Category: United States Attorneys General

Source: United States Attorneys General 1

Note: View a copy of the indictment here.

A grand jury in Hartford, Connecticut, returned a 15-count indictment on Jan. 8 charging seven alleged members of a violent Hartford gang with participating in a years-long interstate Racketeer Influenced and Corrupt Organizations Act (RICO) conspiracy involving multiple murders, attempted murder, gun trafficking, extortion, arson, drug trafficking, and other crimes.

“This indictment — which is the first RICO indictment since the launch of the Violent Crime Initiative (VCI) in Hartford in April 2024 — alleges that the defendants engaged in numerous violent acts, including shooting at suspected rival gang members and shooting and killing a motorist with whom two of the defendants got into a car accident,” said Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division. “Violent gangs like the Hoodstars terrorize local communities and threaten safety across Hartford. Today’s announcement demonstrates that the VCI is already making an impact in Hartford, through the deployment of Criminal Division resources, in close coordination with our partners, to target the specific drivers of violent crime and hold gang members accountable for their crimes.”

“We allege that members of the Hoodstar Gzz have engaged in murder and numerous other violent acts against both rival gang members and innocent civilians, and their criminal activity extended to northern Vermont, where they trafficked drugs and acquired firearms, some of which they transported back to Connecticut,” said U.S. Attorney Vanessa Roberts Avery for the District of Connecticut. “This case is a clear demonstration of our commitment to relentlessly pursue and dismantle organizations that threaten the peace and security of our communities. The effort to connect these violent acts and bring these individuals to justice has been a collaborative one, and I want to thank the federal, state, and local law enforcement agencies involved for their dedication to make our communities, both here in Connecticut and in Vermont, safer.”

“For more than two years, the FBI and its law enforcement partners have worked tirelessly to disrupt and dismantle the Hoodstarz organization,” said Special Agent in Charge Robert Fuller of the FBI New Haven Field Office. “This violent criminal organization has been responsible for wreaking havoc in the Hartford area and its takedown is a positive step forward in the never-ending quest to keep our community safe. Let this be a firm message that the FBI and its local, state, and federal partners will remain relentless in the fight to identify, disrupt, and dismantle violent criminal organizations.”

“Criminal gangs terrorize communities, leaving violence and destruction in their wake,” said Special Agent in Charge Michael J. Krol of Homeland Security Investigations (HSI) New Haven. “These individuals have been charged with crimes ranging from firearms possession to murder and, if convicted, will face serious federal prison time. HSI works with our state, local, and federal partners to dismantle criminal gangs like the Hoodstar Gzzs and help communities reclaim their safety and their streets.”

“The charges announced today reflect our relentless dedication to dismantling violent criminal organizations that endanger the safety and stability of our communities,” said Special Agent in Charge James M. Ferguson of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Boston Field Division. “Working hand in hand with our federal, state, and local partners, we deliver a clear message: those who choose violence and chaos will be held accountable, and justice will prevail for the citizens of Connecticut.”

The indictment alleges that the Hoodstar Gzz gang, which since its forming in 2010 has referred to itself by a variety of names, including “Hoodstars,” “Hoodstarz,” and “Gz,” generally operates between Capen, Westland, Enfield, and Main Streets in Hartford. The gang has allegedly distributed narcotics; engaged in multiple violent acts against rival gang members and others, including multiple shootings and murders; trafficked narcotics in Vermont; moved firearms from Vermont to Connecticut; utilized stolen vehicles in furtherance of the gang’s affairs and burned vehicles that were used in the commission of crimes; and recorded and distributed rap music to promote the gang’s criminal activity.

