Accomplishments under the Leadership of Attorney General Eric Holder

 

On his first day as Attorney General, Eric Holder promised the Department's top priority — and its chief responsibility — would be protecting the security, rights and interests of the American people. Five years later, together with the extraordinary men and women who serve at the Department of Justice, that promise has been fulfilled and under Attorney General Holder the Department will continue its important work on behalf of all Americans.

Here you will find some of the Justice Department’s top accomplishments under the leadership of Attorney General Holder.

Terrorism and National Security | Violent Crime | Financial Fraud
Protecting Vulnerable Populations | Transparency | Protecting the Environment

Protecting the American People Against Terrorism and Other Threats to National Security

The Department of Justice has thwarted multiple terrorist plots against the United States. Since the beginning of 2009, the Justice Department has thwarted multiple terrorist plots against the United States; convicted and incarcerated scores of individuals on terrorism-related charges; and gleaned critical intelligence from and about terrorists through the criminal justice system.

Significant accomplishments include:

  • In May 2014, the Department of Justice announced that a grand jury in the Western District of Pennsylvania (WDPA) had indicted five Chinese military hackers for computer hacking, economic espionage and other offenses directed at six American victims in the U.S. nuclear power, metals and solar products.
  • In April 2014, the Department of Justice announced that Li Fangwei, also known as "Karl Lee," had been charged with, among other things, violating the International Emergency Economic Powers Act (IEEPA) for his use of United States-based financial institutions to engage in millions of dollars of U.S. dollar transactions in violation of economic sanctions that prohibited such financial transactions. Sanctions previously had been imposed on Lee because of his role in Iranian Weapons Proliferation activities.
  • In March 2014, in the first ever federal jury conviction on charges brought under the Economic Espionage Act of 1996, a jury found Walter Liew, his company USA Performance Technology Inc. (USAPTI), and Robert Maegerle guilty of economic espionage, theft of trade secrets, bankruptcy fraud, tax evasion, and obstruction of justice for their roles in a long-running effort to obtain U.S. trade secrets for the benefit of companies controlled by the government of the People's Republic of China (PRC). In July 2014, Walter Liew was sentenced to 180 months' imprisonment for his actions.
  • In December 2013, Ming Suan Zhang, a Chinese citizen, was sentenced to 57 months in prison for attempting to export thousands of pounds of aerospace-grade, export-controlled carbon fiber worth over $4 million from the United States to China. Such fiber can be used to manufacture fighter jets and other munitions.
  • In July 2013, the Justice Department announced that Ahmed Muse Salad, Abukar Osman Beyle and Shani Nurani Shiekh Abrar, charged with multiple counts of piracy, hostage taking and violence against maritime navigation, were each sentenced to serve life in prison for their criminal conduct. The defendants were involved in the hijacking of an American vessel sailing in the Indian Ocean and the resulting deaths of four American citizens on board.
  • In May 2013, the Justice Department announced the sentencing of several al Shabaab defendants for their roles in providing material support to terrorists and obstructing the FBI's investigation. These prosecutions were the result of the FBI's "Operation Rhino." For example, Mahamud Said Omar was sentenced to serve 20 years in prison for providing material support to al Shabaab and conspiracy to kill or maim overseas. Omer Abdi Mohamed was also sentenced to serve 10 years in prison for his role in providing material support to al Shabaab.
  • In May 2013, the Department ended the decades-long illicit trade activities of Hsien Tai Tsai, also known as "Alex Tsai," an OFAC designated proliferator of weapons of mass destruction and supplier of advanced weapons machinery to North Korea, when he was arrested along with his son, Yueh-Hsun Tsai, also known as "Gary Tsai."
  • In May 2013, the Justice Department announced the sentencing of Amina Farah Ali and Hawo Mohamed Hassan to serve 20 years and 10 years in prison, respectively, for their roles in fundraising activities on behalf of al Shabaab under the pretense that monies were for the poor and needy.
  • In February 2013, the Justice Department announced the sentencing of Basaaly Saeed Moalin, Mohamed Mohamud, Ahmed Nasir Taal Ail Mohamud and Issa Doreh for providing material support of al Shabaab in the form of housing for terrorists in Somalia. They were also found guilty of conspiracy to launder monetary instruments. Moalin was sentenced to serve 18 years' in prison and 3 years of supervised release and Mohamud was sentenced to serve 13 years' in prison and 3 years of supervised release. Ahmed Nasir Taal Ail Mohamud and Issa Doreh are awaiting sentencing.
  • In 2013, the Justice Department announced that Ahmed Warsame, a former senior al-Shabaab commander and emissary to al-Qaeda in the Arabian Peninsula, had pleaded guilty in 2011 to all counts of a terrorism indictment against him.
  • In 2013, David Coleman Headley, who admitted to his role in planning the deadly terrorist attacks in Mumbai, India, and later plotting a separate terrorist attack in Denmark, was sentenced to 35 years in prison after cooperating extensively with the government.
  • In 2013, Manssor Arbabsiar was sentenced to 25 years in prison for his role in a plot approved by members of the Iranian military to assassinate the Saudi Arabian Ambassador to the United States while the Ambassador was in the United States.
  • In 2012, Adis Medunjanin was sentenced to life in prison for his role in an al-Qaeda plot to bomb the New York City subway system in September 2009, and to commit a terrorist attack by crashing his car on the Whitestone Expressway in an effort to kill himself and others.
  • In 2012, Umar Farouk Abdulmutallab, also known as the "underwear bomber," was sentenced to life in prison for his attempted bombing of Northwest Airlines flight 253 on Christmas Day 2009.
  • In 2012, Naser Jason Abdo was sentenced to life in prison in connection with his plot to carry out a bomb attack on soldiers from Fort Hood, Texas.
  • In 2012, Khalid Aldawsari was sentenced to life in prison for attempted use of a weapon of mass destruction stemming from his purchase of materials to make a bomb and his research of potential U.S. targets, including the Dallas home of former President George W. Bush, as well as hydroelectric dams and nuclear power plants.
  • In 2010, Faisal Shahzad was sentenced to life in prison for attempting to detonate a car bomb in New York City's Times Square.

The Department of Justice has successfully executed ground-breaking counter intelligence operations. 

Since 2009, the Department has successfully dismantled several major espionage networks including:

  • In 2013, Bryan Underwood, a former guard at a U.S. Consulate under construction in China, was sentenced to nine years in prison in connection with his efforts to sell classified photographs and information about the U.S. Consulate to China.
  • In 2012, Stewart Nozette, a former White House National Space Council member, was sentenced to 13 years in prison after pleading guilty to one count of attempted espionage.
  • In 2010, in collaboration with partners across the government, the Department dismantled a network of Russian agents that had been operating clandestinely in the U.S. for years. The successful prosecution, exposure and removal of these individuals from the U.S. represented one of the most successful counterintelligence operations in modern U.S. history.
  • In 2010, Noshir Gowadia, a former B-2 bomber engineer, was convicted on numerous criminal charges related to helping China design a stealthy cruise missile and was later sentenced to 32 years in prison.
  • In 2011, Glenn Shriver, a one-time CIA applicant, was sentenced to serve 48 months in prison for conspiring to provide classified information to Chinese intelligence officers.
  • In 2009, Walter Myers, a former State Department official, pleaded guilty in connection with a nearly 30-year conspiracy to provide classified information to Cuban intelligence agents and was later sentenced to life in prison. His wife, Gwendolyn Myers, also pleaded guilty and was sentenced to 81 months in prison.

The Department of Justice has prevented U.S. military and strategic technologies from falling into the wrong hands. In recent years, the Department has increased its multi-agency efforts to counter the ever-growing threat posed by the illegal foreign acquisition of controlled U.S. military and strategic technologies. These efforts have resulted in hundreds of investigations, indictments and arrests, as well numerous successful extraditions and the disruption of major international procurement networks, particularly those seeking U.S. munitions and sensitive technology for Iran and China. In recent years, roughly a third of the major export and embargo-related criminal prosecutions have involved the attempted transfer of controlled U.S. technology to Iran or China.

  • In 2011, Department efforts disrupted a network procuring U.S. components for illegal export to Iran, many of which later ended up in Improvised Explosive Devices in Iraq.
  • In 2012, a Canadian subsidiary of a major U.S. defense contractor pleaded guilty to criminal charges for exporting U.S.-origin military software to China for use in the development of China’s first modern military attack helicopter.
  • In 2012, the Department disrupted an international network conspiring to illegally export to Iran U.S.-origin materials for the construction of gas centrifuges to enrich uranium.
  • In 2012, the Department disrupted a Russian procurement network in the United States that was illegally exporting U.S. microelectronics to Russian military and intelligence agencies.

The Department of Justice has continued to identify and disrupt Narco-terrorist networks. Since 2009, the Department has continued to combat drug trafficking by those who use the profits to fund terrorist activities with a particular focus in Afghanistan and Pakistan.

Examples include:

  • In December 2009, three Al Qaeda associates were arrested in Ghana for conspiracy to commit acts of narco-terrorism and conspiracy to provide material support to a foreign terrorist organization. This arrest marked the first time that associates of Al Qaeda were charged with narco-terrorism offenses.
  • The Department leads the Afghanistan Threat Finance Center, an interagency effort to identify, disrupt and interdict the sources of funding for insurgent and terrorist organizations operating in Afghanistan.
  • The Department conducted a successful investigation that led to the arrest, extradition and conviction of Viktor Bout – one of the world's most notorious arms traffickers – for conspiring to sell weapons, including surface-to-air missile systems and armor piercing rocket launchers, to the Revolutionary Armed Forces of Colombia (FARC), a designated terrorist organization.
  • In April 2013, the Drug Enforcement Administration (DEA) led an operation targeting Guinea Bissau's top military official, Antonio Indjai, and four of his co-conspirators. This criminal network conspired to provide aid to FARC by storing FARC-owned cocaine in West Africa and conspired to provide surface-to-air missiles to protect FARC cocaine processing operations in Colombia against U.S. military forces. In addition, they conspired to traffic hige Indjai was one of the main leaders in the April 2012 coup d'etat in Guinea Bissau. DEA's operation led to their arrests in a West African country and they will face justice in the United States.
  • DEA's global presence allowed us to infiltrate a major international criminal group led by a former U.S. military member who oversaw a contract murder-for-hire network. Each of the three individuals arrested September 2012 and transferred to the United States had military experience either here or abroad. In addition to the murder-for-hire contract work they oversaw, these individuals conspired to import cocaine into the United States; conspired to murder a DEA agent and a person assisting a law enforcement agent; conspired to kill a person to prevent communications to law enforcement agents; conspired to possess a firearm in furtherance of a crime of violence; and conspired to distribute cocaine on board an aircraft.
  • In November 2013, DEA and foreign counterparts arrested Dino Bouterse, a citizen of Suriname who was charged with attempting to provide material support and resources to Hezbollah. Hezbollah has long been connected to drug trafficking and money laundering. Bouterse is also the son of the current President of Suriname and was also previously charged with cocaine importation into the United States and brandishing a rocket launcher. Bouterse used his position to assist individuals he believed were members of Hezbollah. In exchange for a multimillion-dollar pay-off, Bouterse agreed to allow large numbers of purported Hezbollah operatives to use Suriname as a permanent base for, among other things, attacks on American targets. In furtherance of his efforts to assist Hezbollah, Bouterse supplied a false Surinamese passport for the purpose of making clandestine travel easier, including travel to the United States; began determining which heavy weapons he might provide to Hezbollah; and indicated how Hezbollah operatives, supplied with a Surinamese cover story, might enter the United States.

Last Updated: August 2014

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Protecting the American People From Violent and Other Crimes

Violent crime rates have steadily declined in the last four years as the Department has successfully prosecuted national, international gangs and traditional organized crime groups. The Department has aggressively pursued fighting traditional organized crime groups like La Cosa Nostra (LCN) while addressing evolving and emerging threats – from street gangs to transnational organized crime groups – which continue to pose significant threats to the safety and security of our communities.

