Federal Partners Continue to Support Response to Western Fires

USDA, DOI, FEMA Provide Firefighters, Aircraft, and Federal Grants to Support Local Partners Combating Fires

WASHINGTON— Federal partners are working closely with first responders and firefighters from local, state, and tribal agencies to combat and monitor wildfires in Arizona, California, Colorado, New Mexico, Utah, Wyoming as well as other states. Through the National Interagency Fire Center, which coordinates resources from the US Forest Service, Department of the Interior and other federal agencies, firefighters, incident management teams, airtankers, helicopters, fire engines and other resources are being provided to supplement state and local resources as teams continue to respond to fires across the West.

Today, 19 active large fires are burning in nine states, including one of the largest wildfire in New Mexico history and one of the largest wildfires in Colorado history. To help fight these damaging fires, federal agencies have made approximately 4,500 firefighters available to aid in efforts to suppress and contain the fires.

Yesterday, the Forest Service announced the agency has mobilized eight additional aircraft to its firefighting fleet to ensure that an adequate number of airtankers are available for wildland firefighting efforts. With these additional airtankers, the Forest Service has 16 large airtankers and one very large airtanker available immediately for wildfire suppression. The Forest Service has the capability to mobilize an additional 11 large airtankers, should circumstances require it.

Additionally, the Forest Service and the Department of the Interior fire agencies can mobilize hundreds of helicopters and dozens of smaller aircraft, called “single-engine airtankers.”

To ensure states have the financial support they need, FEMA has provided Fire Management Assistance Grants to states with active large fires. These grants help cover eligible costs, on a 75 percent cost share basis, and can reimburse state and local costs associated with personnel and equipment used to combat fires. On Saturday June 9th, FEMA authorized the use of federal funds, through the Fire Management Assistance Grant Program (FMAG), to help with eligible firefighting costs for the High Park Fire located in Larimer County, Colorado and the Little Bear Fire located in Lincoln County, New Mexico. On May 26, an FMAG was approved for the Whitewater-Baldy Complex fire located in New Mexico.

While extremely serious fires are burning in several states, to date the season has been below average, meaning that additional resources remain available should they be necessary.

“We continue to support our state, local, and tribal partners as they work to contain and suppress the wildfires burning in the West,” said Secretary of Agriculture Tom Vilsack. “Our fire managers are bringing extensive resources to bear to respond vigorously to those wildfires threatening lives, communities, and cultural and natural resources, and we stand ready to provide additional eligible resources as necessary.”

“We’re bringing the full range of our federal, tribal, state, local and non-governmental resources together to manage these wildland fires and reduce risk to communities,” said Secretary of the Interior Ken Salazar. “We remain vigilant and continue to do all we can to ensure the safety of all firefighters in this challenging wildlife season.”

“FEMA continues to closely monitor the fires in several southwestern states, and is providing financial support through our Fire Management Assistance Grant program to assist efforts, led by firefighters, public safety officers, and emergency personnel, to fight and mitigate the volatile wildfire conditions,” said Secretary of Homeland Security Janet Napolitano.

On average the USDA Forest Service and the Department of the Interior bureaus respond to more than 20,000 wildfires per year. Federal firefighters, aircraft, and ground equipment are strategically assigned to parts of the country as the fire season shifts across the nation. Firefighting experts will continuously monitor conditions and move these assets as necessary to be best positioned and increase initial attack capabilities. In addition, federal agencies are conducting accelerated restoration activities nationwide that will result in healthier forests and will lessen fire risks in years to come.

Federal land managers are also helping communities prepare for wildfire. Federal partnerships with tribal, state, and local agencies strengthen preparedness programs, such as Firewise http://www.firewise.org/ and Ready Set Go! http://www.iafc.org/readySetGo that help families and communities prepare for and survive wildfire. You can also visit FEMA’s Ready.gov http://www.ready.gov, to learn more about steps you and your family can take now to be prepared for an emergency.

For more information, visit www.ready.gov.

Firefighter Fatality

The United States Fire Administration (USFA) has received notice of the following firefighter fatality:

Name: Caleb N. Hamm

Rank: Firefighter

Age: 23

Gender: Male

Status: Wildland Part-Time

Years of Service: 5

Date of Incident: 07/07/2011

Time of Incident: 1500hrs

Date of Death: 07/07/2011

Fire Department: Department of Interior Bureau of Land Management - Bonneville Hot Shots

Address: 2370 S 2300 W, Salt Lake City, UT 84101

Fire Department Chief: Chris Kirby

Incident Description: Firefighter Hamm fell ill while he was working on a fire line near Abilene, Texas. Hamm, a member of the Bureau of Land Management’s (BLM) Bonneville Interagency Hotshot crew, was being transported by helicopter to the hospital when he passed away from a cause still to be determined. Initial reports indicated that the extreme heat in Texas at the time may have been a factor in Hamm’s death.

