Category: United States Department of Justice

Source: United States Attorneys General 1

A dual Canadian American citizen who was extradited from Canada pleaded guilty today for her role in a human smuggling conspiracy that resulted in the deaths of a family, including two children under the age of three, in the St. Lawrence River.

“Aliens attempting to enter the United States illegally across the U.S.-Canada border are exposed to a range of dangers at the hands of human smugglers trying to capitalize on the misfortunes and misplaced hopes of others,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “Here, in the face of known dangers, the defendant directed her co-conspirators to smuggle a family with young children across the St. Lawrence River on a cold, windy night with limited visibility. The dangers materialized into a preventable and tragic loss of life.”

“Alien smuggling preys on vulnerable migrants and undermines the integrity of our nation’s laws,” said First Assistant U.S. Attorney John A. Sarcone III for the Northern District of New York. “Since taking office, my team and I have aggressively pursued dozens of defendants for immigration‑related offenses along the northern border. This defendant and their co-conspirators showed a blatant disregard for human life, our laws, and the safety of our communities. We remain unwavering in our commitment to working with our law enforcement partners to protect and secure our northern border.” 

“Human smuggling organizations show a reckless disregard for the safety and well-being of those they transport, often resulting in devastating consequences,” said Acting Special Agent in Charge Anthony Patrone of U.S. Immigrations and Customs Enforcement Homeland Security Investigations (HSI) Buffalo. “After this smuggling attempt resulted in the death of a family, HSI Massena and our partners conducted a thorough investigation, tracking the conspirators, recovering evidence, and securing extraditions. Protecting vulnerable individuals and dismantling transnational criminal organizations are central to HSI’s mission, and we remain committed to preventing tragedies like this and bringing those responsible to justice.”

According to court documents, Stephanie Square, 53, from the Akwesasne Mohawk Indian Territory in Canada, was the U.S.-based leader of an alien smuggling organization (ASO), that regularly smuggled aliens across the U.S.-Canada border via the Akwesasne Mohawk Indian Reservation. During the week of March 27, 2023, a prolific Canadian smuggler contacted Square to smuggle a Romanian family of four across the St. Lawrence River into the United States. In furtherance of the conspiracy, Square recruited multiple co-conspirators to assist with the smuggling of the family, though one refused to assist due to the high winds on the St. Lawrence River that night. Undeterred by the dangerous weather conditions, Square enlisted one of her regular drivers, Dakota Montour, to transport the family via automobile to Timothy Oakes’ residence on Cornwall Island, a notorious staging area for cross-border smuggling operations. Despite Square’s knowledge of the weather conditions on the St. Lawrence River at that time — including high winds, freezing temperatures, and limited visibility — the defendant insisted the aliens be transported so that she would be paid.     

The family of four arrived at the Oakes’ residence on March 29, 2023, at approximately 3:35AM, and stayed there until evening. On March 29, 2023, at approximately 9:29PM, Timothy Oakes’ vehicle with a light blue boat in tow, is recorded traveling eastbound away from the Oakes’ residence towards a public boat launch on the tip of Cornwall Island where a different boat pilot, Casey Oakes, picked them up and attempted to take the family across the St. Lawrence River. While in transit, the boat capsized due to severe weather. As a result, the Romanian family and Casy Oakes died. 

Between March 30 and 31, 2023, AMPS conducted a riverine search and recovered the bodies of the Romanian family of four, including two small children. AMPS also recovered Oakes’ light blue boat. The body of the boat captain, Casey Oakes, was found eight months later.

