District of Colorado
Press releases recorded for this federal judicial district.
Three Men Arrested at Downtown Denver Hotel Charged with Being Prior Felons in Possession of a FirearmRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Ricardo Rodriguez, age 44, Richard Platt, age 42, and Gabriel Rodriguez, age 48 (no relation), have each been charged with being felons in possession of firearms in violation of Title 18, United States Code, Section 922(g)(1). Gabriel Rodriguez has also been charged with possession with intent to distribute methamphetamine, in violation of Title 21, United States Code, Section 841(a)(1) and (b)(1)(B)(viii). The three will make their initial appearances in federal court in Denver at 2:00 today, where they will be advised of the charges against them.
According to the facts contained in the complaints, law enforcement officers responded to the Maven Hotel in downtown Denver on July 9th after receiving a report of suspicious activity from hotel staff. After officers obtained search warrants for the two rooms rented by Ricardo Rodriguez and Richard Platt, respectively, they located multiple firearms in each room. On the same day, officers contacted Gabriel Rodriguez in the hotel lobby. He was carrying a backpack which contained a loaded 9mm pistol as well as significant quantities of illegal narcotics. Each of the three defendants has multiple previous felony convictions.
As previously noted by the Federal Bureau of Investigation, there is currently no evidence of any intent or plan to disrupt or commit violence by these defendants in connection with the MLB All-Star festivities. State charges previously filed against these same defendants have been dismissed.
The charges in the criminal complaints are allegations, and the defendants are presumed innocent until proven guilty.
Case numbers: 21-mj-123-STV, 21-mj-124-STV, 21-mj-125-STV
gabriel_rodriguez_complaint_21-mj-123-stv.pdf
ricardo_rodriguez_complaint_21-mj-124-stv.pdf
richard_platt_complaint_21-mj-125-stv.pdf# # #
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Pueblo Man Sentenced for Being a Prior Felon in Possession of a FirearmRead the Press Release
DENVER — The U.S. Attorney’s Office for the District of Colorado announces that Angel Castro of Pueblo, CO, was sentenced by U.S. District Court Judge Raymond Moore to serve 120 months in prison for possessing a firearm after previously being convicted of a felony. Castro pled guilty to the present charge on April 22, 2021.
After threatening another individual on social media over the course of several days, Castro shot the person in the back of the head. The shooting occurred on July 10, 2020, while the victim was driving his car in Pueblo. Because he was able to quickly obtain medical treatment, the victim survived. When officers arrested Castro on August 31, 2020, they found a loaded firearm. Forensic examination connected the recovered firearm to a shell casing recovered from the shooting. Castro had previously been convicted of a felony offense.
“Angel Castro’s callous willingness to shoot another person made him an obvious danger to the community,” said Acting U.S. Attorney Matt Kirsch. “The U.S. Attorney’s Office will pursue any available federal charges to get dangerous criminals like him off the streets.”
“Part of law enforcement’s efforts to reduce violent crime is removing weapons from convicted felons like Angel Castro, who have demonstrated a propensity for violence against others," said FBI Denver Special Agent in Charge Michael Schneider. "The ten-year sentence in this case should serve notice of the FBI’s commitment to the Pueblo community and to our continued work with the Pueblo Police Department, the Pueblo County Sheriff’s Office, and the U.S. Attorney’s Office to make our community safer for everyone.”
This matter was investigated by the Federal Bureau of Investigation and the Pueblo Police Department and prosecuted by the Violent Crime and Immigration Section of the U.S. Attorney’s office.
Case No. 20-cr-00323-RM
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Gypsum Business Owner Sentenced for Tax FraudRead the Press Release
GRAND JUNCTION — The U.S. Attorney’s Office for the District of Colorado announces that Trenton Switzer, age 40, of Gypsum, CO was sentenced by U.S. District Court Judge Christine M. Arguello to serve 12 months and one day in prison and to pay restitution of $241,964.71 for submitting a false tax return to the IRS. Switzer previously pled guilty to an Information on April 26, 2021.
According to the filed information and the stipulated facts in the plea agreement, Switzer operated a sales training business that generated significant income. Switzer then attempted to avoid paying taxes on his income by falsely claiming that he had made a $250,000 charitable contribution to a fake church that he created for the purpose of evading taxes. As part of this scheme, Switzer incorporated the “Church of Divine Sovereignty” and opened a bank account in its name. Less than 24 hours after incorporating it, Switzer filed documents dissolving the fake church. Later, Switzer deposited $250,000 into the church bank account he created and then used that money to purchase Bitcoin.
When it came time to prepare his 2015 tax return, Switzer provided his tax preparer with a letter, signed by Switzer himself as the “pastor” of his fake church, purporting to memorialize the $250,000 as a charitable contribution. Switzer’s tax preparer warned him that his fake church did not qualify as a charitable organization and that the purported payment could not be deducted. Nevertheless, despite these clear warnings, Switzer signed and personally filed his 2015 U.S. Federal Tax Return, falsely claiming a $250,000 charitable contribution deduction.
“Mr. Switzer’s claim to be the pastor of a fake church he created to evade his taxes landed him in a real prison,” said Acting U.S. Attorney Matt Kirsch. “My office will continue to aggressively pursue people who cheat on their taxes.”
“Trenton Switzer’s creation of a nonprofit church to generate false charitable deductions is not only a crime but an insult to all taxpaying citizens who pay their fair share of taxes,” said IRS-Criminal Investigation Special Agent in Charge Andy Tsui. “IRS-CI Special Agents will always devote the necessary resources to bring to justice those who fail to uphold their civic obligation to file truthful and accurate income tax returns.”
This matter was investigated by IRS-CI and prosecuted by Assistant United States Attorney Jeremy Chaffin.
Case number. 21-cr-00093-CMA-GPG
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Drug Trafficker with Firearms Sentenced to 15 Years in Federal PrisonRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that defendant Anthony Eli Lucero, a/k/a “Blade,” age 42, of Denver, was sentenced to 15 years in federal prison after pleading guilty to possession of methamphetamine with intent to distribute in violation of 21 U.S.C. § 841. The sentence will be followed by 10 years of federal supervised release. The Court also ordered the forfeiture of approximately $35,873 in seized U.S. currency as well as 9 firearms, high-capacity magazines, and over 100 rounds of assorted ammunition
According to the plea agreement, on May 4, 2018, state and federal narcotics investigators were preparing to execute a search warrant at a residence located on Lowell Blvd., in Denver. Inside, Anthony Lucero sold methamphetamine and heroin to a man later identified as Christopher Chavez. Denver Police stopped Chavez and other individuals in a Cadillac a short distance from the residence. The police recovered approximately two pounds of methamphetamine from the backseat of the Cadillac and approximately 14 grams of heroin and 27 grams of methamphetamine from Chavez himself. All the drugs had come from defendant Lucero.
A few minutes later, the Denver Police Department’s SWAT team executed the search warrant. After breaking through a barricaded front door, the officers found Lucero inside. Investigators also found and seized distribution amounts of narcotics, 9 firearms (including AK-47 style rifles with high capacity magazines), ammunition, body armor, and scales. In total, investigators recovered over 2 kilograms of methamphetamine, 196 grams of heroin, 576 grams of cocaine, and 249 grams of crack cocaine.