 

  • In May of 2013, the Department announced that three members of the Los Zetas Cartel – Julian Zapata Espinoza, aka “Piolin,” Ruben Dario Venegas Rivera, aka “Catracho,” and Jose Ismael Nava Villagran, aka “Cacho,” – pleaded guilty to the murder of ICE Special Agent Jaime Zapata and the attempted murder of ICE Special Agent Victor Avila in Mexico. A fourth co-conspirator, Los Zetas member Francisco Carbajal Flores, aka “Dalmata,” pleaded guilty to racketeering charges and as an accessory after the fact to the murder and attempted murder of the ICE agents.
  • On July 7, 2014, a six-month trial in Camden, New Jersey culminated in the conviction of Nicodemo S. Scarfo, a member of the Lucchese crime family of La Cosa Nostra (LCN) and Salvatore Pelullo, an associate of the Lucchese and Philadelphia LCN families.  They were convicted of all the counts against them, including racketeering conspiracy and related offenses, as well as securities fraud, wire fraud, mail fraud, bank fraud, extortion, money laundering and obstruction of justice.  Two other defendants, William and John Maxwell, were also convicted for their role in taking over a Texas corporation so the LCN members and their cohorts could steal from the company and make lavish personal purchases.
  • On April 24, 2014, the Department announced that Arturo Gallegos Castrellon, a/k/a “Benny,” was sentenced to life in prison following his conviction after trial for racketeering conspiracy, murder in aid of racketeering, and narcotics trafficking.  Castrellon and 34 others were indicted in March 2011, having been charged as members and associates of Barrio Azteca, a violent, Juarez, Mexico transnational gang.  The defendants were charged with RICO crimes related to murder, attempted murder, conspiracy to murder persons in a foreign country,  narcotics trafficking, trafficking in stolen vehicles, kidnaping, obstruction of justice and money laundering.  Castrellon and others were charged with the March 13, 2010 murder in Juarez, Mexico of U.S. Consulate employee Leslie Enriquez, her husband Arthur Redelfs, and Jorge Salcido Ceniceros, the husband of another U.S. Consulate employee.  All three were ambushed and shot to death after leaving a child’s birthday party.  Of the 35 defendants charged, 26 were convicted, one committed suicide before the conclusion of his trial, and six are awaiting extradition. U.S. law enforcement officials are actively seeking to apprehend the two remaining fugitives in this case, including Eduardo Ravelo, an FBI Top Ten Most Wanted Fugitive.
  • Department prosecutors have vigorously prosecuted the most notorious national and international violent gangs operating in U.S. cities and along the Southwest border, including:
    • MS-13 in North Carolina, Maryland, Virginia, Georgia, Washington, D.C., Texas, New York and California;
    • Bloods in Nevada and Tennessee;
    • Latin Kings in Illinois, Texas, Maryland, North Carolina and Indiana.

The Department has successfully arrested and prosecuted large numbers of dangerous fugitives.

Since 2009, the Department has:

  • Arrested 28 fugitives that have been featured on the USMS 15 Most Wanted list.
  • Arrested more than 679,736 fugitives and cleared more than 1,122,805 felony warrants
  • Arrested 22,292 homicide suspects
  • Directed 16 anti-gang initiatives that led to the arrest of 2,902 gang members.
  • Arrested more than 3,230 international and foreign fugitives.
  • Extradited 5,036 fugitives to face justice
  • Arrested 65,980 fugitive sex offenders, closing 78,693 sex offender warrants
  • Initiated 17,707 Adam Walsh Act investigations
  • Recovered 454 missing children in coordination with the National Center for Missing and Exploited Children.

The Department is working to hold accountable those responsible for the Deepwater Horizon Disaster. The Department is committed to holding accountable those who violated the law in connection with the April 20, 2010, Deepwater Horizon Oil Spill, the largest environmental disaster in U.S. history.

  • In November 2012, the department reached the largest criminal resolution in U.S. history with BP. BP pleaded guilty to 11 felony manslaughter charges, environmental crimes, and obstruction of Congress and was sentenced to pay $4 billion in criminal fines and penalties.
  • In January 2013, Transocean Deepwater Inc. agreed to plead guilty to violating the Clean Water Act and to pay a total of $1.4 billion in civil and criminal fines and penalties, for its conduct in relation to the Deepwater Horizon disaster, including a record-setting $1 billion to resolve Clean Water Act civil claims.
  • In February 2012, the department announced an agreement with MOEX, which will pay $70 million in civil penalties to resolve alleged violations of the Clean Water Act and will spend at least $20 million to facilitate land acquisition projects in several Gulf States that will preserve and protect in perpetuity habitat and resources important to water quality.
  • Testimony is complete in the first and second phases of the civil trial against BP and other defendants.  Those phases will determine the causes, quantity, and degrees of legal fault for the spill.  The Department, in concert with the appropriate client agencies (including EPA, Coast Guard, NOAA, DOI, and USDA) is preparing for the next phase of trial, which is an assessment of a Clean Water Act civil penalty against Defendants BP and Anadarko.  That trial phase is scheduled to begin on January 20, 2015.

 

The Department is using innovative law enforcement strategies to prosecute cyber and intellectual property crime. The Department has advanced the fight against intellectual property crime, which threatens the global economy and stifles innovation and creativity, as well as global cyber threats, which can disrupt critical infrastructure such as the power grid, nuclear power plants, financial and banking institutions, transportation systems and vital communication systems. Cybercrime also plays a key role in the theft of classified, personal identification information, and valuable intellectual property.

The Department’s notable efforts include:

  • Dismantling an Extremely Damaging Botnet and Prosecuting its Administrator:  In 2014, the Department led a multi-national effort to disrupt the Gameover Zeus Botnet – a global network of infected victim computers used by cyber criminals to steal millions of dollars from businesses and consumers – and unsealed criminal charges in Pittsburgh, Pennsylvania, and Omaha, Nebraska, against Evgeniy Mikhailovich Bogachev, a Russian national who served as an administrator of the botnet.   In a related action, U.S. and foreign law enforcement officials worked together to seize computer servers central to the malicious software or “malware” known as Cryptolocker, a form of “ransomware” that encrypts the files on victims’ computers until they pay a ransom.  The Department obtained court authorization for the FBI to provide victim information to Computer Emergency Response Teams (CERTs) around the world and to private industry partners in a position to assist victims in ridding their computers of the Gameover Zeus malware.
  • Protecting the Military Supply Chain through Prosecution of an Importer of Counterfeit Parts:  In 2014, the Department announced that Peter Picone, 41, of Methuen, Massachusetts, pleaded guilty in federal court in Connecticut to importing thousands of counterfeit integrated circuits  from China and Hong Kong and then reselling them to U.S. customers, including contractors supplying them to the U.S. Navy for use in nuclear submarines.  According to court filings, from 2007 through 2012, Picone conspired with his suppliers in China and Hong Kong to sell millions of dollars’ worth of integrated circuits bearing the counterfeit marks of approximately 35 major electronics manufacturers, including Motorola, Xilinx, and National Semiconductor.   Federal agents searched Picone’s business and residence on April 24, 2012, and recovered 12,960 counterfeit integrated circuits.
  • Prosecuting the Ringleaders of  a Major Point-of-Sale Hacking Scheme:  In 2013, the Department completed the successful prosecutions of Adrian-Tiberiu Oprea, 29, of Constanta, Romania, and Iulian Dolan, 28, of Craiova, Romania, who were sentenced to serve 15 years and seven years in prison, respectively, for orchestrating an international, multimillion-dollar scheme to remotely hack into and steal payment card data from hundreds of U.S. merchants’ computers.  The defendants and their co-conspirators hacked into several hundred U.S. merchants’ point-of-sale systems (the computers that process transactions when a customer uses a credit card for payment), including 250 Subway restaurant franchises.  They stole payment card data belonging to more than 100,000 U.S. cardholders, causing losses of at least $17.5 million in unauthorized charges and remediation expenses.  The case marked the first-ever extradition in a cybercrime case under the new extradition treaty with Romania.
  • Disrupting and Prosecuting One of the Leading Online Copyright Piracy Enterprises: Federal law enforcement combined novel investigative techniques and superior advocacy skills to disrupt and prosecute the IMAGiNE group, the most far-reaching, prolific, and profitable groups illegally distributing copyrighted material on the Internet. IMAGiNE was responsible for the dissemination of up to 40 percent of the English-language content available for illegal download – in all, tens of thousands of copies of hundreds of new motion picture releases. The prosecution secured guilty pleas from the five leading members of the group and sentences ranging from 23 to 60 months. According to industry experts, the takedown of the IMAGiNE group produced an immediate and widespread disruption in illegal film-theft activity.

The Department has provided unprecedented support for state and local law enforcement partners. From 2009 to 2012, the Department provided $3.6 billion in Justice Assistance Grant funding, including $2 billion through the American Recovery and Reinvestment Act. This critical funding supports states, local governments and tribes in meeting their most pressing criminal justice needs. Over the last four years, the Department’s efforts have helped create and save close to 8,000 law enforcement jobs.

For example:

  • The 2009 American Recovery and Reinvestment Act helped the Department support more than 1,000 law enforcement agencies throughout the country, awarding nearly $1 billion to fund the hiring of more than 3,800 new officers. The 2009 program also allowed awarded agencies to retain 881 positions that were in jeopardy of being cut.
  • The 2010 appropriation for COPS Hiring Grants funded 1,177 new law enforcement officer positions for a three-year grant term, plus saved 211 jobs nearly lost to cuts. In September 2011, the COPS Office awarded $243 million for nearly 1,021 law enforcement officer positions.
  • In June of 2012, COPS awarded $111 million to fund 600 new law enforcement positions, plus save an additional 200 positions in jeopardy of being cut. And in response to the Administration’s goal of providing new career opportunities for men and women returning from Iraq and Afghanistan, the COPS Office required that all new hires funded through the 2012 Hiring Program must be recent military veterans.
  • To date, the COPS Office has funded the addition of more than 123,000 community policing officers across the country.
  • The Department has shared more than $1.2 billion in forfeited assets and proceeds with state and local law enforcement agencies and distributed more than $880 million to claimants and victims of crime.
  • The Department has revamped and streamlined the process for tribes to apply for funding through the Coordinated Tribal Assistance Solicitation (CTAS).   From FY 2009 through 2013, the Department has awarded 989 CTAS grants totaling more than $437 million.  The FY 2014 CTAS grants will be awarded in fall 2014.
  • The Department has supported public safety partnerships that maximize resources and adopt evidence-based practices that are backed by data and research. Through the Smart Policing Initiative, the Office of Justice Programs’ Bureau of Justice Assistance (BJA) funds innovative collaborations between law enforcement agencies and research institutions in 32 cities.

The Department has made an unprecedented commitment to ensuring officer safety. In response to a rise in deadly assaults on our nation’s law enforcement officers, the Department has dedicated funding resources, training and research to protecting those who protect our communities. These efforts have led to increased vigilance and training, helping to decrease officer fatalities by approximately 25 percent since 2011.

For example:

  • As law enforcement officer deaths spiked in 2010, the Department provided more than $25 million to law enforcement agencies to purchase more than 88,000 bullet-resistant vests. Since 1999, the BVP program has reimbursed more than 13,000 jurisdictions, a total of $277 million in federal funds for the purchase of over one million vests (1,084,081 as of October 17, 2012). In 2012, body armor saved the lives of at least 33 law enforcement and corrections officers. At least 13 of those life-saving vests had been purchased, in part, with BVP funds,
  • Developed as part of the Attorney General’s law enforcement officer safety initiative, the VALOR program provides critical training and technical assistance to law enforcement on preventing violence against officers—and ensuring officer resilience and survivability following violent encounters. Since the program’s inception in 2010, VALOR has trained more than 8,800 law enforcement professionals and disseminated more than 8,000 Officer Safety toolkits.
  • In 2011, the Department initiated the national Officer Safety and Wellness (OSW) Group. The OSW Group brings together law enforcement leaders and criminal justice practitioners to share their broad perspectives on improving officer safety and wellness.