Incident Location: Near Abilene, TX

Funeral Arrangements: 07/14/2011 @ 1100hrs, Double Tree Riverside Hotel, 2900 West Chinden Boulevard, Boise, ID

Memorial Fund Contact and Address: Pending

Tribute is being paid to Firefighter Caleb N. Hamm at http://www.usfa.dhs.gov/fireservice/fatalities/

To date, 50 firefighter fatalities have been reported to USFA in 2011; 45 from incidents that occurred in 2011 and five from previous years’ incidents.  Year-to-date monthly and annual USFA firefighter fatality reports are posted online @ http://www.usfa.dhs.gov/fireservice/fatalities/statistics/ff_stats.shtm.

Departments of Homeland Security, Interior, and Agriculture Collaborate on Operation Trident

Tucson, Ariz. – Federal law enforcement officers from the U.S. Department of Homeland Security’s Customs and Border Protection, the Department of Interior, and Department of Agriculture are teaming up to counter illegal cross-border activity on federal public lands in Arizona.

Operation Trident is a collaborative enforcement approach that leverages the capabilities and resources of these three federal agencies to counter the threats posed by transnational criminal organizations, protect public lands from environmental damage, and deter violations of cultural and environmental laws.

“Our partnerships with federal law enforcement partners are critical to our ability to secure our communities from smuggling organizations,” said Tucson Sector Chief Patrol Agent Randy Hill. “As a result of Operation Trident, we are reducing criminal activity along the Arizona/Mexico border while protecting public lands from environmental degradation.”

More than 80 percent of the Tucson Sector area of responsibility falls within public lands managed by DOI and USDA. On Feb. 9, the U.S. Border Patrol began conducting joint operations with representatives from the Bureau of Land Management, National Park Service, Fish and Wildlife Service, and the U.S. Forest Service to counter criminal activity on these lands – particularly smuggling.

Operation Trident is just one of many ways in which DHS is working with its law enforcement partners to more effectively counter the threats posed by transnational criminal organizations in Arizona.

On Feb. 8, CBP Commissioner Alan Bersin and U.S. Immigration and Customs Enforcement Homeland Security Investigations Special Agent in Charge for Arizona Matthew Allen announced the results to date from the Alliance to Combat Transnational Threats (ACTT), a collaborative enforcement effort put in place in September 2009 to leverage the capabilities and resources of more than 60 federal, state, local and tribal agencies in Arizona and from the Government of Mexico to combat individuals and criminal organizations that pose a threat to communities on both sides of the border.

U.S. Customs and Border Protection is the unified border agency within the Department of Homeland Security charged with the management, control and protection of our nation's borders at and between the official ports of entry. CBP is charged with keeping terrorists and terrorist weapons out of the country while enforcing hundreds of U.S. laws.

Richmond Man Pleads Guilty for Orchestrating Multi-Million Dollar Rehabilitation Tax Credit Scheme

RICHMOND, VA— Justin Glynn French, 40, of Richmond, Va., pleaded guilty today to stealing millions from federal and state tax credit programs intended to rehabilitate historic buildings.

Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Ken Cuccinelli, Attorney General of Virginia; Michael F.A. Morehart, Special Agent in Charge of the FBI's Richmond Field Office; Rebecca Sparkman, Special Agent in Charge of the Internal Revenue Service Criminal Investigation's Washington, D.C., Field Office; and Colonel W. Steven Flaherty, Superintendent of Virginia State Police, made the announcement after the plea was accepted by United States District Judge John A. Gibney, Jr.

"Justin French stole millions from taxpayers to get rich and establish a prominent place the real estate market in Richmond," said U.S. Attorney MacBride. "Today, Mr. French admitted that his greed led him to defraud federal and state programs that were intended to revitalize historic Richmond all for his own benefit. Mr. French would not have been caught without the close partnership of state and federal law enforcement."

"Justin French stole from the commonwealth and the federal government by fraudulently obtaining tax credits that were meant to encourage the redevelopment of historic structures," said Attorney General Cuccinelli. "He got rich off the backs of taxpayers and now he will be held accountable for his actions. Stopping him and successfully prosecuting him has proven to be a stellar example of cooperation among state and federal law enforcement."

French pled guilty today to wire fraud and engaging in unlawful monetary transactions through a criminal information. He faces a maximum penalty of 30 years in prison, restitution to the victims, a fine of up to $500,000, and three years of supervised release when he is sentenced on May 3, 2011.

