FOUR CONTRACTORS FINED FOR EXPOSING WORKERS TO SAFETY HAZARDS

FROM:  U.S. DEPARTMENT OF LABOR
US Labor Department’s OSHA fines 4 contractors more than $460,000 for exposing workers to falls, other safety hazards at Jersey City, NJ, construction site
Concrete contractors cited with egregious willful violations
JERSEY CITY, N.J. — The U.S. Department of Labor's Occupational Safety and Health Administration has cited four New Jersey contractors working on a 20-story building in Jersey City for exposing workers to fall hazards following a December 2011 inspection during which inspectors observed employees working on the fourth floor without personal fall protection or fall protection systems. Altura Concrete Inc. and Nathil Corp., both of Hasbrouck Heights, and White Diamonds Properties LLC and Blade Contracting Inc., both of Jersey City, face total proposed fines of $463,350.

"Year after year, falls remain the leading cause of death in the construction industry, accounting for almost one in every three construction worker deaths," said Assistant Secretary of Labor for Occupational Safety and Health Dr. David Michaels. "We know how to prevent falls, and employers have a clear responsibility to provide the right equipment and procedures. When working at heights, everyone needs to plan ahead to get the job done safely, provide the right equipment and train workers to use the equipment safely. OSHA's message is simple: Safety pays and falls cost."

Altura Concrete, Inc. and Nathil Corp., the concrete contractors for the foundation and superstructure of the building, directed 75 employees on-site. The two companies have been cited for five willful violations — including four instance-by-instance (that is, egregious) violations — for failing to protect workers from fall hazards created by open sides and edges on the fourth, sixth, seventh, eighth, 10th and 13th floors, as well as protect workers from fall hazards created by the misuse of self-supporting stepladders. A willful violation is one committed with intentional knowing or voluntary disregard for the law's requirements, or with plain indifference to worker safety and health. The citations carry $315,000 in penalties.

The companies also have received citations for nine serious violations, including failing to provide personal protective equipment, provide a cap for an acetylene tank in storage, store cylinders in an upright position, separate oxygen and acetylene tanks, provide fall protection for workers installing ribs, provide protection from protruding rebar, maintain shoring/reshoring plans on-site, provide railings on stairs, protect workers from fall hazards created by open holes, secure the cover over a floor hole and mark the floor hole cover. The citations carry $40,500 in penalties. A serious violation occurs when there is substantial probability that death or serious physical harm could result from a hazard about which the employer knew or should have known.

One other-than-serious violation has been cited for failing to record an injury on the OSHA 300 log. The citation carries a $900 penalty. An other-than-serious violation is one that has a direct relationship to job safety and health, but probably would not cause death or serious physical harm.

General contractor White Diamonds Properties, with seven employees on-site, has been issued citations for two willful violations involving failing to protect workers from fall hazards, as well as citations for five serious violations related to improper storage of compressed gas cylinders, unprotected rebar and failing to have drawings for shoring/reshoring on-site. The citations carry $95,400 in penalties.
Masonry contractor Blade Contracting, with 21 employees on-site, has been cited with three serious violations for failing to protect workers from fall hazards, properly use a scaffold and inspect scaffold components for defects. The citations carry $11,550 in penalties.

"A project of this magnitude clearly needs an aggressive injury and illness prevention plan in place to prevent falls and other hazards," said Robert Kulick, OSHA's regional administrator in New York. "When management and workers together proactively identify and eliminate hazardous conditions, workers are better protected."

In April, Secretary of Labor Hilda L. Solis announced a new campaign to provide employers and workers with lifesaving information and educational materials about working safely from ladders, scaffolds and roofs in an effort to prevent deadly falls in the construction industry. In 2010, more than 10,000 construction workers were injured as a result of falling while working from heights, and more than 250 workers were killed. OSHA's fall prevention campaign was developed in partnership with the National Institute of Occupational Safety and Health and NIOSH's National Occupational Research Agenda program.

