District of Colorado
Press releases recorded for this federal judicial district.
Colorado Springs Woman Charged with Distributing Fentanyl Which Resulted in the Death of a Juvenile Girl at SchoolRead the Press Release
DENVER - The U.S. Attorney’s Office for the District of Colorado announces that Alexis Nicole Wilkins has been charged by criminal complaint with distributing fentanyl resulting in death, in violation of Title 21, United States Code, Section 841(a)(1) and (b)(1)(C). According to court documents, Wilkins allegedly distributed a fentanyl pill to two juvenile females in the parking lot of the Citadel Mall in Colorado Springs, on or about December 2, 2021. The two juvenile girls to whom Wilkins allegedly dealt the fentanyl pill took the pill to school the next morning, where they shared it with a third juvenile female who overdosed and died in class as a result of taking the fentanyl.
Wilkins made her initial appearance in Federal Court in Denver on Wednesday, March 16, where she was advised by a Federal Magistrate Judge of the charge pending against her.
Distribution of fentanyl, a Schedule II controlled substance, carries a potential penalty of no less than 20 years and up to life in prison, a fine of no more than $1,000,000, and no less than three years of supervised release.
The Federal Bureau of Investigation, the Colorado Springs Police Department Metro, Vice, Narcotics, and Intelligence (MVNI) Unit, the El Paso County Sheriff’s Office, and the 4th Judicial District Attorney’s Office participated in the investigation. Assistant U.S. Attorneys Peter McNeilly and Alyssa Mance are handling the prosecution.
The charge in the criminal complaint is an allegation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Case Number: 21-mj-00046-STV
Arvada Woman Who Fired on Sheriff's Deputies after Robberies Sentenced to Federal PrisonRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Kitira Hays, age 21, of Arvada, was sentenced to 14.75 years in federal prison for her role in armed robberies of Lakewood and Westminster stores.
According to the plea agreement, on November 14, 2020, Hays drove two co-defendants to a Foot Locker in Lakewood and to a DSW located in Westminster so her co-defendants could rob the stores. At both locations, one co-defendant brandished a firearm as the other robbed the stores of clothing and shoes. Hays served as a getaway driver.
Later that same day, an Adams County Sheriff’s Deputy attempted to stop the car, but the co-defendant and Hays drove away at a high rate of speed. The deputy maintained pursuit and was joined by other deputies. When the deputies deployed stop sticks to stop the car, Hays, then riding in the passenger seat, used a silver revolver to shoot out the window of the vehicle at pursuing deputies, as the co-defendant drove around the stop sticks. Hays continued shooting at law enforcement as the co-defendant drove and ultimately crashed the vehicle in the trailer park where Hays lived. Hays continued to shoot at law enforcement before fleeing on foot
“Violent gun crime is a serious problem that threatens all of us,” said United States Attorney Cole Finegan. “Choosing to use a gun to commit a crime – and especially shooting at law enforcement – will send you to federal prison for a long time.”
“These armed and violent criminals jeopardized the safety of our communities and law enforcement partners,” said ATF Denver Field Division Special Agent in Charge David S. Booth. “These are exactly the sort of crimes we seek to identify, disrupt and upon which we focus all of our investigational efforts.”
United States District Court Senior Judge R. Brooke Jackson sentenced the Defendant on February 28, 2022. Judge Jackson denied the Defendant’s request to lessen the sentence, noting that anyone who attempts to shoot, injure, or kill a law enforcement officer would not receive a lesser sentence.
The ATF, together with the Adams County Sheriff’s Department, conducted the investigation. Assistant United States Attorneys Celeste Rangel and Melissa Hindman handled the prosecution of the case.
Case Number 21-cr-0024
Fugitive Arrested on Charges Related to 2019 Robbery of Brinks TruckRead the Press Release
DENVER - The U.S. Attorney’s Office for the District of Colorado announces that Justin White was arrested in New Mexico this week on charges related to the robbery of a Brinks Truck in 2019. Earlier this year, a federal Grand Jury in Denver issued a superseding indictment charging White, along with Jamarius Jones, David Taylor, and Jimmy Garrison for robbery affecting commerce and use of a firearm in furtherance of a crime of violence related to a robbery of a Brinks Truck on October 30, 2019. All of the indicted defendants have now been arrested. Taylor and Garrison are detained and currently set for trial.
Jamarius Jones pled guilty on February 18, 2022, before United States District Court Chief Judge Philip A. Brimmer to one count of robbery affecting commerce. Jones is detained and scheduled to be sentenced on May 27, 2022.
The FBI Rocky Mountain Safe Streets Task Force conducted the investigation. Assistant United States Attorney Brian Dunn is handling handled the prosecution of the case.
Charges in an indictment are allegations. The Defendants are presumed innocent unless and until proven guilty.
Case number 21-cr-00014
Texas Man Sentenced to Prison for Defrauding National On-line RetailersRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Adam George Redmon, age 38, of Austin, Texas, was sentenced to a year and a day in federal prison for mail fraud that victimized at least eleven national retailers and financial institutions.
According to court documents and facts presented in Court, over the course of a three-year period, Redmon repeatedly engaged in mail fraud by falsely telling victim-retailers that he failed to receive purchases he made online. By doing so, Redmon was able to obtain ill-gotten gains totaling over $103,000 in the form of refunds, reshipments, and store credits from the victims. Redmon’s purchases included gift cards, furniture, home goods, and clothing apparel. In order to conceal the nature of his misconduct, Redmon engaged in various efforts to conceal his true identity from the victims: He opened numerous mailboxes under corporate and assumed names; he falsified bank information; and he attempted to hide his phone number when calling customer service lines to report the non-receipt of packages. In those instances when a retailer refused to issue a refund or to resend the “missing” goods, Redmon also defrauded his financial institutions by making false claims seeking reimbursement.
“This defendant repeatedly abused the policies of national retailers that ensure on-line shoppers receive goods and services bought and paid for over the internet,” said U.S. Attorney Cole Finegan. “We thank the United States Postal Investigation Service for their efforts to bring this fraudster to justice.”
“The defendant brazenly used the U.S. mail to scam businesses and to falsely cast doubt on the integrity of America’s most trusted institution, the United States Postal Service,” said Ruth Mendonça, Inspector in Charge of the Denver Division of the U.S. Postal Inspection Service. “However, he only served to inspire our hardworking Postal Inspectors who unraveled his scheme and sought justice for the postal service and the other businesses. This sentence serves as a mark of the commitment of the U.S. Postal Inspection Service to bringing scammers to justice for crimes involving the mail,” said Mendonça.
United States District Court Judge Philip A. Brimmer sentenced Redmon on March 4, 2022.
The United States Postal Inspection Service conducted the investigation. Former Assistant United States Attorney Hetal J. Doshi and Assistant United States Attorney Sarah Weiss handled the prosecution of the case.
Case number: 21-cr-0262
Grand Junction Man Sentenced for Distributing Fentanyl Resulting in DeathRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Christopher Huggett, age 30, of Grand Junction, was sentenced to 14 years in federal prison for the distribution of fentanyl resulting in death. After his term of incarceration, Huggett will serve 3 years of supervised release.
According to the plea agreement, in 2017, Huggett began selling counterfeit pills that appeared to be Oxycodone but actually contained fentanyl. Huggett obtained the pills from and sold them in conjunction with his source, Bruce Holder. Despite learning from Holder that several people had overdosed and that some had died after using these pills, Huggett continued distributing the pills throughout Western Colorado.
On December 26, 2017, Huggett sold several pills to Zacharia Green. Green then sold some of those pills to the victim, identified as J.E. in the plea agreement. On or around December 28, 2017, J.E. used a portion of one of the pills distributed by Huggett and Holder, lost consciousness, and died. That same day, Green also used a portion of one of the pills, lost consciousness, and stopped breathing. A co-worker, however, discovered Green and called emergency medical personnel. Responders administered naloxone, saving his life.
Less than two months after his friend had overdosed and another person had died, Huggett accompanied Holder to Mexico to obtain and import additional fentanyl pills. While in Mexico, Huggett saw Holder give the person supplying the pills a large wad of cash. Later, they returned to Grand Junction with several thousand fentanyl pills concealed in the dash of Holder’s vehicle.
After Huggett was arrested and detained in this matter, he solicited the murder of a witness. In what Huggett has claimed was false bravado, he offered two inmates $5,000 and a vehicle to arrange for Green’s death. Huggett also provided one of these inmates with information on where Green could be located. After investigating this matter, agents confronted Huggett about his actions. Huggett acknowledged that he had asked inmates to have Green murdered but claimed that he did not actually intend for that to occur. Huggett stated that he was presenting a front to keep up appearances in the jail and spoke only with inmates that he believed had no possibility of release.
“Fentanyl is deadly and it’s pervasive. Dealers distributing fentanyl have our full attention,” said United States Attorney Cole Finegan. “I urge Coloradans to be on guard. Fentanyl is being disguised in many different drugs – and it can kill you. Please do not take a drug unless you get it from a pharmacist.”
“DEA applauds the Court’s sentence in this case because it lets criminals know that if they play recklessly with people’s lives by peddling deadly poison within our communities, they will be held accountable to the full-measure of the law,” said DEA Denver Special Agent in Charge Brian Besser. “I especially want to thank our agents in the Grand Junction Resident Office who, alongside their counterparts in FBI, the Western Colorado Drug Task Force and the Two Rivers Drug Enforcement Team, performed an outstanding investigation that ultimately ensured justice was served for the victims and their families in this case.”
“Today’s sentence is a direct result of the dedicated work of the FBI and our federal, state, and local partners to combat criminal organizations that distribute fentanyl and other dangerous substances with no regard for the devastation it has on our communities,” said FBI Denver Special Agent in Charge Michael H. Schneider. “The FBI will continue to investigate individuals and groups who attempt to further the scourge of drugs and violence in the areas we serve. The FBI thanks our partners, including DEA, Western Colorado Drug Task Force, the Two Rivers Drug Enforcement Team, and the U.S. Attorney's Office for their diligence and collaboration.”
United States District Court Judge Christine M. Arguello sentenced Huggett on March 9, 2022.
On April 19, 2021, Bruce Holder was convicted of distributing fentanyl resulting in death, among other crimes, after an 11-day jury trial in criminal case number 18-cr-00381. Holder is scheduled for sentencing on May 4, 2022. For his role in J.E.’s death, Zacharia Green was sentenced to two years in federal prison in criminal case number 19-cr-00459.
The Drug Enforcement Administration, the Federal Bureau of Investigation, the Western Colorado Drug Task Force, and the Two Rivers Drug Enforcement Team conducted the investigation in this matter. Assistant United States Attorney Jeremy Chaffin and Special Assistant United States Attorney Jaime Pena handled the prosecution.
Case number 18-cr-334
Aurora Drug Dealer Sentenced to 23 Years in Federal PrisonRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Candelaria Vallejo-Gallo, age 43, of Aurora, Colorado, was sentenced to 23 years in federal prison for conspiracy to distribute and possess with intent to distribute methamphetamine, cocaine, fentanyl, and heroin. She was also sentenced to 20 years in prison for conspiracy to commit money laundering. Both sentences are to be served concurrently.
According to the plea agreement, the defendant led a conspiracy from March 2019 through February 2020 to transport and distribute large quantities of illegal drugs, working with Mexico-based sources of supply to pick up those drugs in California and employing a network of interstate load transporters, local runners, multi-pound drug customers, and lieutenants to carry out the conspiracy.
During this period, law enforcement seized over three hundred pounds of methamphetamine, over two kilograms of heroin, approximately two kilograms of cocaine, and approximately a kilogram and a half of fentanyl pills. These illicit drugs came from load runs or packages destined for the defendant and seized in Utah and Colorado. Intercepted calls from members of the defendant’s organization in 2019 also indicated the defendant’s receipt of multiple additional loads of more than fifty pounds of methamphetamine destined for redistribution. From March 2019 through January 2020, the FBI purchased over six kilograms of methamphetamine, as well as a quantity of heroin, in over a dozen controlled purchases of drugs from the defendant. The defendant was also observed actively distributing drugs, including a ten-pound methamphetamine distribution in July 2019.
To carry out this conspiracy, the defendant threatened violence to organization members perceived to be disloyal and expressed a desire to kill rivals, as reflected in calls intercepted pursuant to a court-authorized wiretap.
“Removing dangerous drug dealers from our streets is a core part of our strategy to make Colorado safer,” said United States Attorney Cole Finegan. “We thank our law enforcement partners for their effective collaboration in this effort.”
“Friday’s sentence is a direct result of the dedicated work of the FBI and our federal, state, and local partners to combat criminal organizations that distribute methamphetamine, fentanyl, heroin, and other dangerous substances in our communities,” said FBI Denver Special Agent in Charge Michael H. Schneider. “The FBI will continue to investigate individuals and groups who attempt to further the scourge of drugs and violence in the areas we serve. The FBI thanks our partners, including DEA, HSI, ICE-ERO, IRS-CI, USPIS, Douglas County Sheriff’s Office, and the U.S. Attorney's Office for their diligence and collaboration.”
“The laundering of illegal drug profits is as important and essential to drug traffickers as the distribution of their illegal drugs. Without access to these ill-gotten gains, the drug kingpins are not able to finance their operations,” said Andy Tsui, IRS Criminal Investigation Special Agent in Charge, Denver Field Office. “The role of IRS:CI in narcotics cases is to investigate and prosecute the financial violations that support the disruption and dismantling of major drug trafficking organizations. We are proud to provide this financial expertise as we worked alongside our law enforcement partners to bring the members of this organization to justice.”
“Drug trafficking organizations who bring methamphetamine and other illegal drugs also bring unprecedented violence to Colorado and our communities,” said John Fabbricatore, Field Officer Director, U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations, Denver. “ERO is dedicated to working with our law enforcement partners and the U.S. Attorney’s Office to keep our communities safe.”
“We continue to bring all our investigative capabilities to bear on Drug Trafficking Organizations who distribute dangerous poison like meth and fentanyl in Colorado,” said Ryan L. Spradlin, Special Agent in Charge, Homeland Security Investigations, Denver. “This sentence holds Candelaria accountable for her crimes and serves as a warning that HSI and its law enforcement partners will work diligently to keep highly addictive drugs out of Colorado.”
United States District Court Judge Raymond Moore sentenced Vallejo-Gallo on March 4, 2022.
Agents and deputies assigned to the Organized Crime Drug Enforcement Task Force (OCDETF) Strike Force from the FBI, ICE ERO, HSI, IRS, and the Douglas County Sheriff’s Office conducted the investigation and were assisted by officers and deputies from the Colorado State Patrol and the Arapahoe County Sheriff’s Office. Assistant United States Attorneys Cyrus Y. Chung, Zachary Phillips, and Peter McNeilly handled the prosecution of the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (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.