The Department is supporting effective prisoner reentry and reinvestment programs.

  • During fiscal year 2013, the Department awarded $62 million Second Chance Act grants to help incarcerated adults and youth rejoin their communities and become productive, law abiding citizens. These grants to state, tribal and local governments and non-profit organizations support reentry strategies that include not only evidence-based corrections and supervision strategies, but also employment assistance, housing, mentoring, substance abuse treatment, family programming and other services designed to reduce recidivism. They also support important research.
  • For example, a RAND Corporation’s analysis of correctional education research found that employment after release was 13 percent higher among prisoners who participated in either academic or vocational education programs than among those who did not. Those who participated in vocational training were 28 percent more likely to be employed after release from prison than those who did not receive such training.
  • The 20 federal agencies of the Federal Interagency Reentry Council, created by the Attorney General in 2011, continue to find concrete ways to remove employment and other barriers to successful reentry. Over the last year, agencies have worked together to assist children of incarcerated parents, improve access to education, employment, housing and health care, and reduce the collateral consequences of a criminal record.
  • For example, the “National Inventory of the Collateral Consequences of Conviction” website, launched with Department support, identifies about 35,000 statutes and regulations that impose collateral consequences, or additional punishments, on people convicted of crimes. The website allows searching by state, consequence type, triggering offense category and a number of other salient characteristics. In a related effort, the Attorney General asked Reentry Council agencies to review their regulations with an eye to how and where certain barriers can be eliminated or tailored without compromising public safety. The Department undertook this analysis as well, and as part of his “Smart on Crime” initiative, the Attorney General issued a memorandum directing all Department of Justice components to take collateral consequences into account when proposing any new regulation or guidance.
  • Under the banner of Justice Reinvestment, the Justice Department is helping to bring about criminal justice system reforms by reducing corrections spending and reinvesting in public safety strategies. In late January 2014, the BJA-funded Justice Reinvestment Initiative (JRI) State Assessment Report will be released. The report is the result of a public-private partnership with the Pew Charitable Trusts, and describes the progress, challenges, and preliminary outcomes of 17 JRI states from 2010 to summer 2013. This report demonstrates that while it is too early to assess the full impact of justice reinvestment reforms, states have enacted policies that hold promise in reducing prison populations or averting future growth, generating savings while enhancing public safety. In addition to population changes, justice reinvestment has encouraged states to undergo a cultural shift toward greater collaboration, using data to drive decision-making and increased use of evidence-based practices.

Last Updated: July 2014

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Protecting Taxpayer Dollars and Consumers Against Financial Fraud While Ensuring Competitive Markets

The Department has investigated and held accountable those responsible for financial fraud. In 2009, President Obama created the Financial Fraud Task Force to hold accountable those who helped bring about the last financial crisis.

Since its formation:

  • Task Force members have charged a record number of mortgage fraud-related cases, trained more than 100,000 professionals responsible for awarding and overseeing Recovery Act funds and held regional summits around the country to discuss strategies, resources and initiatives as well as to meet with communities most affected by the financial crisis.
  • In 2012, as part of the Task Force, the Attorney General launched the Consumer Protection Working Group consisting of federal law enforcement and regulatory agencies, as well as state and local partners, to confront and combat through prosecution and education consumer-related fraud, including schemes targeting vulnerable populations, such as the unemployed, those in need of payday loans, and the elderly. The working group also focuses on scams that exploit those in search of government grants and other federal assistance through telemarketing and use of third-party payment processors, which also can threaten the safety and soundness of our financial institutions, as well as active-duty military and veterans.
  • The Department has prosecuted some of the most significant financial crimes, bringing to justice individuals and companies alike for their illegal actions charging and in many instances convicting numerous individuals across the country who perpetrated investment, securities and other fraud schemes.
  • In the past 18months alone, members of the Task Force have charged and had sentenced a number of defendants involved in securities fraud and related investment fraud, mortgage fraud and Ponzi schemes. These defendants include CEOs, owners, board members, presidents, general counsel and other executives of Wall Street firms, hedge funds and banks including:
    • On July 24, 2013, former UBS AG executives, Peter Ghavami, Gary Heinz and Michael Welty, were sentenced to serve time in prison for their participation in frauds related to bidding for contracts for the investment of municipal bond proceeds and other municipal finance contracts. Ghavami was sentenced to serve 18 months in prison and to pay a $1 million criminal fine; Heinz was sentenced to serve 27 months in prison and to pay a $400,000 criminal fine; and Welty was sentenced to serve 16 months in prison and to pay a $300,000 criminal fine.
    • On June 28, 2013, Scott N. Powers, the former CEO of Arizona-based mortgage loan originator American Mortgage Specialists Inc. (AMS), and David McMaster, a former officer of AMS, were sentenced to serve 96 and 188 months in prison, respectively, for their roles in a $28 million scheme to defraud North Dakota-based BNC National Bank (BNC). Powers and McMaster, who pleaded guilty to conspiracy to commit bank fraud and wire fraud, were each ordered to pay a money judgment to the government of more than approximately $28 million and to pay restitution to BNC bank in that same amount.
    • On June 14, 2013, the CEO of Axius Inc. Roland Kaufmann was sentenced to serve 16 months in prison and ordered to pay a fine of $450,000 for his role in a conspiracy to bribe purported stock brokers and manipulate the Axius stock.
    • On May 24, 2013, top executives at Virginia's Bank of the Commonwealth, including CEO and Board Chairman Edward Woodard, were convicted for masking non-performing assets at the bank for their personal benefit. This long-running scheme contributed to the failure of the bank in 2011, which the Federal Deposit Insurance Corporation (FDIC) estimates will cost the FDIC deposit-insurance fund approximately $268 million.
    • On April 8, 2013, Glen Alan Ward, a 12-year federal fugitive, pleaded guilty to aggravated identity theft and bankruptcy fraud in connection with leading a nearly 15-year foreclosure-rescue scam where he collected more than $1.2 million from more than 800 distressed homeowners and fraudulently postponed foreclosure sales for those homeowners.
    • On September 18, 2003, UBS Securities Japan Co., Ltd., a wholly-owned subsidiary of UBS AG, was sentenced for its role in manipulating LIBOR. UBS Securities Japan pleaded guilty on Dec. 19, 2012, to one count of engaging in a scheme to defraud counterparties to interest rate derivative trades by secretly manipulating LIBOR benchmark interest rates. UBS Securities Japan signed a plea agreement with the government in which it admitted its criminal conduct and agreed to pay a $100 million fine, which the court accepted in imposing sentence. In addition, UBS AG, the Zurich-based parent company of UBS Securities Japan, had entered into a non-prosecution agreement (NPA) with the government requiring UBS AG to pay an additional $400 million penalty, to admit and accept responsibility for its misconduct as set forth in an extensive statement of facts, and to continue cooperating with the Justice Department in its ongoing investigation. Together with approximately $1 billion in regulatory penalties and disgorgement, the Justice Department's criminal penalties brought the total amount of the resolution to more than $1.5 billion.
    • On September 25, 2013, two former derivatives brokers and a former cash broker employed by London-based brokerage firm ICAP were charged as part of the ongoing criminal investigation into the manipulation of the London Interbank Offered Rate (LIBOR). Darrell Read, who resides in New Zealand, and Daniel Wilkinson and Colin Goodman, both of England, were charged with conspiracy to commit wire fraud and two counts of wire fraud in a criminal complaint in Manhattan federal court. The complaint alleges that the three defendants executed a sustained and systematic scheme to move Japanese Yen LIBOR in a direction favorable to the trading positions of their trading desk's largest client, a senior trader at UBS AG in Tokyo.
    • On October 29, 2013, Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank) entered into an agreement with the Department of Justice to pay a $325 million penalty to resolve violations arising from Rabobank's submissions for LIBOR and the Euro Interbank Offered Rate (Euribor). A criminal information was filed in U.S. District Court for the District of Connecticut as part of a deferred prosecution agreement (DPA). The information charged Rabobank with wire fraud for its role in manipulating LIBOR and Euribor. In addition to the $325 million penalty, the DPA required the bank to admit and accept responsibility for its misconduct as described in an extensive statement of facts and required Rabobank's cooperation with the Justice Department in its ongoing investigation. Together with approximately $740 million in criminal and regulatory penalties imposed by other agencies in actions arising out of the same conduct by Rabobank, the Justice Department's $325 million criminal penalty brought the total amount to be paid by Rabobank to more than $1 billion.
    • On February 5, 2013, the Department filed a civil lawsuit against the credit rating agency Standard & Poor's Ratings Services (S&P) alleging that S&P engaged in a scheme to defraud investors in structured financial products known as residential mortgage-backed securities and collateralized debt obligations (CDOs). According to the complaint, federally insured financial institutions suffered approximately $5B in losses in connection with the failure of CDOs rated by S&P from March to October 2007.
    • On October 24, 2012, the Department filed a $1 billion civil mortgage fraud lawsuit against Bank of America Corporation and its predecessors Countrywide Financial Corporation and Countrywide Home Loans Inc. for engaging in a scheme to defraud the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), causing more than $1 billion dollars in losses and countless foreclosures.
    • On October 24, 2012, Rajat Gupta, chairman of an international consulting firm and member of the boards of directors at Goldman Sachs and Procter & Gamble, was sentenced to two years in prison for insider trading in which he provided confidential information about Goldman Sachs to his business partner and friend, Raj Rajaratnam.
    • On September 18, 2012, Shawn L. Portmann, a former senior vice president and loan officer at Pierce Commercial Bank in Washington pleaded guilty to a mortgage fraud scheme that resulted in the collapse of the bank.
    • On September 11, 2012, former bank executive Joseph M. Braas was sentenced to 180 months in prison for his role in a fraud conspiracy that caused the Bank of Lancaster County in Pennsylvania to cease its independent existence. As a result of the fraud, hundreds of jobs were lost.
    • On June 27, 2012, Barclays Bank PLC, agreed to pay $160 million penalty to resolve violations arising from its false submissions for benchmark interest rates used in financial markets around the world.
    • On June 29, 2012, Peter Madoff, brother of Bernard Madoff and the former Chief Compliance Officer and Senior Managing Director of Bernard L. Madoff Investment Securities LLC, pleaded guilty to securities fraud, tax fraud, mail fraud, falsifying records of an investment advisor and making false statements to investors. Peter Madoff faces a maximum sentence of 10 years in prison and must forfeit more than $143.1 billion including his personal property.
    • On June 14, 2012, financier Robert Allen Stanford was sentenced to 110 years in prison for orchestrating a $7 billion investment fraud scheme.
    • On June 1, 2012, CEO Eric A. Bloom and head trader Charles K. Mosley of Illinois bankrupt Sentinel Management Group Inc. were indicted on federal fraud charges for allegedly defrauding more than 70 customers of more than $500 million before the firm collapsed in August 2007.
    • On April 30, 2012, Minor Vargas Calvo, president of CostaRica based Provident Capital Indemnity Ltd. was convicted for carrying out a half-billion dollar fraud scheme that affected more than 2,000 victims in the United States and abroad.
    • On February 1, 2012, criminal charges were filed against two managing directors and a vice president at Credit Suisse Group for failing to assign a fair value to Credit Suisse's RMBS and CMBS assets, contributing to a $2.6B write-down in March 2008 in Credit Suisse's reported net income.

