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Politics

Garland to announce DOJ probe of Minneapolis police after Chauvin verdict

President Joe Biden listens as Attorney General Merrick Garland speaks in the Rose Garden of the White House in Washington on April 8, 2021, on gun violence prevention executive measures.

Kevin Lemarque | Reuters

Attorney General Merrick Garland will announce Wednesday that the Justice Department is opening an investigation into the practices of the Minneapolis Police Department, Justice Department officials told NBC News.

The announcement will come the day after former Minneapolis police officer Derek Chauvin was convicted by a jury for the murder of George Floyd, an unarmed black man who was killed in custody last year.

The announcement, expected at 10 a.m. ET, was reported earlier by the Associated Press.

The Justice Department probe is known as a sample or exercise exam. The Justice Department had previously announced a separate investigation into whether Chauvin was violating Floyd’s civil rights.

This is the latest news. Check for updates again.

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DOJ sues Trump ally Roger Stone, spouse over alleged unpaid taxes

Roger Stone, longtime political ally of US President Donald Trump, is leaving after a status hearing in the criminal proceedings initiated against him by special adviser Robert Mueller on March 14, 2019 at the US District Court in Washington.

Joshua Roberts | Reuters

The Justice Department on Friday sued Roger Stone, the loyal former advisor to ex-President Donald Trump, claiming he and his wife owe nearly $ 2 million in unpaid federal taxes and other fees.

The lawsuit accuses Stone and Nydia Stone of using an “alter ego” business to “protect their personal income from forced collection and fund a lavish lifestyle.”

The civil lawsuit also accuses the Stones of “trying to defraud the United States” by fraudulently transferring money used to buy their home.

Stone, 68, a longtime Republican politician, was pardoned by Trump in December after being convicted of lying by Congress.

The DOJ’s complaint filed in federal court in South Florida alleges Stone and his wife underpaid their income taxes for five consecutive years in 2007 and 2011. The Stones owe $ 1,590,361.89, including interest and penalties for late payments, according to the complaint.

The lawsuit also alleges Stone failed to pay his full tax bill in 2018 when he filed separately from his spouse. He owes income taxes, interest and penalties of $ 407,036.84 for that year, the complaint said.

“Despite the termination and demand for payment, Roger and Nydia Stone failed and refused to pay the full amount of the debt they owed,” claims the DOJ.

Stone did not immediately respond to an email asking for comment on the lawsuit.

The complaint alleges that by using a Delaware limited liability company called Drake Ventures, the Stones “escaped and thwarted the collection efforts of the IRS.” The company is so dominated and controlled “by the family” that it does not exist as an independent entity, “claims the DOJ.

Drake Ventures has no website or phone number, all members are part of Stone’s family, and its address is the same as the Stone’s home in Fort Lauderdale, Florida, the complaint states.

“The Stones used Drake Ventures’ bank accounts to pay a significant portion of their personal expenses, including groceries, dental bills, spas, salons, clothing and restaurant expenses,” the complaint said.

They paid more than $ 500,000 of their personal tax liabilities through Drake Ventures’ bank accounts in 2018 and 2019 and used the company to pay Stone employees and relatives without providing proper documentation, the DOJ claims.

“The Stones used Drake Ventures for an improper purpose and harmed the United States,” the complaint read. “They used Drake Ventures to receive payments to be made to Roger Stone personally, pay their personal expenses, shield their assets and avoid reporting taxable income to the IRS.”

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Business

SpaceX engineer pleads responsible to DOJ insider buying and selling fees

SpaceX headquarters in Los Angeles, California.

AaronP / Bauer-Griffin | GC Images | Getty Images

A SpaceX engineer pleaded guilty to a Justice Department charge of insider trading, the agency said Thursday after using information obtained on the dark Internet to trade public securities using non-public information.

The DOJ’s criminal case against James Roland Jones of Hermosa Beach, California was investigated by the FBI in 2017.

