ANTITRUST AT DOJ ANNOUNCES $1.861 BILLION IN CRIMINAL FINES AND PENALTIES COLLECTED

FROM:  U.S. JUSTICE DEPARTMENT
ANTITRUST DIVISION ANNOUNCES FISCAL YEAR TOTAL IN CRIMINAL FINES COLLECTED

The Department of Justice collected $1.861 billion in criminal fines and penalties resulting from Antitrust Division prosecutions in the fiscal year that ended on Sept. 30, 2014. Contributing in part to one of the largest yearly collections for the division, five of the companies paid in full penalties that exceeded $100 million, including a $425 million criminal fine levied against Bridgestone Corp., the fourth-largest fine the Antitrust Division has ever obtained.  The second-largest fine collected was a $195 million criminal fine levied against Hitachi Automotive Systems Ltd.  The three additional companies that paid fines and penalties exceeding $100 million were Mitsubishi Electric Corp. with $190 million, Toyo Tire & Rubber Co. Ltd. with $120 million and JTEKT Corp. with $103.2 million. The collection total also includes penalties of more than $561 million received as a result of the division’s LIBOR investigation, which has been conducted in cooperation with the Justice Department’s Criminal Division. In addition, in the last fiscal year the division obtained jail terms for 21 individual defendants, with an average sentence of 26 months, the third-highest average ever.

“The size of these penalties is an unfortunate reminder of the powerful temptation to cheat the American consumer and profit from collusion,” said Assistant Attorney General Bill Baer for the Antitrust Division.  “We remain committed to ensuring that corporations and individuals who collude face serious consequences for their crimes.”

DOJ ANNOUNCES SETTLEMENT WITH HEALTHCARE COMPANY IN HIV DISCRIMINATION CASE

FROM:  U.S. JUSTICE DEPARTMENT 

Thursday, January 15, 2015

Justice Department Settles with Ohio Healthcare System Over HIV Discrimination

The Justice Department announced today that, as part of its Barrier-Free Health Care Initiative, the department has reached a settlement with Genesis Healthcare System (Genesis) to resolve claims that Genesis discriminated against a woman with HIV in violation of the Americans with Disabilities Act (ADA).  Genesis operates a healthcare system that includes a hospital, a network of more than 300 physicians, and multiple outpatient health care centers throughout southeastern Ohio.

Title III of the ADA prohibits public accommodations, such as healthcare providers, from discriminating against people with disabilities, including HIV.  Following an investigation, the department found that Genesis discriminated against a woman with HIV when one of its primary care physicians refused to accept her as a new patient because of her HIV.  Genesis refused to accept her as a patient despite the fact that she was only seeking a general practitioner for medical care unrelated to HIV.  As a result, the woman had to seek medical treatment at the local emergency room for non-emergent health issues.  The department’s investigation revealed that it was this doctor’s practice to refer any patients with HIV seeking a primary care physician to an HIV specialist.

“Exclusion of patients with HIV creates unfair and illegal barriers to medical care for people with HIV,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division.  “Under the law, healthcare providers cannot deny care or refer a patient to a specialist unless the decision is based on current medical knowledge about the particular patient and condition, not on stereotypes about a disability.  The ADA prohibits these types of discriminatory barriers, and the Justice Department is committed to tearing them down.”

Under the settlement, Genesis Healthcare System must pay $25,000 to the victim of discrimination, and $9,000 as a civil penalty.  In addition, it must train its staff on the ADA, develop and implement a non-discrimination policy, and report to the department every time a person with HIV (or who is suspected of having HIV) is denied or discharged as a patient, with a written justification for the decision.

This settlement agreement is part of the department’s Barrier-Free Health Care Initiative, a partnership of the Civil Rights Division and U.S. Attorney’s offices across the nation to target enforcement efforts on a critical area for individuals with disabilities: access to health care.