Square pleaded guilty to conspiracy to commit alien smuggling, four counts of alien smuggling for financial gain and four counts of alien smuggling resulting in death. She is scheduled to be sentenced on Nov. 25. She faces a minimum penalty of five years in prison and a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Co-conspirators Dakota Montour, 32, and Kawisiiostha Celecia Sharrow, 45, both of the Akwesasne Mohawk Indian reserve, New York, Janet Terrance, 46, of Hogansburg, New York, and Timothy Oakes, 35, from the Akwesasne Mohwak Indian reserve, entered guilty pleas on Jan. 23, 2025, Oct. 8, 2024, March 6, 2025, and May 11, 2026, respectively. Square and co-conspirator Rahsontanohstha Delormier, also known as Storm, 31, of the Akwesasne Mohawk Indian Territory in Canada, were extradited to the United States from Canada in 2025 at the request of the United States. Delormier pleaded guilty on June 26.

HSI Massena engaged in an extensive years-long investigation of the case, with assistance from the U.S. Border Patrol (USBP), U.S. Customs and Border Protection (CBP), HSI’s Human Smuggling Unit in Washington, D.C., CBP’s National Targeting Center International Interdiction Task Force, New York State Police, Canada Border Services Agency, Akwesasne Mohawk Police Service, St. Regis Mohawk Tribal Police Department, Ontario Provincial Police, Sûreté du Québec, St. Lawrence County Sheriff’s Department, Royal Canadian Mounted Police and the Cornwall Police Service. The Justice Department’s Office of International Affairs provided significant assistance in securing the arrest and extradition of Delormier and Square.

The investigation and indictment were supported and prosecuted by Joint Task Force Alpha (JTFA), the Department’s lead effort in combating high-impact human smuggling and trafficking committed by cartels and Transnational Criminal Organizations (TCOs). A highly successful partnership between the Department of Justice and the Department of Homeland Security (DHS), JTFA investigates and prosecutes human smuggling and trafficking and related immigration crimes that impact public safety and border security. JTFA’s mission is to target the leaders and organizers of Cartels and TCOs involved in human smuggling and trafficking throughout the Americas. The Attorney General has elevated and expanded JTFA to target the most prolific and dangerous human smuggling and trafficking groups operating not only in Mexico and the Northern Triangle countries of Guatemala, El Salvador, and Honduras, but also in Canada, the Caribbean and the maritime border, and elsewhere. Led by the Criminal Division’s Human Rights and Special Prosecutions Section and supported by the Money Laundering, Narcotics and Forfeiture Section, the Office of International Affairs, and the Office of Enforcement Operations, among others, JTFA has dedicated Assistant U.S. Attorneys from the Southern District of California; District of Arizona; District of New Mexico; Western and Southern Districts of Texas; Southern District of Florida; Northern District of New York; and District of Vermont. JTFA also partners with other USAOs throughout the country and supports high-priority cases in any district. All JTFA cases rely on substantial law enforcement resources from DHS, including HSI and CBP USBP and Office of Field Operations, as well as FBI and other law enforcement agencies. To date, JTFA’s work has resulted in more than 465 domestic and international arrests of leaders, organizers, and significant facilitators of alien smuggling and/or trafficking; more than 424 U.S. convictions; and more than 368 significant jail sentences imposed, and forfeitures of substantial assets. 

Trial Attorneys Lindsey Roberson and Alexandra Skinnion of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Jeffrey Stitt for the Northern District of New York are prosecuting the case.

Source: United States Attorneys General

An Oklahoma businessman waived his bankruptcy discharge of more than $120 million after an investigation by the Department of Justice’s U.S. Trustee Program (USTP) found that he concealed income and financial accounts in his bankruptcy case.

On July 1, the Bankruptcy Court for the Western District of Oklahoma approved Michael Ray Friday’s voluntary waiver. As a result, Friday remains liable for his debts, and creditors are free to pursue payment from him after the case is closed. 

“Dishonest debtors undermine the integrity of the bankruptcy system,” said U.S. Trustee Ilene Lashinsky of Region 20, which includes the Western District of Oklahoma. “The debtor in this case misrepresented his financial position and sought to exploit our nation’s bankruptcy laws for selfish gain. The USTP will continue to hold accountable those who attempt to abuse the system.” 