The Department has secured justice for victims of lending fraud. In fiscal years 2010 - 2014, the Justice Department charged nearly 3,000 defendants throughout the country with lending fraud-related crimes.

Examples include:

  • In March 2012, the Department played a major role in securing the largest joint federal-state settlement ever - $25 billion – against the nation’s five largest mortgage servicers for robo-signing and other mortgage servicing abuses through substantial financial penalties and extensive consumer relief.
  • In June 2014, the Department filed the largest credit card discrimination settlement in history to resolve allegations that Synchrony Bank, formerly known as GE Capital Retail Bank, discriminated on the basis of national origin by excluding Hispanic borrowers from two of its credit card debt repayment programs.  The Department’s investigation was conducted jointly with the Consumer Financial Protection Bureau (CFPB).  The settlement provides $169 million in relief to approximately 108,000 borrowers in the form of monetary payments and the reduction, or complete waiver, of borrowers’ credit card balances.
  • In December 2013, the Department announced the government’s largest-ever auto discrimination settlement with Ally Financial Inc. and Ally Bank to resolve allegations that the lender discriminated against African-American, Hispanic, and Asian/Pacific Islander borrowers by charging them higher interest rates on auto loans as compared to white borrowers.  The Department’s investigation was conducted jointly with the CFPB.  Pursuant to the settlement, Ally will pay $80 million to minority victims of discrimination and an $18 million civil monetary penalty to the CFPB.  Ally also must refund discriminatory overcharges to borrowers for the next three years unless it significantly reduces disparities in unjustified interest rate markups.
  • In December 2011, the Department announced the largest-ever fair lending settlement - $335 million - with Countrywide Financial Corporation to resolve allegations that Countrywide and its subsidiaries engaged in a widespread pattern or practice of discrimination against more than 200,000 qualified African-American and Hispanic borrowers in mortgage lending from 2004 through 2008.
  • In July 2012, the Department filed the second-largest fair lending settlement in its history to resolve allegations that Wells Fargo Bank, the largest residential home mortgage originator in the United States, engaged in a pattern or practice of discrimination against qualified African-American and Hispanic borrowers in its mortgage lending from 2004 through 2009. The settlement provides at least $125 million in compensation for borrowers who were steered into subprime mortgages or who paid higher fees and rates than white borrowers because of their race or national origin. Wells Fargo will also provide $50 million in direct down payment assistance to borrowers in communities around the country where the Department identified large numbers of discrimination victims and which were hard hit by the housing crisis.

The Department has vigorously enforced the Servicemembers Civil Relief Act (SCRA).  SCRA serves to postpone, suspend, terminate or reduce the amount of certain civil obligations so that members of the armed forces can focus their full attention on their military or professional responsibilities without adverse consequences for themselves or their families.  Since May 2011, the Department has reached eight settlements with mortgage servicers for foreclosing on servicemembers in violation of the SCRA, including settlements with the five largest mortgage servicers in conjunction with the National Mortgage Settlement.  In most circumstances under these settlements, servicemembers who were foreclosed on in violation of the law will receive a minimum of $125,000 plus compensation for lost equity.  In May 2014, the Department announced the government’s first SCRA case involving student loans -- a $60 million proposed settlement with Sallie Mae for unlawfully failing to reduce the interest rate on servicemembers’ pre-service student loans to 6%.

The Department launched innovative programs to stop fraud in the residential mortgage-backed securities market. In 2012, the Attorney General launched the Residential Mortgage-Backed Securities (RMBS) Working Group to maximize the impact of parallel efforts between federal and state law enforcement agencies to focus on fraud in the packaging and sale of RMBS offerings. This working group collaborates on future and current investigations, pools resources and streamlines processes to ensure that when misconduct occurs, justice is sought for the victims.

So far, RMBS Working Group members have announced several law enforcement actions including:

  • On November 19, 2013, the Justice Department secured a record $13 billion global settlement with JPMorgan - the largest settlement with a single entity in American history - to resolve federal and state civil claims arising out of the packaging, marketing, sale and issuance of residential mortgage-backed securities by JPMorgan, Bear Stearns and Washington Mutual prior to Jan. 1, 2009. As part of the settlement, JPMorgan acknowledged it made serious misrepresentations to the public - including the investing public - about numerous RMBS transactions. The resolution also requires JPMorgan to provide much needed relief to underwater homeowners and potential homebuyers, including those in distressed areas of the country.
  • In July 2014, the Department reached a $7 billion settlement with Citigroup Inc. to resolve federal and state civil claims related to Citigroup’s conduct in the packaging, securitization, marketing, sale and issuance of RMBS between 2006 and 2007.  The resolution included a $4 billion civil penalty – the largest penalty to date under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) – and requires Citigroup to provide relief to underwater homeowners, distressed borrowers, and affected communities.
  • In August 2013, the Justice Department, as part of the ongoing work of the RMBS Working Group, filed a civil lawsuit against Bank of America Corporation and certain of its affiliates (BOA) for defrauding investors in connection with the sale of more than $850 million of RMBS. The complaint alleges BOA lied to investors about the relative riskiness of the mortgage loans backing the RMBS, made false statements after intentionally not performing proper due diligence and filled the securitization with a disproportionate amount of risky mortgages originated through third party mortgage brokers.
  • In November 2012, Working Group Co-Chair, New York Attorney General Eric Schneiderman filed a Martin Act complaint against Credit Suisse Securities (USA) LLC and its affiliates for making fraudulent misrepresentations and omissions to promote the sale of RMBS to investors.
  • Also in November 2012, the Securities and Exchange Commission (SEC), a RMBS Working Group partner, charged J.P. Morgan Securities LLC with misleading investors in offerings of residential mortgage-backed securities.
  • At the same time, the SEC also announced charges against Credit Suisse Securities (USA) LLC with misleading investors in offerings of residential mortgage-backed securities. SEC Acting Director of Enforcement George Canellos is an RMBS Working Group Co-Chair.
  • Both JP Morgan and Credit Suisse agreed to settlements with the SEC in which they will pay more than $400 million combined, and the SEC plans to distribute the money to harmed investors.
  • In October 2012, New York Attorney General Schneiderman filed a Martin Act lawsuit against J.P. Morgan Securities LLC (formerly known as Bear Stearns & Co. Inc.), JP Morgan Chase Bank N.A., and EMC Mortgage LLC (formerly known as EMC Mortgage Corporation) for making fraudulent misrepresentations and omissions to promote the sale of residential mortgage-backed securities to investors.

The Department has successfully prosecuted international cartels and domestic collusion conspiracies: The Department has prosecuted corporations and individuals engaged in price fixing, bid rigging, market and customer allocation, and other fraud that hurts the American consumer.  Since January 2009, 359 criminal cases have been filed and more than $4.7 billion in criminal fines have been obtained.  In the period 2010-2013, the average prison sentence in division cases was 25 months, up from 20 months in the period 2000-2009.  Charges were brought in a variety of important industries, including financial services, auto parts, liquid crystal display (LCD), air transportation, real estate, coastal shipping and environmental services.  Results include:

  • As a result of the Antitrust Division’s ongoing investigation into price fixing and bid rigging in the auto parts industry, to date, 27 corporations and 36 executives have been charged resulting in more than $2.3 billion in criminal fines–including the second and third largest criminal fines ever and landmark prison sentences against the culpable executives.
  • After a successful conviction of Taiwan-based AU Optronics, its Houston-based subsidiary, and former top executives for their involvement in a price-fixing conspiracy involving LCD panels, for the first time ever, a jury determined that the conspirators’ gain from their illegal conduct was at least $500 million, raising the potential fine for each company above the statutory maximum of $100 million.  AU Optronics was sentenced to pay a $500 million fine, matching the largest fine ever imposed against a company for violating the U.S. antitrust laws.  On July 10, 2014, the Ninth Circuit affirmed these convictions along with the $500 million fine.
  • The division’s ongoing investigation into the municipal bond industry to date has resulted in charges against 20 former industry executives, and nearly $745 million in restitution, penalties and disgorgement to federal and state agencies was obtained through settlements with UBS, Wachovia Bank, JP Morgan Chase, GE Funding Capital, and Bank of America.  To date, 17 financial services executives and one corporation have been convicted, including three former UBS executives who were convicted at trial for their roles in conspiracies involving investment contracts for the proceeds of municipal bonds.
  • As part of the division’s commitment to combat financial fraud, the investigation of collusion in the U.S. real estate market has resulted in charges against 75 individuals and three companies engaged in collusive schemes aimed at eliminating competition at real estate foreclosure auctions.
  • Additional efforts to root out financial fraud have led to charges against 16 individuals and five companies as part of an ongoing investigation into bid rigging and fraud related to municipal tax lien auctions in New Jersey.  To date, 12 individuals and three companies have pleaded guilty.
  • The division’s ongoing investigation into conspiratorial conduct in the market for coastal water freight transportation services has resulted in three companies and six individuals pleading guilty or being convicted at trial and $46 million in criminal fines.  Five individuals who pleaded guilty were sentenced to jail terms ranging from seven months to four years.  Recently, a sixth individual was convicted after trial and in December 2013, was sentenced to serve five years in prison.  Trial against a seventh individual is scheduled for October 2014.
  • In the LIBOR (London InterBank Offered Rate)/Euribor investigation, the Division, in conjunction with the Criminal Division, obtained a conviction against Rabobank, which agreed to pay $325 million in criminal penalties. The Division also filed criminal charges against five former traders and three former brokers for their roles in manipulating LIBOR and/or Euribor benchmark interest rates. In all, the Division has obtained $475 million in criminal fines and penalties in this ongoing investigation, and the total global criminal and regulatory fines, penalties, and disgorgement obtained by enforcement authorities is over $3.7 billion. The broader investigation relating to LIBOR and other benchmark rates has required, and has greatly benefited from, a diligent and wide-ranging cooperative effort among various enforcement agencies both in the United States and abroad.
  • The Antitrust Division achieved its first successfully litigated extradition on an antitrust charge.  Romano Pisciotti, an Italian national and a former manager of Parker ITR Srl’s Oil & Gas Business Unit, a rubber hose manufacturer, was arrested in Germany and was extradited on April 3, 2014, for participating in a conspiracy to rig bids, fix prices and allocate market shares of marine hose sold in the United States and elsewhere. He pleaded guilty to a one-count felony indictment in the U.S. District Court for the Southern District of Florida in Ft. Lauderdale and was sentenced to serve two years in prison and to pay a $50,000 criminal fine.

The Department has prevented anticompetitive mergers and preserved market competition: Since 2009, the Department has challenged 80 anticompetitive mergers, including transactions in the consumer goods, transportation, technology, and telecommunications industries, and challenged 29 civil non-merger matters, focusing on contracting practices that reduced competition in industries such as health care, credit card network services, e-books and high-tech employment.

