District of Arizona
Press releases recorded for this federal judicial district.
United States Attorney Announces Election Officer for the District of ArizonaRead the Press Release
PHOENIX, Ariz. – United States Attorney Gary M. Restaino announced today that Assistant United States Attorney (AUSA) Sean Lokey will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 5, 2024, general election. AUSA Lokey has been appointed to serve as the District Election Officer for the District of Arizona, and in that capacity is responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington. Lokey has served in this role since the 2020 election cycle.
United States Attorney Restaino stated: “It takes a village to ensure that every eligible voter can cast a ballot easily and efficiently, without interference or discrimination, and with confidence their vote will be counted. This Office and our federal partners have worked collaboratively with Arizona state and local law enforcement, state and local elections officials, and other first responders of democracy like All Voting is Local, the Arizona State Bar and the Arizona Prosecuting Attorney’s Advisory Council, preparing for a smooth and safe election. We thank the many civic leaders who have sat with us in educational panels, tabletop exercises, and security discussions.”
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
“Democracy demands action to protect voters’ rights, and to disrupt the efforts of those individuals and entities who seek to deny those rights,” said U.S. Attorney Restaino. “In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Lokey will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number: 602-514-7516.”
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public by phone at 623-466-1999 or online at https://tips.fbi.gov/.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, D.C. by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/.
“Ensuring free and fair elections takes a commitment from all Americans,” noted United States Attorney Restaino. “It is important that those who have knowledge about barriers to voting rights or of specific instances of fraud by individual voters make that information available to the Department of Justice.”
Please note, however, that in the case of a crime of violence or intimidation, you should call 911 immediately before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
RELEASE NUMBER: 2024-139_Arizona-General-Election
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Mother and Son Sentenced for Illegally Importing Endangered WildlifeRead the Press Release
PHOENIX, Ariz. – Raymond Anthony Rabago Montoya, 23, of Phoenix, was sentenced on October 2, 2024, by United States District Judge Dominic W. Lanza to 12 months and one day in prison, followed by three years of supervised release. He also was ordered to pay $3,000 to the Cooperative Endangered Species Conservation Fund. His co-defendant and mother, Griselda Guadalupe Montoya-Gastelum, 50, of Sonora, Mexico, was previously sentenced by Judge Lanza on July 8, 2024, to 18 months in prison, followed by three years of supervised release. Montoya-Gastelum pleaded guilty to Conspiracy to Violate the Lacey Act on April 25, 2024, and Rabago Montoya pleaded guilty to the same offense on April 26, 2024.
Defendants coordinated the illegal importation of exotic and protected wildlife from Mexico, including tigers, panthers, monkeys, and exotic parrots, into the United States, concealed through ports of entry, for financial gain. U.S. Fish and Wildlife Service began investigating the defendants in August 2022 after receiving a report from a person who believed that the four exotic parrots they had purchased from Rabago Montoya had been illegally imported. This report and further investigation led to the January 2023 execution of a search warrant at the home of Carlos Castro, where a tiger cub, an alligator, 12 snapping turtles, 6 tortoises, and boxes of other reptiles were found. Snapchat messages revealed that Montoya-Gastelum and Castro discussed illegal exotic animal sales and trades. Castro was subsequently convicted of Unlawful Sale of Wildlife in the Arizona Superior Court, Maricopa County.
After federal agents observed advertisements for the sale of spider monkeys on Facebook, they conducted two undercover purchases of monkeys from the defendants for $6,000 each, one in April and one in May 2023. In June and August 2023, Rabago Montoya was encountered by law enforcement with dozens of endangered parrots concealed in his vehicle, many of which were deceased. Defendants were indicted on September 12, 2023, and arrested the following day.
“Once again we see Arizonans profiting from the concealment of contraband through the Nogales and Lukeville Ports of Entry,” said United States Attorney Gary Restaino. “Here, in lieu of controlled substances we have mistreated protected animals: and the sentences imposed send strong messages both of deterrence and of the importance of robust environmental protections.”
“Wildlife trafficking is illegal and immoral, as countless animals that are taken from the wild are smuggled across borders in inhumane conditions,” said Edward Grace, Assistant Director of the U.S. Fish and Wildlife Service Office of Law Enforcement. “In the case of spider monkeys, many trafficked animals perish due to inadequate care, while those that survive face a life of captivity. We hope this case emphasizes that the U.S. Fish and Wildlife Service and our partners will continue to ensure that those engaged in wildlife trafficking are brought to justice.”
U.S. Fish and Wildlife Service, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, Customs and Border Protection’s U.S. Border Patrol, and the Pinal County Sheriff’s Office conducted the investigation in this case. Assistant U.S. Attorneys Stuart Zander and Lisa Jennis, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-23-01305-PHX-DWL
RELEASE NUMBER: 2024-138_Montoya et al.# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.United States Attorney’s Office Releases 2024 Third Quarter Immigration Enforcement StatisticsRead the Press Release
PHOENIX, Ariz. – Today, the United States Attorney’s Office announced its immigration enforcement statistics for July 1, 2024, to September 30, 2024. These cases are prosecuted in partnership with the Tucson and Yuma Sectors of the Customs and Border Protection’s U.S. Border Patrol, along with Homeland Security Investigations, and assistance from other federal, state, and county agencies. In the three-month period ending September 30, 2024, the United States brought criminal charges in Arizona against 2,611 individuals who illegally entered or re-entered the United States. In its ongoing effort to deter unlawful immigration, the United States also filed 364 cases against individuals responsible for smuggling undocumented noncitizens to and within the District of Arizona. In this time period, the United States also prosecuted 67 reactive drug cases arising out of immigration ports of entry and checkpoints.
Reducing migrant smuggling and mitigating the risk to communities impacted by these offenses continue to be priorities for the Office and its law enforcement partners. Some of these prosecutions are directed against leaders and coordinators of alien smuggling organizations. Other prosecutions are aimed at deterring young adult drivers, often recruited over social media platforms, from engaging in this dangerous activity. Prosecutions against young drivers include cases brought against two juvenile smugglers during this time period.
Protecting law enforcement officers is a key part of border vigilance. During this time period, federal prosecutors brought charges against one defendant accused of assaulting federal officers.
These statistics represent United States Attorney’s Office prosecutions only. The numbers do not include individuals apprehended by immigration enforcement officials and subjected solely to administrative process.
RELEASE NUMBER: 2024-137_2024 Third Quarter Immigration Enforcement Statistics
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Co-Conspirators Sentenced to Multiple Years in Prison for Possessing MachinegunsRead the Press Release
PHOENIX, Ariz. – Alfredo Macias, 20, Daniel Alfredo Galvan, 20, both of Phoenix, and Jesus David Vega-Rivera, 26, of Mexico, were sentenced to prison last week by United States District Judge Krissa M. Lanham for Conspiracy to Possess Machineguns. Macias and Vega-River were each sentenced to 51 months in prison, and Galvan was sentenced to 42 months in prison. All three defendants were also sentenced to 36 months of supervised release following their release from prison.
Macias and Galvan negotiated with another person to purchase machineguns, with the intention of trafficking those firearms to Mexico. The parties exchanged text messages depicting the firearms and cash. At the time of the in-person exchange, Vega-Rivera was present with the cash for the machineguns. All three individuals were arrested by ATF agents.
Before handing down the sentence, Judge Lanham explained the seriousness and danger of machineguns being able to fire many rounds in rapid succession and the capability to cause immense injury to multiple people.
Macias pleaded guilty to Possession or Transfer of a Machinegun on July 2, 2024. Galvan pleaded guilty to Possession or Transfer of a Machinegun on June 7, 2024. And Vega-Rivera pleaded guilty to Conspiracy to Possess or Transfer a Machinegun on June 7, 2024.
This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-24-00258-PHX-KML
RELEASE NUMBER: 2024-136_Macias# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.U.S. Attorney’s Office Announces over $6.2 Million in Justice Department Grants to Tribal Communities and Organizations in ArizonaRead the Press Release
PHOENIX, Ariz. – United States Attorney Gary M. Restaino today announced $6,285,698 in Department of Justice (DOJ) grants to tribal communities and organizations in the District of Arizona. The grants were awarded by the Department’s Office of Justice Programs to prevent and reduce crime and by the Office on Violence Against Women (OVW) to bolster coordinated community responses aimed at bringing an end to domestic violence.
Specifically, the following organizations received funding:
- Salt River Pima-Maricopa Indian Community awarded $1,250,000 under OVW Violence Against Women Tribal Special Assistant U.S. Attorney Initiative.
- San Carlos Apache Tribal Council awarded $963,000 under Byrne Discretionary Community Project Grants Program.
- Gila River Indian Community awarded $873,094 under Adult Treatment Court Program.
- Tuba City Regional Health Care Corporation awarded $610,000 under OVW Tribal Sexual Assault Services Program.
- Southwest Indigenous Women’s Coalition awarded $414,147 under OVW Grants to Tribal Domestic Violence and Sexual Assault Coalitions.
- Hopi-Tewa Women’s Coalition to End Abuse awarded $414,147 under OVW Grants to Tribal Domestic Violence and Sexual Assault Coalitions.
- San Carlos Apache Tribal Council awarded $315,724 under OVC Tribal Victim Services Set-Aside Formula Program.
- Hopi Tribe awarded $315,724 under OVC Tribal Victim Services Set-Aside Formula Program.
- Gila River Indian Community awarded $282,632 under OVC Tribal Victim Services Set-Aside Formula Program.
- Salt River Pima-Maricopa Indian Community awarded $282,632 under OVC Tribal Victim Services Set-Aside Formula Program.
- White Mountain Apache Tribe awarded $250,000 under SMART Support for Adam Walsh Act Implementation Grant Program.
- Yavapai Apache Nation awarded $229,973 under OVC Tribal Victim Services Set-Aside Formula Program.
- Pascua Yaqui Tribe awarded $66,071 under OVW Special Tribal Criminal Jurisdiction Reimbursement Program.
- Salt River Pima-Maricopa Indican Community awarded $18,554 under OVW Special Tribal Criminal Jurisdiction Reimbursement Program.
The U.S. Attorney’s office will hold its annual Tribal Listening Conference in November, during which it convenes with its law enforcement and sovereign tribal partners to listen to, engage with, and educate one another. While the issues covered by these grants are long-standing challenges in tribal communities, the Tribal Listening Conference will provide an opportunity for all of the stakeholders to rededicate themselves to preventing crime and violence in the affected communities.
The awards announced above are being made as part of the regular end-of-fiscal year cycle. More information about these and other OJP awards can be found on the OJP Grant Awards Page.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime; advance equity and fairness in the administration of justice; assist victims; and uphold the rule of law. More information about OJP and its program offices – the Bureau of Justice Assistance, Bureau of Justice Statistics, National Institute of Justice, Office of Juvenile Justice and Delinquency Prevention, Office for Victims of Crime, and SMART Office – can be found at www.ojp.gov. More information about the Office of Violence Against Women, along with the recent grants, can be found at www.justice.gov/ovw.
RELEASE NUMBER: 2024-133_OJP Grant Awards
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Jury Convicts Colorado City Men in Child Sexual Abuse ConspiracyRead the Press Release
PHOENIX, Ariz. – Today, a federal jury in Phoenix found LaDell Jay Bistline, Jr., 45, and Torrance Bistline, 36, both of Colorado City, Arizona, guilty of multiple charges related to their participation in a years-long child sexual abuse conspiracy that spanned several states and victimized at least 10 children. The defendants committed their crimes with others, including co-defendant Samuel Rappylee Bateman, the self-proclaimed leader of a religious sect based in Colorado City. Bateman and nine of his other followers pleaded guilty to charges related to the child sexual abuse conspiracy and were not part of the trial against brothers LaDell Jay Bistline, Jr. and Torrance Bistline.
“Today’s verdict is a step towards justice for the victims of LaDell and Torrance Bistline,” said U.S. Attorney Gary Restaino. “The Bistlines used their positions of power and trust to sexually exploit children and to profane their community. The devastating trauma and harm they inflicted is unfathomable. But today’s guilty verdicts hold them to account – for their despicable acts, for their breach of trust, and for their complete indifference to the mental and psychological scars their victims will live with for the rest of their lives. The United States Attorney’s Office, along with its state and federal law enforcement partners and other agencies, will continue to work tirelessly to protect the most vulnerable from abuse and exploitation, and to help them heal.”
“Protecting children is one of the many noble missions of the FBI,” said FBI Phoenix Special Agent in Charge Jose A. Perez. “Adults who exploit children for illicit activities are a danger and a disgrace. Today’s verdicts reflect the unwavering dedication by the FBI and its partners to ensure those who prey on children are held accountable and brought to justice.”
LaDell Jay Bistline, Jr. was convicted of one count of Receipt of Child Pornography; one count of Transfer of Obscene Material to a Minor; two counts of Persuading or Coercing Travel to Engage in Sexual Activity; two counts of Using a Means of Interstate Commerce to Persuade or Coerce a Minor to Engage in Sexual Activity; and two counts of Transportation of a Minor for Criminal Sexual Activity.
Torrance Bistline was convicted of one count of Using a Means of Interstate Commerce to Persuade or Coerce a Minor to Engage in Sexual Activity; two counts of Destruction of Records in an Official Proceeding; one count of Conspiracy to Commit Destruction of Records in an Official Proceeding; one count of Tampering with an Official Proceeding; and one count of Conspiracy to Commit Tampering with an Official Proceeding.