SANDEN CORP. PLEADS GUILTY TO PRICE FIXING REGARDING AUTOMOBILE PARTS

FROM:  U.S. JUSTICE DEPARTMENT

Tuesday, January 27, 2015

Sanden Corp. Agrees to Plead Guilty to Price Fixing on Automobile Parts Installed in U.S. Cars

Sanden Corp., an automotive parts manufacturer based in Gunma, Japan, has agreed to plead guilty and to pay a $3.2 million criminal fine for its role in a conspiracy to suppress and eliminate competition for the purchase of compressors used in air conditioning systems sold to Nissan North America Inc. for installation in vehicles manufactured and sold in the United States and elsewhere, the Department of Justice announced today.

According to a one-count felony charge filed today in U.S. District Court for the Eastern District of Michigan in Detroit, Sanden conspired to fix the prices of compressors sold to Nissan.  In addition to the criminal fine, Sanden has agreed to cooperate in the department’s ongoing investigation.  The plea agreement is subject to court approval.

“Today’s charge is the latest in the Antitrust Division’s ongoing investigation of automobile parts suppliers,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program.  “The division continues to vigorously prosecute companies and individuals that seek to maximize their profits through illegal, anticompetitive means.”

The department said that Sanden and its co-conspirator held meetings and conversations to discuss and agree upon the bids and price quotations submitted to Nissan for the purchase of compressors used in automotive air conditioning systems.  Sanden’s involvement in the conspiracy lasted from as early as August 2008 until at least April 2009.

Including Sanden, 33 companies and 50 individuals have been charged in the department’s ongoing investigation into price fixing and bid rigging in the automotive parts industry.  All of the charged companies have pleaded guilty or have agreed to plead guilty and to pay a combined total of more than $2.4 billion in fines.

Sanden is charged with fixing prices in violation of the Sherman Act, which carries a maximum penalty of a $100 million criminal fine for corporations.  The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI.  Today’s charges were brought by the Antitrust Division’s New York Office and the FBI’s New York Field Office, with the assistance of the FBI headquarters’ International Corruption Unit.

Labor Department News Releases Update

Labor Department News Releases Update

$5.15 BILLION SETTLEMENT REACHED TO CLEANUP CONTAMINATED LAND

FROM:  U.S. JUSTICE DEPARTMENT

Friday, January 23, 2015

Historic $5.15 Billion Environmental and Tort Settlement with Anadarko Petroleum Corp. Goes into Effect

A historic settlement reached with Anadarko Petroleum Corp. and Kerr McGee has gone into effect, allowing funds to be disbursed for cleanups across the country, announced Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division, U.S. Attorney Preet Bharara of the Southern District of New York, and Assistant Administrator Cynthia Giles of the U.S. Environmental Protection Agency (EPA).

This settlement resolves fraudulent conveyance claims brought by the United States and the Anadarko Litigation Trust, the trust against Anadarko Petroleum Corporation and its affiliates, the defendants, in the bankruptcy of Tronox Inc. and its subsidiaries.  Today, pursuant to the settlement agreement, the defendants paid $5.15 billion, plus interest, to the trust.  The trust is expected to distribute more than $4.4 billion to fund environmental clean-up and for environmental claims.  The settlement constitutes the largest payment for the clean-up of environmental contamination ever obtained in a lawsuit brought by the Department of Justice.

 “This recovery will lead to cleanups across the country that will undo lasting damage to the environment, including contamination of tribal lands, by Kerr-McGee’s businesses,” said Assistant Attorney General Cruden.  “This result emphatically demonstrates the Justice Department’s commitment to environmental justice for all Americans, and it fulfills the department’s promise to hold accountable those who pollute and those who try to foist their responsibility for cleanup on the American taxpayer.”

“The Kerr-McGee Corporation spent decades despoiling our nation’s natural resources, leaving a toxic legacy for communities across the nation, from Sidney, New York, to the Navajo nation,” said U.S. Attorney Bharara.  “Then, Kerr-McGee tried to escape the consequences of its misdeeds by transferring its most valuable assets to affiliates, leaving an insolvent shell behind, unable to pay its environmental liabilities.  As today’s historic payment shows, the government will not allow polluters to escape paying for the damage they inflict on our land, water and people, and we will hold accountable those who attempt to shield themselves from responsibility behind improper corporate transactions.”

“If you pollute the environment, you should be responsible for cleaning it up,” said EPA Assistant Administrator Giles.  “From the Navajo Nation to low income neighborhoods across America, more than $4.4 billion will be put to work cleaning up toxic pollution.  This historical environmental cleanup will have a lasting impact on American communities.”