Case number: 20-cr-0028
Evergreen Physician Sentenced to Federal Prison for Taking BribesRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Dr. Jeffrey Kesten, age 61, formerly of Evergreen, Colorado, was sentenced to 24 months in federal prison, to be followed by three years of supervised release, for conspiring to violate the Anti-Kickback Statute, in connection with a scheme to take bribes and kickbacks from a pharmaceutical company in exchange for prescribing a powerful fentanyl spray to his chronic pain patients.
According to the plea agreement, beginning in late 2012 and continuing through November 2015, the defendant conspired with pharmaceutical company employees to take approximately $344,000 in bribes and kickbacks from Insys Therapeutics, Inc., the manufacturer of Subsys, a powerful sublingual fentanyl spray approved by the FDA in 2012 to treat breakthrough pain in cancer patients. The bribes were disguised as payments or honoraria for purportedly delivering educational speaker programs to the defendant’s medical peers. In fact, the defendant often delivered no programs at all—at one point taking payments of over $40,000 from Insys for 17 “programs” he allegedly delivered to his own staff at his medical clinic. As part of the plea agreement, the defendant admitted that he entered into a quid pro quo relationship with Insys, and that the payments affected his prescribing decisions. He abused his position of trust vis-à-vis his patients and the Federal healthcare programs in which he was enrolled, becoming one of Insys’s top revenue-generating prescribers. Prescriptions for Subsys typically cost thousands of dollars each month, and Medicare and Medicaid paid millions of dollars to cover Subsys prescriptions written by Dr. Kesten.
“You have to be able to trust your doctor’s medical judgment,” said U.S. Attorney Cole Finegan. “We’ll hold physicians and medical professionals accountable for taking bribes and kickbacks, especially when they are prescribing powerful drugs to vulnerable patients.”
“As we’ve seen over the past several years fentanyl abuse has become an existential threat across the nation,” said DEA Denver Acting Special Agent in Charge David Olesky. “There is no greater threat to our community than a doctor who violates a patient’s trust with no regard to patient safety and well-being beyond what profits it can bring him. We applaud this sentencing and will continue to work with our counterparts in the U.S. Department of Health and Human Services Office of the Inspector General and the U.S. Attorney’s Office to ensure other doctors who manipulate the system will be held accountable.”
“Accepting kickbacks and bribes in exchange for prescribing medication not only compromises the integrity of Federal health care programs; it can also gravely endanger beneficiaries,” said Curt L. Muller, Special Agent in Charge with the U.S. Department of Health and Human Services Office of the Inspector General. “HHS-OIG will continue to work relentlessly alongside our law enforcement partners to ensure the health and safety of beneficiaries and the efficient use of taxpayer dollars."
Fentanyl is at least 50 times more powerful than morphine, and to ensure patient safety, the FDA requires Subsys prescribers, patients, and pharmacies to enroll in and comply with the Transmucosal Immediate Release Fentanyl Risk Evaluation and Mitigation Strategy (TIRF REMS) program. The defendant disregarded the rules imposed by this program, failing to notify his patients of the risks posed by the Schedule II controlled substance prescription.
United States District Court Judge Daniel D. Domenico sentenced Kesten on February 24, 2022.
The Department of Health and Human Services Office of the Inspector General, and the Drug Enforcement Administration conducted the investigation.
Case No. 20-cr-291-DDD
Fort Collins Man Sentenced for Distributing Fentanyl Resulting in DeathRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Ernesto Ibarra Jr., age 45, of Fort Collins, was sentenced to 175 months in federal prison for distributing fentanyl resulting in death. After his term of incarceration, Ibarra will have three years on supervised release.
According to the plea agreement, on September 26, 2017, police and emergency medical services responded to a home in Fort Collins and found a man deceased on a bathroom floor. Next to the man, police found a syringe, a spoon with liquid and what appeared to be a partially dissolved blue pill, and another fully intact pill, which was round and blue, bore the imprints “M” and “30,” and resembled a prescription oxycodone pill. The Office of the Larimer County Coroner/Medical Examiner determined the man died from “acute fentanyl toxicity.” The two blue pills found at the scene were submitted for laboratory analysis and, despite the imprint, color, and shape of the intact blue pill being consistent with prescription oxycodone, the lab determined the only controlled substance in both pills was fentanyl.
A thorough investigation by the Federal Bureau of Investigation and Fort Collins Police Services revealed Ibarra sold the man the fentanyl pills which resulted in his death. Ibarra used Facebook to communicate with the man and sold him pills which appeared to be prescription opioids several times in the days leading up to the man’s death, including the transaction for the lethal fentanyl pills the day before the man was found dead.
In the plea agreement, Ibarra also admitted to dealing pills to a second man who also died of a fentanyl overdose approximately two days after buying pills from Ibarra. However, in that instance, the evidence was not sufficient to prove the defendant dealt the fentanyl which killed the second man.
“Fentanyl pills disguised as prescription drugs are pervasive and leading to an unprecedented number of overdose deaths,” said U.S. Attorney Cole Finegan. “Even one pill containing fentanyl can end a life. Please stay away from any pill that you haven’t obtained directly from a pharmacist. Your life depends on it.”
“The FBI is focused on building safe communities and keeping them free of dangerous drug trafficking,” said FBI Denver Special Agent in Charge Michael H. Schneider. “This sentence reflects the dedicated efforts of law enforcement and the determination with which we are investigating, disrupting and deterring the distribution of illegal and potentially deadly drugs into our neighborhoods. We are grateful to the Fort Collins Police Services and the U.S. Attorney's Office for their partnership and collaboration in this investigation.”
United States District Court Chief Judge Philip A. Brimmer sentenced Ibarra on February 18, 2022.
The Federal Bureau of Investigation and Fort Collins Police Services conducted the investigation. Assistant United States Attorney Peter McNeilly handled the prosecution of the case.
Case number: 19-cr-074
U.S. Attorney’s Office Enforces Americans with Disabilities Act Against Airport Parking CompanyRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that it resolved a claim of discrimination under the Americans with Disabilities Act against Canopy Airport Parking and its parent company, ProPark, Inc.
Canopy Parking operates a 4,500-space parking lot near the Denver International Airport. As part of its airport-parking service, Canopy provides a shuttle service to the airport. A complaint was filed with the U.S. Attorney’s Office against Canopy by a customer who uses a wheelchair because of a disability. The complainant and his wife alleged that in December 2018, Canopy was unable to provide wheelchair-accessible shuttle service from its parking lot to the Denver International Airport. The complainant had called and e-mailed ahead. Canopy represented that a wheelchair-accessible shuttle would be available. But when the complainant and his wife arrived at Canopy, they discovered that the only wheelchair-accessible shuttle had been out of service for weeks. The couple had to park elsewhere and risked missing their flight as a result of Canopy’s failure to ensure wheelchair-accessible shuttle service. The complainant alleged that Canopy violated the Americans with Disabilities Act. That Act requires companies to ensure equal access to transportation services for customers who use wheelchairs.
To resolve the complaint, Canopy agreed to pay $2,000 in compensatory damages to the complainant. Canopy also agreed to buy two wheelchair-accessible shuttles, develop a plan to ensure that customers who use wheelchairs would be provided with the same service as other customers, train its employees, and adopt other policies and procedures to comply with the Americans with Disabilities Act.
“Companies that provide transportation for their customers must serve individuals with disabilities equally, including customers who use wheelchairs,” said U.S. Attorney Cole Finegan. “We are pleased that Canopy has agreed to acquire wheelchair-accessible vehicles and to implement policies and procedures to comply with the Americans with Disabilities Act.”
Canopy’s parent company, Propark, is headquartered in Hartford, Connecticut.
This case was handled by Assistant U.S. Attorney Zeyen Wu.
Arizona Man Sentenced to 32 Months in Federal Prison for Fraudulent Applications for Economic Injury Disaster LoansRead the Press Release
DENVER - The U.S. Attorney’s Office for the District of Colorado announced that Michael Lain, 56, of Queen Creek, Arizona, was sentenced to 32 months in federal prison for his role in a wire fraud scheme that stole pandemic relief money from the Small Business Administration (SBA).
On March 27, 2020, the President of the United States signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which provided emergency assistance, administered by the SBA to small business owners affected by the Coronavirus (COVID-19) pandemic. The two primary sources of funding for small businesses were the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loans (EIDL) program.
From March through June 2020, defendant Michael Lain submitted fraudulent EIDL applications to the SBA on behalf of more than 70 limited liability companies (LLCs) seeking both loans and grants from the program. In these applications, Lain made false statements about the number of employees and the amount of gross revenues and cost of goods sold that the LLCs had in the 12 months prior to January 31, 2020. In the applications, Lain also falsely agreed to use the funds as working capital for the LLCs when, in fact, he intended to use the funds for other purposes, including the purchase of a new home. 70 of those EIDL applications were approved and funded by the SBA out of its Denver Finance Center. As a result, LLCs controlled by Lain received $3,830,400 in EIDL proceeds and $336,000 in Economic Injury Disaster Grant (EIDG) proceeds.
“Stealing this money is stealing from the generosity of American taxpayers,” said U.S. Attorney Cole Finegan. “Because of the pandemic, Americans stepped up to help their neighbors who were in danger of losing their businesses. Together with our law enforcement partners, we are holding criminals accountable for taking this money to line their pockets.”
“Today’s sentencing demonstrates our continued resolve to deter pandemic-related fraud and protect Americans from exploitation,” said U.S. Secret Service Special Agent in Charge Marc DellaSala, Denver Field Office. “I want to thank the U.S. Attorney’s Office and our task force partners for their tireless pursuit of those attempting to compromise our financial infrastructure by defrauding taxpayer-funded relief.”
“OIG stands beside the nation’s small businesses by securing and safeguarding SBA programs that support and uplift them through difficult times,” said SBA OIG’s Special Agent in Charge Weston King. “OIG remains committed to rooting out bad actors and protecting the integrity of SBA programs. I want to thank the U.S. Department of Justice and our law enforcement partners for their dedication and pursuit of justice.”
U.S. District Judge William J. Martinez sentenced Lain on February 9, 2022. In addition to 32 months of incarceration, the sentence also included an order to pay $622,683.40 in restitution, a $20,000 fine, and will be followed by a three-year term of supervised release. Defendant Lain had repaid the majority of his fraudulently obtained loans prior to his sentencing. In addition to repaying his fraudulently obtained EIDL loans and grants, as part of his plea agreement, Lain also agreed to repay $294,900 that he received as a result of fraudulent PPP applications he submitted.
The investigation in this case was conducted by the United States Secret Service and the Small Business Administration-Office of Inspector General in connection with their work on the Colorado-based EIDL Fraud Task Force. The prosecution was handled by Assistant United States Attorneys Pegeen Rhyne and Patricia Davies.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice 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 criminal actors 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 https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
CASE NUMBER: 21-cr-00175-WJM
U.S. Attorney Cole Finegan Visits Ute Mountain Ute and Southern Ute Indian TribesRead the Press Release
DURANGO – The United States Attorney’s Office for the District of Colorado reaffirmed its commitment to the sovereign Indian Nations present in the southwestern part of Colorado this week. United States Attorney Cole Finegan met with leaders and law enforcement of both the Southern Ute and Ute Mountain Ute during a three-day visit to the region.
“Visiting our tribal partners in-person was particularly important to me,” said United States Attorney Cole Finegan. “Our relationships with the Southern Ute and Ute Mountain Ute Indian Tribes are part of an important trust between our governments. I fully intend to honor our responsibilities and apply the rule of law to all equally. I send my thanks to Southern Ute Chairman Melvin Baker and Ute Mountain Ute Chairman Manuel Heart, and their colleagues and staff, for the opportunity to discuss the issues important to your respective tribes.”
U.S. Attorney Finegan and senior staff met with the Tribal Council members for the Southern Ute Indian Tribe in Ignacio, as well as Tribal Council members for the Ute Mountain Ute Indian Tribe in Towaoc. The three-day visit started on January 11, 2022, and concluded January 13, 2022. Topics of conversation included prosecuting domestic violence cases, combating narcotics on the reservations, and efforts to reduce recidivism.
The U.S. Attorney’s Office for the District of Colorado prosecutes certain offenses that occur on the reservations, primarily through its office in Durango, Colorado. Assistant United States Attorneys Jeff Graves, Josh Player, and Special Assistant United States Attorney Lisa Franceware are primarily responsible for litigating these matters.
Each fall, the U.S. Attorney’s Office for the District of Colorado participates in the Four Corners Conference, which focuses on addressing issues facing the Indian Nations that have lands within the states of Colorado, Utah, Arizona, and New Mexico. The conference brings together hundreds of individuals interested and committed to serving the cause of justice in the region.
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Companies Agree to Pay $1.15 Million to Resolve Allegations of Fraud in Obtaining Army Contracts Reserved for Eligible Small BusinessesRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Idaho-based Native American Services Corp. (NASCO) and Texas-based Mirador Enterprises, Inc. (Mirador) have agreed to pay $1.15 million to the United States to resolve allegations of fraud related to two construction contracts at Colorado’s Fort Carson Army installation. NASCO will pay $750,000 of the settlement amount, and Mirador will pay $400,000.
The United States’ investigation of NASCO and Mirador focused on two construction contracts (together, “the Fort Carson Projects”). One contract was reserved for eligible participants in the Small Business Administration’s “8(a) Program” for economically and socially disadvantaged small businesses, and another project was set aside for eligible small businesses. When the solicitation for the Fort Carson Projects was issued, Mirador qualified both as a small business and as an 8(a) Program participant. NASCO served as a mentor to Mirador through the SBA’s Mentor-Protégé Program, which is designed to help eligible small businesses gain capacity and win government contracts through partnerships with more experienced companies. But NASCO was not itself eligible for small business set-aside contracts.
The United States contends that although the bids for the Fort Carson Projects were submitted in Mirador’s name and listed Mirador as the prime contractor, the bids were in fact prepared by NASCO with the intent that NASCO take on the primary role in the performance of the contracts, which was not allowed. The United States contends that NASCO took the lead in the performance of the Fort Carson Projects, and provided assistance on the projects that far exceeded what was permitted under the Mentor-Protégé relationship.
The United States also contends that after the United States notified Mirador of its concerns about NASCO’s improper level of involvement, NASCO and Mirador took steps to conceal the fraud. The United States alleges, for example, that NASCO and Mirador took actions that made it appear that NASCO was transferring employees to Mirador, but these employees remained under NASCO’s control; that NASCO gave information to Mirador employees to make them appear more involved or knowledgeable about the Fort Carson Projects than they actually were; and that NASCO drafted correspondence for Mirador’s signature, to be sent to the United States.
“Set-aside contracts provide opportunities for small, historically disadvantaged businesses. These programs benefit taxpayers and consumers by supporting healthier and more competitive markets,” said United States Attorney Cole Finegan. “Those important goals are undermined when companies exploit those programs by committing fraud.”