In the government’s appeal agreement announcement, Jones was identified as a SpaceX engineer, although the agency did not specify whether he was currently working for the space company or whether he was doing so at the time of the fraud.

The US Securities and Exchange Commission also accused Jones of “carrying out a fraudulent operation to sell what he called” insider tips “online for Bitcoin. The SEC did not have SpaceX in its complaint called.

The case does not appear to be related to any information about or relating to SpaceX.

SpaceX, the DOJ, and the SEC did not immediately respond to CNBC’s requests for comment.

The DOJ said Jones used the nickname “MillionaireMike” to purchase information such as address, date of birth, and social security number on the dark internet. The SEC-defined dark web “refers to anything on the Internet that is not indexed or accessible through a search engine like Google.”

Jones then used that information to conduct financial transactions on material, nonpublic information, the DOJ claims. In April 2017, an undercover FBI agency gave Jones “alleged inside information regarding a publicly traded company,” the DOJ said.

“From April 18, 2017 to May 4, 2017, Jones and a conspirator conducted numerous securities transactions based on this alleged inside information,” the DOJ said.

The SEC accused Jones of violating the federal securities law. Jones agreed to a forked settlement with the SEC and faces a maximum five-year sentence in federal prison under his request to the DOJ.

“This case shows that the SEC can and will prosecute securities law violations wherever they operate, including the Internet,” said David Peavler, director of the SEC’s Fort Worth regional office, in a statement.

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Health

Biden DOJ reverses Trump-era place

An Obamacare sign is seen outside the Leading Insurance Agency, which is offering plans under the Affordable Care Act (also known as Obamacare) on January 28, 2021 in Miami, Florida.

Joe Raedle | Getty Images

The Justice Department informed the Supreme Court on Wednesday that it no longer considers Obamacare to be unconstitutional. This is the last reversal of the department since President Joe Biden’s inauguration in January.

The Supreme Court is considering contesting Obamacare, officially known as the Affordable Care Act, filed by Texas and other Republican-led states. The Justice Department under former President Donald Trump supported Texas in legal pleadings and verbal disputes in November.

California and other blue states are defending the law that gave 20 million Americans health insurance.

“After the change in administration, the Department of Justice has rethought the government’s position in these cases,” wrote Edwin Kneedler, assistant attorney general, in a letter to Scott Harris, the clerk of the court.

The reversal of Biden’s Justice Department was expected. Biden played a role in the implementation of monumental legislation by Congress in 2010 while serving as Vice President under then-President Barack Obama.

The case concerns Obamacare’s individual mandate provision that requires most Americans to purchase health insurance or pay a fine.

The Supreme Court previously upheld the individual mandate as lawful under the tax powers of Congress. After the Republicans in Congress set the penalty at $ 0 in 2017, Texas raised its challenge, arguing that the mandate was no longer a tax.

The Trump Justice Department agreed that the mandate was unconstitutional. The department also argued that if the Supreme Court scraps the individual mandate, it will have to scrap the entire Affordable Care Act.

Kneedler wrote that under Biden the Justice Department had reversed its position on both issues. The department, he wrote, believes the individual mandate determination is lawful and that the provision can be removed if the court does not find it while the rest of the law persists.

During the hearing in the case, it appeared unlikely that the judges would scrap the legislation entirely, although it was not clear whether a majority would find the individual mandate unlawful. Chief Justice John Roberts and Justice Brett Kavanaugh, both Conservatives, suggested they support the separation of individual mandate provisions from the rest of the sweeping law.

Kneedler, who has served in the Justice Department under the presidents of both major political parties for more than 40 years, wrote in the letter that the ministry had not attempted to file further briefs on the case. A decision is expected in the summer.

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Business

SpaceX subpoena battle with the DOJ set for March court docket listening to

A Falcon 9 rocket will be launched in Hawthorne, California on January 28, 2021 in front of the Space Exploration Technologies Corp. headquarters. (SpaceX) issued.