Lucero is the last of several individual to be sentenced in connection with this case. Last month, co-defendant Christopher Chavez was sentenced to 102 months’ imprisonment (8.5 years) for his role. The Court previously sentenced additional co-defendants in relation to this investigation and prosecution, including Donovan Roybal, who was sentenced to a total term of 70 months’ imprisonment, and Jonathan James Lovato, who was sentenced to serve 72 months’ imprisonment.
“The U.S. Attorney’s Office will continue to work with our law enforcement partners to aggressively prosecute drug dealers, especially those, like Mr. Lucero, who possess guns in connection with their drug trade,” said Acting U.S. Attorney Matt Kirsch
“The DEA is very pleased with this sentencing,” said DEA Denver Field Division Special Agent in Charge Deanne Reuter. “Lucero is another example of a heavily armed criminal, distributing poison in our communities who is being held accountable.”
“This case demonstrates the commitment that ATF has to work in partnership with our law enforcement partners. We will continue to actively pursue any individuals that bring violence into our neighborhoods,” said ATF Special Agent in Charge David Booth.
United States District Court Judge Raymond P. Moore sentenced Anthony Lucero on July 6, 2021.
The Denver Police Department, the Lakewood Police Department, West Metro Drug Task Force, U.S. Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives all participated in this investigation and prosecution. Assistant United States Attorneys Cyrus Chung and Bradley Giles handled the prosecution of the case.
Case number: 18-cr-00236-RM
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Arizona Man Pleads Guilty to Submitting 70 Fraudulent Loan Applications in $4 Million Covid-19 Relief Wire Fraud SchemeRead the Press Release
DENVER – Michael Lain, 56, of Queen Creek, Arizona, pleaded guilty today to wire fraud in front of U.S. District Judge William J. Martinez. His sentencing hearing has been set for December 3, 2021.
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 United States Small Business Administration (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 LLCs seeking both loans and grants from the program. In these applications, Lain made false statements about the LLCs’ number of employees, gross revenues, and cost of goods sold during the 12 months prior to January 30, 2020. He also falsely agreed to use the funds solely as working capital for the LLCs when he intended to use the funds for other purposes, including the purchase of a new home. Seventy of his EIDL applications were approved and funded by the SBA out of its Denver Finance Center. Because of his false statements, Lain’s LLCs received $3,830,400 in EIDL proceeds and $336,000 in Economic Injury Disaster Grant (EIDG) proceeds. As part of his plea agreement, Lain has agreed to pay restitution and also to repay $294,900 that he received as a result of fraudulent PPP applications he also submitted to the SBA.
“Anyone who uses lies and deceit to defraud the generosity of the American taxpayer can expect to find the U.S. Attorney’s Office and its law enforcement partners standing guard,” warned Deputy U.S. Attorney J. Chris Larson. “Taxpayers want these funds to be used as intended -- to save businesses hit hard by the pandemic, not to line the pockets of criminals.”
“Today’s announcement should serve as a strong deterrent to anyone contemplating committing COVID-19 related fraud,” said Marc DellaSala, Special Agent in Charge, Secret Service Denver Field Office. “Actions taken by the Secret Service, our financial partners and the U.S. Attorney’s Office are ensuring that Small Business Administration Economic Injury Disaster Loans are getting to the individuals whose livelihoods have suffered during the global health crisis. The Secret Service is determined to protect the United States financial infrastructure against individuals and organizations attempting to profit with taxpayer funded stimulus at the expense of America’s small businesses.”
“Lying to gain access to economic stimulus funds for personal gain will be met with justice,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “SBA OIG will aggressively pursue evidence of fraud against SBA’s programs aimed at assisting the nation’s small businesses struggling with the pandemic challenges. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
The United States Secret Service and the Small Business Administration-Office of Inspector General investigated this case in connection with their work on the Colorado-based EIDL Fraud Task Force. Assistant United States Attorneys Pegeen Rhyne and Patricia Davies are handling the prosecution.
CASE NUMBER: 21-cr-00175-WJM
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Denver Man Charged with COVID Relief Loan FraudRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announced that Anthony Zaghab, 52, of Denver was arraigned today on charges relating to over $700,000 in fraudulently obtained COVID-relief loans and unemployment insurance. He has been charged with wire fraud.
According to the allegations contained in an Information filed in federal court, starting in April 2020, Zaghab submitted false and fraudulent Economic Injury Disaster Loan (“EIDL”) applications and Paycheck Protection Program (“PPP”) applications to the Small Business Administration and to an approved lender. By February 2021, he had submitted fraudulent applications that netted him $660,000 worth of payments. Zaghab also claimed and received over $40,000 in unemployment insurance benefits on behalf of ineligible family members without their knowledge or agreement.
Zaghab owned or controlled several corporate entities. He also claimed to own or control several more entities bearing his name and the names of family members. In loan applications for these entities, Zaghab falsely stated the number of employees, the purported gross revenues, and the purported cost of goods sold. Zaghab also applied for and obtained an EIDL for a fictitious business entity bearing the name of his deceased father. In addition, Zaghab applied for and attempted to obtain economic injury disaster loans on behalf of fictitious or purported business entities in the names of family members, without the knowledge or consent of those family members.
Zaghab submitted a PPP application in June 2020 for a business called “Anthony Zaghab.” He falsely represented the date the business was established and its monthly payroll. He received a PPP loan in the amount of $20,833. Zaghab applied for and received a second PPP loan of $20,832 for “Anthony Zaghab” in February 2021. He received two more PPP loans of over $20,830 each for a fictitious business in the name of a family member.
Zaghab also applied for and obtained approximately $41,500 in Colorado Pandemic Unemployment Assistance (“PUA”) for ineligible family members without their knowledge and consent. These family members included his mother and sister, both of whom resided outside of the United States, and his deceased father.
The charges in the Information are allegations. The Defendant is presumed innocent until proven guilty.
The United States Secret Service investigated this case. Assistant U.S. Attorneys Martha Paluch and Rebecca Weber are handling the prosecution.
Case Number: 21-cr-00188-RBJ
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Former Ridgway Physician Agrees to Forgo Practicing Medicine and Pay Penalty to Resolve Allegations that He Prescribed Controlled Substances without a Medical LicenseRead the Press Release
DENVER – Loren D. Sherwood, a former physician at Dave Sherwood Family Medicine in Ridgway, Colorado, has agreed to forgo practicing medicine and pay a penalty to resolve civil allegations that he unlawfully prescribed controlled substances without a medical license in violation of federal law.
Dr. Sherwood’s medical license with the State of Colorado expired on April 30, 2017. For nearly nine months after the expiration of his medical license, Dr. Sherwood continued to issue prescriptions for controlled substances. The United States contends that this conduct violated the Controlled Substances Act, which allows only practitioners with a valid professional license to issue prescriptions of controlled substances. The United States further contends that by prescribing controlled substances after his medical license had expired, Dr. Sherwood caused invalid claims for payment to be submitted to the federally funded Medicare Program, in violation of the False Claims Act.
