District of Arizona

PHOENIX – First Assistant United States Attorney Elizabeth A. Strange announced today that the U.S. Attorney’s Office for the District of Arizona collected $13,751,877 in criminal and civil actions in Fiscal Year 2017.  Of this amount, $5,903,640 was collected in criminal actions and $7,848,237 was collected in civil actions. 

 

     The District of Arizona also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $3,464,078 in cases pursued jointly with those offices.  Of this amount, $16,301 was collected in criminal actions and $3,447,777 was collected in civil actions.         

             

     Overall, the Justice Department collected just over $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2017. 

 

     The U.S. Attorneys’ Offices, along with the Justice Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. 

 

     Federal law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss.  Criminal restitution is paid directly to the victims and criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds to state victim compensation and victim assistance programs.

 

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

 

     Additionally, the U.S. Attorney’s Office for the District of Arizona, working with partner agencies and divisions, collected $3,100,141 in asset forfeiture actions in FY 2017.  Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.

 

RELEASE NUMBER:    2018-003_FY2017Collections

 

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FLAGSTAFF – Last week, Gary Cody Francis, 55, of Chinle, Ariz., was sentenced by Senior U.S. District Judge Stephen M. McNamee to 156 months in federal prison, followed by lifetime supervised release.  Francis had previously pleaded guilty to one count of abusive sexual contact with a minor.

 

     On Sept. 8, 2016, Francis, an enrolled member of the Navajo Nation, knowingly engaged in sexual contact with the minor victim, who is also an enrolled member of the Navajo Nation. 

 

     The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Division of Public Safety Criminal Investigations. The prosecution was handled by Christina Covault, Assistant U.S. Attorney, District of Arizona, Phoenix.

 

CASE NUMBER:            CR-16-8267-PCT-SMM

RELEASE NUMBER:    2018-002_Francis

 

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PHOENIX – On Jan. 8, 2018, Sergio Charley, 37, of Tonalea, Ariz., and a member of the Navajo Nation, was sentenced by U.S. District Judge Douglas L. Rayes to 46 months in prison followed by a term of 3 years of supervised release. Charley had previously pleaded guilty to assault with a dangerous weapon.

 

     On April 12, 2016, Charley assaulted the victim with a knife, causing the victim to sustain serious bodily injury.  The victim is also a member of the Navajo Nation and the assault occurred on the Navajo Nation Indian Reservation.

 

     The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Department of Law Enforcement.  The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.

 

 

CASE NUMBER:           CR-17-08144-DLR        

RELEASE NUMBER:    2018-001_Charley

 

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TUCSON, Ariz. – Roberto Ramirez, 21, of Tucson, Ariz., was arrested on Dec. 24, 2017 and subsequently charged by complaint with multiple offenses, including transportation of illegal aliens resulting in serious bodily injury, high-speed flight from a border patrol checkpoint, assault on a federal officer, and use of a firearm in furtherance of a violent crime.

 

     The complaint alleges that Ramirez arrived at the Border Patrol checkpoint on I-19 near Amado while transporting two suspected illegal aliens.  When agents referred Ramirez for further inspection, Ramirez fled from the checkpoint and drove northbound on I-19 at a high rate of speed.  Several border patrol agents pursued Ramirez in their vehicles.  During the pursuit, Ramirez fired several gunshots at the agents and attempted to ram their vehicles.    Ramirez eventually lost control of his vehicle and crashed.  One of Ramirez’s passengers was ejected during the crash and suffered serious injuries. 

 

     At the initial appearance/detention hearing held today, the court ordered that Ramirez remain detained in custody.

 

     Several of the charges carry a maximum penalty of 20 years of imprisonment and a $250,000 fine. 

 

     A criminal complaint is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

 

     The investigation in this case was conducted by Homeland Security Investigations and the United States Border Patrol. The prosecution is being handled by Liza M. Granoff and Matthew C. Cassell, Assistant United States Attorneys, District of Arizona, Tucson.

 

CASE NUMBER:                   Mag#-17-MJ-06045M

RELEASE NUMBER:           2017-126_Ramirez

 

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PHOENIX – This week, U.S. District Judge G. Murray Snow sentenced Mary Bauer (aka Mary Almassy) to 33 months in federal prison, followed by three years of supervised release.  Bauer was also ordered to pay more than $1 million in restitution.  Bauer had previously pleaded guilty to wire fraud. 

 

     Bauer defrauded nearly two dozen local and national charities out of more than a million dollars in consulting fees.  Bauer held herself out as an experienced fundraiser who could help charities get large donations from wealthy philanthropists.  Bauer falsely claimed that she and her employees and associates had special access to certain out-of-state donors who wanted to make large charitable gifts.  Those donors did not exist.  Bauer made up the fictitious donors, as well as fictitious employees and associates, and fabricated numerous documents to conceal her fraud and lull her victims into continuing to pay her large monthly fees.  Bauer’s victims include charities dedicated to curing debilitating diseases, educating Arizona’s schoolchildren, and rehabilitating injured wildlife.

 

     “Frauds against charities are far-reaching, because they hurt not only the organizations, but the people the charities seek to serve, and the persons who have given to support the cause,” stated Elizabeth A. Strange, First Assistant U.S. Attorney.  “Our office will continue to aggressively prosecute anyone who targets charitable organizations.”

     “A prison sentence is very appropriate for someone who defrauded organizations dedicated to charitable causes and especially someone that took numerous steps to try to conceal her fraudulent activity,” said Ismael Nevarez Jr., Special Agent in Charge of the Phoenix Field Office of IRS-Criminal Investigation.

 

     The investigation in this case was conducted by the Internal Revenue Service-Criminal Investigation.  The prosecution was handled by Bridget Minder, Frank Galati, and Monica Klapper, Assistant U.S. Attorneys, District of Arizona, Phoenix.

 

CASE NUMBER:           CR-16-001157-GMS           

RELEASE NUMBER:    2017-125_Bauer

 

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PHOENIX – On Dec. 18, 2017, Marvin Benally, 47, of Leupp, Ariz., and a member of the Navajo Nation, was sentenced by U.S. District Judge David G. Campbell to 264 months in prison followed by lifetime supervised release and sex offender conditions.  Benally had previously pleaded guilty to abusive sexual contact of a child.

 

     The case involved Benally repeatedly sexually abusing a child, who was then between the ages of 11 and 12 and also a member of the Navajo Nation.   

 

     The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Police Department.  The prosecution was handled by Sharon K. Sexton, Assistant U.S. Attorney, District of Arizona, Phoenix.

 

CASE NUMBER:            CR-17-8130-PCT-DGC

RELEASE NUMBER:    2017-123_ Benally

 

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PHOENIX – Yesterday, Jason Todd Mogler, 49, formerly of Phoenix, Ariz., was sentenced by U.S. District Judge Steven P. Logan to 24 years and 4 months in prison.  Mogler had previously pleaded guilty to charges of conspiracy, wire fraud, and money laundering stemming from his role as one of the leaders in an $18 million investment fraud affecting 225 victims.   

 

     “Mogler’s crimes were particularly heinous, and deserving of a lengthy prison sentence, because he stole the life savings of everyday citizens, many of whom were near the end of their earning years,” stated Elizabeth A. Strange, First Assistant United States Attorney.  “Our district will continue to work closely with the FBI to catch and prosecute financial predators like Mogler.”

 

      "This sentence sends a strong message to criminals committing financial crimes. A single scam can destroy a company, devastate families by wiping out their life savings, or cost investors millions of dollars," said FBI Special Agent in Charge Michael DeLeon. “The FBI would like to remind investors to be diligent and gather as much information as possible before making any investment.  The FBI will continue to work aggressively with our law enforcement partners to investigate and prosecute those who break the law and violate public trust."

 

     From 2006 to 2012, Mogler and several others solicited millions of dollars from victims for purported investment in a variety of projects and companies, including land development in Mexico, recycling companies in Las Vegas and Chicago, and distressed real estate ventures in Phoenix. Mogler and his co-conspirators promoted their fraudulent investment schemes in legitimate-appearing seminars, magazine articles, and radio broadcasts, and they issued private offering documents that gave the fraudulent investments the appearance of legitimacy. 

 

     In reality, the solicitations and offering documents were riddled with false statements about the education and experience of Mogler and his co-conspirators, the ownership of property to be used in the projects and to serve as collateral, the feasibility of the projects and guaranteed returns, and other important matters.  Ultimately, Mogler and his co-conspirators used the investor funds not only to line their own pockets, but also to make Ponzi payments to certain investors and to create the façade of a legitimate business.  Mogler was also ordered to pay restitution to the victims for losses they incurred.