LaDell Jay Bistline, Jr. and Torrance Bistline were followers of Bateman, who represented himself as a religious prophet. In 2020 and 2021, Bateman’s followers gave their minor daughters and wards to him as child “brides” to sexually abuse. Bateman and others transported the victims between states, including Nebraska, Colorado, Utah, and Arizona to facilitate the sexual abuse. LaDell Jay Bistline, Jr. delivered two of his own daughters to Bateman to become child “brides” when the girls were nine and 11 years old. LaDell Jay Bistline, Jr. also participated in group sexual activity involving children, including one event he watched over a video livestream. Torrance Bistline, who financially supported Bateman’s group, sexually abused one of Bateman’s child “brides” during a group sexual activity. Torrance Bistline later tried to destroy and hide evidence to interfere with the investigation.
LaDell Jay Bistline, Jr. and Torrance Bistline each face a minimum penalty of 10 years in prison and a maximum penalty of life in prison. Sentencing for LaDell Jay Bistline, Jr. is currently scheduled for December 16, 2024, and sentencing for Torrance Bistline is currently scheduled for December 20, 2024, before United States District Judge Susan M. Brnovich. Bateman is currently scheduled to be sentenced by Judge Brnovich on October 28, 2024. Several other defendants have already been sentenced, and the remaining defendants will be sentenced in the coming months.
The Phoenix Field Office of the Federal Bureau of Investigation conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution. The United States Attorney’s Office continues to extend special gratitude to the Arizona Department of Child Safety for its work rescuing and protecting Arizona children impacted by this matter, the Colorado City Police Department, the Iron County (Utah) Sheriff’s Office, the U.S. Marshals Service, and the St. George Resident Agency of the FBI’s Salt Lake City Field Office for their assistance in this matter.
CASE NUMBER: CR-22-8092-PHX-SMB
RELEASE NUMBER: 2024-135_Bistline# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Chinle Man Sentenced to 25 Years in Prison for Kidnapping and AssaultRead the Press Release
PHOENIX, Ariz. – Jared Josh John, 32, of Chinle, was sentenced on September 11, 2024, by United States District Judge Diane J. Humetewa to 25 years in prison, followed by five years of supervised release. After a jury trial in May 2023, John was convicted of Carjacking, Kidnapping, Robbery, Assault with a Dangerous Weapon, Assault with Intent to Commit Murder, Assault with Intent to Commit a Felony, and Assault Resulting in Serious Bodily Injury.
In July 2020, the victim was passing through the Navajo Nation on a road trip when John and a co-defendant broke into his car while he was resting for the night. Led by John, the two co-defendants drove the victim into the desert, where John slit the victim’s throat three times and left him to die. The victim survived by playing dead until the defendants left, and then used his clothes to fashion a tourniquet for his neck before going to find help.
John’s co-defendant, Everickk Matthew Begay, 55, of Chinle, pleaded guilty to Kidnapping, Robbery, and Assault with Intent to Commit a Felony on March 20, 2023. Begay was sentenced on August 14, 2023, to 97 months in prison, followed by five years of supervised release.
The Federal Bureau of Investigation and the Navajo Division of Public Safety conducted the investigation in this case. Assistant U.S. Attorneys Alanna R. Kennedy and Tracy Van Buskirk, District of Arizona, Phoenix, handed the prosecution.
CASE NUMBER: CR-21-08113-PCT-DJH
RELEASE NUMBER: 2024-134_Begay et al.# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Flagstaff Man Sentenced for Arson in Grand Canyon National ParkRead the Press Release
PHOENIX, Ariz. – Dahntay Dunbar, 21, of Flagstaff, was sentenced last week by Senior U.S. District Judge Roslyn O. Silver to 20 months in prison, to be followed by 60 months of supervised release. Judge Silver also ordered Dunbar to pay $20,146.13 in restitution. Dunbar pleaded guilty to Arson of a Dwelling, which occurred in the Grand Canyon National Park, on July 8, 2024.
Between the late night of May 17, 2024, and the early morning of May 18, 2024, Dunbar pushed his way into a locked cabin within the national park, which was the residence of his former girlfriend. She was not home at the time. Dunbar found a bottle of clear liquor and dumped it on a bed. Dunbar then took a lighter, lit one of his former girlfriend’s shirts on fire and placed it on the bed. The bed started to burn, and Dunbar left the cabin. The fire caused scorching, burn damage, and smoke damage to the walls, ceiling, and other parts of the cabin. A bystander observed the fire and put most of it out prior to the arrival of the fire department. Dunbar was arrested on other charges a short time later by National Park Service law enforcement rangers and admitted to having committed the arson.
National Park Service special agents and rangers, assisted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Flagstaff, handled the prosecution.
CASE NUMBER: CR-24-08061-001-PCT-RSO
RELEASE NUMBER: 2024-132_Dunbar# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.21-Year-Old Sentenced to Two Years in Prison for Alien Smuggling ConspiracyRead the Press Release
TUCSON, Ariz. – Obiel Anthony Ochoa-Renteria, 21, of Tempe, was sentenced last week by United States District Judge Rosemary Márquez to 24 months in prison, followed by three years of supervised release, for his role in an alien smuggling conspiracy. Ochoa-Renteria pleaded guilty to Conspiracy to Transport Illegal Aliens for Profit on March 27, 2024.
In September 2022, agents from Homeland Security Investigations initiated an investigation into alien smuggling events being arranged through the social media app Instagram. During the course of the investigation, agents identified an Instagram account belonging to Ochoa-Renteria and discovered multiple occasions in which Ochoa-Renteria recruited participants and coordinated smuggling events between June and September 2022. Then on May 14, 2023, Ochoa-Renteria was stopped by a Department of Public Safety (DPS) trooper for speeding near Sierra Vista. During the traffic stop, DPS officers were assisted by Border Patrol agents who discovered two men dressed in camouflage in the trunk of Ochoa-Renteria’s vehicle. Border Patrol agents determined that the men were Guatemalan and Mexican nationals who were illegally present in the United States. Ochoa-Renteria admitted that he was aware the men were in the United States illegally, and that he had agreed to transport them for $200 to $300 each.
Homeland Security Investigations and Custom’s and Border Protections United States Border Patrol conducted the investigation in this case, with assistance from the Arizona Department of Public Safety. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-23-00802-TUC-RM
RELEASE NUMBER: 2024-131_Ochoa-Renteria# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Man Sentenced for Threatening to Place Pipe Bombs on School Buses in IndianaRead the Press Release
TUCSON, Ariz. – Amir Safavi Farokhi, 29, of Fishers, Indiana, was sentenced by U.S. District Judge Scott H. Rash last week to over 11 months’ custody for threatening to blow up school buses in Castleton, Indiana. Farokhi pleaded guilty on July 17, 2024, to one count of Making an Interstate Threat.
Between October 21 and October 24, 2023, while staying at a residence in Tucson, Farokhi made several cell phone calls to hospitals, police departments, schools, and businesses in both Tucson, Arizona and Indiana. Farokhi pleaded guilty to calling the Indianapolis Metropolitan Police Department and threatening that he was going to blow up three school buses with pipe bombs. Farokhi was arrested on October 25, 2023, in Tucson, and he remained in federal custody throughout the duration of his case.
Following his release from custody, Farokhi will be placed on supervised release for a period of three years, during which he will be required to participate in mental health treatment.
The Federal Bureau of Investigation and the Pima County Sheriff’s Department, as part of the FBI’s Southern Arizona Violent Crime and Gang Task Force, conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, handled the prosecution.
CASE NUMBER: CR-23-01845-TUC-SHR
RELEASE NUMBER: 2024-129_Farokhi# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.54 Defendants Charged with Federal Firearms-Related Crimes Since October 2023 Through Partnership Between United States Attorney’s Office and Tucson Police DepartmentRead the Press Release
TUCSON, Ariz. – The United States Attorney’s Office (USAO) and the Tucson Police Department (TPD) announced today the results of the first year of the PSP Pilot Program, a collaborative effort between the USAO and the TPD, in which local defendants are referred federally for charges involving firearm-related offenses. The partnership has resulted in 54 defendants being charged since October 2023. In 2022, the Tucson Police Department was selected by the United States Department of Justice as a partner agency in the National Public Safety Partnership (PSP), an initiative to combat violent crime, with an emphasis on drug, gang, and gun violence. Cases referred for federal prosecution also receive additional investigative assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives-Tucson and the Federal Bureau of Investigation-Tucson.
Representative cases referred for PSP prosecution include:
United States v. Jesus Antonio Najar: Najar was indicted by a federal grand jury with multiple firearms and narcotics offenses, occurring on three different dates. On April 19, 2024, TPD officers apprehended Najar for allegedly driving a stolen vehicle. During a search of the vehicle, officers found unregistered AR Drop In Auto Sear Swift Links (parts designed and intended solely and exclusively for use in converting a weapon into a machinegun capable of automatic fire), unregistered silencers without serial numbers, and an AR pistol with an obliterated serial number. On October 12, 2023, Najar allegedly conspired and possessed cocaine for distribution while using and possessing a Glock 17 with a machinegun conversion device attached and two additional firearms. Najar is alleged to have possessed the machinegun conversion device that was not registered to him. In addition, Najar is alleged to have possessed an unregistered short-barrel rifle on December 11, 2023. Najar is currently in custody.
United States v. Geoffrey Fred Cruzado: Cruzado was indicted by a federal grand jury for illegal possession of approximately 134 rounds of ammunition as a convicted felon, after allegedly threatening an intimate partner. Cruzado is currently in custody.
United States v. Jessica Guillen-Morales: A federal grand jury indicted Guillen-Morales with possession of six firearms and ammunition by a convicted felon, possession of unregistered firearms, illegal reentry, and possession of a firearm by an alien after she was found to be present illegally in the United States in Tucson, on November 19, 2023, after having been deported to Mexico from the United States less than three weeks earlier. Guillen-Morales is currently in custody.
United States v. Israel Manuel Ortiz: In January 2024, TPD officers encountered Ortiz in possession of approximately 57 grams of counterfeit oxycodone “M30” pills, later determined to contain fentanyl, and a .40 caliber pistol. Ortiz, a three-time convicted felon for misconduct involving weapons and armed robbery, was subsequently indicted by a federal grand jury for Possession of a Firearm by a Prohibited Possessor and Possession with Intent to Distribute Fentanyl. Ortiz is currently in custody.
United States v. Isaiah Thomas Taylor: When TPD officers were serving a state arrest warrant for Taylor at a residence last February, Taylor, a convicted felon for misconduct involving weapons, was found to be in possession of a Glock pistol. A subsequent search of the residence revealed three additional Glock pistols, including one fitted with a fully automatic conversion device. Taylor was indicted by a federal grand jury with Possession of a Firearm by a Prohibited Possessor and Possession of a Machine Gun. Taylor is currently in custody.
United States v. Jesus Alfredo Romo: On October 6, 2023, Romo fled in a vehicle from TPD officers during a traffic stop. Once Romo was apprehended, a 9mm loaded handgun was observed on the driver’s side floorboard and a backpack was retrieved from the vehicle containing 60,000 fentanyl tablets and two baggies of methamphetamine, one weighing over 2.5 grams and the other over 0.8 grams. Officers also found two digital scales and Romo had almost $1,300 in cash on his person. Romo, who was previously convicted of felony possession of dangerous drugs for sale, was indicted on November 21, 2023, with various counts including Trafficking in Firearms and Possession with Intent to Distribute Fentanyl. He pleaded guilty to those two charges with stipulated, concurrent sentences of five and 10 years. His anticipated sentencing date is January 15, 2025. Romo is currently in custody.
“The evolving threat of firearms in America requires vigilance and cooperation,” said United States Attorney Gary Restaino. “We see a growing number of defendants who possess devices used to convert a firearm to a more dangerous fully-automatic mode, and we intend to seek sentencing enhancements for the possession of those dangerous devices. Our efforts to mitigate the specific threat in Tucson through a local-federal partnership are paying dividends and protecting the community.”
“Gun crime has impacted the Tucson community at an unacceptable rate over the past several years. Through the PSP program, TPD's partnerships with local, state, and federal agencies have expanded, and we are collectively making significant strides in arresting those responsible for making our community less safe,” said Tucson Police Chief Chad Kasmar. “Individuals who illegally possess firearms, sell drugs, or engage in gun violence will be held accountable through TPD arrests and federal prosecution by the United States Attorney’s Office. This behavior has no place in Tucson, and we are grateful for the partnerships that are leading to jail sentences for violent offenders, which directly results in decreased gun violence.”
“This is a perfect example of how cooperative law enforcement should work,” said Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Brendan Iber. “By teaming up, federal and local agencies can collaboratively work to rid our communities of those violent criminals who plague law abiding citizens and the communities they live in.”
“These cases are a prime example of how the Public Safety Partnership program works. No single agency can combat violent crime on its own and this program brings a multi-agency approach to better protect our communities,” said FBI Phoenix Special Agent in Charge Jose A. Perez. “The FBI will continue to work with our local, state and federal law enforcement partners to reduce violent crime in Tucson and throughout Arizona.”
