District of Arizona
Press releases recorded for this federal judicial district.
U.S. Attorney’s Office Announces “Be Here for Kids” Child Safety Event in TucsonRead the Press Release
TUCSON, Ariz. - The U.S. Attorney’s Office for the District of Arizona, as part of the Department of Justice’s Project Safe Childhood initiative, is hosting the ‘Be Here for Kids’ event on Friday, June 8, 2018 at the University of Arizona’s Student Recreation Center, located at 1400 E. 6th Street. The event will take place from 11:00 a.m. to 4:00 p.m.
The National Center for Missing and Exploited Children (NCMEC) created the ‘Be Here for Kids’ campaign to promote awareness about all child safety issues. The campaign is designed to help parents and others teach children to be aware, alert, and cautious to potential threats and to provide steps that children can take to stay safe, both on the Internet and in daily life.
This year’s event is being presented in partnership with the University of Arizona Youth and Activities Department of Campus Recreation. Agencies participating in the event include, but are not limited to, The Arizona Rangers, Arizona Poison & Drug Information Center, Be Smart Gun Safety, Girl Scouts of Southern Arizona, MADD, Pima County Sheriff’s Office, Red Cross, and UMC Banner Child Life Program and Volunteer Resources, along with several local, state, and federal law enforcement agencies.
There will be several special four legged guests attending this year’s event. McGuff the Crime Dog, ATF’s Kira, Border Patrol’s Beny, and Tucson Police Department’s Luna. A few activities of interest include Ko Sho Martial Training Institute’s interactive self-defense demonstration at 1:30. Beginning at 2:30, Tucson Fire Department will have a wet-down for the children. After the event, there will be a presentation for children and parents to discuss the importance of good online citizenship and protecting yourself from online predators.
For more information on NCMEC, visit www.missingkids.com. For more information about the Be Here for Kids campaign, visit www.missingkids.com/behereforkids. For more information on Project Safe Childhood, visit www.projectsafechildhood.gov.
RELEASE NUMBER: 2018-075_Be Here for Kids_Tsn
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Attorney General Sessions Announces 311 New Assistant United States Attorney PositionsRead the Press Release
PHOENIX – Attorney General Jeff Sessions and First Assistant United States Attorney Elizabeth A. Strange for the District of Arizona announced that the Department of Justice is taking a dramatic step to increase resources to combat violent crime, enforce our immigration laws, and help roll back the devastating opioid crisis.
In the largest increase in decades, the Department of Justice is allocating 311 new Assistant United States Attorneys to assist in priority areas. Those allocations are as follows: 190 violent crime prosecutors, 86 civil enforcement prosecutors, and 35 additional immigration prosecutors. Many of the civil enforcement AUSAs will support the newly created Prescription Interdiction & Litigation Task Force which targets the opioid crisis at every level of the distribution system.
"Under President Trump's strong leadership, the Department of Justice is going on offense against violent crime, illegal immigration, and the opioid crisis—and today we are sending in reinforcements," said Attorney General Jeff Sessions. "We have a saying in my office that a new federal prosecutor is 'the coin of the realm.' When we can eliminate wasteful spending, one of my first questions to my staff is if we can deploy more prosecutors to where they are needed. I have personally worked to re-purpose existing funds to support this critical mission, and as a former federal prosecutor myself, my expectations could not be higher. These exceptional and talented prosecutors are key leaders in our crime fighting partnership. This addition of new Assistant U.S. Attorney positions represents the largest increase in decades."
The U.S. Attorney’s Office for the District of Arizona will receive 10 of the newly-created positions. “We are very grateful to be receiving such a dramatic infusion of prosecutorial and enforcement resources,” stated First Assistant U.S. Attorney Strange. “Our office is dedicated to securing the border, combatting the violent crime that plagues our cities and tribal communities, and addressing the opioid crisis in Arizona. These additional attorneys will allow us to make even greater strides in these important areas to enhance the safety of our communities.”
RELEASE NUMBER: 2018-074_ AUSAs
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Three Men Sentenced to Prison for Crimes Involving Counterfeit Currency and FirearmsRead the Press Release
TUCSON, Ariz. – On May 29, 2018, Osmar Bustamante-Figueroa, 21, of Tucson, Ariz., was sentenced by U.S. District Judge Jennifer G. Zipps to 65 months’ imprisonment. Bustamante was the third of three defendants convicted of crimes involving producing and passing counterfeit U.S. currency and unlawfully possessing firearms. Bustamante’s co-defendants, Clinton Young, 43, of Irving, Texas, and Jose Manuel Valenzuela, 19, of Tucson, Ariz., had previously pleaded guilty and been sentenced to 15 and 16 months in prison, respectively, for conspiracy to pass or possess counterfeit currency.
Beginning in early 2016, Bustamante and Young began counterfeiting Federal Reserve Notes, which Bustamante and Valenzuela used to purchase firearms from private individuals selling firearms via online advertisements. Between March and June of 2016, Bustamante and his co-conspirators passed more than $50,000 worth of counterfeit currency to at least sixteen identified victims in exchange for various firearms. At the time of these transactions, Bustamante was under indictment on State (Arizona) felony drug charges.
The investigation in this case was conducted by the United States Secret Service and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the Tucson Police Department. The prosecution was handled by Rosaleen O’Gara and Angela W. Woolridge, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-17-00486-TUC
RELEASE NUMBER: 2018-073_Bustamante-Figueroa etal
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
California Man and Tucson Woman Each Sentenced to 4 Years Prison for Smuggling Ammunition into MexicoRead the Press Release
TUCSON, Ariz. – On May 25, 2018, Miguel Ochoa-Ruiz, 39, of Concord, Calif., was sentenced by U.S. Senior District Judge Frank R. Zapata to 48 months’ (4 years) imprisonment. Ochoa-Ruiz had been previously been found guilty following a trial of smuggling goods from the United States and conspiracy. Ochoa-Ruiz’s co-defendant, Ana Guadalupe Carillo-Villa, 23, of Tucson, Ariz., had also previously been sentenced to a total of 48 months’ imprisonment by U.S. Chief District Court Judge Raner C. Collins, after pleading guilty to smuggling goods from the United States, conspiracy, and possession of ammunition by a convicted felon.
On July 7, 2016, Ochoa-Ruiz purchased 2,000 rounds of rifle ammunition and 248 high-capacity rifle magazines in Phoenix. He and Carillo-Villa transported these items to Nogales, Ariz., where Carillo-Villa attempted to smuggle them across the border into Mexico. Customs and Border Protection officers stopped Carillo-Villa at the Port of Entry and intercepted the ammunition and magazines in her vehicle. Ochoa-Ruiz returned to Phoenix the next day and purchased an additional 11,000 rounds of ammunition, which he again drove to Nogales in attempt to smuggle it into Mexico. Law enforcement agents stopped Ochoa-Ruiz before he attempted to leave the United States and seized the ammunition. Evidence obtained in the subsequent investigation established that Ochoa-Ruiz and Carillo-Villa had conspired to smuggle ammunition into Mexico on at least four prior occasions.
The investigation in this case was conducted by the Department of Homeland Security – Homeland Security Investigations, with assistance from Customs and Border Protection, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The prosecution was handled by Angela W. Woolridge, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-16-1475-TUC-FRZ
RELEASE NUMBER: 2018-072_Ochoa-Ruiz
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Tucson Teacher Sentenced to 87 Months in Prison for Distribution and Possession of Child PornographyRead the Press Release
TUCSON, Ariz. – On May 22, 2018, Ryan Bono, 37, of Tucson, Ariz., was sentenced by U.S. District Judge James A. Soto to 87 months in prison. Bono previously pleaded guilty to two counts of distribution of child pornography, one count of possession of child pornography, and one count of knowing access of child pornography. Bono’s term of imprisonment will be followed by lifetime supervised release, with stringent sex offender conditions, including the condition that he register as a sex offender.
A 2017 investigation by HSI revealed that Bono had been distributing sexually explicit images of children online using file-sharing software. A search of Bono’s computers and media storage devices revealed that he had downloaded hundreds of images and videos depicting sexual abuse of pre-pubescent children. In handing down the sentence, the Court found that Bono posed a danger, in part because he had placed himself around children by working as a middle school teacher and soccer coach.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The investigation in this case was conducted by Homeland Security Investigations, Tucson Office. The prosecution was handled by Carin C. Duryee, District of Arizona, Tucson.
CASE NUMBER: CR-17-0686-TUC-JAS
RELEASE NUMBER: 2018-070_Bono
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Camp Verde Man Sentenced to 36 Months in Prison for Assault with a Dangerous WeaponRead the Press Release
PHOENIX – Yesterday, Jose Manuel Lara, Jr., 20, of Camp Verde, Ariz., was sentenced by U.S. District Judge David G. Campbell to 36 months in federal prison, followed by three years of supervised release. The original sentence of 45 months was reduced by nine months to reflect credit for time Lara Jr., served in tribal custody for the same offense. Lara, Jr. had previously pleaded guilty to one count of assault with a dangerous weapon.
On June 25, 2017, Lara, Jr., an enrolled member of the Yavapai-Apache Nation, assaulted the victim, also a member of the Yavapai-Apache Nation, by running him over with a vehicle. The victim suffered serious bodily injury and required multiple surgeries.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Yavapai-Apache Nation Police Department. The prosecution was handled by Christina Covault, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-8203-PCT-DGC
RELEASE NUMBER: 2017-069_Lara
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Safford Man Sentenced to over 17 Years in Prison for Distribution and Possession of Child PornographyRead the Press Release
TUCSON, Ariz. – On May 16, 2018, Wayne Montierth, 54, of Safford, Ariz., was sentenced by U.S. District Judge James A. Soto to serve 210 months in prison. After a trial, a jury found Montierth guilty of four counts of distribution of child pornography and one count of possession of child pornography. Montierth’s term of imprisonment will be followed by lifetime supervised release with stringent sex offender conditions, including the requirement that he register as a sex offender.
A 2015 investigation by the FBI revealed that Montierth had been distributing sexually explicit images of children online using file-sharing software. A search of Montierth’s computer revealed thousands of images and videos depicting child sex abuse. In handing down the sentence, the Court found that the evidence showed Montierth had engaged in an on-going pattern of activity involving sexual abuse of children.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The investigation in this case was conducted by the Federal Bureau of Investigation, Sierra Vista Office. The prosecution was handled by Carin C. Duryee, District of Arizona, Tucson.
CASE NUMBER: CR-15-02103-TUC-JAS
RELEASE NUMBER: 2018-066_Montierth
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Kayenta Woman Sentenced to Prison for Injuring Children during Car Accident on Navajo Nation Indian ReservationRead the Press Release
PHOENIX – Today, Larrissa Helen Smith, 29, of Kayenta, Ariz., was sentenced by U.S. District Judge Douglas L. Rayes to 12 months and one day in prison, followed by three years of supervised release, for a car accident that resulted in injuries to four minor children. Smith had previously pleaded guilty to one count of assault resulting in serious bodily injury.
