FROM: U.S. DEPARTMENT OF JUSTICE
Thursday, February 14, 2013
Former Executives of Stanford Financial Group Entities Sentenced to 20 Years in Prison for Roles in Fraud Scheme
Gilbert T. Lopez Jr., the former chief accounting officer of Stanford Financial Group Company, and Mark J. Kuhrt, the former global controller of Stanford Financial Group Global Management, were each sentenced today to 20 years in prison for their roles in helping Robert Allen Stanford perpetrate a fraud scheme involving Stanford International Bank (SIB). Both were convicted by a Houston federal jury on Nov. 19, 2012.
The sentences were announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Kenneth Magidson of the Southern District of Texas; FBI Assistant Director Kevin Perkins of the Criminal Investigative Division; Assistant Secretary of Labor for the Employee Benefits Security Administration Phyllis C. Borzi; Chief Postal Inspector Guy J. Cottrell; and Special Agent in Charge Lucy Cruz of Internal Revenue Service-Criminal Investigation.
The trial against Lopez and Kuhrt spanned five weeks. After approximately three days of deliberations, the jury found both Lopez, 70, and Kuhrt, 40, both of Houston, guilty of 10 of 11 counts in the indictment. Each defendant was convicted of one count of conspiracy to commit wire fraud and nine counts of wire fraud. Each was found not guilty on one wire fraud count. Both defendants were taken into custody immediately following the jury’s verdict.
In addition to the prison terms, U.S. District Judge David Hittner, who presided over the trial, sentenced Lopez and Kuhrt to serve three years of supervised release and ordered Lopez to pay a $25,000 fine. At today’s hearing, Judge Hittner also found that both defendants obstructed justice by committing perjury at trial.
Stanford, who was previously convicted in a separate trial, illegally used billions of dollars of SIB’s assets to fund his personal business ventures, to live a lavish lifestyle and for other improper purposes. He was later sentenced to 110 years in prison. James M. Davis, Stanford’s chief financial officer – who pleaded guilty and cooperated with the government soon after SIB was shut down in February 2009 and testified at both Stanford’s trial and the trial of Lopez and Kuhrt – was sentenced to 60 months in prison for his role in the scheme.
The evidence presented at Lopez and Kuhrt’s trial established that they were aware of and tracked Stanford’s misuse of SIB’s assets, kept the misuse hidden from the public and from almost all of Stanford’s other employees and worked behind the scenes to prevent the misuse from being discovered. They also helped Stanford falsely represent to SIB customers during the economic crash in late 2008 that Stanford had infused hundreds of millions of dollars into SIB when he had not. As part of that effort, Lopez and Kuhrt helped design a fraudulent real estate transaction that involved falsely inflating parcels of land purchased at $63.5 million to a purported value of $3.2 billion.
The investigation was conducted by the FBI, U.S. Postal Inspection Service, IRS-CI and the U.S. Department of Labor, Employee Benefits Security Administration. The case was prosecuted by Deputy Chief Jeffrey Goldberg and Trial Attorney Andrew Warren of the Criminal Division’s Fraud Section, and by Assistant U.S. Attorney Jason Varnado of the Southern District of Texas.
Friday, February 15, 2013
Thursday, February 14, 2013
TRANSOCEAN PLEADS GUILTY TO CRIMINAL CONDUCT LEADING TO DEEPWATER HORIZON DISASSTER
FROM: U.S. DEPARTMENT OF JUSTICE
Transocean Pleads Guilty, Is Sentenced to Pay $400 Million in Criminal Penalties for Criminal Conduct Leading to Deepwater Horizon Disaster
Second Corporate Guilty Plea Obtained by Deepwater Horizon Task Force, Second-largest Criminal Clean Water Act Fines and Penalties in U.S. History
Transocean Deepwater Inc. pleaded guilty today to a violation of the Clean Water Act (CWA) for its illegal conduct leading to the 2010 Deepwater Horizon disaster, and was sentenced to pay $400 million in criminal fines and penalties, Attorney General Holder announced today.