According to the statement of facts filed with the plea agreement, Justin French was the owner and operator of French Consulting Company, a Richmond-based real estate development company. He actively sought state and federal historic tax credits as his company worked to rehabilitate a number of historic properties throughout the Richmond area.

At the state level, the Virginia Department of Historic Resources (VDHR) administered the Virginia Historic Rehabilitation Tax Credit program. That program allowed the property owner to receive a state income tax credit equal to 25 percent of the amount spent on eligible rehabilitation expenses. At the the federal level, the U.S. Department of the Interior National Park Service (DOI-NPS) administered the Federal Historic Preservation Tax Incentives program. This program encouraged private sector rehabilitation of historic buildings through tax credit equal to 20 percent of the amount spent on eligible rehabilitation expenses.

Through court documents, French admitted that since 2005, he has initiated the historic rehabilitation tax credit application process on at least 35 properties in Richmond, and approximately 20 were completed. As of August 2010, French had an additional 16 projects in the early stages of the tax credit approval process, which were aimed at producing additional requests for federal and state tax credits.

One of these projects formed the heart of the wire fraud charge French pled guilty to today. On March 7, 2008, French purchased a property located at

1509 Belleville Street

in Richmond. In correspondence with the bank that funded a loan for the project, French stated that he had purchased the property for $700,000 and expected the rehabilitation costs to be approximately $200,000.

In November 2008, French began the application process seeking federal and state rehabilitation tax credits for this property. On March 20, 2009, he submitted the final tax credit applications and required CPA cost certification for

1509 Belleville Street

to the VDHR. In those applications, he represented the rehabilitation costs as $1,571,503. On March 26, 2009, the VDHR approved French's state application and awarded him $392,875.75 in state tax credits. On April 17, 2009, the DOI-NPS approved French's federal application authorizing him $314,300.60 in federal tax credits for this project.

Today, French admitted that the tax credits he requested for this property were grossly inflated. The actual authorized expenses for the purpose of obtaining state and federal historic rehabilitation tax credits should have been approximately $336,000 (including the 20 percent developer fee), as opposed to the $1,571,503 represented to state and federal authorities. If the actual amounts consistent with the bank loan file had been submitted to the state and federal authorities, French would have received approximately $84,000 (including the allowable 20 percent developer fee) in Virginia tax credits (as opposed to $392,875.75 in Virginia tax credits) and $67,200 (including the allowable 20 percent developer fee) in federal tax credits (as opposed to $314,300.60 in federal tax credits). The combined total of federal and state tax credits French illegally obtained by inflating the rehabilitation expenses for

1509 Belleville Street

was approximately $555,976.35.

French's subsequent transactions with a number of private investors who purchased these tax credits resulted in his pleading to engaging in unlawful monetary transactions. As part of the investment process, French caused the mailing of subscription agreements via United States mail to the individual investors. Those investors, in turn, executed the subscription agreements and returned those documents along with their investment funds to the defendant. In February 2009, those individual investors provided the defendant with approximately $228,800 in exchange for purchasing the state tax credits related to

1509 Belleville Street

. These investor funds were deposited into a First Market Bank business checking account for the

1509 Belleville Street

project. French subsequently transferred $218,000 of those funds to his personal money market savings account at First Market Bank.

Overall, French agreed in his plea agreement that the intended and actual tax credit losses connected to the

1509 Belleville Street

and other rehabilitation projects was between $7 million and $20 million. The defendant also agreed to pay full restitution for the losses he caused in connection with the ongoing rehabilitation tax credit scheme, which will be determined as the victims and loss amounts are identified in the ongoing investigation.

French has further agreed to an order of forfeiture imposing a monetary judgment of $7 million, representing the proceeds of the fraudulent scheme. At this time, he has agreed to forfeit the assets listed in the First Consent Order of Forfeiture entered today. The investigation to identify additional assets remains ongoing.

This case was investigated by the Federal Bureau of Investigation Richmond Office, the Internal Revenue Service Criminal Investigation Division, the U.S. Department of the Interior Office of Inspector General, the U.S. Department of Energy Office of Inspector General, the Virginia State Police, the Raleigh, North Carolina Police Department, and the National White Collar Crime Center. The Virginia Department of Historic Resources also assisted law enforcement in the investigation. Assistant United States Attorneys Michael Gill and Laura Marshall and Special Assistant Attorneys Patrick Dorgan and Shannon Dion are prosecuting the case on behalf of the United States.

A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on http://pacer.uspci.uscourts.gov/.