The National Public Safety Partnership was established by the U.S. Department of Justice to provide an innovative framework to enhance federal support of state, local, and tribal law enforcement and prosecution authorities in enhancing public safety. PSP began as a pilot program, the Violence Reduction Network, in 2014 and is designed to promote interagency coordination by leveraging specialized law enforcement expertise with dedicated prosecutorial resources to promote public and community safety. PSP serves as a DOJ-wide program that enables participating sites to consult with and receive expedited, coordinated training and technical assistance, and an array of resources from DOJ to enhance local public safety strategies. This model enables DOJ to provide jurisdictions of different sizes and diverse needs with data-driven, evidence-based strategies tailored to the unique local needs of participating cities to build their capacities to address violent crime challenges. PSP has engaged with more than 60 sites since the program’s inception.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
CASE NUMBERS: CR-24-03292-SHR
CR-24-01981-RCC
CR-24-00677-RCC
CR-24-01171-RCC
CR-24-05416-JCH
CR-23-01846-RM
RELEASE NUMBER: 2024-130_PSP Pilot Program# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news18 Members of Yuma-Based Alien Smuggling Ring Indicted for Conspiracy to Harbor and Transport Undocumented NoncitizensRead the Press Release
PHOENIX, Ariz. – Gary M. Restaino, United States Attorney for the District of Arizona, announces a three-count superseding indictment against 18 members of La Mesa, a Yuma-based alien smuggling ring, for Conspiracy to Harbor Illegal Aliens, Harboring Illegal Aliens for Profit, and Conspiracy to Transport Illegal Aliens. The defendants charged include:
- Victor Eduardo Araiza-Ponce, 24, of Yuma;
- Antonio Aparicio III, 24, of Somerton;
- Alonzo Esparza, 27, of Yuma;
- Carlos Moreno-Serrano, 24, of Yuma;
- Xasiel Noriega-Gonzalez, 21, of Somerton;
- Joshua Guillermo Leon-Fuentes, 21, of Somerton;
- Angel Rodriguez, 23, of Yuma;
- Crystobal Figueroa, 23, of Somerton;
- Saul Ponce Jr., 23, of San Luis;
- David Leon-Pallanes, 23, of Yuma;
- Manuel Uriel Alvarado, 26, of Yuma;
- Elian Lopez, 24, of Yuma;
- Raymundo Delgado-Diaz, 35, of Yuma;
- Isreal Zeveda, 23, of Salinas, California;
- Francisco Javier Esparza-Macias, 21, of Somerton;
- Alex Chiquete, 25, of Yuma;
- Hector Eduardo-Valdez, 31, of Yuma; and
- Jose Gabriel Marquez-Mendiola, 32, of Yuma.
During the investigation, United States Border Patrol-Intelligence (BPI) arrested numerous drivers of undocumented noncitizens (UNCs) in the District of Arizona and the Central and Southern Districts of California. Based on information derived from those arrests, BPI learned of an alien smuggling organization known as La Mesa, which worked on behalf of the Mexico-based transnational criminal organization Los Rusos. Before the arrests of 18 of its members, La Mesa operated out of Yuma and Somerton.
The superseding indictment alleges that members of La Mesa were responsible for smuggling, or attempting to smuggle, hundreds of undocumented noncitizens across the United States-Mexico border and further into the United States, and that Moreno-Serrano was the leader of La Mesa. Other defendants charged were responsible for coordinating smuggling events, scouting for the drivers who were transporting the undocumented noncitizens, transportation activities, procuring and running stash houses, distribution of payments to drivers, and enforcement on behalf of La Mesa. La Mesa used rental vehicles, scout drivers, and coordinated entries to further its smuggling operations.
Over the course of the investigation, BPI learned La Mesa adapted to the arrest of its drivers and started to take smaller groups of UNCs, focusing on transporting undocumented noncitizens to Southern and Central California in an attempt to avoid further arrests. La Mesa used force, threats, and intimidation to successfully operate both in the United States and Mexico. Video evidence reveals that the organization kidnapped members and threatened and assaulted them as retribution for having been arrested.
The maximum penalty for each of the charges is up to 10 years in prison and a fine of up to $250,000.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
Customs and Border Protection’s United States Border Patrol–Yuma Field Intelligence, El Centro Border Patrol and Indio Border Patrol are conducting the investigation. Assistant U.S. Attorneys Ross Arellano Edwards and Stuart J. Zander, U.S. Attorney’s Office, Phoenix, are handling the prosecution.
CASE NUMBER: CR-23-01676-PHX-KML
RELEASE NUMBER: 2024-128_Araiza-Ponce et al.# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Federal Agents Seize and Shut Down Royal Inn Hotel in Phoenix Due to Drug Trafficking and Other Unlawful ActivitiesRead the Press Release
Owner, Operator, and Corporate Entity Charged with Travel Act violations, Money Laundering, and Maintaining a Drug Premises
PHOENIX, Ariz. – Today, the Federal Bureau of Investigation and United States Marshal Service, in coordination with the Phoenix Police Department, executed search and seizure warrants at the Royal Inn hotel, located at 2510 West Palo Verde Drive in Phoenix. Federal agents seized control of the hotel and shut down its operations due to widespread prostitution and drug trafficking activities that have gone unabated by its owners and operators.
Also today, the United States District Court unsealed a 44-count indictment returned by a federal grand jury on September 17, 2024, against the Royal Inn’s owner, operator, and corporate entity, among others. Specifically:
- Varsha Patel, 56, of Chino Hills, California, the owner of Royal Inn, was charged with two counts of Using a Facility of Interstate Commerce in Aid of Racketeering, one count of Maintaining a Drug Premises, and 34 counts of Promotional Money Laundering. Varsha Patel was also charged with multiple counts of Making False Statements to Obtain a Small Business Administration Loan.
- Sarang Hospitality LLC, aka Royal Inn, the Arizona corporation through which the hotel does business, was similarly charged with two counts of Using a Facility of Interstate Commerce in Aid of Racketeering, one count of Maintaining a Drug Premises, and 34 counts of Promotional Money Laundering.
- Nilam Patel, 54, of Phoenix, the live-in operator and day-to-day manager of the Royal Inn, was also charged with two counts of Using a Facility of Interstate Commerce in Aid of Racketeering, one count of Maintaining a Drug Premises, and 34 counts of Promotional Money Laundering.
- Four other individuals were charged with Distribution of Fentanyl and Methamphetamine for drug dealing at the Royal Inn: Anthony Curtis, 42, of Buckeye; Otis Childers, 31, of Phoenix; Chauntelle Mills, 24, of Phoenix; and Leonardo Guerrero, 49, of Phoenix.
The indictment alleges that defendants Varsha Patel, Nilam Patel, and Sarang Hospitality LLC, operated the Royal Inn by primarily renting rooms to individuals engaging in prostitution and drug dealing. From 2017 through September 2024, these defendants used the funds they obtained from the Royal Inn room rentals to maintain and promote the Royal Inn’s operations; pay the mortgage on personal property located in Chino Hills, California; fund certificates of deposit; purchase life insurance policies; and pay for their own personal expenses.
The indictment further alleges that Varsha Patel, Nilam Patel, and Sarang Hospitality LLC were aware that most activities at the Royal Inn were illegal acts of prostitution, drug dealing, and drug using. Over the course of several years, Phoenix Police Department officials repeatedly informed these three defendants of the drug dealing and prostitution activities on the property, of the hundreds of calls for service local police received, and of the need to abate the criminal activities taking place. Despite having been served with multiple abatement letters, these defendants continued to operate the Royal Inn to intentionally facilitate and profit from the criminal activities occurring on the premises. This included: renting rooms to persons who overtly engaged in prostitution, and to persons who distributed illegal drugs; directing the sex workers to attract sex buyers off the property, and to walk separate from the sex buyer while going to the room; directing the sex workers, pimps, and drug dealers to park off the property; alerting sex workers, pimps, and drug dealers of law enforcement presence; failing to request a credit card, together with a government-issued identification, in order to rent a room; failing to evict persons engaged in prostitution and drug dealing, thereby allowing lengthy stays at the Royal Inn without detection; and failing to call the police when criminal activities were occurring.
A conviction for Using a Facility of Interstate Commerce in Aid of Racketeering carries a maximum penalty of five years in prison and a $250,000 fine. A conviction for Maintaining a Drug Premises carries a maximum penalty of 20 years in prison and a $500,000 fine. A conviction for Promotional Money Laundering carries a maximum penalty of 20 years in prison and a $500,000 fine. A conviction for Making False Statements to Obtain a Small Business Administration Loan carries a maximum penalty of two years in prison and a $250,000 fine. A conviction for Distribution of Fentanyl and Methamphetamine carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
An indictment is simply a method by which a person or entity is charged with criminal activity and raises no inference of guilt. A criminal defendant is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The Federal Bureau of Investigation, United States Marshal Service, and Phoenix Police Department conducted the investigation in this case. Assistant U.S. Attorneys Gayle Helart and Patrick Chapman, United States Attorney’s Office, District of Arizona, Phoenix, are handling the prosecution.
indictment_royal_inn.pdf
CASE NUMBER: CR-24-01529-PHX-SPL
RELEASE NUMBER: 2024-127_PatelConvicted Murderer Sentenced to Life in Prison for Murder of Missing Navajo WomanRead the Press Release
PHOENIX, Ariz. – Tre C. James, 31, of Pinon, was sentenced today by United States District Judge Douglas L. Rayes to life in prison on count one and an additional 10 years in prison on count two to run consecutively, for the murder of Jamie Yazzie, a woman classified as a Missing and Murdered Indigenous Person from the Navajo Nation. A federal jury previously found James guilty of First Degree Murder for Yazzie’s death. The jury also found James guilty of several acts of domestic violence committed against three other women, all members of the Navajo Nation. Judge Rayes sentenced James to an additional 10 years in prison to run concurrently, and five years of supervised release for each of those assaults.
“Securing justice for missing victims of violence necessitates courage, discipline, and collaboration,” said United States Attorney Gary Restaino. “It also requires all of us to demonstrate our commitment with alacrity: for communities to report their missing loved ones as soon as possible; for victim advocates to engage early and often with next of kin; and for agents and prosecutors to charge cases as soon as they are ready to be charged.”
“Today’s sentence underscores the fact that Jamie Yazzie was not forgotten by the FBI or our federal and tribal partners,” said FBI Phoenix Special Agent in Charge Jose A. Perez. “Our office is committed to addressing the violence that Native American communities in Arizona face every day and we will continue our efforts to protect families, help victims and ensure that justice is served in each case we pursue.”
James shot and killed Yazzie on the Navajo Nation in the summer of 2019. He hid her remains on the Hopi Reservation, where they remained concealed for almost three years. Multiple agencies worked together to investigate Yazzie’s disappearance, including the Federal Bureau of Investigation, Navajo Nation Division of Public Safety Criminal Investigation Services, Navajo Nation Police Department, Bureau of Indian Affairs, and Navajo County Sheriff’s Office.
Investigators faced significant challenges, including the fact that Yazzie had not been reported missing for several days, James had cleaned the crime scene, and the murder occurred while James and Yazzie were home alone together; the global pandemic, which hit the Navajo Nation particularly hard, also presented significant challenges. Investigators persevered and, during the investigation, discovered the assaults against other women, many of which had never been reported to law enforcement.
The Federal Bureau of Investigation conducted the investigation in this case. Assistant U.S. Attorney Jennifer E. LaGrange and former Assistant U.S. Attorney Sharon K. Sexton, U.S. Attorney’s Office, Phoenix, handled the prosecution. Ms. Yazzie’s mother, father, grandmother and other relatives provided support to the investigation and prosecution over several years.
CASE NUMBER: CR-22-08073-PCT-DLR
RELEASE NUMBER: 2024-126_James# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Three Individuals Sentenced for Fraudulently Obtaining Pandemic Unemployment Assistance on Behalf of Ineligible Persons, Including Prison InmatesRead the Press Release
PHOENIX, Ariz. – Likishe Jhanell Kelly, 43, of Phoenix, Antoinette Coleman, 36, of Glendale, and Christine Boston, 52, of Mesa have been sentenced in connection with a scheme to use the identities of prison inmates and others to fraudulently obtain federal unemployment benefits under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. All three individuals admitted they facilitated the filing of false claims for pandemic unemployment benefits by fraudulently using other identities, including those of imprisoned individuals.
Kelly was sentenced last week by United States District Judge Susan M. Brnovich to 36 months in prison and mandated to pay $375,094 in restitution to the Arizona Department of Economic Security (DES). Kelly pleaded guilty to Conspiracy to Commit Wire Fraud on November 21, 2023. Coleman was also sentenced last week by Judge Brnovich to five years of probation and mandated to pay $19,678 in restitution to DES. Coleman pleaded guilty to Conspiracy to Commit Wire Fraud on January 16, 2024. Boston was sentenced by Judge Brnovich on July 9, 2024, to 36 months in prison and ordered to pay $97,596 in restitution to DES. Boston also pleaded guilty to Conspiracy to Commit Wire Fraud on January 3, 2024.
Kelly, Coleman, and Boston acknowledged their role in helping file applications for inmates who did not actually lose their jobs due to COVID. Boston was incarcerated during the time of this scheme and transmitted the necessary inmate information for the filing of applications to Kelly and Coleman. Boston emailed Coleman from the Arizona State Prison in Goodyear to recruit Coleman to facilitate processing inmate applications for Pandemic Unemployment Assistance benefits. Kelly would then file the fraudulent applications and weekly certifications in the name of Boston and other inmates. Kelly compensated Boston for providing the inmate information by depositing money into her Arizona state prison commissary account.
Additionally, Kelly submitted fraudulent applications and weekly certifications on behalf of other ineligible individuals, including Coleman. Coleman processed and filed two fraudulent applications. In total, between May 2020 and December 2020, Kelly and her co-defendants submitted at least 42 fraudulent applications, obtaining approximately $375,094 in illicit funds.