“Using any SBA program fraudulently undermines the spirit and true intent of bolstering the backbone of the nation’s economy—small businesses,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “OIG continues to relentlessly root out and protect the integrity of all SBA’s programs. I want to thank the U.S. Attorney’s Office for its leadership, dedication and continual collaboration in pursuing justice.”
"Today's outcome demonstrates the commitment of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) and our law enforcement partners to protect the integrity of the DoD contracting process, including set-aside programs intended to help smaller and/or disadvantaged businesses," said Special Agent in Charge Michael C. Mentavlos of the DCIS Southwest Field Office. “DCIS will continue to aggressively pursue and hold accountable those individuals who take advantage of these programs and illegally profit from taxpayer resources.”
“This result is a clear example of the continued dedication by the U.S. Army Criminal Investigation Division’s Major Procurement Fraud Unit (MPFU) and joint federal agency law enforcement partners who work diligently every single day to root out fraud and deception carried out by U.S. Government contractors,” said Ray Rayos, Special Agent in Charge, SW Fraud Field Office, San Antonio, TX.
The claims settled by this civil agreement are allegations. In entering into this settlement, NASCO and Mirador did not admit to any liability.
The United States was represented in this matter by Assistant United States Attorney Andrea Wang.
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Woman Sentenced to 27 Months in Federal Prison for Postage Stamp SchemeRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Fanice Reed, aka Fanice Jones, 45, formerly of Humble, Texas, was sentenced to 27 months in federal prison for theft of government property. Reed was also ordered to pay $72,727.99 in restitution and serve a term of three years on supervised release following the period of incarceration.
According to court documents, from February 2019 through March 2020, Reed used counterfeit checks at post offices in Colorado and Texas to obtain large quantities of postage stamps. The counterfeit checks purported to be drawn on the bank accounts of law firms, non-profit groups, or other business entities, but the bank accounts did not exist. When asked to provide personal identification during these transactions, Reed provided false personal identification. On some occasions, Reed told postal employees that her law firm needed the postage for a big mailing that was about to go out. On other occasions, she told postal employees that she was buying the postage on behalf of a non-profit organization so they could send postage inside care packages to U.S. military troops. Through this scheme, Reed stole $258,452.64 from the United States Postal Service.
“Our country depends on the postal service for many essential functions, including delivery to every residential and business address in the nation,” said U.S. Attorney Cole Finegan. “We will prosecute fraudsters that target the postal service to help ensure the integrity of this vital institution.”
“Postal Inspectors work each day to protect key components of the U.S. Postal Service,” said Ruth Mendonça, Inspector in Charge of the Denver Division of the U.S. Postal Inspection Service. “When fraudsters steal from the postal service, they impact America’s most trusted government institution that delivers mail and packages to over 161 million addresses across the United States. Today’s sentence serves as another example of Postal Inspectors’ commitment to protecting the integrity of the U.S. Postal Service,” said Mendonça.
United States District Court Judge Christine M. Arguello sentenced Reed on January 4, 2022.
The investigation in this case was conducted by the United States Postal Inspection Service. The prosecution was handled by Assistant U.S. Attorney Pegeen Rhyne.
Case number: 21-cr-00142-CMA
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Denver Man Sentenced to Federal Prison for Role in Drug ConspiracyRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Omar Rivas-Saenz, age 31, of Denver, was sentenced to 176 months in federal prison for conspiracy to distribute and possess with intent to distribute methamphetamine, fentanyl, and heroin.
According to the plea agreement and court filings, from May 2019 until September 2019, Rivas-Saenz worked for a drug trafficking organization that engaged in the interstate transportation and local distribution of large quantities of illegal drugs sourced from Mexico. On May 16, 2019, state authorities arrested the defendant after finding him with roughly seven pounds of methamphetamine, as well as over $6,000 in cash. State authorities found several firearms in his house, including one with a defaced serial number, as well as $3,000 in cash, 67 grams of heroin, and 400 fentanyl pills.
The defendant failed to appear for scheduled state court hearings and, six days after his arrest, he delivered a pound of 98% pure methamphetamine to a confidential informant. He then assisted in the coordination of the distribution of 10 pounds of methamphetamine and participated in the redistribution of 46 and 50-pound loads of methamphetamine
On September 12, 2019, Immigration and Customs Enforcement officials attempted to arrest the defendant on a federal warrant. The defendant’s vehicle collided with police vehicles and the defendant fled on foot, leading officers on a chase through a residential area until he was finally taken into custody.
“Armed drug dealers who run from law enforcement create a particularly dangerous threat to the safety of our communities,” said United States Attorney Cole Finegan. “Our office is working with law enforcement partners to make Colorado a safer place by prosecuting these dangerous criminals.”
“Through the collaboration on the Denver Strike Force, the FBI and our federal, state, and local partners dismantle transnational criminal enterprises involved in drug trafficking and money laundering within our communities,” said FBI Special Agent in Charge Michael Schneider. “The tireless efforts of law enforcement and the sentence given to Omar Rivas-Saenz reflect the determination with which we are combating and deterring the distribution of illegal narcotics, and it also ensures that Rivas-Saenz no longer poses a threat to our community.”
“This is someone that posed a blatant threat through his membership in a transnational crime organization,” said Ryan Spradlin, Special Agent in Charge of HSI Denver. “HSI will continue to work with all of our law enforcement partners to prevent criminals and the organizations they represent from flooding our communities with illicit narcotics and weapons.”
“As a result of the concerted effort of the law enforcement community and the U.S. Attorney’s Office, this defendant was successfully brought to justice,” said DEA Denver Acting Special Agent in Charge David Olesky. “Methamphetamine, fentanyl, and heroin continue to pose a public health threat to our community, and the results of this investigation demonstrate that the DEA, in collaboration with all of our partners, will continue to pursue those individuals most responsible for trafficking these dangerous drugs which have contributed to the current national overdose epidemic across our country.”
“This sentencing emphasizes IRS-Criminal Investigation’s determination, in partnership with our fellow law enforcement agencies, to aggressively pursue those who attempt to distribute drugs in Colorado,” said Andy Tsui, IRS-CI Denver Field Office Special Agent in Charge. “We will continue to be relentless in our mission to dismantle drug trafficking organizations and bring the criminals who participate in them to justice.”
United States District Court Judge Raymond Moore sentenced Rivas-Saenz on December 17, 2021.
Agents and deputies assigned to the Strike Force from the FBI, ICE ERO, HSI, IRS-CI, and the Douglas County Sheriff’s Office conducted the investigation and were assisted by officers and deputies from the Colorado State Patrol and the Arapahoe County Sheriff’s Office. The Denver Police Department conducted the initial arrest of the defendant, and the Drug Enforcement Administration aided in the defendant’s apprehension on federal charges. Assistant United States Attorneys Cyrus Chung and Kelly Churnet handled the prosecution of the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (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.
Case number: 20-cr-0028-RM-16
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Holiday Travelers Assured that Aircraft Violations Are a Prosecution PriorityRead the Press Release
DENVER – The U.S. Attorney for the District of Colorado and the Special Agent in Charge of the Denver FBI reminded air travelers that criminal conduct on commercial aircraft is a prosecution priority for their Denver based offices.
United States Attorney Cole Finegan noted, “As travel season begins, passengers should know that the U.S. Attorney’s Office in Colorado and our law enforcement partners are prioritizing the prosecution of criminal conduct on aircraft. We are all highly concerned about an increase in criminal conduct on commercial aircraft which endangers the safety of every person on a plane: passengers, pilots, and flight attendants. Please be assured that our office will investigate and prosecute crimes on aircraft.”
"The FBI is committed to investigating criminal acts aboard commercial aircraft that endanger the safety of passengers, flight crews, and flight attendants,” said FBI Special Agent in Charge Michael Schneider of the Denver Division. “We will continue to work with our law enforcement partners to ensure the safety of all individuals during their air travel this holiday season and throughout the year.”
Working with the FBI, Homeland Security Investigations, and the Denver Police, the U.S. Attorney’s Office for the District of Colorado prosecutes offenses that originate on commercial aircraft. Among these offenses, federal law prohibits the interference with flight crews and the commission of certain enumerated crimes while aboard commercial aircraft, such as sexual abuse (18 U.S.C. §§ 2241-43) and assault (18 U.S.C. § 113).
Colorado is home to several commercial airports, including Denver International Airport (DIA), which claims to be the third-busiest airport in the world by passengers. (https://www.flydenver.com/about/media_center/ranking) In the last year, the U.S. Attorney’s Office and the FBI handled several incidents on board commercial aircraft that landed at DIA.
- A California man was charged with assault and interference with an American Airlines flight crew. U.S. v. Brian Hsu, Case No. 21-cr-0367
- A Canon City man was charged after failing to wear a mask and urinating in his seat aboard an Alaska Airlines flight. U.S. v. Landon Grier, Case No. 21-cr-0095
- A passenger on a Spirit Airlines flight was sentenced to prison for trying to open the rear exit door while in flight. U.S. v. Jahmir Williams, Case No. 21-cr-110
- A passenger on a Frontier Airlines flight was charged with engaging in unwanted sexual contact with another passenger. U.S. v. Robert Earl Glasper III, Case No. 21-cr-365
- A Pennsylvania man was prosecuted for starting a fire on a Delta Flight. U.S. v. Robert Allen, Case No. 20-cr-147
If you are aware of a crime on board a commercial aircraft that has landed in Colorado, you can report that crime to the Denver FBI at (303) 629-7171.
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Colorado Man Charged with Assault on a Federal Officer in Rocky Mountain National ParkRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Daron Marquel Ellis has been charged by criminal complaint with assault on a federal officer by use of a deadly weapon in violation of Title 18, United States Code, Section 111(a)(1), (b). According to court documents, the alleged assault occurred on or about December 8, 2021, in Rocky Mountain National Park. Ellis made his initial appearance in Federal Court in Denver on Monday where he was advised by a Federal Magistrate Judge of the charge pending against him and ordered to remain in custody.
Assault on a federal officer by use of a deadly weapon carries a potential penalty of up to 20 years in prison and/or a fine of up to $250,000.
Assistant United States Attorney Laura Cramer-Babycz is handling the prosecution.
The charge in the criminal complaint is an allegation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Case Number: 21-mj-0204
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Centennial Man Sentenced to Federal Prison for COVID-related FraudsRead the Press Release
The U.S. Attorney’s Office for the District of Colorado announces that Anthony Zaghab, age 52, of Centennial, Colorado, was sentenced to 30 months in federal prison for wire fraud based on his submission of numerous false applications for COVID-related relief funds. Zaghab was also ordered to pay $708,141 in restitution.
According to the plea agreement, beginning in April 2020, and continuing until early February of 2021, Zaghab knowingly engaged in a scheme to defraud the United States, the State of Colorado, and a bank to obtain pandemic-relief funds to which he was not entitled. He did this by submitting false and fraudulent Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) applications to the Small Business Administration and to a bank. From these SBA programs, Zaghab obtained $666,630. He also sought and obtained $41,511 in Pandemic Unemployment Insurance payments from the State of Colorado for ineligible family members.
With respect to the false EIDL applications, Zaghab falsely stated the number of employees, the purported gross revenues, and the purported cost of goods sold for certain business entities under his name. Zaghab also applied for and attempted to obtain EIDLs on behalf of fictitious or purported business entities created in the names of his family members without the knowledge or consent of these family members. Zaghab falsely represented that the funds would be used to pay payroll and other permissible expenses when, in fact, Zaghab used the majority of these proceeds for his personal benefit.
In addition to the fraudulent EIDL applications, Zaghab submitted four fraudulent PPP loan applications to a bank. All four PPP loan applications were approved and funded. In these applications, Zaghab falsely represented when the alleged businesses had been established and the monthly payroll for each fictitious entity. Zaghab obtained a total of $83,330 in PPP loan proceeds based on these false representations, which he used for his own personal benefit instead of to pay permissible expenses, like payroll.
Zaghab also applied for and obtained approximately $41,511 in Colorado Pandemic Unemployment Assistance (PUA) for ineligible family members without their knowledge and consent. Specifically, in April 2020, Zaghab applied for and obtained PUA for his sister and his mother, both of whom resided outside of the United States. Zaghab submitted these applications without the knowledge of his sister or mother and used the money for his own personal benefit. In or around April 2020, Zaghab also applied for and obtained PUA for his father who is and was deceased at the time of the application.
“Pandemic-relief funds were supposed to be used to save small businesses and to support individuals devastated by COVID-19,” said United States Attorney Cole Finegan. “Together with our law enforcement partners, we are holding criminals accountable for stealing from the generosity of the American taxpayer.”
“This prison sentence and restitution order should serve as a strong deterrent against COVID-19 related fraud,” said Marc DellaSala, Special Agent in Charge, U.S. Secret Service Denver Field Office. “We will vigorously pursue anyone stealing from government aid programs intended for struggling small businesses and families. I want to thank the U.S. Attorney’s Office and our pandemic fraud task force partners for their continued dedication to protecting America’s financial infrastructure.”
“Today’s sentencing in the Zaghad fraud case is an example of how the statewide task force we set up earlier this year is working. With our state and federal partners, we are investigating and going after those who committed fraud against the state’s unemployment insurance program and the identity theft that has affected thousands of Coloradans during the pandemic. Our work continues, and when wrongdoers can be identified, we’ll hold them accountable,” said Colorado Attorney General Phil Weiser.
"Program integrity has and will continue to be a focus of the Unemployment Insurance division, ensuring that those who engage in fraud within the program are brought to justice and stolen funds recovered" said Phil Spesshardt, Colorado Unemployment Insurance Division Director.
United States District Court Judge R. Brooke Jackson sentenced Zaghab on December 15, 2021.
The United States Secret Service and the Colorado Department of Labor and Enforcement conducted the investigation. Assistant United States Attorneys Martha A. Paluch and Rebecca S. Weber handled the prosecution of the case.
Case number: 21-cr-0188
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Operating Partner of Oil and Gas Maintenance Business Sentenced to Prison for Wire FraudRead the Press Release
GRAND JUNCTION – The U.S. Attorney’s Office for the District of Colorado announces that Cory Thompson, age 44, of Fruita, was sentenced to 41 months in federal prison and ordered to pay over $1.9 million in restitution for wire fraud.
According to the plea agreement, Thompson entered into a business partnership with the victim to operate a company called DACK Energy Services, LLC (“DACK”), which conducted maintenance services for oil and gas companies in Colorado and surrounding areas. The defendant acted as the operating partner. In that role, Thompson was solely responsible for managing work production, hiring employees, procuring equipment, and establishing contracts. The victim, in turn, provided investment capital for the business.
From January 2014, to January 2016, the defendant submitted invoices to the victim, The invoices purportedly represented work performed by DACK. The victim relied on these invoices, believing they reflected accounts receivables and future income for DACK. However, many of these invoices were completely fabricated and did not represent any future income the company would receive. Often, the defendant had not established any business relationship with the companies identified in the fabricated invoices. In total, more than $1.4 million in fabricated invoices were presented by the defendant. Based on the false information provided by the defendant, the victim borrowed $1.25 million and invested that money into the company.