During the early morning hours of March 20, 2017, Smith was driving on Highway 163 on the Navajo Nation Indian Reservation when she caused her Chevy Tahoe to go airborne and then crash into a dirt embankment. The vehicle contained four unrestrained children, all of whom suffered injury as a result of the crash. Laboratory testing revealed both alcohol and methamphetamine in Smith’s system at the time of the accident. Smith is an enrolled member of the Navajo Nation Indian Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Christine Ducat Keller, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-08153-PCT-DLR
RELEASE NUMBER: 2018-068_Smith
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Bank Robber and Getaway Driver Sentenced to Prison for Bank Robbery SpreeRead the Press Release
TUCSON, Ariz. – Today, Jason Matthew Wells, 50, of Tucson, Ariz., was sentenced by U.S. District Judge Rosemary Marquez to 51 months’ imprisonment. Wells had previously pleaded guilty to two counts of armed bank robbery and aiding and abetting.
During Oct. 2017, while wearing a disguise, Wells robbed a credit union and a Wells Fargo Bank with the use of a simulated handgun. He fled the banks and entered a waiting vehicle driven by his accomplice, Richard Dennis Langlois. After the robbery of the Wells Fargo Bank, a lengthy car chase by local law enforcement ensued. Langlois eventually stopped the stolen vehicle he was driving and abandoned the vehicle. Wells was caught after a foot chase in which he ran through neighborhoods and dropped a bag containing over $10,000 in cash, his wallet, and his cellular telephone. Cash from the robbery was strewn all over a backyard he fled through during the foot chase. Officers found more cash, disguises, and an air pistol in the abandoned vehicle. Langlois got away, but was apprehended a few weeks later. Both confessed to their involvement in the robberies.
Langlois, 55, also of Tucson, Ariz., also previously pleaded guilty to two counts of armed bank robbery, aiding and abetting, and was sentenced by U.S. District Judge Rosemary Marquez on Feb. 9, 2018, to 80 months’ imprisonment. Langlois had a more extensive criminal history.
The investigation in this case was conducted by the Federal Bureau of Investigation, Pima County Sheriff Department, and Tucson Police Department. The prosecution was handled by Raquel Arellano, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-16-2237-TUC-RM (BGM)
RELEASE NUMBER: 2018-067_Wells
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Phoenix Woman Sentenced to 51 Months in Prison for $852,000 Embezzlement Scheme, Filing a False Tax Return, and Failure to Appear in CourtRead the Press Release
PHOENIX - On May 11, 2018, Tara Kathleen Valencia, 38, of Phoenix, Ariz., was sentenced by U.S. District Judge Diane J. Humetewa to 51 months’ imprisonment, followed by three years of supervised release. Valencia had previously pleaded guilty to filing a false tax return with the Internal Revenue Service, wire fraud, and failure to appear in court (bail jumping). Valencia was also ordered to pay $852,253 in restitution.
Between 2006 and 2012, Valencia had been employed in Phoenix by Arizona Exterminating Company (AEC) as the HR Administrator. During this time, she embezzled $852,253 from the company by using business credit cards and checks for her own personal use. Some of her unlawful personal expenses included a home, medical and insurance expenses, food, maid services, salon and fitness expenses, home renovations, and a swimming pool and spa for her personal residence. Valencia concealed her scheme to defraud by doctoring credit card and checking account records to make it appear as if these expenses were legitimate expenses incurred by the company.
In addition, Valencia filed false federal income tax returns for the 2008 through 2011 tax years wherein she failed to report her proceeds from the scheme to defraud.
Following her arrest on the indictment on July 20, 2015, Valencia was released on her own personal recognizance to reappear in Court, as required. In the Fall of 2015, Valencia fled to Mexico where she remained a fugitive from justice. The U.S. Marshals Service eventually located Valencia in Mexico where she was arrested by the Mexican authorities on Nov. 5, 2017, and was returned to the United States.
Valencia was ordered to pay $852,253 in restitution to AEC and $252,806 to the Internal Revenue Service in back income taxes plus penalties and interest.
This investigation was conducted by the Internal Revenue Service-Criminal Investigation in Tucson, the United States Postal Inspection Service in Tucson, and the U.S. Marshals Service in Phoenix. The prosecution was handled by Wallace H. Kleindienst and Carolyn Nedder, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBERS: CR 15-0314-PHX-DJH/CR 16-1097-PHX-DJH
RELEASE NUMBER: 2018-065_Valencia
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Sacaton Man Sentenced to over 22 Years for MurderRead the Press Release
PHOENIX – On May 14, 2017, Robert Wayne Long, 24, of Sacaton, Ariz., a member of the Gila River Indian Community, was sentenced by U.S. District Douglas L. Rayes to over 22 years in prison. Long had previously pleaded guilty to second degree murder. At the time of the offense, Long was on Federal Supervised Release for assault resulting in serious bodily injury.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-487-PHX-DLR
RELEASE NUMBER: 2018-064_Long
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Former U.S. Border Patrol Agent Sentenced to Seven and A Half Years in Prison for Bribery and Drug TraffickingRead the Press Release
TUCSON, Ariz. - Today, Alberto M. Michel, 41, of Casa Grande, Ariz., was sentenced by Senior U.S. District Judge David C. Bury. Michel had previously pleaded guilty to one count of conspiracy to traffic marijuana and one count of accepting a bribe as a public official. He received a sentence of 90 months in prison followed by 3 years of supervised release and a $24,000 forfeiture judgment.
In his plea agreement, Michel admitted that while employed as a United States Border Patrol Agent, with the Tucson Sector Border Patrol Intelligence Unit, he participated in a drug conspiracy by providing surveillance during drug smuggling efforts. Additionally, Michel provided assistance regarding law enforcement interdiction efforts. He also agreed to receive cash payments equal to $40 per pound of marijuana smuggled and received a total of $24,000 during the course of the conspiracy.
On Aug. 3, 2017 and Aug. 7, 2017, Michel received cash payments totaling $12,000 for agreeing, as a sworn public official, to violate his sworn duty to investigate and interdict narcotics smugglers.
Michel had been employed with United States Border Patrol since 2009. By 2016, he had been promoted to an enhanced role with the Tucson Sector Border Patrol Intelligence Unit, where he had a higher security clearance and had access to information regarding high-level law enforcement and national security operations and techniques.
Co-defendants Eunice M. Lopez and Marco Antonio L. Bustamante are scheduled for Change of Plea Hearings on May 15, 2018.
The investigation was conducted by members of the Southern Arizona Corruption Task Force that consists of the Federal Bureau of Investigation, Department of Homeland Security - Office of the Inspector General, Customs and Border Protection – Office of Professional Responsibility, Immigration and Customs Enforcement – Office of Professional Responsibility, and Tucson Police Department. Prosecution was handled by Sarah B. Houston and Gordon E. Davenport III, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: 4:17-CR-01733-DCB-JR
RELEASE NUMBER: 2018-063_ Michel_etal
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Coolidge Man Sentenced to 5 Years for Possession of a Firearm in Furtherance of Drug TraffickingRead the Press Release
PHOENIX – On May 14, 2017, Bernard Joseph Lee Marrietta, 25, of Coolidge, Ariz., a member of the Gila River Indian Community, was sentenced by U.S. District Judge John J. Tuchi to 60 months in prison. Marrietta had previously pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime. At the time of the offense, Marrietta possessed a DPMS, model A-15, 5.56/.223 rifle, and methamphetamine.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-1675-PHX-JJT
RELEASE NUMBER: 2018-062_Marrietta
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
RSK Gang Members Sentenced to Lengthy Prison Terms for Conspiracy to Commit Acts of Racketeering, Including Murder, Kidnapping, Drug Trafficking, and Other OffensesRead the Press Release
PHOENIX – Yesterday afternoon, Devan Edward Leonard, 28, Kyle Filbert Gray, 26, and Lucille Jean Leonard, 48, members of the Navajo Nation, of Lukachukai, Ariz., were sentenced by United States District Judge David G. Campbell following their respective guilty pleas to RICO conspiracy for their participation in the violent Red Skin Kingz (“RSK”) criminal gang. Devan Leonard, the leader of RSK, was sentenced to 50 years’ imprisonment; Kyle Gray was sentenced to 30 years’ imprisonment; and Lucille Leonard was sentenced to 10 years’ imprisonment.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Elizabeth A. Strange, First Assistant United States Attorney for the District of Arizona, FBI Special Agent in Charge Michael DeLeon, District of Arizona, and Colonel Frank Milstead, Arizona Department of Public Safety announced the sentencings. FBI Special Agent in Charge Michael DeLeon also expressed his appreciation to the Navajo Nation Department of Public Safety and the Arizona Department for Public Safety for their partnership and significant assistance during the investigation.
“The investigation and prosecution of these RSK gang members required tremendous work by FBI, Arizona DPS, Navajo Nation DPS, and the prosecution team,” stated First Assistant U.S. Attorney Elizabeth A. Strange. “I applaud their dedication and perseverance in obtaining the sentences imposed today. This case is a testament to our office’s commitment to use every available resource to combat gang violence in Arizona and to bring justice to the victims of violent crime.”
As detailed in the Second Superseding Indictment, Devan Leonard, Kyle Gray, and Lucille Leonard are members of the RSK. RSK operated on the eastern side of the Navajo Nation in the District of Arizona. RSK was responsible for at least three murders, attempted murder, aggravated assaults, carjacking, kidnappings, sexual assaults, and drug trafficking, amongst other crimes.
On or between Dec. 12 and Dec. 13, 2014, Devan Leonard and another RSK member shot and killed two men and then transported their bodies to a remote “wash” in Lukachukai, Ariz., on the Navajo Indian Reservation, where the bodies were dismembered, burned, and buried to conceal the killings.
On Dec. 16, 2014, Kyle Gray and Devan Leonard shot and killed another victim immediately following a drug trafficking transaction. Later, Devan Leonard and Kyle Gray transported the victim’s body to a remote sheep camp on the reservation, where they dismembered and burned the victim’s body as they forced the victim’s girlfriend to watch.
Lucille Leonard held a leadership role in RSK, mostly participating in and overseeing RSK’s drug trafficking activities, including the collection of debts owed to RSK.
The Second Superseding Indictment in this matter was the result of an investigation conducted by the Federal Bureau of Investigation, the Arizona Department of Public Safety, the Navajo Nation Department of Public Safety, the U.S. Attorney’s Office for the District of Arizona, and the Criminal Division’s Organized Crime and Gang Section. Assistant U.S. Attorneys Dimitra Sampson and Tracy Van Buskirk of the District of Arizona, and Trial Attorneys Kelly Pearson and Hans Miller of the Criminal Division’s Organized Crime and Gang Section, prosecuted the case.
CASE NUMBER: CR-15-8076-PCT-DGC (JZB)
RELEASE NUMBER: 2018-061_ RSK
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
RSK Gang Members Sentenced to Lengthy Prison Terms for Conspiracy to Commit Acts of Racketeering, Including Murder, Kidnapping, Drug Trafficking and Other OffensesRead the Press Release
On May 9, three members of Red Skin Kingz, also known as RSK, were sentenced to prison following their respective guilty pleas to RICO conspiracy for their participation in the violent RSK criminal street gang.
