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Source: United States Department of Justice Criminal Division

The Justice Department today announced the settlement of litigation challenging former race-based admissions practices at the U.S. Military Academy at West Point and the U.S. Air Force Academy. The settlement results in dismissal of two lawsuits brought by plaintiff Students for Fair Admissions Inc. The lawsuits challenged race-based admissions at the two military academies as unconstitutional under the Fifth Amendment.

“This Department is committed to eliminating DEI practices throughout the federal government,” said Attorney General Pamela Bondi. “We are proud to partner with the Department of Defense to permanently end race-based admissions at West Point and the Air Force Academy — admission to these prestigious military institutions should be based exclusively on merit.”

“America is the land of equal opportunity, in spirit and in law,” said U.S. Attorney Jay Clayton for the Southern District of New York. “Today’s agreement ensures that our future military leaders will carry on the greatness that is born of opportunity, effort, and a level playing field.”

The Department’s agreement with Students for Fair Admissions avoids the need for continued litigation in these two cases. It includes agreed-upon terms that help ensure that admission to these prestigious institutions is based exclusively on merit, not race or ethnicity. Earlier this year, the Department resolved similar litigation in the U.S. Court of Appeals for the Fourth Circuit regarding the U.S. Naval Academy’s former race-based admissions practices.

Combatting unlawful discrimination is a top priority of the Justice Department’s Civil Division. Additional information about the Civil Division is available at www.justice.gov/civil.

Source: United States Department of Justice Criminal Division

Today, the Department of Justice finds George Washington University (GWU) in violation of federal civil rights law by acting deliberately indifferent to the hostile educational environment for Jewish, American-Israeli, and Israeli students and faculty.

The Civil Rights Division’s investigation was conducted pursuant to Title VI of the Civil Rights Act of 1964, which prohibits discrimination, harassment, and abuse based on race or national origin, by recipients of federal financial assistance. The Division finds that GWU took no meaningful action and was instead deliberately indifferent to the complaints it received, the misconduct that occurred, and the harms that were suffered by its Jewish and Israeli students and faculty. The Justice Department will seek immediate remediation with GWU for its civil rights violations.

“Every student has the right to equal educational opportunities without fear of harassment or abuse,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “No one is above the law, and universities that promulgate antisemitic discrimination will face legal consequences.”

You may view the Notice of Findings here.

Source: United States Department of Justice Criminal Division

Note: view complaint here.

The Justice Department filed a complaint today in U.S. District Court for the Northern District of Texas to permanently bar Maxumus Tax LLC and its owner and tax return preparer James Carroll III from preparing tax returns for others. Maxumus Tax allegedly operates a tax return preparation store located in Fort Worth, Texas, and serves customers online.

According to the complaint, Maxumus Tax prepared customers’ tax returns that inflated by more than $5 million claims for tax credits enacted to combat the economic impact of the COVID-19 Pandemic. Further, Maxumus Tax allegedly fabricated business losses on tax returns, including by concocting entirely non-existent businesses, to fraudulently reduce reported taxable income.  Between 2021 and 2024, Maxumus and Carroll prepared more than 7,000 income tax returns, according to the complaint.

Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams, and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website for choosing a tax preparer, launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a checklist of things to remember when filing income tax returns.

In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

Source: United States Department of Justice Criminal Division

Defendants Residing in Texas Allegedly Bribed PEMEX to Obtain Lucrative Contracts

Source: United States Department of Justice Criminal Division

Wei Qiang Lin, of Brooklyn, New York, pleaded guilty today in U.S. District Court for the Western District of New York for falsely labeling live turtles as fake toys prior to exporting them in delivery boxes on a weeks-long journey to Hong Kong.

According to court records, between August 2023 and November 2024, Lin exported to Hong Kong approximately 222 parcels containing around 850 turtles, but he labeled the boxes as containing “plastic animal toys,” among other things. The approximate market value of the turtles was $1.4 million. Law enforcement intercepted the turtles during a border inspection and observed them bound and taped inside knotted socks within the shipping boxes. Lin also exported 11 other parcels filled with reptiles including venomous snakes. 

Lin primarily shipped eastern box turtles and three-toed box turtles, native U.S. species which feature colorful markings — a prized feature in the domestic and foreign pet market, particularly in China and Hong Kong. Both are protected by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) as a result of the illegal export of tens of thousands of box turtles every year during the 1990s.

Lin is scheduled to be sentenced on Dec. 23. He faces a maximum penalty of five years in prison, three years of supervised release, and a fine of up to $250,000 or twice the gain or loss from the illegal activity. As part of his plea, Lin also agreed to abandon any property interest in the reptiles seized during the investigation.

Acting Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD) and U.S. Attorney Michael DiGiacomo for the Western District of New York made the announcement.