 

     The investigation in this case was conducted by the Phoenix Division of the FBI.  The prosecution was handled by Monica Klapper and Peter Sexton, Assistant U.S. Attorneys, District of Arizona, Phoenix.

 

CASE NUMBER:            CR-15-01118-PHX-SPL

RELEASE NUMBER:    2017-124_ Mogler

 

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PHOENIX – Today, Yomtov Scott Menaged, 40, of Phoenix, Ariz., was sentenced by U.S. District Judge G. Murray Snow to 17 years in prison for orchestrating multiple fraud schemes resulting in more than $30 million in losses.  Menaged had previously pleaded guilty to bank fraud, money laundering, and aggravated identity theft.  The Court also ordered Menaged to pay the various victims $33,558,407.76 in restitution.  

 

     Menaged, who operated a real estate investment business as well as retail furniture stores, embezzled millions in loans meant for real estate purchases and provided fake real estate purchase documents to conceal the fraud.  Menaged used the embezzled money to support his lavish lifestyle that included travel, million dollar homes, and luxury vehicles. 

     When Menaged no longer had access to the embezzled funds, he orchestrated an elaborate identity theft scheme involving purported customers of his various retail furniture stores.  Menaged obtained the names and personal identification information of recently deceased individuals and used their information to submit fake credit applications from his furniture stores to various banks.  In fact, no real furniture purchases ever took place.  The ID theft scheme resulted in more than $2 million losses to the banks. 

     “Menaged engaged in a multi-year fraud scheme and brazenly stole from his victims -- their money, their identities, and ultimately their trust,” stated First Assistant United States Attorney Elizabeth A. Strange.  “Today’s lengthy sentence is a fitting punishment for his egregious crimes.”

 

     “While the harm and damage the defendant caused by swindling more than $33 million from innocent investors can never be repaired, the 200 plus victims can now take some small measure of satisfaction that he is now looking at 17 years in federal prison and a substantial forfeiture as repayment for his crimes.” said Scott Brown, special agent in charge of Homeland Security Investigations (HSI) in Phoenix. “HSI special agents dedicated to uncovering financial fraud will continue to aggressively investigate those who seek to profit by taking advantage of others.”

 

     “The criminal conduct by defendant Menaged was extensive.  His actions caused personal and financial harm to many individuals, including his former business partner,” stated IRS-Criminal Investigation Special Agent in Charge Ismael Nevarez Jr. “The sentence is very appropriate based on the $33 million loss from his fraud scheme and the tragic human suffering he caused.”

 

     The investigation in this case was conducted by the Department of Homeland Security, Homeland Security Investigations and Internal Revenue Service-Criminal Investigation.  The prosecution was handled by Monica B. Edelstein and Kevin M. Rapp, Assistant U.S. Attorneys, and Jennifer A. Giaimo, Special Assistant U.S. Attorney, District of Arizona, Phoenix.

 

CASE NUMBER:            CR-17-000680-PHX-GMS           

RELEASE NUMBER:    2017-122_Menaged

 

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PHOENIX – On Dec. 12, 2017, Morris Singer, 54, of Kayenta, Ariz., and a member of the Navajo Nation, was sentenced by U.S. Senior District Judge Stephen M. McNamee to 37 months in prison, followed by 3 years of supervised release.  Singer had previously pleaded guilty to involuntary manslaughter.

 

     The case involved Singer driving his vehicle while intoxicated.  The victim, also a member of the Navajo Nation, was the passenger in Singer’s vehicle. Singer lost control of the vehicle and it rolled several times, ejecting the victim.  The victim died from injuries sustained from the crash, which occurred within the Navajo reservation.

 

     The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Police Department.  The prosecution was handled by Sharon Sexton and Alex Samuels, Assistant United State Attorneys, District of Arizona, Phoenix.

 

CASE NUMBER:           CR-17-8049-PCT-SMM

RELEASE NUMBER:    2017-121_Singer

 

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PHOENIX – Today, Brennan Lee Sumatzkuku, 23, of Tuba City, Ariz., was sentenced by U.S. District Judge Douglas L. Rayes to 36 months in federal prison, followed by three years of supervised release.  Sumatzkuku had previously pleaded guilty to one count of involuntary manslaughter.

 

     On Jan. 22, 2017, Sumatzkuku, an enrolled member of the Hopi Nation, was driving a vehicle with two passengers on the Navajo Nation reservation.  In dark and snowy conditions, Sumatzkuku, whose blood alcohol content was later determined to be .188, drove at a high rate of speed and lost control of the vehicle, causing all three occupants to be ejected.  One victim, 29, an enrolled member of the Hopi Nation, was pronounced dead at the scene, and another victim, 20, also an enrolled member of the Hopi Nation, was seriously injured.  

 

     The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Department of Criminal Investigations. The prosecution was handled by Christina Covault, Assistant U.S. Attorney, District of Arizona, Phoenix.

 

CASE NUMBER:           CR-17-1824-PCT-DLR  

RELEASE NUMBER:    2017-119_ Sumatzkuku

 

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PHOENIX – Today, Dilbagh Singh, 57, of Ontario, Canada, was sentenced by U.S. District Judge Steven P. Logan to 46 months of incarceration. Singh had previously pleaded guilty to international travel with intent to engage in illicit sexual conduct.

 

      Court documents show that in January 2017, Singh began an online relationship with an individual he believed to be a 15-year old girl.  Over the course of nearly four months, Singh told the girl that he wanted to engage in various sex acts with her.  In May 2017, Singh travelled from Canada to Flagstaff, Ariz., to meet with the girl in person and to have sex with her. 

     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. The prosecution was handled by Robert I. Brooks, Assistant U.S. Attorney, District of Arizona, Phoenix.

 

CASE NUMBER:           CR-17-8108-PCT-SPL   

RELEASE NUMBER:    2017-118_ Singh

 

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TUCSON, Ariz. – Last month, Juan Valentino Coronado, 46, of Tucson, Ariz., and enrolled member of the Pascua Yaqui Tribe, was sentenced by U.S. District Judge James A. Soto to over 7 months in prison for failing to participate in sex-offender treatment, which he had been ordered to do as part of a previous conviction for sexually abusing a minor.

 

     Coronado was originally convicted and sentenced on Oct. 24, 2014, for abusive sexual contact of a minor for an offense committed while he was on the Pascua Yaqui Reservation in 2013.  His supervised release was first revoked in March 2015 because he had contact with a minor.  He was imprisoned for an additional five months and, after serving that prison term, placed back on federal supervision.  In February 2017, Coronado was charged with another violation, this time for unsatisfactory participation in sex offender treatment.  He challenged those allegations, but after a two-day evidentiary hearing, both the federal magistrate judge and district judge found that Coronado had failed to complete his sex-offender treatment.

 

      “Our compliments and thanks go to the U.S. Probation Department for closely monitoring the defendant after his release from prison,” stated First Assistant U.S. Attorney Elizabeth A. Strange.  “It is not enough to simply punish, through a term of imprisonment, those who commit sexual crimes against minors.  Sex-offender treatment is an important tool in ensuring that offenders don’t revert to their old ways, and our office will be vigilant in demanding that such offenders meet all of their court-ordered responsibilities even after they are released from prison.”

 

     Upon release from prison, Coronado will be returned to federal supervised release, for the third time, for an additional 60 months.  His special conditions once again include that he participate in and complete sex offender treatment.

      

     The investigation in the underlying case was conducted by the Pascua Yaqui Police Department and the Federal Bureau of Investigation. The prosecution was handled by Micah Schmit, Assistant U.S. Attorney, District of Arizona, Tucson.

 

CASE NUMBERS:                 CR-14-0350-TUC-JAS

RELEASE NUMBER:           2017-116_Coronado

 

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PHOENIX - The U.S. Attorney’s Office for the District of Arizona has formed an Opioid Task Force to combat the serious opioid, heroin, and fentanyl crisis in Arizona.  The Task Force includes include federal, state, local, and tribal law enforcement officers and prosecutors and will be managed by Phoenix Criminal Division Chief Raymond K. Woo, who has been designated as the District’s Opioid Coordinator.   Criminal Chief Woo will be responsible for developing, implementing, and coordinating a robust prosecution response to this crisis.  He has already assembled committees of experienced federal and state prosecutors to assist law enforcement with the prosecution of transnational criminal organizations that smuggle heroin and opioids into the United States, medical professionals who unlawfully prescribe or divert highly addictive opioids, cyber criminals who distribute heroin and illicit opioids through the darknet, and drug traffickers or persons who are criminally responsible for opioid overdose deaths. 

 

     Elizabeth A. Strange, First Assistant U.S. Attorney, stated, “It is critical that we also support our smaller law enforcement agencies and communities when addressing this horrific crisis.  This epidemic affects every corner of our state, and we must join forces with our tribal and local law enforcement partners to successfully combat this crisis.”    