“During the worldwide COVID-19 pandemic, Congress expanded eligibility for employees to receive unemployment benefits and made it easier to submit an application,” said United States Attorney Gary Restaino. “Sadly, some Arizonans took advantage of the emergency and defrauded our State. The sentences and restitution orders imposed in this case send an important deterrent message to those who seek gains based on others’ misfortune.”
“We appreciate our continuous collaboration with the United States Department of Labor and the Office of Inspector General to identify and hold accountable those who exploit the system and engage in Unemployment Insurance fraud,” stated Angie Rodgers, Director of the Arizona Department of Economic Security. “Our agencies are resolute in our dedication to preserving the integrity of the unemployment insurance benefits program.”
The United States Department of Labor, Office of Inspector General, and the Arizona Department of Economic Security conducted the investigation in this case. Assistant U.S. Attorney Kristen Brook, U.S. Attorney’s Office, Phoenix, handled the prosecution.
CASE NUMBER: CR 23-0432-PHX-SMB
RELEASE NUMBER: 2024-125_Kelly, Boston, Coleman# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Tucson Man Indicted for Deadly Human Smuggling-Related Crash Near ArivacaRead the Press Release
TUCSON, Ariz. – Samuel Lopez-Ozuna, 18, of Tucson, was indicted last week by a federal grand jury on charges of Conspiracy to Transport Illegal Aliens for Profit Placing in Jeopardy the Life of Any Person Resulting in Death, Transportation of Illegal Aliens for Profit Resulting in Death, and Transportation of Illegal Aliens for Profit Placing in Jeopardy the Life of Any Person Resulting in Death, stemming from a deadly crash last month.
On August 9, 2024, near Arivaca, approximately five miles north of the international border, United States Border Patrol agents attempted to pull over a Chevrolet Tahoe with fake license plates, on suspicion that the driver, Lopez-Ozuna, was engaged in human smuggling. Instead of yielding to law enforcement, Lopez-Ozuna sped up and fled, crashing and rolling the Tahoe. Lopez-Ozuna was smuggling seven undocumented noncitizens, all of whom were ejected from the vehicle during the crash. One person died and three others sustained serious injuries.
A conviction for any one of the charges - Conspiracy to Transport Illegal Aliens for Profit Placing in Jeopardy the Life of Any Person Resulting in Death, Transportation of Illegal Aliens for Profit Resulting in Death, and Transportation of Illegal Aliens for Profit Placing in Jeopardy the Life of Any Person Resulting in Death - carries a maximum penalty of life in prison.
Homeland Security Investigations- Tucson, Custom and Border Protection’s United States Border Patrol, and the Pima County Sheriff’s Department is conducting the investigation in this case. Assistant U.S. Attorneys Desiree Chery and Ryan P. DeJoe, District of Arizona, Tucson, are handling the prosecution.
CASE NUMBER: CR-24-06035-TUC-AMM
RELEASE NUMBER: 2024-123_Lopez-Ozuna# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Glendale Woman Sentenced to Prison for Assaulting TSA Agent at Sky Harbor AirportRead the Press Release
PHOENIX, Ariz. – Ma’Kiah Cherae Coleman, 20, of Glendale, was sentenced last week by United States District Judge Douglas L. Rayes to four months in prison, followed by 36 months of supervised release for assaulting a Transportation Security Administration (TSA) agent at Phoenix Sky Harbor Airport. Coleman pleaded guilty to Assault on a Federal Officer Inflicting Bodily Injury on April 23, 2024.
On April 25, 2023, Coleman assaulted a TSA agent at Sky Harbor Airport by grabbing the agent’s hair, forcing the agent’s head down against a baggage screening area table, and punching the agent in the head several times with a closed fist. Coleman had to be restrained by several other TSA agents.
In addition to being sentenced to prison, Coleman is banned from traveling by commercial aircraft during the three-year term of her court supervision.
TSA officers are federal employees who work for the Department of Homeland Security to protect the nation's transportation systems. Their primary role is to screen passengers, baggage, and cargo for terrorism threats. Coleman’s actions resulted in the temporary closure of a Sky Harbor Airport Security Checkpoint while law enforcement responded.
The Transportation Security Administration, the Federal Bureau of Investigation, and the Phoenix Police Department conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-23-00780-PHX-DLR
RELEASE NUMBER: 2024-124_Coleman# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Peridot Woman Sentenced to 15 Years for Killing Her HusbandRead the Press Release
PHOENIX, Ariz. – Terri Lynn Victor, 43, of Peridot, was sentenced on August 26, 2024, by U.S. District Judge Diane J. Humetewa to 180 months in prison, followed by three years of supervised release. Victor is a member of the San Carlos Apache Tribe.
In the late-night hours of July 6, 2022, and into the early morning hours of July 7, 2022, Victor stabbed her husband in the chest, ultimately killing him. Victor pleaded guilty to Voluntary Manslaughter on February 14, 2024.
The investigation in this case was conducted by the San Carlos Apache Police Department and the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorneys Dimitra Sampson and Vinnie Lichvar, District of Arizona, Phoenix.
CASE NUMBER: CR-22-01129-PHX-DJH
RELEASE NUMBER: 2024-122_Victor# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Tucson Man Indicted for Second-Degree MurderRead the Press Release
TUCSON, Ariz. – Last week, a federal grand jury indicted Matthew Leyvas, 28, of Tucson, on one count of Second-Degree Murder. Leyvas is an enrolled member of the Pascua Yaqui Tribe.
The indictment alleges that, on August 8, 2024, Leyvas stabbed the victim multiple times. The victim was promptly transported to Banner University Medical Center but was pronounced dead shortly after arriving.
Second-Degree Murder carries a maximum penalty of life in prison, a fine of up to $250,000, and up to five years of supervised release.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The Federal Bureau of Investigation and the Pascua Yaqui Police Department conducted the investigation in this case. Assistant United States Attorney Micah Schmit, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: CR-24-5789-TUC-JCH
RELEASE NUMBER: 2024-121_Leyvas# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Assailant Sentenced to 24 Months for Assaulting United States Border Patrol AgentRead the Press Release
TUCSON, Ariz. – Pedro Anival Coc-Caal, 22, of Tectitan, Huehuetenango, Guatemala, was sentenced on Tuesday by United States District Judge John C. Hinderaker to 24 months in prison. Coc-Caal pleaded guilty to Assault on a Federal Agent Inflicting Bodily Injury and Improper Entry by an Alien on June 24, 2024.
On August 12, 2023, a United States Border Patrol agent was in the process of arresting Coc-Caal for illegal entry into the United States. As the agent attempted to handcuff him, Coc-Caal struck the agent on the left side of the agent’s face, causing the agent’s head to snap downwards and knocking his sunglasses off his face. As the agent tried to prevent Coc-Caal from escaping, Coc-Caal kicked the agent in the arm, causing the agent to fall backwards onto jagged rocks, causing injury to the agent’s finger. Coc-Caal escaped into the desert but was eventually apprehended after a foot pursuit aided by helicopter.
Customs and Border Protection’s United States Border Patrol conducted the investigation in this case. Assistant U.S. Attorney Serra M. Tsethlikai, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-23-01369-TUC-JCH
RELEASE NUMBER: 2024-120_Coc-Caal# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Supplier Sentenced for Selling Counterfeit M30 PillsRead the Press Release
PHOENIX, Ariz. – Dairon Jissan Rodriguez-Escalante, 27, a legal permanent resident from Cuba living in Maricopa, was sentenced last week by United States District Judge Angela M. Martinez to 33 months in prison, followed by three years of supervised release. Rodriguez-Escalante pleaded guilty to Possession with the Intent to Distribute Fentanyl on March 27, 2024.
In 2021, Rodriguez-Escalante was identified through social media as a source of supply of counterfeit M30 pills containing fentanyl for other individuals who sent narcotics through the mail. In October and November 2021, Rodriguez-Escalante sold over 650 grams of blue M30 pills containing fentanyl to U.S. Postal Inspection Service and Drug Enforcement Administration agents on two separate occasions.
The United States Postal Inspection Service, Drug Enforcement Administration-St. Louis Office, Peoria Police Department, and the Mesa Police Department Forensic Laboratory conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-23-1086-PHX-JJT
RELEASE NUMBER: 2024-119_Rodriguez-Escalante# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Former Customs and Border Patrol Agent Found Guilty of Federal Civil Rights and Kidnapping Charges for Sexually Assaulting and Abducting Minor VictimRead the Press Release
After deliberating for two days, a jury found a former U.S. Customs and Border Protection agent, Aaron Mitchell, guilty of both a federal civil rights offense and a kidnapping charge for sexually assaulting and kidnapping a victim who was a minor. The jury also found that the defendant’s conduct included aggravated sexual abuse, kidnapping and resulted in bodily injury.
“The heinous crimes committed against a young middle school student by an individual sworn to uphold the law are unspeakable,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This defendant had a duty to protect his community but instead he abused his power, kidnapped, cuffed and restrained a young girl, and repeatedly sexually assaulted her in his apartment for hours. With this verdict, the jury has done us all a great service by holding accountable this former federal law enforcement official. The Justice Department will continue to stand up for sexual assault victims, especially children, and we will prosecute law enforcement officials who break the law with every tool at our disposal.”
“We count on our law enforcement officers to protect children, schools and communities,” said U.S. Attorney Gary Restaino for the District of Arizona. “This defendant dishonored his badge and his colleagues by ignoring his oath and harming the most vulnerable among us. Thanks to the Douglas Police Department and the FBI for investigating this case with dedication and compassion, and for vindicating the rights of a courageous victim.”
“Mitchell not only broke his oath, but the trust instilled in him as a law enforcement officer. Public servants, particularly in law enforcement, must be held to the highest of ethical standards. Those falling short must be rooted out and firmly held accountable,” said Special Agent in Charge Jose A. Perez of the FBI Phoenix Field Office. “The FBI remains committed to uncovering those who attempt to hide their acts of violence behind the badge. We would like to thank our investigators and the Douglas Police Department for their support and assistance in this case.”
During a two-week trial, jurors heard evidence that, on the morning of April 25, 2022, Mitchell traveled to Douglas, Arizona, where he abducted a 15-year-old female middle school student, restrained her, drove her to his apartment and sexually assaulted her.
According to evidence presented at trial, Mitchell found the child waiting for school to start, introduced himself as a law enforcement officer, and asked for her papers. Next, after flashing his police badge and credentials, Mitchell ordered the child into his car and explained that he was taking her to the police station. Instead, Mitchell drove the child miles away from her school, pulled over and restrained her hands and feet with two pairs of handcuffs. The victim testified that, after being handcuffed, the defendant told her to do everything he said because he didn’t want to have to hurt her.
Once the defendant forced the victim into his apartment, he repeatedly sexually assaulted her over the course of several hours. Mitchell eventually returned the victim to the area of the middle school where he had abducted her earlier that morning and reminded her not to tell anyone. The victim immediately reported the abduction and sexual assaults to her friends, family members and multiple law enforcement agencies. During an interview with police, the defendant exclaimed that the victim “better hope I don’t get out of here.”
An examination of the defendant’s cellphone revealed that the defendant had conducted numerous searches regarding rape and how to stop someone from screaming and, while he had the child captive in his apartment, he conducted an additional internet search for how long it takes to smother someone.
A sentencing hearing will be set at a later date. Mitchell faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Douglas Police Department and FBI Phoenix Field Office, Sierra Vista Resident Agency investigated the case.
Assistant U.S. Attorney Carin Duryee for the District of Arizona and Trial Attorney MarLa Duncan of the Civil Rights Division’s Criminal Section are prosecuting the case.
St. David Man Pleads Guilty to COVID Loan Fraud and Tax FraudRead the Press Release
TUCSON, Ariz. – Roy L. Layne, 44, of St. David, pleaded guilty yesterday to two counts of Wire Fraud and one count of Filing a False Claim. Sentencing is scheduled for February 3, 2025, before United States District Judge John C. Hinderaker.
Layne admitted that during the COVID-19 global pandemic he fraudulently applied for U.S. Small Business Administration (SBA) Economic Injury Disaster Loans, SBA Paycheck Protection Program Loans, and pandemic-related tax relief in the names of fictitious business entities, himself, and others. Layne filed numerous fraudulent SBA loan applications, ultimately receiving $306,700 that he was not entitled to. Layne also filed numerous false claims for tax refunds with the Internal Revenue Service totaling over $7.4 million, receiving and keeping $549,992 that he was not entitled to. In his plea agreement, Layne has agreed to pay restitution to the SBA and the U.S. Treasury totaling $856,692.91.
A conviction for Wire Fraud carries a maximum penalty of 30 years in prison, a fine of $1,000,000, or both, and a term of five years of supervised release. A conviction for Filing a False Claim carries a maximum penalty of five years in prison, a fine of $250,000, or both, and a term of three years of supervised release.
Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation conducted the investigation in this case. Assistant U.S. Attorney Mary Sue Feldmeier, District of Arizona, Tucson, and Department of Justice Trial Attorney Matthew R. Hoffman, Tax Division, Washington, D.C., are handling the prosecution.
CASE NUMBER: CR-24-04907-TUC-JCH
RELEASE NUMBER: 2024-118_Layne# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Three Owners of Notorious Prostitution Website Backpage SentencedRead the Press Release
A federal judge in Phoenix today sentenced the three owners of Backpage, a prostitution website, for offenses arising from their promotion of and associated money laundering.