Patrick T. Fallon | AFP | Getty Images

The Justice Department’s efforts to get SpaceX to comply with a subpoena for corporate hiring documents will be heard by a federal judge on March 18.

That date for the hearing was set on Monday after attorneys from SpaceX, fighting the subpoena, and the DOJ videoconference with Judge Michael Wilner for a planning session. Wilner gave SpaceX attorneys until February 26 to file a response to the subpoena requested by the DOJ. The government then had until March 12th to respond to SpaceX.

The DOJ has been investigating for months whether Elon Musk’s space company discriminates against foreigners when it is hired, court records show.

The investigation was launched by the department’s Immigration and Workers Rights division after a candidate, Fabian Hutter, complained that SpaceX discriminated against him when he asked for a technical strategy position during an interview last March his citizenship status was asked.

Hutter told CNBC that he believes SpaceX decided not to hire him after answering a question about his citizenship. Hutter has dual citizenship in Austria and Canada, but is legally permanent resident of the United States according to court records filed in the US District Court for the Central District of California.

The DOJ unit is not only investigating Hutter’s complaint, but “can also investigate whether [SpaceX] engages in a pattern or practice of discrimination “that is prohibited by federal law, as records show.

As part of that investigation, investigators issued a subpoena in October requesting SpaceX to provide information and documents related to recruitment and employability review procedures.

However, SpaceX did not fully comply with the subpoena after the DOJ received a table of employee information.

That’s why DOJ attorney Lisa Sandoval asked Wilner in a lawsuit last month to order SpaceX to comply with the request for documents.

Wilner hinted in an earlier filing that SpaceX might have a hard time blocking the subpoena, referring to an earlier decision he had made on an unrelated case.

In this other case, Wilner flatly dismissed a company’s arguments against complying with a subpoena to discontinue information.

The DOJ has declined CNBC’s request for comment on its investigation, while SpaceX has failed to respond to multiple requests for comment.

SpaceX may hire non-US citizens who hold a green card under the US International Traffic in Arms Regulations.

Known as ITAR, these rules state that only Americans or foreigners with a US green card can have physical or digital access to items on the US ammunition list, which consists of defense-related equipment, software, and other materials.

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Politics

Biden DOJ drops swimsuit alleging discrimination in opposition to White, Asian candidates

Students walk on the Yale University campus in New Haven, Connecticut.

Shannon Stapleton | Reuters

The Justice Department on Wednesday dropped a case against Yale University alleging the Ivy League institution discriminated against white and Asian applicants in its admissions process.

The decision, announced in a filing with the Connecticut Federal District Court, marks a reversal of the stance of the Justice Department under President Donald Trump, whose administration spoke out against educational policies geared towards increasing racial diversity. President Joe Biden had made racial justice a top priority in his administration.

Yale had denied allegations that its licensing practices were discriminatory. In a statement, spokeswoman Karen Peart said the school was “satisfied” with the DOJ’s decision.

“Our admissions process has enabled Yale College to bring together an unprecedented student body characterized by academic excellence and diversity,” said Peart.

The Trump Justice Department targeted higher education institutions for admissions practices that took into account applicants’ race and country of origin.

The Supreme Court has repeatedly upheld racial licensing practices, despite setting limits on how important a factor racing can be.

The Justice Department announced in August that a two-year investigation found that Yale’s practices were unlawful.

“Although the Supreme Court ruled that colleges receiving federal funding may, in certain circumstances, consider the race of applicants as one of several factors, the Justice Department found that Yale’s use of the breed is far from limited,” the department said in a press release at the time.

The department said Yale used the race “in several steps of its eligibility process, resulting in a multiplied effect of the race on an applicant’s likelihood of eligibility, and Yale racially equalizes its classes.”

Including racing in admissions processes is common among US universities, but remains controversial.

In November, the U.S. First Appeals Court dismissed a separate lawsuit challenging Harvard University’s use of the breed in admissions because the school discriminated against Asians.

The Justice Department sided with Students for Fair Admissions, the group behind the lawsuit, in one case by a court friend.