WISCONSIN CO. SETTLES COMPLAINT OF IMPROPER ADMINISTRATION OF LIVESTOCK MEDICATIONS

FROM:  U.S. DEPARTMENT OF JUSTICE
Tuesday, June 26, 2012
US Settles Complaint Against Wisconsin Livestock Company for Improper Medication Practices Government Asserts That Adulterated Food Was Introduced into Interstate Commerce
The United States has filed suit in the U.S. District Court for the Eastern District of Wisconsin against Dan Nolan Livestock LLC. and its owner Daniel W. Nolan to block them from violating the Food, Drug and Cosmetic Act (FDCA) in connection with their alleged unlawful use of new animal drugs in cows slaughtered for food.  The Justice Department filed the suit on behalf of the Food and Drug Administration (FDA).

The defendants have agreed to settle the litigation and be bound by a Consent Decree of Permanent Injunction that enjoins them from committing violations of the FDCA.   The proposed consent decree has been filed with the court and is awaiting judicial approval.

The government’s action results from a series of inspections of the Bonduel, Wis.-based livestock company, which revealed, according to the FDA, that the defendants failed to maintain treatment and sales records for their animals and that, in the previous year, they sold an animal for slaughter containing excessive and illegal antibiotic drug residues in its edible tissues.   The complaint also alleges that the defendants have dispensed prescription new animal drugs on more than one occasion without a lawful order from a veterinarian.

The complaint states that excess drug residues in animal tissues can harm consumers by causing allergic reactions and by contributing to the spread of antibiotic-resistant bacteria.   Both FDA and the U.S. Department of Agriculture (USDA) have warned the defendants that their conduct violates the FDCA.   Nonetheless, according to the complaint, the most recent FDA inspection, concluded in November 2011, documented the continuing nature of the defendants’ violations, and established their responsibility for the illegal drug residues found in edible tissue sampled by the USDA in January 2011.

The government’s complaint asserts that the defendants have introduced adulterated food into interstate commerce, caused new animal drugs to become misbranded and adulterated while held for sale after shipment in interstate commerce, and failed to comply with statutory and regulatory requirements concerning the extra-label use of new animal drugs.   The consent decree, to which the defendants agreed, requires that Dan Nolan Livestock cease operations and be allowed to resume its business only after it has documented to the FDA’s satisfaction that it has corrected all of the problems observed by the agency’s inspections and has instituted procedures to ensure that there will be no recurrence of those or any other violations that could present a threat to the consuming public.

“When farms fail to maintain appropriate controls concerning the medication of food-producing animals, they jeopardize the public health,” said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division.   “Today’s filing is intended to make certain that Dan Nolan Livestock will put in place the procedures and documentation necessary to help ensure that consumers receive safe foods for their family table.”

Mr. Delery thanked the FDA for referring the case to the Department of Justice.   Andrew Clark, of the Consumer Protection Branch, prosecuted the case together with Sonia Nath of FDA’s Office of the General Counsel.   The U.S. Attorney’s Office for the Eastern District of Wisconsin joined in the prosecution of the matter.

COMPANY TO PAY $2 MILLION TO SETTLE DISCRIMINATION CASE INVOLVING 795 JOB APPLICANTS

FROM:  U.S. DEPARTMENT OF LABOR
Baldor Electric to pay $2 million to settle hiring discrimination case with US Labor Department
Agreement includes back wages and interest, some job offers, for 795 female and minority applicants denied positions at Fort Smith, Ark., facility

WASHINGTON — The U.S. Department of Labor's Office of Federal Contract Compliance Programs today announced that Baldor Electric Co. has agreed to settle allegations of systemic discrimination stemming from the company's applicant screening process at its facility in Fort Smith, Ark. OFCCP investigators determined that the process violated Executive Order 11246 by creating a disparate impact on women and minorities. As a result, 795 qualified women, African-Americans and job seekers of Asian and Hispanic descent were denied the opportunity to advance to the interview stage when applying for production and laborer positions.

"I am pleased with this settlement, which reflects a mutual commitment between the Department of Labor and the leadership of Baldor to ensure that all workers have a fair and equal shot at competing for good jobs," said Secretary of Labor Hilda L. Solis. "Our shared goal is to create lasting change so that anyone who comes looking for work at Baldor can be sure that discrimination will never be a factor in determining who gets the job."

Under the terms of the conciliation agreement negotiated by OFCCP, Baldor will pay a total of $2 million in back wages and interest to the affected individuals and will make at least 50 job offers to members of the original class as positions become available. The company also has agreed to undertake extensive self-monitoring measures to ensure that all hiring practices fully comply with the law, including record-keeping requirements.