Michael Lacey, 76, of Paradise Valley, Arizona, was sentenced to five years in prison and three years of supervised release; Scott Spear, 73, of Phoenix, was sentenced to 10 years in prison and three years of supervised release; and John “Jed” Brunst, 72, of Phoenix, was sentenced to 10 years in prison and three years of supervised release. The Court also ordered that all defendants turn themselves in to the U.S. Marshals Service by noon on Sept. 11.
“The defendants and their conspirators obtained more than $500 million from operating an online forum that facilitated the sexual exploitation of countless victims,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The defendants thought they could hide their illicit proceeds by laundering the funds through shell companies in foreign countries. But they were wrong. Their sentences should serve as a stark reminder that the Criminal Division and its law enforcement partners are committed to protecting victims and following the money to unmask those who exploit human beings for financial gain.”
“These convictions hold accountable three C-Suite executives who controlled an enterprise and its illicit profits,” said U.S. Attorney Gary Restaino for the District of Arizona. “The courage of the victims of Backpage’s criminal activities is vindicated by the sentences imposed by the Court, to include the loss of liberty for each defendant as well as the additional large fine imposed on defendant Lacey, which will inure to the benefit of the Crime Victims Fund and crime victims everywhere.”
According to court documents and evidence presented at trial, Lacey, Spear, and Brunst owned Backpage. From September 2010 through its seizure by the United States in April 2018, Backpage was the internet’s leading forum for prostitution ads. Evidence at trial showed that the conspirators knowingly promoted prostitution via various marketing strategies. For example, the conspirators engaged in a reciprocal link program with an independent web forum that permitted “johns” to post reviews of prostitution acts with specific women. Additionally, the conspirators used an automated filter and human moderators to remove terms known to indicate sex-for-money, while still allowing the ads to be posted. Through this attempt to sanitize the ads, the conspirators sought “plausible deniability” for what the conspirators knew to be ads promoting prostitution. Over the life of the conspiracy, the conspirators earned more than $500 million. In an effort to preserve the money earned, Lacey, Spear, and Brunst laundered the money through numerous shell companies they created in multiple foreign countries.
In November 2023, a federal jury in Phoenix convicted Lacey of one count of international concealment money laundering; Spear of conspiracy to violate the Travel Act, 17 counts of violating the Travel Act, money laundering conspiracy, and 10 counts of concealment money laundering; and Brunst of conspiracy to violate the Travel Act, money laundering conspiracy, 10 counts of concealment money laundering, and five counts of international promotional money laundering.
Today’s sentences follow prior convictions of Backpage leadership and corporate entities:
- In April 2018, Carl Ferrer, 57, of Frisco, Texas, who was Backpage’s co-founder and CEO, pleaded guilty to conspiracy to facilitate prostitution using a facility in interstate or foreign commerce and to engage in money laundering.
- In August 2018, Dan Hyer, 54, of Dallas, who was Backpage’s Sales & Marketing Director, pleaded guilty to conspiracy to facilitate prostitution using a facility in interstate or foreign commerce.
- In April 2018, several Backpage-related corporate entities, including Backpage LLC, pleaded guilty to conspiracy to engage in money laundering.
Co-conspirator James Larkin, 73, died on July 31, 2023, before trial began.
Principal Deputy Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Gary M. Restaino for the District of Arizona, Special Agent in Charge Carissa Messick of the IRS Criminal Investigation (CI) Phoenix Field Office, Acting Assistant Director Jodi Cohen of the FBI’s Criminal Investigative Division, Special Agent in Charge Jose A. Perez of the FBI Phoenix Division, and Acting Inspector in Charge Matthew Shields of the U.S. Postal Inspection Service (USPIS) Los Angeles Division made the announcement.
Assistant U.S. Attorneys Kevin Rapp, Margaret Perlmeter, and Peter Kozinets for the District of Arizona and Trial Attorney Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section are prosecuting the case, with significant assistance from the U.S. Attorney’s Office for the Central District of California, Office of the California Attorney General, and Office of the Texas Attorney General. Assistant U.S. Attorney Joseph Bozdech for the District of Arizona is handling the asset forfeiture aspects of the case.
United Seating and Mobility, LLC, D/B/A Numotion, Agrees to Pay $13,500,000 to Resolve Alleged False Claims for Custom WheelchairsRead the Press Release
PHOENIX, Ariz. – United States Attorney Gary M. Restaino announced today that United Seating and Mobility, LLC, d/b/a Numotion (Numotion), a Missouri limited liability company that provides specialized durable medical equipment, agreed to pay $13,500,000 to resolve allegations that the company violated the federal False Claims Act (FCA).
The settlement resolves allegations by the United States that Numotion submitted false claims to Medicare and other federal health care programs for custom wheelchairs and wheelchair parts. According to the United States’ allegations, the claims were false because they were based on patient evaluations that were unlawfully authored, completed, or signed by Numotion employees rather than being authored, completed, or signed by qualified medical professionals. Additional details of the United States’ allegations are set forth in the settlement agreement, available here.
Numotion Settlement Agreement“The custom wheelchairs and parts involved in this investigation are critical to helping patients who rely on federal health care programs, including America’s veterans, meet their medical needs and thrive,” said United States Attorney Gary Restaino. “But medical professionals must evaluate the need, not sales personnel from the supplier. Thanks to Numotion for self-reporting this conduct and cooperating in the investigation, and to the Inspector General for protecting the public fisc and ensuring accountability.”
“Providers that participate in the federal health care system are required to obey the laws and regulations meant to protect the integrity of these programs,” said Special Agent in Charge Timothy DeFrancesca of the U.S. Department of Health & Human Services Office of the Inspector General (HHS-OIG). “HHS-OIG will continue working with our law enforcement partners to hold providers accountable when they do not follow these statutes.”
The settlement resolves three qui tam, or whistleblower, lawsuits filed in the United States District Court for the District of Arizona. Under the qui tam provisions of the False Claims Act, private citizens may bring civil actions on behalf of the United States and share in any recovery obtained. The lawsuits resolved by the settlement agreement are:
- United States ex rel. Weiss v. United Seating & Mobility, LLC, d/b/a Numotion (CV-20-1573-PHX-SPL)
- United States ex rel. Vega v. United Seating and Mobility d/b/a Numotion, et al. (CV-21-1306-PHX-DJH)
- United States and State of Tennessee ex rel. Prager v. United Seating and Mobility LLC, d/b/a Numotion (CV-22-1899-PHX-CDB)
Through a series of self-disclosures, Numotion voluntarily reported several overpayments to the United States and cooperated with the United States’ investigation. The United States considered Numotion’s self-disclosures as one of several factors in reaching the settlement amount and the resolution of the case. The settlement is neither an admission of liability by Numotion, nor a concession by the United States that its claims are not well founded.
The U.S. Department of Health and Human Services – Office of Inspector General conducted the investigation in this case. The case was handled by the Affirmative Civil Enforcement Unit of the United States Attorney’s Office for the District of Arizona and by the Department of Justice, Civil Division, Commercial Litigation Branch, Fraud Section.
Individuals with information regarding fraud, waste, or abuse related to federal programs should contact the relevant federal agency. A list of agencies and contact information can be found at https://www.justice.gov/usao-az/agency-links.
CASE NUMBERS: CV-20-1573-PHX-SPL
CV-21-1306-PHX-DJH
CV-22-1899-PHX-CDB
RELEASE NUMBER: 2024-117_Numotion
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Mesa Business Owner Who Exploited the American Indian Health Plan Sentenced to over 5 Years for AHCCCS FraudRead the Press Release
PHOENIX, Ariz. –Diana Marie Moore, 44, of Mesa, was sentenced this week by United States District Judge Susan M. Brnovich to 66 months in prison, followed by three years of supervised release. Moore was also ordered to pay restitution to the Arizona Health Care Cost Containment System (“AHCCCS”) in the amount of $21,730,674.04. In addition, the Court ordered the forfeiture of four single-family homes owned by Moore as well as 117 other items, including seven luxury vehicles, designer apparel, luxury jewelry, and artwork. All the items were purchased by Moore using the proceeds of her fraud scheme. Moore pleaded guilty to Wire Fraud and Money Laundering on July 10, 2023.
Moore admitted that she owned two behavioral health counseling services, Harmony Family Services (HFS) and Harmony Family Services II (HFS II) and that she had also submitted the application for a third behavioral health counseling service, Logan Family Health, LLC (“LFH”). All three then applied to be medical providers for the Arizona Health Care Cost Containment System (AHCCCS), Arizona’s Medicaid agency- HFS applied in 2019, HFS II applied in 2020, and LFH applied in 2022. AHCCCS approved all three applications. At the time HFS and HFS II applied to AHCCCS, Moore failed to disclose her ownership interest in the other entity. Moore also failed to disclose her prior felony conviction, which was required to be disclosed on the AHCCCS application form.
Moore further admitted that she engaged in a fraudulent billing practice targeting AHCCCS and exploiting a program that enables Native Americans to seek behavioral health treatment without first obtaining a pre-payment review. Specifically, starting in January 2020, Moore began obtaining AHCCCS identification numbers for AHCCCS enrollees by paying other providers to transport AHCCCS enrollees to the HFS or HFS II facility for a single day, and then obtaining enrollees’ identification numbers once they arrived. Nearly all of the AHCCCS enrollees billed for by Moore were members of the American Indian Health Plan. After these AHCCCS enrollees left the HFS or HFS II facility, Moore would submit bills to AHCCCS, which falsely claimed that HFS and HFS II continued providing services to those same enrollees for up to 90 days. Moore regularly claimed that HFS or HFS II provided counseling services to a given AHCCCS enrollee for eight or more hours each day, five days a week, for months in a row, even though Moore knew such services were not provided. In addition, Moore submitted claims to AHCCCS, which falsely claimed that HFS or HFS II provided services to certain AHCCCS Enrollees who were, in fact, deceased or imprisoned at the time Moore claimed to have provided services.
At the sentencing hearing, the Court noted the particular harm done to the Native American populations in Arizona as a result of this type of fraud.
“The American Indian Health Plan exists to help an underserved community surmount barriers to treatment,” said United States Attorney Gary Restaino. “Defendant misused this program, and the unique identification numbers generated by it, to benefit herself -- in some cases by billing for patients she never treated, and in other cases by falsely inflating the duration of treatment. Thanks to the Internal Revenue Service for its financial acumen in bringing defendant to justice, and to the AHCCCS Inspector General’s Office for its valuable assistance.”
“The sentencing of Diana Moore should be a reminder there are serious consequences to this type of criminal behavior,” said Carissa Messick, IRS CI Special Agent in Charge, Phoenix Field Office. “IRS CI methodically works to bring fraudsters to justice and restore confidence in our public programs.”
Internal Revenue Service Criminal Investigation conducted the investigation in this case. Assistant U.S. Attorney Aron Ketchel, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-23-0040-SMB
RELEASE NUMBER: 2024-116_Moore# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Solar Company Owner Indicted for FraudRead the Press Release
TUCSON, Ariz. – On August 14, 2024, a federal grand jury in Tucson returned an 11-count indictment against Daniel Jarrett Ridlinghafer, 37, of Marana for Bank Fraud, Wire Fraud, and Mail Fraud.
The indictment alleges that Ridlinghafer owned and operated Psalm 112 LLC, d.b.a. Tucson Solar Pros, a solar installation company based in Tucson. Beginning in January 2021 and continuing through July 7, 2022, Ridlinghafer engaged in a scheme to defraud at least 25 homeowners and two federally insured credit unions. Ridlinghafer, or his employees, signed fraudulent contracts with victim homeowners for the purchase and installation of solar power electrical systems on the victims’ homes. The victim credit unions then funded loans for many of the projects based on those contracts. After receiving payment from the victim homeowners and credit unions, Ridlinghafer abandoned the projects, failed to provide the victim homeowners any of the equipment they had purchased, and did not install any solar equipment on their homes. Ridlinghafer allegedly defrauded the victim homeowners and credit unions out of at least $695,000.00.
A conviction for Bank Fraud carries a maximum penalty of 30 years in prison and a $1,000,000.00 fine. A conviction for Mail Fraud and Wire Fraud carries a maximum penalty of 20 years in prison and a $250,000.00 fine.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The Federal Bureau of Investigation conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: CR-2024-05232 TUC-RM
RELEASE NUMBER: 2024-115_Ridlinghafer# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Sex Offender Sentenced to 40 Years in Prison for Sex Trafficking ChargesRead the Press Release
TUCSON, Ariz. – Maurice Fitzgerald Alexander, Jr., 33, of Memphis, Tennessee, was sentenced last week by United States District Judge James A. Soto to 40 years in prison, followed by lifetime supervised release.
Earlier this year, Alexander was convicted by a federal jury after a three-day trial of Sex Trafficking of a Minor by Force, Fraud, or Coercion. The jury also found Alexander guilty of one count of Conspiracy to Commit Sex Trafficking of a Minor Using Force, Fraud, or Coercion, one count of Transportation with Intent to Engage in Criminal Sexual Activity, and one count of Production of Child Pornography. At the time of the offense, Alexander was already required to register as a sex offender.
On October 4, 2021, officers from the Tucson Police Department responded to a 911 call from the victim and learned she had possibly been trafficked for the purposes of sexual exploitation. A Tucson Police detective quickly responded to a local hospital and immediately initiated an investigation. The investigation revealed that Alexander trafficked the victim, who was 14 years old at the time, through Arizona, New Mexico, Texas, and Colorado between August 19, 2021, and October 4, 2021. Department of Homeland Security Special Agents and Task Force Officers arrested Alexander in Tucson on October 21, 2021. A subsequent review of Alexander’s phone showed that Alexander also forced the minor victim to create photos and videos depicting sexually explicit conduct that were later used in advertisements on social media and various other websites commonly used for prostitution.