In addition to creating false invoices, the defendant funneled proceeds from the company into an account that he controlled. Thompson used these monies for his personal benefit. In addition, he ensured friends and family members were on DACK’s payroll, but these individuals performed little, if any, actual work. Instead, they would perform personal services for the defendant and his immediate family.
“In addition to losing their freedom, fraudsters convicted in Colorado often give up the property they purchase with fraudulent proceeds,” said United States Attorney Cole Finegan. “The defendant in this case has to give up trucks, jet skis, a car, an SUV, a boat, and pay nearly two million dollars in restitution, as well as serve a long time in federal custody.”
“The sentence handed down in this case rightly holds Mr. Thompson accountable for defrauding his business partner of millions of dollars that went to support a lavish lifestyle,” said FBI Special Agent in Charge Michael Schneider of the Denver Division. “Our office works diligently to seek justice for members of our community who have been impacted economically or otherwise by criminal activity. Thank you to all who were involved in ensuring the victims in this case recovered some of their losses.”
United States District Court Judge Christine M. Arguello sentenced the defendant on December 8, 2021. In addition to a term of incarceration and restitution, the Court ordered the forfeiture of numerous assets purchased using money the defendant obtained as part of his scheme, including a boat, jet skis, and several vehicles. At the conclusion of the sentencing hearing, the defendant was remanded into custody to immediately begin serving his sentence.
The Federal Bureau of Investigation conducted the investigation. Assistant United States Attorney Jeremy Chaffin handled the prosecution and Assistant United States Attorney Elizabeth Young handled the forfeiture.
Case Number: 19-cr-00082-CMA-GPG
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Pueblo Cattle Investment Operator Sentenced to Federal Prison for Wire Fraud and Money LaunderingRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Richard K. Sears, 73, of Pueblo was sentenced to serve 41 months in prison for his role in a cattle investment fraud scheme. After his term of incarceration, Sears will serve 3 years of supervised release. In addition, Sears must pay restitution of $4,969,384.35.
According to information contained in court documents, beginning in June 2008, and continuing into May 2015, Sears defrauded investors through a cattle investment program to develop a breed of cattle – Rocky Mountain Romangus – that did not then exist. For a set “entry fee,” Sears claimed he would purchase a specific number of cows for the investor’s benefit. Sears claimed he would then “leaseback” the cattle for a set period of time and be responsible for paying all costs related to the cattle. Sears further agreed to pay the investors an annual “cash return” or “leaseback payment” of 10 percent and to repurchase the cows for no less than the original purchase price at the end of the lease period.
Initially, Sears made some leaseback payments, thereby lulling investors into believing the investment was successful and operating consistent with their agreements. In 2011, Sears stopped purchasing cattle, yet continued to solicit new investors. At the same time, he misrepresented the true number of cows in his possession. By September 2013, Sears knew he was unable to meet his obligations but he continued to solicit investors, obtaining over $800,000 from the later investors. Sears used a portion of investor funds to pay personal debts unrelated to the cattle program.
“Creative fraudsters may go to great lengths to hide their crimes, but we are going to uncover them,” said United States Attorney Cole Finegan. “Dedicated experts in this office and our law enforcement partners use painstaking means to stop complicated fraudulent schemes and bring fraudsters to justice.”
“This complex case required thousands of hours of investigation by U.S. Postal Inspectors and other investigative staff,” said Ruth Mendonça, Inspector in Charge of the Denver Division of the U.S. Postal Inspection Service. “This sentence makes every minute spent unraveling this scam worthwhile. We are proud of the combined efforts of our partners at the Internal Revenue Service – Criminal Investigation and the United States Attorney’s Office who assisted Postal Inspectors in bringing justice to Mr. Sears’ victims,” said Mendonça.
“This complex investment fraud case highlights the unique investigative skills that IRS Criminal Investigation brings to federal prosecutions,” said Andy Tsui, IRS Criminal Investigation Special Agent in Charge, Denver Field Office. “This sentence and restitution order are a step towards righting the wrongs perpetrated upon the victims of Sears’ fraudulent scheme.“
U.S. District Court Judge Robert E. Blackburn pronounced the sentence on December 9, 2021.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the United States Postal Inspection Service.
This case was prosecuted by Assistant United States Attorney Tim Neff.
CASE NUMBER: 19-cr-00408
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Justice Department Awards More Than $17.5 Million to Support Project Safe NeighborhoodsRead the Press Release
DENVER – The Department of Justice announced today that it has awarded more than $17.5 million in grants to support the Project Safe Neighborhoods (PSN) Program. Funding will support efforts across the country to address violent crime, including the gun violence that is often at its core. The Colorado Department of Public Safety’s Division of Criminal Justice was awarded $284,549 to administer PSN grant funds in the District of Colorado.
The Bureau of Justice Assistance (BJA), part of the department’s Office of Justice Programs (OJP), will administer the 88 grant awards, which are being made to designated fiscal agents to support local PSN projects that work in partnership with U.S. Attorneys’ Offices.
“This latest Project Safe Neighborhoods grant is critical to addressing the violent crime threatening cities and towns all across our country,” said Deputy Attorney General Lisa O. Monaco. “Ensuring the safety of all Americans is the highest priority for the Department of Justice, but when it comes to violent crime, there is not a one-size-fits-all solution. We have to work closely with local public safety agencies as well as community organizations to craft individual strategies unique to each community’s needs. Programs like Project Safe Neighborhoods and the funding it provides allow us to do just that.”
“Our office is committed to making Colorado safer for everyone,” said United States Attorney Cole Finegan. “We work together with our law enforcement partners to target the most violent offenders in our communities.”
“Investing in our communities, supporting victims and building a justice system that both keeps people safe and earns their trust – these are mutually reinforcing goals that stand at the heart of Project Safe Neighborhoods,” said Principal Deputy Assistant Attorney General Amy L. Solomon for OJP. “The Office of Justice Programs is pleased to join with our U.S. Attorneys’ Offices, and with jurisdictions across the country, as we work together to meet the challenges of crime and violence and achieve our shared aspirations of public safety and community trust.”
In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime issued by Deputy Attorney General Monaco, is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
This fall, U.S. Attorney’s Offices across the country have enhanced their violent crime reduction efforts to ensure alignment with the department’s comprehensive violent crime reduction strategy. U.S. Attorneys’ Offices have engaged in outreach to law enforcement and other agencies and organizations serving communities to identify the most significant drivers of violence in their districts. Working together with a broad coalition of stakeholders, the U.S. Attorneys’ Offices are addressing the most pressing violent crime issues in their district to make our neighborhoods safer for all.
PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies, community stakeholders and other agencies and organizations that work to reduce violent crime.
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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 racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
Domestic Violence Offender Sentenced to Federal Prison for Possessing GunsRead the Press Release
DURANGO – The United States Attorney’s Office for the District of Colorado announces that Dennis Yarbrough, 49, of Durango, Colorado, was sentenced to 30 months in federal prison, followed by 3 years of supervised release, for illegally possessing six firearms following a misdemeanor conviction for domestic violence.
According to the plea agreement and public filings, in 2019, Yarbrough was convicted of a physical domestic violence misdemeanor in La Plata County Court. In March 2021, law enforcement found Yarbrough in possession of six firearms, including a semi-automatic firearm capable of accepting a large capacity magazine.
On April 8, 2021, a federal grand jury returned a one count-indictment against the defendant for possession of a firearm following a domestic violence conviction, in violation of 18 U.S.C. §922(g)(9). After his arrest on the indictment, Yarbrough violated a federal no-contact order by contacting the victim of domestic violence to unlawfully influence her testimony in this case.
“Victims of domestic violence need protection, safety, and support,” said United States Attorney Cole Finegan. “The U.S. Attorney’s Office prosecutes abusers who place victims of domestic violence at risk by illegally possessing firearms.”
“Convicted criminals who seek to acquire firearms and threaten victims will be held accountable as this sentence shows,” said Ryan L. Spradlin, Special Agent in Charge, HSI Denver. “Given that Yarbrough violated an order of protection in an effort to influence testimony shows his disregard for the law, and we’re gratified he will be behind bars. We are pleased to work with the Durango Police and U.S. Attorney’s office to see justice served in this case.”
United States District Court Judge Robert Blackburn issued the sentence on December 8, 2021. The defendant pleaded guilty on September 9, 2021.
This case was investigated by HSI, working partnership with the Durango Police Department. Assistant United States Attorney Jeffrey K. Graves handled the prosecution.
Case number: 21-cr-00118-REB-JMC
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Former Executive Officer of the Southern Ute Tribe Sentenced to 13.5 Years in Prison for Sexually Assaulting a ChildRead the Press Release
DURANGO – The United States Attorney’s Office for the District of Colorado announces that McKean Walton, age 52, of Ignacio, Colorado, was sentenced to 13.5 years in federal prison, followed by 10 years of supervised release, and a $5,000 special assessment. Walton is the former Executive Officer of the Southern Ute Indian Tribe, headquartered in Ignacio, Colorado. Walton resigned from his position in September 2020, following his arrest in this matter.
According to the stipulated facts contained in the plea agreement, Walton sexually assaulted a twelve-year-old child in his care on multiple occasions in Fall of 2010 and Summer of 2011. Walton committed the sexual assaults by using force, while in the living room of a home on the Southern Ute Indian Reservation.
“Our office will enforce the law against all offenders, no matter what position of authority they hold,” said United States Attorney Cole Finegan. “While justice may have been long in coming in this case, thanks to the courage of the victim and the tenacity of our law enforcement partners, justice has finally arrived.”
“This sentence rightly holds Mr. Walton accountable for his deplorable conduct in this case,” said FBI Special Agent in Charge Michael Schneider of the FBI Denver Division. “The FBI remains steadfast in our commitment to thoroughly investigative crimes against the most vulnerable members of our community, regardless of how many years have passed since the time of the incident.”
United States District Court Judge Robert Blackburn issued the sentence on December 7, 2021. Walton pleaded guilty on July 30, 2021.
The Federal Bureau of Investigation investigated this matter. Assistant United States Attorney Jeffrey K. Graves handled the prosecution.
Case number: 20-cr-00260-REB-JMC
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Denver Man Sentenced to 14 Years in Prison for Distributing Illicit DrugsRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Luis Gerardo Palacios, age 31, of Denver, was sentenced to 14 years in federal prison for conspiracy to distribute and possess with intent to distribute methamphetamine, cocaine, fentanyl, and heroin.
According to the plea agreement and court filings, from sometime in 2019 until February 12, 2020, the defendant served a drug trafficking organization that engaged in the interstate transportation and local distribution of large quantities of illegal drugs sourced from Mexico. The defendant aided the organization by helping find one of the drivers that brought more than 50 pounds of methamphetamine from California to Colorado in October 2019, and by assisting in coordinating a load run of approximately 2.5 pounds of heroin, a kilogram of fentanyl, and 40 pounds of methamphetamine in December 2019. The defendant also arranged for the delivery of 10,000 fentanyl pills from California to Colorado in January 2020, and then distributed or made attempts to distribute a portion of those pills in Colorado. At the time of the defendant’s arrest, federal agents seized a Sig Sauer pistol as well as over $20,000 cash in the defendant’s apartment. The weapon and cash were forfeited.
“Together with our law enforcement partners, the U.S. Attorney’s Office is committed to stopping criminals from poisoning our communities with illicit narcotics,” said United States Attorney Cole Finegan. “With this sentencing a dangerous drug dealer is off the street and Colorado is safer as a result.”
“This lengthy sentence shows the commitment to stop the poison of drugs into our communities," said FBI Special Agent in Charge Michael Schneider of the FBI Denver Division. "The FBI is steadfast in investigating criminals like Palacios and the threat posed by the illicit drug culture he promotes that endangers our society. The FBI and our partners will continue to pursue these bad actors who feel they are above the law as we work to protect youth and other vulnerable populations from being their next victim.”
“Our special agents and criminal analysts work night and day to keep every corner of Colorado free from the scourge of dangerous drugs like meth and fentanyl,” said Ryan L. Spradlin, Special Agent in Charge, HSI Denver. “This sentence highlights the commitment our investigators, prosecutors from the United States Attorney’s Office and law enforcement partners have to stop the flow of drugs into our communities.”
“This sentence of Palacios is a great example of the collaborative environment the OCDETF Strike Force Group-II has created which has enabled us to thoroughly investigate this drug trafficking organization, including their money laundering activities” said Andy Tsui, IRS Criminal Investigation Special Agent in Charge. “We are proud to provide our financial expertise as we work alongside our law enforcement partners to bring criminals to justice.”
United States District Court Judge Raymond P. Moore sentenced the defendant on November 29, 2021.
The FBI, ICE ERO, HSI, IRS-CI, the Colorado State Patrol, the Arapahoe County Sheriff’s Office, and the Douglas County Sheriff’s Office conducted the investigation. Assistant United States Attorney Cyrus Chung handled the prosecution of the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (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.
Case No. 20-cr-00028-RM
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Colorado Springs Man Sentenced to 20 Years in Federal Prison for Producing Child PornographyRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Gregory Lopez, age 28, of Colorado Springs, was sentenced to serve 240 months (20 years) in federal prison, followed by 20 years on supervised release for production and transportation of child pornography.
According to the stipulated facts contained in the plea agreement, the defendant was advertising the sale of child pornography on “The Onion Router” or TOR network, which makes it difficult for users to learn each other’s physical location. A federal agent observed the advertisement and began communicating with the defendant. On May 6, 2020, in exchange for $40, the defendant sent the agent five videos depicting the sexual abuse of a minor victim, who was seven years old at the time. A search warrant was executed at the defendant’s home in Colorado Springs the next day. The defendant was home, identified the minor victim to law enforcement, admitted to creating the videos depicting his sexual abuse of the minor victim, and admitted to selling the videos on TOR. The defendant also possessed approximately 265 videos files and 20 image files depicting child pornography.
“Sexual abuse of children is egregious and harms victims for their lifetime,” said United States Attorney Cole Finegan. “Due to the excellent work of federal law enforcement and the Colorado’s Internet Crimes Against Children Task Force, the victim in this case is no longer in danger, and the perpetrator has been removed from the community for a very long time.”
“This sentencing should send a very clear message to this defendant and others like him, that HSI will punish anyone who engages in the inexcusable abuse of innocent children,” said Ryan L. Spradlin, Special Agent in Charge, HSI Denver. “We’re grateful for the collaboration with our federal, state and local law enforcement partners in Colorado to target and prosecute criminals who exploit children.”
United States District Court Judge Christine M. Arguello sentenced Gregory Lopez on December 2, 2021.
Homeland Security Investigations and the Colorado Internet Crimes Against Children (ICAC) Task Force conducted the investigation. Assistant United States Attorney Alecia L. Riewerts handled the prosecution of the case.
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 CEOS, 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.
