Corporate Crime Case Database
Consistent with the Department’s ongoing commitment to transparency in corporate crime cases, the DOJ launched a new case database. While it is still in the process of being populated, it will eventually contain the significant, relevant cases from each component and U.S. Attorney’s Office, resolved since the beginning of 2023.
United States v. Aghorn Operating, Inc., et al.
On March 6, 2024, a grand jury returned a superseding indictment adding a new conspiracy charge against oilfield companies and a company executive. Aghorn Operating, Inc. (Aghorn), Trent Day, and Kodiak Roustabout, Inc. (Kodiak) are now charged as follows: Aghorn and Day with violating 42 U.S.C. § 7413(c)(1), the general duty clause of the Clean Air Act (CAA); 42 U.S.C. § 7413(c)(5)(A), CAA knowing endangerment; 18 U.S.C. § 1505, obstruction of an Occupational Safety and Health Act (OSHA) proceeding; Aghorn with violating 29 U.S.C. § 666(e), OSHA willful violation causing death to employee; and all three with violating 42 U.S.C. § 300h-2, Safe Drinking Water Act (SWDA), 18 U.S.C. § 1001, false statements, and 18 U.S.C. § 371, conspiracy to violate the CAA and SWDA
Aghorn owns and operates oil wells and leases in Texas. Kodiak performed oilfield support and maintenance services for Aghorn. Day was a vice president for both Aghorn and Kodiak. The CAA and OSHA charges stem from the defendants releasing hydrogen sulfide (and obstructing the investigation) that caused the deaths of Aghorn employee, Jacob Dean, and his wife, Natalee Dean. Both were overcome by hydrogen sulfide at the facility in Odessa.
All three defendants are charged with violating the Safe Drinking Water Act and making false statements regarding the mechanical integrity of Aghorn injection wells in forms and pressure charts filed with the State of Texas Railroad Commission. All three defendants are also now charged with a multi-object conspiracy.
United States v. Gunvor S.A.
United States v. Mauricio Gomez Baez
United States v. KVK Tech, Inc., et al.
This case was filed on February 25, 2024, in the Eastern District of Pennsylvania and was resolved on April 2, 2024.
Related Documents:
Plea Agreement (KVK Research, Inc.)
Deferred Prosecution Agreement (KVK Tech, Inc.)
Monitor: Leo Tsao
United States v. Family Dollar Stores, LLC
This case was filed on February 9, 2024, in the Eastern District of Arkansas and was resolved on February 26, 2024.
Related Documents:
United States v. Vulto Creamery, LLC
This case was filed on January 30, 2024, in the Northern District of New York and was resolved on July 17, 2024.
Related Documents:
Related Case:
United States v. Johannes Vulto (3:24-cr-61)
This case was filed on January 30, 2024, and was resolved on July 17, 2024.
United States v. SAP SE
United States v. Empire Bulkers Ltd., et al.
On January 8, 2024, Empire Bulkers, Ltd., was arraigned on probation violation charges. The court sentenced the company in January 2023 to pay $1 million fine and complete four years of probation, subject to the terms of a government approved environmental compliance plan (ECP) to include independent ship audits and supervision by a court-appointed monitor (CAM). The probation allegations, include the following:
1. Empire Bulkers failed to promptly notify the CAM of all reports of non-compliance received from employees. Empire Bulkers waited approximately 14 days before providing the CAM with a report that the Chief Engineer of the M/V Panagiotis discharged bilge water overboard in violation of MARPOL and the ECP.
2. Between October 5, 2023, and October 19, 2023, Empire Bulkers conducted an undisclosed and unilateral investigation into allegations that the Chief Engineer of M/V Panagiotis committed a deliberate violation of MARPOL and the ECP.
3. Empire Bulkers refused to allow the Third-Party Auditor to attend and audit shoreside training required under the ECP.
Empire operated the M/V Joanna, a Marshall Islands registered Bulk Carrier, owned by Joanna Maritime. Between October 25, 2020, and March 11, 2021, the companies tampered with required oil pollution prevention equipment and falsified the ship’s Oil Record Book. The Coast Guard found that the crew bypassed the ship’s Oily Water Separator by inserting a piece of metal into the Oil Content Meter so that it only detected clean water instead of what was the actual overboard discharges. The defendants falsified the log and sought to obstruct the Coast Guard’s inspection.
The defendants also violated the PWSA by failing to immediately report a hazardous situation that affected the safety of the ship and threatened U.S. ports and waters. During the inspection on March 11, 2021, the Coast Guard discovered an active fuel oil leak in the ship’s purifier room that resulted from disabling the fuel oil heater pressure relief valves, an essential safety feature designed to prevent catastrophic fires and explosions. The companies pleaded guilty to violating APPS and the Ports and Water Ways Safety Act (PWSA) (33 U.S.C. § 1908; 46 U.S.C. § 70036).
The U.S. Coast Guard Criminal Investigations Division conducted the investigation.
United States v. Northridge Construction Corp., et al.
On January 5, 2024, Northridge Construction Corporation pleaded guilty to violating the Occupational Safety and Health Act (OSHA) (29 U.S.C. § 666(e). Sentencing is scheduled for April 3, 2024.