 

     The USAO’s Opioid Task Force was created in response to President Donald J. Trump’s designation of the opioid epidemic as a “national health emergency” and to directives from Attorney General Jefferson B. Sessions, who has made combating the opioid epidemic a top priority for the Department of Justice.  Earlier this year, Attorney General Sessions formed an Opioid Fraud and Abuse Detection Unit to focus on identifying and prosecuting health care fraud related to prescription opioids and funded twelve experienced federal prosecutors to focus on these types of fraud.  As Attorney General Sessions stated, “[t]he Department is determined to attack this opioid epidemic,” and this Task Force is on the forefront of that effort for Arizona.   

 

 

RELEASE NUMBER:           2017-117_ Opioid_TF

 

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TUCSON, Ariz. – Yesterday, Donnie Ray Jose, 46, of Chui Chu, Ariz., a member of the Tohono O’odham Nation, was sentenced by U.S. District Judge James A. Soto to 108 months in prison. Jose was convicted after a jury trial of assault with a dangerous weapon and assault resulting in serious bodily injury.

 

     The evidence at trial demonstrated that Jose, during an act of domestic violence, stabbed the victim sixteen times in her shoulder area while she and her minor son were asleep in bed. The victim is also a member of the Tohono O’odham Nation, and the assault occurred on the Tohono O’odham Indian Reservation.   The Court enhanced Jose’s sentence based on a finding that the victim was vulnerable, as she had been sleeping just prior to the stabbing and that there were minor children present during the assault. 

 

     Upon release from prison, Jose will be on supervised release for three years. The terms of his supervision include no contact with the victim, the victim’s family, or any of the witnesses who testified at trial.

 

     The investigation in this case was conducted by both the Tohono O’odham Police Department and the Federal Bureau of Investigation. The prosecution was handled by Serra M. Tsethlikai and Charisse Arce, Assistant U.S. Attorneys, District of Arizona, Tucson.

 

CASE NUMBER:                  CR-15-01387-TUC-JAS-BGM

RELEASE NUMBER:           2017-115_Jose

 

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PHOENIX – Earlier this month, Kevin Matthew Bianchi, 47 of Petaluma, Calif., was sentenced by U.S. District Judge David L. Rayes to two years’ imprisonment for aggravated identity theft and credit card fraud. Bianchi had previously pleaded guilty to both charges.

 

      Bianchi was involved with others, in perpetrating fraudulent schemes in California and Arizona. Bianchi possessed and used counterfeit credit cards and driver’s licenses to defraud the United States Postal Service in an amount exceeding $19,000 in Arizona.

 

       The investigation in this case was conducted by by the United States Postal Inspection Service. The prosecution was handled by Charles F. Hyder, Assistant U.S. Attorney, District of Arizona, Phoenix.

 

CASE NUMBER:                CR-17-00323-PHX-DLR         

RELEASE NUMBER:         2017-114_Bianchi

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      PHOENIX – Earlier this month, the last of 17 defendants in a nationwide drug trafficking and money laundering cell, Ramon Llamas, 55, of Phoenix, Ariz., was sentenced by United States District Judge Diane J. Humetewa to 168 months’ imprisonment after he previously pleaded guilty to conspiracy to distribute methamphetamine and conspiracy to launder monetary instruments.  

 

     Llamas’s sentencing followed other recent hearings in which Judge Humetewa imposed sentences of 97 months’ imprisonment for Donald Hamilton, 50, of Philadelphia, Pa., who was convicted at trial of conspiracy to distribute marijuana, conspiracy to launder monetary instruments, and other offenses, and Orencio Ruelas, 55, of Phoenix, Ariz., who was sentenced to 235 months’ imprisonment after being convicted at trial of conspiracy to distribute methamphetamine and other offenses.  Fourteen other defendants convicted in the case for various drug trafficking and money laundering crimes received sentences ranging from probation to 121 months’ imprisonment.

 

     At trial, the United States proved that Llamas and his son, co-defendant Juan Llamas, obtained large quantities of marijuana and methamphetamine from Mexico and shipped it to customers throughout the United States. As part of t  hese activities, Hamilton, a gate agent for a major domestic airline at the Philadelphia International Airport, met and introduced Juan Llamas to marijuana customers on the east coast in exchange for a portion of the proceeds from drug sales. Hamilton also used his position with the airlines to obtain “buddy passes” for Juan Llamas and others to fly to and from Phoenix and the east coast in aid of their drug trafficking activities.  Hamilton himself used his position with the airlines to smuggle hundreds of thousands of dollars of drug money through airport security from Philadelphia to Phoenix.  

 

     Evidence at trial also showed that Ruelas, a family friend of Ramon Llamas, assisted customers in obtaining kilogram-quantities of methamphetamine from Mexico through the Llamas family on multiple occasions.            

 

     The investigation in this case was conducted by the Drug Enforcement Administration and the Internal Revenue Service-Criminal Investigation, who were assisted by the Glendale Police Department, the Peoria Police Department, the Phoenix Police Department, and the La Paz County Sheriff’s Office. The prosecution was handled by D.J. Pashayan, Todd Allison, and Krissa Lanham, Assistant U.S. Attorneys, District of Arizona, Phoenix.

 

CASE NUMBER:      CR-14-0865-PHX-DJH

RELEASE NUMBER:    2017-112_Llamas etal

 

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PHOENIX – Today, Nathan Joe, 36, of Nazlini, Ariz., was sentenced by U.S. District Judge John J. Tuchi to 21 months in prison for physically abusing a child on the Navajo Indian Reservation. 

 

     In February 2014, Joe physically assaulted the minor victim, including slapping him with enough force to leave a handprint-sized bruise on the victim’s face.  Both Joe and the victim were living on the Navajo Indian Reservation at the time the assault occurred.  Joe is an enrolled member of that tribe. 

 

     The investigation in this case was conducted by the Federal Bureau of Investigation.  The prosecution was handled by Christine D. Keller, Assistant U.S. Attorney, District of Arizona, Phoenix.

 

CASE NUMBER:           CR-16-08037-PCT-JJT   

RELEASE NUMBER:    2017-113_Joe

 

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TUCSON, Ariz. – Last week, Bernardo Romo-Ramos, 35, of Sonoyta, Sonora, Mexico, and a member of the Tohono O’odham Nation, was sentenced by Chief U.S. District Judge Raner C. Collins to 200 months of imprisonment.  Bernardo Romo-Ramos had previously pleaded guilty to importation of more than 500 grams of methamphetamine.  This was Romo-Ramos’s fourth drug trafficking conviction. 

 

     On Aug. 23, 2016, Romo-Ramos entered the United States from Mexico through the Papago Gate on the Tohono O’odham Indian Nation. He was driving a 2001 Chevrolet truck that was later found to be loaded with 22 kilograms of methamphetamine and 1.2 kilograms of heroin. The forty-seven packages of narcotics were located in after-market compartments under the floorboards of the truck.

 

     The investigation was conducted by the Homeland Securities Investigations’ Native American Targeted Investigation of Violent Enterprises Task Force.  The prosecution was handled by Sarah B. Houston and Susanna Martinez, Assistant U.S. Attorneys, District of Arizona, Tucson.

 

CASE NUMBER:            CR-17-432-TUC-RCC-BGM       

RELEASE NUMBER:    2017-111_ Romo_Ramos

 

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PHOENIX – Yesterday, U.S. District Judge John. J. Tuchi sentenced Anthony Wayne Hamilton, 27, of Phoenix, Ariz., to 260 years in prison for a series of violent gas station robberies committed throughout the Phoenix area.  Hamilton was found guilty by a federal jury on June 12, 2017, of 11 counts of Hobbs Act Robbery and 11 counts of brandishing a firearm during a crime of violence. 

 

     “The U.S. Attorney’s Office is committed to vigorously prosecuting all violent offenders,” said Acting United States Attorney Elizabeth A. Strange.  “We commend the federal and local law enforcement agencies for their collaboration in investigating and apprehending this violent criminal.” 

 

     “Anthony Hamilton was convicted of committing violent armed robberies throughout Arizona which impacted countless victims. The FBI and our law enforcement partners are committed to keeping our communities safe through shared information, collaboration, and investigative initiatives,” said Michael DeLeon, Special Agent in Charge of the FBI Phoenix Field Office. “This case was worked jointly with almost a dozen Arizona law enforcement agencies and is yet another example of law enforcement agencies coming together to combat violent crime and ensure the safety of our citizens.”

