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.
U.S. v. CH2M Hill Hanford Group, LLC
Defendant corporation entered into a non-prosecution agreement and agreed to pay $18.5 million for fraudulently billing the Department of Energy for labor on an environmental cleanup project.
U.S v. Accurate Truck Service, Griffin Transportation, and Diesel Freak LLC
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that three companies and eleven individuals have been charged with violating the Clean Air Act in an aftermarket scheme to disable the emissions control systems of semi-trucks. While the investigation is ongoing, even now this case is one of the largest of its kind ever charged in the United States. The corporate defendants are Diesel Freak LLC, of Gaylord, and Accurate Truck Service, LLC, and Griffin Transportation, Inc., of Grand Rapids.
Press Release: https://www.justice.gov/usao-wdmi/pr/2023_0426_Three_Companies_and_Eleven_Individuals_Charged_in_Major_Clean_Air_Act_Case
U.S. v. Padilla et al.
Joseph A. Padilla, of Carlsbad, Calif. and Cabo San Lucas, Mexico, was the principal stock trader in a sophisticated securities fraud scheme that generated tens of millions of dollars in illicit profits involving stock in the companies Oncology Pharma, Inc. and Charlestowne Premium Beverages Inc. In August 2023, Padilla pleaded guilty to one count of conspiracy to commit securities fraud, two counts of securities fraud and one count of attempting to cause the production of an identification document without lawful authority.
Between in or about January and July 2021, Oncology Pharma, Inc. was a thinly traded company that traded on the over-the-counter securities market under the ticker symbol ONPH. In January 2021, Padilla engaged in manipulative trading in ONPH designed, at least in part, to artificially drive up the company’s stock price. Thereafter, Padilla facilitated the sale of at least approximately three million ONPH shares—which were under undisclosed common control—to investors during a promotional campaign.
Between January 2020 and April 2021, Padilla participated in a similar scheme involving the shares of Charlestowne Premium Beverages Inc., a thinly traded company that traded on the over-the-counter market under the ticker symbol FPWM. Padilla similarly orchestrated an effort designed, at least in part, to artificially increase Charlestowne’s stock price and then facilitated the sale of millions of Charlestowne’s shares during a promotional campaign.
If you traded in ONPH and/or FPWM during the time periods indicated above and believe that you may be potential victims of this fraud you should contact the U.S. Attorney’s Office at USAMA.VictimAssistance@usdoj.gov. In your email, please indicate the security traded and the transaction details for the trade(s): date(s), number of shares, price, whether it was bought or sold, and an assessment of gains or losses. Please also indicate whether there is supporting documentation and a representative from the government will assist you in transferring it in a secure manner, as well as contact you with additional verification questions.
Former Stockbroker Pleads Guilty to Penny-Stock Securities Fraud Scheme
United States v. Samuel Bankman-Fried
The defendant, along with co-conspirators, authorized and directed the illicit transfer of cryptocurrency then worthy approximately $40 million intended to induce and influence one or more Chinese government officials to unfreeze certain cryptocurrency trading accounts that collectively contained approximately $1 billion in cryptocurrency, in violation of the Foreign Corrupt Practices Act.
US v. The Terminix International Company Limited
WASHINGTON – The pest control corporation Terminix International Company LP TERMINIX LP) and its U.S. Virgin Islands operation Terminix International USVI LLC(TERMINIX, USVI), were charged today with multiple violations of the Federal Insecticide, Fungicide and Rodenticide Act for illegally applying fumigants containing methyl bromide in multiple residential locations in the U.S. Virgin Islands, including the condominium resort complex in St. John where a family of four fell seriously ill last year after the unit below them was fumigated, the Department of Justice and the Environmental Protection Agency (EPA) announced today.
Resolved Date: January 19, 2019
/usao-vi/pr/terminix-companies-agree-pay-10-million-applying-restricted-use-pesticide-residences-us
U.S. v. HPM Corporation
Defendant, a Hanford Site prime contractor, falsely claimed more than $1.3 million in CARES Act funding and then distributed it to the owner. Defendant entered into a deferred-prosecution agreement.