In total, the amount of fines and other criminal penalties imposed on Transocean are the second-largest environmental crime recovery in U.S. history – following the historic $4 billion criminal sentence imposed on BP Exploration and Production Inc. in connection with the same disaster.
"Transocean’s guilty plea and sentencing are the latest steps in the department’s ongoing efforts to seek justice on behalf of the victims of the Deepwater Horizon disaster," said Attorney General Holder. "Most of the $400 million criminal recovery – one of the largest for an environmental crime in U.S. history – will go toward protecting, restoring and rebuilding the Gulf Coast region."
"The Deepwater Horizon explosion was a senseless tragedy that could have been avoided," said Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division. "Eleven men died, and the Gulf’s waters, shorelines, communities and economies suffered enormous damage. With today’s guilty plea, BP and Transocean have now both been held criminally accountable for their roles in this disaster."
Transocean’s guilty plea was accepted, and the sentence was imposed, by U.S. District Judge Jane Triche Milazzo of the Eastern District of Louisiana. During the guilty plea and sentencing proceeding, Judge Milazzo found, among other things, that the sentence appropriately reflects Transocean’s role in the offense conduct, and that the criminal payments directed to the National Academy of Sciences and National Fish and Wildlife Foundation are appropriately designed to help remedy the harm to the Gulf of Mexico caused by Transocean’s actions. The judge also noted that the fines and five year probationary period provide just punishment and adequate deterrence.
Transocean pleaded guilty to an information, previously filed in federal court in New Orleans, charging the company with violating the CWA. During the guilty plea proceeding today, Transocean admitted that members of its crew onboard the Deepwater Horizon, acting at the direction of BP’s well site leaders, known as "company men," were negligent in failing to investigate fully clear indications that the Macondo well was not secure and that oil and gas were flowing into the well.
The criminal resolution is structured to directly benefit the Gulf region. Under the order entered by the court pursuant to the plea agreement, $150 million of the $400 million criminal recovery is dedicated to acquiring, restoring, preserving and conserving – in consultation with appropriate state and other resource managers – the marine and coastal environments, ecosystems and bird and wildlife habitat in the Gulf of Mexico and bordering states harmed by the Deepwater Horizon oil spill. This portion of the criminal recovery will also be directed to significant barrier island restoration and/or river diversion off the coast of Louisiana to further benefit and improve coastal wetlands affected by the spill. An additional $150 million will be used to fund improved oil spill prevention and response efforts in the Gulf through research, development, education and training.
Transocean was also sentenced, according to the plea agreement, to five years of probation – the maximum term of probation permitted by law.
A separate proposed civil consent decree, which resolves the United States’ civil CWA penalty claims, imposes a record $1 billion civil Clean Water Act penalty, and requires significant measures to improve performance and prevent recurrence, is pending before U.S. District Judge Carl J. Barbier of the Eastern District of Louisiana.
The charges and allegations pending against individuals in related cases are merely accusations, and those individuals are considered innocent unless and until proven guilty.
The guilty plea and sentencing announced today are part of the ongoing criminal investigation by the Deepwater Horizon Task Force into matters related to the April 2010 Gulf oil spill. The Deepwater Horizon Task Force, based in New Orleans, is supervised by Assistant Attorney General Breuer and led by Deputy Assistant Attorney General John D. Buretta, who serves as the director of the task force. The task force includes prosecutors from the Criminal Division and the Environment and Natural Resources Division of the Department of Justice; the U.S. Attorney’s Office for the Eastern District of Louisiana, as well as other U.S. Attorneys’ Offices; and investigating agents from: the FBI; Environmental Protection Agency, Criminal Investigative Division; Environmental Protection Agency, Office of Inspector General; Department of Interior, Office of Inspector General; National Oceanic and Atmospheric Administration, Office of Law Enforcement; U.S. Coast Guard; U.S. Fish and Wildlife Service; and the Louisiana Department of Environmental Quality.