Case No. 20-cr-165-CMA
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Colorado Nurse Sentenced to Federal Prison for Taking Controlled Substances from PatientsRead the Press Release
DENVER – Alicia Nickel-Tangeman, age 44, formerly of Woodland Park, Colorado, was sentenced to 12 months in federal prison for obtaining controlled substances using fraud and deception while she was on the job as a Registered Nurse at a hospital in Colorado. Following her term of incarceration, Nickel-Tangeman will serve one year of supervised release.
According to court documents, Ms. Nickel-Tangeman used her position as Registered Nurse to access the rooms of patients she was not assigned to care for in a separate unit of a Colorado hospital. The defendant falsely and fraudulently told patients that she was conducting a “study” on the effectiveness of Patient-Controlled Analgesia (PCA) pumps, which deliver controlled substances to hospital patients to relieve pain on-demand when the patient pushes a button. The defendant then used a key to open the machine that secured the syringe of hydromorphone that was to be dispensed to the patient. The defendant removed a portion of the drug from the syringe, which she kept, then returned the syringe to the patient’s PCA. The defendant illegally obtained controlled substances in this way from three patients on four occasions. When confronted by law enforcement regarding her actions, the defendant lied about the diversions and persisted in her false story that she was engaged in a study with a well-known university. The defendant engaged in obstructionist conduct by producing to law enforcement a false e-mail that she stated came from a friend who asked her to participate in the research. The defendant created the false e-mail herself using a fictitious e-mail account she created in the name of this alleged friend.
“Medical professionals who criminally abuse their positions of trust will be held accountable,” said United States Attorney Cole Finegan. “Our office’s priority is to protect the public and the health care system our citizens rely upon for their medical care.”
“The FDA oversees the U.S. drug supply to ensure that it is safe and effective, and those health care professionals who fraudulently obtain needed medicines from patients put those patients’ health at risk,” said Special Agent in Charge Charles L. Grinstead, FDA Office of Criminal Investigations Kansas City Field Office. “Today’s announcement should serve as a reminder that such conduct will not be tolerated.”
"The results of this investigation and corresponding sentence of Ms. Nickel-Tangeman reveal once more the seriousness of the overdose epidemic and opioid crisis facing our nation when even a nurse is susceptible to the temptation these drugs provide," said DEA Denver Acting Special Agent in Charge David Olesky.
U.S. District Court Judge Christine M. Arguello issued the sentence on November 30, 2021.
The investigation in this case was conducted by the Food and Drug Administration, Office of Criminal Investigations, and the Drug Enforcement Administration.
Assistant United States Attorney Anna Edgar prosecuted this matter.
Case No. 21-cr-00214-CMA
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Cole Finegan Sworn in as United States AttorneyRead the Press Release
DENVER – Cole Finegan was sworn in as the United States Attorney for the District of Colorado. In a private ceremony early Wednesday morning, Mr. Finegan took the oath of office before United States District Court Judge Christine M. Arguello.
“I am honored to serve the people of Colorado as United States Attorney,” said U.S. Attorney Finegan. “I am excited to work with the talented and dedicated staff of this office, as well as our colleagues in law enforcement and the defense bar.”
As United States Attorney, Mr. Finegan is the chief federal law enforcement officer in the State of Colorado. He oversees all federal criminal prosecutions, as well as all civil litigation undertaken on behalf of the United States Government. He leads an office of more than 160 attorneys and professional staff members, in addition to approximately 20 government contractors. The U.S. Attorney’s Office is headquartered in Denver, with branch offices in Grand Junction and Durango.
U.S. Attorney Finegan was nominated by President Biden on September 28, 2021, and confirmed by the United States Senate on November 19, 2021. He rejoins public service from private practice at a global law firm, where he served as the Regional Managing Partner for the Americas, as well as the Denver Managing Partner. Previously, U.S. Attorney Finegan was the Chief of Staff for the Denver Mayor as well as the Denver City Attorney, positions he held simultaneously. He has also served as Chief Legal Counsel in the Office of the Governor for the State of Colorado.
During his career, he has served on numerous charitable boards, including the Colorado ‘I Have A Dream’ Foundation, Children’s Hospital Colorado, and the Denver Public Schools Foundation. He also helped create Denver’s first Family Justice Center dedicated to fighting against domestic violence.
A formal investiture ceremony will be scheduled at a future date.
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Colorado Man Sentenced to More than 9 Years in Federal Prison for Assaulting ATF Special AgentRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces Dallas Michael Theiss, age 24, was sentenced to 110 months in federal prison followed by three years of supervised release for assaulting a federal officer on April 9, 2021.
According to the plea agreement, ATF agents and officers with the Colorado Springs police department were attempting to arrest the defendant at a 7-Eleven store on April 9, 2021. Agents surrounded the defendant’s blue Nissan Sedan, moving their police vehicles to the rear and side of the defendant’s car. The defendant attempted to get away by reversing his car, but was blocked by an ATF vehicle. The defendant then accelerated forward, ran over a curb, onto the sidewalk in front of the 7-Eleven store, and directly towards an ATF Special Agent standing near the doorway. The Special Agent was unable to get out of the way of the oncoming vehicle and was forced to shoot at the car’s windshield and driver’s side window. The defendant hit the Special Agent in the leg with the car and then fled at a high rate of speed. After a short pursuit, the defendant barricaded himself in a Colorado Springs residence for approximately two hours before being taken into custody. A subsequent search of the vehicle he was driving resulted in the discovery of two firearms.
“This case demonstrates the kind of heroic acts that federal law enforcement officers undertake every day to keep us safe,” said Acting United States Attorney Matt Kirsch. “Taking violent offenders off the street is a dangerous business, and we are grateful no one was killed in this incident.”
“We are fortunate the injuries our agent suffered were not fatal. Through extraordinary bravery and professionalism in the face of imminent danger, this violent criminal was taken into custody without anyone else being harmed,” said ATF Special Agent in Charge David Booth. “We applaud the United States Attorney’s Office in their success in this case thus removing a violent criminal from our communities.”
United States District Court Judge Philip A. Brimmer sentenced Mr. Theiss on November 19, 2021.
The ATF and the Colorado Springs Police Department conducted the investigation. Assistant United States Attorney Kelly Churnet handled the prosecution of the case.
Case No. 21-cr-0149
Colorado Man Sentenced to Federal Prison for Distributing Fentanyl Disguised as OxycodoneRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces Victor Manuel Ortega-Ochoa, age 47, was sentenced to 41 months in a federal prison followed by two years of supervised release for distribution and possession with intent to distribute fentanyl and possession of a firearm by a prohibited person.
According to the plea agreement, Ortega-Ochoa conspired with others to distribute thousands of pills having the appearance of Oxycodone tablets but that actually contained fentanyl. Ortega-Ochoa personally distributed approximately 3000 of these counterfeit pills during controlled purchases conducted by investigators. During these purchases, Ortega-Ochoa also quoted prices for, and agreed to distribute, multiple pounds of methamphetamine and a kilogram of cocaine. During a search of Ortega-Ochoa’s home, agents discovered two firearms and ammunition in the bedroom where Ortega-Ochoa was arrested. It was illegal for Ortega-Ochoa, who was present in the United States illegally, to be in possession of these firearms.
“The tens of thousands of counterfeit Oxycodone pills currently streaming into our state often contain fentanyl,” said Acting U.S. Attorney Matt Kirsch. “We will continue to aggressively prosecute people distributing these pills, which often cause fatal overdoses.”
“This investigation demonstrates DEA’s commitment to addressing the surge in overdose deaths across our country and more notably here in the State of Colorado. This is unfortunately another example of someone selling counterfeit fentanyl-laced pills disguised as a legitimate diverted medication in our community,” said Acting Special Agent in Charge David Olesky of the DEA Denver Field Division. “We applaud the work of our agents and our partners with IRS Criminal Investigation and the United States Attorney’s Office for their efforts and success in putting this case together.”
United States District Court Judge Christine M. Arguello sentenced Mr. Ortega-Ochoa on November 2, 2021.
The DEA and IRS Criminal Investigation conducted the investigation. Assistant United States Attorney Jeremy Chaffin handled the prosecution of the case.
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California Man Charged with Assault and Interference with a Flight CrewRead the Press Release
DENVER – Brian Hsu, age 20, of Irvine, California, has been charged by criminal complaint with interference with a flight crew and assault within the special aircraft jurisdiction of the United States. The charges stem from Mr. Hsu’s alleged assault of a flight attendant on October 27, 2021, aboard American Airlines Flight 976, which was diverted to Denver, Colorado. It is anticipated that Mr. Hsu will appear in the United States District Court for the Central District of California for an initial appearance later today.
The charges in the criminal complaint are allegations. The Defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The matter was investigated by the Federal Bureau of Investigation, with assistance from the Denver Police Department. Assistant United States Attorney Brad Giles is in charge of the prosecution.
Case Number: 21-mj-00179
Outdoor Apparel Company Owner Guilty of Violating National Forest Service Regulations as part of Marketing CampaignRead the Press Release
GRAND JUNCTION – David Lesh was found guilty of violating National Forest Service regulations for snowmobiling at Keystone Resort, which was closed in April 2020. United States Magistrate Judge Gordon P. Gallagher issued the findings on October 22, 2021, in a written decision.
In its Decision and Order, the Court found that as part of an advertising and marketing campaign for his outdoor apparel company, Lesh rode a snowmobile at Keystone Resort in April 2020, and then posted pictures of his activities on Instagram. The Court found posting the photos on Instagram constituted selling or offering for sale merchandise or conducting unauthorized work activity on National Forest Service lands.
At the time Lesh entered the resort, Keystone was closed due to the COVID-19 pandemic. Keystone employees had used plows to create snow barriers in front of terrain park features to make them inaccessible. Signs were posted around Keystone indicating that the ski areas and terrain park were closed. On April 25, 2020, snowmobile tracks were found looping around a ski jump. There was also evidence that a utility shed had been entered and a snow shovel removed. Snowmobile tracks also indicated that snowmobiling had occurred around the resort, in the terrain park, through the Erickson Bowl, and down a trail on National Forest Service lands.
Pictures were posted on Lesh’s Instagram account on April 25, 2020, featuring an individual wearing outdoor apparel and jumping a red and black snowmobile off a jump at Keystone. A caption initially read, “Solid park sesh, no lift ticket needed.”
A bench trial in this matter occurred in Grand Junction on August 5, 2021. The Court’s decision finds Lesh guilty of violating 36 C.F.R. Sections 261.14 and 261.10(c). Both offenses are misdemeanors. Lesh will be sentenced by the Court at date that is yet to be determined.
The matter was investigated by the National Forest Service. Assistant United States Attorney Peter Hautzinger is in charge of the prosecution.
Case Number: 1:20-po-07016-GPG
Boulder Weather Research Organization and Officers Pay over $2 Million to Resolve Investigation into Improper Use of Federal Grants for Scientific ResearchRead the Press Release
DENVER –The Center for Severe Weather Research (CSWR), a nonprofit organization in Boulder, Colorado, has paid over $2.4 million to resolve allegations that it engaged in fraud related to grants it received from three federal agencies: the National Science Foundation (NSF), the National Aeronautics and Space Administration (NASA), and the National Oceanic and Atmospheric Administration (NOAA), an agency within the U.S. Department of Commerce.
CSWR conducted scientific weather research popularly known as “storm chasing” with its “Doppler on Wheels” fleet. The United States alleges that from 2004 to 2020, CSWR improperly requested payments from federal grants for expenses that CSWR had not incurred. The United States also contends that CSWR had inadequate internal controls for the federal funds it received, including inadequate documentation and controls over large cash transactions.
The settlement announced today also resolves allegations that the principals of CSWR, Joshua Wurman and Ling Chan, improperly obtained payments to which they were not entitled. Those allegations, which relate primarily to rental payments for CSWR offices in their personal residence, are resolved with Dr. Wurman and Ms. Chan’s repayment to the United States of $203,776.
“Our office works to protect taxpayers by stopping people who wrongfully obtain federal grant money,” said Acting U.S. Attorney Matt Kirsch. “We will pursue both organizations and individuals if they improperly obtain federal funds or fail to track those funds with adequate safeguards and controls.”
NSF Inspector General Allison Lerner stated: “Each year the National Science Foundation awards millions of dollars in grants to promote promising scientific research. However, the Foundation expects grant recipients to follow federal cost principles. Expenses charged to grants must be allowable, allocable, and reasonable. I commend the U.S. Attorney's Office and our investigative partners for their work on upholding federal grant rules in this case.”
“This investigation is a prodigious example of how we partner with other law enforcement agencies that are committed to protecting federal grants and ensuring that funds are appropriately spent,” said Bob Steinau, Assistant Inspector General for Investigations, NASA Office of Inspector General (OIG). “I want to applaud the exemplary efforts from Commerce OIG, NSF OIG, and the U.S. Attorney’s Office. The NASA OIG along with its law enforcement partners, will continue to aggressively investigate those individuals and entities that take advantage of the trust of the American taxpayers.”
“We are committed to ensuring grant funds NOAA awards for important research are handled appropriately and used for their intended purpose,” said Scott Kieffer, Assistant Inspector General for Investigations for the U.S. Department of Commerce, Office of Inspector General (OIG). “Our office appreciates the investigative partnership with the U.S. Attorney’s Office, NASA OIG and NSF OIG that led to this result, and we will continue to focus our resources on investigations that serve to protect taxpayer money.”
This case was handled by Assistant U.S. Attorney Andrea Wang.
Denver Jury Convicts Felon for Possessing Ammunition after Deadly ShootoutRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that a federal jury in Denver has found Zyaire Williams, age 21, guilty of possession of ammunition by a prohibited person. The jury announced its verdict on October 14, 2021. Trial began in federal court on October 12, 2021.
At trial, the government presented evidence that on July 1, 2020, a deadly gang shoot-out took place on Downing Street in downtown Denver, after an argument in a liquor store. Zyaire Williams, a gang member, fired seven rounds from a 9mm handgun, and the shell casings were later recovered by the Denver Police Department. One person was injured and another person was killed in the shooting. Prior to this shooting, Williams had two previous felony convictions and therefore was prohibited from possessing ammunition.
Williams will be sentenced by the United States District Court for the District of Colorado at a later date. Williams faces up to ten years imprisonment.
The ATF and the Denver Police Department investigated this matter. Assistant United States Attorneys Celeste Rangel and Tom Minser are handling the prosecution.
Case number: 20-cr-0278
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Colorado Springs Man Charged with Distributing Fentanyl Resulting in DeathRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that a federal grand jury in Denver indicted Nathaniel Corser, age 21, of Colorado Springs, with a charge of distributing fentanyl, which resulted in death. The grand jury also indicted Corser on charges of dealing fentanyl near a school, possessing fentanyl with the intent to distribute it near a school, possessing morphine with the intent to distribute it near a school, and possessing a firearm in furtherance of a drug trafficking crime. If convicted of the charges in the indictment, Corser faces a minimum of 25 years and a maximum of life in prison.
