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Source: United States Department of Justice Criminal Division

Today marks more than five decades since the passage of Title IX, the landmark federal civil rights law that bars sex-based discrimination in education.

Only 37 words long, Title IX has advanced equal opportunity in admissions, financial aid, athletics, and more in educational settings across the United States. At its core, the law operates as a contract between the federal government and educational institutions. It conditions the acceptance of federal funding to schools on the agreement to comply with not discriminating on the basis of sex in their programs and activities.

Equality under Title IX was also built on the understanding that physical differences between men and women matter, particularly in athletics and private spaces. Whether in the locker room, on the playing field, or in college dorms, women and girls fought for the right to fair educational and athletic opportunities.

Protecting fairness today means meeting one of the most pressing challenges that Title IX faces: the inclusion of males in women’s single-sex spaces and activities.

“The recent cultural movement to erase biological distinctions has metastasized into misguided policies across our country,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division, “This Division will continue to stand firmly in defense of the immutable biological reality of sex in preserving the fairness, safety, privacy, and speech of all Americans.”

The Civil Rights Division is committed to continuing the legacy and original intent of Title IX, and we will not back down.

Earlier this month, we warned California Public School Districts that they may be violating the Equal Protection Clause of the U.S. Constitution for allowing males to compete against females in high school sports. The state of California has pre-emptively sued the Department of Justice over this warning, and we are now in active litigation. We also opened an inquiry into concerns raised to us about similar issues in the state of Oregon.

In another case, we opened an investigation into a Virginia school, arising from three male students who raised concerns — partially based on faith — about a girl in their locker room. The boys were then subjected to Title IX investigations, which may have been potentially retaliatory.

The Department of Justice celebrates the protections afforded by Title IX today, and the Civil Rights Division will continue to uphold its responsibility by enforcing the equality and justice it has provided to generations of Americans.

Source: United States Department of Justice Criminal Division

The Justice Department announced today that it filed legal action for a complaint in intervention against the State of Washington over its a new state law, Senate Bill 5375, which violates the free exercise of religion for all Catholics, and requires Catholic priests to violate the confidentiality seal of Confession.

Senate Bill 5375 requires Catholic priests to violate their vows to uphold the confidentiality seal that accompanies the sacred rite of Confession, subjecting them to immediate excommunication from the Catholic Church.

As the Justice Department’s lawsuit explains, the violations imposed by this new law on all practicing members of the Catholic Church, including Catholic priests administering the sacrament and Catholic penitents participating in the rite, include deprivations of the Free Exercise of Religion under the First Amendment and the Equal Protection Clause of the Fourteenth Amendment.

“Laws that explicitly target religious practices such as the Sacrament of Confession in the Catholic Church have no place in our society,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “Senate Bill 5375 unconstitutionally forces Catholic priests in Washington to choose between their obligations to the Catholic Church and their penitents or face criminal consequences, while treating the priest-penitent privilege differently than other well-settled privileges. The Justice Department will not sit idly by when States mount attacks on the free exercise of religion.”

The Department’s motion to intervene in Etienne v. Ferguson is pending before the U.S. District Court for the Western District of Washington.

More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.

Source: United States Department of Justice Criminal Division

The Justice Department resolved an enforcement matter against JWB Real Estate Management for violating the Servicemembers Civil Relief Act (SCRA) when it imposed illegal early termination charges on military servicemembers who terminated their leases after receiving military relocation orders.

JWB Property Management, a property management company based in Jacksonville, Florida, imposed early termination fees on at least six members of the U.S. military after they attempted to terminate their leases in accordance with the SCRA.  

As a result of the Department’s enforcement, JWB will be required to pay over $39,000 in compensation to the affected servicemembers, as well as a $25,000 civil penalty. The company will also make changes to its policies and training to ensure that it complies with the SCRA in the future.

“Our military families already shoulder the burden of military-ordered moves and deployments,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “We will not allow them to be penalized by landlords for answering the call of duty for service.”

“The U.S. Attorney’s Office for the Middle District of Florida is committed to protecting the rights of all our servicemembers,” said U.S. Attorney Gregory W. Kehoe for the Middle District of Florida. “Our servicemembers make tremendous sacrifices to protect the rights and freedoms of our citizens and we will combat all forms of discrimination against them to help ensure that they are able to fulfill their military obligations.”

The Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. Since 2011, the Department has obtained over $483 million in monetary relief for over 148,000 servicemembers through its enforcement of the SCRA. For more information about the department’s SCRA enforcement efforts, please visit www.servicemembers.gov.

Servicemembers and their dependents who believe that their rights under the SCRA may have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations can be found at legalassistance.law.af.mil.

Source: United States Department of Justice Criminal Division

A federal jury convicted Stephanie Hockridge, a founder of the lender service provider Blueacorn, on Friday in connection with a scheme to fraudulently obtain tens of millions of dollars in COVID-19 relief money guaranteed by the U. S. Small Business Administration (SBA) through the Paycheck Protection Program (PPP).

According to court documents and evidence presented at trial, Hockridge, also known as Stephanie Reis, 42, 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 in order to receive loan funds for which they were not eligible.

“This defendant exploited a national emergency to personally profit from a taxpayer-funded program intended to support vulnerable individuals and small businesses,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “This conviction demonstrates the Department’s commitment to holding individuals accountable for defrauding the government and wasting taxpayer money.”

“During a time of crisis in our country, this defendant abused the generosity of the American people by stealing money dedicated to the survival of small businesses to fraudulently enrich herself,” said Acting U. S. Attorney Nancy E. Larson for the Northern District of Texas. “We are proud of the diligent work of our law enforcement partners to hold her accountable and bring her to justice. Make no mistake, our efforts to bring such fraudsters to justice are ongoing.”

“Hockridge’s conviction demonstrates the FBI’s continued commitment to protecting taxpayer-funded programs from fraud and abuse,” said Assistant Director Jose A. Perez of the FBI Criminal Investigative Division. “This program was designed to provide critical funds to those struggling during a national crisis, not line the pockets of people seeking to exploit government assistance. The FBI remains committed to pursuing anyone who abuses the public trust for personal gain.”

“Ms. Hockridge defrauded the federal government of millions of dollars in pandemic relief funds for her own personal gain and has been brought to justice,” said Special Agent in Charge Jon Ellwanger of the Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau (CFPB) Western Region. “We are proud to have worked with our federal law enforcement partners to hold Ms. Hockridge accountable.”

“Exploiting the Small Business Administration’s pandemic relief programs for personal gain is an egregious theft of taxpayer funds,” said Deputy Inspector General Sheldon Shoemaker of the SBA Office of Inspector General. “SBA OIG will aggressively root out fraud to protect the integrity of SBA’s programs, which are intended to provide vital assistance to the nation’s small businesses. I want to thank the U. S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”

“This verdict is a victory for justice, accountability, and the American public,” said Special Agent in Charge Christopher J. Altemus Jr. of the IRS Criminal Investigation (IRS-CI) Dallas Field Office. “In a time of crisis, the Paycheck Protection Program was created as a lifeline to keep small businesses afloat and families fed. Ms. Hockridge saw it as an opportunity to enrich herself. Driven by greed, she used her business to steal millions of dollars intended for those in need. The women and men of IRS-CI will continue to protect what’s right and stand firmly with the honest business owners who play by the rules.”

As proven at trial, Hockridge co-founded Blueacorn in April 2020, purportedly to assist small businesses and individuals in obtaining PPP loans. To get larger loans for certain PPP applicants, Hockridge and her co-conspirators fabricated documents, including payroll records, tax documentation, and bank statements. Hockridge and her co-conspirators charged borrowers kickbacks based on a percentage of the funds received.

As part of the scheme, Hockridge and others offered a personalized service to their clients called “VIPPP” to help potential borrowers complete PPP loan applications. Hockridge recruited co-conspirators to work as VIPPP referral agents and coach borrowers on how to submit false PPP loan applications. To get more kickbacks from borrowers and a higher percentage of lender fees from the SBA, Hockridge and her co-conspirators submitted PPP loan applications that they knew contained materially false information. In total, Hockridge and her coconspirators processed tens of millions of dollars in fraudulent PPP loans. Hockridge was convicted of conspiracy to commit wire fraud and acquitted of four counts of wire fraud. She is scheduled to be sentenced on Oct. 10 and faces up to 20 years in prison.

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.