The U.S. Fish and Wildlife Service — with help from other federal and local law enforcement entities including Customs and Border Protection, Postal Inspections Service, and Homeland Security Investigations — investigated the case.

Trial Attorney Rachel Roberts and Senior Trial Attorney Ryan Connors of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Aaron J. Mango for the Western District of New York are prosecuting the case.

Source: United States Department of Justice Criminal Division

A founder of the lender service provider Blueacorn pleaded guilty today in connection with a scheme to fraudulently obtain COVID-19 relief money guaranteed by the U.S. Small Business Administration (SBA) through the Paycheck Protection Program (PPP).

“During a national emergency, this defendant exploited a taxpayer-funded program that individuals and small businesses desperately needed to survive,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “This conviction demonstrates the Department’s ongoing commitment to bring to justice those who would steal from the public fisc to enrich themselves.”

“This defendant had the opportunity to help small businesses overcome tremendous financial hardships during a time of national crisis but instead exploited the system to line his own pockets with taxpayer money,” said Acting U.S. Attorney for the Northern District of Texas Nancy E. Larson.  “We will continue to pursue convictions against those fraudsters who preyed upon the generosity of the American people as we struggled through the pandemic.”

“The FBI takes our responsibility to investigate and pursue those who commit fraud for personal gain very seriously,” said Assistant Director Jose A. Perez of the FBI Criminal Investigative Division. “Reis and others exploited a program meant to keep small businesses afloat during the pandemic. The FBI will continue to work tirelessly to prevent these programs from becoming targets and fight fraud wherever we find it.”

According to court documents, Nathan Reis, 47, of Rio Grande, Puerto Rico, and previously of Arizona, conspired with others to submit false and fraudulent PPP loan applications, including by fabricating documents that falsified income and payroll figures in order to receive loan funds for which they were not eligible.

Reis co-founded Blueacorn in April 2020, purportedly to help small businesses and individuals obtain PPP loans. Through Blueacorn, Reis and his co-conspirators submitted fraudulent PPP loan applications they knew contained materially false information to make more money. Reis and others fabricated documents, including tax documents and bank statements. As part of the conspiracy, Reis and his co-conspirators charged borrower’s fees based on a percentage of the funds received.

Reis pleaded guilty to conspiracy to commit wire fraud. He is scheduled to be sentenced on Nov. 21 and faces a maximum penalty of 20 years in prison.  A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI, IRS-CI, the Special Inspector General for Pandemic Recovery, Federal Reserve Board-CFPB Office of Inspector General, and SBA OIG investigated the case. 

Acting Assistant Chief Philip Trout of the Criminal Division’s Fraud Section, Trial Attorneys Elizabeth Carr and Ryan McLaren of the Criminal Division’s Money Laundering and Asset Recovery Section, and Assistant U.S. Attorney Matthew Weybrecht for the Northern District of Texas are prosecuting the case.

The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the enactment of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at www. justice. gov/criminal/criminal-fraud/cares-act-fraud

MLARS’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at www. justice. gov/disaster-fraud/ncdf-disaster-complaint-form. 

Source: United States Department of Justice Criminal Division

The U.S. Department of Justice’s Office of International Affairs, with the assistance of the Department’s Federal Bureau of Prisons (BOP), transferred 14 Mexican nationals serving prison sentences for drug distribution-related convictions in the United States to their home country on Friday. The transfer was made pursuant to the United States’ prisoner transfer treaty with the Government of Mexico.

“Friday’s transfer of 14 federal inmates to correctional authorities in Mexico has saved the United States over $4 million by eliminating the need to pay incarceration costs for the 96 years remaining on their combined sentences,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “The Justice Department will continue such transfers – pursuant to our treaty with Mexico – to reduce incarceration costs and relieve overcrowding in our federal prisons.”

All 14 inmates transferred Friday were serving sentences relating to the distribution of controlled substances. The inmates will complete the remainder of their sentences in Mexico pursuant to the treaty. The inmates requested to be transferred to their home country, and the governments of both the United States and Mexico approved these transfers.

The transfer was part of the United States’ congressionally enacted International Prisoner Transfer Program. The Justice Department’s Office of International Affairs’s International Prisoner Transfer Unit (IPTU) administers the program and coordinates all treaty-based international prisoner transfers.

Under the program, approved foreign national inmates in federal and state prisons are transferred, under certain circumstances, to complete their prison sentences in their native countries’ prisons. The United States has entered into 10 additional bilateral transfer agreements and two multilateral transfer conventions. These international agreements give the United States transfer treaty relationships with more than 85 countries.

To learn more about the International Prisoner Transfer Program, visit: www.justice.gov/criminal/criminal-oia/iptu