The indictment charges the following defendants, all of Hartford:

• Angel Rivera, also known as Rico and Slatt, 24, is charged with RICO conspiracy, murder in aid of racketeering, use of a firearm to cause death, use of a firearm during the murder, and drug trafficking conspiracy.
• Raquan Knight, also known as RQ, 21, is charged with RICO conspiracy and drug trafficking conspiracy.
• Paul Downer, also known as Luap Benji, 28, is charged with RICO conspiracy and drug trafficking conspiracy.
• Mekhi Thompson, also known as Midnight, 24, is charged with RICO conspiracy, murder in aid of racketeering, use of a firearm to cause death, use of a firearm during murder, and drug trafficking conspiracy.
• Paul Clarke, also known as Tommy Bunz, 30, is charged with RICO conspiracy and drug trafficking conspiracy.
• Tyshon Walker, also known as Pone Gwapoo, 26, is charged with RICO conspiracy, drug trafficking conspiracy, and possessing a machinegun during a drug trafficking offense.
• Joshua Cruz, also known as Hop-out Curly, 24, is charged with RICO conspiracy, drug trafficking conspiracy, and possessing a machinegun during a drug trafficking offense.

Among the violent acts committed by the defendants, the indictment alleges that:

• On April 16, 2019, Thompson allegedly attempted to murder members of a rival gang, which resulted in gunshot wounds to three individuals.
• On Jan. 22, 2021, Downer allegedly shot a victim in the femoral artery for failure to pay a drug debt.
• On April 10, 2021, Rivera, Knight, Cruz, and other Hoodstar Gzz members and associates allegedly shot and killed a member of the rival Ave gang and wounded another individual.
• On Jan. 18, 2022, Rivera, Walker, Cruz, and other Hoodstar Gzz members and associates allegedly shot at one victim and shot and injured another.
• On Jan. 18, 2022, Rivera, Walker, Cruz, and other Hoodstar Gzz members and associates allegedly shot and killed one victim and shot and injured another.
• On June 19, 2022, Knight allegedly shot one victim.
• On Aug. 1, 2022, Rivera and other members and associates of the Hoodstar Gzz gang allegedly shot and killed one victim and shot and injured two additional individuals.
• On Sept. 14, 2022, Thompson and Rivera allegedly got into a confrontation with a victim over a rental car that Thompson failed to return. Thompson then shot and killed the victim.
• On Oct. 27, 2022, Thompson and Rivera were allegedly involved in a car accident with a black Nissan sedan and fled the scene. The Nissan followed them for approximately 1.6 miles. Thompson then allegedly exited the vehicle and shot and killed the driver of the Nissan.

If convicted, each defendant faces a maximum penalty of life in prison. All defendants are currently detained pending trial. A federal district judge will determine any sentence after considering U.S. Sentencing Guidelines and other statutory factors.

The FBI, HSI, and ATF investigated the case, with valuable assistance provided by the Hartford Police Department, East Hartford Police Department, Windsor Police Department, Connecticut State Police, Connecticut Department of Correction, St. Johnsbury Police Department, Northfield Police Department, and Vermont State Police.

Trial Attorneys Jeremy Franker and Christopher Usher of the Criminal Division’s Violent Crime and Racketeering Section (VCRS) and Assistant U.S. Attorneys Robert S. Dearington, John T. Pierpont Jr., and Shan Patel for the District of Connecticut are prosecuting the case. The U.S. Attorney’s Office for the District of Vermont provided substantial assistance.

This prosecution is a part of the VCI in Hartford, as well as the Project Safe Neighborhoods (PSN) program, and is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation.

The Hartford VCI is conducted in partnership with the U.S. Attorney’s Office for the District of Connecticut and local, state, and federal law enforcement. The joint effort addresses violent crime by employing, where appropriate, federal laws to prosecute gang members and associates in Hartford. As part of the initiative, the Criminal Division has dedicated attorneys and other resources to prosecuting violent offenders and assisting intervention, prevention, and reentry efforts to address the root causes of violent crime.

PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. For more information about PSN, please visit www.justice.gov/psn.

OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs, and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF program can be found at www.justice.gov/OCDETF.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Source: United States Attorneys General 12

The U.S. Trustee Program has revamped its Section 341 Meeting of Creditors webpage and released a series of videos to help consumer debtors and their attorneys navigate the section 341 meeting of creditors, a required step in every bankruptcy case.