This case was prosecuted by Deepwater Horizon Task Force Director John D. Buretta, Deputy Directors Derek A. Cohen and Avi Gesser, and task force prosecutors Richard R. Pickens II, Scott M. Cullen, Colin Black and Rohan Virginkar.
Transocean Pleads Guilty, Is Sentenced to Pay $400 Million in Criminal Penalties for Criminal Conduct Leading to Deepwater Horizon Disaster
Second Corporate Guilty Plea Obtained by Deepwater Horizon Task Force, Second-largest Criminal Clean Water Act Fines and Penalties in U.S. History
Transocean Deepwater Inc. pleaded guilty today to a violation of the Clean Water Act (CWA) for its illegal conduct leading to the 2010 Deepwater Horizon disaster, and was sentenced to pay $400 million in criminal fines and penalties, Attorney General Holder announced today.
In total, the amount of fines and other criminal penalties imposed on Transocean are the second-largest environmental crime recovery in U.S. history – following the historic $4 billion criminal sentence imposed on BP Exploration and Production Inc. in connection with the same disaster.
"Transocean’s guilty plea and sentencing are the latest steps in the department’s ongoing efforts to seek justice on behalf of the victims of the Deepwater Horizon disaster," said Attorney General Holder. "Most of the $400 million criminal recovery – one of the largest for an environmental crime in U.S. history – will go toward protecting, restoring and rebuilding the Gulf Coast region."
"The Deepwater Horizon explosion was a senseless tragedy that could have been avoided," said Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division. "Eleven men died, and the Gulf’s waters, shorelines, communities and economies suffered enormous damage. With today’s guilty plea, BP and Transocean have now both been held criminally accountable for their roles in this disaster."
Transocean’s guilty plea was accepted, and the sentence was imposed, by U.S. District Judge Jane Triche Milazzo of the Eastern District of Louisiana. During the guilty plea and sentencing proceeding, Judge Milazzo found, among other things, that the sentence appropriately reflects Transocean’s role in the offense conduct, and that the criminal payments directed to the National Academy of Sciences and National Fish and Wildlife Foundation are appropriately designed to help remedy the harm to the Gulf of Mexico caused by Transocean’s actions. The judge also noted that the fines and five year probationary period provide just punishment and adequate deterrence.
Transocean pleaded guilty to an information, previously filed in federal court in New Orleans, charging the company with violating the CWA. During the guilty plea proceeding today, Transocean admitted that members of its crew onboard the Deepwater Horizon, acting at the direction of BP’s well site leaders, known as "company men," were negligent in failing to investigate fully clear indications that the Macondo well was not secure and that oil and gas were flowing into the well.
The criminal resolution is structured to directly benefit the Gulf region. Under the order entered by the court pursuant to the plea agreement, $150 million of the $400 million criminal recovery is dedicated to acquiring, restoring, preserving and conserving – in consultation with appropriate state and other resource managers – the marine and coastal environments, ecosystems and bird and wildlife habitat in the Gulf of Mexico and bordering states harmed by the Deepwater Horizon oil spill. This portion of the criminal recovery will also be directed to significant barrier island restoration and/or river diversion off the coast of Louisiana to further benefit and improve coastal wetlands affected by the spill. An additional $150 million will be used to fund improved oil spill prevention and response efforts in the Gulf through research, development, education and training.
Transocean was also sentenced, according to the plea agreement, to five years of probation – the maximum term of probation permitted by law.
A separate proposed civil consent decree, which resolves the United States’ civil CWA penalty claims, imposes a record $1 billion civil Clean Water Act penalty, and requires significant measures to improve performance and prevent recurrence, is pending before U.S. District Judge Carl J. Barbier of the Eastern District of Louisiana.
The charges and allegations pending against individuals in related cases are merely accusations, and those individuals are considered innocent unless and until proven guilty.