Friday filed a chapter 7 liquidation case in August 2024, about nine months after a company that had bought his power line construction business obtained a more than $58 million judgment against him. An investigation by the USTP’s Oklahoma City office found evidence of multiple omissions and misrepresentations in Friday’s bankruptcy documents and testimony. Among other things, Friday failed to disclose several financial accounts and about $400,000 in income. 

Despite Friday’s claims that he was unemployed, his bank accounts showed multiple large cash deposits and withdrawals that he could not explain. He also failed to disclose several expenses, including monthly payments toward his son’s home loan. The USTP also alleged that before he filed for bankruptcy, Friday orchestrated a quick divorce to transfer real estate to his ex-wife and shield it from his creditors.

Friday agreed to voluntarily waive his bankruptcy discharge shortly before a trial was scheduled to begin on the USTP’s complaint to deny him a discharge.

The USTP’s mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders — debtors, creditors and the public. The USTP consists of 21 regions with 82 field offices nationwide and an Executive Office in Washington, D.C. Learn more about the USTP at www.justice.gov/ust. 

Source: United States Attorneys General

A federal grand jury in the District of Maine returned a six-count indictment today charging Shawn Bonneau, 40, of Fullerton, California, with sex trafficking by force, fraud, or coercion and wire fraud. 

According to court documents, from January 2016 through December 2023, Bonneau compelled three adult women to perform commercial sex acts in Maine, and elsewhere, for his financial benefit.  He also used the electronic mail systems to fraudulently obtain funds from another individual at the same time he was engaging in his sex trafficking scheme.

If convicted, Bonneau faces a mandatory minimum penalty of 15 years in prison, with a maximum penalty of life in prison, as well as a maximum penalty of lifetime supervised release. 

Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division and U.S. Attorney Andrew B. Benson for the District of Maine made the announcement.

The U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI) New England Field Office is investigating the case.

Trial Attorney Elizabeth Hutson of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Anne Yereniuk for the District of Maine are prosecuting the case.

Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.

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 13

A federal grand jury in the District of New Hampshire returned an indictment yesterday charging a Chinese national and resident of Lynnfield, Massachusetts, with conspiracy to commit wire fraud for his role in an international gift card fraud conspiracy.

According to the indictment, Jinbin Ren, 38, and co-conspirators, acquired gift cards stolen from victims through romance fraud, elder fraud, hacking, theft, and other scams. The conspirators then used the gift cards to purchase and ship high-value electronics to Ren’s warehouse in Salem, New Hampshire. These electronics were then consolidated and reshipped to China. The conspirators used WeChat, a Chinese messaging application, to coordinate purchases, sales, shipments, and payments through cryptocurrency. Electronics found in Ren’s warehouse were traced to fraudulently obtained gift cards from American victims across multiple states.

The charge of conspiracy to commit wire fraud carries a maximum penalty of 20 years in prison.

Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division, U.S. Attorney Erin Creegan for the District of New Hampshire and Acting Inspector in Charge Jason Buckley of the U.S. Postal Inspection Service’s Boston Division. 

The case is being investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI) Manchester, IRS Criminal Investigations Boston, U.S. Postal Inspection Service Boston, and the Concord, NH Police Department.

Trial Attorneys Emily Cohen and Madison Albrecht of the Justice Department’s Money Laundering, Narcotics and Forfeiture Section and Assistant U.S. Attorney Alexander Chen for the District of New Hampshire are prosecuting the case.

The Money Laundering, Narcotics and Forfeiture Section’s (MNF) mission is to take the profit out of crime, eliminate drug cartels, and protect the U.S. financial system. MNF pursues criminal prosecutions and criminal and civil asset recovery actions involving: financial facilitators who launder profits for criminals; financial institutions and their officers and employees whose actions threaten the U.S. financial system and financial institutions; international money launderers who support transnational organized crime; and the top command and control of international drug trafficking organizations.

MNF’s Money Laundering and Forfeiture Unit investigates and prosecutes sophisticated money laundering schemes involving financial facilitators, gatekeepers, and other individuals and entities laundering criminal proceeds, and litigates complex civil forfeiture cases to recover assets on behalf of victims.