 

     Evidence at trial showed that during a seven-week period from Dec. 20, 2015 through Feb. 9, 2016, Hamilton robbed eleven different gas stations and convenience stores at gunpoint.  During the course of the robberies, Hamilton stole money from the gas stations and from gas station employees while displaying and threatening to use a handgun.  Hamilton robbed stores in nearly every city in the Phoenix metropolitan area.

 

     The investigation in this case was a product of significant collaboration between the FBI’s Robbery Task Force, the Phoenix Police Department, the Glendale Police Department, the Tempe Police Department, the Peoria Police Department, the Scottsdale Police Department, the Mesa Police Department, the Chandler Police Department, the Maricopa County Sheriff’s Office, the Pinal County Sheriff’s Office, and the U.S. Marshals Service. The prosecution was handled by Robert I. Brooks and Anthony W. Church, Assistant U.S. Attorneys, District of Arizona, Phoenix.

 

CASE NUMBER:                  CR-16-0268-PHX-JJT

RELEASE NUMBER:           2017-109_Hamilton

 

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TUCSON, Ariz. – Four members of an international fraud syndicate have been sentenced to federal prison for conspiracy to commit bank fraud and aggravated identity theft in connection with their scheme to manufacture and use fraudulent credit cards using the personally identifiable information of US-based individuals.

 

     Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Elizabeth A. Strange for the District of Arizona, and Special Agent in Charge Scott Brown of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Phoenix Field Office made the announcement.

 

     “Our office is dedicated to combatting transnational fraud and identity theft,” said Acting U.S. Attorney Strange.  “The scope of the fraud scheme in this case was staggering, and we commend our law enforcement partners for apprehending the perpetrators and bringing them to justice.”

 

     “This appalling international scheme illustrates the lengths to which fraudsters will go to game the system for financial gain,” said HSI Special Agent Brown. “We will continue to work tirelessly with our law enforcement partners to hold shameless, brazen fraudsters accountable for their crimes.”

 

     According to admissions made in connection with their guilty pleas, the defendants participated in a conspiracy that bought stolen personally identifiable information, credit card account information, and other financial information over the Internet from individuals located in Ukraine, Tajikistan, and Russia, among other countries.  The stolen personally identifiable information and stolen credit card account information were then used to unlawfully manufacture fraudulent credit cards. 

 

     Participants in the fraud scheme traveled on multiple occasions from Mexico into the United States and used the fraudulent credit cards to purchase gift cards and high end merchandise, such as iPhones, laptop computers, and designer clothing, from retailers throughout Arizona and elsewhere in the United States.  After purchasing merchandise and gift cards, the co-conspirators transported the unlawfully purchased merchandise and gift cards to Mexico for future sale and profit for scheme participants.  The defendants admitted in their guilty pleas that they collectively possessed at least 5,684 fraudulent credit cards resulting in the loss of hundreds of thousands of dollars.

 

     The defendants each pleaded guilty to conspiracy to commit bank fraud and aggravated identity theft.  Today, Rey Martinez-Lopez, 33, of Hermosillo, Sonora, Mexico, was sentenced to four years and six months in prison, to be followed by five years of supervised release by U.S. District Judge Rosemary Marquez of the District of Arizona. 

 

     Judge Marquez sentenced the other three defendants to the following prison terms:

 

• On Sept. 29, Anwar Barragan Flores, 39, of Hermosillo, Sonora, Mexico, was sentenced to seven years in prison, to be followed by five years of supervised release.
   
• On Sept. 12, Jorge Williams-Araiza, 38, of Hermosillo, Sonora, Mexico, was sentenced to three years and two months in prison, to be followed by five years of supervised release.
   
• On Aug. 23, Javier Ramirez-Villegas, 36, of Hermosillo, Sonora, Mexico, was sentenced to four years in prison to be followed by five years of supervised release. 
   
  The defendants’ restitution will be determined by the Court at a later hearing, which has not been scheduled yet.
   

     The investigation in this case was conducted by HSI Nogales. The prosecution was handled by Assistant U.S. Attorney Matthew G. Eltringham, Organized Crime and Drug Enforcement Task Force, District of Arizona, Tucson and Trial Attorney Rebecca A. Staton of the Criminal Division’s Organized Crime and Gang Section.

 

CASE NUMBER:            CR-0184-TUC JGZ (LAB)

RELEASE NUMBER:    2017-110_Martinez_Lopez_etal

 

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Four members of an international fraud syndicate have been sentenced to federal prison for conspiracy to commit bank fraud and aggravated identity theft in connection with their scheme to manufacture and use fraudulent credit cards using the personally identifiable information of US-based individuals.

 

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Elizabeth A. Strange for the District of Arizona, and Special Agent in Charge Scott Brown of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Phoenix Field Office made the announcement.

 

According to admissions made in connection with their guilty pleas, the defendants participated in a conspiracy that bought stolen personally identifiable information, credit card account information, and other financial information over the Internet from individuals located in Ukraine, Tajikistan, and Russia, among other countries.  The stolen personally identifiable information and stolen credit card account information were then used to unlawfully manufacture fraudulent credit cards.

 

Participants in the fraud scheme traveled on multiple occasions from Mexico into the United States and used the fraudulent credit cards to purchase gift cards and high end merchandise, such as iPhones, laptop computers, and designer clothing, from retailers throughout Arizona and elsewhere in the United States.  After purchasing merchandise and gift cards, the co-conspirators transported the unlawfully purchased merchandise and gift cards to Mexico for future sale and profit for scheme participants.  The defendants admitted in their guilty pleas that they collectively possessed at least 5,684 fraudulent credit cards resulting in the loss of hundreds of thousands of dollars.

 

The defendants each pleaded guilty to conspiracy to commit bank fraud and aggravated identity theft.  Today, Rey Martinez-Lopez, 33, of Hermosillo, Sonora, Mexico, was sentenced to four years and six months in prison, to be followed by five years of supervised release by U.S. District Judge Rosemary Marquez of the District of Arizona. 

 

Judge Marquez sentenced the other three defendants to the following prison terms:

 

• On Sept. 29, Anwar Barragan Flores, 39, of Hermosillo, Sonora, Mexico, was sentenced to seven years in prison, to be followed by five years of supervised release.
• On Sept. 12, Jorge Williams-Araiza, 38, of Hermosillo, Sonora, Mexico, was sentenced to three years and two months in prison, to be followed by five years of supervised release.
• On Aug. 23, Javier Ramirez-Villegas, 36, of Hermosillo, Sonora, Mexico, was sentenced to four years in prison to be followed by five years of supervised release.  

 

The defendants’ restitution will be determined by the Court at a later hearing, which has not been scheduled yet.

 

HSI Nogales investigated the case.  Assistant U.S. Attorney Matthew G. Eltringham, Organized Crime and Drug Enforcement Task Force of the District of Arizona and Trial Attorney Rebecca A. Staton of the Criminal Division’s Organized Crime and Gang Section prosecuted the case.

PHOENIX  – On Oct. 30, 2017, Edward Susanyatame, 39, of Peach Springs, Ariz., and a member of the Hualapai Indian Tribe, was sentenced by U.S. District Judge David G. Campbell to 54 months’ imprisonment, followed by a term of three years of supervised release.  Susanyatame had previously pleaded guilty to assault with a dangerous weapon.

 

     On May 2, 2015, Susanyatame assaulted two victims with a deadly weapon, causing them to sustain serious bodily injury.  The victims are also members of the Hualapai Indian Tribe, and the assault occurred within the Hualapai Indian Reservation.       

 

     The investigation in this case was conducted by the Federal Bureau of Investigation and the Hualapai Nation Police Department. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.

 

CASE NUMBER:           CR-2016-8061-PCT-DGC

RELEASE NUMBER:    2017-108_Susanyatame

 

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PHOENIX – This week, Jared Mark Caros, 32, of Elizabethtown, Ky., was sentenced by U.S. Senior District Judge Neil V. Wake to ten months in prison with one year of supervised release to follow. Caros was previously found guilty after a jury trial in June. Then in September, Caros admitted his guilt in open court. In 2010, Caros made false statements in an application for a U.S. Passport. In that application, he falsely claimed the identity of a man from Payson, Ariz. The U.S. Department of State discovered Caros’s fraud in 2016 when the Payson man applied for a U.S. Passport. Caros, a U.S. citizen, was arrested by Diplomatic Security agents upon his return to the U.S. from service in a foreign military.

 

     The investigation in this case was conducted by the U.S. Department of State, Bureau of Diplomatic Security. The prosecution was handled by Brandon Brown and Jonathan R. Hornok, Assistant U.S. Attorneys, District of Arizona, Phoenix.