U.S. v. Valley Processing Inc.
Defendant, a juice manufacturing company, sold adulterated and tainted juice products into school lunch programs and to other consumers nationwide. Defendant company and individual owner were indicted on multiple counts of fraud and violations of the Food, Drug, & Cosmetic Act.
U.S. v. Mid-Columbia Research, Zain Research LLC
Defendant, a clinical laboratory, falsified dozens of clinical research trials in order to obtain millions of dollars from drug companies who were sponsoring the trials. Defendant companies were convicted on 47 counts of fraud following a jury trial, and their owner was sentenced to a 340-month sentence.
U.S. v. Green Water Energy LLC
Defendant corporation indicted for bribing government contracting official for internal government information and to steer BIA contracts. Gov’t contracting official was also convicted for bribery.
United States v. Banque Pictet et Cie SA
On December 4, 2023, the Tax Division and USAO-SDNY entered into a three-year deferred prosecution agreement (DPA) with Swiss private bank Banque Pictet & Cie SA (“Pictet”), headquartered in Geneva. Pictet was charged by Information with a single count of conspiracy to defraud the United States, in violation of 18 U.S.C. § 371, for conspiring with U.S. taxpayers and others to hide more than $5.6 billion in 1,637 secret bank accounts in Switzerland and elsewhere and to conceal the income generated in those accounts from the IRS. If Pictet is in compliance with all of its obligations under the DPA, at the expiration of the three-year deferral period, the Department will seek dismissal with prejudice of the Information filed against the bank.
Monetary Amounts and Key Terms:
- Pay a total of $122,959,391, consisting of:
- Restitution: $31,844,192
- Forfeiture: $52,164,201
- Criminal penalty: $38,950,998
- Cooperate fully with the Department of Justice and the Internal Revenue Service
- Truthfully and completely disclose all information relevant to the Department’s investigation
- Provide all items, assistance, information, and documents required to be produced under the Department’s Swiss Bank Program
- Provide transaction information for relevant accounts, including accounts closed between 2008 and 2022
- Make reasonable efforts to close any remaining recalcitrant accounts
- Comply with all applicable federal criminal laws
United States v. Interunity Management (Deutschland) GMBH, et al.
On May 30, 2023, Interunity Management (Deutschland) GMBH, the corporate operator of the M/V Donald, pleaded guilty to one count of failing to maintain an accurate oil record book (ORB). In May 2022, crewmembers failed to record accurate information in the ORB, including transferring machinery space bilge water from the bilge to the sewage tank, and illegal bilge water discharges.
United States v. Zeus Lines Management S.A. et al.
On August 8, 2023, a court sentenced Zeus Lines Management S.A. (Zeus), to pay a $1,687,500 fine and make a community service payment of $562,500 to the National Fish and Wildlife Fund. Zeus also will complete a four-year term of probation to include implementing an environmental compliance plan and engaging a court appointed monitor. Captain Jose Ervin Mahigne Porquez will complete a two-year term of probation and Chief Engineer Roberto Cayabyab Penaflor will complete a three-year term.
Zeus, a vessel operating company, pleaded guilty to maintaining false and incomplete records relating to the discharge of oily bilge wastes and failing to report a hazardous condition on board the oil tanker M/V Galissas. Chief engineer Penaflor and Captain Porquez also pleaded guilty for their roles.
In February 2022, the defendants failed to maintain an accurate Oil Record Book and failed to report a hazardous condition on board the ship, specifically, that the inert gas system was inoperable. Zeus pleaded guilty to violating the Act to Prevent Pollution from Ships (APPS) and the Ports and Waterways Safety Act (PWSA) (33 U.S.C. § 1908(a); 46 U.S.C. § 70036(b)). Porquez pleaded guilty to violating APPS and Penaflor pleaded guilty to violating the PWSA.
The U.S. Coast Guard Investigative Service conducted the investigation.
Press Release: Vessel Operator, Captain and Chief Engineer Convicted of Environmental Crimes