This prosecution is also part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of U.S. law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States.

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

WASHINGTON – Today, the Department of Justice announced the release of updated guidance on federal protections for religious liberty, reaffirming the administration’s commitment to safeguarding the constitutional rights of religious individuals and organizations. The updated memorandum revises and expands upon the department’s 2017 Religious Liberty Guidelines in the light of significant U.S. Supreme Court decisions issued over the past nine years. 

“Religious liberty is one of our Nation’s founding principles and a fundamental right guaranteed by the Constitution,” said Acting Attorney General Todd Blanche. “It is essential that federal agencies fully respect and protect the ability of all Americans to live out their faith in daily life, including in their interactions with the federal government.”

The updated guidance directs all executive departments and agencies to ensure that federal programs, employment practices, contracting, rulemaking, and enforcement actions comply with the Constitution, the Religious Freedom Restoration Act (RFRA) of 1993, Title VII of the Civil Rights Act, and other applicable federal laws. It emphasizes that religious exercise includes not only belief and worship but also religious conduct in daily life, and that such conduct must be reasonably accommodated whenever practicable and permitted by law. 

Key updates in the guidance include:

• Integration of recent Supreme Court precedent. The memo reflects recent judicial decisions clarifying the scope of the First Amendment, RFRA’s broad protection of religious liberty, and the requirement of equal treatment toward religious organizations in government programs. 
• Protection of parental rights. The updated guidance emphasizes the Supreme Court’s recent precedents confirming that the Constitution protects parents’ ability to direct the religious upbringing of their children. 
• Reaffirmation of church autonomy.  he guidance highlights constitutional protections that bar government interference in internal religious governance, including employment. 
• Expanded direction for federal agencies. Agencies are instructed to proactively consider religious‑liberty impacts when developing rules and policies, designate officers to review regulatory proposals for compliance, and ensure enforcement actions respect RFRA and other protections.  Agencies must also consider religious‑liberty concerns raised by the public during notice‑and‑comment periods. 
• Clarified protections in federal employment. The guidance reaffirms that agencies must follow recent Office of Legal Counsel opinions when accommodating religious expression and practice in the workplace, including scheduling accommodations and workplace religious expression. 
• Safeguards for religious organizations in federal contracting and grant programs. Agencies may not condition an individual’s participation in federal programs on relinquishing their religious character or hiring rights.  Religious organizations must be permitted to compete on equal footing with secular organizations. 

The Office of Legal Policy will continue to assist agencies in reviewing proposed actions for compliance with federal religious‑liberty protections. “The new religious liberty guidance instructs agencies on how to protect one of our most fundamental constitutional guarantees: religious liberty, said Assistant Attorney General Dan Burrows for the Office of Legal Policy. “It helps ensure that federal actions do not discriminate on the basis of religion and furthers the protection of both individual practitioners and religious organizations.”

The updated guidance is available HERE. 

Source: United States Attorneys General 6

Source: United States Attorneys General

A federal grand jury returned an indictment yesterday charging three Las Vegas tax return preparers with conspiracy to defraud the United States and willfully preparing false tax returns for clients.

According to the indictment, Jadee Glover owned and operated CashBack Tax Service, a Las Vegas tax preparation business, where Julia Brainerd and Shamoya Perkins worked as tax return preparers. The three allegedly conspired to prepare and file fraudulent income tax returns for clients that in some instances reported completely fictitious businesses and in other instances reported fictitious receipts and expenses for businesses the clients actually owned. Glover, Brainerd, and Perkins allegedly agreed to include false tax credits on client returns based on false assertions that the clients had missed substantial amounts of work at their purported businesses because they had contracted COVID-19 or were providing care to others that had contracted COVID-19. Based on these false claims, the tax returns allegedly generated large tax refunds that clients were not entitled to receive, a portion of which was directed to CashBack Tax Service as tax preparation fees.