The meeting of creditors is not a court hearing. It is a meeting conducted by the case trustee—almost always virtually, by Zoom videoconference—to question the debtor under oath about the debtor’s bankruptcy paperwork. The trustee may also ask about the debtor’s property, debts, income, and expenses. Creditors may join the meeting and ask questions, too.

Visit the Program’s new Section 341 Meeting of Creditors webpage for more information, including links to these videos:

Source: United States Attorneys General 13

The U.S. Trustee Program has revamped its Section 341 Meeting of Creditors webpage and released a series of videos to help consumer debtors and their attorneys navigate the section 341 meeting of creditors, a required step in every bankruptcy case.

The meeting of creditors is not a court hearing. It is a meeting conducted by the case trustee—almost always virtually, by Zoom videoconference—to question the debtor under oath about the debtor’s bankruptcy paperwork. The trustee may also ask about the debtor’s property, debts, income, and expenses. Creditors may join the meeting and ask questions, too.

Visit the Program’s new Section 341 Meeting of Creditors webpage for more information, including links to these videos:

Source: United States Attorneys General 7

The Justice Department today announced that Gina Allery has been appointed to serve as the Director of the Office of Tribal Justice (OTJ). Attorney General Merrick B. Garland swore Allery in to the office on Monday afternoon. In this role, Allery will lead OTJ and serve as the principal advisor on Tribal matters to the Attorney General and other Department leaders.

“Gina Allery’s experience and leadership on Indian law and Tribal issues in a variety of roles across the Justice Department will make her an incredible asset to the Office of Tribal Justice,” said Attorney General Garland. “I am confident that Gina will skillfully lead the Department’s efforts to partner with Tribal Nations in the pursuit of justice and safety for Tribal communities. I am grateful that she has agreed to continue her public service in this important role.”

OTJ was initially formed in 1995 in response to requests from Tribal leaders for a dedicated point of contact for Indian country-specific legal and policy matters. The office was made permanent on July 29, 2010, with the passage of the Tribal Law and Order Act.

OTJ is the program and legal policy advisor to the Attorney General on the treaty and trust relationship between the United States and Indian Tribes. The office also serves as a primary point of contact for federally recognized Tribal governments and Tribal organizations on Department policies and programs, as well as issues relating to public safety and justice in Indian country. OTJ also coordinates with other bureaus, agencies, offices, and divisions within the Justice Department on issues and initiatives that affect Tribes and American Indian and Alaska Native people.

Prior to her appointment, Allery served as Deputy Assistant Attorney General for the Tribal Resources and Land Acquisition Sections of the Department’s Environment and Natural Resources Division (ENRD), beginning in 2022. From 2018-2021, Allery served as a Special Assistant U.S. Attorney in the U.S. Attorney’s Office for the District of Minnesota where she prosecuted violent crimes in Indian country. Previously, she served for six years as Deputy Director of OTJ, where she worked on a variety of legal and policy issues impacting Indian Tribes. Allery began her career with the Justice Department as an attorney in ENRD, where she litigated cases on behalf of Tribes, including land-into-trust, reservation boundary, treaty rights, and gaming cases. She served for three years as ENRD’s Senior Counsel for Indian Affairs, providing legal advice to the Assistant Attorney General on variety of Indian law issues. She is a recipient of the John Marshall Award, the Department’s highest award for attorneys for contributions and excellence in specialized areas of legal performance. Prior to working at the Justice Department, Allery worked in private practice. Allery earned a bachelor’s degree in biochemistry from the University of Minnesota and a J.D. from Columbia Law School.

Daron Carreiro, who has been serving as the Acting Director of OTJ since March 2024, will return to his role as Section Chief in ENRD’s Tribal Resources Section.

“Daron Carreiro has been an excellent leader and advisor since beginning as Acting Director of OTJ,” said Attorney General Garland.  “I thank him for his dedicated public service and for his ongoing contributions to the Department’s work alongside our Tribal partners.”