Dr. Sherwood cooperated with the government’s investigation of the allegations. To resolve this matter, Dr. Sherwood has agreed to pay $21,000, over time. If Dr. Sherwood fails to make timely payments under the terms of the agreement, he will be liable for $40,000. In addition, Dr. Sherwood has also agreed that he will not practice medicine again, will not in the future seek a medical license from Colorado or any other state, and will not in the future seek the reinstatement of his Drug Enforcement Administration (“DEA”) registration number, which has been retired.
“Ensuring that only licensed medical professionals issue prescriptions for controlled substances is critical to protect patients,” said Acting U.S. Attorney Matt Kirsch. “It also helps reduce the illegal supply of opioids and other prescription drugs available for abuse.”
“The DEA continues its commitment to safeguard the public by investigating those who illegally prescribe controlled substances,” said Deanne Reuter, Special Agent in Charge, DEA Denver Field Division. “I commend the tireless efforts of our Diversion Investigators to ensure that doctors and pharmacists in our communities are abiding by the laws and guidelines set forth for the safe prescribing of medications.”
“Violating protocols that are meant to protect patients and Federal health care programs can result in serious penalty that lasts indefinitely, as the outcome of this case proves,” stated Curt L. Muller, Special Agent in Charge with the Department of Health and Human Services Office of Inspector General. “HHS-OIG regards patient safety and Medicare program integrity as top priorities as we work with our law enforcement partners to detect and deter fraud.”
This matter was investigated by the DEA’s Denver Field Division and the U.S. Department of Health and Human Services, Office of Inspector General. This matter was handled by Assistant United States Attorney Andrea Wang on behalf of the United States Attorney’s Office for the District of Colorado.
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Aurora Man Sentenced to 11.5 Years in Federal Prison for Distribution of Methamphetamine and for being a Felon in Possession of a FirearmRead the Press Release
DENVER -- Peter Trujillo, 33, of Aurora, Colorado, was sentenced today to 138 months in federal prison by U.S. District Judge Raymond P. Moore. Trujillo previously pleaded guilty to one count of distribution of methamphetamine and one count of possession of a firearm by a prohibited person. The prison sentence will be followed by a five-year term of supervised release.
Trujillo sold methamphetamine and firearms to undercover ATF agents in November and December 2017, during four separate meetings in Denver County. He sold a total of nine firearms ranging from pistols to AR-15-style rifles, several hundred rounds of ammunition, and approximately 300 grams of methamphetamine. Trujillo was legally prohibited from possessing firearms due to his 2012 Colorado felony conviction for identity theft.
“The U.S. Attorney’s Office is committed to keeping the dangerous mixture of illicit drugs and guns from our streets,” said Deputy U.S. Attorney J. Chris Larson. “Harsh penalties await those like Mr. Trujillo who seek to profit by putting our communities in peril.”
“Those who bring violence and dangerous drugs into our communities will be met not only with every resource ATF has, but also with the skill and dedication of all of our partners at the Department of Justice,” said ATF Special Agent in Charge David Booth.
Trujillo is the second and last defendant to be sentenced in connection with this case. Co-defendant Patrick Sweeter was sentenced in April 2021 to a year and a day of imprisonment followed by three years of supervised release, following his guilty plea to one count of possession of a firearm by a prohibited person.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Drug Enforcement Administration conducted the investigation in this case. This matter was prosecuted by Assistant United States Attorney Aaron M. Teitelbaum.
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-197-RM
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Federal Jury Convicts Greeley Man of Drug and Gun CrimesRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Joel Flores of Greeley, Colorado was convicted by a federal jury of possession with intent to distribute more than 5 grams of methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm and ammunition by a prior felon.
According to the facts presented at trial, Flores was the passenger in a vehicle that crashed while attempting to evade a police officer. After the crash, Flores and the driver fled on foot. Flores was located a short time later hiding under a porch in a nearby trailer park. Officers searched Flores and located a baggie containing methamphetamine, cash, and a 9mm bullet. Law enforcement searched the area and recovered a firearm and more cash in the area near where Flores fled from the vehicle.
“Drug dealing and guns are a potential volatile mix,” said Acting United States Attorney Matt Kirsch. “Our prosecutors are committed to doing their part, together with our law enforcement partners, to keep our communities safe.”
“It is a top priority for ATF to prevent prohibited individuals from possessing firearms,” said ATF Special Agent in Charge David Booth. “We are proud to work with our local and Federal partners to stop such individuals from bringing violence into our communities.”
United States District Court Judge William J. Martinez presided over the jury trial that began on Tuesday, June 1, 2021, and concluded on Friday. Flores will be sentenced on November 17 at 9:30AM.
This case was investigated by the Greeley Police Department and the Bureau of Alcohol Tobacco and Firearms, with assistance from the Drug Enforcement Administration and the Colorado Bureau of Investigation. This case was prosecuted by the Violent Crime and Immigration Section of the U.S. Attorney’s Office for the District of Colorado.
CASE NUMBER: 19-cr-522
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Federal Grand Jury Returns Charges against Two Individuals for Covid-19 FraudRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Russell Foreman and Chandler Simbeck were indicted by a Federal Grand Jury on May 18, 2021, on charges of wire fraud, money laundering and conspiracy to defraud the United States.
According to allegations in the indictment, between March 2020 and October 2020, Foreman electronically submitted loan applications to the Small Business Administration for various businesses knowing that the applications contained materially false and fraudulent information, including the establishment date of the businesses, gross revenues and costs of goods sold, and the applicant’s lack of felony criminal record. Upon approval, the SBA conducted electronic transfer of funds to bank accounts controlled by Foreman. Foreman then moved the money into different bank accounts he controlled. The indictment also alleges that Foreman and Simbeck created an entity, Fusion Group LLC, listing Simbeck as the owner. Together they applied for an Economic Injury Disaster Loan knowing the application contained false information. Upon receipt of the funds into the Fusion Group bank account, Foreman and Simbeck caused the loan proceeds to be moved into the bank accounts of Vegisir Consults LLC and Vegvisir Consults LLC, which they controlled. They then issued a check to Simbeck’s relative for $50,000.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted in March 2020 and was designed to provide emergency financial assistance to Americans dealing with the economic impact of the COVID-19 pandemic. The CARES Act authorized the Small Business Administration (“SBA”) to issue loans to small businesses and non-profit entities experiencing revenue loss due to the pandemic. The Economic Injury Disaster Loan (“EIDL”) program provides loan assistance up to $150,000 to pay permissible expenses such as fixed debts, payroll, and accounts payable for certain COVID-19 impacted businesses in operation prior to February 1, 2020. Additionally, the CARES Act created the Paycheck Protection Program (“PPP”) which authorizes forgivable loans to small businesses to retain workers, maintain payroll, and certain other expenses consistent with PPP rules.
Foreman faces eight counts of wire fraud, one count of conspiracy, and four counts of money laundering. Simbeck faces one count of wire fraud and one count of conspiracy. Each wire fraud count carries a penalty of up to 20 years in prison. Conspiracy carries a penalty of up to five years in prison. Money laundering carries a penalty of up to 10 years in prison.
This case is being investigated by Internal Revenue Service – Criminal Investigation. This case is being prosecuted by Assistant United States Attorney Robert Brown.
The charges contained in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.