According to the indictment, Glover, Brainerd and Perkins each willfully prepared and filed a number of false tax returns for clients in this manner. In addition to their work for CashBack Tax Service, Brainerd allegedly prepared false returns for clients of Royalty Tax Services, a Las Vegas tax preparation business she separately owned and operated, and Perkins allegedly prepared false returns for clients of Jewels Tax Services, a Las Vegas tax preparation business she separately owned and operated.

If convicted, Glover, Brainerd, and Perkins face a statutory maximum sentence of five years in prison for conspiracy and three years in prison for each count of willfully aiding and assisting in the preparation of false tax returns for clients. They also face a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Colin McDonald of the Justice Department’s National Fraud Enforcement Division and First Assistant U.S. Attorney Sigal Chattah for the District of Nevada made the announcement.

IRS Criminal Investigation is investigating the case.

Trial Attorneys Regina Jeon and Megan E. Wessel of the Criminal Division’s Tax Section 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. 

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (‘Fraud Division’). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

Source: United States Attorneys General

Magnolia Diagnostics, a clinical laboratory based in Dallas, Texas, and its owners, John Bains and Kelly Bains, have agreed to pay the United States $19.2 million to resolve allegations that they violated the False Claims Act by billing Medicare for medically unnecessary respiratory pathogen panel testing performed on seniors receiving COVID-19 tests. Magnolia investors will pay an additional $4.8 million to resolve common law claims for unjust enrichment and payment by mistake and claims under the Federal Debt Collection Procedures Act, arising from distributions they received from Magnolia.

“The Justice Department is committed to protecting taxpayer-funded programs and holding accountable those who exploit them,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “We will pursue not only companies that submit false claims and the owners who direct the misconduct, but also investors who receive and retain its financial benefits — especially when vulnerable Americans are exploited for profit.”

“My office is committed to tackling healthcare fraud through the use of all available tools, both through criminal prosecutions and, as here, civil investigations. Too many of our healthcare dollars are lost to fraud, waste, and abuse, but civil settlements like this one help recover valuable healthcare dollars for the American taxpayer,” said U.S. Attorney Ryan Raybould for the Northern District of Texas. “Thank you to my attorneys in partnership with Main Justice in focusing our efforts to recover healthcare dollars. We will continue to use all available tools in this important fight.”

“Protecting seniors and safeguarding Medicare are core to our mission,” said Acting Deputy Inspector General for Investigations Scott J. Lampert of the U.S. Department of Health and Human Services Office of Inspector General. “As alleged, Magnolia Diagnostics showed reckless disregard for medical necessity, beneficiary well-being, and the law — all to boost its profits during a national public health emergency. Today’s resolution reflects our determination to uncover this kind of misconduct and hold accountable those who put greed above patient care.”

The United States alleges that, beginning in April 2020, John Bains and Kelly Bains, acting through Magnolia, devised a strategy to generate significant revenue by requiring senior living communities seeking COVID-19 testing to also obtain expensive respiratory pathogen panels (RPPs). To implement this protocol, Magnolia used prepopulated requisition forms that selected RPP testing and associated diagnosis codes before any individualized clinical assessment occurred. Magnolia allegedly treated provider signatures on those forms as blanket or standing orders authorizing RPPs for all seniors across entire communities or chains of communities, and then used those purported authorizations to perform RPPs on specimens collected during community-wide COVID-19 testing.

The United States further alleges that Magnolia performed RPPs for some communities without a purported standing order, and continued performing RPPs after providers and communities demanded COVID-19-only testing, questioned the panel’s medical necessity or clinical value, or stated that they had not authorized RPPs. At times, John Bains allegedly threatened to withhold COVID-19 testing from communities that asked not to receive RPPs. In at least two instances, John Bains allegedly altered a provider-signed requisition form to expand the apparent scope of the provider’s authorization beyond the facility identified on the original form, and then used those altered forms as standing orders to support RPP testing for residents across multiple facilities not covered by the original form. 