Source: United States Attorneys General

The Justice Department announced today that it has entered into a settlement agreement with the Orange County, California, District Attorney on the use of custodial informants at the Orange County jails in California. The agreement resolves the department’s civil investigation finding that custodial informant activity by the Orange County District Attorney’s Office (OCDA) from 2007 through 2016 with the Orange County Sheriff’s Department (OCSD) violated criminal defendants’ right to counsel under the Sixth Amendment and right to due process of law under the 14th Amendment to the U.S. Constitution.    

Under the agreement, the District Attorney agrees to continue implementing reforms to protect against misuse of custodial informants at the Orange County jails and to disclose to criminal defendants exculpatory evidence about custodial informants, in accordance with constitutional guarantees to a fair trial and right to counsel. Specifically, the District Attorney agrees to maintain changes to OCDA policies, training, document and information systems and internal audits, as well as to engage with representatives of the Orange County criminal justice system on additional improvements. The department will also have full and direct access to independently validate that the reforms have taken hold at OCDA and are achieving their intended results.

“Under the Sixth Amendment, law enforcement cannot use custodial informants as their agents to elicit incriminating statements from defendants represented by counsel,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We commend the District Attorney and his staff for initiating corrective action at OCDA to comply with constitutional requirements. The District Attorney’s proactive efforts, together with today’s agreement, will not only protect the constitutional rights of individual defendants; they will also help restore the public’s confidence in the fundamental fairness of the criminal justice system in Orange County.”

The out-of-court agreement is the result of extensive cooperation from the District Attorney and members of OCDA following the release of the department’s investigative findings in October 2022. The agreement is also the result of systemic improvements initiated by the District Attorney, including suspending the use of custodial informants without his express, prior approval in 2016.

The department opened its investigation into OCDA and OCSD in 2016. The evidence uncovered by the department revealed that custodial informants in the Orange County Jail system acted as agents of law enforcement to elicit incriminating statements from defendants represented by counsel and that, for years, Orange County sheriff deputies maintained and concealed systems to track, manage and reward those custodial informants. The evidence also revealed that Orange County prosecutors failed to seek out and disclose exculpatory information regarding custodial informants to defense counsel.

The Civil Rights Division’s Special Litigation Section conducted the investigation pursuant to 34 U.S.C. § 12601. The statute prohibits state and local governments from engaging in a pattern or practice of conduct by law enforcement officers that deprives individuals of rights protected by the Constitution or federal law. The department’s negotiations with the Orange County Sheriff on remedial measures at OCSD are ongoing.

Since January 2021, the division has opened 12 investigations into law enforcement agencies. The section is enforcing 15 agreements with law enforcement agencies and two post-judgment orders. The department also reached a court enforceable agreement with Louisville and Minneapolis to resolve its findings. Both are pending review by the court.

The department’s investigative findings from October 2022 can be found here.

Information about the Civil Rights Division is available at www.justice.gov/crt.

Source: United States Attorneys General

Bollinger Shipyard LLC (Bollinger), a Lockport, Louisiana, based company, has agreed to pay $1,025,000 to resolve allegations that it violated the False Claims Act by knowingly billing the U.S. Coast Guard for labor provided by workers who were not eligible to work in the United States.  

Bollinger manufactures ships for the United States, including the Coast Guard’s Fast Response Cutter (FRC). The United States alleged that, from 2015-2020, Bollinger knowingly billed the Coast Guard for labor prohibited under the FRC contracts. Specifically, the United States alleged that Bollinger was contractually required to confirm that its employees were eligible to work in the United States. The United States further alleges that Bollinger failed to comply with this requirement and, as a result, several ineligible employees worked on the contract.  Further, the United States alleged that Bollinger billed the Coast Guard for the labor provided by the ineligible employees and received payment for those bills.

“It is essential to the safety and operational readiness of our fleet that contractors comply with all contractual requirements,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to hold accountable those who knowingly disregard their contractual obligations.”

“Companies that conduct business with the United States are required to do so in a legitimate manner,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “The favorable resolution of these False Claims Act allegations illustrates the collaboration and commitment by our federal partners to use all available remedies to address signs of fraud, waste and abuse.”