Notable merger cases and issues include:

  • Requiring US Airways and American Airlines to divest facilities at seven key airports to enhance system-wide competition and settle the department's merger challenge. Divestitures at airports in Boston, Chicago, Dallas, Los Angeles, Miami, New York and near Washington, D.C., open the door for competition resulting in more choices and more competitive airfares for consumers.
  • Suing to challenge Bazaarvoice's consummated acquisition of PowerReviews, a transaction that combined the dominant commercial supplier of ratings and reviews platforms in the United States with its closest rival—the court found that the merger was likely to extinguish price competition and substantially diminish the pace of innovation in that market. A settlement requiring Bazaarvoice to divest the assets it acquired from PowerReviews and adhere to other requirements to fully restore competition is pending with the court.
  • Requiring ConAgra Foods, Cargill, CHS, and Horizon Milling to divest four competitively significant flour mills to Miller Milling in order to proceed with the formation of Ardent Mills, a flour milling joint venture, preserving flour milling competition in four regions of the country encompassing large cities such as Los Angeles, Dallas, Minneapolis, and the San Francisco/Oakland Bay Area.
  • Informing the parties that the Antitrust Division would file a lawsuit seeking to block the planned acquisition by Louisiana-Pacific of Ainsworth Lumber, preserving competition in the market for the production of oriented strand board sold to customers in the Pacific Northwest and Upper Midwest regions of the United States.
  • Requiring Anheuser-Busch InBev and Grupo Modelo to divest Modelo's entire U.S. business – including licenses of Model brand beers, its most advanced brewery, Piedras Negras, its interest in Crown Imports LLC and other assets – to Constellation Brands Inc., in order to go forward with their merger. The remedy maintains competition in the beer industry nationwide.
  • Blocking the H&R Block Inc./TaxACT deal—the Antitrust Division's first merger case litigated to judgment successfully since 2003.
  • Suing to block AT&T Inc.'s proposed acquisition of T-Mobile USA Inc.—the companies ultimately abandoned the proposed deal, resulting in a victory for consumers.
  • Requiring structural and/or behavioral conditions on transactions, such as Ticketmaster/LiveNation, Google/ITA, International Paper/Temple-Inland, and Comcast/NBCU, remedying the competitive harm to consumers while allowing the companies to proceed with their transactions in a way that did not threaten competition.
  • Obtaining full relief in the UTC/Goodrich merger, the largest aircraft industry merger ever. This case featured close coordination with the European Commission.
  • Requiring Humana and Arcadian Management Services to divest Arcadian's Medicare Advantage health insurance plans in 51 counties across Arizona, Arkansas, Louisiana, Oklahoma and Texas. The divestitures preserve competition so that Medicare beneficiaries, primarily senior citizens, benefit from lower prices, better quality, and more innovative products for their health care needs.
  • Challenging a tour bus joint venture, Twin America, formed by two companies that had competed head-to-head in the provision of "hop-on, hop-off" bus tour services in New York City.

Notable civil, non-merger cases and issues include:

  • Lawsuit against American Express, MasterCard and Visa, challenging their rules restricting price competition. The department reached a settlement with Visa and MasterCard, and trial against American Express began on July 7.
  • Joint policy statement with the Federal Trade Commission issued in April 2014 makes clear that properly designed threat information sharing is not likely to raise antitrust concerns and can help secure the nation's networks of information and resources. The policy statement is designed to reduce uncertainty for those who want to share information to prevent and combat cyberattacks.
  • Lawsuit and resulting settlement reached with eBay that prevents the company from entering into or maintaining agreements with other companies restraining employee recruitment and hiring, substantially the settlement as those reached with Adobe, Apple, Google, Intel, and Pixar in September 2010, and with Lucasfilm in December 2010.
  • Lawsuit and a three-week trial, after which a court found that Apple Inc. violated Section 1 of the Sherman Act by conspiring to raise e-book prices and end e-book retailers' freedom to compete on price. The department's remedy requires Apple to modify its agreements with five publishers – Hachette Book Group (USA), HarperCollins Publishers L.L.C., Simon & Schuster Inc., Penguin Group (USA) Inc. and Holtzbrinck Publishers, LLC (which does business as Macmillan)–provides for a court-appointed external monitor, includes anti-retaliatory provisions to protect publishers and prohibits Apple from engaging in future anticompetitive conduct.
  • Settlement reached with five book publishers–Hachette Book Group (USA), HarperCollins Publishers L.L.C., Simon & Schuster Inc., Penguin Group (USA) Inc. and Holtzbrinck Publishers LLC (which does business as Macmillan)–for conspiring to end e-book retailers' freedom to compete on price, take control of pricing from e-book retailers and substantially increase the prices that consumers pay for e-books.
  • Lawsuit and resulting settlement with United Regional Health Care System—the first case brought by the Department since 1999 challenging a monopolist with engaging in traditional anticompetitive unilateral conduct.
  • Settlement with Morgan Stanley that requires it to pay $4.8 million for violating the antitrust laws by entering into an agreement with KeySpan Corporation that restrained competition in the New York City electricity capacity market.

The Department has established the most effective strike force in history to protect Medicare money: In 2009, Attorney General Holder and Health and Human Services (HHS) Secretary Kathleen Sebelius announced the creation of the Health Care Fraud Prevention and Enforcement Action Team (HEAT) and renewed their commitment to fighting health care fraud as a Cabinet-level priority at both Departments.

  • Since announcing HEAT in May 2009, the Medicare Fraud Strike Forces have conducted six nationwide takedowns resulting in charges against almost 600 individuals with schemes involving nearly $2 billion in fraudulent billings. Strike Force operations since their inception in 2007 have charged more than 1,500 defendants who collectively have falsely billed the Medicare program for more than $5 billion.

The Department has returned historic amounts of taxpayer dollars through the False Claims Act. Since 2009, the Department has recovered more than $20.2 billion from False Claims Act cases, with more than $14 billion of those recoveries from cases involving fraud against federal health care programs. False Claims Act recoveries return losses to the federal agency that was defrauded, replenishing federal funds, and send a message to potential scammers that ultimately they will be required to pay up to three times the amount of their fraud.

Results of these efforts include:

  • In FY 2013, the Department reported recoveries of $3.8 billion under the False Claims Act – the second largest annual recovery of its type in history. This included a recovery of more than $2.6 billion in matters alleging fraud against government health care programs. The Justice Department’s FY 2013 efforts recovered more than $3 billion for the fourth year in a row and are surpassed only by the previous fiscal year’s nearly $5 billion in recoveries.
  • FY 2013 was also a record year for procurement fraud matters, with the department securing more than $887 million in settlements and judgments based on allegations of false claims and corruption involving government contracts.
  • Also in FY 2013, the Department received an all-time high of 752 relator (whistleblower) cases under the False Claims Act. This nearly doubles the number since 2009, when 433 such matters were filed with the Department. Since 2009, the Department’s recoveries in whistleblower suits have climbed to $15.9 billion.
  • The largest recoveries in the history of the False Claims Act against companies that were alleged to have promoted pharmaceuticals for treatment of certain illnesses that had not been approved by the FDA, including:
    • In 2012, a record $3 billion recovery from global health care giant, GlaxoSmithKline, to resolve criminal and civil liability arising from allegations that it unlawfully promoted  the prescription drugs Paxil, Wellbutin, Advair, Lamictal, Zofran, Imitrex, Lotronex, Flovent, and Valtrex; and  reported false prices;
    • In 2013, a $2.2 billion recovery from global health care giant, Johnson & Johnson, to resolve criminal and civil liability arising from allegations that it unlawfully promoted the prescription drugs Risperdal, Invega, and Natrecor for uses not approved as safe and effective by the FDA.

The Department has expanded efforts to combat corruption at home and abroad. Since 2009, the FCPA Unit has pursued criminal cases against executives, agents, and other individuals engaged in bribery. During that time, the Unit has secured 47 convictions of individuals: 40 guilty pleas and 7 trial convictions. In this same time, the FCPA Unit has entered into 55 corporate resolutions, resulting in penalties and fines of over $3 billion, including nine of the top ten FCPA resolutions in history.

Results of these efforts include:

  • Since 2009, the Department has entered into more than 40 corporate resolutions, including nine of the top 10 biggest resolutions ever in terms of penalties, resulting in approximately $2.6 billion in monetary penalties.
  • The Kleptocracy Initiative has executed forfeiture judgment against a private home in Maryland estimated to be worth more than $700,000 that was purchased with the proceeds of corruption traceable to a former governor of an oil-producing state in Nigeria and a judgment of an approximately $2.1 million combined value for a Manhattan condominium and a Virginia residence which were purchased with the proceeds of bribes paid to the family of the former President of Taiwan.

The Department has made historic progress in combating the diversion of controlled pharmaceuticals. Over the past five years, the Department has conducted significant enforcement operations nationwide in collaboration with federal, state and local law enforcement agencies to target those involved in illicit diversion of pharmaceuticals.

Significant accomplishments include:

  • In 2010, the Department reached a landmark settlement with CVS Caremark Corporation over policies and practices that allowed customers to purchase significant quantities of pseudoephedrine, the main ingredient for making methamphetamine in clandestine labs. The $77.6 million civil penalty was the largest-ever levied against a Drug Enforcement Administration (DEA) registrant for non-compliance.
  • In February 2011, Operation Pill Nation I targeted rogue pain clinics in South Florida, an area that has emerged as the pill-mill capital of the U.S. The initiative resulted in 47 arrests, including 27 doctors, the surrender of 92 DEA registrations, the closing of 40 clinics and the seizure of more than $18.9 million in assets.
  • In October 2011, Operation Pill Nation II, resulted in the arrest of 57 individuals, including eight physicians and four pharmacists, the surrender of six DEA registrations, and the seizure of assets totaling approximately $311,995.
  • In February2012, a physician was sentenced in U.S. District Court for the Southern District of Ohio to more than four terms of life in federal prison for illegally prescribing and dispensing pain pills outside the scope of legitimate medical practice that resulted in the deaths of four people.
  • In April 2012, a federal grand jury in the U.S. District Court for the Southern District of Ohio indicted the owner of 3 pain clinics and 6 of the doctors he hired to satisfy the demand for the illegal diversion of controlled substances in central and southern Ohio, Kentucky, West Virginia, and Tennessee.
  • In May 2012, the Department reached a settlement with Omnicare Inc., in which the company agreed to pay a $50 million penalty to resolve claims its pharmacies improperly dispensed controlled substances to patients at long-term care facilities around the country.
  • In June 2012, the DEA arrested seven doctors and seven of the largest pill clinic owners in Florida as part of a state-wide initiative against illicit diversion of pharmaceutical drugs. Roughly 59 bank accounts were seized and 13 search warrants were executed.
  • The DEA's National Prescription Take-Back Initiative has resulted in the removal of more than 2.8 million pounds of prescription medications from circulation since the initiative began in 2010.

The Department has made historic efforts to investigate and prosecute offshore tax evasion. For the last six years, the Department has spearheaded an historic effort to lift the veil on foreign bank secrecy by vigorously investigating and prosecuting U.S. taxpayers who illegally hide assets and income offshore, as well as the foreign banks, bankers and others who facilitate those crimes.

For example:

  • The Tax Division obtained a historic guilty plea and a total payment of $2 billion in restitution and a fine from Credit Suisse AG, the second largest bank in Switzerland, for assisting thousands of U.S. clients to evade their taxes by maintaining undeclared bank accounts for them and helping them conceal those undeclared accounts from the U.S. government through various means.
  • In August 2013, the Department announced a Program for Non-Prosecution Agreements or Non-Target Letters for Swiss Banks, under which most Swiss banks have an opportunity to resolve potential criminal exposure in return for providing substantial cooperation to the Department, including submission of detailed information regarding those who may have committed tax and tax-related violations.
  • In January 2013, the Department secured a groundbreaking guilty plea from Wegelin & Co., the oldest Swiss private bank and the first foreign bank to plead guilty to felony tax charges.
  • Additional enforcement efforts have resulted in:
    • Criminal charges against bankers, attorneys, investment advisors and account holders in connection with activities conducted by banks located in Switzerland, India, Israel and the Caribbean.
    • Through a deferred prosecution agreement and a civil summons settlement that the Tax Division negotiated in 2009 with Switzerland’s largest bank, UBS AG, the U.S. government obtained account information about thousands of the most significant tax cheats holding secret Swiss bank accounts as well as $780 million in taxes, interest, penalties and disgorgement of illegal profits from the bank.
    • Issuance of court orders authorizing the IRS to serve John Doe summonses seeking records of U.S. correspondent accounts of banks located in Switzerland and the Caribbean.
    • Participation by over 40,000 taxpayers to enter voluntary disclosure programs offered by the IRS in 2009 and 2011, which resulted in the IRS collecting billions of dollars in taxes, interest and penalties.