"Discrimination is preventable when employers have certain processes in place and see to it that they are followed," said OFCCP Director Patricia A. Shiu. "That's why it's so important for federal contractors to implement their affirmative action programs, keep accurate employment records and commit to ending barriers to fair employment. A proactive strategy is the best way to guarantee that all workers have an equal opportunity to succeed in the workplace. Plus, it's the law."

Baldor Electric, which is owned by Zurich, Switzerland-based ABB Ltd., manufactures industrial motors and generators. The company currently holds federal contracts worth more than $18 million with the General Services Administration and the U.S. departments of Veterans Affairs and Justice. From 1997 to 2010, Baldor received $79 million to produce batteries and generators for federal agencies including GSA, the Justice Department and the Army.

LOAN OFFICER FOR MORTGAGE CO. GETS PRISON TIME FOR ROLE IN FRAUD SCHEME

FROM:  U.S. DEPARTMENT OFF JUSTICE
Monday, June 25, 2012
Loan Officer Sentenced to 54 Months in Prison for Role in Mortgage Fraud Scheme That Resulted in More Than $9.2 Million in Losses
WASHINGTON – A loan officer for a Florida mortgage company was sentenced today in Miami to 54 months in prison for his role in a mortgage fraud scheme, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, and Department of Housing and Urban Development (HUD) Inspector General David A. Montoya.

Alejandro aka “Alex” Curbelo, 32, of Miami was sentenced before U.S. District Judge Joan Lenard.  In addition to his prison term, Curbelo was sentenced to three years of supervised release and was ordered to pay $9.2 million in restitution to HUD.  Curbelo was indicted and arrested on Jan. 24, 2012, and pleaded guilty on April 16, 2012, to one count of conspiracy to commit wire fraud.

According to court documents, from approximately February 2006 through July 2008, Curbelo was employed as a loan officer for Great Country Mortgage Bankers.  In this role, he assisted in the sales and financing of condominium units at two complexes in Florida – Dadeland Place and Pelican Cove on the Bay.  The borrowers who Curbelo assisted at these two complexes were unqualified to obtain mortgage loans due to insufficient income, high levels of debts and outstanding collections.

Curbelo admitted that he conspired with others to create and submit false and fraudulent Federal Housing Administration (FHA) mortgage loan applications and accompanying documents to the lender on behalf of the unqualified borrowers.  Curbelo and others offered the borrowers cash back after closing as an incentive for them to purchase the units.  These payments were not disclosed properly during the loan application process.  According to court documents, the closing costs were paid on behalf of the borrowers by interstate wire.  After the loans closed, the unqualified borrowers failed to meet their monthly mortgage obligations and defaulted on their loans.

According to court documents, when the loans went into foreclosure, HUD, which insured the loans, was required to take title to the units and pay the outstanding loan balances to the lenders.  As of the date of the sentencing hearing, HUD paid more than $9.2 million for losses related to Curbelo’s conduct.

This case was investigated by the HUD Office of Inspector General, as participants in the Miami Mortgage Fraud Strike Force.  Trial Attorney Mary Ann McCarthy of the Fraud Section in the Justice Department’s Criminal Division is prosecuting the case with assistance from the U.S. Attorney’s Office for the Southern District of Florida.
               
This prosecution is part of efforts under way by the Financial Fraud Enforcement Task Force.  President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.  The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.

SEC GETS RESTRAINING ORDER AND ASSET FREEZE ON ALLEGED $100 MILLION PONZI SCHEME

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C., June 25, 2012 – The Securities and Exchange Commission today obtained a temporary restraining order and asset freeze against a Utah man and company charged with operating a real estate-based Ponzi scheme that bilked $100 million from investors nationwide.

The SEC’s complaint filed in U.S. District Court for the District of Utah, names Wayne L. Palmer and his firm, National Note of Utah, LC, both of West Jordan, Utah. According to the complaint, Palmer told investors that their money would be used to buy mortgage notes and real estate assets, or to make real estate loans. More than 600 individuals invested, lured by promises of annual returns of 12 percent, the SEC alleged.

“Palmer promised double-digit returns at his real estate seminars, where investors learned the hard way about his lies and deceit,” said Kenneth Israel, Director of the SEC’s Salt Lake City Regional Office.