 

CASE NUMBER:            CR-16-984-PHX-NVW

RELEASE NUMBER:    2017-107_Caros

 

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PHOENIX– This week, Victoria Lynn Buckinghorse, 25, of Whippoorwill, Ariz., was sentenced by U.S. District Judge John J. Tuchi to 198 months’ imprisonment, followed by three years of supervised release.  Buckinghorse had previously pleaded guilty to discharging a firearm during a crime of violence and carjacking.  Additionally, Avram Cook, 30, of Pinon, Ariz., was sentenced to 130 months’ imprisonment, to be followed by three years of supervised release, after previously pleading guilty to brandishing a firearm during a crime of violence and assault with a dangerous weapon.

 

     On March 16, 2015, Buckinghorse and Cook assaulted the victim with a shotgun, resulting in the victim’s two fingers being amputated.

 

     On March 29, 2015, Buckinghorse and an unknown male pointed a shotgun at the victim and threatened to shoot her.

 

     On April 15, 2015, Buckinghorse and Cook blocked a road with their vehicle while Cook brandished and pointed a firearm at a family traveling to a family event. As the family was leaving, shots were fired at the vehicle.      

 

     Buckinghorse and Cook are enrolled members of the Navajo Nation, as well as the victims.   

 

     The investigation in this case was conducted by Navajo Nation Police Department and the Federal Bureau of Investigation. The prosecution was handled by Kiyoko Patterson, Assistant U.S. Attorney, District of Arizona, Phoenix.

 

CASE NUMBER:            CR-15-8206-PCT-JJT; CR-15-8237-PCT-JJT; CR-15-8065-PCT-JJT                              

RELEASE NUMBER:    2017-106_ Buckinghorse_Cook

 

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PHOENIX – Today, Enrique Xavier Bandin, 21, of Sacaton, Ariz., a member of the Gila River Indian Community (GRIC), was sentenced by U.S. District Judge Diane J. Humetewa to 15 years in prison.  Bandin had previously pleaded guilty to voluntary manslaughter.  A year ago, on Oct. 23, 2016, Bandin pistol-whipped the victim, also a GRIC member, in the head.  The gun discharged, shooting the victim in the head.  Bandin left the victim’s body on the side of the road in the center of Sacaton, Ariz., a half a mile from the local hospital.   

 

     The investigation in this case was conducted by the Gila River Police Department and the Arizona Department of Public Safety. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.

 

CASE NUMBER:            CR-16-01360-PHX-DJH

RELEASE NUMBER:    2017-105_Bandin

 

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PHOENIX – Acting U.S. Attorney Elizabeth A. Strange will join the DEA on Oct. 28, 2017, for its 14th National Prescription Drug Take Back Day.  The event will be held from 10 a.m. to 2 p.m. at thousands of collection sites around the country, including over 70 in Arizona.  The event is an effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs. The links provided below contain information about local location sites.

 

     “We are proud to support this great endeavor in partnership with the Drug Enforcement Administration,” said Acting U.S. Attorney Elizabeth A. Strange.  “The collection sites throughout Arizona will not only encourage drug disposal and support our smaller communities, but we hope this event will enhance an awareness of the opioid crisis and other prescription-drug problems affecting all of our communities.”

 

     “Every Arizonan can prevent the potential onset of addiction from within their own homes and impact the supply of excess prescription drugs diverted to the illicit drug market by participating in DEA’s National Prescription Drug Take Back,” said DEA Phoenix Special Agent in Charge Doug Coleman. “The DEA will continue to work with communities to curb the opioid epidemic and target the cartels profiting from the weakness of others, but we must begin with reducing the supply of excess prescription drugs.”  

 

     During the last Take Back event, Americans turned in 900,000 pounds of prescription drugs at almost 5,500 sites operated by the DEA and more than 4,200 of its state and local law enforcement partners.  Overall, during the 13 previous Take Back events, the DEA and its partners have taken in over 8.1 million pounds—more than 4,050 tons—of pills.  In Arizona alone, over 121,143 pounds, or approximately 60 tons have been collected.

      

     The disposal service is free and anonymous, no questions asked.  (The collection points cannot accept liquids, needles, or sharp objects, only pills or patches.)

 

     Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses.  Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet.  According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose.  Some painkiller abusers move on to heroin: Four out of five new heroin users started with painkillers.  Flushing medications down the toilet or throwing them in the trash pose potential safety and health hazards.  This initiative addresses the public safety and public health issues that surround medications languishing in home cabinets, becoming highly susceptible to diversion, misuse, and abuse.

 

     For more information or to locate a collection site near you, go to the DEA Prescription Drug Take Back Day web site at https://takebackday.dea.gov/#collection-locator or the U.S. Attorney’s Office, District of Arizona web page, http://www.justice.gov/usao/az/ where you can search by zip code, city, or state.

                

RELEASE NUMBER:    2017-104_DEA_TakeBack

 

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TUCSON – Today, Jose Abelordo Guzman-Perez, 21, a citizen of Mexico, was sentenced by Chief U.S. District Judge Raner C. Collins to 97 months in prison, followed by a term of three years of supervised release.  Guzman-Perez had previously pleaded guilty to conspiracy to possess with intent to distribute marijuana and carrying a firearm during a drug crime.

 

     On the night of Sept. 28-29, 2016, the Tucson Sector U.S. Border Patrol Tactical Unit (BORTAC) responded to the Roskruge Mountains northwest of Three Points, Ariz., after a camera captured two suspected unauthorized aliens, later identified as Lorenzo Antonio Infante-Ortiz and Jose Abelordo Guzman-Perez, carrying backpacks. Guzman-Perez was also seen carrying a Century Arms AK-47 7.62 mm rifle and Sig Sauer P220 .45-caliber pistol, and Infante-Ortiz was seen carrying a Springfield Armory AR-15 .223-caliber rifle and Smith & Wesson 9 mm pistol.  Air support units arrived and observed Infante-Ortiz and Guzman-Perez sleeping with the aforementioned rifles within arm’s reach of both of them, near a cliff with a 6-foot drop.

 

     BORTAC agents struggled for hours in the pitch dark, utilizing only night-vision, to get in place to apprehend the defendants. Once in place, agents announced their presence and attempted to take the defendants into custody. Infante-Ortiz attempted to flee but was detained after a brief struggle. Guzman-Perez reached for the AK-47 and was promptly tackled by an agent. Guzman-Perez was combative and violently fought, causing him and the agent to fall off the cliff. The fall caused the agent’s left shoulder to dislocate, but the agent held on to Guzman-Perez with his other arm while the defendant continued to push, kick, and punch him. Eventually, Guzman-Perez got away from the agent and fell several times as he attempted to run down the mountainside in the dark. Agents on containment duty were then able to close in and capture Guzman-Perez before he left containment. Infante-Ortiz previously pleaded guilty and was sentenced to 36 months’ imprisonment.

 

     The investigation in this case was conducted by the Homeland Security Investigations and BORTAC.  The prosecution was handled by Assistant U.S. Attorneys Lawrence Lee and Adam Rossi, District of Arizona, Tucson.

 

CASE NUMBER:           CR-16-01374-PHX-SPL

RELEASE NUMBER:    2017-102_Perez etal

 

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     PHOENIX - On Oct. 17, 2017, Carmela Marvelle Lopez, 28, of Sacaton, Ariz., and a member of the Gila River Indian Community, was sentenced by U.S. District Judge Steven P. Logan to 57 months in prison, followed by a term of three years of supervised release.  Lopez had previously pleaded guilty to possession with intent to distribute methamphetamine.

 

     Between Feb. 19, 2016 and March 9, 2016, Lopez sold methamphetamine to an undercover officer on three separate occasions.  Lopez conducted two of those methamphetamine sales at her former residence located on the Gila River Indian Community.

 

     The investigation in this case was conducted by the Bureau of Indian Affairs and the Gila River Police Department.  The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.

 

CASE NUMBER:           CR-16-01374-PHX-SPL

RELEASE NUMBER:    2017-100_Lopez

 

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PHOENIX – On Monday, Rowan James Kickinghorse Rhodes, 25, of Camp Verde, Ariz., was sentenced by U.S. District Judge David G. Campbell to 13 months’ imprisonment, to be followed by eight years of supervised release with sex offender conditions.  Rhodes had previously pleaded guilty to abusive sexual contact with a minor.  At the time he committed the offense, Rhodes was on supervised release for a previous conviction for assault with a dangerous weapon.  Judge Campbell revoked Rhodes’s supervised release and sentenced him to nine months’ imprisonment, to run concurrently with the newly imposed prison term.    

 

     In December 2016, Rhodes, an enrolled member of the Yavapai-Apache Nation, intentionally touched the minor victim, also an enrolled member.  The abuse occurred within the boundaries of the Yavapai-Apache Nation Reservation.