As noted by U.S. District Judge Katherine B. Forrest, in approving the settlement in November, this case arises from a “series of transactions by the Kerr-McGee Corp. that resulted in the spin-off of Tronox, which Kerr-McGee left saddled with the massive environmental and tort liabilities it had accumulated over the course of decades of operating in the chemical, mining, and oil and gas industries, but without sufficient assets with which to address these liabilities.”  For this reason, as the district court explained, both the United States and the Tronox estate, now represented by the trust, brought fraudulent conveyance claims against the defendants.

On April 3, 2014, the United States announced this settlement resolving the claims against the defendants, which was then subject to a period of public comment and judicial approval.  After receiving and considering comments from the public, the United States sought approval of the settlement agreement, and on Nov. 10, 2014, the district court approved the settlement as “fair and reasonable.”  The deadline for any appeals from the district court’s decision passed on Jan. 20, 2015, without any appeals having been taken and therefore the settlement agreement went into effect on Jan. 21, 2015.

Today, under the settlement agreement, the defendants paid $5.15 billion, plus interest from Apr. 3, 2014, to the trust.  Pursuant to the terms of prior agreements in the Tronox bankruptcy, the government estimates that more than $4.4 million of this recovery will be paid to the United States, state governments, the Navajo nation and four environmental response trusts created in the bankruptcy to clean up contaminated property.  An estimated more than $600 million will be paid to a trust created to pay tort victims.

This case was handled by the Environmental Protection Unit and the Tax and Bankruptcy Unit of the Office’s Civil Division.  Assistant U.S. Attorney Robert William Yalen is in charge of the case, which he handled along with Assistant U.S. Attorney Joseph Pantoja and Alan S. Tenenbaum, Katherine Kane, Frederick S. Phillips, Marcello Mollo, and Erica Pencak of the Department of Justice’s Environment and Natural Division. Resources

AUCTION HOUSE, PRESIDENT PLEAD GUILTY FOR ROLES IN WILDLIFE SMUGGLING CONSPIRACY

FROM:  U.S. JUSTICE DEPARTMENT 

Wednesday, January 14, 2015

Auction House and Company’s President Plead Guilty to Wildlife Smuggling Conspiracy

Elite Estate Buyers Inc., doing business as Elite Decorative Arts, an auction house located in Boynton Beach, Florida, and the company’s president and owner, Christopher Hayes, pleaded guilty today in U.S. District Court in Miami to an illegal wildlife trafficking and smuggling conspiracy in which  the auction house sold rhinoceros horns and objects made from rhino horn, elephant ivory and coral that were smuggled from the United States to China.

The guilty plea was announced today by Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division, U.S. Attorney Wifredo Ferrer for the Southern District of Florida and Director Dan Ashe of the U.S. Fish and Wildlife Service (FWS).  The prosecution of Elite and Hayes is part of Operation Crash, a continuing effort by the Special Investigations Unit of the FWS’ Office of Law Enforcement in coordination with the Department of Justice to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns.

According to records filed in court, Hayes and his company sold six endangered black rhino horns.  Two of the horns were sold for $80,500 to a Texas resident involved in smuggling the horns to China.  Two more rhino horns were purchased by an undercover FWS special agent.  Another undercover agent with the FWS consigned two horns for auction.

As part of today’s plea agreement, Hayes and Elite have admitted to being part of a far reaching felony conspiracy in which the company helped smugglers traffic in endangered and protected species in interstate and foreign commerce, and falsified records and shipping documents related to the wildlife purchases in order to avoid the scrutiny of the FWS and U.S. Customs and Border Protection.  Elite aided foreign buyers by directing them to third-party shipping stores that were willing to send the wildlife out of the country with false paperwork.  

“In pleading guilty this auction house is admitting that it played a key role in the supply chain of rhino horn and elephant ivory to wildlife smugglers and foreign markets,” said Assistant Attorney General Cruden.  “Auction houses and art galleries should be especially mindful of abiding by the laws designed to prevent the extinction of these species rather than devoting their expertise to help smugglers evade the law.  This prosecution is the result of a sophisticated and long-ranging investigation into every aspect of the illegal wildlife trade and we will hold all law violators fully accountable for their actions.”

