District of Arizona

PHOENIX – Espiridion Adrian Lugo, 40, of Pittsburgh, Pa., was sentenced by U.S. District Judge Neil V. Wake on Jan. 14, 2013, to 54 months of prison and was ordered to pay $128,388 in restitution.  Lugo had pled guilty to conspiring to defraud the United States and aggravated identity theft on Oct. 10, 2012.

                 Between July 2008 and May 2009, Lugo engaged in a scheme to obtain monies from the United States through the submission of fraudulent tax returns.  Lugo submitted nearly three dozen Federal tax returns to the United States in the names of deceased persons from California.  For each of these tax returns, Lugo falsified the deceased individuals' wages, address, income tax withholdings, dependents, tax credits, and other deductions, in order to maximize the tax refund. To conceal his activity from law enforcement, Lugo created a shell company called Uncle Sam’s Tax Service in Buckeye, Ariz. and obtained bank accounts under that business name.

                 “Because tax fraud undermines the integrity of our income tax system and therefore impacts all of us as taxpayers, our office places a high priority on the investigation and prosecution of this type of crime,” said U.S. Attorney Leonardo.
“A 54 month prison sentence reflects the egregiousness of this crime.  Mr. Lugo went to great lengths to perpetrate his scheme which included stealing the identities of deceased taxpayers.  IRS Criminal Investigation, both nationwide and here in Arizona, has made investigating identify theft cases our top priority,” stated Gabriel Grchan, Acting Special Agent in Charge, IRS-CI.
In total, Lugo falsely claimed over $279,000 in refund payments and gained access to approximately $128,388 of the refunds.

The investigation in this case was conducted by the United States Internal Revenue Service.  The prosecution was handled by Raymond K. Woo and Joseph Koehler, Assistant U.S. Attorneys, District of Arizona, Phoenix.

CASE NUMBER:            CR-12-0008-PHX-NVW
RELEASE NUMBER:     2013-004_Lugo

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

PHOENIX – On Jan. 14, 2012, Duane Kenny Parker, 25, of Peach Springs, Ariz., was sentenced by U.S. District Judge David G. Campbell to 70 months in prison, followed by three years of supervised release. Parker, a member of the Hualapai Nation Indian Tribe, pleaded guilty on October 15, 2012 to assault with a dangerous weapon. 

According to court records, Parker assaulted a Hualapai Nation police officer by striking the officer with a glass bottle after he responded to a domestic violence call. After the bottle broke, Parker swung the bottle at the officer a second time striking him in the neck area.  As a result of the assault, the victim sustained serious bodily injuries including a concussion. 

The investigation in this case was conducted by 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-12-8068-PCT-DGC  
RELEASE NUMBER:     2013-003_Parker

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

PHOENIX, Ariz. – On Jan. 14, 2013, Domingo Agustin-Simon, 31, and Leonardo Rabanales-Casia, 30, both of Guatemala, were sentenced by U.S. District Judge David G. Campbell for their roles in a Mesa-based hostage taking.  Agustin-Simon was sentenced to 35 years in prison for the hostage taking and conspiracy to commit hostage taking.  He was sentenced to an additional consecutive term of seven years for brandishing a shotgun in connection with the hostage taking.  Rabanales-Casia was sentenced to 25 years in prison for the hostage taking and conspiracy to commit hostage taking. Both men had previously been found guilty of those charges by a federal jury.

U.S. Attorney John S. Leonardo stated that, "These lengthy sentences serve to not only punish and deter such cruel and inhumane activity but also to protect the public from dangerous individuals that prey upon the vulnerabilities of their victims."

“This case illustrates the ruthlessness and brutality of the human smuggling trade,” said Matt Allen, special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Arizona. “These smugglers treated the people in the drop house as a mere business commodity, with no qualms about jeopardizing human life in order to extort personal profit.   Investigating these cases is a top priority for HSI, and we will continue to work with our law enforcement partners to bring those who would choose to exploit people in this despicable way to justice. ”

Evidence at trial was that defendants were part of an alien smuggling operation responsible for crossing illegal aliens into the United States and harboring them at a drop house in Mesa.  On Aug. 10, 2011, an IIMPACT task force comprised of law enforcement from U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations, Arizona Department of Public Safety and Phoenix Police Department raided the drop house and found more than 40 illegal aliens inside.  Testimony at trial revealed that the smugglers threatened the aliens with physical harm and death and told family members that the aliens would be harmed or killed if payments were not made.  One hostage was beaten by the smugglers, the women were subject to sexual molestation and the evidence presented showed that one of the women was raped by Agustin-Simon.  The smugglers used a shotgun to keep order in the drop house.    