The guilty plea and sentencing announced today are part of the ongoing criminal investigation by the Deepwater Horizon Task Force into matters related to the April 2010 Gulf oil spill. The Deepwater Horizon Task Force, based in New Orleans, is supervised by Assistant Attorney General Breuer and led by Deputy Assistant Attorney General John D. Buretta, who serves as the director of the task force. The task force includes prosecutors from the Criminal Division and the Environment and Natural Resources Division of the Department of Justice; the U.S. Attorney’s Office for the Eastern District of Louisiana, as well as other U.S. Attorneys’ Offices; and investigating agents from: the FBI; Environmental Protection Agency, Criminal Investigative Division; Environmental Protection Agency, Office of Inspector General; Department of Interior, Office of Inspector General; National Oceanic and Atmospheric Administration, Office of Law Enforcement; U.S. Coast Guard; U.S. Fish and Wildlife Service; and the Louisiana Department of Environmental Quality.
This case was prosecuted by Deepwater Horizon Task Force Director John D. Buretta, Deputy Directors Derek A. Cohen and Avi Gesser, and task force prosecutors Richard R. Pickens II, Scott M. Cullen, Colin Black and Rohan Virginkar.
Wednesday, February 13, 2013
JUSTICE SETTLES WITH EATING DISORDER CLINIC REGARDING HIV DISCRIMINATION
FROM: U.S. DEPARTMENT OF JUSTICE
Wednesday, February 6, 2013
Justice Department Settles with Missouri Eating Disorder Clinic Over HIV Discrimination
The Justice Department announced today that, as part of its Barrier-Free Health Care Initiative, it has reached a settlement with Castlewood Treatment Center LLC, of St. Louis, Mo., under the Americans with Disabilities Act (ADA). The settlement resolves allegations that Castlewood Treatment Center violated the ADA by refusing to treat a woman for a serious eating disorder because she has HIV. This is the second settlement addressing HIV discrimination by a medical provider reached by the Justice Department in two weeks.
The Justice Department found that Castlewood refused to treat Susan Gibson because of her HIV, despite Castlewood’s determination that she was qualified to receive counseling treatment for her eating disorder, and despite advice from its own medical staff that they were able to treat someone with HIV at Castlewood. The department also determined that for months Castlewood staff told Gibson that she was on a waiting list for the program, even though they had no intention to admit her into the program. In the meantime, Gibson’s condition worsened and her health declined. Castlewood’s actions delayed Gibson from receiving appropriate medical treatment for up to seven months. Gibson’s complaint was brought to the Justice Department’s attention by the American Civil Liberties Union, LGBT & AIDS Project.
"Excluding a person from necessary medical treatment solely because of HIV is unconscionable," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "The Civil Rights Division takes HIV discrimination in any form seriously, and will not allow for the marginalization of those living with HIV."
Under the settlement, the Castlewood Treatment Center must pay $115,000 to Gibson and $25,000 in civil penalties. In addition, Castlewood must train its staff on the ADA and develop and implement an anti-discrimination policy. The department will monitor Castlewood’s compliance for four years.
Last week the department announced a similar agreement with the Fayetteville Pain Center to address HIV discrimination. Both settlements are part of the Department of Justice’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. The initiative, launched on the 22nd anniversary of the ADA in July 2012, includes the participation of 40 U.S. Attorney’s offices. The division expects the initiative to address access to health care for people with HIV and those with hearing disabilities, as well as physical access to medical facilities. In 2012, the division and U.S. Attorneys offices reached two settlement agreements regarding access to medical care for people with HIV and four settlements regarding access to medical care for people with hearing disabilities.