Corser had his initial appearance in U.S. District Court in Denver on October 12, 2021. He is scheduled to return to U.S. District Court on October 15, 2021, for an Arraignment, Discovery, and Detention Hearing.
The charges in the indictment are allegations. The Defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The Colorado Springs Police Department and the FBI conducted the investigation. Assistant United States Attorney Peter McNeilly is responsible for the prosecution of the case.
Case number: 21-cr-0331
Ute Mountain Ute Tribal Member Sentenced to 20 Years in Federal Prison for Sex Crimes against ChildrenRead the Press Release
DURANGO – The U.S. Attorney’s Office for the District of Colorado announces that Blair Root House, age 63, of Towaoc, Colorado, was sentenced to twenty years in federal prison for one count of aggravated sexual abuse and one count of sexual abuse against two different children below the age of 12. The offenses occurred while the children were in his care at his home in Towaoc, Colorado.
“Sexual offenses against children create harms that last a lifetime,” said Acting United States Attorney Matt Kirsch. “While we can’t undo the harm and pain of these crimes, we have ensured that Mr. House will harm no more children while he is in federal prison.”
“The FBI and our partners work diligently to investigate and bring to justice individuals engaged in the exploitation and sexual abuse of minors. This 20-year sentence rightly holds Mr. House accountable for his actions while bringing a greater measure of security to the community,” said FBI Denver Special Agent in Charge Michael Schneider. “The FBI is grateful to our partners at the U.S. Attorney's Office for their efforts in this case and our shared commitment to protecting children.”
United States District Court Judge Robert E. Blackburn sentenced Blair Root House on October 5, 2021, for one count of Aggravated Sexual Abuse by Force in Indian Country and one count of Abusive Sexual Contact of a Child in Indian County. The crimes took place between January 1, 2006, and December 31, 2008.
The Federal Bureau of Investigation conducted the investigation. Assistant United States Attorney R. Josh Player handled the prosecution of the case.
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Denver Man Sentenced to Prison for Threatening to Harm Government EmployeesRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Harold Ortiz, age 56, of Denver, was sentenced to 14 months in federal prison for threatening to assault or murder a Social Security Administration employee.
According to the plea agreement, on February 26, 2021, the defendant called the Social Security Administration in regards to social security benefits. He demanded to speak with a manager, and then yelled insults. He then said, “I’m going to stand outside your building and blow all of your [expletive] heads off! You’re dealing with a crazy person.” After this call was disconnected, the defendant placed another call to the Social Security Administration. The district manager told the defendant that threats would not be tolerated, and the defendant responded, “Denver PD will not come to my house because they know I will kill them! They know I am crazy!” As a result of the defendant’s threat, the Social Security Administration office in downtown Denver was closed for two days on March 1 and March 2, 2021.
“Freedom of speech does not protect threatening to assault or murder a United States official,” said Acting United States Attorney Matt Kirsch. “Threatening to harm federal officials is a crime, and we will prosecute it.”
“Mr. Ortiz threatened the lives of Social Security Administration officials for carrying out their official duties. This deplorable behavior not only caused fear in the lives of SSA personnel and their families, but resulted in the closure of that field office and the cancellation of dire need appointments for the public. This behavior will not be tolerated by my office and today’s sentence should stand as a warning to anyone who threatens an SSA official who is simply carrying out his or her duties,” said Gail S. Ennis, Inspector General for the Social Security Administration. “I thank the U.S. Attorney’s Office and Special Assistant U.S. Attorney Sonia Dave for prosecuting this case.”
United States District Court Judge Daniel D. Domenico sentenced Harold Ortiz on October 6, 2021.
The Federal Protective Service and the Social Security Administration, Office of the Inspector General conducted the investigation. Special Assistant United States Attorney Sonia J. Dave handled the prosecution of the case.
Case Number: 21-cr-00085-DDD-1
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Jefferson County Sheriff's Office Agrees to New Policies to Improve Communication with Individuals Who Are Deaf and Hard-of-HearingRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announced that the Jefferson County Sheriff’s Office (JCSO) has agreed to adopt a set of policies to ensure effective communication with individuals who are deaf and hard-of-hearing. As described in the agreement, the changes in policy were obtained after an investigation into complaints by two individuals who are deaf, who each claimed that JCSO deputies had violated the Americans with Disabilities Act (ADA) by not providing them with aids and services they needed to effectively communicate in connection with their arrests and bookings.
Title II of the ADA requires public entities, including law enforcement agencies, to provide appropriate auxiliary aids and services to ensure effective communication with individuals who are deaf or hard-of-hearing. Auxiliary aids and services can include items such as computers with video communication software or qualified in-person interpreters. The United States Attorney’s Office investigated the two complaints referenced above, as well as interactions the JCSO has had with other individuals who are deaf and hard-of-hearing, and the JCSO’s policies and procedures for such interactions. The investigation revealed that some existing policies were not always followed and other policies needed improvement.
To address these issues relating to JCSO’s interactions with individuals who are deaf or hard-of-hearing, the United States obtained an agreement that requires JCSO to undertake several reforms, including adopting several new policies and ensuring that those policies are understood and followed:
- When JCSO patrol deputies encounter individuals who are deaf or hard-of-hearing, they will assess whether those individuals need auxiliary aids and services and provide them if needed.
- JCSO employees will be required to notify a supervisor any time they encounter an individual who is deaf or hard-of-hearing, and if that person is en route to the jail, JCSO patrol deputies will notify dispatch staff, who in turn will notify booking staff.
- JCSO employees working at the jail will ensure that detainees who are deaf or hard-of-hearing are able to access technology that enables them to communicate with family, friends, and their attorneys.
- JCSO employees in patrol, booking, and jail operations will receive job-specific training on effective communication policies and operations involving individuals who are deaf or hard-of-hearing.
- JCSO patrol officers who fail to assess and document the communication needs of individuals who are deaf or hard-of-hearing may be required to receive more training or face discipline.
“When law enforcement interacts with individuals who are deaf or hard-of-hearing, effective communication requires the use of appropriate aids and services,” said Acting U.S. Attorney Matt Kirsch. “We are pleased that the Jefferson County Sheriff’s Office has agreed to take steps not only to improve their policies on interacting with individuals who are deaf and hard-of-hearing, but also to ensure that JCSO employees know how to put those policies into action. The measures announced today will help both law enforcement officers and individuals who are deaf and hard-of-hearing by ensuring effective communication.”
This case was handled by Assistant U.S. Attorney Zeyen Wu.
Link to Settlement Agreement
Devon Energy Companies Agree to Pay $6.15 Million to Settle False Claims Act Allegations for Underpaying Royalties on Gas from Federal LandsRead the Press Release
DENVER - Devon Energy Corporation, an Oklahoma-based oil and natural gas exploration and production company, and its affiliates, Devon Energy Corp. (Oklahoma) and Devon Energy Production Company, LP (collectively, “Devon”), have agreed to pay $6.15 million to resolve allegations that it violated the False Claims Act by underpaying and underreporting royalties for natural gas from federal lands in Wyoming and New Mexico.
The United States leases federal lands for the production of natural gas in exchange for the payment of royalties on the value of the gas produced. Lessees must put the gas in marketable condition at no cost to the United States. The settlement resolves allegations that, in calculating royalties, Devon improperly deducted payments to third-parties for gas transportation and processing that included costs to place the gas in marketable condition, and thereby knowingly underreported and underpaid royalties to the Department of the Interior (DOI).
“The United States allows companies to remove gas from federal lands, which belong to all of us, in exchange for the payment of appropriate royalties,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “This settlement demonstrates that the government will hold accountable those who take improper advantage of public resources.”
“We hold our public lands very dear in Colorado,” said Acting U.S. Attorney Matt Kirsch for the District of Colorado. “We will not allow companies extracting natural resources from those lands to avoid paying what they rightfully owe.”
“The OIG is committed to working with our partners at the Department of Justice, Office of Natural Resources Revenue, and the Office of the Solicitor to ensure that companies producing minerals from areas under Federal jurisdiction fulfill their legal and professional responsibilities,” said Special Agent in Charge Ron Gonzales for the DOI Office of Inspector General’s Energy Investigations Unit.
The resolution in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the United States Attorney’s Office for the District of Colorado, with the assistance of DOI’s Office of the Inspector General-Energy Investigations Unit, DOI’s Office of the Solicitor, and DOI’s Office of Natural Resources Revenue.
The matter was investigated by Senior Trial Counsel Gregory Pearson and Assistant U.S. Attorney Amanda Rocque of the District of Colorado.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Devon Energy Companies Agree to Pay $6.15 Million to Settle False Claims Act Allegations for Underpaying Royalties on Gas from Federal LandsRead the Press Release
Devon Energy Corporation, an Oklahoma-based oil and natural gas exploration and production company, and its affiliates, Devon Energy Corp. (Oklahoma) and Devon Energy Production Company LP (collectively, “Devon”), have agreed to pay $6.15 million to resolve allegations that it violated the False Claims Act by underpaying and underreporting royalties for natural gas from federal lands in Wyoming and New Mexico.
The United States leases federal lands for the production of natural gas in exchange for the payment of royalties on the value of the gas produced. Lessees must put the gas in marketable condition at no cost to the United States. The settlement resolves allegations that, in calculating royalties, Devon improperly deducted payments to third-parties for gas transportation and processing that included costs to place the gas in marketable condition, and thereby knowingly underreported and underpaid royalties to the Department of the Interior (DOI).
“The United States allows companies to remove gas from federal lands, which belong to all of us, in exchange for the payment of appropriate royalties,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “This settlement demonstrates that the government will hold accountable those who take improper advantage of public resources.”
“We hold our public lands very dear in Colorado,” said Acting U.S. Attorney Matthew T. Kirsch for the District of Colorado. “We will not allow companies extracting natural resources from those lands to avoid paying what they rightfully owe.”
“The Office of the Inspector General is committed to working with our partners at the Department of Justice, Office of Natural Resources Revenue and the Office of the Solicitor to ensure that companies producing minerals from areas under Federal jurisdiction fulfill their legal and professional responsibilities,” said Special Agent in Charge Ron Gonzales for the DOI Office of Inspector General’s Energy Investigations Unit.
The resolution in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the United States Attorney’s Office for the District of Colorado, with the assistance of DOI’s Office of the Inspector General-Energy Investigations Unit, DOI’s Office of the Solicitor, and DOI’s Office of Natural Resources Revenue.
The matter was investigated by Senior Trial Counsel Gregory Pearson and Assistant U.S. Attorney Amanda Rocque of the District of Colorado.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Colorado Nurse Sentenced to Prison for Stealing Controlled SubstancesRead the Press Release
DENVER – A Colorado nurse was sentenced to prison for abusing his position of trust by taking fentanyl from a hospital to use while on the job. Advanced Nurse Practitioner and Registered Nurse Kurt Vasquez, 41, was sentenced to three months’ imprisonment for illegally obtaining fentanyl through fraud and deception while working in the catheterization lab at a hospital.
Vasquez was a contract nurse placed at a hospital in summer 2019. Shortly after his placement, he began executing a plan to obtain fentanyl, midazolam, and propofol for his personal use. Between June 2019 and September 2019, he obtained more drugs than was necessary for scheduled procedures and then kept the drugs for himself. On some occasions, he also falsely documented in patient charts that he had administered drugs that were not actually administered. The defendant also took filled syringes, used the drugs himself, and then falsely stated that he had used the syringes on a patient. On at least two occasions, the defendant flushed used syringes and vials down a toilet, which caused flooding in the hospital.
“Vulnerable hospital patients need to trust that they will receive the drugs they are prescribed, and we will prosecute professionals who steal these drugs for their own use,” said Acting United States Attorney Matt Kirsch. “We commend our law enforcement partners for their careful investigation in this matter.”
“The theft of fentanyl by a primary care giver working with patients and using it on the job is a reminder of how bad the opioid epidemic is,” said Deanne Reuter, DEA Denver Division, Special Agent in Charge. “I want to applaud our Diversion Investigators and our partners at the FDA, Office of Criminal Investigations and the U.S. Attorney’s office on their work for this investigation.”
“The FDA oversees the U.S. drug supply to ensure that it is safe and effective, and those who knowingly tamper with medicines put patients’ health at risk,” said Special Agent in Charge Charles L. Grinstead, FDA Office of Criminal Investigations Kansas City Field Office. “We will continue to protect the public health and bring to justice health care professionals who take advantage of their unique position and compromise their patients’ health and comfort by tampering with needed drugs.”
The defendant ultimately agreed to work with law enforcement to ensure that no drugs were tampered and to otherwise mitigate the public health risk associated with his crime.
On September 14, 2021, U.S. District Judge Christine M. Arguello sentenced Mr. Vasquez to three months’ imprisonment. The sentence also includes one year of supervised release with conditions requiring 100 hours of community service. The defendant must also make state licensing authorities aware of his conviction and cooperate with their procedures. The government recommended a lower sentence in this case in consideration of the defendant’s confession and cooperation in disclosing everything known about his diversion of drugs, which was a matter potentially affecting the public health and integrity of the health care system. The felony offense in this case had a maximum sentence of four years of imprisonment and a fine of $250,000, per count.
The investigation in this case was conducted by the Food and Drug Administration, Office of Criminal Investigations, and the Drug Enforcement Administration.
Assistant United States Attorney Bryan Fields prosecuted the case.
CASE NUMBER: 20-cr-00067-CMA
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Ordering Silencers Delivers Federal Prison SentenceRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Ronald Allen Grace Jr., age 54, of Arvada, was sentenced to 3 years in federal prison for possessing an unregistered silencer.
According to the plea agreement, federal law enforcement intercepted two packages containing firearm sound suppressors, commonly known as silencers, which had been shipped from China and bound for the defendant’s address. Federal agents investigated the defendant and learned that he had previously been convicted of two felony offenses and was therefore prohibited from possessing a firearm or silencer.
Federal agents obtained a search warrant for the defendant’s home, where they recovered 15 firearms and 14 firearm suppressors. Under federal law, it is illegal to possess silencers which are not properly registered as required by the National Firearms Act. None of the defendant’s firearm suppressors had been registered as required under the National Firearms Act. Further investigation revealed that the silencers had been ordered from a Chinese website known to sell silencers and illegally ship them to addresses in the United States.
“Silencers are often used to facilitate crimes, which is why federal law requires that they be registered,” said Acting United States Attorney Matt Kirsch. “We will continue to protect public safety by seeking stiff penalties for people breaking federal firearms laws.”
“HSI will continue to bring our investigative capabilities to those who illegally obtain weapons and weapons’ silencers,” said Steven Cagen, special agent in charge, HSI Denver. “This sentence holds Grace accountable for his crimes and serves as a warning that HSI along with our law enforcement partners will work diligently to keep weapons out of the hands of convicted felons.”