Devan Edward Leonard, 28, of Lukachukai, Arizona, the leader of RSK, was sentenced to 50 years in prison; Kyle Filbert Gray, 26, of Lukachukai, Arizona, was sentenced to 30 years in prison; and Lucille Jean Leonard, 48, of Lukachukai, Arizona, was sentenced to 10 years in prison. All defendants were sentenced by U.S. District Judge David G. Campbell in the District of Arizona
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, First Assistant U.S. Attorney Elizabeth A. Strange for the District of Arizona, Special Agent in Charge Michael DeLeon of FBI’s Phoenix Field Office and Colonel Frank Milstead of the Arizona Department of Public Safety announced the sentencings. The Navajo Nation Department of Public Safety also provided significant assistance during the investigation.
As detailed in their three plea agreements, Devan Leonard, Kyle Gray, and Lucille Leonard are members of the RSK. RSK operated on the eastern side of the Navajo Nation in the District of Arizona. RSK was responsible for at least three murders, attempted murder, aggravated assaults, kidnappings, and drug trafficking, amongst other crimes.
On or between Dec. 12 and Dec. 13, 2014, Devan Leonard and another RSK member shot and killed two men, in Lukachukai, Arizona on the Navajo Indian Reservation, where the bodies were dismembered, burned and buried, to conceal the killings.
On Dec. 16, 2014, Kyle Gray and Devan Leonard shot and killed another victim immediately following a drug trafficking transaction. Later, Devan Leonard and Kyle Gray transported the victim’s body to a remote sheep camp on the reservation, where they dismembered, and burned the victim’s body.
Lucille Leonard held a leadership role in RSK, mostly participating in and overseeing RSK’s drug trafficking organization, including the collection of debts owed to RSK.
The second superseding indictment in this matter was the result of an investigation conducted by the FBI, the Arizona Department of Public Safety, the Navajo Nation Department of Public Safety, the U.S. Attorney’s Office for the District of Arizona, and the Criminal Division’s Organized Crime and Gang Section. Assistant U.S. Attorneys Dimitra Sampson and Tracy Van Buskirk of the District of Arizona, and Trial Attorneys Kelly Pearson and Hans Miller of the Criminal Division’s Organized Crime and Gang Section prosecuted the case.
Former Superintendent of Hopi Mission School Sentenced to 2 Years in Prison for Embezzlement of School FundsRead the Press Release
PHOENIX – This week, Thane Epefanio, 45, of Avondale, Ariz., was sentenced by U.S. District Judge Steven P. Logan to two years in prison for embezzling money from the Hopi Mission School located on the Hopi Reservation in Kykotsmovi, Ariz. Epefanio had previously pleaded guilty to money laundering and wire fraud.
Epefanio served as the Superintendent and Administrator of the Hopi Mission School, a private, charitable school funded primarily with donations and through participation in government programs. Beginning in 2012, Epefanio used his position and influence to embezzle school funds and also directed staff to provide him money to create the appearance that the funds were being used to operate the school. Epefanio obtained almost $1 million to support his gambling habit and to pay for personal expenses.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Social Security Administration, Inspector General Office of Investigation. The prosecution was handled by Monica B. Edelstein and Natalie Huddleston, Assistant U.S. Attorneys.
CASE NUMBER: CR-16-08241-PCT-SPL
RELEASE NUMBER: 2018-060_Epefanio
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Arizona Man Sentenced to Prison for Injuring Children While Driving DrunkRead the Press Release
PHOENIX– Yesterday, Daniel Sherman Lejero, 30, was sentenced by U.S. District Judge John J. Tuchi to 33 months in prison followed by three years of supervised release. Lejero had previously pleaded guilty to two accounts of assault resulting in serious bodily injury.
On March 26, 2015, an intoxicated Lejero crashed a speeding vehicle that contained two minor children. The children, who are both members of the Gila River Indian Community, were ejected from the vehicle and suffered serious injuries. At the time of the car accident, Lejero had two prior DUI convictions and was driving on a suspended license. Lejero is an enrolled member of the Fort McDowell Yavapai Nation and the accident took place within the Gila River Indian Community.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Christine Ducat Keller, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-00711-PHX-JJT
RELEASE NUMBER: 2018-059_Lejero
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Phoenix Spice and Bath Salts Manufacturer SentencedRead the Press Release
PHOENIX – This week, Juan Mark Sayegh, 44, of Phoenix, Ariz., was sentenced by U.S. District Judge David G. Campbell to 48 months’ imprisonment and ordered to forfeit approximately $1.7 million in cash, real property, and other assets. Sayegh had previously pleaded guilty to conspiracy to distribute a controlled substance analogue and conspiracy to commit money laundering.
A controlled substance analogue is a substance that is intended for human consumption and is substantially similar in chemical structure and pharmacological effect, or intended effect, to any drug scheduled under the federal Controlled Substances Act, like cocaine, methamphetamine, JWH-018, Methcathinone, or Methylone.
Sayegh owned and operated Greenlight Distribution in Phoenix, Ariz., from July 2010 through July 2012. Greenlight manufactured and distributed designer synthetic drugs. Specifically, Greenlight manufactured and distributed synthetic cannabinoid products (commonly referred to as “spice”) under the brand names Mary Jane’s Potpourri and Mary Jane’s Private Reserve. Greenlight also manufactured and distributed synthetic cathinone products (commonly referred to as “bath salts”) under the brand names Go Fast Carpet Deodorizer and Quick Clean Carpet Deodorizer. These synthetic drugs were manufactured with chemicals imported from China and were designed to be smoked or ingested in order to get users high. These designer drugs were intentionally and falsely mislabeled as innocuous household products that were “not for human consumption” in order to circumvent federal consumer and drug laws. The products were sold to stores and individuals across the United States for great profit.
The operations at Greenlight ceased on July 25, 2012, when the Drug Enforcement Administration executed a search warrant at several locations associated with Greenlight and its employees as part of Operation Logjam. Operation Logjam was a U.S. Department of Justice -coordinated investigation of synthetic drug manufacturers and distributors across the United States.
The investigation in this case was conducted by the Drug Enforcement Administration’s Phoenix, Milwaukee, and Kansas City field offices, the Internal Revenue Service Criminal Investigation Phoenix field office, and the Johnson County Sheriff’s Office in Kansas under the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF) Program. The prosecution was handled by Lacy Cooper, D.J. Pashayan, and Mark Wenker, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-16-00506-PHX-DGC (DKD)
RELEASE NUMBER: 2018-057_ Sayegh
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Chandler Man Sentenced to Three Years in Prison for Tax EvasionRead the Press Release
PHOENIX – This week, U.S. District Judge David G. Campbell sentenced William “Larry” Dorsey, 56, of Chandler, Ariz., to 36 months in prison and three years of supervised release. The Court also ordered Dorsey to pay $7.3 million in restitution to the Internal Revenue Service. Dorsey had previously pleaded guilty to tax evasion.
Dorsey owned and operated several professional employment organizations, including Pinnacle Employee Group, Inc. (PEG) and Pinnacle Planning Group, Inc. (PPG), which contracted with small business owners to provide payroll services. Dorsey, through PEG and PPG, collected federal employment taxes from his clients but, instead of paying the taxes over to the IRS as he contracted to do, kept a significant portion of the taxes for his own personal use and to fund other business ventures. To conceal his theft, Dorsey filed false employment tax returns with the IRS, which underreported the taxes due from PEG and PPG. From 2011 through 2014, Dorsey underreported and underpaid approximately $7.3 million in federal employment taxes due and owing by PEG and PPG.
The investigation in this case was conducted by Internal Revenue Service Criminal Investigation. The prosecution was handled by Bridget Minder and Peter Sexton, Assistant United States Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-18-00128-DGC-PHX
RELEASE NUMBER: 2018-058_Dorsey
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Tucson Man Sentenced to 8 Years' Prison for Possession of Firearms by Convicted FelonRead the Press Release
TUCSON, Ariz. – On May 2, 2018, Marc Ryan Shipley, 34, of Tucson, Ariz., was sentenced by U.S. Senior District Judge David C. Bury to 96 months’ imprisonment. Shipley had been previously found guilty following trial of possession of firearms and ammunition by a convicted felon.
Shipley had been convicted in 2007 of the felony offenses of conspiracy to commit bribery of a public official and interference with commerce by extortion, and as a result was prohibited by law from possessing firearms and ammunition. However, in March of 2016, Shipley entered Benson Justice Court with a handgun and was removed by courthouse security. Later that same month, Shipley was in an automobile accident and was armed with a pistol in a holster on his hip and another firearm in his vehicle. In April of 2016, ATF agents questioned Shipley about his possession of firearms. At that time Shipley had another loaded pistol in his vehicle. Agents obtained a search warrant for Shipley’s house, where they found eight more firearms, 1,754 rounds of ammunition, and several high capacity firearm magazines.
The investigation in this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the Arizona Department of Public Safety and the Tucson Police Department. The prosecution was handled by Angela W. Woolridge, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-16-01061-TUC-DCB
RELEASE NUMBER: 2018-056_Shipley
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
“Barrel Chested Bandit” Sentenced to 10 Years’ Prison for Multi-State Bank Robbery SpreeRead the Press Release
TUCSON, Ariz. – On Tuesday, May 1, 2018, Anthony James Lane, 51, of Tucson, Ariz., originally from Missouri, was sentenced by U.S. District Judge Cindy K. Jorgenson to 120 months’ imprisonment. Lane had previously pleaded guilty to eleven counts of bank robbery and one count of attempted bank robbery.
During a six-month crime spree involving six states, Lane robbed and attempted to rob twelve banks with the use of a simulated handgun. He was dubbed the “Barrel Chested Bandit” due to descriptions provided by witnesses. He stole over $74,000 from the banks. The guilty plea resolves the investigations conducted by six law enforcement agencies.
The investigation in this case was conducted by the Federal Bureau of Investigation and various state law enforcement agencies in six different states. The prosecution was handled by Carmen F. Corbin and Raquel Arellano, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-17-00483-TUC-CKJ
RELEASE NUMBER: 2018-054_Lane
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Pinon Man Sentenced to 37 Months for Striking Man with TruckRead the Press Release
PHOENIX– On April 30, 2018, Adrian Dann, 41, of Pinon, Ariz., was sentenced by U.S. District Judge David G. Campbell to 37 months’ imprisonment. Dann had previously pleaded guilty to assault resulting in serious bodily injury.
In June 2017, Dann drove a truck in a reckless manner and struck the victim, a member of the Navajo Nation, resulting in multiple fractures to his ankle, foot, and leg. Dann is also a member of the Navajo Nation.
Navajo Nation Criminal Investigations and the Federal Bureau of Investigation conducted the investigation. The prosecution was handled by Kiyoko Patterson, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-8174-PCT-DGC
RELEASE NUMBER: 2018-055_Dann
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Pinon Man Sentenced to Six Years’ Prison for Assaulting Navajo Nation Police OfficerRead the Press Release
PHOENIX – Yesterday, Lambert Ten Hosteen, 30, of Pinon, Ariz., was sentenced by U.S. District Judge G. Murray Snow to 6 years’ imprisonment. Hosteen had previously pleaded guilty to assault on a federal officer with a dangerous weapon.