CASE NUMBER: 21-cr-00165-RM
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Convicted Felon on Parole Sentenced to more than 13 Years in Federal Prison for Drug Crimes and Gun PossessionRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that James Robert Cude, age 46, of Canon City, Colorado, was sentenced to 163 months in federal prison to be followed by a 5-year term of supervised release for distribution and possession with intent to distribute methamphetamine, as well as possession of a firearm by a previously convicted felon.
According to the plea agreement, on separate occasions during the month of September in 2016, the defendant sold undercover agents 26.6 grams, 26.4 grams, and 94.1 grams of methamphetamine. He also sold undercover agents a Rock River LAR-15 rifle, a stolen Ruger Model P95 9mm handgun, and a Beretta Model PX4 Storm handgun. The defendant was a multi-convicted felon and on parole at the time of the offense conduct in this matter.
“Prosecutions like this play an important role in keeping Colorado safe,” said Acting U.S. Attorney Matt Kirsch. “We thank our law enforcement partners at the ATF and the Aurora Police Department, who removed a dangerous felon from our community.”
ATF Denver Special Agent in Charge David Booth stated, “Not only was the defendant prohibited from possessing firearms, he also brought dangerous drugs into our community. ATF is proud to work with our partners at the U.S. Attorney’s Office to fight violent crime and protect the public.”
United States District Court Judge R. Brooke Jackson sentenced James Robert Cude on June 1, 2021.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation and was assisted by the Aurora Police Department. Assistant United States Attorney Candyce Choi Cline handled the prosecution of the case.
CASE NUMBER: 20-cr-00188-RBJ
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Colorado Tax Preparer Indicted for Preparing False Tax ReturnsRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that a Federal Grand Jury has returned an indictment charging Jimmie Lucero with eight counts of aiding or assisting in the preparation of false and fraudulent federal income tax returns.
According to the allegations in the indictment, between 2016 and 2018, Lucero prepared individual tax returns for clients that Lucero knew included materially false amounts of reportable taxable income. The false tax returns were then submitted to the Internal Revenue Service.
Each count of aiding or assisting in the preparation of false and fraudulent federal income tax returns carries a penalty of up to three years imprisonment and a fine of up to $250,000.
This case is being investigated by Internal Revenue Service – Criminal Investigation. Assistant United States Attorney Jeremy Sibert is handling the prosecution.
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
Case Number: 21-cr-0166-DDD
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Bulgarian National Sentenced to Federal Prison for Illegal Exports to Russian Military and Space ProgramRead the Press Release
DENVER, Co. – A Bulgarian national was sentenced today to 24 months in prison for violating the International Emergency Economic Powers Act (IEEPA) by seeking to export controlled electronic equipment from the United States to the Russian military and space program under false pretenses.
Tsvetan Kanev, 49, of Sofia, Bulgaria, pleaded guilty to violating the International Emergency Economic Powers Act in March 2021. According to court documents, the defendant inquired with a U.S. manufacturer about purchasing radiation hardened integrated circuits that are commonly used in satellites. Because those circuits are controlled American technologies under the Export Administration Regulations, they require a license from the U.S. Department of Commerce to export them to certain countries including Russia. The defendant told the U.S. manufacturer that the circuits were sought by the Bulgarian Academy of Science, but the manufacturer was suspicious of the defendant’s claim and referred the matter to agents from the U.S. Department of Homeland Security, Homeland Security Investigations (HSI) Counter-Proliferation Investigations Center (CPIC) in Colorado Springs.
Acting in an undercover capacity, HSI agents engaged with the defendant and offered to sell the controlled parts that he sought. In extensive communications with the defendant, HSI agents learned that the defendant intended to transship the exports from Bulgaria through Finland to an end user in Russia. Specifically, after shipping the technology to Finland, the defendant planned to reexport them to Russia in a suitcase to avoid documentation of their ultimate destination. The defendant later confirmed that the end users of the controlled American technology were the Russian military and space program.
The defendant engaged the undercover HSI agents in two transactions, and he acknowledged the illegality of each during negotiations. In October 2015, the defendant transferred $234,938.00 to the undercover agent to purchase clock driver and random-access memory programmable multi-chip modules. In December 2015, the defendant transferred $122,323.00 to the undercover agent to purchase a multiple analogue-to-digital converter. The particular technologies he sought are designed for aerospace applications and controlled under U.S. Department of Commerce regulations for national security reasons.
The defendant acknowledged to the HSI agents that exporting these technologies to Russia is illegal under U.S. law. He structured payments to avoid triggering scrutiny from banking authorities. He completed fraudulent end user statements to deceive U.S. Customs authorities and he encouraged the HSI agents to create additional fraudulent paperwork. The defendant paid the undercover HSI agents extra fees of $25,172.00 and $31,550.42 to compensate them for taking risks and violating U.S. laws. All monies transferred from the defendant to the undercover HSI agents were seized and forfeited to the United States.
The defendant was arrested in Germany in January 2020 and then extradited to Colorado.
“Because a U.S. manufacturer alerted the government to a suspicious foreign inquiry, transfers of American technology to the Russian military and space program were thwarted and this defendant was brought to justice,” said Acting U.S. Attorney Matt Kirsch for the District of Colorado. “This kind of public-private partnership is key to protecting American technology and national security.”
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Julia Martinez, Wayne Paugh and David Tonini handled the prosecution of the case, with valuable assistance from Trial Attorney Matthew McKenzie of the National Security Division’s Counterintelligence and Export Control Section at the U.S. Department of Justice.
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Department of Treasury Designates Sinaloa-based Mexican Narcotics Trafficker Under the Foreign Narcotics Kingpin ActRead the Press Release
DENVER -- The U.S. Attorney’s Office for the District of Colorado today announced that the Department of Treasury has designated Jesus Gonzalez Penuelas and the Gonzalez Penuelas Drug Trafficking Organization (DTO) as Significant Foreign Narcotics Traffickers. The designation is pursuant to the Foreign Narcotics Kingpin Designation Act and serves to deter the drug trafficking organization’s use of the U.S. financial system to launder illicit proceeds derived from narcotics sales. In 2016, the U.S. Attorney’s Office first indicted Jesus Gonzalez Penuelas, charging him with trafficking heroin and cocaine to the United States. The U.S. Attorney’s Office obtained a superseding indictment in 2018, which included charges against Ignacio Gonzalez Penuelas, a key lieutenant in the drug trafficking organization and the brother of Jesus Gonzalez-Penuelas. In 2019, the U.S. Attorney’s Office also charged Adelmo Nunez Molina with various drug trafficking offenses. Nunez Molina is a raw opium gum source of supply for Jesus Gonzalez Penuelas. All the defendants are fugitives.
“Drug traffickers are often motivated by the potential profit from the illegal drug trade,” said Acting U.S. Attorney Matt Kirsch. “The sanctions associated with today’s Significant Foreign Narcotics Trafficker designations are a significant step towards preventing this DTO from profiting from its illegal drug trafficking.”
“These sanctions targeting Gonzalez Penuelas and his associates will go a long way to disrupting the heroin supply flowing across the Southwest Border,” said Deanne Reuter, Special Agent in Charge of DEA Denver Field Division. “DEA applauds the work of our partners in the United States Attorney’s Office and the Treasury Department in making it harder for Gonzalez Penuelas to commit these crimes that affect our communities.”