The Tucson Police Department and Homeland Security Investigations conducted the investigation in this case. Assistant United States Attorneys Nathaniel J. Walters and Monica E. Ryan, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-21-02972-JAS-EJM
RELEASE NUMBER: 2024-114_Alexander# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Camp Verde Man Sentenced to 10 Years for Distributing Fentanyl and Methamphetamine Resulting in DeathRead the Press Release
PHOENIX, Ariz. – Robert Don Schield, 40, of Camp Verde, was sentenced on Wednesday by United States District Judge Dominic W. Lanza to 120 months in prison, followed by three years of supervised release. Schield pleaded guilty to the Distribution of Methamphetamine and Fentanyl that resulted in an overdose death on May 17, 2024.
In February 2022, Schield sold the victim six fentanyl pills and 10 grams of methamphetamine. The Yavapai County Sheriff’s Office responded to the victim’s home the next morning, after her friend discovered her unresponsive and not breathing. The medical examiner found the victim’s cause of death to be from methamphetamine and fentanyl intoxication. Schield was arrested in March 2022, after selling an ounce of methamphetamine and 10 fentanyl pills to another customer for $300.
“We cannot let those who introduce poison into Arizona’s communities walk about with impunity,” said United States Attorney Gary Restaino. “One pill can kill, and therefore one small drug transaction can lead to long time in prison. Many thanks to the Yavapai County Sheriff’s Office and the Flagstaff agents of the DEA for their compassion and diligence in this investigation.”
“This defendant's actions caused a tragic death,” said DEA Special Agent in Charge Cheri Oz. “DEA will not stop working with our law enforcement partners to protect our communities and hold those responsible who distribute deadly and dangerous drugs.”
“We’d like thank the DEA and the other organizations that worked so thoroughly with us on this case,” said Yavapai County Sheriff David Rhodes. “We would also like to thank the U.S. Attorney’s Office for making sure that deaths that result from these insidious narcotics will not go unpunished.”
The Arizona Department of Health Services reports that so far in 2024, there have been 665 confirmed opioid deaths (https://www.azdhs.gov/opioid/dashboards/index.php#overdose-deaths) and 4,781 emergency and inpatient visits involving suspected opioid overdose in Arizona (https://www.azdhs.gov/opioid/dashboards/index.php#emergency-inpatient-visits).
The Drug Enforcement Administration- Flagstaff POD, and Yavapai County Sheriff’s Office conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-22-8037-PCT-DWL
RELEASE NUMBER: 2024-113_Schield# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Arizona Man Pleads Guilty for Making Online Threats Against Public Servants Including Federal OfficialsRead the Press Release
PHOENIX, Ariz. - Michael Lee Tomasi, 37, of Rio Verde, Arizona, pleaded guilty yesterday to making threats against federal officials.
From May 2021 through November 2023, while living in Colorado and Arizona, Tomasi used a social media platform to express a desire to incite violence and threaten a variety of individuals and groups, including a city district attorney, a state court judge, a member of Congress and other federal officials and law enforcement officers. Tomasi pleaded guilty to posting a threat on Aug. 26, 2023, to kill FBI agents in order to impede, intimidate, or interfere with FBI agents’ performance of their official duties. Specifically, Tomasi admitted that, on that day, he posted: “Shoot the FBI first and ask questions later. . . . Any FBI [] have a problem with that[,] come to my house and see what happens. Shoot before they even pull their guns out of their trunk and you shoot to kill.”
“Threats of violence against elected officials, judges, and FBI agents pose immense danger to the physical safety of individual victims and undermine our very system of government,” said Attorney General Merrick B. Garland. “The Justice Department will hold to account anyone who targets public servants with illegal threats of violence.”
“Threatening law enforcement officers and elected officials strikes at the heart of our communities and our democracy,” said FBI Director Christopher Wray. “The men and women of the FBI work tirelessly every day to defend our homeland and protect the American people. I am proud of their selfless spirit — putting themselves in harm’s way to keep others safe — and we will hold accountable anyone who threatens them.”
"This disgruntled defendant threatened officials from all three branches of government,” said U.S. Attorney Gary Restaino for the District of Arizona. “Moreover, he was prepared to carry out his threats: when arrested he had a loaded handgun in his vehicle, as well as other firearms and body armor in his home. The prosecution of threats offenses makes Americans safer.”
Tomasi pleaded guilty to making threats against federal officials. He is scheduled to be sentenced on Oct. 23, and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI is investigating the case.
Assistant U.S. Attorneys Raymond K. Woo and Abbie Broughton Marsh for the District of Arizona are prosecuting the case, with valuable assistance provided by Trial Attorney Dmitriy Slavin of the National Security Division’s Counterterrorism Section.
CASE NUMBER: CR-23-01751-PHX-DWL
RELEASE NUMBER: 2024-112_Tomasi# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Arizona Man Pleads Guilty for Making Online Threats Against Public Servants Including Federal OfficialsRead the Press Release
Michael Lee Tomasi, 37, of Rio Verde, Arizona, pleaded guilty yesterday to making threats against federal officials.
From May 2021 through November 2023, while living in Colorado and Arizona, Tomasi used a social media platform to express a desire to incite violence and threaten a variety of individuals and groups, including a city district attorney, a state court judge, a member of Congress and other federal officials and law enforcement officers. Tomasi pleaded guilty to posting a threat on Aug. 26, 2023, to kill FBI agents in order to impede, intimidate, or interfere with FBI agents’ performance of their official duties. Specifically, Tomasi admitted that, on that day, he posted: “Shoot the FBI first and ask questions later. . . . Any FBI [] have a problem with that[,] come to my house and see what happens. Shoot before they even pull their guns out of their trunk and you shoot to kill.”
“Threats of violence against elected officials, judges, and FBI agents pose immense danger to the physical safety of individual victims and undermine our very system of government,” said Attorney General Merrick B. Garland. “The Justice Department will hold to account anyone who targets public servants with illegal threats of violence.”
“Threatening law enforcement officers and elected officials strikes at the heart of our communities and our democracy,” said FBI Director Christopher Wray. “The men and women of the FBI work tirelessly every day to defend our homeland and protect the American people. I am proud of their selfless spirit — putting themselves in harm’s way to keep others safe — and we will hold accountable anyone who threatens them.”
"This disgruntled defendant threatened officials from all three branches of government,” said U.S. Attorney Gary Restaino for the District of Arizona. “Moreover, he was prepared to carry out his threats: when arrested he had a loaded handgun in his vehicle, as well as other firearms and body armor in his home. The prosecution of threats offenses makes Americans safer.”
Tomasi pleaded guilty to making threats against federal officials. He is scheduled to be sentenced on Oct. 23, and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI is investigating the case.
Assistant U.S. Attorneys Raymond K. Woo and Abbie Broughton Marsh for the District of Arizona are prosecuting the case, with valuable assistance provided by Trial Attorney Dmitriy Slavin of the National Security Division’s Counterterrorism Section.
Human Smuggling Coordinator Sentenced to PrisonRead the Press Release
PHOENIX, Ariz. – Mauricio Andrade-Garcia, 20, of Heber City, Utah, was sentenced yesterday by United States District Judge Douglas L. Rayes to 10 months in prison, followed by three years of supervised release. Andrade-Garcia pleaded guilty to Conspiracy to Transport Illegal Aliens for Profit on March 14, 2024.
Andrade-Garcia recruited drivers through social media sites, including Snapchat, to pick up undocumented noncitizens (UNCs) in Southern Arizona and to transport them further into the United States for profit. He coordinated with his co-conspirators, providing them with instructions on how and where to pick up the UNCs. He shared GPS coordinates for the UNCs’ locations and transportation routes designed to circumvent detection by law enforcement. Three of Andrade-Garcia’s co-conspirators were arrested while transporting the UNCs and convicted in separate cases in CR-23-00482-TUC-JCH and CR-23-00108-TUC-RM.
Homeland Security Investigations–Casa Grande and Customs and Border Protection’s United States Border Patrol–Tucson Sector conducted the investigation. Assistant United States Attorney Christine D. Keller, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-23-01024-PHX-DLR
RELEASE NUMBER: 2024-111_Andrade-Garcia# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Two Tucson Men Admit to Conspiring to Travel to the Middle East to Fight for IsisRead the Press Release
TUCSON, Ariz. – Ahmed Mahad Mohamed, 26, and Abdi Yemeni Hussein, 25, both citizens of Somalia, who were living in Tucson at the time of the offense, pleaded guilty last week to Conspiracy to Provide Material Support and Resources to a Designated Foreign Terrorist Organization, the Islamic State of Iraq and al-Sham (ISIS). Sentencing is scheduled for October 11, 2024, before United States District Judge Jennifer G. Zipps.
From late 2018 until their arrest on July 26, 2019, Mohamed and Hussein conspired with each other to travel to Egypt for the purpose of fighting for ISIS in the Sinai Peninsula.
Beginning in at least August 2018, Mohamed sought out other ISIS supporters online, stating that he wanted to travel to ISIS-controlled territory to become “the beheading guy” and martyr himself. Mohamed also stated that his only dream was to go to Syria, join ISIS, and “fight jihad,” and he indicated that his friend, Hussein, also desired to travel to ISIS territory abroad. Mohamed and Hussein met in person in 2019 to discuss their plans. Mohamed reiterated that his goal was to fight for ISIS abroad. Hussein told Mohamed that they would either reach ISIS territory “or we go to jail,” and suggested attacking the White House if they were prevented from traveling.
By June 2019, the defendants began making travel arrangements to join ISIS. They both sold their cars and purchased plane tickets from Tucson to Cairo. On the morning of July 26, 2019, the defendants checked in for their flight at the Tucson International Airport, went through security screening, and walked to the departure gate. Mohamed was carrying approximately $10,000 that he and Hussein planned to use for travel expenses and to buy firearms. Once in Egypt, the defendants intended to smuggle themselves into the ISIS-controlled area of the Sinai Peninsula so they could work under the direction and control of ISIS. Before Mohamed and Hussein could board their flight, the FBI arrested them.
A conviction for Conspiracy to Provide Material Support and Resources to a Designated Foreign Terrorist Organization carries a maximum penalty of 20 years in prison, a fine of $250,000, or both. Both defendants have agreed to a judicial order of removal and will be removed from the United States to Somalia following any term of imprisonment.
The FBI’s Joint Terrorism Task Force conducted the investigation in this case. The United States Attorney’s Office, District of Arizona and the Department of Justice National Security Division’s Counterterrorism Section are handling the prosecution.
CASE NUMBER: CR-19-2162-TUC-JGZ
RELEASE NUMBER: 2024-109_Mohamed, et.al.# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.
Phoenix Man Sentenced to 51 Months in Prison for Threatening to Kill a Federal JudgeRead the Press Release
TUCSON, Ariz. – Clinton Mark Lewis, 52, of Phoenix, was sentenced on Monday by United States District Judge Scott H. Rash, to 51 months in prison. Lewis pleaded guilty to one count of Influencing, Impeding, or Retaliating Against a Federal Official by Threat on May 8, 2024.
On July 25, 2022, Lewis was in federal court for sentencing after a jury found him guilty of possessing child pornography. As the district judge was pronouncing his sentence, Lewis erupted in court, shouting profanities and racial slurs at the judge. During his tirade, Lewis threatened to kill the judge and the judge’s grandchildren. As a result, Lewis was removed from the courtroom.
On April 27, 2023, Lewis was indicted on three separate charges: Influencing, Impeding, or Retaliating Against a Federal Official by Threat, Obstruction of Justice, and Contempt. On May 8, 2024, Lewis pleaded guilty to Influencing, Impeding, or Retaliating Against a Federal Official.
At the sentencing hearing, Lewis was sentenced to 51 months in prison, which the court ordered to run consecutive to the 151 months in prison Lewis is currently serving for possession of child pornography.
“Due process demands that a defendant have a meaningful opportunity to speak with a District Judge at sentencing,” said United States Attorney Gary Restaino. “But the right to allocute is not a license to antagonize or intimidate. We will continue to separately charge those who threaten judicial officers during court proceedings, and to seek additional, consecutive sentences to discourage and deter this criminal behavior.”
“The sentence handed down today underscores the seriousness of threatening a U.S. Marshals Service protectee,” said Acting U.S. Marshal Van Bayless. “Our very democracy is based on the premise that the Judiciary operate free from harm and intimidation of any type. I am grateful to our investigators and the U.S. Attorney’s prosecutors for their continued dedication and diligence in the protection of the judicial process.”
The United States Marshals Service Judicial Security Unit conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-23-583-TUC-SHR
RELEASE NUMBER: 2024-110_Lewis# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Tucson Man Sentenced to 57 Months in Prison for Assaulting a Federal Officer with a VehicleRead the Press Release
TUCSON, Ariz. – Guadalupe Fermin Ramirez, 37, of Tucson, was sentenced last week by United States District Judge John C. Hinderaker to 57 months in prison, followed by three years of supervised release. Ramirez pleaded guilty to Assault on a Federal Officer on May 9, 2024.
On November 30, 2023, the Pascua Yaqui Police Department (PYPD) received a 911 call from an individual who reported that his vehicle had been stolen from his residence by Ramirez. The investigation revealed that, after stealing the vehicle, Ramirez drove it to a gas station on the Pascua Yaqui Indian Reservation and subsequently attempted to steal another vehicle, a delivery truck. Ramirez took the delivery driver’s personal belongings from inside the truck, and then fled from the area in the originally stolen vehicle.