On May 17, 2017, officers of the Navajo Nation Police Department were contacted with reports that Hosteen was firing a shotgun and fighting with another person in the area of Pinon, Ariz. When officers arrived, Hosteen pointed the loaded weapon at them and threatened several times to shoot them. In response, one officer fired at Hosteen, striking him in the hand. After Hosteen was taken into custody, officers discovered that the shotgun was a homemade destructive device, which is illegal to possess under the National Firearms Act. Hosteen and the officers are all members of the Navajo Nation, and the offense occurred on the Navajo Nation Indian Reservation.
The investigation was conducted by agents of both the Federal Bureau of Investigation (FBI) and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The prosecution was handled by Assistant U.S. Attorney William G. Voit, District of Arizona, Phoenix.
CASE NUMBER: CR 17-08195-GMS
RELEASE NUMBER: 2018-053_ Hosteen
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Fresno Man Sentenced to 63 Months for Arizona Robbery SpreeRead the Press Release
TUCSON, Ariz. – This week, Dwight Phillip Bivens, 29, of Fresno, Calif., was sentenced by U.S. Chief District Judge Raner C. Collins to 63 months’ imprisonment, to be followed by three years of supervised release. Bivens had previously pleaded guilty to two counts of Hobbs Act Robbery.
On May 28, 2016, Bivens and three other persons entered a Tiffany & Co. jewelry store in Tucson, Ariz., stole a diamond solitaire ring, and assaulted a security guard before getting away. Later that day, Bivens and the three men entered a Nordstrom department store in Scottsdale, Ariz., and stole several designer handbags after verbally threatening a store manager. On the same day, Bivens and the three men entered a Helzberg Diamond Outlet store in Glendale, Ariz., and stole several high-end watches after pepper-spraying the store employees. Bivens later pawned the watches in Fresno, Calif. The victims’ financial losses totaled more than $130,000.
A co-defendant, Mitchell Ray Finley, is pending sentencing after pleading guilty to two counts of Hobbs Act Robbery. His sentencing is set for Aug. 6, 2018.
The investigation in this case was conducted by Federal Bureau of Investigation, the Pima County Sheriff’s Office, the Scottsdale Police Department, the Glendale Police Department, and the Fresno Police Department. The prosecution was handled by Lauren G. LaBuff, Fred A. Cocio, and Rui Wang, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR 17-01145-TUC-RCC (DTF)
RELEASE NUMBER: 2018-052_ Bivens_etal
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Tuba City Man Sentenced to 84 Months for Gas Station RobberyRead the Press Release
PHOENIX – This week, Omar Dixon, 37, of Tuba City, Ariz., was sentenced by U.S. District Judge Stephen M. McNamee to 84 months’ imprisonment. Dixon had previously pleaded guilty to robbery.
On Sept. 20, 2015, Dixon and two codefendants entered the Tuba City Shell gas station wearing disguises. Dixon forcibly restrained the gas station attendant with a knife, while his codefendants seized the cash register, cigarette packs, and a security monitor. Dixon and his two codefendants then fled the scene in a waiting vehicle. Dixon was apprehended shortly after the robbery, in possession of two pocket knives, $130, and two unopened cigarette packs. All defendants are members of the Navajo Nation.
The investigation in this case was conducted the Tuba City Police Department, the Tuba City Criminal Investigators’ Office, and the Federal Bureau of Investigation. The prosecution was handled by Jonathan R. Hornok, Cassie Bray Woo, and Roger Dokken, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-16-8247-PHX-SMM
RELEASE NUMBER: 2018-050_Dixon
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Second Mesa Man Sentenced to 105 Months for Meth Trafficking on Hopi ReservationRead the Press Release
PHOENIX – Last week, Desmond Anthony Lomayaktewa, 27, of Second Mesa, Ariz., was sentenced by U.S. District Judge John J. Tuchi to 105 months’ imprisonment, to be followed by five years of supervised release. Lomayaktewa, an enrolled member of the Hopi Tribe, had previously pleaded guilty to four counts of possession with intent to distribute methamphetamine and one count of carrying a firearm during and in relation to a drug trafficking crime.
The charges to which Lomayaktewa pleaded guilty stemmed from four incidents in which Lomayaktewa was found possessing methamphetamine on the Hopi Indian Reservation, all between August 2016 and March 2017. Three times, Lomayaktewa possessed firearms as well. Lomayaktewa admitted that he sold methamphetamine on the Hopi Indian Reservation throughout this time period and that he carried firearms for protection during and in relation to his methamphetamine trafficking activity. In total, law enforcement seized over 300 grams of methamphetamine and four firearms from Lomayaktewa.
Lomayaktewa is the third defendant in recent months to receive a significant sentence for selling methamphetamine on the Hopi Indian Reservation. On March 5, 2018, Johnny Baird, 31, was sentenced to 20 months in prison. On April 2, 2018, Lawrence Maho, 54, a resident of Holbrook, Ariz. and an enrolled member of the Hopi Tribe, was sentenced to 30 months in prison.
The investigations in all three cases were conducted by the Federal Bureau of Investigation, the Bureau of Indian Affairs – Office of Justice Services (Hopi Agency), the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the U.S. Drug Enforcement Administration. The prosecutions were handled by Assistant U.S. Attorney Alexander Samuels, District of Arizona, Phoenix.
CASE NUMBER: CR-17-8115-PCT-JJT
RELEASE NUMBER: 2018-051_Lomayaktewa
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Shiprock Man Sentenced to More than Three Years’ Prison for Assault on Officer during High-Speed ChaseRead the Press Release
PHOENIX – Yesterday, Kendale Johnson, 28, of Shiprock, N.M., was sentenced by U.S. District Judge Steven P. Logan to 37 months’ imprisonment. Johnson had previously pleaded guilty to aiding and abetting an assault on a federal officer with a dangerous weapon.
On July 4, 2017, an Arizona DPS Officer, who was cross-commissioned with the Navajo Division of Public Safety, attempted to pull Johnson over for speeding on a stretch of State Route 98 near Kaibeto, Ariz., on the Navajo Nation Reservation. Johnson refused to pull over and instead instigated a high-speed chase that continued for at least 10 miles at speeds of 80-90 miles per hour. During the chase, Johnson and a passenger in his vehicle threw several rocks back at the pursuing patrol vehicle. Johnson initially escaped, but he was swiftly located and taken into custody. Johnson is a member of the Navajo Nation.
The investigation was conducted by the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorney William G. Voit, District of Arizona, Phoenix.
CASE NUMBER: CR-17-08175-SPL
RELEASE NUMBER: 2018-049_Johnson
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Glendale Woman Sentenced to Prison in Bank Fraud/Stolen Identity Fraud SchemeRead the Press Release
PHOENIX– Yesterday, Veronica Castro, 44, of Glendale, Ariz. was sentenced by U.S. District Judge G. Murray Snow to 20 months in prison and was ordered to pay $1,145,392 in restitution. Castro had previously pleaded guilty to conspiracy to commit bank fraud along with co-defendant Yomtov Scott Menaged. Menaged was previously sentenced to 17 years’ imprisonment for his role in the bank fraud and other associated schemes.
Castro was a long time employee of Menaged who owned and operated retail furniture stores in the Phoenix area. Castro helped Menaged operate an elaborate identity theft scheme involving purported customers of the various retail furniture stores. Menaged obtained personal identification information of recently deceased individuals and used their information to submit false credit card applications to banks. Castro created false and fraudulent credit applications and receipts listing the same names and personal identification information to submit to the banks in an attempt to conceal the fraud after payments were issued on the fraudulent accounts. In fact, no real furniture purchases ever took place. The scheme resulted in a more than $1 million loss to the bank.
The investigation in this case was conducted by Department of Homeland Security, Homeland Security Investigations and Internal Revenue Service-Criminal Investigation. The prosecution was handled by Monica B. Edelstein, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-000680-PHX-GMS
RELEASE NUMBER: 2018-047_Castro
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Glendale Man Sentenced to 120 Months for Distribution of Child PornographyRead the Press Release
PHOENIX – Last week, Ronald Amaguin Dallas, 28, of Glendale, Ariz., was sentenced by U.S. District Judge Steven P. Logan to 120 months’ imprisonment. Dallas had previously pleaded guilty to distributing child pornography.
Over the course of at least a year, Dallas downloaded and distributed child pornography through bit torrent file sharing. After undercover agents downloaded child pornography from Dallas’s IP address, they obtained a warrant to search his home. During the search, agents seized several devices containing video files and hundreds of images depicting child pornography.
This investigation was conducted by the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorneys Brandon M. Brown and Gayle Helart.
CASE NUMBER: CR-17-01248 (SPL)
RELEASE NUMBER: 2018-045_Dallas
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Florida Man Sentenced to 15 Years Prison for Sex TraffickingRead the Press Release
TUCSON, Ariz. – Today, Travon Jarvel Jackson, 37, of Tampa, Fla., was sentenced by U.S. District Judge Rosemary Marquez to 15 years’ imprisonment. Jackson had been previously found guilty following trial of sex trafficking by force, fraud, and coercion; and interstate transportation for prostitution.
Between May and August of 2016, Jackson manipulated and coerced the victim, a woman from Tampa, Fla., into performing acts of prostitution in both Florida and Arizona. Jackson posted advertisements for the victim on www.Backpage.com and kept all of the money derived from the victim’s acts of prostitution. Jackson controlled the victim by withholding food, money, and property from her in order to coerce her into performing commercial sex acts, and physically assaulted her to gain her compliance. Jackson forced the victim to travel to Tucson against her will, where he continued to use her to engage in prostitution for which he kept the profits. The victim escaped Jackson by contacting a human trafficking victim rescue service, which she had seen advertised on a billboard, from a motel room in Tucson where Jackson had been keeping her to perform acts of prostitution.
The investigation in this case was conducted by the Department of Homeland Security - Homeland Security Investigations, and the Tucson Police Department, working collaboratively under the Southern Arizona Anti-Trafficking Unified Response Network (SAATURN). The prosecution was handled by Angela W. Woolridge, Adam D. Rossi, and Karen E. Rolley, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-16-01704-TUC-RM
RELEASE NUMBER: 2018-046_Jackson
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
DOJ-Led Opioid Task Force Surge Leads to over 100 Arrests and Large Heroin and Fentanyl SeizuresRead the Press Release
PHOENIX– In the first quarter of 2018, federal and state prosecutors and their law enforcement partners combined resources to investigate and prosecute opioid cases throughout Arizona. The goal of this surge was to disrupt opioid trafficking throughout the state while promoting case coordination and intelligence sharing between federal, state, and local law enforcement. During this surge period, the Task Force prosecuted over 90 heroin and opioid traffickers and diverted over 300 people suffering from substance abuse for drug treatment. Law enforcement seized nearly 300 pounds of heroin, 80 pounds of fentanyl, and tens of thousands of fentanyl pills that were manufactured to appear to be OxyContin. Of particular note, this surge led to the prosecution of a Tucson dealer whose heroin caused the death of a victim, the prosecution of a Phoenix medical professional who was purchasing OxyContin and morphine from a patient at a medical facility, and an interdiction of a large load of pure fentanyl powder in Mohave County. The U.S. Drug Enforcement Administration also continued its efforts and initiated over 25 new opioid trafficking investigations.