The Department has saved taxpayers dollars by being more cost efficient. The Attorney General’s Advisory Council for Savings and Efficiencies (SAVE Council) has realized more than $132.2 million in savings and expects to see additional savings through the end of the fiscal year.

The following are examples of SAVE Council actions:

  • Centralization of IT security and the elimination of redundancy.
  • Booking travel online, reducing administrative costs.
  • Consolidation of wireless and IT contracts.
  • Increased use of video conferencing, reducing travel costs.
  • Permanent change of station.

The Department has found record efficiencies in its budget and operations. Under the leadership of Attorney General Holder, the Department has identified more than $1.8 billion in savings, efficiencies and rescissions in its budget and operating plan.

For example:

  • After receiving the fiscal year 2011, fiscal year 2012, and fiscal year 2013 appropriations, the Department identified $467 million, $422 million, and $921 million respectively, in operating plan savings and efficiencies and non-grant program reductions. In FY 2013, the Department identified additional non-pay savings to mitigate the sequestration and avoid furloughs in FY 2013.
  • In the fiscal year 2014 President’s Budget, the Department identified $561 million in savings and efficiencies and program savings.

Last Updated: July 2014

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Protecting Against Threats to the Most Vulnerable Populations

The Department has aggressively prosecuted child exploitation and pornography. Since 2009, the Department and its federal partners have conducted more than two dozen global operations targeting organized online groups and more than 5,000 U.S. offenders dedicated to the sexual abuse of children and the use of online networking platforms to traffic in child pornography. These international online collectives were thriving marketplaces for the exchange of child pornography and presented a substantial risk to children because membership, communication and hierarchy in the groups incentivized the production of child pornography and encouraged the sexual abuse of children. These operations resulted in safety for numerous child abuse victims who had been suffering at the hands of offenders and whose abuse only stopped upon the arrest and prosecution of their abusers.

These efforts include:

  • In 2011, the Department, along with federal partners, initiated the largest U.S. prosecution of an international criminal network organized to sexually exploit children - charging 72 individuals for their participation in an international criminal network dedicated to the sexual abuse of children and the creation and dissemination of graphic images and videos of child sexual abuse throughout the world. To date, 58 of the 72 charged defendants have been arrested in the United States and abroad. Forty-eight individuals have pleaded guilty, and one was convicted at trial. Many defendants have been sentenced to thirty years in prison or more.
  • In March 2013, the Department obtained a life sentence plus five years in prison against an Orlando man who was convicted at trial of several counts relating to sex trafficking and firearms offenses. The evidence at trial established that the defendant transported three minors and two adults to throughout the southeast, and beat them and threatened them with guns to force them to engage in prostitution.
  • In July 2013, the Department obtained a 165-year sentence for a Michigan man who was convicted after a jury trial of sexually abusing more than 16 impoverished children in Haiti who were living at a residential facility operated by the defendant that provided shelter, food, clothing and school tuition to Haitian children.  The Department also subsequently obtained a $20,000 restitution order against the man to assist in paying for counseling services for his victims.
  • In January 2014, the Department obtained a 25-year sentence against a former minister who performed missionary work in Haiti and sexually molested four Haitian female children, between the ages of 11 and 16.
  • In March 2014, the Department obtained a 30-year sentence against a U.S. citizen who worked as an English teacher and tutor in Shanghai, China, and had been sexually molesting children under the age of 12 and producing child pornography.
  • In July 2014, the Department obtained a 120-year sentence against an U.S. Air Force noncommissioned officer who had been drugging and sexually molesting children, and producing images and videos of that abuse.
  • Additionally, since 2009, Internet Crimes Against Children Task Forces received 281,447 documented complaints of child exploitation, conducted 219,657 investigations and 248,080 forensic exams, which resulted in the arrest of 33,645 individuals. The task forces also trained 226,711 individuals, including law enforcement officers, prosecutors, computer forensic examiners, forensic interviewers, and others.

The Department has charged a record number of human trafficking cases. Over the past four years, the Department has increased the number of human trafficking prosecutions by more than 38 percent in forced labor and adult sex trafficking cases, while also increasing the number of convictions in Innocence Lost National Initiative cases by 30 percent. The Department announced the formation of the Anti-Trafficking Coordination Team (ACTeam) Initiative, an interagency collaboration among the Departments of Justice, Homeland Security and Labor, to streamline federal criminal investigations and prosecutions of human trafficking offenses. Since initiating the ACTeam, we have launched six Phase I Pilot ACTeams around the country.

Significant accomplishments include:

  • The Department dismantled a large, transnational organized criminal enterprise that held Ukrainian victims in forced labor in Philadelphia.
  • The Department brought freedom and dignity to undocumented Central American women, convicting the traffickers who threatened and violently abused them to compel them into forced labor and forced prostitution in restaurants and bars on Long Island, N.Y.
  • The Department restored the rights and freedom of undocumented Eastern European victims, convicting the trafficker who brutally exploited them in massage parlors in Chicago, branding them with tattoos to claim them as his property.
  • The Department secured a life sentence against a gang member in the Eastern District of Virginia for the sex trafficking of victims as young as 12 years old.
  • The Department convicted eight defendants who were members of or affiliated with a Los Angeles street gang and who were prostituting teen-age girls.  One gang member was sentenced to 30-years in prison.
  • The Department launched several initiatives to build capacity and advance the development of an enhanced framework for regional police cooperation and information sharing that can be applied to bi-lateral and multi-lateral anti-trafficking operations and will serve as an example for other countries in the affected regions.

Olmstead  

  • The Division's U.S. v. Georgia case was the first to use our authority under the ADA and Olmstead to demand creation of additional community services instead of institutional services. The settlement provides relief to more than 12,000 Georgians with developmental or mental health disabilities who remained at risk of unnecessary institutionalization more than a decade after the landmark Olmstead decision involving these very same state hospitals.

The Department has enforced the Religious Land Use of Institutionalized Persons Act, and in the past five years under Attorney General Holder, the department has:

  • Brought the first lawsuit to enforce the institutionalized persons provision of RLUIPA and intervened in two lawsuits to enforce RLUIPA. This marks the first lawsuit regarding the institutionalized persons provisions in which the Civil Rights Division has participated.
  • Filed six statements of interest regarding the interpretation of the institutionalized persons provisions of RLUIPA. The Civil Rights Division had never before filed a statement of interest or amicus brief involving these provisions at the trial court level.
  • Reached four agreements to resolve litigation or investigations involving the institutionalized persons provisions of RLUIPA. The Civil Rights Division had previously never reached any agreements to enforce the institutionalized persons provisions.

The Department has investigated and prosecuted hate crimes under the landmark Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act. In Fiscal Years 2011 and 2012, the Department convicted the most defendants on hate crimes charges in more than a decade. Since its passage in 2009, the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act has provided the Department with important tools to investigate and prosecute hate crimes. To date, the Department has trained thousands of federal and local law enforcement officials around the country to use the statute.

So far:

  • In the past four fiscal years (2009-2012), the Department has prosecuted 29 percent more hate crime cases than were prosecuted in the previous three fiscal years (2005-2008), and charged 78 percent more hate crime defendants.
  • The Department has brought 21 cases, charging 53 defendants. Of those 53 defendants, 40 have been convicted. The Department has prosecuted cases under the Shepard-Byrd Act in Arkansas, Kentucky, Michigan, Minnesota, Mississippi, New Mexico, New York, Ohio, South Carolina, Texas and Washington.
  • In addition to using the Shepard-Byrd Act, the Department also continues to employ 18 U.S.C. §§ 245 (federally protected activities), 247 (obstruction of persons in the free exercise of religious beliefs/ damage to religious real property), and 42 U.S.C. § 3631 (criminal interference with right to fair housing) to prosecute hate crimes.

The Department launched the Defending Childhood Initiative. In 2010, Attorney General Holder established the Defending Childhood Initiative to address and remedy the exposure of America’s children to violence.

As part of that initiative:

  • Attorney General Holder launched the national Task Force on Children Exposed to Violence to raise awareness and to develop policies and practices to address the problem. Based on the testimony at four public hearings and three listening sessions, on comprehensive research, and on extensive input from experts, advocates, and impacted families and communities nationwide, the Defending Childhood Task Force issued a final report to the Attorney General presenting its findings and 56 comprehensive policy recommendations in December 2012. The report serves as a blueprint for preventing and reducing the negative effects of violence across the United States.
  • In April 2013, Attorney General Holder announced that Associate Attorney General Tony West will oversee the creation of an American Indian/Alaska Native Task Force on Children Exposed to Violence. The task force is a joint effort between the Departments of Justice and Interior and tribal governments. The task force focuses on improving the identification and treatment of American Indian and Alaska Native children exposed to violence; supporting American Indian and Alaska Native communities and tribes as they define their own responses to this problem; and involving American Indian and Alaska Native youth in developing solutions.
  • The task force is comprised of a federal working group that includes U.S. Attorneys and officials from the Departments of the Interior and Justice and an advisory committee of experts on American Indian studies, child health and trauma and child welfare.
  • The hearings were held in Bismarck, ND in December 2013; Phoenix, AZ in February 2014; Fort Lauderdale, FL in April 2014 and Anchorage, AK in June 2014.  Each hearing focused on a different theme, including Violence in the Home, Violence in the Community, the Juvenile Justice Response to children exposed to violence; and Alaska specific issues.  The hearings have included expert testimony from tribal researchers, advocates and local community members, who discussed issues of domestic violence, child physical and sexual abuse, school violence and gang violence in Indian Country.  The Advisory Committee has been charged by the Attorney General to develop and submit a final report with recommendations based on these hearings.  The report is due in late 2014.

The Department has made significant investments to keep young people and communities safe. The Department supports a wide variety of initiatives aimed at protecting our country’s youngest citizens and their communities.

For example:

  • The Department has led the National Forum on Youth Violence Prevention, a White House initiative sponsoring federal-local partnerships in 10 U.S. cities to develop comprehensive strategies to reduce youth and gang violence.

    • The Forum models a new kind of federal-local collaboration, encouraging its members to change the way they do business by sharing common challenges, promising strategies and using data to drive decision-making.
    • Through the development of comprehensive networks and strategies that blend prevention, intervention, enforcement and reentry, localities will work across agencies toward a common goal: preventing youth and gang violence.
    • In September 2012, Attorney General Holder and Principal Deputy Assistant Attorney General for the Office of Justice Programs Mary Lou Leary announced Camden, N.J., Minneapolis, New Orleans and Philadelphia would join the forum, bringing the total of participating cities from six to 10. The original Forum cities included Boston, Chicago, Detroit, Memphis, Tenn., Salinas, Calif. and San Jose, Calif.
  • In August 2011, Attorney General Holder and the Secretary of Education Arne Duncan announced a new initiative called the Supportive School Discipline Initiative (SSDI) to address the problem of "zero tolerance" policies that impose harsh punishments like expulsion for relatively minor infractions. Recent studies show children punished in this manner are more likely to repeat a grade, not graduate, or become involved in the juvenile justice system. The initiative is a collaboration between the two Departments, in coordination with the philanthropic, non-profit and advocacy community, to replace punitive school disciplinary policies and practices with positive ones so as to:
    • Keep students in school and engaged in learning.
    • Ensure that school discipline practices are implemented in compliance with civil rights laws.
    • Ensure access to high quality instruction for students who are disciplined.

The Department has modernized the definition of rape in the Uniform Crime Reporting Program. In December 2011, the Department approved an updated definition of rape that will lead to a more comprehensive statistical reporting of rape nationwide. The revised definition is more inclusive of rape acts against men and women, better reflects state criminal codes and focuses on many forms of sexual penetration understood to be "rape." This change will give law enforcement the ability to report more complete rape offense data, as the new definition reflects the vast majority of state rape statutes.