Magnolia also allegedly froze and stored thousands of respiratory specimens, sometimes for weeks or months, before thawing and testing them. Magnolia thereby generated RPP results after they could no longer inform timely treatment, isolation, or infection-control decisions. The United States alleges that, between April 1, 2020, and Sept. 30, 2021, Magnolia, John Bains, and Kelly Bains knowingly submitted, or caused the submission of, false claims to Medicare for thousands of RPPs that lacked medical necessity.

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Northern District of Texas, in conjunction with the U.S. Department of Health and Human Services, Office of Inspector General.

The investigation and resolution of this matter illustrate the government’s emphasis on combating healthcare fraud.  One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at www.oig.hhs.gov/fraud/report-fraud/ or 800-HHS-TIPS (800-447-8477).

This year, the Trump Administration launched the Task Force to Eliminate Fraud and the National Fraud Enforcement Division to enhance the Administration’s war on fraud, waste, and abuse in federal programs. When unscrupulous actors exploit these programs for their own financial gain, they defraud the government, harm the people these programs are designed to aid and protect, and undermine American businesses that play by the rules. The Civil Division’s False Claims Act enforcement plays a critical role in combatting such fraudulent schemes, recovering billions of dollars for the American taxpayers, and holding wrongdoers accountable. False Claims Act matters will continue to be on the forefront of the battle against fraud, and the Civil Division’s False Claims work will support and advance the mission of the Task Force to Eliminate Fraud and the National Fraud Enforcement Division.

The matter was handled by Associate Deputy Attorney General Paul Perkins, Fraud Section Trial Attorney Asha Natarajan, and Assistant U.S. Attorney Brian Stoltz for the Northern District of Texas.

The claims resolved by the settlements are allegations only and there has been no determination of liability.

Note: Read the Settlement with Magnolia Diagnostics, John Bains, and Kelly Bains here.

Read the Settlement with Magnolia Diagnostics Investors here.

Source: United States Attorneys General 3

The Justice Department’s Antitrust Division announced today that it has returned to implementing targeted Second Request investigations to expedite merger review. The Division is also publishing a model timing agreement in connection with this release.

“This Department of Justice is working to eliminate bureaucratic burdens while still preserving the integrity of Second Request investigations, which are aimed at protecting American consumers and affordability,” said Associate Attorney General Stanley E. Woodward Jr. “A more targeted process strengthens the Department’s ability to appropriately enforce antitrust laws through focusing its review. This change will allow for quicker and more efficient review of proposed transactions; more effective use of taxpayer resources; and above all, helps the Department do its job to safeguard a competitive marketplace while keeping America open for business.”

Under the Hart-Scott-Rodino (HSR) Act, mergers or acquisitions above certain numerical thresholds must notify the Federal Trade Commission (FTC) and the Antitrust Division prior to consummating a reportable transaction. The FTC or the Division may require the merging parties to submit additional information and documents relevant to the proposed transaction. This is generally referred to as a “Second Request.”

Historically, the Division implemented targeted Second Request investigations to reduce administrative burden and focus government resources on the specific aspects of proposed transactions that raise competitive concerns. Under a targeted Second Request investigation, the Division and the merging parties enter into a timing agreement that prioritizes the submission of certain information and documents called for by the Second Request that could resolve the Division’s questions prior to full compliance. In exchange, the Division benefits from receiving information and documents on an efficient schedule with greater certainty on the timing of key milestones to facilitate review. After reviewing this priority information and carefully analyzing potential competitive concerns, the Division may close its investigation, modify the Second Request, or require full compliance with the Second Request.

This return to historical practice is part of the Division’s commitment to reducing the burden and costs on merging parties without compromising the Division’s ability to thoroughly investigate transactions that raise potential competitive concerns.

Through these efforts, the Division is committed to promoting competition and protecting American consumers without imposing undue costs on the workings of the free market. The Division remains open to good faith negotiations regarding modifications to Second Requests in all cases. The Division will continue to require full compliance in circumstances in which broader information is necessary to reach an enforcement decision.