Wednesday, February 6, 2013
Justice Department Settles with Missouri Eating Disorder Clinic Over HIV Discrimination
The Justice Department announced today that, as part of its Barrier-Free Health Care Initiative, it has reached a settlement with Castlewood Treatment Center LLC, of St. Louis, Mo., under the Americans with Disabilities Act (ADA). The settlement resolves allegations that Castlewood Treatment Center violated the ADA by refusing to treat a woman for a serious eating disorder because she has HIV. This is the second settlement addressing HIV discrimination by a medical provider reached by the Justice Department in two weeks.
The Justice Department found that Castlewood refused to treat Susan Gibson because of her HIV, despite Castlewood’s determination that she was qualified to receive counseling treatment for her eating disorder, and despite advice from its own medical staff that they were able to treat someone with HIV at Castlewood. The department also determined that for months Castlewood staff told Gibson that she was on a waiting list for the program, even though they had no intention to admit her into the program. In the meantime, Gibson’s condition worsened and her health declined. Castlewood’s actions delayed Gibson from receiving appropriate medical treatment for up to seven months. Gibson’s complaint was brought to the Justice Department’s attention by the American Civil Liberties Union, LGBT & AIDS Project.
"Excluding a person from necessary medical treatment solely because of HIV is unconscionable," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "The Civil Rights Division takes HIV discrimination in any form seriously, and will not allow for the marginalization of those living with HIV."
Under the settlement, the Castlewood Treatment Center must pay $115,000 to Gibson and $25,000 in civil penalties. In addition, Castlewood must train its staff on the ADA and develop and implement an anti-discrimination policy. The department will monitor Castlewood’s compliance for four years.
Last week the department announced a similar agreement with the Fayetteville Pain Center to address HIV discrimination. Both settlements are part of the Department of Justice’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. The initiative, launched on the 22nd anniversary of the ADA in July 2012, includes the participation of 40 U.S. Attorney’s offices. The division expects the initiative to address access to health care for people with HIV and those with hearing disabilities, as well as physical access to medical facilities. In 2012, the division and U.S. Attorneys offices reached two settlement agreements regarding access to medical care for people with HIV and four settlements regarding access to medical care for people with hearing disabilities.
Tuesday, February 12, 2013
LIST OF COMPANIES WITH NONPROLIFERATION SANCTIONS
FROM: U.S. STATE DEPARTMENT
Imposition of Nonproliferation Sanctions Against Foreign Entities and Individuals
Media Note
Office of the Spokesperson
Washington, DC
February 11, 2013
In February 11, 2013, the Department of State announced the imposition of nonproliferation sanctions on several foreign entities and individuals under multiple U.S. authorities.
Pursuant to the Iran, North Korea, and Syria Nonproliferation Act (INKSNA), a determination was made to impose sanctions on: two Belarusian entities [TM Services Limited (TMS) and Scientific and Industrial Republic Unitary Enterprise (aka DB Radar)]; four Chinese entities [BST Technology and Trade Company, China Precision Machinery Import and Export Corporation (CPMIEC), Dalian Sunny Industries, and Poly Technologies Incorporated] and one Chinese individual [Li Fangwei (aka Karl Lee)]; two Iranian entities [Iran Electronics Industries (IEI) and Marine Industries Organization (MIO)] and one Iranian individual [Milad Jafari]; two Sudanese entities [Al-Zargaa Engineering Complex (ZEC) and SMT Engineering]; one Syrian entity [Army Supply Bureau (ASB)]; and one Venezuelan entity [Venezuelan Military Industry Company (CAVIM)]. INKSNA sanctions were imposed on these entities and individuals because there was credible information indicating they had transferred to, or acquired from, Iran, North Korea, or Syria, equipment and technology listed on multilateral export control lists (Australia Group, Chemical Weapons Convention, Missile Technology Control Regime, Nuclear Suppliers Group, Wassenaar Arrangement), or items that are not listed, but nevertheless, could materially contribute to a weapons of mass destruction (WMD) or cruise or ballistic missile program.