“The opioid epidemic is a significant public safety concern that continues to kill a record number of Arizonans,” said First Assistant United States Attorney Elizabeth A. Strange. “In the last three months, our office has devoted additional resources to assist federal and state law enforcement to enforce our drug laws. This surge of resources and coordination with our federal and state law enforcement partners will continue until significant strides are made in disrupting the flow of heroin and fentanyl into our communities and schools.”
“The relationship between the Arizona Attorney General’s Office and our Federal and local law enforcement partners is as strong as it has ever been,” said Arizona Attorney General Mark Brnovich. “By collaborating together, we are working towards a common goal of dismantling large scale opioid trafficking operations from Arizona communities.”
“This successful operation has highlighted two continuing truths: 1- law enforcement in Arizona at the federal, state, and local level are committed to combining our resources to offer treatment alternatives to those in need of substance abuse help while also interdicting the sales and distribution of deadly heroin, fentanyl, and counterfeit opioids into our community and 2 - heroin and fentanyl traffickers continue to seek to exploit Arizona as a major thoroughfare for drug trafficking to the detriment of Arizonans and the Arizona legislature should give us the tools we are asking for to deal with this clearly identified threat,“ said Maricopa County Attorney Bill Montgomery.
“Opioid overdoses kill 115 Americans every day,” said Doug Coleman, Special Agent in Charge of DEA’s Phoenix Division. “The DEA in Arizona will target those who prey on the addiction of others by illegally distributing opioids, and we will continue to work with our law enforcement partners to ensure these criminals face justice.”
The removal of unused prescribed opioids from the public is also a vital component of the Department of Justice’s overall strategy to reduce opioid abuse. This strategic component is crucial due to the significant rise in the manufacture and distribution of fentanyl pills that mimic the look of OxyContin pills. If you have unused prescription opioids or other prescription drugs in your home, and want to dispose of them safely, please take advantage of the DEA’s National Prescription Drug Takeback Day on Saturday, April 28, 2018, from 10 a.m. to 2 p.m. Collection sites will be set up throughout the state on that day to provide the public with a safe, convenient, and responsible way of disposing of prescription drugs. Please go to www.deadiversion.usdoj.gov/drug_disposal/takeback/ to find the nearest collection site.
The members of this DOJ-led Opioid Task Force include the U.S. Attorney’s Office for the District of Arizona, the Arizona Attorney General’s Office, the Maricopa County Attorney’s Office, the Pima County Attorney’s Office, the Phoenix Police Department, the U.S. Drug Enforcement Administration, the Arizona Department of Public Safety, the Federal Bureau of Investigation, the Maricopa County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, U.S. Customs and Border Protection, the U.S. Department of Homeland Security, the U.S. Department of Health and Human Services, the U.S. Internal Revenue Service, the U.S. Postal Service, and the U.S. Food and Drug Administration.
RELEASE NUMBER: 2018-048_ Opioid Task Force
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Tucson Man Sentenced to Prison for Threatening to Kill CongresswomanRead the Press Release
TUCSON, Ariz. – On April 18, 2018, Steve Martan, 58, of Tucson, Ariz., was sentenced by U.S. District Judge Cindy K. Jorgenson to 15 months’ imprisonment. Martan had previously pleaded guilty to three counts of influencing, impeding, or retaliating against a federal official by threatening.
On May 2, 4, and 10, 2017, Martan left a total of six threatening messages for Congresswoman Martha McSally on her congressional office voicemail. Martan was identified through caller identification and subscriber information and was in possession of the phone used to leave these messages when he was arrested on May 11, 2017.
The investigation in this case was conducted by the Federal Bureau of Investigation, with assistance from the United States Capitol Police. The prosecution was handled by Angela W. Woolridge, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-17-0857-TUC-CKJ
RELEASE NUMBER: 2018-043_Martan
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Tsaile Man Sentenced to 20 Years’ Imprisonment for Sexual Abuse of a Minor and Child PornographyRead the Press Release
PHOENIX – Earlier this month, Douglas Dane Jones, 41, of Tsaile, Ariz., was sentenced by U.S. District Judge Diane J. Humetewa to 20 years’ imprisonment, to be followed by lifetime supervised release with mandatory sex offender registration and conditions. Jones had previously pleaded guilty to sexual abuse of a minor and production of child pornography.
Jones sexually abused the victim over the course of several months in 2017. Jones also produced child pornography. The victim’s family brought the matter to the attention of law enforcement authorities. Agents of the Federal Bureau of Investigation promptly began an investigation, which led to Jones’ arrest and prosecution. Jones and the victim are both members of the Navajo Nation, and the abuse occurred both within the Navajo Nation Reservation and outside of it, including in the city of Chandler, Ariz.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Chandler Police Department, with the assistance of other federal, state, and tribal agencies. The prosecution was handled by Assistant U.S. Attorney William G. Voit, District of Arizona, Phoenix.
CASE NUMBER: CR-17-08031-DJH
RELEASE NUMBER: 2018-042_ Jones
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
St. David Man Sentenced to 108 Months for Bank RobberiesRead the Press Release
TUCSON, Ariz. – Yesterday, James Dewayne Munkus, 55, of St. David, Ariz., was sentenced by U.S. Chief District Judge Raner C. Collins to 108 months’ imprisonment. Munkus had previously pleaded guilty to two counts of bank robbery.
Using a fake bomb, Munkus robbed an eastside branch of Pima Federal Credit Union on January 9, 2017, taking over $3,000. Five days later, Munkus used a handgun to rob an eastside branch of US Bank of over $64,000. Law enforcement officers apprehended Munkus in Gadsden, Ala., on March 21, 2017.
The investigation in this case was conducted by the Federal Bureau of Investigation and Tucson Police Department. The prosecution was handled by Matthew C. Cassell, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-17-0639-TUC-RCC-DTF
RELEASE NUMBER: 2018-041_ Munkus
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Phoenix Men Sentenced to Prison for Defrauding the Small Business AdministrationRead the Press Release
PHOENIX – Yesterday, U.S. District Judge David G. Campbell sentenced Harold Halman, II, 58, and Alexander Schaap, 62, to 36 and 30 months in prison, respectively. Both must serve 3 years of supervised release following their prison sentences. The Court also ordered them to pay $4.5 million in restitution. Craighton Boates, 44, New River, Ariz., was also sentenced to 5 years’ probation.
Evidence showed that Halman, Schaap, and Boates were principals in a now defunct company known as Global Medical Equipment of Arizona (“GMEA”). They defrauded the Small Business Administration, Metro Phoenix Bank, and Republic Bank of Arizona by submitting loan applications containing false information that included the percentage of GMEA ownership, the use of the loans for pre-existing debts, forged emails and letters misrepresenting that down payments had been made by the principals, and a concealed kickback. The defendants defaulted on nearly $4.5 million in loans.
"These loans should have been granted to qualified small business owners. Instead the defendants effectively denied an opportunity to legitimate small businesses deserving access to capital,” stated Elizabeth A. Strange, First Assistant U.S. Attorney for the District of Arizona. “The United States Attorney’s Office will continue to aggressively investigate and seek criminal prosecution or civil remedies when fraud is perpetrated by corrupt borrowers who attempt to obtain financial assistance through the SBA’s guaranteed loan programs. We would like to thank the SBA-OIG, IRS-CID, and the FBI for their thoroughness and dedicated professionalism throughout this investigation."
“SBA’s 7(a) program is intended to provide capital to grow the nation’s small businesses not line one’s pockets,” said Acting Inspector General Hannibal “Mike” Ware. “Schemes to unjustly enrich oneself will be rooted out, and those responsible will be brought to justice. I want to thank the U.S. Attorney’s Office for their dedication and leadership throughout this investigation.”
“A sophisticated scheme involving millions in illegally obtained loans does not happen without forethought and criminal intent. The defendants made false statements and omissions to the banks who relied on them to be truthful,” stated IRS-Criminal Investigation Special Agent in Charge Ismael Nevarez, Jr. “We hope this prosecution discourages others from taking the path of fraud in their business ventures."
"These three individuals knowingly executed a scheme to defraud banks out of more than $6 million then conspired to launder the money," said Michael DeLeon, Special Agent in Charge of the FBI Phoenix Field Office. "The guilty pleas of these individuals should send a message. The FBI will continue to work alongside our law enforcement partners to investigate these types of crimes and protect the community from schemes to defraud financial institutions insured by the FDIC."
The investigation in this case was conducted by the U.S. Small Business Administration, Office of Inspector General, Internal Revenue Service-Criminal Investigation Division and Federal Bureau of Investigation. The prosecution was handled by Kevin M. Rapp Assistant United States Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-01015/00946/010159 DGC-1
RELEASE NUMBER: 2018-039_ Halman etal
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Peoria Woman Pleads Guilty to Distribution of Fentanyl Resulting in Death and Three of Her Children Plead Guilty to Other Drug OffensesRead the Press Release
PHOENIX - Yesterday, Fany Madrigal-Lopez, 45, of Peoria, Ariz., pleaded guilty to the distribution of fentanyl resulting in death and conspiracy to distribute and to possess with the intent to distribute controlled substances. A conviction for the distribution of fentanyl resulting in death carries a minimum-mandatory sentence of 20 years’ imprisonment and a maximum sentence of life imprisonment.
Three of Madrigal-Lopez’s adult children also pleaded guilty to different controlled substance offenses. Paulina Madrigal-Macias, 26, of Hawaii, pleaded guilty to conspiracy to distribute and to possess with the intent to distribute controlled substances. Adolfo Macias-Madrigal, 27, of Peoria, Ariz., and Luis Angel Macias, 21, of Phoenix, Ariz., both pleaded guilty to unlawful use of a communications facility as part of a drug conspiracy.
According to publicly-filed court documents, between the fall of 2015 and August 2017, Fany Madrigal-Lopez obtained quantities of oxycodone, blue “M-30” pills that looked like oxycodone but contained fentanyl, cocaine, and alprazolam from others in Arizona. The four defendants then sold these substances to customers. On Nov. 16, 2016, Fany Madrigal-Lopez sold blue “M-30” pills to a customer who later died after consuming them.
Sentencing is set before the Honorable Douglas L. Rayes, United States District Judge, on June 19, 2018 for Adolfo Macias-Madrigal and Luis Angel Macias, on July 2, 2018, for Fany Madrigal-Lopez, and on July 9, 2018 for Paulina Macias.
The investigation in this case was conducted by the Drug Enforcement Administration and the Internal Revenue Service-Criminal Investigation, who were assisted by the Peoria Police Department and the Arizona National Guard. The prosecution is being handled by Carolina Escalante Konti, D.J. Pashayan, and Jeffrey Borup, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-17-1110-PHX-DLR
RELEASE NUMBER: 2018-040_Madrigal-Lopez et al.
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Tucson Man Sentenced to 30 Months’ Imprisonment for Aggravated Assault on the Pascua Yaqui Indian ReservationRead the Press Release
TUCSON, Ariz. – On Monday, April 16, 2018, Jaime Joshua Benitez, Jr., 28, of Tucson, Ariz., was sentenced by U.S. District Judge Rosemary Marquez to 30 months’ imprisonment. Benitez had previously pleaded guilty to assault with the use of a dangerous weapon.