During PYPD’s pursuit, Ramirez deliberately collided into the driver’s side of a police car while driving approximately 45 mph. The victim officer was able to disengage his seatbelt and tuck toward the center console of his vehicle before being struck to avoid injury, but the vehicle sustained substantial damage. After hitting the police vehicle, Ramirez sped away and ran several stop signs, causing two other vehicles to collide. Ramirez was apprehended shortly thereafter and arrested.
The Federal Bureau of Investigation and the Pascua Yaqui Police Department conducted the investigation in this case. Assistant United States Attorneys Carin C. Duryee and Brandon Bolling, District of Arizona, Tucson, handled the prosecution, along with Special Assistant United States Attorney Russell E. Boatwright from the Pascua Yaqui Prosecutor’s Office.
CASE NUMBER: CR-23-02362-TUC-JCH
RELEASE NUMBER: 2024-108_Ramirez# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Phoenix Man Charged for Role as Recruiter and Coordinator of Alien SmugglersRead the Press Release
TUCSON, Ariz. – Nathan Espinoza Jr., 22, of Surprise, was arrested last week for his role in recruiting a driver and coordinating the transportation of two undocumented noncitizens in March 2024, one of whom suffered fatal injuries after jumping out of the driver’s vehicle while it was moving. Espinoza was charged by criminal complaint with one count of Conspiracy to Transport Illegal Aliens for Profit.
The complaint alleges that, since at least March 2024, Espinoza has conspired with others to recruit drivers to transport undocumented noncitizens, in exchange for which he received approximately $1,000 per person transported into the United States. The complaint further alleges that Espinoza has acted as a middleman for other smuggling coordinators and has helped coordinate numerous smuggling loads, including the March 2024 smuggling event that resulted in the death of one of the noncitizen passengers.
A complaint is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
This arrest is a result of the coordinated efforts of Joint Task Force Alpha (JTFA). Attorney General Merrick B. Garland established JTFA in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security, to combat the rise in prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, and Honduras. This work was recently expanded to Panama and Colombia. The Task Force focuses on disrupting and dismantling smuggling and trafficking networks that abuse, exploit, or endanger migrants, pose national security threats, and are involved in organized crime.
Homeland Security Investigations is conducting the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: 24-MJ-03713-TUC-N/A (EJM)
RELEASE NUMBER: 2024-107_Espinoza# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Human Smuggling Coordinator Sentenced to Six Years in PrisonRead the Press Release
PHOENIX, Ariz. – Jesus Alexandro Sanchez-Armenta, 23, of Phoenix, was sentenced last month by United States District Judge Diane J. Humetewa to 72 months in prison, followed by five years of supervised released. Sanchez-Armenta pleaded guilty to Conspiracy to Transport Illegal Aliens for Profit on February 22, 2024.
Sanchez-Armenta coordinated and/or recruited his co-conspirators, through social media sites, including Snapchat, to pick up undocumented noncitizens (UNCs) in Southern Arizona and to transport them further into the United States for profit. Sanchez-Armenta provided his co-conspirators with instructions on how and where to pick up the UNCs. Either he or another member of the conspiracy would provide the co-conspirators with GPS coordinates for where to pick up the UNCs, and then provided them with transportation routes designed to circumvent detection by law enforcement.
Homeland Security Investigations–Casa Grande and Customs and Border Protection’s United States Border Patrol–Tucson Sector conducted the investigation. Assistant U.S. Attorney Stuart Zander, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-23-0259-PHX-DJH
RELEASE NUMBER: 2024-106_Sanchez-Armenta# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Sacaton Man Sentenced to 10 Years for Using an Axe and a Knife Causing Serious Bodily InjuryRead the Press Release
PHOENIX, Ariz. – He Tehila Brave Heart, 41, originally of Pine Ridge, South Dakota, but living in Sacaton at the time of the offense, was sentenced last week by United States District Judge Dominic W. Lanza to 10 years in prison, followed by three years of supervised release. Brave Heart is a member of the Oglala Sioux Tribe.
On April 4, 2023, Brave Heart and his wife, Jacqulyn Brave Heart, beat and threatened to kill two victims, causing serious bodily injury. Brave Heart also stabbed one of the victims in the neck with a knife and hit her in the head with an axe. Brave Heart pleaded guilty on April 22, 2024, to Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury. Jacqulyn Brave Heart was sentenced to six years in prison on April 10, 2024, after pleading guilty to the same two charges on January 22, 2024.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Gila River Police Department. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-23-01247-PHX-DWL
RELEASE NUMBER: 2024-105_Brave Heart# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Former Morgan Stanley Financial Advisor Pleads Guilty to Defrauding His Elderly ClientRead the Press Release
TUCSON, Ariz. –Ronald Diaz, 40, of Tucson, pleaded guilty on July 18, 2024, to Wire Fraud. Sentencing is scheduled for September 27, 2024, before United States District Judge Scott H. Rash.
While working as a financial advisor, Diaz engaged in a scheme to defraud an elderly client. To induce the victim into the scheme, Diaz falsely represented an investment opportunity in an “annuity” that “guaranteed” a 10% return. Between November 2020 and July 2022, to disguise his scheme, Diaz directed the victim to transfer $970,000 to Diaz’s family members. Diaz thereafter instructed his family members to distribute most of the victim’s funds back to Diaz. Once he received the funds, Diaz used large portions of the victim’s money for his own personal benefit including gambling at casinos, making a down payment on a 2021 Range Rover, paying credit card debt, remodeling his family pool, paying his mortgage, and paying other personal expenses. Diaz made some “interest” payments to entice the victim into providing additional money throughout the scheme. None of the victim’s money was used towards any legitimate investment. As a result of the scheme, the victim lost over $867,000. As part of his plea agreement, Diaz will be required to pay restitution to the victim’s estate.
A conviction for Wire Fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, or both.
The Federal Bureau of Investigation conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: CR-24-04092-TUC-SHR
RELEASE NUMBER: 2024-104_Diaz# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Fugitive "Queen of the South" Returned to United States to Face Drug Trafficking and Money Laundering ChargesRead the Press Release
TUCSON, Ariz. – Amanda Rachelle Miller, 33, of Tucson, was apprehended in Culiacán, Sinaloa, Mexico and deported to the United States on May 30, 2024, to face three felony indictments in the District of Arizona. Miller is a U.S. citizen and had been a fugitive for approximately three-and-a-half years at the time of her arrest in Mexico. Miller made her initial court appearance before United States Magistrate Judge Jacqueline Rateau on July 3, 2024, and was ordered detained in custody.
Federal agents first encountered Miller in late 2020, at the culmination of an investigation into narcotics distribution occurring out of various Tucson-area motels. As alleged in court filings, on November 12, 2020, agents conducted a final enforcement operation at a downtown Tucson motel and apprehended Miller as she ran from the scene. In one of the rooms, agents discovered evidence of Miller’s involvement in drug trafficking, including quantities of suspected methamphetamine, heroin, and fentanyl; a vacuum-sealing device; a digital scale; over $25,000 in cash; and two suspected drug distribution ledgers, one of which had Miller’s first name written on the back cover. Miller was charged in federal court by complaint on November 13, 2020, and later indicted on December 1, 2021. She absconded after being placed on pre-trial release and fled to Mexico.
In late September 2021, an undercover officer, posing as a bulk purchaser of narcotics, established contact with Miller over social media. Miller was using the alias, “Reina Sur,” or “Queen of the South.” As alleged in court documents, Miller represented to the undercover officer that she was “direct from [the] [S]inaloa [C]artel.” Over the ensuing months, while in communication with the undercover officer, she is alleged to have orchestrated multiple narcotics sales, which revealed the network of criminal associates conducting business on her behalf in southern Arizona. During their investigation, agents also were able to link Miller, through recorded communications, to two historical drug seizures, in April and August 2021.
Miller has been indicted in three federal criminal cases in the District of Arizona on the following charges:
In case number 21-CR-03072-TUC-SHR, Miller was charged with Conspiracy to Possess with Intent to Distribute Heroin and Methamphetamine, and Possession with Intent to Distribute Heroin and Methamphetamine. This indictment relates to the incident that allegedly occurred on November 12, 2020.
In case number 21-CR-02360-TUC-JGZ, Miller was charged with Conspiracy to Distribute Fentanyl and Methamphetamine, and Possession with Intent to Distribute Fentanyl and Methamphetamine. This indictment relates to drug transactions that allegedly occurred in April and August 2021, while Miller was a fugitive.
In case number 22-CR-02454-TUC-RCC, Miller was charged with Conspiracy to Distribute Fentanyl, Methamphetamine, Cocaine, Heroin, and Marijuana, Possession with Intent to Distribute Fentanyl and Methamphetamine, Conspiracy to Launder Monetary Instruments, and Money Laundering. This indictment relates to drug transactions and money laundering activity that allegedly occurred from September 2021 through the end of 2022, again while Miller was a fugitive from justice.
The maximum penalties for the numerous charges range from 20 years in prison to life in prison and fines ranging from $500,000 to $10,000,000.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (“OCDETF”) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, Homeland Security Investigations, the U.S. Marshals Service, the U.S. Postal Service Office of Inspector General, and the Arizona Department of Public Safety are conducting the investigation in this case. Assistant U.S. Attorneys Michael R. Lizano, Ashley Culver, and David Petermann, District of Arizona, Tucson, are handling the prosecution.
CASE NUMBERS: CR-21-03072-TUC-SHR
CR-21-02360-TUC-JGZ
CR-22-02454-TUC-RCCRELEASE NUMBER: 2024-103_Miller
United States Attorney’s Office Releases 2024 Second Quarter Immigration Enforcement StatisticsRead the Press Release
PHOENIX, Ariz. – Today, the United States Attorney’s Office announced its immigration enforcement statistics for April 1, 2024, to June 30, 2024. These cases are prosecuted in partnership with the Tucson and Yuma Sectors of the Customs and Border Protection’s U.S. Border Patrol, along with Homeland Security Investigations, and assistance from other federal, state, and county agencies. In the three-month period ending June 30, 2024, the United States brought criminal charges in Arizona against 2,641 individuals who illegally entered or re-entered the United States. In its ongoing effort to deter unlawful immigration, the United States also filed 319 cases against individuals responsible for smuggling undocumented noncitizens to and within the District of Arizona. In this time period, the United States also prosecuted 53 reactive drug cases arising out of immigration ports of entry and checkpoints.
Reducing migrant smuggling and mitigating the risk to communities impacted by these offenses continue to be priorities for the Office and its law enforcement partners. Some of these prosecutions are directed against leaders and coordinators of alien smuggling organizations. Other prosecutions are aimed at deterring young adult drivers, often recruited over social media platforms, from engaging in this dangerous activity. Prosecutions against young drivers include cases brought against four juvenile smugglers during this time period.
Protecting law enforcement officers is a key part of border vigilance. During this time period, federal prosecutors brought charges against one defendant accused of assaulting federal officers.
These statistics represent United States Attorney’s Office prosecutions only. The numbers do not include individuals apprehended by immigration enforcement officials and subjected solely to administrative process.
RELEASE NUMBER: 2024-101_2024 Second Quarter Immigration Enforcement Statistics
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Tucson Man Sentenced to 42 Months in Prison for Child Pornography OffenseRead the Press Release
TUCSON, Ariz. – Enrique Adrian Yanez, 36, of Tucson, was sentenced last week by United States District Judge John C. Hinderaker to 42 months in prison, followed by lifetime supervised release. When Yanez is released from prison, he will be required to register as a sex offender. Yanez pleaded guilty on February 29, 2024, to one count of Knowing Access of Child Pornography.
During the summer of 2022, special agents with Homeland Security Investigations (HSI) learned that Yanez was distributing child pornography files through a peer-to-peer file-sharing network. After HSI executed a search warrant on Yanez’s residence, agents located additional child pornography files on a computer belonging to Yanez.
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 U.S. Attorneys’ Offices and the 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.justice.gov/psc.
Homeland Security Investigations, Nogales, conducted the investigation in this case. Assistant United States Attorney Nathaniel J. Walters, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-23-00247-TUC-JCH
RELEASE NUMBER: 2024-102_Yanez# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Man Pleads Guilty to Making Threats to Arizona Election OfficeRead the Press Release
An Alabama man pleaded guilty today to sending threatening messages to election workers with Maricopa County Elections in Phoenix.
“The functioning of our democracy requires that our country’s public servants be able to do their jobs without fearing for their lives,” said Attorney General Merrick B. Garland. “We have no tolerance for this kind of heinous criminal conduct and the danger it poses to people’s safety and to our democratic process. Threats and acts of violence targeting those who serve the public will be met with the full force of the United States Justice Department.”
“Violent threats to election workers are threats to our democracy and democratic process. We cannot allow threats of violence against public servants to become normalized,” said FBI Director Christopher Wray. “The FBI takes seriously all threats of violence against public officials and will continue to pursue threats and acts of violence aimed at election workers.
“Brian Ogstad repeatedly threatened to kill Maricopa County election workers and officials,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “As today’s guilty plea demonstrates, the Department is committed to holding accountable those who target election workers and officials with threats of violence. I am especially grateful to the Election Threats Task Force, which continues to spearhead the Department’s efforts to ensure that public servants who administer our elections can do their jobs free from threats and intimidation.”