In 2018, during the construction of a shed on Northridge’s property, a company employee fell from an improperly secured roof and died. OSH regulations require companies and employers to maintain the stability of a metal structure during construction. Northridge pleaded guilty to violating this worker safety standard and to making two false statements that obstructed OSHA’s inquiry into the employee’s death.
Richard Zagger, a company superintendent, was indicted in November on conspiracy and obstruction of official proceedings relating to this investigation (18 U.S.C. §§ 371, 1505).
The Occupational Safety and Health Administration conducted the investigation.
U.S. v. Al’s Asphalt Paving Company, Inc. and Edward D. Swanson
Al’s Asphalt Paving Company, Inc. and Edward D. Swanson pleaded guilty to two counts of entering into and engaging in a combination and conspiracy to suppress and eliminate competition by agreeing to rig bids for contracts to provide asphalt paving services in the State of Michigan. Count One charged a conspiracy that began at least as early as March 2013 and continued until at least as late as November 2018. Count Two charged a separate conspiracy that began at least as early as June 2013 and continued until at least as late as June 2019.
United States v. John H. Cross, III, et al.
On December 21, 2023, a court ordered the final restitution in this case, originally sentenced in April 2019. John H. Cross and his company, John Cross Fisheries, are jointly responsible for paying $1,032,132 to be paid to the National Fish Hatcheries, which stock Lake Michigan with lake trout. The court previously sentenced Cross to 12 months’ intermittent incarceration, as a condition of a five-year term of probation. The judge wanted Cross to serve the time during the winter months when his business is not operating. The company was sentenced to complete a five-year term of probation to include implementing a compliance plan.
The defendants previously pleaded guilty to violating the Lacey Act for trafficking in illegally caught lake trout and falsely labelling the fish (16 U.S.C. §§ 3372(a)(2)(A), (d)(2), 3373(d)(2), (d)(3)(A)). The company sold more than 48,000 pounds of lake trout that it should have known had been illegally harvested, transported, and sold in violation of Michigan fishery laws.
Between September 2011 and October 2013, Cross and Cross Fisheries repeatedly purchased lake trout from “Fisherman A,” a tribal fisherman who fished from a boat converted to trap net gear at taxpayers’ expense (and thus barred from lawfully harvesting lake trout). Instead, the defendants made and submitted records and accounts of these purchases indicating the seller was a licensed gillnet fisherman (“Fisherman B”) who could legally harvest lake trout.
Between approximately September 2011 and October 2013, the defendants made approximately 42 purchases of lake trout from “Fisherman A,” totaling approximately 48,498 pounds, all of which Cross Fisheries falsely claimed it received from “Fisherman B.”
This case is a result from Operation Fishing for Funds, a two-year U.S. Fish and Wildlife Service undercover operation. The operation investigated the illegal harvest and sale of fish (primarily walleye and trout) taken from the Great Lakes. Agents established an undercover wholesale fish business in Baraga, Michigan, named Upper Peninsula North Fish Company (UPNFC). UPNFC bought and sold fish wholesale and retail across the region.
The U.S. Fish and Wildlife Service conducted the investigation, with assistance from the Michigan and Wisconsin Departments of Natural Resources.
United States v. Joseph Jensen, et al.
On December 21, 2023, a court sentenced Joseph Jensen to pay a $4,250 fine, and complete a two-year term of probation to include six months’ home detention. Jensen also was ordered to pay $30,000 in restitution to U.S. Fish and Wildlife Service National Fish Hatchery System. The court sentenced his father, Robert Jenson, in December to similar terms, except he will pay $211, 578 in restitution. The defendants pleaded guilty to making and submitting (and causing to be submitted) false records with respect to fish in violation of the Lacey Act (16 U.S.C. §§ 3372(d)(2), 3373(d)(3)(A)(ii), (d)(3)(B)).
The Jensens are enrolled members of the Sault Ste. Marie Tribe, who commercially fish Lake Michigan pursuant to licenses issued by their tribe. James and Michael Hermes are non-tribal fish wholesalers doing business as Garden Bay Fisheries, located in Michigan’ s Upper Peninsula. During 2017, the Jensens repeatedly harvested lake trout in excess of established daily trip limits. These fish were purchased by Big Bay de Noc Fisheries (the predecessor to Garden Bay Fisheries), which sold them in interstate commerce. To conceal the illegal nature of the fish, Robert Jensen falsified monthly catch reports filed with the tribe, and Big Bay de Noc Fisheries, with assistance from Joseph Jensen, falsified wholesale reports filed with the State of Michigan.
The court previously sentenced James and Michael Hermes, along with their company Garden Bay Fisheries, for selling illegally possessed fish in interstate commerce and making and submitting false records in violation of the Lacey Act (16 U.S.C. §§ 3372(d)(2), 3373(d)(2)). The three defendants are jointly and severally responsible for $180,000 in restitution to be paid to the U.S. Fish and Wildlife Service National Fish Hatchery System (with James and Michael Hermes each paying $90,000), of which $135,000 was paid at the time of sentencing. All three defendants also paid $8,500 in fines. The company will complete a four-year term of probation. James and Michael Hermes will each complete two-year terms of probation to include six-months’ home confinement.
The U.S. Fish and Wildlife Service Office of Law Enforcement conducted the investigation, with assistance from the Michigan and Wisconsin Departments of Natural Resources.