Benitez assaulted an acquaintance, a member of the Pascua Yaqui Indian Tribe, on the Pascua Yaqui Indian Reservation by striking him on the head with a simulated gun during a robbery of the victim.
The investigation in this case was conducted by the Pascua Yaqui Police Department. The prosecution was handled by Raquel Arellano, Assistant U.S. Attorney, and Kendrick A. Wilson, Special Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-17-00754-TUC-RM (LAB)
RELEASE NUMBER: 2018-037_Benitez
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Foot Guide Sentenced to 60 Months in Prison for Bringing in Illegal Aliens for ProfitRead the Press Release
TUCSON, Ariz. – Today, Jose Pastrano-Rios, 53, of Mazatlán, Sinaloa, Mexico, was sentenced by U.S. Chief District Judge Raner C. Collins to 60 months in prison with three years of supervised release to follow. Pastrano-Rios had previously pleaded guilty to one count of bringing in illegal aliens for profit.
Pastrano-Rios was arrested on May 19, 2017, for guiding a group of nine illegal immigrants, including two unaccompanied minors, into the United States. Agents were able to determine that Pastrano-Rios was known as “El Bigotes” and was a known human smuggler. He was previously identified as a foot guide for groups of illegal immigrants who were smuggled into the United States on three occasions in 2016.
The investigation in this case was conducted by the United States Border Patrol, the United States Department of Homeland Security-Homeland Security Investigations, and the Tohono O’odham Police Department. The prosecution was handled by Rui Wang and Frances Kreamer Hope, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-17-0926-RCC
RELEASE NUMBER: 2018-038_ Pastrano-Rios
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Many Farms Man Sentenced to 72 Months for Involuntary ManslaughterRead the Press Release
PHOENIX– This week, Harrison Jumbo, 46, of Many Farms, Ariz., was sentenced by U.S. District Judge Diane J. Humetewa to 72 months’ imprisonment. Jumbo had previously pleaded guilty to involuntary manslaughter.
In March 2014, Jumbo drove his vehicle while under the influence of alcohol and prescribed medication. Jumbo collided with another vehicle causing the death of the victim. Jumbo is a member of the Navajo Nation, as was the victim.
Navajo Nation Criminal Investigations conducted the investigation. The prosecution was handled by Kiyoko Patterson, Assistant U.S. Attorney, District of Arizona, Phoenix
CASE NUMBER: CR-17-8075-PCT-DJH
RELEASE NUMBER: 2018-036_Jumbo
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Banner Health Agrees to Pay over $18 Million to Settle False Claims Act AllegationsRead the Press Release
Banner Health has agreed to pay the United States over $18 million to settle allegations that 12 of its hospitals in Arizona and Colorado knowingly submitted false claims to Medicare by admitting patients who could have been treated on a less costly outpatient basis, the Justice Department announced today. Headquartered in Arizona, Banner Health owns and operates 28 acute-care hospitals in multiple states.
“Taxpayers should not bear the burden of inpatient services that patients do not need,” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division. “The Department will continue its efforts to stop abuses of the nation’s health care resources and to ensure that patients receive the most appropriate care.”
The settlement resolves allegations that 12 Banner Health hospitals knowingly overcharged Medicare patients unnecessarily. In particular, the United States alleged that from Nov. 1, 2007 through Dec. 31, 2016, Banner Health billed Medicare for short-stay, inpatient procedures provided at the 12 hospitals that should have been billed on a less costly outpatient basis. The settlement also resolves allegations that Banner Health inflated in reports to Medicare the number of hours for which patients received outpatient observation care during this time period.
“This enforcement action is another example of this office’s commitment to protecting the Medicare program,” said Elizabeth A. Strange, First Assistant United States Attorney for the District of Arizona. “The United States Attorney’s Office, working with our law enforcement partners, will continue to protect Medicare by aggressively pursuing False Claims Act allegations of wrongdoing in the health care industry.”
Banner Health also entered into a corporate integrity agreement with the U.S. Department of Health and Human Services – Office of Inspector General (HHS-OIG) requiring the company to engage in significant compliance efforts over the next five years. Under the agreement, Banner Health is required to retain an independent review organization to review the accuracy of the company’s claims for services furnished to federal health care program beneficiaries.
“Hospitals that bill Medicare for more expensive services than are necessary will be held accountable,” said Christian J. Schrank, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Medical decisions should be made based on patients’ conditions and needs, not on providers’ profits.”
This settlement resolves a lawsuit filed in the U.S. District Court for the District of Arizona by Cecilia Guardiola, a former employee of Banner Health, under the qui tam or whistleblower provisions of the False Claims Act, which permit private citizens to bring lawsuits on behalf of the United States and obtain a portion of the government’s recovery. Guardiola will receive roughly $3.3 million. The case is captioned United States ex rel. Guardiola v. Banner Health and NCMC, Inc. No. 2:13-cv-02443.
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The settlement was a result of a coordinated effort by the Civil Division, the U.S. Attorney’s Office for the District of Arizona and the HHS-OIG. The claims resolved by this settlement are allegations only and there has been no determination of liability.
Banner Health Agrees to Pay over $18 Million to Settle False Claims Act AllegationsRead the Press Release
PHOENIX – Banner Health has agreed to pay the United States over $18 million to settle allegations that 12 of its hospitals in Arizona and Colorado knowingly submitted false claims to Medicare by admitting patients who could have been treated on a less costly outpatient basis, the United States Attorney’s Office for the District of Arizona announced today. Headquartered in Arizona, Banner Health owns and operates 28 acute-care hospitals in multiple states.
The settlement resolves allegations that 12 Banner Health hospitals knowingly overcharged Medicare patients unnecessarily. In particular, the United States alleged that from November 1, 2007, through December 31, 2016, Banner Health billed Medicare for short-stay, inpatient procedures provided at the 12 hospitals that should have been billed on a less costly outpatient basis. The settlement also resolves allegations that Banner Health inflated in reports to Medicare the number of hours for which patients received outpatient observation care during this time period.
“Taxpayers should not bear the burden of inpatient services that patients do not need,” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division. “The Department will continue its efforts to stop abuses of the nation’s health care resources and to ensure that patients receive the most appropriate care.”
“This enforcement action is another example of this office’s commitment to protecting the Medicare program,” said Elizabeth A. Strange, First Assistant United States Attorney for the District of Arizona. “The United States Attorney’s Office, working with our law enforcement partners, will continue to protect Medicare by aggressively pursuing False Claims Act allegations of wrongdoing in the health care industry.”
“Hospitals that bill Medicare for more expensive services than are necessary will be held accountable,” said Christian J. Schrank, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Medical decisions should be made based on patients’ conditions and needs, not on providers’ profits.”
Banner Health also entered into a corporate integrity agreement with the U.S. Department of Health and Human Services – Office of Inspector General (HHS-OIG) requiring the company to engage in significant compliance efforts over the next five years. Under the agreement, Banner Health is required to retain an independent review organization to review the accuracy of the company’s claims for services furnished to federal health care program beneficiaries.
This settlement resolves a lawsuit filed in the United States District Court for the District of Arizona by Cecilia Guardiola, a former employee of Banner Health, under the qui tam or whistleblower provisions of the False Claims Act, which permit private citizens to bring lawsuits on behalf of the United States and obtain a portion of the government’s recovery. Ms. Guardiola will receive roughly $3.3 million. The case is captioned United States ex rel. Guardiola v. Banner Health and NCMC, Inc., No. 2:13-CV-02443.
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Individuals with information regarding fraud, waste, or abuse related to Medicare or other federal programs are encouraged to file a complaint with the United States Attorney’s Office through the office’s website, http://www.justice.gov/usao/az/, or by calling (602) 514-7500.
The settlement was a result of a coordinated effort by the Civil Division, the United States Attorney’s Office for the District of Arizona, and the HHS-OIG. The claims resolved by this settlement are allegations only, and there has been no determination of liability.
RELEASE NUMBER: 2018-035_Banner
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Backpage’s Co-founder and CEO, as Well as Several Backpage-Related Corporate Entities, Enter Guilty PleasRead the Press Release
Earlier this week, the Justice Department announced the seizure of Backpage.com, the Internet’s leading forum for prostitution ads, including ads depicting the prostitution of children, and the unsealing of a 93-count federal indictment against seven Backpage principals. Today, the Justice Department announced that Backpage’s co-founder and CEO, Carl Ferrer, 57, of Frisco, Texas, has pleaded guilty to conspiracy to facilitate prostitution using a facility in interstate or foreign commerce and to engage in money laundering. Additionally, several Backpage-related corporate entities, including Backpage.com LLC, have entered guilty pleas to conspiracy to engage in money laundering.
Attorney General Jeff Sessions, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, First Assistant U.S. Attorney Elizabeth A. Strange for the District of Arizona, FBI Director Christopher A. Wray, U.S. Postal Inspection Service Chief Postal Inspector Guy Cottrell and Chief Don Fort of Internal Revenue Service Criminal Investigation (IRS-CI) made the announcement.
“For far too long, Backpage.com existed as the dominant marketplace for illicit commercial sex, a place where sex traffickers frequently advertised children and adults alike,” said Attorney General Sessions. “But this illegality stops right now. Last Friday, the Department of Justice seized Backpage, and it can no longer be used by criminals to promote and facilitate human trafficking. I want to thank everyone who made this important seizure possible: all of our dedicated and committed professionals in the Child Exploitation and Obscenity Section and our U.S. Attorney’s Office in the District of Arizona, the FBI, our partners with the IRS Criminal Investigation, our Postal Inspectors, and the Texas and California Attorney Generals’ offices. With their help, we have put an end to the violence, abuse, and heartache that has been perpetrated using this site, and we have taken a major step toward keeping women and children across America safe.”
“Backpage has earned hundreds of millions of dollars from facilitating prostitution and sex trafficking, placing profits over the well-being and safety of the many thousands of women and children who were victimized by its practices,” said First Assistant U.S. Attorney Elizabeth A. Strange. “It is appropriate that Backpage is now facing criminal charges in Arizona, where the company was founded, and I applaud the tremendous efforts of the agents who contributed to last Friday’s enforcement action and who assisted in obtaining the indictment in this case. Some of the internal emails and company documents described in the indictment are shocking in their callousness.”
“This website will no longer serve as a platform for human traffickers to thrive, and those who were complicit in its use to exploit human beings for monetary gain will be held accountable for their heinous actions,” said FBI Director Wray. “Whether on the street or on the Internet, sex trafficking will not be tolerated. Together with our law enforcement partners, the FBI will continue to vigorously combat this activity and protect those who are victimized.”
“The events of last Friday and this week are a big win, not only for the agents who investigated these crimes, but more importantly for the victims, including children, who were harmed as a consequence of the alleged actions of Backpage.com,” said Chief Postal Inspector Cottrell. “By laundering the illegal gains of an enterprise, Backpage perpetuated the exploitation of victims and continued to finance their business. The U.S. Postal Inspection Service is committed to protecting our customers by stopping the money laundering to ensure the cycle of victimization ends.”