“Today’s settlement sends a clear message that contractors providing services to DHS programs will be held accountable for breaking the law,” said Inspector General Joseph V. Cuffari Ph.D. of the Department of Homeland Security (DHS). “DHS’ Office of Inspector General (DHS OIG) and our law enforcement partners will continue to prioritize protecting our national security from these kinds of schemes.”

“The Coast Guard Investigative Service (CGIS) is committed to continually working with all our law enforcement partners to protect and secure taxpayer funds and aggressively act to fully investigate allegations of false claims involving the Coast Guard,” said Assistant Director William Hicks of CGIS.

Senior Trial Counsel Art J. Coulter of the Civil Division’s Commercial Litigation Branch, Fraud Section, and Assistant U.S. Attorney Sandra Lee Sears for the Eastern District of Louisiana handled the matter.  

DHS OIG and CGIS assisted in the investigation.

The claims resolved by the settlement are allegations only. There has been no determination of liability.

Settlement

Source: United States Attorneys General 1

The Justice Department announced today its findings that conditions of confinement at the Alvin S. Glenn Detention Center (the Jail) in Columbia, South Carolina, violate the Eighth and 14th Amendments to the U.S. Constitution. The department’s report details the findings of a comprehensive investigation of the Jail, which is funded and operated by Richland County through an Administrator and Director. The Jail currently houses approximately 965 people.

The department concluded that the county and Alvin S. Glenn Detention Center violate the constitutional rights of people incarcerated at the Jail. Specifically, the department found that the Jail fails to provide reasonable safety and to protect incarcerated people from serious harm and death by physical violence from other incarcerated people, including assaults with weapons, assaults by multiple people on single victims and sexual assaults. 

“Incarceration in our nation’s jails should not expose a person to severe and pervasive violence like that in the Alvin S. Glenn Detention Center,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Most people in the jail have not been convicted of any crime — they are awaiting hearings or trial dates. They have a right to be free of violence, threats and sexual assault. The Jail has a constitutional duty to protect people in its care from the horrific violations we uncovered here. We hope Richland County and the Alvin S. Glenn Detention Center will respond to our findings by working with the Justice Department to implement much-needed reforms.”

“The conditions inside the Richland County jail are a matter of life and death. Individuals accused of crimes in Richland County should not face a death sentence before they ever see a court room,” said U.S. Attorney Adair F. Boroughs for the District of South Carolina. “By addressing the remedial measures outlined in our findings, we believe this can change. We hope to work with Richland County and the detention center to make it a safer place for both detainees and staff.”

Systemic problems that have persisted at the Jail for years engender severe violence and avoidable harm. There were at least 60 stabbings in the Jail in 2023. Gangs prey on incarcerated people. Weapons, drugs and contraband cell phones are commonplace and facilitate gang control and violence in the Jail. Inadequate staffing, a deteriorating facility and systemic security lapses, such as deficient prisoner supervision, inadequate internal investigations and lax contraband prevention, yield an ongoing failure to protect incarcerated people from violence. Jail leadership knows about these conditions, and others detailed in the report, which fall far below the constitutional minimum.

The department conducted its investigation of the Alvin S. Glenn Detention Center under the Civil Rights of Institutionalized Persons Act (CRIPA), which authorizes the Attorney General to file a lawsuit in federal court seeking court-ordered remedies to eliminate a pattern or practice of unlawful conduct. The department provided Richland County and the Jail with written notice of the supporting facts for its conclusions and the minimum remedial measures necessary to address the alleged violations. The department is committed to working with the county and Jail toward a cooperative solution.

The Civil Rights Division’s Special Litigation Section conducted this investigation jointly with the U.S. Attorney’s Office for the District of South Carolina. The findings announced today are the result of the department’s civil investigation and are separate from any criminal cases brought by the Justice Department.    