Edward Blum, the Conservative strategist who founded Students for Fair Admissions, said it was likely his faction would appeal to the Supreme Court, where a new Conservative majority of 6-3 is more suited to positive action than previous courts.

In recent years, the Supreme Court’s challenges to positive action have been fiercely fought.

The last time the Supreme Court reviewed the practice in 2016, it narrowly upheld it as it was being used at the University of Texas at Austin. The court ruling on this case was 4-3 and was drafted by Judge Anthony Kennedy, a frequent swing vote.

Since the decision known as Fisher v University of Texas was made, Kennedy has retired and Judge Ruth Bader Ginsburg, also in the majority, has died. In addition, three other Conservative judges have joined the bank, making it more likely that the court could rule against positive action in the future.

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Biden to order DOJ to finish non-public jail contracts as a part of racial fairness push

President Joe Biden signs an executive order for transgender people for military service in the Oval Office of the White House in Washington, USA on January 25, 2021 when he meets with new Secretary of Defense Lloyd Austin.

Kevin Lemarque | Reuters

President Joe Biden will order his Justice Department on Tuesday not to renew his private prison contracts, one of several new planks on Biden’s broader agenda for racial justice.

Biden is ready to sign four more executive measures after submitting his press schedule to the White House at 2:00 p.m. CET according to his press schedule. Vice President Kamala Harris will also attend the event.

Actions are aimed at tackling discriminatory housing practices, reforming the prison system, respecting the sovereignty of tribal governments, and combating xenophobia against Asian Americans, especially in the face of the Covid pandemic.

The actions are just the latest in a comprehensive flex of the presidential powers in the first week. According to a preview from senior administrators, Biden will sign on Tuesday afternoon:

  • An executive order directing Biden’s attorney general not to renew DOJ contracts with privately operated penal institutions
  • A presidential memorandum directing the Department of Housing and Urban Development to investigate the impact of the Trump administration’s regulatory actions that “undermine fair housing policies and laws.” Based on this analysis, the memo also instructs the HUD to take steps to fully implement the requirements of the Fair Housing Act.
  • An executive order urging federal agencies to deal with tribal governments regularly and meaningfully
  • And an executive memorandum directing the Department of Health and Human Services and the Covid Health Equity Task Force to publish best practices in their Covid response efforts to promote “cultural literacy” and sensitivity towards Asian Americans and islanders in the Pacific to consider. The memo also instructs the DOJ to work with these communities to prevent hate crimes and harassment against them.

The President’s speech and signatures will be preceded by a press conference at 12:30 p.m., at which domestic affairs adviser Susan Rice is due to appear alongside the White House press secretary Jen Psaki.

“America never kept its basic promise of equality for all, but we never stopped trying,” Biden said Tuesday morning in a tweet from the president’s official Twitter account.

“Today I will take action to promote racial justice and bring us closer to the more perfect union we have always been looking for.”

The White House said in a separate tweet that the new measures will “promote racial justice and support communities of color and other underserved communities.”

Biden put questions of racial justice at the center of his winning campaign against former President Donald Trump. Shortly after he took office, Biden signed an executive order setting his government’s focus on social justice and repealing some of his predecessor’s policies.

In particular, the January 20 action overturned Trump’s September order to restrict federal entrepreneurs’ ability to deliver training on diversity and inclusion in the workplace.

Biden also ended the Trump administration’s “1776 Commission” which, in the final days of Trump’s tenure, produced a report that was extremely critical of progressive ideologies.

Biden’s command charged the Rice-headed Home Affairs Council with coordinating “efforts to embed principles, strategies, and approaches of justice throughout the federal government.”

“This includes efforts to remove and provide equal access to systemic barriers to opportunity and benefit, identify communities that have been underserved by the federal government, and develop strategies to advance equity for those communities,” it said in this regulation.

Biden is expected to return to the state dining room at 4:45 p.m. to speak about his government’s efforts to contain the Covid pandemic.