“Many things are available for home delivery, suppressors are not one of them,” said ATF Special Agent in Charge David Booth. “ATF is proud to work with our Federal partners to keep communities safe and keep firearms out of the hands of prohibited persons.”
United States District Court Judge Phillip Brimmer sentenced Grace on September 3, 2021.
The investigation was conducted jointly by Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the Violent Crimes and Immigration Enforcement Section of the U.S. Attorney’s Office for the District of Colorado.
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 make our neighborhoods safer. PSN is 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, and local law enforcement to develop effective, locally-based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
CASE NUMBER: 20-cr-00199-PAB
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Colorado Nurses Held Accountable for Taking Controlled Substances from PatientsRead the Press Release
DENVER – In two separate cases, the U.S. Attorney’s Office for the District of Colorado held nurses accountable after they stole controlled substances from their patients.
- Katie Muhs, age 34, of Littleton, CO, was sentenced for her felony conviction for illegally obtaining fentanyl through fraud and deception while on the job as a Registered Nurse in a hospital’s Intensive Care Unit.
- Alicia Nickel-Tangeman, age 44, formerly of Woodland Park, Colorado, entered guilty pleas to four counts of obtaining controlled substances using fraud and deception while she was on the job as a Registered Nurse at a hospital in Colorado.
Ms. Muhs was employed as a registered nurse in the Intensive Care Unit at a hospital in Colorado in 2019 when she used her position to divert fentanyl, a schedule II controlled substance, for her own personal use. The defendant admitted that between June 2019 and September 2019, she stole fentanyl by removing it from the IV bags of ventilated patients using a sterile syringe. She also admitted to stealing fentanyl remaining in vials of the drug after patient administration. The defendant stated she would remove the excess drug from the vials and replace the stolen drug with saline, then have a fellow nurse witness her “waste,” or dispose of, the saline. In pleading guilty to the single-count Information in the case, charging a violation of 21 U.S.C. § 843(a)(3), the defendant specifically admitted that on September 8, 2019, she removed a bag of fentanyl from the automated medication control machine at the hospital under a different nurse’s login credentials. She then removed fentanyl from the IV bag for personal use.
Ms. Nickel-Tangeman used her position as Registered Nurse to access the rooms of patients she was not assigned to care for in a separate unit of a Colorado hospital. The defendant falsely and fraudulently told patients that she was conducting a “study” on the effectiveness of Patient-Controlled Analgesia (PCA) pumps, which deliver controlled substances to hospital patients to relieve pain on-demand when the patient pushes a button. The defendant then used a key to open the machine that secured the syringe of hydromorphone that was to be dispensed to the patient. The defendant removed a portion of the drug from the syringe, which she kept, then returned the syringe to the patient’s PCA. The defendant illegally obtained controlled substances in this way from three patients on four occasions. When confronted by law enforcement regarding her actions, the defendant lied about the diversions and persisted in her false story that she was engaged in a study with a well-known university. The defendant engaged in obstructionist conduct by producing to law enforcement a false e-mail that she stated came from a friend who asked her to participate in the research. The defendant created the false e-mail herself using a fictitious e-mail account she created in the name of this alleged friend.
“We cannot allow health care professionals to feed their own addictions by diverting critical pain medications from patients,” said Acting United States Attorney Matt Kirsch. “Thanks to the hard work of our office, the FDA Office of Criminal Investigations, and the DEA, the theft of medications from suffering patients in these cases has been stopped.”
“The FDA oversees the U.S. drug supply to ensure that it is safe and effective, and those health care professionals who fraudulently obtain needed medicines from patients put those patients’ health at risk,” said Special Agent in Charge Charles L. Grinstead, FDA Office of Criminal Investigations Kansas City Field Office. “Today’s announcement should serve as a reminder that such conduct will not be tolerated.”
“The DEA applauds the efforts of our Diversion Investigators that investigated this alongside the FDA and USAO,” said DEA Denver Field Division Special Agent in Charge Deanne Reuter. “We want it to be known that healthcare professionals who take advantage of patients in need by stealing their medications will be held accountable to the law.”
On August 27, 2021, U.S. District Judge Raymond Moore sentenced Ms. Muhs to three years of probation. The government agreed to recommend a probationary sentence in consideration of the defendant’s confession and her cooperation in disclosing full information on her diversion, which is a matter potentially affecting the public health and the integrity of the health care system. The felony offense is punishable by up to four years of imprisonment and a fine of $250,000, per count. The case number is 20-cr-00388-RM.
On August 26, 2021, Ms. Nickel-Tangemen pleaded guilty before U.S. District Court Judge Christine M. Arguello. Ms. Nickel-Tangemen will be sentenced on November 30, 2021. The case number is 21-cr-00214-CMA.
The investigations in these cases were conducted by the Food and Drug Administration, Office of Criminal Investigations, and the Drug Enforcement Agency.
Assistant United States Attorney Anna Edgar is prosecuting both of these matters.
CASE NUMBERS: 21-cr-00214-CMA, 20-cr-00388-RM
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Fort Collins Bookkeeper Sentenced for Mail Fraud and Money LaunderingRead the Press Release
Denver - Rose Horne, formerly of Fort Collins, Colorado, was sentenced yesterday to 36 months in prison, followed by 3 years of supervised release, and $977,115.87 in restitution for mail fraud and money laundering.
According to court documents, Horne worked as a bookkeeper for a small, family-run plumbing business in Fort Collins for 27 years. From at least October 2005 through June 2011, Horne engaged in a scheme to embezzle over $1 million from her employer. As part of her scheme, Horne wrote approximately 170 unauthorized checks to herself from her employer’s payroll bank account. Horne, who did not have signature authority for the business bank accounts, forged signatures on some checks or presented checks to the authorized signatories under the guise that the checks were for business expenses. Additionally, Horne obtained a personal credit card from Chase Bank, knowing the business also had a Chase credit card account, so that checks made payable to Chase Bank to pay her personal credit card bills would not raise questions.
Horne attempted to conceal the theft by writing “void” on check stubs, falsely writing the name of an actual vendor on the check stubs, and by cutting and blacking out portions of her employer’s bank statements that included copies of the checks in question.
“Frauds like this one can be financially and emotionally devastating to small business owners,” said Acting U.S. Attorney Matt Kirsch. “Ms. Horne ran but ultimately could not hide from the consequences of her crimes.”
Horne was sentenced by U.S. District Court Judge Robert E. Blackburn after pleading guilty on May 5, 2021. She was indicted on March 11, 2014 and remained a fugitive until her arrest in California in June 2020.
“IRS-Criminal Investigation will use all its available resources to pursue those who defraud American taxpayers” said Andy Tsui, IRS-Criminal Investigation Special Agent in Charge, Denver Field Office. “Horne abused the trust bestowed upon her by her employer, fled when her illegal activities were discovered, and is now being held accountable for her actions.”
This case was investigated by the Internal Revenue Service – Criminal Investigation.
This case was prosecuted by Assistant U.S. Attorney Pegeen D. Rhyne.
Case No. 14-cr-00093-REB
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Denver Man Sentenced for Mail Theft, Bank Fraud, and Identity TheftRead the Press Release
DENVER - Cory Allen Snyder, 35, of Denver, was sentenced Tuesday to 34 months in federal prison, followed by 5 years of supervised release, after being convicted of mail theft, bank fraud, and aggravated identity theft.
Snyder conducted a series of post office (PO) box thefts between November 2018 and March 2019 from United States Postal Service (USPS) facilities across the Front Range. The U.S. Postal Inspection Service (USPIS) received approximately 50 reports of break-ins at postal facilities that Snyder was believed to be responsible for. Using personally identifiable information obtained from stolen mail, Snyder opened a series of bank accounts in the names and identities of his mail theft victims, which he then deposited stolen checks which he modified to be payable to him. Postal Inspectors identified between $15,000 and $20,000 in fraudulent activity from multiple bank accounts.
”For months, Snyder preyed on victims who relied on the services of the USPS to securely transport their private information,” says Matt Kirsch, Acting U.S. Attorney. “This sentencing is a victory for the citizens of Colorado, who can trust that their mail is safe and secure.”
“Postal Inspectors never rest when seeking justice for mail theft victims, and this case brings to close a lengthy investigation that affected many victims across the Front Range,” said Ruth Mendonça, Inspector in Charge of the Denver Division of the U.S. Postal Inspection Service. “When mail thieves get prison time, Postal Inspectors uphold their mission to protect the U.S. Mail, and the public knows they can trust the U.S. Postal Service to safely transmit their important information,” said Mendonça.
Snyder was sentenced Tuesday August 17, 2021 by U.S. District Court Judge Daniel D. Domenico after pleading guilty on May 25, 2021.
This case was initiated by the U.S. Postal Inspection Service, with assistance from the Weld County Sheriff’s Office, Douglas County Sheriff’s Office, Broomfield Police Department, and Aurora Police Department.
The case was prosecuted by the Violent Crime and Immigration Enforcement Section of the United States Attorney’s Office for the District of Colorado.
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Kings de Monte Gang Member Sentenced to 10 Years in Federal PrisonRead the Press Release
DENVER – Felipe Nevarez of Alamosa, Colorado, was sentenced yesterday to 10 years in federal prison, followed by 4 years of supervised release, for possession with the intent to distribute methamphetamine.
According to court documents and facts presented at trial and sentencing, Nevarez was a leader in the violent Kings de Monte Gang operating in the San Luis Valley. On April 3, 2019, deputies with the Alamosa County Sherriff’s Department encountered Nevarez driving a black BMW near Alamosa and Monte Vista. He evaded law enforcement, reversing the BMW at top speed down a rural driveway. Nevarez got out of the car and fled into an open field. After nearly forty-five minutes of searching, law enforcement found Nevarez hiding within arm’s reach of a large bag of methamphetamine and in possession of more than $16,000 in cash. At the time, Nevarez had several state warrants for his arrest. This federal conviction was Nevarez’s ninth adult felony, including three prior drug distribution convictions.
United States District Court Judge Robert Blackburn handed down the sentence on August 10, 2021, following Nevarez’s conviction at jury trial on April 15, 2021. Nevarez was also ordered to forfeit over $16,000 in narcotics sales proceeds.
“We will prosecute violent gangsters no matter where they operate in our state, said Acting U.S. Attorney Matt Kirsch. “Nevarez’s conviction and justly deserved sentence should serve as a warning to gangs in the San Luis Valley.”
“The distribution of meth in rural communities can have devasting affects that go beyond those associated with taking the drug,” said Eric Balliet, deputy special agent in charge, HSI Denver. “HSI and its law enforcement partners work tirelessly to identify, arrest, and prosecute those involved in producing and selling this poison to keep our communities safe.”
Homeland Security Investigations, the Alamosa County Sherriff’s Department, the Alamosa Police Department, and Immigrations Customs and Enforcement conducted the investigation. Assistant United States Attorney Jeffrey Graves handled the prosecution of the case.
CASE NUMBER: 19-cr-00271-REB-JMC.
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Denver Oil and Gas Company Pays for Minerals Removed from Public Lands Without PermissionRead the Press Release
DENVER – Extraction Oil and Gas, Inc., an oil and gas company headquartered in Denver, has agreed to pay over $462,000 to resolve allegations that it drilled and operated three oil and gas wells where it removed minerals from federal public lands without permission. Extraction agreed to make this payment in addition to a $884,407 settlement it paid in February 2020 for another set of wells where it had similarly removed minerals from federal public lands without permission.
Oil and gas exploration companies may drill for oil, gas, or other minerals on federal lands managed by the Bureau of Land Management (“BLM”) only after first obtaining a federal mineral lease and permit to drill from BLM. Once companies obtain the proper lease and permit, they pay royalties, which are a percentage—typically 12.5%—of the value of the federal minerals they remove. Removing minerals without permission is considered trespassing.
The 2020 settlement covered twelve wells drilled in Weld County, Colorado. The United States contends that for eleven of these wells, Extraction’s trespass was willful. This willful trespass made Extraction liable to the United States for the full value of all minerals it removed from the trespassing wells, and Extraction was not permitted to reduce that payment with any offset for its costs of drilling and production.
The 2021 settlement covered three wells, also located in Weld County. The United States contends that for these wells, Extraction removed minerals without permission, but did not act willfully. This non-willful trespass made Extraction liable to the United States for the value of all minerals removed from the trespassing wells, but Extraction was permitted to offset its payment with a credit for its costs of drilling and production.
“Protecting public lands and resources is a priority for our office,” said Acting U.S. Attorney Matt Kirsch. “Oil and gas companies that do not follow the mineral leasing process before removing natural resources from federal lands are trespassing. We will continue to hold them liable for damages from that trespassing--in amounts up to the full value of the minerals they removed, not just the royalties they would have owed had they first obtained a federal lease.”
Ron Gonzales, Special Agent in Charge for the Department of the Interior, Office of Inspector General’s Energy Investigations Unit, stated, “This settlement is the result of the OIG, Department of Justice, Bureau of Land Management, and Office of the Solicitor working collaboratively and diligently to ensure minerals removed from federal ownership are properly accounted for on behalf of the American public.”
This case was handled by Assistant U.S. Attorney Andrea Wang.
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Jamaican National Sentenced for Stealing more than $970,000 in Lottery ScamRead the Press Release
DENVER – Jamaican national Leonard Luton of Brooklyn, New York was sentenced yesterday to 108 months in federal prison, followed by 3 years supervised release and $881,477.41 in restitution for his role in a lottery scheme that targeted an elderly woman in Estes Park, Colorado.
According to court documents, Luton and another Jamaican national conspired to convince an elderly victim that she had won a $2.8 million dollar lottery and a Mercedes Benz but needed to pay thousands of dollars in “fees” in order to receive her winnings. During the scam, the victim was instructed to mail packages of cash and cashier’s checks, in addition to six iPhones, to the addresses of Luton’s friends.
On two occasions, Luton made trips to the victim’s home in Estes Park to pick up packages of cash. During the first trip in October of 2018, one of Luton’s co-conspirators went to the victim’s door at 1:30 a.m., identified himself as an FBI agent, showed her a fake FBI badge, and directed her to hand over a package containing $65,000 in cash. On the second trip in January of 2019, Luton was arrested at the victim’s residence when he arrived to pick up more cash. Upon his arrest, Luton was in possession of one of the iPhones purchased by the victim. In total, the victim was scammed out of more than $970,000.
“Lottery scams are just one way that fraudsters prey on the elderly and vulnerable victims,” said Acting U.S. Attorney Matt Kirsch. “Together with our law enforcement partners, we are working to protect the elderly and to make scammers like Luton face justice.”
Luton was sentenced by United States District Court Judge Christine M. Arguello, after being convicted on February 13, 2020 of one count of conspiracy to commit mail fraud and eight counts of aiding and abetting mail fraud. The Court also entered an order of forfeiture in the amount of $484,123.16 and imposed a $900 special assessment fee.