According to the announcement from the Department of Treasury, the Gonzalez Penuelas DTO operates primarily in Sinaloa and Sonora, Mexico, various ports of entry in the United States, as well as numerous United States-based distribution cells in Colorado, California, Texas, Washington, Utah, and Nevada. As a result of today’s designation, interests in property of the designated persons that are in the United States or in the possession or control of U.S. persons must be blocked and reported to the Treasury Department’s Office of Foreign Asset Control (OFAC). OFAC’s regulations generally prohibit all transactions by U.S. persons or persons within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons.
This matter was investigated by the Strike Force associated with the Denver Organized Crime Drug Enforcement Task Force (OCDETF). Assistant United States Attorneys Stephanie Podolak and Zackary Phillips are prosecuting this case.
This prosecution is part of an 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 Nos. 16-cr-217-CMA and 19-cr-89-RBJ
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The U.S. Attorney’s Office for the District of Colorado Recognizes Police WeekRead the Press Release
DENVER — In honor of National Police Week, Attorney General Merrick B. Garland and Acting U.S. Attorney Matt Kirsch recognize the service and sacrifice of federal, state, local, and Tribal law enforcement. This year, the week is observed Sunday, May 9 through Saturday, May 15, 2021.
“This week is a time to honor our law enforcement officers who have made the ultimate sacrifice in service to our nation,” said Attorney General Garland. “I am constantly inspired by the extraordinary courage and dedication with which members of law enforcement act each day, putting their lives on the line to make our communities safer. To members of law enforcement and your families: we know that not a single day, nor a single week, is enough to recognize your service and sacrifice. On behalf of the entire Department of Justice, you have our unwavering support and eternal gratitude.”
“Colorado law enforcement officers routinely put themselves in harm’s way to protect our community,” said Acting U.S. Attorney Matt Kirsch. “As we’ve recently seen through the heroic actions of Boulder Police Department Officer Eric Talley, law enforcement officers sometimes make the ultimate sacrifice to keep us safe. Police Week is a time for us to recognize and honor their service and sacrifice.”
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty, and commitment to keeping our communities safe. This year the COVID-19 pandemic has highlighted law enforcement officers’ courage and unwavering devotion to the communities that they have sworn to serve.
During the Roll Call of Heroes, a ceremony coordinated by the Fraternal Order of Police (FOP), more than 300 officers will be honored. Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), of the law enforcement officers who died nationwide in the line of duty in 2020, nearly 60 percent succumbed to COVID-19.
Additionally, according to statistics reported by the Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 46 law enforcement officers died as a result of felonious acts and 47 died in accidents in 2020. LEOKA statistics can be found on FBI’s Crime Data Explorer website.
The names of the 394 fallen officers who have been added in 2020 to the wall at the National Law Enforcement Officer Memorial will be read on Thursday, May 13, 2021, during a Virtual Candlelight Vigil, which will be livestreamed to the public at 8:00 pm EDT. The Police Week in-person public events, originally scheduled for May, have been rescheduled due to ongoing COVID-19 concerns to October 13-17, 2021. An in-person Candlelight Vigil event is scheduled for October 14, 2021.
Those who wish to view the Virtual Candlelight Vigil on May 13, 2021, can watch on the NLEOMF YouTube channel found at https://www.youtube.com/user/TheNLEOMF. The FOP’s Roll Call of Heroes can be viewed at www.fop.net. To view the schedule of virtual Police Week events in May, please view NLEOMF’s Police Week Flyer.
To learn more about National Police Week in-person events scheduled for October, please visit www.policeweek.org.
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Fort Collins Bookkeeper Pleads Guilty to Mail Fraud and Money LaunderingRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announced that Rose Horne, age 66, formerly of Fort Collins, Colorado pleaded guilty today to mail fraud and money laundering. Horne was indicted on March 11, 2014, and was a fugitive until her arrest in California in June 2020. She is now scheduled to be sentenced in federal court in Denver before U.S. District Court Judge Robert E. Blackburn on August 19, 2021.
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 devised a scheme to steal 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 used unauthorized checks drawn on her employer’s general business accounts to pay her personal balances as well as other personal bills. Horne forged the owner’s signature on some checks or presented checks to the authorized signatories under the guise the checks were to pay business expenses. 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.
Mail fraud carries a sentence of up to 20 years in prison, three years of supervised release, a fine of not more than $250,000 or twice the gain or loss from the offense, and restitution. Engaging in a monetary transaction with proceeds derived from criminal activity carries a sentence of up to 10 years in prison, three years of supervised release, and a fine of not more than $250,000.
This case was investigated by the Internal Revenue Service – Criminal Investigation. This case is being prosecuted by Assistant U.S. Attorney Pegeen D. Rhyne.
Case No. 14-cr-00093-REB
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Gypsum Man Pleads Guilty to Filing a False Tax ReturnRead the Press Release
GRAND JUNCTION — The U.S. Attorney’s Office for the District of Colorado announces that Trenton Switzer, age 40, of Gypsum, CO pleaded guilty for willfully making and subscribing a false tax return.
According to the filed information and the stipulated facts in the plea agreement, Switzer created a nonprofit corporation in Colorado called the Church of Divine Sovereignty. During the 24 hours that this corporation legally existed, Switzer obtained an Employer Identification Number and opened a bank account in its name. Later, Switzer deposited $250,000 in the account and informed his return preparer that these deposits were charitable contributions. After determining that Switzer’s “Church of Divine Sovereignty” did not qualify as a charitable organization, the preparer advised Switzer that the payments were not deductible. Despite these warnings, Switzer nevertheless signed and personally filed his 2015 U.S. Federal Tax Return, falsely claiming a $250,000 charitable contribution deduction.
Fraud and false statements in a tax return carry a sentence of up to three years in prison, one year of supervised release, and a fine of up to $250,000. As part of the plea agreement, Switzer has agreed to pay restitution of $241,964.71, plus penalties and interest to the IRS.
Switzer pleaded guilty before U.S. Magistrate Judge Gordon P. Gallagher on April 26, 2021, in Grand Junction. He is scheduled to be sentenced on July 7, 2021, before U.S. District Court Judge Christine M. Arguello.
This matter was investigated by IRS-CI and is being prosecuted by Assistant United States Attorney Jeremy Chaffin.
Case No. 21-cr-00093-CMA-GPG
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Aurora Man Sentenced to 10.5 Years in Federal Prison for Drug TraffickingRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Eber Uriel Perez-Ramirez, age 29, of Aurora, CO, was sentenced to 10.5 years in federal prison following his prior guilty plea to conspiracy to distribute and possess with intent to distribute controlled substances, in violation of 21 U.S.C. § 846.
According to the plea agreement and court documents, the defendant acted as a lieutenant in a drug trafficking organization from October of 2019 until February 12, 2020, when he was arrested by agents working with the Federal Bureau of Investigation assigned to the Denver OCDETF Strike Force. The drug trafficking organization brought to Colorado large quantities of illegal drugs from Mexico, including methamphetamine, heroin, cocaine, and fentanyl. The organization employed a network of interstate load runners, local couriers, multi-pound drug customers, and lieutenants, including the defendant, to coordinate its activities.
