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United States Attorney Richard P. Donoghue announced today that the Eastern District of New York collected over $1.1 billion in criminal and civil actions in fiscal year 2019.  Of this amount, $24,687,372 was collected in criminal actions, and $1,093,836,145 was collected in civil actions handled solely by the Eastern District.  Additionally, $1,012,187 resulted from cases handled in conjunction with other U.S. Attorney’s Offices and litigating divisions of the Department of Justice, including the forfeiture of $215,491,403 in assets tainted by crime. 

“The Eastern District’s recoveries in fiscal year 2019 are notable for having achieved economic justice on behalf of those who were harmed by individuals and corporate entities that put profits ahead of individuals and their well-being,” stated United States Attorney Donoghue.  “This Office is committed to vigorously pursuing civil and criminal penalties from wrongdoers.”

FY 2019 Collections Highlights

In October 2018, the Eastern District of New York recovered $480 million in civil penalties from Nomura Holding America Inc. and several of its affiliates to resolve claims that Nomura misled investors in connection with the marketing, sale and issuance of residential mortgage-backed securities between 2006 and 2007.

Also in October 2018, AmerisourceBergen Corporation, one of the nation’s largest wholesale drug companies, and its subsidiaries AmerisourceBergen Specialty Group, AmerisourceBergen Drug Corporation, Oncology Supply Company and Medical Initiatives, Inc. (collectively “ABC”), entered into a settlement agreement with the United States in which ABC agreed to pay $625 million to resolve civil liability under the False Claims Act.  The claims against ABC arose from its repackaging and distributing of pre-filled syringes that were not approved for sale or use by the U.S. Food and Drug Administration.  The drugs involved in the scheme were supportive drugs for cancer patients undergoing chemotherapy treatment.

Collections Overview

The U.S. Attorneys’ Offices, along with the Department of Justice litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims.  The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss.  While restitution is paid to the victims, criminal fines and felony assessments are paid to the Department of Justice Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.  Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund, and are used to restore funds to crime victims and for a variety of law enforcement purposes.

The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct, or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws.  In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.

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