The Department has provided unprecedented support for state and local law enforcement partners. From 2009 to 2012, the Department provided $3.6 billion in Justice Assistance Grant funding, including $2 billion through the American Recovery and Reinvestment Act. This critical funding supports states, local governments and tribes in meeting their most pressing criminal justice needs. Over the last four years, the Department’s efforts have helped create and save close to 8,000 law enforcement jobs.

 

  • The 2009 American Recovery and Reinvestment Act helped the Department support more than 1,000 law enforcement agencies throughout the country, awarding nearly $1 billion to fund the hiring of more than 3,800 new officers. The 2009 program also allowed awarded agencies to retain 881 positions that were in jeopardy of being cut.
  • The 2010 appropriation for COPS Hiring Grants funded 1,177 new law enforcement officer positions for a three-year grant term, plus saved 211 jobs nearly lost to cuts. In September 2011, the COPS Office awarded $243 million for nearly 1,021 law enforcement officer positions.
  • In June of 2012, COPS awarded $111 million to fund 600 new law enforcement positions, plus save an additional 200 positions in jeopardy of being cut. And in response to the Administration’s goal of providing new career opportunities for men and women returning from Iraq and Afghanistan, the COPS Office required that all new hires funded through the 2012 Hiring Program must be recent military veterans.
  • To date, the COPS Office has funded the addition of more than 123,000 community policing officers across the country.
  • The Department has shared more than $1.2 billion in forfeited assets and proceeds with state and local law enforcement agencies and distributed more than $880 million to claimants and victims of crime.
  • The Department has revamped and streamlined the process for tribes to apply for funding and has awarded nearly $250 billion in public safety grants to more than 150 tribal communities in the last two years alone.
  • The Department has supported public safety partnerships that maximize resources and adopt evidence-based practices that are backed by data and research. Through the Smart Policing Initiative, the Office of Justice Programs’ Bureau of Justice Assistance (BJA) funds innovative collaborations between law enforcement agencies and research institutions in 32 cities.

 

The Department has made an unprecedented commitment to reducing violence against American Indian and Alaska Native women. In June 2009, Attorney General Holder launched a Department-wide initiative to enhance public safety in Indian County.

Significant progress has been made since then, including:

  • On March 7, 2013, President Obama signed into the law the reauthorization of the Violence Against Women Act (VAWA) or “VAWA 2013.” This law contains provisions that significantly improve the safety of Native women and which importantly, allow federal and tribal law enforcement agencies to hold more perpetrators of domestic violence accountable for their crimes. Many of these critical provisions were drawn from the Department of Justice’s July 2011 proposal for new Federal legislation to combat violence against native women. VAWA 2013 recognizes tribes’ inherent power to exercise “special domestic violence criminal jurisdiction” (SDVCJ) over certain defendants, regardless of their Indian or non-Indian status, who commit acts of domestic violence or dating violence or violate certain protection orders in Indian country. This new law generally takes effect on March 7, 2015, but also authorizes a voluntary “Pilot Project” to allow certain tribes to begin exercising SDVCJ sooner.  On February 6, 2014, the Pascua Yaqui Tribe of Arizona, the Tulalip Tribes of Washington, and the Umatilla Tribes of Oregon were selected for this Pilot Project.
  • In its Indian Country Investigations and Prosecutions report to Congress, a requirement of the Tribal Law and Order Act of 2010, the Justice Department's prioritization of Indian country crime has resulted in a notable increase in commitment to overall law enforcement efforts in Indian country. Caseloads have increased overall from 1,091 cases filed in fiscal year (FY) 2009 to 1,138 in FY 2010 to 1,547 in FY 2011 to 1,677 in FY 2012. This represented a nearly 54 percent increase in the Indian country crime caseload.
  • The Department launched the National Indian Country Training Initiative (NICTI) to ensure that Department prosecutors, as well as state and tribal criminal justice personnel, receive the training and support needed to address the particular challenges relevant to Indian Country prosecutions, including a 2012 training initiative on investigating and prosecuting sexual assault. In 2012, the NICTI delivered training in 16 states and at the National Advocacy Center in Columbia, S.C. to approximately 2,500 federal, state and tribal stakeholders on a host of criminal justice issues.
  • The report shows a new era of partnership between the federal government and American Indian tribes, including an unprecedented level of collaboration with tribal law enforcement. The increase in collaboration and communication strengthens the bond of trust between federal and tribal investigators, prosecutors, and other personnel in both federal and tribal criminal justice systems, and it is our hope that communities will be safer as a result.

The Department continues to vigorously enforce the right of equal access to the ballot box. Since 2009, the Department of Justice has closely monitored new state laws that would significantly change how elections are conducted.

For example:

  • In 2013, the Department filed three new complaints to enforce the non-discrimination requirements of Section 2 of the Voting Rights Act, including: a complaint against Texas challenging its 2011 redistricting plans for the Texas congressional delegation and the Texas House of Representatives; a complaint against Texas challenging SB 14 (2011), which adopts a strict photo identification requirement for voting; and a complaint against North Carolina challenging HB 589 (2013), which adopts a number of changes in the State’s election law, including a strict photo identification requirement for voting, the elimination of the first week of early voting, which reduces the total number of days of early voting (from 17 days to 10 days), the elimination of same-day voter registration during the early voting period, and the prohibition on counting certain provisional ballots.
  • On June 9, 2014, the Department announced it will hold consultations with tribal leaders to discuss whether the Department should recommend to Congress new legislation that would require any state or local election administrator whose territory includes part of all of an Indian reservation, an Alaska Native village, or other tribal lands to locate at least one polling place in a venue selected by each tribal government.

The Department has consistently defended the right for military personnel and their families as overseas civilians to vote. The Department protects the rights of our military, their families and overseas civilians to vote no matter where they are stationed in the world, through aggressive enforcement of Uniformed and Overseas Citizens Absentee Voting Act (UOCAVA) and the Military and Overseas Voter Empowerment Act.

For example:

  • For the November 2010, federal general election, the Department obtained court orders, court-approved consent decrees, or out-of-court agreements, in 14 jurisdictions (11 states, two territories and the District of Columbia).
  • In 2012, the Department has filed lawsuits against seven states and territories to enforce UOCAVA for the 2012 federal primary, special and general election cycle.
  • The Department has proposed new federal legislation to protect the voting rights of uniformed services voters and overseas voters.

The Department continues to protect the voting rights of Alaska Natives and American Indians.

  • Over the last five years, the Department has filed statements of interest and amicus briefs in cases involving the voting rights of American Indians and Alaska Natives.
  • In 2014, the Department proposed a consultation with Alaska Natives and American Indian tribal governments about the possibility of legislation providing for the designation of polling places in Native villages and on tribal lands.

The Department launched the first-ever Access to Justice Initiative.  Fifty years after the U.S. Supreme Court's landmark decision in Gideon v. Wainwright, which held that every criminal defendant, regardless of income, is entitled to be represented by counsel, millions of Americans still struggle to access the legal services that they need and deserve. Under the leadership of Attorney General Holder, the Department and the Obama Administration have taken unprecedented steps to ensure that our legal system is accessible, effective and a model of integrity. The Access to Justice Initiative, launched in March 2010, has been engaging with a wide variety of new partners including state, local, tribal and federal officials, nonprofit organizations, researchers and experts from across the private sector.

Access to Justice has worked to:

  • Expand research and funding support to improve the delivery of indigent defense services. In fiscal year 2013, the Office of Justice Programs awarded $6.7 million in grants to state and local criminal and legal services organizations across the country that provide legal defense services for the poor.
  • Provide support to tribal courts in their provision of criminal defense services as they work to implement the enhanced sentencing authority under the Tribal Law and Order Act of 2010 and exercise Special Domestic Violence Criminal Jurisdiction recognized under the Violence Against Women Reauthorization Act of 2013 through specialized trainings and expertise.
  • Protect the Sixth Amendment guarantee to effective assistance of counsel by jointly filing with the Civil Rights Division a Statement of Interest in Wilbur v. City of Mount Vernon, requesting consideration of workload controls for public defense providers as part of any court ordered remedy and the subsequent appointment of an “independent monitor” to ensure compliance. On December 4, 2013, the United States District Court found a systematic deprivation of the right to assistance of counsel and issued an injunction.
  • Conceive of and staff the Legal Aid Interagency Roundtable, co-chaired by Associate Attorney General Tony West and Special Assistant to the President for Justice & Regulatory Policy Tonya Robinson, with representation from 17 federal agencies. The Roundtable raises awareness about integrating legal aid programs into federal efforts to promote access to health and housing, education and employment, family stability and community well-being, when doing so can improve federal grant and initiative outcomes.
  • Advance Federal Interagency Reentry Council efforts to remove barriers to employment, housing and family reunification for people with criminal records by integrating civil legal aid interventions into reentry grant and training programs. ATJ collaborated with the Departments of Labor, Justice, and Veteran Affairs to raise awareness about how legal services can improve outcomes, e.g., by expunging or correcting inaccurate criminal records, reinstating a driver’s license, and obtaining certificates of rehabilitation.

The Department has initiated a record number of inquiries into police departments throughout the country to ensure constitutional police practices. Since 2009, the Department has opened 15 investigations state and local law enforcement agencies regarding civil patterns or practices in violation of the Constitution or federal law; entered into 11 agreements and is involved in five pieces of litigation to ensure police accountability. This is the largest number of law enforcement agencies being reviewed at any one time in the history of the Department.

These efforts include:

  • In July 2012, recognizing systemic problems and allegations of unlawful police misconduct in the New Orleans Police Department, the Justice Department and the City of New Orleans signed a consent decree formalizing a comprehensive blueprint for sustainable reform of the police department. This happened after the conclusion of one of the most extensive reviews ever of a law enforcement agency by the Justice Department.
  • In July 2012, the Justice Department and the Seattle Police Department entered into agreements to address policies, supervision, training, accountability and community oversight after the Justice Department found reasonable cause to believe that police department engaged in a pattern or practice of excessive force, in violation of the Fourth Amendment of the U.S. Constitution and the Violent Crime Control and Law Enforcement Act of 1994.
  • In October 2012, the Justice Department and Portland Police Bureau negotiated a settlement to make changes to the Portland Police Bureau policies, practices, training and supervision after the Justice Department found the police bureau had engaged in an unconstitutional pattern or practice of excessive force against people with mental illness.
  • In the 20 years since the passage of Section 14141 in 1994, the Special Litigation Section has reached 30 agreements to change police practices and ensure constitutional policing:  14 of these 30 agreements have been reached in the past five years.  This is more than during any other five year period in the Section’s history, and compares to zero such agreements during the previous five years.
  • During this same 20 year period, the Special Litigation Section has opened 66 14141 investigations of law enforcement agencies: 20 of these investigations have been opened in the past five years.
  • In the past five years, we have renewed our commitment to enforcing 14141 through litigation when necessary.  We currently have four 14141 cases in contested litigation, compared with one previously during the entire history of the statute.  Litigation is necessary to fulfill the promise of 14141 when we have found patterns of constitutional violations by law enforcement agencies, and the agency refuses to work cooperatively to protect peoples’ rights.

Juvenile Justice:

  • For the first time since the passage of Section 14141 in 1994, the Special Litigation Section is investigating juvenile courts. In the past five years, the Special Litigation Section has opened three investigations of juvenile courts. In the past five years, the Civil Rights Division entered the first settlement agreement with a juvenile court to protect the due process and equal protection rights of the juveniles appearing before the court. The settlement led to the creation of a juvenile justice unit within the Public Defender's Office, consisting of six full-time attorneys, two full-time investigators, and two administrative staff members. The unit provides continuous representation of children in delinquency proceedings.

The Department has protected tribal sovereignty, tribal lands and resources and tribal treaty rights. Over the past four years, the Department has continued to vigorously protect the rights and natural resources of federally recognized Indian tribes and their members and has defended against challenges to statutes and federal agency actions designed to protect tribal interests.