On three occasions between October 15, 2019 and December 5, 2019, the defendant delivered pound quantities of methamphetamine to a confidential informant working with the FBI. The defendant also monitored the interstate transportation of a load run of narcotics between October 21 through October 23, 2019. Specifically, he delivered a real-time report to the organization concerning Utah law enforcement actions regarding the load vehicle. Ultimately, the load — 53 pounds of methamphetamine — was transferred to another vehicle, which was stopped by the Colorado State Patrol in Colorado.
Additionally, on January 22, 2020, the defendant sought to pick up a package containing more than five kilograms of methamphetamine that was being held at a leasing office in Denver, Colorado. The FBI seized the package before the defendant was able to retrieve it.
“The U.S. Attorney’s Office remains committed to making communities safer by prosecuting members of drug trafficking organizations,” said Acting U.S. Attorney Matt Kirsch. “Together with our law enforcement partners, we are working to disrupt these organizations by making drug traffickers face significant jail time.”
“Friday’s sentencing of Perez-Ramirez is a direct result of the dedication and collaboration by FBI Denver and our partners to combat drug trafficking organizations who distribute methamphetamine, cocaine, heroin and fentanyl in our communities. The Organized Crime Drug Enforcement Task Force (OCDETF) Strike Force will aggressively investigate individuals and groups who further the scourge of drugs in our community,” said FBI Denver Special Agent in Charge Michael Schneider. “FBI Denver would like to extend our appreciation to the Douglas County Sheriff’s Office, DEA, HSI, ICE ERO, IRS and the U.S. Attorney’s Office for sharing their resources and expertise to fight dangerous drug trafficking organizations and bringing them to justice.”
“HSI working with the OCDETF task force helped disrupt a transnational drug trafficking organization with direct ties to a Mexican cartel that sought to bring illegal drugs into Colorado,” said Steven Cagen, Special Agent in Charge of Homeland Security Investigations Denver. “Strong partnerships among federal, state, and local law enforcement agencies are critical to identifying and dismantling criminal enterprises that profit from illicit drugs. We’re grateful to the United States Attorney’s Office for ensuring Perez-Ramirez faced justice.”
“This sentencing is another step toward a safer community. Not only is Perez-Ramirez going to prison for his crimes but the government seized a significant amount of narcotics and kept them off the streets of Colorado,” said IRS-CI Special Agent in Charge Andy Tsui. “IRS Criminal Investigation will continue to work with our law enforcement partners to stop the flow of illegal narcotics and bring these drug traffickers to justice.”
United States District Court Judge Raymond Moore sentenced Perez-Ramirez on April 23, 2021.
Agents and deputies assigned to the 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 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 Number: 20-cr-28-RM
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Federal Grand Jury Indicts Two Pueblo Men for Conspiracy to Commit MurderRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announced that a federal Grand Jury has returned a two-count indictment against Emilio Hall, age 26, and Christopher Ortiz, age 41, charging them with conspiracy to commit murder, in violation of the violent crimes in aid of racketeering statute (“VICAR”), 18 U.S.C. § 1959(a)(5). The indictment also charges Hall with possession of a firearm by a prohibited person, in violation of 18 U.S.C. § 922(g)(1). Hall is currently in custody on state charges and Ortiz is at large.
According to the indictment, Hall and Ortiz were members of the Ace street gang in Pueblo, Colorado. On June 23, 2019, for the purpose of maintaining and increasing their position in the Ace street gang, Hall, Ortiz, and others known and unknown to the Grand Jury, agreed to murder Floyd Robinson. Specifically, on June 23, 2019, Hall and Ortiz met in the vicinity of Bessemer Park, in Pueblo. Hall possessed a 9mm handgun and shot and killed Robinson.
The indictment also alleges that the Ace street gang is a criminal enterprise, as defined in 18 U.S.C. § 1959(b)(2), and that the gang engaged in racketeering activity involving murder and the manufacture, importation, receiving, concealment, buying, selling, and other dealing in controlled substances.
The charges in the indictment are allegations and the defendants are presumed innocent until proven guilty.
The investigation in this case is being conducted by the Pueblo Police Department, the Federal Bureau of Investigation, and 10th Judicial District Attorney’s Office, with assistance from the Pueblo County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Colorado State Patrol. The prosecution is being handled by Assistant United States Attorney Jason St. Julien and the Violent Crime and Immigration Section of the U.S. Attorney’s Office, with assistance from the Department of Justice’s Organized Crime and Gang Section.
CASE NUMBER: 21-cr-00141
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Mexico Extradites Accused Money Launderer and Methamphetamine Dealer to Colorado for ProsecutionRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announced that Raul Rodriguez-Romero, 32, formerly of Colorado Springs, Colorado, was extradited from Mexico to Denver, Colorado, so he can face money laundering and drug charges. The defendant made his initial appearance in federal court in Denver yesterday before U.S. Magistrate Judge Scott T. Varholak.
The indictment charges the defendant with distributing more than 500 grams of methamphetamine in November 2015. It also charges the defendant with eleven counts of money laundering, alleging that between May and October 2015, the defendant took money that was represented to be the proceeds of methamphetamine trafficking and then used checks drawn on bank accounts to conceal and disguise the fact that it was drug money. If convicted of distributing methamphetamine, the defendant faces not less than 10 years in prison, as well as up to a $10,000,000 fine. If convicted of money laundering, the defendant faces not more than 20 years in prison and a fine of up to $500,000 on each count.
The charges in the indictment are allegations and the defendant is presumed innocent until proven guilty.
The investigation in this case was conducted by the United States Drug Enforcement Administration. The prosecution is being handled by Assistant U.S. Attorneys Bryan Fields and Candyce Cline, District of Colorado, Denver, with substantial assistance from the Department of Justice’s Office of International Affairs in Washington, D.C.
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: 16-cr-266
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Grand Junction Man Convicted of Conspiring to Distribute Fentanyl Resulting in DeathRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Bruce Holder, age 55, of Grand Junction, was convicted of Conspiracy to Distribute Fentanyl and Counterfeit Substances, Distribution of Fentanyl Resulting in Death, Distribution of Fentanyl, and Distribution of a Counterfeit Substance after a 11-day jury trial in Denver, Colorado.
Facts presented at trial established that Holder worked in conjunction with multiple co-conspirators, including his wife, children, and other members of his family, to distribute pills which appeared to be 30mg Oxycodone pills but in fact were counterfeit and spiked with fentanyl. Between 2017 and 2018, Holder imported tens of thousands of these pills from Mexico into Western Colorado where he and his co-conspirators distributed them for substantial profit.
In December 2017, a young man in Carbondale died after using one of the pills. Evidence presented at trial established that this man would not have died but for the fentanyl present in the counterfeit pills distributed by Holder. Despite knowing of this death, and hearing of other concerns, Holder and his co-conspirators continued to import and distribute these counterfeit pills. This continued even after Holder’s arrest in August 2018. Evidence at trial also showed that, following his arrest, Holder discussed with co-conspirators plans to destroy evidence and the possible murder of a cooperating witness.
“Most people know that fentanyl is incredibly dangerous. Many people don’t know that it can be disguised to look like other, much less powerful opioids,” said Acting U.S. Attorney Matt Kirsch. “Bruce Holder profited from that ignorance, while one of his customers paid for it with his life. Holder now faces an appropriately long prison sentence for his callous drug distribution.”