 

     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 Assistant U.S. Attorney Christina Covault, District of Arizona, Phoenix.

 

CASE NUMBER:           CR-17-8061-DGC/ CR-13-8055-DGC

RELEASE NUMBER:    2017-101_Rhodes

 

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     TUCSON, Ariz. – Last week, Michael Alvarez Martinez, 48, of Tucson, Ariz., a member of the Pascua Yaqui Tribe, was sentenced by Chief U.S. District Judge Raner C. Collins to 41 months in prison.  Martinez had previously pleaded guilty to one count of abusive sexual contact of a minor. The minor victim is also a member of the Pascua Yaqui Tribe. Martinez will be placed on lifetime federal supervision and be required to register as a sex offender for the rest of his life.

 

     The investigation in this case was conducted by both the Pascua Yaqui Police Department and the Federal Bureau of Investigation. The prosecution was handled by Charisse Arce and Rui Wang, Assistant U.S. Attorneys, District of Arizona, Tucson.

 

CASE NUMBER:                  CR-15-02282-TUC-RCC-BPV

RELEASE NUMBER:           2017-099_ Martinez

 

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PHOENIX – Yesterday, Marcurio Carlisle Tsosie, 34, of Chinle, Ariz., was sentenced by U.S. District Judge John J. Tuchi to 18.5 years’ imprisonment, to be followed by lifetime supervised release with sex offender conditions.  Tsosie had previously pleaded guilty to abusive sexual contact of a child.

 

     In November of 2016, the nine year-old victim, a member of the Navajo Nation, reported Tsosie’s sexual abuse to the victim’s mother.  Agents of the Federal Bureau of Investigation promptly began an investigation, which led to Tsosie’s arrest and prosecution.  Tsosie is also a member of the Navajo Nation, and the abuse occurred within the Navajo Nation Reservation.

 

     The investigation in this case was conducted by the Federal Bureau of Investigation.  The prosecution was handled by Assistant U.S. Attorneys William G. Voit and Sharon K. Sexton, District of Arizona, Phoenix.

 

CASE NUMBER:           CR-17-8045-JJT

RELEASE NUMBER:    2017-098_ Tsosie

 

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PHOENIX – Yesterday, Anthony James Kyyitan, 38, of Laveen, Ariz., was sentenced by U.S. District Judge David G. Campbell to 45 months in prison for recklessly handling a firearm on the Gila River Indian Community.  Kyyitan had previously pleaded guilty to disorderly conduct.    

 

     In imposing the sentence, Judge Campbell noted that Kyyitan was a prohibited possessor who had improperly possessed firearms on two occasions while living on the reservation.  Kyyitan is an enrolled member 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 D. Keller, Assistant U.S. Attorney, District of Arizona, Phoenix.

 

 CASE NUMBER:           CR-17-00161-PHX-DGC 

RELEASE NUMBER:    2017-097_Kyyitan

 

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PHOENIX – Yesterday, Bart James Ellis, 44, of Scottsdale, Ariz., was sentenced by U.S. District Judge Douglas L. Rayes to 24 months in prison and ordered to pay more than $900,000 in restitution. Ellis had previously pleaded guilty to money laundering.

 

     “Investment fraud is especially problematic when criminals target retirees. The United States Attorney’s Office takes this kind of criminal conduct very seriously and will continue to aggressively prosecute financial frauds,” stated Acting U.S. Attorney Elizabeth A. Strange.

 

     “The defendant misled his clients and stole their hard earned money,” stated IRS-Criminal Investigation Special Agent in Charge Ismael Nevarez Jr. “IRS-CI will continue to protect the public by investigating individuals who defraud their investor clients.”

 

     From 2012 through 2015, Ellis, a former financial advisor, solicited more than $1.1 million from former clients, several of whom were elderly, by claiming that the funds would be used to purchase low-risk investments, but instead he used approximately $400,000 on personal expenses and lost approximately $700,000 on risky stock trades in his online brokerage account. Ellis also attempted to conceal his fraudulent scheme by falsifying investment statements.

 

     The investigation of this case was conducted by the Internal Revenue Service-Criminal Investigation. The prosecution was handled by Mark S. Kokanovich, Assistant U.S. Attorney, District of Arizona, Phoenix.

 

CASE NUMBER:           CR-17-00299-DLR        

RELEASE NUMBER:    2017-096_Ellis

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PHOENIX – Last week, U.S. District Judge Steven Logan sentenced Vestah Tikium to 33 months in federal prison, followed by three years of supervised release.  Tikium’s son, Terdell Dawes, was sentenced to 24 months in federal prison, while her other son, Terrell Dawes, was sentenced to 18 months in federal prison.  Tikium and her sons also were ordered to pay more than $3 million in restitution.  All three had previously pleaded guilty to conspiracy to commit health care fraud.  All defendants are members of the Navajo Nation. 

 

     Tikium and her sons falsely billed Arizona’s Health Care Cost Containment System (AHCCCS) for tens of thousands of medical transports that never occurred, generating more than $3 million in fraudulent payments from AHCCCS.  AHCCCS is Arizona’s Medicaid agency that offers health care programs to low-income Arizona residents.  Tikium and her sons owned and operated Diné Transport, which purported to provide non-emergency medical transportation for AHCCCS recipients on the Navajo reservation.  Approximately 95% of the claims submitted by Diné Transport between March 2013 and July 2013 were false.          

 

     “Health care fraud is a prevalent problem that causes higher health care costs and increased taxes for everyone,” stated Acting U.S. Attorney Elizabeth A. Strange.  “Our office will continue to work with our law enforcement partners to target those who perpetuate health care fraud, and we will prosecute them to the full extent of the law.”

 

     “The FBI views health care fraud as a serious crime problem,” said FBI Special Agent in Charge Michael DeLeon. “It degrades the integrity of our health care system and legitimate patient care. The sentences handed down on these individuals sends a clear message to those persons who are defrauding our health insurance programs. The FBI remains committed to investigating health care fraud and bringing these individuals to justice. The FBI will continue to work aggressively with our law enforcement partners to investigate those who violate the public trust by cheating the medical insurance system.”

 

     In the last year, five other individuals have been convicted and sentenced for perpetrating similar frauds to falsely bill AHCCCS for non-emergency medical transports that purportedly occurred on the Navajo Reservation:

 

• In November 2016, Sylvia Begay was sentenced to 28 months in federal prison and ordered to pay more than $2.1 million in restitution (CR-15-08252);
• Also in November 2016, Virgil Begay was sentenced to 21 months in federal prison and ordered to pay more than $1.3 million in restitution (CR-15-08252);
• In March 2017, Natasha Begaye was sentenced to probation and ordered to pay approximately $380,000 in restitution (CR-15-08250);
• Also in March 2017, Cortasha Upshaw was sentenced to probation and ordered to pay approximately $245,000 in restitution (CR-15-08251); and
• In April 2017, Elseddig Musa was sentenced to 57 months in federal prison and ordered to pay more than $1.2 million in restitution (CR-15-01265).

 

     The investigation in this case was conducted by the Federal Bureau of Investigation and AHCCCS Office of Inspector General.  The Navajo Nation Police Department also assisted in the investigation.  The prosecution was handled by Bridget Minder and Peter Sexton, Assistant U.S. Attorneys, District of Arizona, Phoenix.

 

CASE NUMBER:           CR-17-08096                  

RELEASE NUMBER:    2017-095_Tikium

 

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TUCSON, Ariz. – Yesterday, Matthew Demond Lyons, 23, of Sierra Vista, Ariz., was sentenced by U.S. District Judge Rosemary Marquez to 10 years' imprisonment to be followed by 20 years of supervised release.  Lyons previously pleaded guilty to attempted transportation of a minor with intent to engage in prostitution or any criminal sexual activity, aiding and abetting.  He will be required to register as a sex offender and abide by sex offender terms as part of his supervision once released from prison.  

 

     In January 2016, Lyons attempted via electronic communications to induce a 16-year-old girl to travel to Arizona from Minnesota.  Lyons instructed the minor to send him nude photographs of herself and to refer to him as “daddy” and stated that he would provide her with food, drugs, and shelter.  Lyons also purchased a bus ticket so she could travel to Arizona.  She boarded the bus in Minnesota and was enroute to Arizona before law enforcement located her. 