“An indictment of this magnitude is particularly troubling when you look at the various layers of corruption and exploitation that are alleged to have occurred,” said IRS-CI Chief Fort. “The masterminds behind Backpage are not only alleged to have committed egregious amounts of financial crimes such as money laundering, they did so at the expense of innocent women and children. While these types of investigations can be made more challenging with the use of virtual currency, offshore banking, and the anonymity of the Internet, it should serve as an example to all criminals that there is not a place they can hide where we will not find them.”
According to the factual basis of his plea agreement, Ferrer admitted that he had long been aware that the great majority of Backpage’s “escort” and “adult” advertisements are, in fact, advertisements for prostitution services, which are not protected by the First Amendment and which are illegal in 49 states and in much of Nevada. Ferrer further admitted that he conspired with other Backpage principals to find ways to knowingly facilitate the state-law prostitution crimes being committed by Backpage’s customers. For example, he worked with his co-conspirators to create “moderation” processes through which Backpage would remove terms and pictures that were particularly indicative of prostitution and then publish a revised version of the ad. Ferrer admitted that these editing practices were only one component of an overall, company-wide culture and policy of concealing and refusing to officially acknowledge the true nature of the services being offered in Backpage’s “escort” and “adult” ads.
In the factual basis of his plea agreement, Ferrer also admitted that he conspired with other Backpage principals to engage in various money laundering offenses. According to the factual basis, since 2004, Backpage has earned hundreds of millions of dollars in revenue from publishing “escort” and “adult” ads. Over time, many banks, credit card companies, and other financial institutions refused to do business with Backpage due to the illegal nature of its business. In response, Ferrer admitted that he worked with his co-conspirators to find ways to fool credit card companies into believing that Backpage-associated charges were being incurred on different websites, to route Backpage-related payments and proceeds through bank accounts held in the name of seemingly unconnected entities, and to use cryptocurrency-processing companies for similar purposes.
Ferrer’s plea agreement also requires him to take all steps within his power to immediately shut down the Backpage website, including providing technical assistance to the United States to effectuate the shutdown, and to take all steps within his power to forfeit to the United States all corporate assets and other property owned or controlled by various Backpage-related entities. The plea agreement provides that, if Ferrer fails to comply with either of these requirements, the plea agreement shall be null and void and the United States may bring additional charges against Ferrer. Ferrer’s plea agreement, and the corporate plea agreements, also consent to the forfeiture of certain assets and items of property, including various domain names associated with the Backpage website.
The seven defendants charged in the 93-count indictment were all arrested on Friday, April 6. They are Michael Lacey, 69, of Paradise Valley, Arizona; James Larkin, 68, of Paradise Valley, Arizona; Scott Spear, 67, of Scottsdale, Arizona; John E. “Jed” Brunst, 66, of Phoenix, Arizona; Daniel Hyer, 49, of Dallas, Texas; Andrew Padilla, 45, of Plano, Texas; and Jaala Joye Vaught, 37, of Addison, Texas. On April 6, Vaught had her initial court appearance before U.S. Magistrate Judge Eileen Willett of the District of Arizona and was released from custody pending trial. Lacey, who also had his initial court appearance on April 6 before Judge Willett, subsequently had a detention hearing on April 11 before U.S. Magistrate Judge Bridget S. Bade of the District of Arizona and was ordered to temporarily remain in custody until his continued hearing on Friday, April 13. On April 9, Larkin, Spear, and Brunst had their initial court appearances before Judge Bade. Larkin has since been ordered to temporarily remain in custody until a continued detention hearing on Monday, April 16, and Spear and Brunst were released from custody pending trial. Also on April 9, Hyer had his initial court appearance before U.S. Magistrate Judge David L. Horan in the Northern District of Texas and was released from custody pending trial, and Padilla had his initial court appearance before U.S. Magistrate Judge Christine A. Nowak in the Eastern District of Texas and was released from custody pending trial.
The charges and allegations contained in an indictment are merely accusations. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The effort to seize Backpage was led by the Justice Department’s Child Exploitation and Obscenity Section and the U.S. Attorney’s Office for the District of Arizona, with significant support from the U.S. Attorney’s Office for the Central District of California, the office of the California Attorney General, and the office of the Texas Attorney General. The law enforcement agencies conducting the investigation and seizure include the FBI Phoenix Field Office, the U.S. Postal Inspection Service and IRS-CI. The criminal case is being prosecuted by Assistant U.S. Attorneys Kevin Rapp, Dominic Lanza, and Margaret Perlmeter of the District of Arizona and Senior Trial Attorney Reginald E. Jones of the Criminal Division’s Child Exploitation and Obscenity Section. Assistant U.S. Attorney John Kucera of the Central District of California is handling the asset forfeiture aspects of the case
Arizona Women Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
PHOENIX – Yesterday, U.S. District Judge G. Murray Snow sentenced Carlita Frances O’Neal, 43, of Phoenix, Ariz., to 13 months in federal prison, followed by three years of supervised release. O’Neal had previously pleaded guilty to making false a claim against the United States in connection with her filing of a false tax return. O’Neal’s co-defendant, Jeannine Lynn Clark, 58, of Florence, Ariz., was sentenced to eight months in federal prison, followed by three years of supervised release. Clark had also previously pleaded guilty to making a false claim in connection with her filing of a false tax return. Both women were ordered to pay restitution to the Internal Revenue Service.
Between 2011 and 2013, O’Neal and Clark prepared false tax returns for themselves and their acquaintances using made up income and withholding information, which enabled them to qualify for the Earned Income Tax Credit and increase the false tax refund claimed on the returns. Initially, Clark recruited individuals into the fraudulent scheme by claiming she could get them a large tax refund using only basic information such as their name, address, Social Security number, and date of birth. O’Neal then used the personally identifying information gathered by Clark to prepare fraudulent federal income tax returns and submit them to the IRS electronically. To increase the amount of the false tax refund, O’Neal used fictitious wage and withholding information for the taxpayers. O’Neal received a portion of each false tax refund and paid Clark a referral fee for each individual Clark recruited. O’Neal and Clark later stopped working together, but both of them continued preparing false tax returns on their own using the same fraudulent methods. In total, between 2011 and 2013, O’Neal and Clark prepared and filed approximately 75 fraudulent tax returns, which falsely claimed tax refunds totaling more than $300,000.
The investigation in this case was conducted by the Internal Revenue Service-Criminal Investigation. The prosecution was handled by Bridget Minder, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-00732-GMS
RELEASE NUMBER: 2018-034_O’Neal_Clark
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Justice Department Leads Effort to Seize Backpage.Com, the Internet’s Leading Forum for Prostitution Ads, and Obtains 93-Count Federal IndictmentRead the Press Release
PHOENIX –The Justice Department announced the seizure of Backpage.com, the Internet’s leading forum for prostitution ads, including ads depicting the prostitution of children. Additionally, seven individuals have been charged in a 93-count federal indictment with the crimes of conspiracy to facilitate prostitution using a facility in interstate or foreign commerce, facilitating prostitution using a facility in interstate or foreign commerce, conspiracy to commit money laundering, concealment money laundering, international promotional money laundering, and transactional money laundering.
The seven defendants charged in the indictment are Michael Lacey, 69, of Paradise Valley, Ariz., James Larkin, 68, of Paradise Valley, Ariz., Scott Spear, 67, of Scottsdale, Ariz., John E. “Jed” Brunst, 66, of Phoenix, Ariz., Daniel Hyer, 49, of Dallas, Tex., Andrew Padilla, 45, of Plano, Tex., and Jaala Joye Vaught, 37, of Addison, Tex.
Attorney General Jeff Sessions, Deputy Attorney General Rod Rosenstein, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, First Assistant U.S. Attorney Elizabeth A. Strange for the District of Arizona, Special Agent in Charge of the FBI Phoenix Field Office Michael DeLeon, IRS Criminal Investigation Special Agent in Charge Ismael Nevarez Jr., and Inspector in Charge Nichole Cooper, Los Angeles Division of the U.S. Postal Inspection Service made the announcement.
“For far too long, Backpage.com existed as the dominant marketplace for illicit commercial sex, a place where sex traffickers frequently advertised children and adults alike,” said Attorney General Sessions. “But this illegality stops right now. Today, the Department of Justice seized Backpage, and it can no longer be used by criminals to promote and facilitate human trafficking. I want to thank everyone who made this important seizure possible: all of our dedicated and committed professionals in the Child Exploitation and Obscenity Section and our U.S. Attorney’s Office in the District of Arizona, the FBI, our partners with the IRS Criminal Investigation, our Postal Inspectors, and the Texas and California Attorney Generals’ offices. With their help, today we put an end to the violence, abuse, and heartache that has been perpetrated using this site, and we take a major step toward keeping women and children across America safe.”
“Backpage has earned hundreds of millions of dollars from facilitating prostitution and sex trafficking, placing profits over the well-being and safety of the many thousands of women and children who were victimized by its practices,” said First Assistant U.S. Attorney Elizabeth A. Strange. “It is appropriate that Backpage is now facing criminal charges in Arizona, where the company was founded, and I applaud the tremendous efforts of the agents who contributed to last Friday’s enforcement action and who assisted in obtaining the indictment in this case. Some of the internal emails and company documents described in the indictment are shocking in their callousness.”
"The FBI will aggressively investigate those who exploit young children and women to facilitate sex trade activities and associated money laundering schemes. The FBI, along with our partners at the Department of Justice, United States Attorney's Office, Internal Revenue Service, and U.S. Postal Service are committed to combating this type of crime to protect victims and ensure the safety and wellbeing of our citizens and communities," stated Michael DeLeon, Special Agent in Charge of the FBI Phoenix Field Office.
“Special Agents with IRS-CI are experts at investigating complex financial cases, including those involving the internet. IRS-CI is committed to assisting the U.S. Attorney’s Office in protecting the public from harm and delivering justice to those who are victimized by transnational internet crimes,” stated IRS Criminal Investigation Special Agent in Charge Ismael Nevarez Jr.
“The charges brought today reflect the dedication of law enforcement to stop the exploitation of victims, including children,” said Inspector in Charge Nichole Cooper of U.S. Postal Inspection Service Los Angeles Division. “Postal Inspectors have a history of investigating complex financial schemes used to maintain criminal enterprises, and we will continue our efforts to hold those engaged in such terrible crimes accountable for their actions.”