“DEA is very happy with this verdict, Holder is someone who has shown a disregard for human life that you don’t often come across,” said Deanne Reuter Special Agent in Charge of DEA Denver Field Division. “Getting to a guilty verdict is something that could only be done with the hard work of our agents and task force officers who investigated this case and the prosecutors who presented it.”
United States District Court Judge Christine M. Arguello presided over the trial and will impose sentence at a later date.
The Drug Enforcement Administration conducted the investigation, with the assistance of the FBI, ATF, HSI, USMS, Western Colorado Drug Task Force, Two Rivers Drug Enforcement Team (“TRIDENT”), Carbondale PD, Fruita PD, Grand Junction PD, and Mesa County SO. Assistant United States Attorney Jeremy Chaffin and Special Assistant United States Attorney Jaime Pena 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: 1:18-cr-00381-CMA-GPG
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Federal Jury Convicts Alamosa Man of Possession of Methamphetamine with Intent to DistributeRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that after a four-day jury trial, Felipe Nevarez, age 40, of Alamosa, Colorado, was convicted of Possession with Intent to Distribute Methamphetamine.
Facts presented at trial established that on April 3, 2019, deputies with the Alamosa County Sherriff’s Department encountered Nevarez driving a black BMW. At the time, Nevarez had several state warrants for his arrest. 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 searching, law enforcement found Nevarez hiding in a field within arm’s reach of a large bag of methamphetamine. Nevarez also had more than $16,000 in cash.
“Our office is committed to prosecuting drug distribution crimes anywhere in Colorado,” said Acting United States Attorney Matt Kirsch. “Together with our law enforcement partners in Alamosa, we have secured an important conviction in the fight against methamphetamine, an addictive and dangerous drug.”
“The conviction of Nevarez for his interstate narcotics trafficking activities is the result of cooperation among law enforcement to keep dangerous drugs like methamphetamine out of our communities.” said Steven Cagen, Special Agent in Charge, HSI. “HSI will continue to prioritize the investigation of drug traffickers who distribute illicit narcotics in Colorado and bring criminal activity to our rural neighbors.”
United States District Court Judge Robert Blackburn presided over the trial and will impose a sentence at a later date.
Homeland Security Investigations, the Alamosa County Sherriff’s Department, the Alamosa Police Department, and U.S. Immigration and Customs Enforcement conducted the investigation. Assistant United States Attorney Jeffrey Graves handled the prosecution.
Case number: 19-cr-00271-REB-JMC
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United States Reaches Proposed Settlement with Ranch Owner to Restore Creek and Wetlands and Pay Damages for TrespassRead the Press Release
DENVER – The U.S. Department of Justice, U.S. Environmental Protection Agency (EPA) and Bureau of Land Management (BLM) announced that they have reached a proposed settlement with John Raftopoulos, Diamond Peak Cattle Company LLC and Rancho Greco Limited LLC (collectively, the defendants) to resolve violations of the Clean Water Act (CWA) and the Federal Land Policy and Management Act (FLPMA) involving unauthorized discharges of dredged or fill material into waters of the United States and trespass on federal public lands in northwest Moffat County, Colorado.
On October 22, 2020, the United States filed suit in federal district court alleging that beginning in approximately 2012, and as recently as approximately 2015, the defendants discharged dredged or fill material into Vermillion Creek and its adjacent wetlands in order to route the creek into a new channel, facilitate agricultural activities and construct a bridge. These alleged unauthorized activities occurred on private land owned by the defendants and on public land managed by BLM, constituting a trespass in violation of the FLPMA. Vermillion Creek and its adjacent wetlands are waters of the United States and may not be filled without a CWA Section 404 permit from the U.S. Army Corps of Engineers (Corps), which was not obtained. EPA develops and interprets the policy, guidance and environmental criteria the Corps uses in evaluating permit applications.
“This proposed settlement will result in restoration of important waters in the arid west, deter future similar violations of the Clean Water Act and help ensure accountability and a level playing field,” said Acting Assistant Attorney General Jean E. Williams for the Justice Department’s Environment and Natural Resources Division.
“The U.S. Attorney’s Office and Department of Justice will take all necessary steps to protect our precious waters, wetlands, and wildlife,” said Acting United States Attorney Matt Kirsch for the District of Colorado. “Western rivers are a treasure and require protection from all threats, including damage to their vital creeks, streams, and tributaries.”
“Unauthorized dredging and filling of waters of the U.S. will not be tolerated,” said Acting Assistant Administrator Larry Starfield for the EPA’s Office of Enforcement and Compliance Assurance. “With this action, EPA is ensuring the proper restoration of vital creek and wetland resources.”
“This proposed settlement will allow the public lands impacted to begin the process of recovery for the future use and benefit of all the public,” said BLM Colorado State Director Jamie Connell.
The United States’ lawsuit further contended that the defendants’ alleged trespass also included unauthorized irrigation, removal of minerals and destruction of numerous cottonwood trees on federal public land. The fill and related activities on BLM lands were conducted without BLM authorization. The defendants’ trespass actions not only interfered with the public’s right to current enjoyment of federal public lands, but also jeopardized the future health and maintenance of these lands for use by all.
Under a proposed settlement filed in the U.S. District Court for the District of Colorado to resolve the lawsuit, the defendants agreed to: pay a $265,000 civil penalty for CWA violations; pay $78,194 in damages and up to $20,000 in future oversight costs for trespass on public lands managed by BLM; remove the unauthorized bridge constructed on public lands; restore approximately 1.5 miles of Vermillion Creek to its location prior to defendants’ unauthorized construction activities; restore the 8.47 acres of wetlands impacted adjacent to the creek; and plant dozens of cottonwood trees to replace those previously removed from federal lands. Additionally, under the terms of the proposed settlement, the defendants will place a deed restriction on their property to protect the restored creek and wetlands in perpetuity.
This proposed settlement will repair important environmental resources damaged by the defendants. The portions of Vermillion Creek and its adjacent wetlands impacted by the defendants’ unauthorized activities provided aquatic and wildlife habitat, runoff conveyance and groundwater recharge. The straightening of Vermillion Creek contributed to erosion of the bed and banks of the stream and detrimental sediment deposition downstream of the channelization. Browns Park National Wildlife Refuge, which provides important habitat for the endangered Colorado pikeminnow, is located at the confluence of Vermillion Creek and the Green River, approximately one mile downstream from the impacted area. Similarly, the destruction of numerous cottonwood trees located adjacent to the creek eliminated nesting, perching, and roosting habitat for raptor species, including bald eagle, golden eagle and red-tailed hawk. Cottonwood galleries with riparian vegetation also provide nesting habitat for a variety of migratory birds.
Case number: 20-cv-03166-SKC
The proposed settlement, which is subject to a 30-day public comment period and final court approval, is available for review at: https://www.justice.gov/enrd/consent-decrees
For more information on the Clean Water Act, visit EPA's compliance web page: http://www.epa.gov/compliance. Help EPA protect our nation's land, air, and water by reporting violations: http://www.epa.gov/tips/
For more information on Section 404 of the Clean Water Act please visit: https://www.epa.gov/cwa-404/permit-program-under-cwa-section-404.