 

     The investigation in this case was conducted by the Federal Bureau of Investigation, Sierra Vista Police Department, Eden Prairie Police Department (Eden Prairie, Minnesota), and the Cochise County Attorney’s Office.  The prosecution was handled by Raquel Arellano and Karen Rolley, Assistant U.S. Attorneys, District of Arizona, Tucson

 

CASE NUMBER:            CR- 17-00160-TUC-RM

RELEASE NUMBER:    2017-094_Lyons

 

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PHOENIX – Yesterday, Clifford Earl Jordan, 43, of Phoenix, Ariz., was sentenced by U.S. District Judge Steven P. Logan to 87 months in prison for illegally possessing a firearm on the Navajo Nation Indian Reservation.  Jordan had previously pleaded guilty to felon in possession of a firearm.    

 

     In justifying the increased sentence, Judge Logan noted that Jordan possessed the firearm in connection with a domestic assault against a member of the Navajo Nation Indian Reservation, and he engaged in witness tampering activities designed to cause that victim to recant.    

 

     The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Christine D. Keller and Anthony Church, Assistant U.S. Attorneys, District of Arizona, Phoenix.

 

 CASE NUMBER:            CR-16-08155-PCT-SPL 

RELEASE NUMBER:    2017-093_Jordan

 

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PHOENIX – Today, Elan Nash, 30, of Keams Canyon, Ariz., was sentenced by U.S. District Judge Steven P. Logan to 29 months’ imprisonment, in addition to 8 months’ imprisonment previously served on a related case in the Hopi Tribal Court.  Nash had previously pleaded guilty to assault resulting in serious bodily injury.

 

     On June 30, 2016, an officer with the Bureau of Indian Affairs – Office of Justice Services (Hopi Agency) observed Nash to be intoxicated and, after speaking with him, attempted to place Nash under arrest for public intoxication.  Nash resisted arrest and assaulted the officer.  In doing so, he seriously injured the officer’s hand. Nash is a member of the Hopi tribe and the assault occurred within the Hopi Reservation.

 

     The investigation in this case was conducted by the Federal Bureau of Investigation.  The prosecution was handled by Assistant U.S. Attorney Alexander Samuels, District of Arizona, Phoenix.

 

CASE NUMBER:           CR-17-8002-PCT-SPL

RELEASE NUMBER:    2017-092_Nash

 

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PHOENIX – On Sept. 19, 2017, Hale Nahsonhoya, 22, of Mesa, Ariz., and a member of the Salt River Pima-Maricopa Indian Community, was sentenced by U.S. District Judge G. Murray Snow to 250 months in prison (20 years and 10 months) followed by five years of supervised release.  Nahsonhoya had previously pleaded guilty to second degree murder and aggravated assault.

 

     The case involved Nahsonhoya driving his vehicle with extreme, reckless disregard for human life, causing a multi-vehicle crash.  As a result of Nahsonhoya’s actions, one man, who was driving his car to church band practice, was killed instantly.  A woman in a third vehicle was seriously injured, hospitalized, and suffered long-term injuries.   

 

     This incident happened on a busy intersection on the Salt River Indian Reservation, McKellips and Longmore Roads in Scottsdale, Ariz.  At approximately 4:45 p.m., in rush hour traffic, Nahsonhoya was driving his vehicle with his juvenile brother as a passenger.  Nahsonhoya had a blood alcohol content of over .215.  He was driving in excess of 85 MPH in a 35 MPH zone.  Just before the crash, Nahsonhoya sped his vehicle to ignore and race through a stop sign.  He did not attempt to stop his vehicle even seconds prior to impact. 

 

     The wife of the deceased victim came to court and paid tribute to her husband of 30 years, highlighting for Judge Snow her husband’s kind-hearted, selfless, and loving life.  She explained to Judge Snow the devastation caused by her husband’s death. 

  

     The investigation in this case was conducted by the Salt River Police Department.  The prosecution was handled by Heather Sechrist and Sharon K. Sexton, Assistant U.S. Attorneys, District of Arizona, Phoenix.

 

CASE NUMBER:            CR-17-0047-PHX-GMS 

RELEASE NUMBER:    2017-091_ Nahsonhoya

 

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PHOENIX – On Sept. 19, 2017, Gabriel Michael Alvarez, 25, of Sacaton, Ariz., a member of the Gila River Indian Community, was sentenced by U.S. District Judge G. Murray Snow to 262 months in prison.  Alvarez had previously pleaded guilty to second-degree murder.  Also sentenced was Roger Matthew James, of Chandler Heights, Ariz., 27, also a member of the Gila River Indian Community, to 15 years in prison for discharge of a firearm during a crime of violence, after previously pleading guilty.  

                

     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, Assistant U.S. Attorney, District of Arizona, Phoenix.

 

CASE NUMBER:           CR-17-00041-PHX-GMS

RELEASE NUMBER:    2017-090_Alvarez etal

 

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PHOENIX – Tavis Tso, 40, of Tempe, Ariz., a member of the Navajo Nation, was sentenced yesterday by U.S. District Judge David G. Campbell to four years of federal probation. Tso was also ordered to pay $9,145 in restitution to the victim of his crime. Tso had previously pleaded guilty to one count of wire fraud.

 

     According to documents filed in this case and statements made in court, Tso provided information technology (“IT”) services for a company located in Phoenix, Ariz. Tso subsequently used the company’s account information to make changes to the company’s website. These changes prevented the company’s employees from using their email accounts and redirected the company’s homepage to a blank page. Tso then offered to return everything to normal for $10,000. When the company refused to pay the requested amount, Tso redirected the company’s homepage to a pornographic website. Visitors to the company’s website were redirected to the pornographic website for several days before the website was returned to normal.

 

     The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Matthew Binford and James R. Knapp, Assistant U.S. Attorneys, District of Arizona, Phoenix.

 

CASE NUMBER: CR-16-1502-PHX-DGC

RELEASE NUMBER: 2017-089_Tso

 

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TUCSON, Ariz. – This week, Richard Corrie Beals, 72, of Tucson, Ariz., was sentenced by U.S. District Judge Jennifer G. Zipps to 13 months and one day in prison and a $5,000 fine. Beals was convicted after a jury trial of two counts of transmitting a communication containing a threat to kidnap or injure.

 

     The evidence at trial demonstrated that Beals sent multiple threatening and harassing communications, over an extended period of time, to various federal officials and private citizens in Salt Lake City, Utah. The evidence further demonstrated that many of Beals’s threats were directed at members of the Church of Jesus Christ of Latter-day Saints.

 

     Upon release from prison, Beals will be on supervised release for three years. The terms of his supervision include no contact with the victims and a “stay-away” order from any Mormon facilities and temples.

 

     The investigation in this case was conducted by the Salt Lake City Office of the Federal Bureau of Investigation. The prosecution was handled by the United States Attorney’s Office, District of Arizona, Tucson.

 

CASE NUMBER: CR-16-01663-TUC-JGZ

RELEASE NUMBER: 2017-088_Beals

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PHOENIX – The United States Attorney’s Office will implement an online messaging campaign in September during National Suicide Prevention Awareness Month to highlight the importance of law enforcement wellness and suicide prevention. According to Badge of Life, more officers die of suicide than from gunfire and traffic accidents combined. The Police Suicide Study estimates that an average of 130 law enforcement suicides occur per year.

 

     Acting United States Attorney Elizabeth A. Strange said, “Law enforcement officers often encounter dangerous and stressful situations that cause psychological distress. We should take the time to honor our law enforcement partners for their selfless acts of courage and encourage them to take care of their emotional and psychological well-being.”

 

     During September, the U.S. Attorney’s Office will disseminate specific messages via social media using the hashtag #OfficerWellness.

 

 

RELEASE NUMBER: 2017-087_LEA WELLNESS

 

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TUCSON, Ariz. – Yesterday, Jose Ramon Flores-Villareal, 29, a citizen of Mexico, was sentenced by Senior U.S. District Judge David C. Bury to 37 months of imprisonment. Flores-Villareal previously pleaded guilty to acting as a scout in a narcotics smuggling conspiracy and assault on a federal officer.

 

     For several weeks prior to Flores-Villareal’s arrest, members of the U.S. Border Patrol Casa Grande Station’s specially-trained Mountain Team conducted anti-scout operations on the Tohono O’odham Indian Nation. Scouts in this area are hired by Drug Trafficking Organizations to reside for an extended period of time atop mountains and hills in order to help marijuana backpackers evade law enforcement. On March 1, 2017, team members observed Flores-Villareal and other scouts utilizing radios to communicate with guides of marijuana backpackers on the desert floor. Air support units arrived, and Flores-Villareal hid himself near a cliff with a 15 to 20-foot drop. An agent located Flores-Villareal, who refused to comply with commands, and Flores-Villareal attempted to strike the agent. Flores-Villareal also grabbed the agent’s radio from his duty belt, keying his radio, thereby preventing him from calling for help. During the course of the struggle, the agent was pushed close to the nearby cliff drop-off. Agents were able to find and assist the other agent and take Flores-Villareal into custody.