The charges and allegations contained in an indictment are merely accusations. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The effort to seize Backpage was led by the U.S. Attorney’s Office for the District of Arizona and the Justice Department’s Child Exploitation and Obscenity Section, with significant support from the U.S. Attorney’s Office for the Central District of California, the office of the California Attorney General, and the office of the Texas Attorney General. The law enforcement agencies supporting the seizure include the FBI, the U.S. Postal Inspection Service, and the Internal Revenue Service-Criminal Investigation Division. The criminal case is being prosecuted by Assistant U.S. Attorneys Kevin Rapp, Dominic Lanza, and Margaret Perlmeter of the District of Arizona and Senior Trial Attorney Reginald E. Jones of the Criminal Division’s Child Exploitation and Obscenity Section. Assistant U.S. Attorney John Kucera of the Central District of California is handling the asset forfeiture aspects of the case.
backpage_0.pdf CASE NUMBER: CR-18-00422-PHX (BSB)RELEASE NUMBER: 2018-033_Backpage
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Gila River Man Sentenced to 25 Years in Prison for MurderRead the Press Release
PHOENIX – On April 6, 2018, Philip Anthony Osife, 28, a member of the Gila River Indian Community, was sentenced by U.S. District Judge John J. Tuchi to 25 years in prison. Osife had previously pleaded guilty to second-degree murder. On March 23, 2017, Osife shot one victim twice in the face, and he shot a second victim in the neck, killing them both. Osife took the one victim’s car and left the victims there near a canal bank. A passing motorist found the victims two days later and then called the police.
The investigation in this case was conducted by the Gila River Police Department and the Federal Bureau of Investigation. The prosecution was handled by Raynette Logan and Todd Allison, Assistants U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-00892-PHX-JJT
RELEASE NUMBER: 2018-032_ Osife
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
California Woman Sentenced to Lengthy Prison Term for Fraud and Tax EvasionRead the Press Release
PHOENIX – On March 28, 2018, U.S. District Judge Diane J. Humetewa sentenced Farzaneh Akhavi, 59, to 84 months in prison and ordered her to pay $1.7 million in restitution. Akhavi had previously pleaded guilty to bank and wire fraud, transactional money laundering, and tax evasion. Akhavi was immediately taken into custody.
Evidence showed that Akhavi used her influence to systematically defraud victims out of $1.7 million. First, she convinced victims to move from Orange County, Cal. to the Phoenix metropolitan area, using one victim’s name and Social Security number to open credit accounts and take out loans. Akhavi further used the victims’ money to buy a car and a house for herself, two properties for her daughter, items at high end clothing stores, and on travel related expenses. She convinced the victims to give her additional money by falsely promising to form a business partnership that included operating a restaurant and museum in Mesa, Ariz. She also exaggerated her political connections in an effort to convince the victims that she would advance their political careers in Arizona. Last, she committed tax evasion by failing to file taxes and account for the money she stole from the victims. In 2017, Akhavi purported to enter into a plea agreement that would have resulted in a prison sentence of less than 84 months, but the Court rejected it after discovering Akhavi had included a notation on the plea agreement, handwritten in Farsi, that translated to “innocent.” The final plea agreement in this case did not include such a notation.
“Through lies and deceit, Akhavi financially and emotionally devastated the victims,” stated First Assistant United States Attorney Elizabeth A. Strange. “The seven-year sentence in this case appropriately reflects the magnitude and brazen nature of her crimes.”
The investigation in this case was conducted by Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation. The prosecution was handled by Kevin M. Rapp and Mark K. Kokanovich, Assistant United States Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR14-01066-PHX-DJH (MHB)
RELEASE NUMBER: 2018-031_ Akhavi
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Arizona-Based Peer-To-Peer Bitcoin Trader Convicted of Money LaunderingRead the Press Release
PHOENIX – On March 28, 2018, Thomas Mario Costanzo, a.k.a. Morpheus Titania, of Mesa, Ariz., was found guilty of five counts of money laundering by a federal jury in Phoenix. The case was tried before U.S. District Judge G. Murray Snow. Sentencing is set before Judge Snow on June 11, 2018.
The evidence at trial showed that federal agents initiated an investigation of Costanzo in 2014, after identifying an advertisement he posted on a peer-to-peer bitcoin exchange website. In the advertisement, Costanzo advertised that he was willing to engage in cash transactions up to $50,000. When undercover federal agents approached Costanzo and told him that they were drug dealers, Costanzo provided them with bitcoin and told them it was a great way to limit their exposure to law enforcement. The jury found that over a two-year period, Costanzo took $164,700 in cash from the agents (whom he believed to be heroin and cocaine traffickers) and exchanged it for bitcoin in order to conceal and disguise the nature, location, source, ownership, and control of the drug proceeds. The evidence at trial also showed that Costanzo used bitcoin to purchase drugs from others and that he provided bitcoin to individuals who were buying drugs via the internet.
The evidence at trial also showed how bitcoin operates. Bitcoin is a decentralized form of electronic currency. Bitcoin may be used for legitimate purposes, and anyone can obtain bitcoin from a commercial on-line exchange by paying about 1.5% as a commission and providing identity information to the exchange. In contrast, Costanzo charged between 7% and 10% in his peer-to-peer transactions and did not learn his customers’ identities.
Each of the five convictions for money laundering carries a maximum penalty of 20 years in prison, a $250,000 fine, or both. The bitcoin involved in the final transaction is also subject to forfeiture by the United States.
The investigation in this case was jointly conducted by Internal Revenue Service Criminal Investigation, the Drug Enforcement Administration, and the U.S. Immigration and Customs Enforcement Homeland Security Investigations, and the Scottsdale Police Department, with assistance from the Maricopa County Sheriff’s Office and the United States Postal Inspection Service. The prosecution was handled by Carolina Escalante, Gary Restaino, and Matthew Binford, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-17-00585-PHX-GMS
RELEASE NUMBER: 2018-030_Costanzo
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Chandler Man Sentenced to 30 Months in Prison for Domestic Assault by Habitual OffenderRead the Press Release
PHOENIX – Yesterday, Frank Lynn Kisto, 60, of Chandler, Ariz., was sentenced by U.S. District Judge Douglas L. Rayes to 30 months in prison followed by three years of supervised release for assaulting a woman on the Gila River Indian Community. Kisto had previously pleaded guilty to domestic assault by a habitual offender.
Kisto assaulted the victim by punching her in the face in January 2017. Kisto was previously convicted of similar assaults against domestic partners in 1999 and 2009 in tribal court on the Gila River Indian Community. Both Kisto and the victim are enrolled members of the Gila River Indian Community.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Christine Ducat Keller, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-00993-PHX-DLR
RELEASE NUMBER: 2018-029_Kisto
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Federal Firearms Dealer Sentenced to 78 Months for His Role in Trafficking Firearms to MexicoRead the Press Release
TUCSON, Ariz. – Last week, Timothy Alan Veninga, 48, of Tucson, Ariz., was sentenced by U.S. District Judge James A. Soto to 78 months’ imprisonment and a judgment of forfeiture of over $61,000. Veninga had previously pleaded guilty to conspiracy to defraud the United States, aiding and abetting false statements in firearms transactions, false statements to government agency, tampering, and identity theft. On July 6, 2017, Veninga’s co-defendant, Joe Valles, a former Tucson Police Department officer, was also sentenced to 78 months’ imprisonment for his role in the trafficking scheme.
Veninga, owner of Ballistic Firearms in Tucson and Valles, a business partner who operated a firearm painting business on the premises of Ballistic Firearms, were involved in a scheme in which they paid individuals who were not the actual purchasers of firearms to complete and sign ATF Forms 4473 (Firearms Transaction Record), while leaving the date and firearm information section blank. Veninga and Valles also used the identities of two other people (which had been obtained while Valles was working as a police officer for Tucson Police Department) who were not the actual purchasers of firearms without their permission to complete and sign Forms 4473. Veninga and Valles used the fraudulent Forms 4473 to document multiple firearms transactions and create records retained by Veninga, which falsely represented the identities of the purchasers, thereby concealing the identities of the true buyers. The conspiracy involved a minimum of 31 firearm transactions involving 24 semi-automatic pistols (varying calibers) and seven rifles, including one semi-automatic assault rifle, one semi-automatic high-capacity rifle, and two .50 caliber semi-automatic rifles. Evidence from the investigation established that these firearms were sold to members from Mexico drug cartels and that the firearms were intended for Mexico.
The investigation in this case was conducted by Bureau of Alcohol, Tobacco, Firearms, and Explosives. The prosecution was handled by Serra M. Tsethlikai and Karen Rolley, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-16-1059-TUC-JAS
RELEASE NUMBER: 2018-028_Veninga
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Syrian National Convicted for Conspiring to Kill American Soldiers in IraqRead the Press Release
Today, Ahmed Alahmedalabdaloklah, a Syrian national who had been living in Iraq, was convicted by a jury, following a six-week trial, of conspiring and supporting the 1920s Revolutionary Brigades, an insurgent group that planted road-side bombs to attack and kill American soldiers in Iraq. A jury convicted Alahmedalabdaloklah on Conspiracy to Use a Weapon of Mass Destruction, Conspiring to Maliciously Damage or Destroy United States Property by Means of an Explosive, Aiding and Abetting Other Persons to Possess a Destructive Device in Furtherance of a Crime of Violence, and Conspiracy to Possess a Destructive Device in Furtherance of a Crime of Violence. Sentencing is set for June 5, 2018 before District Judge Roslyn O. Silver.
Assistant Attorney General for National Security John C. Demers, Elizabeth A. Strange, First Assistant United States Attorney for the District of Arizona, and Michael Deleon, Special Agent in Charge, Federal Bureau of Investigation, Phoenix Field Office, made the announcement.
“Alahmedalabdaloklah conspired with a violent Iraqi insurgent group to kill American soldiers in Iraq,” said First Assistant Strange. “Today’s verdict underscores our commitment to use every available resource to bring justice to American soldiers who were killed or injured by such terrorist acts. I commend the FBI and the prosecution team for their tremendous efforts in securing this conviction.”
"The FBI's highest priority is preventing acts; both in the United States and abroad," said Phoenix FBI Special Agent in Charge Michael DeLeon. "We want to thank the Department of Justice and the Arizona U.S. Attorney's Office, the FBI's Joint Terrorism Task Force, agents, analysts, and both local and foreign partners for working together to bring Ahmed Alahmedalabdaloklah to justice. This is a prime example of the FBI's commitment to pursuing justice even in the most complex and difficult cases. The FBI also wants to voice our sympathy and condolences to the victims, their families and friends. The FBI will continue our mission of preventing terrorist acts and pursuing those who plan to do us harm. "
Between 2006 and 2011, United States soldiers were deployed to Iraq to support the fledgling Iraqi government and to provide security to the Iraqi people. Multiple insurgent groups, including the 1920 Revolution Brigades (“1920s”), opposed the Iraqi government and committed violent acts in an effort to destabilize Iraq and expel American forces from the country. American soldiers faced daily attacks from snipers, small team ambushes, and deadly improvised explosive devices (“IEDs”) planted along major military supply routes.
Alahmedalabdaloklah supported the 1920s by designing, making, and supplying parts for remote-controlled IED initiator switches for roadside bombs. In August 2006, during a search and seizure weapons clearing mission, American soldiers located an apartment in Baghdad that had been converted into an IED switch-making factory. Soldiers seized numerous items used to detonate IEDs, including receivers, transmitters, cell phones, key fobs, modified hands-free headsets, and ready-to-use IED switches. Over a thousand finger and palm prints belonging to Alahmedalabdaloklah were discovered on the items found there, including instructions for making IEDs.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Trial Attorney Joseph Kaster from the National Security Division of the U.S. Department of Justice, and Assistant U.S. Attorneys David Pimsner, Melissa Karlen, and Bill Solomon, from the U.S. Attorney’s Office, District of Arizona.