For example:

  • The Department has led efforts along with the Department of the Interior and the Department of the Treasury to resolve decades-long and costly litigation brought by 114 tribes against the United States relating to the government's management of tribal trust funds and trust resources. As a result, since October 1, 2010, the United States has settled the "breach of trust" cases brought by 76 tribes and agreed to pay about $2.09 billion to resolve the tribes' claims in an expedited, fair and just manner
  • In October 2012, the Department issued a policy addressing the ability of members of federally recognized Indian tribes to use the feathers and other parts of eagles and other federally protected birds, an issue of great cultural and religious significance to many tribes and their members. The policy clarifies and expands on longstanding Department practice, consistent with the Department of the Interior's 35-year old Morton Policy of not prosecuting tribal members for possessing or using eagle feathers and other protected bird parts while continuing to prosecute tribal members and nonmembers alike for killing protected birds without a permit or for commercializing federally protected birds or bird parts.
  • The Department also held a first-ever joint federal-tribal training on wildlife and pollution enforcement issues. The course brought together more than 100 tribal and federal enforcement personnel and prosecutors who work to protect tribal lands and resources.
  • The Department litigates cases supporting tribal authority over tribal lands and resources. The Department litigated alongside the Saginaw Chippewa Indian Tribe and assisted them in securing the existence and boundaries of its reservation through a settlement between the Tribe, the United States, the state of Michigan and local governments. The Department also successfully defended against the assertion of state and local authority to regulate stormwater or other pollution on tribal trust lands.
  • The Department litigates to preserve treaty-protected tribal hunting, fishing, and gathering rights. For example, in 2013, the United States and many Pacific Northwest tribes obtained an injunction against the State of Washington requiring the State to inventory road culverts on State lands that block the passage of fish to spawning grounds, and the access of juvenile fish to the ocean, and correct them within 17 years.
  • The Department continues to actively defend the Department of the Interior's authority to take land into trust for tribes. Recently, the Department successfully opposed emergency motions to enjoin the Secretary from acquiring land in trust for the North Fork Rancheria of Mono Indians and the Enterprise Rancheria of Maidu Indians of California. In a significant win for the United States, the district court rejected the argument that the North Fork Rancheria was not "under federal jurisdiction" in 1934, and therefore could not qualify for land acquisition pursuant to the Supreme Court's opinion in Carcieri v. Salazar.
  • The Department also plays a key role in defending tribal and federal interests in water adjudications. In 2013, the adjudication court entered a degree adopting the settlement resolving the water rights of the Navajo Nation in the San Juan River Basin which will help ensure that potable water will be available to the tribe and its members in northwestern New Mexico. The Department also prevailed on claims for the benefit of the Klamath Tribes, asserting a right to instream flow claims to support fish populations, and successfully appealed a lower court decision that had unduly limited the amount of federally reserved water rights for the Confederated Tribes of the Yakama Nation in the Yakima River Basin.

Last Updated: July 2014

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Requiring Transparency and Accessibility

The Department has demonstrated its historic commitment to transparency. Upon taking office, President Obama issued a memorandum on the Freedom of Information Act (FOIA) which directed agencies to administer the Act "with a clear presumption: In the face of doubt, openness prevails." On March 19, 2009, Attorney General Holder issued new FOIA guidelines that embrace the call for greater transparency and "a new era of open Government." Under these guidelines, the Department has made significant strides in improving access and transparency.

For example:

  • For the past four fiscal years, from Fiscal Year 2009 to Fiscal Year 2012, the Department has released records in full or in part in more than 94 percent of the cases where records were processed for disclosure, and when records were released, they were released in full, with no information withheld, for more than 70 percent of such requests.
  • The Department also made more discretionary releases of information than the previous administration and has exponentially increased the amount of information made available to the public through proactive disclosures on its websites.
  • In response to receiving more than 61,000 requests for the fourth straight year, which is among the highest number of requests received by any agency, the Department has increased the number of requests it processes every year. During Fiscal Year 2012 alone the Department processed over 68,000 requests which was over 4,500 more than the year before.
  • Under Attorney General Holder's leadership, the Department has also significantly improved its average processing time for simple FOIA requests, processing all of these requests under an average of nearly 19 days.
  • The Department has launched an online portal so that the public, through a personal online account, can make requests to the Department's senior leadership offices, file administrative appeals online and receive any responsive documents online.
  • The Department also launched FOIA.gov which, among other things, allows the public to compare, sort through and view graphically the detailed statistics provided in agencies' Annual FOIA Reports. Over the past four years, the Department has enhanced FOIA.gov by adding a search tool that allows the public to easily search across all agency websites to locate any information of interest. The Department also added the capability to make online requests directly from FOIA.gov and provides information about the FOIA in Spanish.
  • Starting in Fiscal Year 2013, the Department instituted a new quarterly reporting requirement for all agencies, allowing for more real-time assessment of the flow of FOIA requests throughout the year. As a result of this requirement, agencies will post, and FOIA.gov will display, four key FOIA statistics for each agency on a quarterly basis, thereby allowing the public to view current snapshots of agencies' progress in administrating the FOIA throughout the year.
  • Since the issuance of Attorney General Holder's new FOIA guidelines, the Department's Office of Information Policy, which is responsible for encouraging agency compliance with the FOIA, has issued government-wide guidance on a range of issues implementing practices that provide for greater transparency and a more effective FOIA administration across the government.

Last Updated: July 2014

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Protecting The Environment

The Department has renewed its commitment to Environmental Justice. In this 20th anniversary year of the signing of Executive Order 12898, which directed each Federal agency to make achieving environmental justice part of its mission, the Department remains steadfast in its commitment to pursue environmental justice for all Americans. Over the past four years, the Department renewed its commitment to environmental justice, which is the fair treatment and meaningful involvement of all people regardless of race, color, national origin or income with respect to the development, implementation, and enforcement of environmental laws, regulations and policies. This was done in many ways, including by working closely with other federal agencies to coordinate environmental justice efforts, by engaging communities to an unprecedented degree, and by achieving meaningful results for vulnerable communities in its cases.

For example:

  • In the largest environmental enforcement recovery ever by the Department of Justice, on April 3, 2014, Deputy Attorney General James Cole announced a $5.15 billion settlement with the Kerr-McGee Corporation, certain affiliates, and parent company Anadarko Petroleum Corp. to remedy a fraudulent conveyance designed to evade environmental liabilities left by the Old Kerr-McGee Corp.  Under the settlement, approximately $4.4 billion of the total will be paid to fund environmental clean-up and for environmental claims at contaminated sites around the country, including radioactive uranium waste across the Navajo Nation; radioactive thorium in Chicago and West Chicago, Illinois; creosote waste in the Northeast, the Midwest, and the South; and perchlorate waste in Nevada.
  • Under the Clean Water Act, the Department has reached agreements with more than 50 municipalities across the country to upgrade water and sanitary systems to reduce sewer overflows, which can present a significant threat to human health and the environment and have historically most affected low income and minority communities.  These reductions are accomplished by obtaining commitments from municipalities to implement timely, affordable solutions to these problems, including the increased use of green infrastructure and other innovative approaches.
  • For instance, under a Clean Water Act settlement with the City of Chattanooga, Tennessee, approved in 2013, the city agreed to pay a $476,400 civil penalty and make improvements to its sewer systems, estimated by the city to cost approximately $250 million, in order to eliminate unauthorized overflows of untreated raw sewage. The settlement followed a public outreach campaign including two well attended public meetings. Approximately 60 percent of Chattanooga’s storm sewer overflows have occurred in areas with environmental justice concerns.  Under a similar settlement with the Metropolitan St. Louis Sewer District in 2011, $4.7 billion will be spent over more than 23 years to make extensive improvements to sewer systems and treatment plants, to eliminate illegal overflows of untreated raw sewage, including basement backups and to reduce pollution levels in urban rivers and streams.
  • Under a Clean Air Act settlement with the Suiza Dairy Corporation in 2012, the corporation agreed to make significant upgrades (estimated at $3.75 million) to two dairy facilities in Puerto Rico, and conduct community emergency drills.  The case stemmed from violations involving Suiza’s use of anhydrous ammonia, an extremely hazardous substance, at both facilities. The settlement was the product of extensive community outreach and will have significant health and safety benefits to the communities surrounding Suiza’s facilities.

For more information the Department’s environmental justice efforts, visit www.justice.gov/ej/resources.html to view the annual Environmental Justice Implementation Progress Reports.

The Department has successfully defended the EPA’s authority to regulate greenhouse gases that contribute to climate change. Over the past several years, EPA has developed a regulatory program under the Clean Air Act to regulate greenhouse gas emissions that contribute to global climate change. In 2012, the Department obtained a groundbreaking victory in Coalition for Responsible Regulation v. EPA, a large, consolidated Clean Air Act case in which the D.C. Circuit upheld EPA’s principal regulations setting greenhouse gas emission standards for motor vehicles and phasing-in greenhouse gas permit requirements for stationary sources. In October 2013, the Supreme Court denied the lion’s share of nine separate petitions for certiorari seeking further review of the D.C. Circuit’s decisionAnd On June 23, 2014, the Supreme Court issued a decision upholding the EPA’s ability to regulate approximately 83 percent of all greenhouse gas emissions from stationary sources subject to the Act's permit program for new and modified sources.

The Department has successfully defended two sets of important rules involving power plant emissions.  In April 2014, the Department obtained a victory in the D.C. Circuit on EPA’s Mercury and Air Toxics rule, which is the first-ever rule limiting emissions of mercury and other hazardous air pollutants from the nation's coal and oil-fired electric power plants.  Later that same month, the Supreme Court upheld EPA’s Cross-State Air Pollution Rule, which limits emissions of nitrogen oxides and sulfur dioxide that contribute to the formation of ozone and particulate matter pollution that drifts from state-to-state.  The Supreme Court found that the rule reflected a “permissible, workable, and equitable” approach to this complex interstate pollution problem.

The Department is assisting in efforts to increase production of renewable energy on public lands.  A key element of President Obama’s efforts to reduce our nation’s dependence on foreign oil and the emission of greenhouse gases from the burning of fossil fuels is the expansion of cleaner domestic sources of renewable energy such as solar and wind power.  In fiscal year 2013, the Department continued to defend against challenges to permits and rights-of-way issued by the Bureau of Land Management to promote the development of renewable energy projects on public lands.  The Department is handling more than 25 cases involving solar, wind, and transmission projects located in California, Oregon, Tennessee, Delaware, Maine, Massachusetts, Ohio, and Vermont.  These successes have enabled substantial development of renewable energy resources to power American homes and businesses into the 21st century.

The Department is committed to fighting the illegal trade in the world’s wildlife. On February 11, 2014, President Obama released the National Strategy for Combating Wildlife Trafficking demonstrating the United States’ deep commitment to ending this pernicious trade that threatens security, sustainable economic development, and the very survival of the world’s most iconic and endangered species. The Justice Department, one of the co-chairs of President Obama’s national wildlife trafficking task force, plays a vital role in the new national strategy to combat wildlife trafficking, both by enforcing our nation’s wildlife laws, like the Lacey Act and the Endangered Species Act, and by working closely with other federal agencies to build our foreign partners’ enforcement capacity and to support international enforcement efforts.   The Department has successfully prosecuted numerous cases of illicit wildlife smuggling involving trafficking of rhinoceros horns, elephant ivory, South African leopard, Asian and African tortoises and reptiles, and many other forms of protected wildlife and protected plant species. Through enforcement efforts like “Operation Crash” – which is focused on the lucrative and often brutal trade in rhinoceros horn – we work to bring traffickers to justice.  This operation has resulted in more than a dozen successful prosecutions, and we are continuing to unravel the international, sophisticated criminal networks that are involved in these crimes.

Last Updated: July 2014

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