Source: United States Attorneys General 1

A Bario Azteca gang member pleaded guilty today in federal court in El Paso, Texas, for being part of a racketeering and drug trafficking conspiracy which included acting as the lookout in the murders by Barrio Azteca members of a U.S. Consulate Juarez employee, her husband, and the husband of another U.S. consulate employee.

Enrique Guajardo Lopez, also known as “Kiki,” 59, of Juarez, Mexico, pleaded guilty today to racketeering conspiracy and conspiracy to distribute and import drugs. A sentencing date has not yet been set. Lopez faces a maximum penalty of life in prison. 

According to court documents and information presented in court, Lopez is one of 35 Barrio Azteca members and associates based in the United States and Mexico who were charged in the third superseding indictment in 2011 for allegedly committing various criminal acts, including racketeering, narcotics distribution and importation, retaliation against persons providing information to U.S. law enforcement, extortion, money laundering, obstruction of justice, and murder. Of the 35 defendants, 10 Mexican nationals were charged for their role in the March 13, 2010 murders of U.S. Consulate employee Leslie Ann Enriquez Catton; her husband Arthur Redelfs; and Jorge Alberto Salcido Ceniceros, the husband of a U.S. Consulate employee. All the defendants have been apprehended, and 30 have pleaded guilty. Three defendants have been convicted at trial and one committed suicide before the conclusion of his trial. One defendant remains pending trial. 

The Barrio Azteca (BA) is a violent street and prison gang that began in the late 1980s and expanded into a transnational criminal organization. In the 2000s, the BA formed an alliance in Mexico with “La Linea,” which is part of the Juarez Drug Cartel (also known as the Vincente Carrillo Fuentes Drug Cartel or VCF). The purpose of the BA-La Linea alliance was to battle the Chapo Guzman Cartel and its allies for control of the drug trafficking routes through Juarez and Chihuahua. The drug routes through Juarez, known as the Juarez Plaza, are important to drug trafficking organizations because they are a principal illicit drug trafficking conduit into the United States. The gang has a militaristic command structure and includes captains, lieutenants, sergeants, and soldiers — all with the purpose of maintaining power and enriching its members and associates through drug trafficking, money laundering, extortion, intimidation, violence, threats of violence, and murder. The BAs were directly involved in drug trafficking, and BA members would also conduct enforcement operations for VCF, including acting as hit men to commit murders and assaults. On the day of the Consulate murders, Lopez acted as a lookout for other BA members who targeted and murdered the victims. Enriquez was four months pregnant, and her fetus was also killed. 

Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division, U.S. Attorney Justin R. Simmons for the Western District of Texas, Acting Special Agent in Charge Conal Whetten of the FBI El Paso Field Office, and Acting Special Agent in Charge Mark Putnam of the Drug Enforcement Administration (DEA) El Paso Field Division made the announcement.

This case is being prosecuted by Deputy Chief Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section, Trial Attorney Amy Schwartz of the Criminal Division’s Violent Crime and Racketeering Section, and Assistant U.S. Attorney Steven Spitzer of the Western District of Texas. The U.S. Attorney’s Office for the District of New Mexico and the Criminal Division’s Offices of International Affairs and Enforcement Operations provided significant assistance in this case.

The case was investigated by the FBI El Paso Field Office, Albuquerque Field Office (Las Cruces Resident Agency); DEA Juarez; and DEA El Paso. Special assistance was provided by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; Immigration and Customs Enforcement; the U.S. Marshals Service; U.S. Customs and Border Protection; Federal Bureau of Prisons; U.S. Diplomatic Security Service; the Texas Department of Public Safety; the Texas Department of Criminal Justice; El Paso Police Department; El Paso County Sheriff’s Office; El Paso Independent School District Police Department; Texas Alcohol and Beverage Commission; New Mexico State Police; Dona Ana County, New Mexico Sheriff’s Office; Las Cruces, New Mexico Police Department; Southern New Mexico Correctional Facility and Otero County Prison Facility New Mexico.