"This sentence is a significant step toward justice for the elderly victim of Mr. Luton's self-serving greed and deception. The FBI is committed to combating those who prey on vulnerable members of our community," said FBI Denver Special Agent in Charge Michael Schneider. "The FBI extends its appreciation to the Larimer County Sheriff’s Office, Estes Park Police Department, and the U.S. Attorney's Office for their collaboration on this investigation."
This case was investigated jointly by the FBI and the Estes Park Police Department with assistance from the Larimer County District Attorney’s Office.
Assistant United States Attorneys Martha Paluch and Sarah Weiss prosecuted this matter.
CASE NUMBER: 19-cr-00098
Attorney Sentenced for Conspiracy to Commit Wire Fraud and Money LaunderingRead the Press Release
DENVER – Former California attorney David Kaplan, of Las Vegas, was sentenced on August 3, by U.S. District Court Judge Christine M. Arguello for conspiracy to commit wire fraud and money laundering.
According to the information contained in court documents, between approximately September 2014 through October 2015, Kaplan and two other individuals worked to defraud investors out of money and property through materially false and fraudulent representations. The co-conspirators obtained approximately $12 million from investors by claiming they could invest risk-free in offshore investments with an occasional 10% return on investment per month. As part of the scheme, Kaplan established and controlled business entities, including several charitable organizations, to deposit and transfer investor funds and pay himself for personal expenses. Using his position and attorney trust accounts, Kaplan was able to gain the trust of investors and create the pretense that investor monies were held in trust. Kaplan made payments to investors to lull them and encourage the recruitment of additional investors.
”Of course, attorneys are not above the law, and this sentencing demonstrates that we can, and will, prosecute anyone who breaks the law to the fullest extent,” said Acting U.S. Attorney Matt Kirsch. “We are proud of the cumulative effort of all who helped ensure Mr. Kaplan could not victimize additional investors.”
Kaplan, who diverted over $2 million for his own personal benefit, pled guilty on April 7, 2021 and was sentenced to 36 months in prison yesterday. Kaplan, never disclosed to investors the precise amount of financial benefit he was to receive, including the terms of his compensation, costs or fees, or the identity of the “Fiduciary,” despite investor requests for this information.
“Investment schemes that seem too good to be true should be a warning to investors to stay clear,” said IRS-Criminal Investigation Special Agent in Charge Andy Tsui. “This sentencing shows that IRS-CI will use all its investigative tools to stop the criminal behavior of those who prey on investors for their own personal financial gain.”
“Mr. Kaplan capitalized on his position of trust as an attorney to create an elaborate investment scheme, touting inflated returns and even leveraging support for several charities, all of which proved to be a mirage that cost investors millions," said FBI Denver Special Agent in Charge Michael Schneider. "Today’s sentence sends a message that the FBI will find criminals who greedily prey on investors and corrupt financial markets no matter how clever they believe they are. We thank IRS-Criminal Investigation and the U.S. Attorney’s Office for their diligent work on this case."
This case was investigated by the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Tim Neff.
Case Number: 19-cr-00237
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Former Colorado Judge Sentenced for Obstructing Federal Investigation of Drug Trafficking OrganizationRead the Press Release
DENVER - A former Colorado state court judge was sentenced Wednesday in the District of Colorado to a year and one day in prison for obstructing a federal task force investigation of a large-scale cocaine trafficking organization.
Ryan Kamada, 42, of Windsor, Colorado, pleaded guilty on June 30, 2020. According to court documents, beginning in or around October 2018, a federal task force was investigating a drug trafficking organization that was distributing large quantities of cocaine throughout northern Colorado. One of the members of the organization was a drug trafficker who lived in Greeley, Colorado. Kamada learned about the investigation in his official capacity as a judge and then disclosed details of the investigation to a friend, who then tipped off the target individual. Kamada had known the drug trafficker since high school.
“By leaking the existence of a search warrant to help his close friend avoid possible criminal exposure, Ryan Kamada abused the power of his judicial position and violated the trust that the people of Colorado placed in him” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “This prosecution confirms that no person – even a judge – is above the law.”
“Public officials charged with upholding the law must be held to the same standard by which they judge others,” said Acting U.S. Attorney Matt Kirsch for the District of Colorado. “Former Judge Kamada has been held properly accountable for his breach of that public trust.”
“The FBI has a solemn responsibility to investigate allegations of public corruption and the abuse of power by any public servant,” said Special Agent in Charge Michael Schneider of the FBI’s Denver Field Office. “The actions of Ryan Kamada were not only illegal, but they also interfered with a federal investigation and undermined public trust in our judicial system. This sentence highlights the commitment of the FBI and our partners to root out corruption. FBI Denver thanks the Greeley Police Department and the U.S. Attorney’s Office for their dedication throughout this investigation.”
Beginning in January 2019, Kamada served as a District Court Judge of the 19th Judicial District of Colorado. While serving as the “on call” judge one evening in April 2019, Kamada received a phone call from a task force officer who was seeking a search warrant related to the investigation into the drug trafficker. The task force officer pointed out to Kamada that he was associated with the drug trafficker on social media. As a result, Kamada recused himself from the case. Early the next morning, Kamada called his best friend, Geoffrey Chacon, who had also known the drug trafficker since childhood. Kamada told Chacon that law enforcement was “watching” the drug trafficker’s house, car, and phone, and instructed Chacon to “stay away” from the drug trafficker. Chacon subsequently informed the drug trafficker about the warrant and modified Chacon’s own behavior to avoid law enforcement attention.
The information that Chacon provided to the drug trafficker also caused the drug trafficker to change his pattern of conduct and substantially interfered with the task force’s investigation. After Chacon relayed the information that he received from the judge to the drug trafficker, Chacon destroyed records of his communications with the drug trafficker to impair efforts by law enforcement to tie Chacon to the drug trafficker. In November 2019, Chacon pleaded guilty in federal court to one count of destruction of records with the intent to obstruct a federal investigation and he is scheduled to be sentenced on Aug. 27.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Matthew T. Kirsch of the District of Colorado; and Special Agent in Charge Michael H. Schneider of the FBI’s Denver Field Office made the announcement.
The FBI’s Denver Field Office investigated the case, with substantial assistance from the Greeley Police Department.
Trial Attorney John Taddei of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Bryan Fields of the District of Colorado prosecuted the case.
Former Colorado Judge Sentenced for Obstructing Federal Investigation of Drug Trafficking OrganizationRead the Press Release
A former Colorado state court judge was sentenced Wednesday in the District of Colorado to a year and one day in prison for obstructing a federal task force investigation of a large-scale cocaine trafficking organization.
Ryan Kamada, 42, of Windsor, pleaded guilty on June 30, 2020. According to court documents, beginning in or around October 2018, a federal task force was investigating a drug trafficking organization that was distributing large quantities of cocaine throughout northern Colorado. One of the members of the organization was a drug trafficker who lived in Greeley, Colorado. Kamada learned about the investigation in his official capacity as a judge and then disclosed details of the investigation to a friend, who then tipped off the target individual. Kamada had known the drug trafficker since high school.
“By leaking the existence of a search warrant to help his close friend avoid possible criminal exposure, Ryan Kamada abused the power of his judicial position and violated the trust that the people of Colorado placed in him,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “This prosecution confirms that no person – even a judge – is above the law.”
“Public officials charged with upholding the law must be held to the same standard by which they judge others,” said Acting U.S. Attorney Matt Kirsch for the District of Colorado. “Former Judge Kamada has been held properly accountable for his breach of that public trust.”
“The FBI has a solemn responsibility to investigate allegations of public corruption and the abuse of power by any public servant,” said Special Agent in Charge Michael Schneider of the FBI’s Denver Field Office. “The actions of Ryan Kamada were not only illegal, but they also interfered with a federal investigation and undermined public trust in our judicial system. This sentence highlights the commitment of the FBI and our partners to root out corruption. FBI Denver thanks the Greeley Police Department and the U.S. Attorney’s Office for their dedication throughout this investigation.”
Beginning in January 2019, Kamada served as a District Court Judge of the 19th Judicial District of Colorado. While serving as the “on call” judge one evening in April 2019, Kamada received a phone call from a task force officer who was seeking a search warrant related to the investigation into the drug trafficker. The task force officer pointed out to Kamada that he was associated with the drug trafficker on social media. As a result, Kamada recused himself from the case. Early the next morning, Kamada called his best friend, Geoffrey Chacon, who had also known the drug trafficker since childhood. Kamada told Chacon that law enforcement was “watching” the drug trafficker’s house, car and phone, and instructed Chacon to “stay away” from the drug trafficker. Chacon subsequently informed the drug trafficker about the warrant and modified Chacon’s own behavior to avoid law enforcement attention.
The information that Chacon provided to the drug trafficker also caused the drug trafficker to change his pattern of conduct and substantially interfered with the task force’s investigation. After Chacon relayed the information that he received from the judge to the drug trafficker, Chacon destroyed records of his communications with the drug trafficker to impair efforts by law enforcement to tie Chacon to the drug trafficker. In November 2019, Chacon pleaded guilty in federal court to one count of destruction of records with the intent to obstruct a federal investigation, and he is scheduled to be sentenced on Aug. 27.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, Acting U.S. Attorney Matthew T. Kirsch of the District of Colorado and Special Agent in Charge Michael H. Schneider of the FBI’s Denver Field Office made the announcement.
The FBI’s Denver Field Office investigated the case, with substantial assistance from the Greeley Police Department.
Trial Attorney John Taddei of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Bryan Fields of the District of Colorado prosecuted the case.
Denver Police Partner with Federal Law Enforcement to Crack Down on Gun CrimesRead the Press Release
DENVER - The Denver Police Department (DPD), U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives Denver Field Division (ATF), the Denver District Attorney’s Office, and the U.S. Attorney’s Office for the District of Colorado announced an enhanced partnership in the fight against gun-related crime in Denver. The goal is identifying, arresting, and prosecuting the offenders most involved with violent crime in our community. The enhanced approach focuses on violent felons who carry or use firearms and who are also the most likely contributors to violence in Denver.
“If you commit a gun crime in Denver, you should know that federal, state, and local law enforcement will be working together to catch you and send you to jail for a long time,” said Acting United States Attorney Matt Kirsch.
“Gun-related crime has devastating, lasting effects on our community and this strategy is a smart evolution in our approach to addressing the problem of convicted violent felons with guns,” said Chief of Denver Police Paul M. Pazen. “Today, we stand together as law enforcement partners to put convicted violent felons on notice – if you choose to illegally possess or use a firearm in Denver, we will do everything within our authority to ensure you face the greatest penalties.”
“Partnerships such as this are one of ATF’s most powerful tools to protect the public,” said ATF Denver Special Agent in Charge David Booth. “We look forward to utilizing this enhanced process to continue protecting the public and bringing violent offenders to justice.”
The enhanced approach pairs an ATF agent who specializes in illegal firearms investigations with a dedicated DPD investigator to:
- respond to investigations in-progress to assist officers on-scene with gathering evidence and creating reports
- review cases involving Possession of a Weapon by a Previous Offender (POWPO) for prosecution by either the Denver District Attorney’s Office or the United States Attorney’s Office for the District of Colorado
- prioritize cases for the consideration of filing the most serious available charges based on connections to shootings, whether the crime occurred in a crime hotspot, and the likelihood of future violent activity
This work builds on Denver’s previous efforts at tackling gun violence through prosecutions targeted at the most dangerous offenders.
The enhanced process will be supported by new training delivered to all DPD officers to ensure gun charges are thoroughly documented from the outset of investigations and to enable officers to draw on federal investigative and prosecutorial resources in appropriate cases. Procedures will also feature regular communication between the U.S. Attorney’s Office and the Denver District Attorney’s Office to determine the best outcomes in individual cases and ensure the most efficient and effective prosecutorial decisions.
A convicted violent felon possessing a firearm violates Title 18, United States Code, Section 922(g)(1), which carries penalties of up to ten years of imprisonment and a $250,000 fine. Federal law also creates mandatory minimum sentences of at least five years of imprisonment for possessing, brandishing, or discharging a firearm during the commission of other violent or drug crimes.
Examples of previous similar successful federal prosecutions of violent felons in possession of a firearm or ammunition include:
- In United States v. Rhyan Littlejohn-Connor, 20-cr-00341-RBJ, the defendant fired 12 shots at two people outside an apartment building on September 27, 2020, striking one in the head. He was convicted of being a felon in possession of ammunition in violation of 18 U.S.C. § 922(g)(1). On June 14, 2021, the defendant was sentenced to 84 months of imprisonment in the federal Bureau of Prisons.
- In United States v. Herman Colbert, 19-cr-00321-RBJ, the defendant got into an altercation regarding a relationship dispute on July 2, 2019. During the fight, the defendant shot and killed the other person. The defendant was convicted of being a felon in possession of a firearm and ammunition in violation of 18 U.S.C. § 922(g)(1) and was sentenced to 120 months of imprisonment on February 4, 2021.
- In United States v. Joshua Taron Jones, 20-cr-00150-PAB, the defendant shot at six individuals in an apartment complex during a dispute on May 6, 2020. Investigators discovered a sawed-off shotgun in the defendant’s residence, and he was charged with possession of an unregistered short-barreled shotgun in violation of 26 U.S.C. § 5851(d). He was convicted and sentenced to 15 months’ imprisonment on January 29, 2021.
- In United States v. Jarod Rajai Walker, 19-cr-00095-CMA, the defendant was involved in a shootout on February 20, 2019, where he shot and killed another person. The defendant was charged with being a felon in possession of a firearm and ammunition in violation of 18 U.S.C. § 922(g)(1). He was convicted and sentenced to 96 months’ imprisonment on September 25, 2019.
- In United States v. Nickie Nathanial Rico and Armando Rogelio Durete, 19-cr-00145-PAB, both defendants were involved in a shootout on September 16, 2018, in downtown Denver at the corner of 15th and Market. An innocent bystander was hit and seriously wounded by the gunfire. Both defendants were charged with being felons in possession of firearms and ammunition in violation of 18 U.S.C. § 922(g)(1). Durete was convicted after trial and Rico pled guilty to the charge. Rico was sentenced on February 7, 2020, to 97 months imprisonment. Durete was sentenced on February 28, 2020, to 120 months imprisonment.
In a related effort, Metro Denver Crime Stoppers, DPD and ATF Denver are partnering to post billboards in the five areas of Denver identified as violent crime hot spots, which are the vicinities of South Federal Boulevard & West Alameda Avenue, Colfax Avenue & Broadway, East Colfax Avenue & North Yosemite Street, East 47th Avenue & North Peoria Street, and Martin Luther King Jr. Boulevard & North Holly Street. The billboards will encourage community members to report gun crime and illegal activity to help address and prevent gun violence, and the billboards will also promote securely storing firearms to prevent theft or misuse. The billboards are part of Denver’s Collaborative Crime Prevention Initiative that combines evidence-based precision policing in the identified hot spots with supports for residents provided by Denver city agencies and community-based organizations.