A separate determination was made to impose missile proliferation sanctions under the Arms Export Control Act (AECA) and Export Administration Act (EAA) on the Chinese individual Li Fangwei (aka Karl Lee) and his company, Dalian Sunny Industries, for transferring equipment and technology controlled under the Missile Technology Control Regime (MTCR) Annex to MTCR-class (Category I) missiles in a non-MTCR country.
The United States also imposed sanctions pursuant to Executive Order (E.O.) 12938, as amended, on Li Fangwei (aka Karl Lee), Dalian Sunny Industry, and the Iranian entities Shahid Bakeri Industrial Group (SBIG), Shahid Sattari Ground Equipment Industries, and the Ministry of Defense and Armed Forces Logistics (MODAFL), because these entities contributed materially (or posed a risk of contributing materially) to the proliferation of WMD or their means of delivery (including missiles capable of delivering such weapons).
These sanctions (INKSNA, AECA/EAA, E.O.), and the specific penalties levied on the sanctioned entities, were announced in the Federal Register (Vol. 78 No. 28) on February 11, 2013. The sanctions were imposed for a period of two years and will expire in February 2015.
Imposition of Nonproliferation Sanctions Against Foreign Entities and Individuals
Media Note
Office of the Spokesperson
Washington, DC
February 11, 2013
In February 11, 2013, the Department of State announced the imposition of nonproliferation sanctions on several foreign entities and individuals under multiple U.S. authorities.
Pursuant to the Iran, North Korea, and Syria Nonproliferation Act (INKSNA), a determination was made to impose sanctions on: two Belarusian entities [TM Services Limited (TMS) and Scientific and Industrial Republic Unitary Enterprise (aka DB Radar)]; four Chinese entities [BST Technology and Trade Company, China Precision Machinery Import and Export Corporation (CPMIEC), Dalian Sunny Industries, and Poly Technologies Incorporated] and one Chinese individual [Li Fangwei (aka Karl Lee)]; two Iranian entities [Iran Electronics Industries (IEI) and Marine Industries Organization (MIO)] and one Iranian individual [Milad Jafari]; two Sudanese entities [Al-Zargaa Engineering Complex (ZEC) and SMT Engineering]; one Syrian entity [Army Supply Bureau (ASB)]; and one Venezuelan entity [Venezuelan Military Industry Company (CAVIM)]. INKSNA sanctions were imposed on these entities and individuals because there was credible information indicating they had transferred to, or acquired from, Iran, North Korea, or Syria, equipment and technology listed on multilateral export control lists (Australia Group, Chemical Weapons Convention, Missile Technology Control Regime, Nuclear Suppliers Group, Wassenaar Arrangement), or items that are not listed, but nevertheless, could materially contribute to a weapons of mass destruction (WMD) or cruise or ballistic missile program.
A separate determination was made to impose missile proliferation sanctions under the Arms Export Control Act (AECA) and Export Administration Act (EAA) on the Chinese individual Li Fangwei (aka Karl Lee) and his company, Dalian Sunny Industries, for transferring equipment and technology controlled under the Missile Technology Control Regime (MTCR) Annex to MTCR-class (Category I) missiles in a non-MTCR country.
The United States also imposed sanctions pursuant to Executive Order (E.O.) 12938, as amended, on Li Fangwei (aka Karl Lee), Dalian Sunny Industry, and the Iranian entities Shahid Bakeri Industrial Group (SBIG), Shahid Sattari Ground Equipment Industries, and the Ministry of Defense and Armed Forces Logistics (MODAFL), because these entities contributed materially (or posed a risk of contributing materially) to the proliferation of WMD or their means of delivery (including missiles capable of delivering such weapons).
These sanctions (INKSNA, AECA/EAA, E.O.), and the specific penalties levied on the sanctioned entities, were announced in the Federal Register (Vol. 78 No. 28) on February 11, 2013. The sanctions were imposed for a period of two years and will expire in February 2015.