The Civil Rights Division continues to prioritize unconstitutional conditions and violations of federal law in correctional and juvenile justice facilities. It opened new investigations into prisons and jails in Tennessee, California, South Carolina and juvenile justice facilities across Kentucky. The division also issued findings in its investigations of Mississippi prisons, Texas juvenile justice system’s facilities, the Georgia Department of Corrections and San Luis Obispo County, California, Jail. The division entered into agreements, including consent decrees, covering the Fulton County, Georgia, Jail, Cumberland County, New Jersey, Jail, the Edna Mahan Correctional Facility for Women in New Jersey, the Broad River Road Complex in South Carolina, the Manson Youth Institution in Connecticut and the Massachusetts Department of Correction. The division is also litigating matters related to the constitutionality of conditions in Alabama’s prisons for men and the incarceration of people beyond their release dates in Louisiana prisons.   

For more information about the Civil Rights Division and its Special Litigation Section, please visit www.justice.gov/crt/special-litigation-section. You can also report civil rights violations by completing the complaint form available at civilrights.justice.gov/. To provide information related to the department’s investigation of the Alvin S. Glenn Detention Center, please call 1-888-473-3201 or email the department at Community.Glenn@usdoj.gov.

Source: United States Attorneys General

Four defendants pleaded guilty in the District of Maryland for their roles in schemes to rig bids, defraud the government and pay and receive bribes in connection with the sale of IT products and services to federal government purchasers, including the Department of Defense (DoD). The charges were previously announced on Oct. 29, 2024.  

These are the first guilty pleas in the Justice Department’s ongoing investigation into IT manufacturers, distributors and resellers who sell products and services to government purchasers, including to the intelligence community.

On Nov. 7 and 13, 2024, Brandon Scott Glisson, a government contractor, and Lawrence A. Eady, a federal government official, both pleaded guilty to separate counts of bribery. According to public documents, between August 2019 and October 2020, Glisson paid approximately $630,000 in bribes to Eady from Glisson’s company, Alpha Greatness Omega (AGO). In exchange for the bribe payments, Eady ensured that the U.S. government purchased IT products from one of their co-conspirators’ companies at artificially inflated, non-competitive prices, and then diverted the inflated portion of the payments to AGO, which Glisson used for personal luxury purchases and to pay Eady bribes.

Antwann C.K. Rawls, an on-site government IT consultant, and Scott A. Reefe, an IT sales executive, also pleaded guilty in related cases. On Jan. 8, Reefe pleaded guilty to conspiracy to defraud the United States and conspiracy to commit wire fraud and, on Jan. 9, Rawls pleaded guilty to conspiracy to defraud the United States. According to public documents, from at least 2018 until at least May 2019, Rawls, Reefe and their co-conspirators used their positions of trust to learn sensitive, confidential procurement information, including procurement budgets for large U.S. government IT contracts. They and their co-conspirators used that inside information to rig bids for U.S. government IT procurements at artificially determined, non-competitive and non-independent prices, ensuring one of their co-conspirators’ companies would win the procurement. The defendants submitted their collusive bids despite knowing the government sought independent, competitive bids for these valuable contracts, causing the U.S. government to suffer at least $1,300,000 in losses.

“These convictions bring to justice individuals who cheated and defrauded the United States government for their own personal gain,” said Acting Assistant Attorney General Doha Mekki of the Justice Department’s Antitrust Division. “Holding these individuals accountable shows that rigging bids for government contracts will not go unnoticed or unpunished.”

“Today’s outcome demonstrates our commitment to aggressively investigate those who enrich themselves with federal procurement dollars while cheating taxpayers,” said Special Agent in Charge Christopher Dillard of the DoD Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office. “DCIS is proud to work with our law enforcement partners to protect the integrity of the procurement process, including when it impacts the intelligence community.”

Sentencing hearings will be set at a later date. Glisson and Eady each face a maximum penalty of 15 years in prison. Reefe faces a maximum penalty of 20 years in prison and Rawls faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

DCIS, FBI’s Baltimore Field Office, Central Intelligence Agency Office of Inspector General and National Security Agency Office of Inspector General are investigating the case.