 

     The investigation in this case was conducted by Homeland Security Investigations’ NATIVE Task Force and the U.S. Border Patrol Casa Grande Station. The prosecution was handled by Assistant U.S. Attorneys Adam Rossi and Susanna Martinez, District of Arizona, Tucson.

 

CASE NUMBER: CR-00509-JGZ-BPV

RELEASE NUMBER: 2017-086_ Flores-Villareal

 

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PHOENIX – This week, Eli Sloan, 45, of Kayenta, Ariz., was sentenced by U.S. District Judge Douglas L. Rayes to 330 months of imprisonment, to be followed by a lifetime term of supervised release. Last year, Sloan was convicted of six offenses following a jury trial, including kidnapping, two counts of aggravated sexual abuse, assault with intent to commit aggravated sexual abuse, assault resulting in substantial bodily injury to an intimate partner, and assault by strangling an intimate partner.

 

     On Oct. 4, 2015, Sloan kidnapped the victim and held her overnight in a rural area near Kayenta, Ariz. Eventually, he took her to a trailer, where he held her until the next day. Both Sloan and the victim are members of the Navajo Nation.

 

     The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Department of Public Safety. The prosecution was handled by Assistant U.S. Attorneys Alexander Samuels and Sharon Sexton, District of Arizona, Phoenix.

 

CASE NUMBER: CR-15-8232-PCT-DLR

RELEASE NUMBER: 2017-085_Sloan

 

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PHOENIX – Yesterday, Webster Wayne Norris, IV, 27, of Sacaton, Ariz., was sentenced by U.S. District Judge Douglas L. Rayes to 41 months in prison for two separate domestic violence offenses occurring on the Gila River Indian Community. Specifically, Norris was sentenced to 41 months’ imprisonment for assault by strangulation of a domestic partner, and a concurrent 41-month term for assault resulting in serious bodily injury. Norris previously pleaded guilty to both crimes. Upon release from prison, Norris will be on supervised release for three years.

 

     In early 2016, Norris strangled the victim in their home. In April 2016, Norris again assaulted the victim, causing serious injury to the victim’s arm. Both Norris and the victim are 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 D. Keller, Assistant U.S. Attorney, District of Arizona, Phoenix.

 

 

CASE NUMBER: CR-16-1131-PHX-DLR

RELEASE NUMBER: 2017-083_Norris

 

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PHOENIX – Yesterday, Shana Raelisa Johnson, 35, of Atlanta, Georgia, was sentenced by U.S. District Judge John J. Tuchi to 44 months in prison and ordered to pay more than $2 million in restitution. Johnson had previously pleaded guilty to wire fraud.

 

     From 2008 through 2014, Johnson worked as an accountant at a property management company based in Phoenix, Arizona. During that time, she stole more than $2.4 million from her employer by issuing fraudulent checks and making unauthorized electronic transfers from her employer’s bank accounts. After the Phoenix-based company discovered her theft, Johnson moved to Atlanta, Georgia and applied for a similar accountant position at another property management company. Johnson gave a fictitious reference and other false information during the hiring process to prevent her new employer from contacting the Phoenix employer and discovering her fraud. Upon being hired in early 2015, Johnson proceeded to steal almost $500,000 from her new, Atlanta-based employer. Johnson concealed her embezzlement from both companies by falsifying bank statements and other financial records.

 

     “Employee embezzlement is a growing problem that presents a significant threat to local businesses. The United States Attorney’s Office takes this kind of criminal conduct very seriously and will continue to aggressively prosecute financial frauds,” stated Acting U.S. Attorney Elizabeth A. Strange.

 

     “All businesses, whether large or small, can be the victims of deceitful employees,” stated IRS-Criminal Investigation Special Agent in Charge Ismael Nevarez Jr. “This investigation underscores IRS-CI’s expertise in conducting complex financial investigations."

 

     The investigation in this case was conducted by the Federal Housing Finance Agency’s Office of Inspector General and the Internal Revenue Service-Criminal Investigation. The prosecution was handled by M. Bridget Minder and Andrew Stone, Assistant U.S. Attorneys, District of Arizona, Phoenix.

 

 

CASE NUMBER: CR-17-00183-JJT

RELEASE NUMBER: 2017-084_Johnson

 

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PHOENIX – Yesterday, Senior U.S. District Judge Neil V. Wake sentenced Daphne Iatridis and her husband, Arthur Telles, both 59, to 30 months in prison and ordered the couple to forfeit 26 fraudulently purchased properties to the United States. Both had previously pleaded guilty to conspiracy to commit mail and wire fraud and tax evasion. The couple’s sons, Brendyn Iatridis and Spenser Iatridis, also pleaded guilty to related crimes and were sentenced to 10 months in prison and probation, respectively.

 

     Between 2008 and 2012, the defendants engaged in an elaborate scheme to obtain more than 30 houses from the Federal National Mortgage Association (“FNMA”). Among other things, they stole others’ identities, used bogus trusts to buy the properties, and fraudulently notarized documents to facilitate the improper purchases. In addition, from at least 2010 through 2015, the defendants failed to pay taxes on their rental income from the fraudulently purchased properties.

 

     “Real estate professionals who lie and forge documents are a scourge to the industry,” stated Acting U.S. Attorney Elizabeth A. Strange. “Our office places a high priority on investigating and prosecuting real estate fraud, and we hope that the lengthy sentences imposed in this case will send a strong message that this type of dishonesty and misconduct will be punished severely.”

 

     "This case epitomized the greed that erodes confidence in the Realtor/Mortgage industry," said Michael DeLeon, Special Agent in Charge of the FBI Phoenix Division. "I am pleased the defendants are now being held accountable for their crimes and that the majority of the fraudulently obtained properties will be forfeited."

 

     The investigation in this case was conducted by the Federal Housing Finance Agency’s Office of Inspector General, the Internal Revenue Service-Criminal Investigation, and the Federal Bureau of Investigation. The prosecution was handled by Kevin M. Rapp and M. Bridget Minder, Assistant U.S. Attorneys, District of Arizona, Phoenix.

 

 

CASE NUMBER: 15-CR-01062-PHX-NVW

RELEASE NUMBER: 2017-082_ Iatridis etal

 

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     PHOENIX – Last week, John David Veatch, 47, of Gilbert, Ariz., was sentenced by U.S. Senior District Judge Roslyn O. Silver to 30 months in prison and ordered to pay restitution in the amount of $710,290. Veatch had previously pleaded guilty to one count of wire fraud.

 

     Between January 2011 and June 2013, Veatch embezzled over $710,000 from his then-employer. Veatch embezzled the money through a scheme of ordering fictitious parts and then funneling the money to a third-party company he created and controlled.

 

     The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Andrew C. Stone, Assistant U.S. Attorney, District of Arizona, Phoenix.

 

CASE NUMBER: CR-16-01237-PHX-ROS

RELEASE NUMBER: 2017-080_Veatch

 

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TUCSON, Ariz. – Yesterday, Richard Ortega Elenes, Jr., 41, of Tucson, Ariz., was sentenced by U.S. District Judge Jennifer G. Zipps to 64 months in prison. Elenes had previously pleaded guilty to attempted bank robbery.

 

     On June 29, 2015, Elenes entered a Wells Fargo Bank in Tucson, Ariz., and handed a note to a bank teller which stated: “I need all of your money now.” The teller pressed an alarm button and announced that she was being robbed. Elenes then walked out of the bank and entered a waiting taxicab. He was captured by police within 30 minutes.

 

     The investigation in this case was conducted by the Tucson Police Department and the Federal Bureau of Investigation. The prosecution was handled by Raquel Arellano, Assistant U.S. Attorney, District of Arizona, Tucson.

 

CASE NUMBER: CR-15-01971-TUC-JGZ

RELEASE NUMBER: 2017-081_Elenes

 

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PHOENIX – Today, Xavier Justice Hamidreek, 24, of Supai, Ariz., was sentenced by U.S. Senior District Judge Roslyn O. Silver to 24 months in prison for sexually abusing an underage victim on the Havasupai Indian Reservation. Hamidreek was also sentenced to a 24-month concurrent term for possessing marijuana with intent to distribute it on the reservation. Upon release from prison, Hamidreek will be on supervised release for 20 years and will be required to register as a sex offender for the rest of his life.

 

     Both Hamidreek and the underage victim are members of the Havasupai Indian Reservation.

 

     The investigation in this case was conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs. The prosecution was handled by Christine D. Keller, Assistant U.S. Attorneys, District of Arizona, Phoenix.

 

CASE NUMBER: CR-16-08169-PCT-ROS

RELEASE NUMBER: 2017-079_Hamidreek

 

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