Palmer told investors that their money would be completely secure and that National Note had a perfect record, having never missed paying principal or interest on its promissory notes. Glossy marketing materials that Palmer provided to some investors showed that National Note returns did not fluctuate and stated that investors were guaranteed payment even if property owners missed payment on mortgage loans that National Note held.

Contrary to Palmer’s claims, National Note used most of the money it took in from new investors to pay earlier investors, making it a classic Ponzi scheme, the SEC alleged. It said that since 2009, National Note would not have been able survive but for the influx of new investor funds, and that its payments to investors all but stopped in October 2011. According to the SEC’s complaint, Palmer reassured investors that the money would be forthcoming, and continued to solicit new investors in National Note without disclosing the fact that it is delinquent in making payments to existing investors.

The SEC’s complaint charges National Note and Palmer with violating the anti-fraud and securities registration provisions of U.S. securities laws. Palmer also faces charges that he operated as an unregistered broker-dealer.

Scott Frost, Paul Feindt, Matthew Himes and Alison Okinaka of the SEC’s Salt Lake Regional Office conducted the investigation; Thomas Melton will lead the litigation.

COMPANY TO PAY $10.5 MILLION TO RESOLVE DISABILITY-BASED HOUSING DISCRIMINATION LAWSUIT

FROM:  U.S. JUSTICE DEPARTMENT
Monday, June 25, 2012
Justice Department Obtains Landmark $10.5 Million Settlement to Resolve Disability-Based Housing Discrimination Lawsuit
WASHINGTON – The Justice Department today announced its largest-ever disability-based housing discrimination settlement fund to resolve allegations that JPI Construction L.P. and six other JPI entities (collectively “JPI”) based in Irving, Texas, discriminated on the basis of disability in the design and construction of multifamily housing complexes throughout the United States.

Under the settlement, which was approved today by the U.S. District Court for the Northern District of Texas, JPI will pay $10,250,000 into an accessibility fund to provide retrofits at properties built by JPI and to increase the stock of accessible housing in the communities where these properties are located.  The settlement also requires JPI to pay a $250,000 civil penalty.  This is the largest civil penalty the Justice Department has obtained in any Fair Housing Act case.

“Today’s historic settlement demonstrates the Justice Department’s commitment to protecting the fair housing rights of persons with disabilities,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division.  “Builders of multifamily housing must consider accessibility at the outset, or they risk significantly greater expense to retrofit properties.  As a result of this settlement, multifamily housing complexes will be retrofitted to comply with the Fair Housing Act and the Americans with Disabilities Act, and persons with physical disabilities will be afforded an equal opportunity to live in and visit these properties.”

“Equal access to housing for persons with disabilities is an important right protected by federal law,” said U.S. Attorney for the Northern District of Texas Sarah R. Saldaña.  “This settlement will help eliminate barriers and send a clear message that disability discrimination will not be tolerated.  Disabled residents should know that this district remains committed to protecting their fair housing rights.”

The lawsuit was filed in March 2009, after the Justice Department conducted an investigation and found accessibility barriers at various JPI properties.  Since 1991, JPI and its affiliates built 210 multifamily properties in 26 states and the District of Columbia; trial involving 32 of JPI’s properties was scheduled to begin July 9, 2012.
In addition to the $10.5 million payment, the consent order prohibits JPI from discriminating on the basis of disability in the future and from interfering with or preventing the retrofitting that will take place at the JPI properties.  Although JPI is no longer in the multifamily development and construction business, if JPI reenters the business, it is required to design and construct covered multifamily dwellings to fully comply with the requirements of the Fair Housing Act and the Americans with Disabilities Act.

The JPI entities that are responsible for paying the settlement amount are: JPI Construction L.P.; Multifamily Construction L.L.C.; JPI Apartment Development L.P., dba JPI Campus Quarters; Lifestyle Apartment Development Service L.L.C.; Jefferson Bend L.P., dba Jefferson at Mission Gate Apartments; Jefferson Lake Creek L.P., dba Jefferson Center Apartments; and Apartment Community Realty L.L.C.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status.  Individuals who believe that they may have been victims of housing discrimination should call the Housing Discrimination Tip Line (1-800-896-7743) or email the Justice Department at fairhousing@usdoj.gov.  Such persons may also contact the U.S. Department of Housing and Urban Development at 1-800-669-9777.

Fair housing enforcement is a priority of the Civil Rights Division. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.