Trial Attorneys Michael Sawers, Zachary Trotter and Elizabeth French of the Antitrust Division’s Washington Criminal Section and Assistant U.S. Attorneys Sean M. Delaney and Darren Gardner for the District of Maryland are prosecuting the case.

In November 2019, the Justice Department created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government — federal, state and local. To learn more about the PCSF, or to report information on bid rigging, price fixing, market allocation and other anticompetitive conduct related to government spending, go to www.justice.gov/procurement-collusion-strike-force. Anyone with information in connection with this investigation can contact the PCSF at the link listed above.

Source: United States Attorneys General

Today, the Justice Department’s Antitrust Division and Department of Labor, Occupational Safety and Health Administration (OSHA), jointly affirmed that corporate non-disclosure agreements (NDAs) that deter individuals from reporting antitrust crimes undermine the goals of whistleblower protection laws, including the Criminal Antitrust Anti-Retaliation Act of 2019 (CAARA). CAARA prohibits employers from discharging or otherwise retaliating against a worker for (1) reporting potential criminal antitrust violations and related crimes to their employer or the federal government or (2) assisting a federal government investigation or proceeding.

NDAs that undermine CAARA or otherwise interfere with employees’ freedom to report potential crime will cost the employer when the Antitrust Division makes its charging decisions and sentencing recommendations. Companies should also be aware that using NDAs to obstruct or impede an investigation may also constitute separate federal criminal violations. Any company that so interferes with its employees’ cooperation would jeopardize its ability to satisfy its obligations under the Antitrust Division’s leniency policy, which requires an applicant to “use its best efforts to secure the timely, truthful, continuing, and complete cooperation of all current and former employees.” And the Antitrust Division’s Evaluation of Corporate Compliance Programs in Criminal Antitrust Investigations guidelines consider a company’s policies around NDA and anti-retaliation training in assessing the effectiveness of the company’s compliance program.

“Members of the public are often best positioned to detect and blow the whistle on antitrust crimes,” said Acting Assistant Attorney General Doha Mekki of the Justice Department’s Antitrust Division. “The Antitrust Division values this information and works to ensure that individuals are free to report misconduct without fear of retaliation or retribution.”

“By working jointly with partner agencies to break down barriers to employee reporting, OSHA is committed to strengthening our enforcement of whistleblower laws and protecting workers’ voices,” said Deputy Assistant Secretary for Occupational Safety and Health Jim Frederick. “This collaboration fosters a culture of accountability and upholds the integrity of worker rights.”

What Companies Should Know

Whistleblower Protections for Reporting Antitrust Crimes

Antitrust crimes hurt consumers, workers, and taxpayers — and threaten our free-market economy and democratic institutions. For over 130 years, criminal prosecutors have used antitrust laws as a charter of economic freedom to protect and promote competition.

Members of the public are often best positioned to detect and blow the whistle on antitrust crimes. Leads from the public about potentially illegal conduct enable the Antitrust Division and its law enforcement partners to uncover antitrust cartels and monopolization schemes, prosecute those crimes and protect competition. The Antitrust Division values this information and works to ensure that members of the public are free to report misconduct without fear of retaliation or retribution. The Antitrust Division protects to the fullest extent of the law the identity of those who report antitrust violations.

CAARA protects company employees, contractors, subcontractors or agents who report certain criminal antitrust violations. CAARA prohibits employers from discharging or otherwise retaliating against a worker for (1) reporting potential criminal antitrust violations and related crimes to their employer or the federal government or (2) assisting a federal government investigation or proceeding. Therefore, CAARA helps to incentivize the reporting of antitrust crimes and supports the Antitrust Division’s criminal enforcement program.

NDAs and Contractual Restrictions on Reporting May Conflict with Antitrust Enforcement and CAARA

Individuals who seek to report antitrust violations must not be deterred or prevented from coming forward for fear of adverse employment consequences.

The Antitrust Division’s work prosecuting antitrust crimes is compromised when NDAs deter individuals from providing law enforcers with relevant information on wrongdoing. When individuals believe that a corporate NDA may prevent them from reporting illegal conduct to enforcers, crimes go undetected and competition suffers. For example, some NDAs are worded so broadly as to suggest that people who report potential crimes or cooperate with law enforcement could face lawsuits and adverse employment consequences as severe as termination.  This fear of retribution leads to less reporting of illegal activity and less vigorous antitrust enforcement.