“This guilty plea should send a message to anyone who tries to take the rule of law into their own hands through vigilante justice,” said U.S. Attorney Gary M. Restaino for the District of Arizona. “But it also showcases the resilience of public servants. Thanks to the election professionals in Maricopa County who have worked courageously to maintain free and fair elections in spite of the threats received.”
According to court documents, on Aug. 2, 2022, Arizona held primary elections for federal and state officeholders, including a gubernatorial primary election that received nationwide media coverage. From the day of the election through Aug. 4, 2022, Brian Jerry Ogstad, 60, of Cullman, sent multiple threatening direct messages to an Instagram social media account maintained by Maricopa County Elections. For instance, on or about Aug. 3, 2022, Ogstad stated, (1) “You did it! Now you are [expletive]. Dead. You will all be executed for your crimes”; (2) “[expletive] you! You are caught! They have it all. You [expletive] are dead”; (3) “You are lying, cheating [expletive] . . . you better not come in my church, my business or send your kids to my school. You are [expletive] stupid if you think your lives are safe”; and (4) “You [expletive] are so dead.” On or about Aug. 4, 2022, Ogstad also stated, “[Y]ou people are so ducking [sic] stupid. Everyone knows you are lots [sic], cheats, frauds and in doing so in relation to elections have committed treason. You will all be executed. Bang [expletive]!”
Ogstad pleaded guilty to one count of making a threatening interstate communication. He is scheduled to be sentenced on Oct. 21 and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Phoenix Field Office is investigating the case, with substantial assistance from the FBI Birmingham Field Office.
Trial Attorney Tanya Senanayake of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorney Mary Sue Feldmeier for the District of Arizona are prosecuting the case.
This case is part of the Justice Department’s Election Threats Task Force. Announced by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa Monaco in June 2021, the task force has led the Department’s efforts to address threats of violence against election workers, and to ensure that all election workers—whether elected, appointed, or volunteer—are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and U.S. Attorneys’ Offices throughout the country. The task force is continuing this work and supporting the U.S. Attorneys’ Offices and FBI Field Offices nationwide as they carry on the critical work that the task force has begun.
The task force is led by the Criminal Division’s Public Integrity Section and includes several other entities within the Justice Department, including the Criminal Division’s Computer Crime and Intellectual Property Section, Civil Rights Division, National Security Division, and FBI, as well as key interagency partners, such as the Department of Homeland Security and U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.
To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found at www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at www.tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.
Kingman Felon Indicted for Distributing Firearms, Destructive Devices, Explosives, and DrugsRead the Press Release
PHOENIX, Ariz. –Last week, a federal grand jury in Phoenix returned an eight-count indictment against Matthew Edward Dach, 46, of Kingman, for Possession of a Firearm and Ammunition by a Felon, Distribution of Explosive Materials by a Non-Licensee, Distribution of Methamphetamine, Using and Carrying a Firearm (Destructive Device) During a Drug Trafficking Crime, Possession of an Unregistered Firearm, and Transfer of a Firearm for Use in a Crime of Violence.
The indictment alleges that, in May and June 2024, Dach sold a rifle, ammunition, homemade explosives, and methamphetamine to an undercover agent working for the Bureau of Alcohol, Tobacco, Firearms and Explosives. Dach also sold two homemade destructive devices, which he made in his home in Kingman, to the undercover agent. The undercover agent told Dach that he needed a device to physically harm a witness who was testifying in a federal trial. Dach made and sold one of the destructive devices for that alleged purpose and then sold the other destructive device to the undercover agent during a sale of methamphetamine and explosives. Dach has previous felony convictions for drug offenses, burglary, vehicle theft, and weapons offenses.
A conviction for Distribution of Explosive Materials by a Non-Licensee and Possession of an Unregistered Firearm carries a maximum penalty of 10 years in prison, $250,000 fine, or both. A conviction for Possession of a Firearm and Ammunition by a Felon and Transfer of a Firearm for Use in a Crime of Violence carries a maximum penalty of 15 years in prison, $250,000 fine, or both. A conviction for Distribution of Methamphetamine carries a maximum penalty of 20 years in prison, a $1,000,000 fine, or both. A conviction for Using and Carrying a Firearm (Destructive Device) During and in Relation to a Drug Trafficking Crime carries a maximum penalty of 30 years to life in prison, $250,000 fine, or both.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation in this case, with assistance from the Mohave County Sheriff’s Office and the Arizona High Intensity Drug Trafficking Area’s (HIDTA) Mohave Area General Narcotics Enforcement Team (MAGNET). HIDTA is a grant-funded initiative of the Office of National Drug Control Policy (ONDCP) that provides assistance to Federal, state, local, and tribal law enforcement agencies operating in areas determined to be critical drug trafficking regions of the United States. The U.S. Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution.
CASE NUMBER: CR-24-08073-PHX-MTL
RELEASE NUMBER: 2024-100_Dach# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Sells Man Sentenced to 235 Months in Prison for Sexual Abuse of a MinorRead the Press Release
TUCSON, Ariz. – Roy Samuel Paredes, 64, of Tucson, was sentenced by United States District Judge James A. Soto on June 24, 2024, to 235 months in prison, followed by a lifetime term of supervised release. Paredes pleaded guilty to Sexual Abuse of a Minor on November 8, 2023.
In the summer of 2021, Paredes, an enrolled member of the Tohono O’odham Nation, molested a young girl on the Tohono O’odham Nation in Sells, Arizona.
The Tohono O’odham Nation Police Department and Federal Bureau of Investigation conducted the investigation in this case. Assistant U.S. Attorney Matthew C. Cassell, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-22-1914-TUC-JAS
RELEASE NUMBER: 2024-098_Paredes# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Narcotics Trafficker Sentenced to PrisonRead the Press Release
TUCSON, Ariz. – Reynaldo Parra-Villagrana, 27, of Tucson, was sentenced last week by United States District Judge Rosemary Márquez to 33 months in federal prison, followed by 60 months of supervised release, for his role in a cross-border narcotics distribution conspiracy. Parra-Villagrana pleaded guilty to Possession with Intent to Distribute Methamphetamine on December 18, 2023.
In May 2019, during a multi-year investigation by the Drug Enforcement Administration (“DEA”), Parra-Villagrana delivered 878.8 grams of pure methamphetamine to an undercover officer in the parking lot of a sporting goods store in Tucson. Parra-Villagrana was acting on behalf of a Mexico-based drug supplier when he delivered the methamphetamine to the undercover officer.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (“OCDETF”) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The Drug Enforcement Administration, High Intensity Drug Trafficking Area Task Force Tucson, conducted the investigation in this case. Assistant United States Attorney Michael R. Lizano, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-22-02352-TUC-RM
RELEASE NUMBER: 2024-097_Parra-Villagrana# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Jury Convicts Phoenix Man of Assault on a Federal Officer and Alien SmugglingRead the Press Release
TUCSON, Ariz. – Michael Leroy Witt, 55, of Phoenix, was convicted by a federal jury last week of Assault on a Federal Officer Causing Bodily Injury, Conspiracy to Transport Illegal Aliens for Profit, and Transportation of Illegal Aliens for Profit. The jury also found that Witt placed human life in jeopardy during and in relation to his alien smuggling offenses.
The guilty verdicts came after a three-day trial before United States District Judge John C. Hinderaker. Witt’s sentencing is set for October 8, 2024.
On February 20, 2023, a U.S. Border Patrol agent stopped Witt near Sonoita, on suspicion that Witt was transporting undocumented noncitizens. After Witt stopped and tried to wave the agent past him, the agent approached the driver’s side window and told Witt to turn off the vehicle. Witt did not comply with the agent’s instruction so the agent attempted to turn off the engine by reaching through the window. Witt then hit the gas pedal, leaving the agent hanging from the car window. The acceleration caused the agent to be dragged alongside the vehicle as it veered into the oncoming lane of traffic. The agent was able to turn the vehicle off and bring it to a stop on the opposite side of the road. In the backseat of the vehicle, Witt had concealed two undocumented noncitizens who were being illegally transported further into the United States.
Customs and Border Protection’s United States Border Patrol conducted the investigation in this case. Assistant U.S. Attorneys Jennifer H. Berman and Ryan P. DeJoe, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-23-00389-TUC-JCH
RELEASE NUMBER: 2024-099_Witt# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Southern Arizona Man Indicted for Second Degree MurderRead the Press Release
TUCSON, Ariz. – Last week, a federal grand jury indicted Santiago Luis Valencia, Jr., 34, of Tucson, on one count of Second Degree Murder. Valencia is an enrolled member of the Pascua Yaqui Tribe.
It is alleged that on June 15, 2024, the victim and Valencia engaged in a verbal altercation that later turned physical. According to witnesses, Valencia was the initial aggressor and assaulted the victim by striking the back of the victim’s head against a windowsill on the exterior of the residence where the incident occurred. The victim died the following day as a result of the injuries sustained during the fight.
Second Degree Murder carries a maximum penalty of life in prison, a fine of up to $250,000, and five years of supervised release.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The Federal Bureau of Investigation conducted the investigation in this case. Assistant United States Attorneys Nathaniel J. Walters and Caroline Allen, District of Arizona, Tucson, are handling the prosecution.
CASE NUMBER: CR-24-04265-TUC-JGZ
RELEASE NUMBER: 2024-096_Valencia# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Arkansas Man Sentenced to 14 Years in Prison for Traveling to Phoenix to Meet Minor for SexRead the Press Release
PHOENIX, Ariz. – Andrew Lee Butler, 49, of Arkansas, was sentenced last week to 14 years in prison after a jury found him guilty on March 15, 2024, on two charges: Attempted Coercion and Enticement of a Minor and Interstate Travel to Meet a Minor for Sex.
Butler was arrested on December 8, 2022, at Phoenix Sky Harbor International Airport after he communicated with an undercover FBI special agent’s account on a social media platform that he believed belonged to a 13-year-old girl. During the 38 days of daily chats between Butler and the FBI special agent who posed as the girl, Butler quickly raised the idea of having sex with the girl and planned travel to Phoenix to be with her for a weekend in December 2022. Butler believed the girl’s grandmother would be her caretaker for the weekend and that her mother was out of town. He encouraged the girl to talk with a friend of his who he claimed had been sexually active with older men and who had avoided detection. Butler reserved a hotel room, a car, and planned to pick the girl up after school. Butler encouraged her to talk to her mother about getting the HPV vaccination prior to his arrival as she needed parental approval to get it since she was under age 16.
Butler’s phone revealed that he had done an internet search for statutory rape laws in Arizona. When Butler was arrested at the airport, he was found in possession of eight sex devices, an emergency contraceptive pill, condoms, and shower gel and a sponge in the girl’s favorite color.
The Federal Bureau of Investigation conducted the investigation in this case. Assistant U.S. Attorneys Gayle Helart and Jennifer Corbet, District of Arizona, Phoenix, AZ, handled the prosecution.
CASE NUMBER: CR-22-01695-PHX-SPL
RELEASE NUMBER: 2024-095_Butler# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.GPS Manufacturer Agrees to Pay $2.6M to Settle False Claims Act Allegations Relating to Improper Paycheck Protection Program LoanRead the Press Release
Hemisphere GNSS (USA) Inc., a satellite global positioning system manufacturer in Arizona that was purchased by CNH Industrial in 2023, has agreed to pay $2.6 million to settle allegations that it violated the False Claims Act by knowingly providing false information to apply for and receive forgiveness of a Paycheck Protection Program (PPP) loan to which the company was not entitled.
Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act, to provide emergency financial support to millions of Americans suffering the economic effects caused by the pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other expenses. In 2021, Congress offered a second round of forgivable PPP loans through the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act. When applying for PPP loans, borrowers were required to certify the truthfulness and accuracy of all information provided in their loan applications.
In February 2021, Hemisphere applied for a second round PPP loan and certified that it was eligible to receive the loan. Among other certifications, Hemisphere represented that no “entity created in or organized under the laws of the People’s Republic of China” owned or held 20% or more of an economic interest in Hemisphere. The company also certified that it did not retain as a board member a person who is a resident of the People’s Republic of China. At the time of its application, however, both of these certifications were allegedly false. For this reason, Hemisphere was not eligible for the second round PPP loan it received. After receiving this PPP loan, Hemisphere sought and received forgiveness of the total loan amount.
“PPP loans were an important but finite resource available to help eligible small businesses retain employees and keep their doors open,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When ineligible entities improperly sought PPP loans or forgiveness of those loans, they reduced the availability of this critical support for eligible businesses.”
“Legitimate PPP loans saved small businesses across America,” said U.S. Attorney Gary M. Restaino for the District of Arizona. “But not everyone used the program as intended. Our office will continue to hold accountable those business and individuals who misused the PPP program, as the settlement announced today reflects.”
“The settlement in this matter demonstrates the excellent results achieved through the combined efforts of SBA and the Department of Justice to uncover and forcefully respond to PPP misconduct,” said General Counsel Therese Meers of the Small Business Administration (SBA). “The federal government is strongly committed to identifying and aggressively pursuing any instances of fraud or misconduct within the Paycheck Protection Program.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by GNGH2 Inc. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. GNGH2, Inc. v. Hemisphere GNSS (USA) Incorporated, 2:22-cv-00224 (D. Arizona). GNGH2 will receive $260,000 as its share of the settlement.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of Arizona, with assistance from SBA’s Office of General Counsel and Office of the Inspector General.
Trial Attorney John F. Schifalacqua of the Justice Department’s Civil Division and Assistant U.S. Attorney Anne E. Nelson for the District of Arizona handled the matter.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international actors committing civil and criminal fraud and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Settlement