“Not only did Hayes and his company illegally profit from obtaining rhinoceros horns and elephant ivory, but his greed and indifference contributed to the senseless slaughter of these animals,” said U.S. Attorney Ferrer.  “Trafficking in endangered and threatened species is illegal.  Together with our law enforcement partners, we will strictly enforce the laws that protect our environment and our wildlife.”

“As this guilty plea demonstrates, ivory and rhino horn trafficking is not just a problem for other countries to solve,” said Director Ashe.  “The ongoing slaughter of rhinos and elephants in Africa is driven by rising consumer demand and United States citizens like Christopher Hayes are intimately involved in illegal trade both here and abroad.  We will continue to work with international law enforcement agencies and the international community to apprehend and bring to justice those whose callous disregard threatens the survival of the world’s wildlife heritage.”

Elite and Hayes also admitted to selling items made from rhinoceros horn, elephant ivory and coral to an antiques dealer in Canada, who they then directed to a local shipper that agreed to mail the items in Canada without required permits.  The defendants also admitted to selling raw rhinoceros horns, which they believed were from a black rhinoceros, to a person in Texas.

Hayes, 55, of Wellington, Florida, will be sentenced by Judge Daniel T. K. Hurley on a date yet to be determined.  The maximum penalty is five years in prison and a maximum fine of $500,000 for Elite and $250,000 for Hayes, or up to twice the gross gain.  Elite has agreed to pay a $1.5 million fine and to no longer engage in the receipt, consignment or sale of endangered or protected wildlife, or items containing endangered or protected wildlife, including items containing rhinoceros horn, elephant ivory and red coral.    

The investigation is continuing and is being handled by the FWS Office of Law Enforcement, the U.S. Attorney’s Office for the Southern District of Florida and the Environment and Natural Resources Division’s Environmental Crimes Section.  The government is represented by Assistant U.S. Attorney Thomas Watts-FitzGerald for the Southern District of Florida and Trial Attorney Gary N. Donner of the Environmental Crimes Section.

DOJ, JANITORIAL COMPANY REACH SETTLEMENT IN IMMIGRATION-RELATED DISCRIMINATION CLAIM

FROM:  U.S. JUSTICE DEPARTMENT 

Thursday, January 15, 2015

Justice Department Settles Immigration-Related Discrimination Claim Against Janitorial Company

The Justice Department announced that it reached a settlement agreement with U.S. Service Industries (USSI), a janitorial company headquartered in Bethesda, Maryland, and operating in Florida, Maryland, Virginia and Washington, D.C.  The agreement resolves allegations that USSI violated the Immigration and Nationality Act (INA) by discriminating against work-authorized individuals who are not U.S. citizens.  

The Justice Department’s investigation found that USSI required workers who are not U.S. citizens to produce documents issued by the Department of Homeland Security as a condition of employment, but it did not make similar demands of U.S. citizens.  The INA’s anti-discrimination provision prohibits employers from placing additional documentary burdens on workers during the employment eligibility verification process based on their citizenship status.

Under the settlement agreement, USSI will pay $132,000 in civil penalties to the United States; undergo training on the anti-discrimination provision of the INA; establish a $50,000 back pay fund to compensate any workers who may have lost wages; revise its employment eligibility verification policies; and be subject to monitoring of its employment eligibility verification practices for two years.

“Employers cannot create unlawful discriminatory obstacles for immigrants,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division.  “It is important that large employers review their employment eligibility verification practices at all of their offices to make sure they are in compliance with the law.”

The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) within the Justice Department is responsible for enforcing the anti-discrimination provision of the INA.  Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing or recruitment or referral for a fee, unfair documentary practices, retaliation and intimidation.

For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired), call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired), sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php, email osccrt@usdoj.govEmail links icon or visit OSC’s website at www.justice.gov/crt/about/osc.  

Applicants or employees who believe they were subjected to different documentary requirements based on their citizenship status, immigration status or national origin, or discrimination based on their citizenship status, immigration status or national origin in hiring, firing, or recruitment or referral for a fee should contact OSC’s worker hotline for assistance.