NDAs that discourage individuals from reporting wrongdoing or cooperating with an antitrust investigation also undermine CAARA’s goal of protecting whistleblowers. Even the mere implication that an NDA would bar employees from reporting illegal conduct or assisting an investigation or proceeding clashes with the basic principles behind CAARA that encourage self-reporting and disclosure of wrongdoing to the government.

NDAs that Deter Reporting Will Cost Companies at Charging and Sentencing

CAARA encourages individuals to provide tips to law enforcement and cooperate in antitrust investigations, incentivizes companies to promote compliance and complements leniency and cooperation credit policies. For these reasons, NDAs that undermine CAARA or otherwise interfere with employees’ freedom to report potential crime will cost the employer when the Antitrust Division makes its charging decisions and its sentencing recommendations. Companies should also be aware that using NDAs in efforts to obstruct or impede an investigation may also constitute separate federal criminal violations. And of course, a company that interferes with its employees’ cooperation would jeopardize its ability to fulfill its obligations under the Antitrust Division’s leniency policy, which requires an applicant to “use its best efforts to secure the timely, truthful, continuing, and complete cooperation of all current and former employees.”

The Antitrust Division’s Evaluation of Corporate Compliance Programs in Criminal Antitrust Investigations guidelines, which prosecutors use to assess the effectiveness of compliance programs when making charging decisions and sentencing recommendations, make clear that the sufficiency and efficacy of a compliance program depends on the existence of “reporting mechanisms that employees can use to report potential antitrust violations anonymously or confidentially and without fear of retaliation.” The questions prosecutors ask in evaluating a compliance program include:

• Whether a company has an anti-retaliation policy;
• Whether it trains employees, managers and supervisors on the provisions of CAARA;
• Whether the company’s use of NDAs is consistent with ensuring that employees can report antitrust violations without fear of retaliation;
• Whether NDAs are used in a way that deters whistleblowers or violates CAARA; and
• Whether NDAs and other employee policies make clear that employees can report antitrust violations, including to government authorities.

Companies that fail to address retaliation, CAARA and NDAs in their policies and compliance structure risk losing out on the benefits associated with maintaining an effective compliance program when the Antitrust Division is making charging decisions and sentencing recommendations.

To report potential antitrust crimes to the Antitrust Division, contact the Complaint Center. If your complaint relates to potential antitrust crimes affecting government procurement, grant or program funding, contact the Procurement Collusion Strike Force Tip Center.

If you feel that you have been a victim of retaliation or would like to learn more about protections for whistleblowers, please see OSHA Fact Sheet. 

Source: United States Attorneys General

A Minnesota man was arrested last week and charged with federal hate crime offenses for assaulting a Black man outside of a bar.

According to the indictment that was unsealed yesterday, on or about Feb. 3, 2024, Justin Anthony Kudla used force or the threat of force to injure, intimidate and interfere with the victim — a Black man identified in the indictment as Victim 1 — because of Victim 1’s race, color, religion and/or national origin, and because Victim 1 was enjoying the goods, services, facilities, privileges, advantages and accommodations of a local bar. The indictment also charges Kudla with willfully causing bodily injury to Victim 1 because of Victim 1’s actual and perceived race.  

If convicted, Kudla faces a maximum penalty of 10 years in prison for each offense and a fine of up to $250,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Andrew M. Luger for the District of Minnesota and Special Agent in Charge Alvin M. Winston Sr. of the FBI Minneapolis Field Office made the announcement.

The FBI Minneapolis Field Office is investigating the case, with assistance from the Belle Plaine Police Department.

Assistant U.S. Attorney Evan Gilead for the District of Minnesota and Trial Attorneys Katherine G. DeVar and Briana M. Clark of the Justice Department’s Civil Rights Division are prosecuting the case.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.