 million dollars in restitution on Jan. 7, 2010.



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Member of the Cherokee Nation Sentenced to Prison for Transporting and Selling Bear Parts

Clement Calhoun, a member of the Cherokee Nation in North Carolina, was sentenced in federal court in the Western District of North Carolina, to six months in prison for illegally transporting and selling 51 bear gall bladders.



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Deputy Attorney General David W. Ogden Announces Francey Hakes as National Coordinator for Child Exploitation Prevention and Interdiction

The national coordinator is charged with formulating and implementing a national strategy to combat child exploitation, and with submitting the strategy and relevant reports to Congress.



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Justice Department Asks Federal Court to Bar Nationwide Frivolous Lawsuit Scheme

The Department has sued George K. Pragovich of Clarksville, Tenn., to stop him from promoting an alleged nationwide scheme involving hundreds of frivolous lawsuits filed against the United States.



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Two Cincinnati Dentists Plead Guilty to Conspiracy, Tax Evasion on Eve of Trial

Bradley C. Brennecke, a resident of Pleasant Plain, Ohio, and Bruce A. Mrusek, a resident of Maineville, Ohio, pleaded guilty late Tuesday to conspiracy and tax evasion charges before District Court Judge Michael R. Barrett in Cincinnati.



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Two Former Executives of Indicted Video Relay Services Company Plead Guilty to Defrauding FCC Program

Anthony Mowl, the former assistant vice president of business development for Viable Communications Inc. (Viable), and Donald Tropp, the former human resources manager for Viable, pleaded guilty today to engaging in a conspiracy to defraud the Federal Communications Commission’s (FCC) Video Relay Service (VRS) program of more than $2.5 million, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division.



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Justice Department Sues to Close Georgia Tax Return Preparer

The United States has asked a federal court in Dublin, Ga., to permanently bar James J. King from preparing federal income tax returns for others.



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Two Brothers Plead Guilty in Conspiracy to Hold Thai Workers in Forced Labor in Hawaii

Defendants Alec Sou and Mike Sou, co-owners of Aloun Farm, pleaded guilty on Jan.13, 2010, in federal district court in Honolulu, to conspiring to commit forced labor.



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Arkansas Man Pleads Guilty to Conspiring to Commit Murders of African-Americans

Paul Schlesselman pleaded guilty to one count of conspiracy, one count of threatening to kill and inflict bodily harm upon a presidential candidate, and one count of possessing a firearm in furtherance of a crime of violence.



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Attorney General Eric Holder Testifies Before the Financial Crisis Inquiry Commission

"We must be vigilant in our efforts to safeguard and strengthen the American economy. Our efforts to fight economic crime are a vital component of our broader strategy - a strategy that seeks to foster confidence in our financial system, integrity in our markets, and prosperity for the American people."




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Andrew Goldsmith Appointed as National Coordinator of Criminal Discovery Initiatives

The position was established as part of the Department’s ongoing efforts, initiated last year at the direction of the Attorney General, to review and improve its criminal discovery and case management policies and procedures.



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General Manager of Houston Medical Supply Company Pleads Guilty to Conspiracy to Commit Health Care Fraud

Manual Deluna has pleaded guilty to one count of conspiracy to commit health care fraud in connection with his role in Memorial Medical Supply, a Houston durable medical equipment company.



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Statement by Attorney General Eric Holder on Martin Luther King Day

“Each year, Martin Luther King Day provides an opportunity for all Americans to rededicate ourselves to Dr. King’s dream of racial, social, and economic justice," said Attorney General Holder.



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Former Owner of New Hampshire Direct Mail Advertising Printing Company Agrees to Plead Guilty to Tax Conspiracy

As a part of the tax conspiracy, Ronald Boyarsky assisted in paying approximately $2.6 million in commissions earned by a printing services broker to third parties, so that the broker and his companies could avoid paying taxes on the income they earned.



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Justice Department Settles Lawsuit Against Milwaukee to Enforce the Employment Rights of Air National Guard Member

The Department has reached a settlement in its lawsuit against the city of Milwaukee on behalf of Michael Crivello, a detective in the Milwaukee Police Department, alleging the city violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA).



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National Dental Management Company Pays $24 Million to Resolve Fraud Allegations

The United States alleged that FORBA was liable for causing the submission of claims for reimbursement for a wide range of dental services provided to low-income children that were either medically unnecessary or performed in a manner that failed to meet professionally-recognized standards of care.



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General Reinsurance Corporation Enters into Agreement Resolving Its Role in Fraudulent Reinsurance Transaction with AIG

General Re has admitted that its most senior management engaged in a scheme to falsely inflate AIG’s reported loss reserves, a key indicator of financial health to insurance industry analysts and investors.



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CEO of Seafood Importer Pleads Guilty to Importing and Selling Falsely Labeled Fish from Vietnam

The chief executive officer of Sterling Seafood Corporation located in Cresskill, N.J., pleaded guilty to importing falsely labeled fish from Vietnam and evading over $60 million in federal tariffs, as well as selling over $500,000 in similarly misbranded fish purchased from another importer in the United States.



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Southern California Pipeline Firm to Pay $1.3 Million to Resolve Pyramid Lake Oil Discharges

Pacific Pipeline Systems LLP, a Long Beach, Calif.-based oil transport company, has agreed to pay a $1.3 million civil penalty and discontinue the use of a section of pipeline through an unstable section of mountains to resolve a Clean Water Act violation.



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