Monday, February 11, 2013
INFRASTRUCTURE CONSTRUCTION COMPANY SETTLES FALSE CLAIMS ALLEGATIONS
FROM: U.S. DEPARTMENT OF JUSTICE
Friday, February 8, 2013
California-Based Granite Construction Company to Pay U.S. $367,500 to Resolve False Claims Allegations
Granite Construction Company, a California-based construction company specializing in roads, tunnels, bridges, airports and other infrastructure-related projects, reached a settlement with the United States following an investigation of alleged false claims in connection with federal construction projects across the country, the Justice Department announced today. Granite has agreed to pay the United States $367,500.
The settlement resolves claims that Granite overcharged the government on certain federal construction projects funded by the Department of Transportation (DOT) and the Army Corps of Engineers between 2006 and 2008. Specifically, in certain instances, Granite sought price increases in the form of change orders and requests for equitable adjustment which were inflated because the general liability and workman’s compensation insurance rates used to support the adjustments included added amounts or "cushions" that were not actually incurred by the company and therefore should not have been charged to the federal government. Granite disclosed the potential overcharges to the Justice Department.
"Federal contractors will be held accountable for their billing practices," said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Department of Justice’s Civil Division. "This settlement is an example of the department’s commitment to ensuring that contractors deal squarely and honestly with the government at all times."
"To prevent and detect potential violations of law, we encourage federal contractors to apply consistent oversight to their operations throughout all phases of contracting," said DOT Office of Inspector General Special Agent in Charge Hank Smedley. "This settlement is an example of how we work with our law enforcement colleagues to protect taxpayer dollars."
The investigation and settlement was the result of a coordinated effort by the Civil Division of the Department of Justice and the Department of Transportation Office of Inspector General. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Friday, February 8, 2013
California-Based Granite Construction Company to Pay U.S. $367,500 to Resolve False Claims Allegations
Granite Construction Company, a California-based construction company specializing in roads, tunnels, bridges, airports and other infrastructure-related projects, reached a settlement with the United States following an investigation of alleged false claims in connection with federal construction projects across the country, the Justice Department announced today. Granite has agreed to pay the United States $367,500.
The settlement resolves claims that Granite overcharged the government on certain federal construction projects funded by the Department of Transportation (DOT) and the Army Corps of Engineers between 2006 and 2008. Specifically, in certain instances, Granite sought price increases in the form of change orders and requests for equitable adjustment which were inflated because the general liability and workman’s compensation insurance rates used to support the adjustments included added amounts or "cushions" that were not actually incurred by the company and therefore should not have been charged to the federal government. Granite disclosed the potential overcharges to the Justice Department.
"Federal contractors will be held accountable for their billing practices," said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Department of Justice’s Civil Division. "This settlement is an example of the department’s commitment to ensuring that contractors deal squarely and honestly with the government at all times."
"To prevent and detect potential violations of law, we encourage federal contractors to apply consistent oversight to their operations throughout all phases of contracting," said DOT Office of Inspector General Special Agent in Charge Hank Smedley. "This settlement is an example of how we work with our law enforcement colleagues to protect taxpayer dollars."
The investigation and settlement was the result of a coordinated effort by the Civil Division of the Department of Justice and the Department of Transportation Office of Inspector General. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Sunday, February 10, 2013
H. KRAMER AND CO., RESOLVES VIOLATIONS OF CLEAN AIR ACT
FROM: U.S. ENVIRONMENTAL PROTECTION AGENCY
U.S. EPA and State of Illinois announce settlement with H. Kramer; company will spend $3 million to reduce air pollution
Chicago (Jan. 31, 2013) - The U.S. Environmental Protection Agency and the State of Illinois have signed a consent decree with H. Kramer and Co., to resolve violations of the Clean Air Act and state air pollution violations at the firm’s copper smelting foundry in the Pilsen neighborhood on the southwest side of Chicago. Under the terms of the settlement, H. Kramer will spend $3 million on new state-of-the-art pollution controls for the foundry, pay a $35,000 penalty and provide $40,000 to retrofit diesel school buses operating in the neighborhood and surrounding areas with controls to reduce air emissions.