The following four co-defendants previously pleaded guilty in connection with their roles at the drop house and were sentenced to prison terms ranging from 24 months to 8 years: Sergio Rivera-Jimenez, 34; Jose Luis Garcia-Ortega, 22; Santos Bautista-Juan, 34; and Walmar Rocael Morales-Tomas, 19.  

The investigation in this case was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations. The prosecution was handled by Christine D. Keller and Sean K. Lokey, Assistant U.S. Attorneys, District of Arizona, Phoenix.

CASE NUMBER:            CR-11-01622-PHX-DGC 
RELEASE NUMBER:     2013-002_ Agustin-Simon_etal

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

PHOENIX – On Jan. 7, 2013, Martin Oliver Pablo Sr., 22, of Sacaton, Ariz., and a member of the Gila River Indian Community, was sentenced by U.S. District Judge David G. Campbell to 189 months in prison. Pablo pleaded guilty on Oct. 2, 2012, to second-degree murder.

In April 2012, Pablo shot and killed a 19-year-old man at a family gathering following an argument.  Pablo, who had been drinking, fired a single shot to the victim’s chest. The victim later died as a result.

The investigation in this case was conducted by the Federal Bureau of Investigation and the Gila River Police Department.  The prosecution was handled by Jennifer E. Green, Assistant U.S. Attorney, District of Arizona, Phoenix.

CASE NUMBER:            CR-12-811-PHX-DGC   
RELEASE NUMBER:     2013-001_Pablo

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

SEARCH THE SITE   August 16, 2011

PHOENIX – Two people have been charged in a 26-count indictment with 15 counts of mail fraud, 10 counts of wire fraud and one count of conspiracy in connection with a fraud scheme involving an Arizona business entity known as The Results Group (TRG). Edward Longoria, 41 of Laguna Beach, Calif., and Amber Halvorson, 34, of Phoenix, self-surrendered to the U.S. Marshals Service on August 12, 2011.

According to the indictment, between June 2004 and November 2006, Longoria and Halvorson owned and operated TRG, through which they deceptively sold Internet-based business opportunities to victims throughout the United States. Victims paid TRG between $99 and $599 to design and build websites "affiliated" with online retail companies such as amazon.com, overstock.com and gambling-related websites. Victims were told they would receive commissions from the retailers when consumers purchased products through the victims' website.

The indictment alleges that the defendants misrepresented to victims they were likely to earn a substantial income, in some instances upwards of $50,000 per month, with little risk. Victims were also promised assistance from TRG "marketing coaches" and a money-back, satisfaction guarantee. Additionally, TRG contacted victims after the initial sale of the website, soliciting $1,000 to $10,000 for fraudulent advertising programs. Victims were led to believe that purchasing the advertisement would make their businesses more profitable. It is estimated that there are several thousand victims with losses exceeding $20 million.

Each wire and mail fraud count carries a potential sentence of 30 years in prison, because this case involves allegations of telemarketing fraud, and a potential fine of $250,000. The maximum penalty for the conspiracy count is five years and a $250,000 fine.

Potential victims of this scheme may track the progress of the case by visiting the following link located on the U.S. Attorney for the District of Arizona's website: http://www.justice.gov/usao/az/us_v_longoria_etal.html. Potential victims may also leave a voice message at 602-514-7679; calls will be returned by a victim witness specialist in the order in which they are received.

An indictment 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 preceding the indictment was conducted the U.S. Postal Inspection Service. The prosecution is being handled by Peter Sexton and Dominic Lanza, Assistant U.S. Attorneys, District of Arizona, Phoenix.

CASE NUMBER: CR-11-1565-PHX (DGC)
RELEASE NUMBER: 2011-178(Longoria et al)

       

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