The settlement resolves the federal government’s allegations that H. Kramer failed to maintain and operate furnaces at the foundry in a manner which controls lead emissions and that the company violated the Illinois State Implementation Plan by causing or allowing releases of lead into the air. The settlement also resolves Illinois’ claims that H. Kramer’s activities at the foundry resulted in lead emissions that caused or contributed to air pollution and created danger to the public and the environment. The consent decree requires H. Kramer to install new filters and other controls on two furnaces to reduce emissions and to continue to limit production of two lead alloys until the new equipment is installed.
"This settlement will protect Pilsen residents from lead emissions from the H. Kramer foundry and prevent future violations of the Clean Air Act," said EPA Regional Administrator Susan Hedman. "Exposure to lead can impair the ability of children to learn."
"This settlement will help to dramatically reduce harmful pollution levels in the Pilsen neighborhood and to improve overall air quality in the surrounding community," Attorney General Lisa Madigan said.
On Nov. 22, 2011, EPA announced that air quality in part of Chicago’s Pilsen neighborhood exceeds the national air quality standard for lead. EPA’s determination was based on data collected from a state air quality monitor located on the roof of the Manuel Perez Jr. Elementary School. The H. Kramer facility is located in the area that violates the lead air quality standard -- which is bounded by Damen Avenue to the west, Roosevelt Road to the north, the Dan Ryan Expressway to the east and the Stevenson Expressway to the south.
The proposed settlement, lodged today in the U.S. District Court for the Northern District of Illinois, is subject to a 30-day comment period and final court approval.
U.S. EPA and State of Illinois announce settlement with H. Kramer; company will spend $3 million to reduce air pollution
Chicago (Jan. 31, 2013) - The U.S. Environmental Protection Agency and the State of Illinois have signed a consent decree with H. Kramer and Co., to resolve violations of the Clean Air Act and state air pollution violations at the firm’s copper smelting foundry in the Pilsen neighborhood on the southwest side of Chicago. Under the terms of the settlement, H. Kramer will spend $3 million on new state-of-the-art pollution controls for the foundry, pay a $35,000 penalty and provide $40,000 to retrofit diesel school buses operating in the neighborhood and surrounding areas with controls to reduce air emissions.
The settlement resolves the federal government’s allegations that H. Kramer failed to maintain and operate furnaces at the foundry in a manner which controls lead emissions and that the company violated the Illinois State Implementation Plan by causing or allowing releases of lead into the air. The settlement also resolves Illinois’ claims that H. Kramer’s activities at the foundry resulted in lead emissions that caused or contributed to air pollution and created danger to the public and the environment. The consent decree requires H. Kramer to install new filters and other controls on two furnaces to reduce emissions and to continue to limit production of two lead alloys until the new equipment is installed.
"This settlement will protect Pilsen residents from lead emissions from the H. Kramer foundry and prevent future violations of the Clean Air Act," said EPA Regional Administrator Susan Hedman. "Exposure to lead can impair the ability of children to learn."
"This settlement will help to dramatically reduce harmful pollution levels in the Pilsen neighborhood and to improve overall air quality in the surrounding community," Attorney General Lisa Madigan said.
On Nov. 22, 2011, EPA announced that air quality in part of Chicago’s Pilsen neighborhood exceeds the national air quality standard for lead. EPA’s determination was based on data collected from a state air quality monitor located on the roof of the Manuel Perez Jr. Elementary School. The H. Kramer facility is located in the area that violates the lead air quality standard -- which is bounded by Damen Avenue to the west, Roosevelt Road to the north, the Dan Ryan Expressway to the east and the Stevenson Expressway to the south.
The proposed settlement, lodged today in the U.S. District Court for the Northern District of Illinois, is subject to a 30-day comment period and final court approval.
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