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Mexican National Sentenced to 12 Years in Federal Prison for Armed Robberies of Food Service BusinessesRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announced that Ramon Uziel Hernandez-Perez, 33, was sentenced to 12 years (144 months) in federal prison for his role in the armed robberies of two Denver food service businesses, including a food truck.
According to the facts in the plea agreement and court documents, Hernandez-Perez robbed a food truck operating in the parking lot of the 707 Flea Market on N. Federal Boulevard on September 26, 2019. At around 7:00 p.m., Hernandez-Perez parked his Ford Mustang in the parking lot. He entered the food truck, where a female employee was working inside. Hernandez-Perez pointed a black semi-automatic handgun at the woman and demanded money. In fear for her life, the victim retrieved cash from the register and handed it to Hernandez-Perez. The defendant ordered the victim to the floor, pressed the muzzle of the gun to her head, and threatened that if she alerted the police, he would kill her. Hernandez-Perez then fled in his Mustang.
On September 28, 2019, Hernandez-Perez and his co-defendant, Juan Carlos Aguirre-Rodriguez, robbed a food service business operated by two women in the parking lot of 5575 North Logan Street in Adams County. The defendants arrived in the parking lot early in the morning in Hernandez-Perez’s Mustang. They waited until two female employees arrived and began setting up their business. With guns drawn, the defendants approached the women and demanded money. One of the victims handed over a bag containing the business’s cash. The defendants then got back in the Mustang and fled.
Two days later, Hernandez-Perez’s Mustang was found and searched. Law enforcement found three firearms, including one fitting the description of a weapon used in the robberies. On October 3, 2019, Hernandez-Perez was arrested in Adams County, Colorado. A fully-loaded .40 caliber Smith and Wesson handgun was discovered in his waistband. Hernandez-Perez is a native and citizen of Mexico without lawful status in the United States and is therefore prohibited from possessing firearms.
“Taking dangerous criminals off the street is a core part of the mission of this office,” said Acting United States Attorney Matthew T. Kirsch. “Building off the great work of our law enforcement partners, the prosecutors in this office ensured that justice was done and made our community a safer place as a result.”
“The FBI Rocky Mountain Safe Streets Task Force is committed to combatting violent crime in our community,” said FBI Denver Special Agent in Charge Michael Schneider. “Today’s sentence completes the judicial process for Mr. Hernandez-Perez, and we hope his victims feel safer knowing justice has been served. We thank our partners at the U.S. Attorney’s Office, Adams County Sheriff’s Office, Denver Police Department, Dacono Police Department, and Commerce City Police Department.”
On December 2, 2020, Hernandez-Perez pleaded guilty to two counts of Hobbs Act Robbery, one count of brandishing a firearm in furtherance of a crime of violence, and one count of possessing a firearm by an alien unlawfully in the United States. United States District Court Judge Daniel D. Domenico sentenced Hernandez-Perez on March 16, 2021, in federal court in Denver. Co-defendant, Juan Carlos Aguirre-Rodriguez, previously pleaded guilty to two counts of Hobbs Act Robbery and is currently serving a sentence of four-and-a-half years in federal prison.
The investigation in this case was conducted by the Federal Bureau of Investigation Rocky Mountain Safe Streets Task Force, the U.S. Immigration and Customs Enforcement (ICE), the Adams County Sheriff’s Office, the Denver Police Department, the Dacono Police Department, and the Commerce City Police Department. Special Assistant U.S. Attorney Dorothy DiPascali and Assistant U.S. Attorney Emily Treaster handled the prosecution.
Case number: 19-cr-00524-DDD
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Seven Additional Defendants Charged in Long-Running Drug and Money Laundering InvestigationRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announced the arrest of seven additional defendants in an on-going investigation involving the distribution of methamphetamine and heroin on the Western Slope. The following defendants were arrested and made their initial appearance in federal court in Denver and Grand Junction this week:
- Daniel Gastelo-Ochoa, 32 of Denver
- Carlos Quijano-Ruiz, 52 of Montrose
- Rafael Jaramillo-Hernandez, 32 of Montrose
- Catyria Gisela Lopez-Gomez, 41 of Fort Collins
- Margarita Jaquelin Cruz-Gomez, 35 of Montrose
- Dalilah Suarez-Lopez, 23 of Fort Collins, and
- Carlos Aurelio Beltran-Gonzalez, 32 of Montrose
These indiiduals were charged in a superseding indictment, which brought allegations against these defendants in addition to thirteen others previously charged in December of 2019.
According to the superseding indictment, from January 1, 2019, through December 18, 2019, Daniel Gastelo-Ochoa, Carlos Quijano-Ruiz, Rafael Jaramillo-Hernandez, Catyria Gisela Lopez-Gomez, as well as the thirteen previously charged defendants, conspired with each other to distribute methamphetamine and heroin. If convicted, each defendant faces a minimum of 10 years, and up to life in federal prison.
In addition to the drug conspiracy charge, Carlos Quijano-Ruiz, Rafael Jaramillo-Hernandez, Catyria Gisela Lopez-Gomez, as well as Margarita Jaquelin Cruz-Gomez, Dalilah Suarez-Lopez, Carlos Aurelio Beltran-Gonzalez, and other persons, conspired with each other to conduct and attempt to conduct financial transactions involving the proceeds of illegal drug distribution. Further, these financial transactions were designed in whole or in part to conceal and disguise the nature, location, source, ownership, and control of the proceeds. If convicted, each defendant faces not more than 20 years in federal prison.
The allegations in the superseding indictment are allegations and the defendants are presumed innocent until proven guilty.
This investigation was conducted by the Denver Division of the DEA, the Montrose County Sheriff’s Office, and the Montrose Police Department, as well as representatives from the 7th Judicial District Attorney’s Office. Assistant United States Attorney Zachary Phillips is handling this prosecution.
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: 19-cr-00535 CMA-GPG
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Cañon City Man Charged for Interfering with Flight CrewRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announced that Landon Perry Grier, 24, of Cañon City has been charged with interfering with a flight crew in violation of Title 49, United States Code, Section 46504. Grier made his initial appearance in federal court in Denver yesterday, where he was advised of the charge against him and ordered released on conditions of pre-trial supervision.
According to the facts contained in the complaint, on March 9, 2021, Grier was a passenger onboard Alaska Airlines flight 1474 traveling from Seattle to Denver. During the flight, Grier was asked eight to ten times to put on a face mask, as required by airline policy. Grier initially ignored the flight attendant, but then struck her arm. Later, passengers notified a different flight attendant that Grier was urinating in his seat. A flight attendant notified the captain. When the captain was notified, he was preparing to land after declaring an emergency for an unrelated maintenance issue.
Interfering with a flight crew carries a potential penalty of up to 20 years in prison and/or a fine of up to $250,000.
The charge in the criminal complaint is an allegation and the defendant is presumed innocent until proven guilty.
The investigation was conducted by the Federal Bureau of Investigation with substantial assistance from the Denver Police Department. Assistant United States Attorneys Brad Giles and David Tonini are handling the prosecution.
Case number: 21-mj-00038-MEH-1
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Colorado Springs Man Charged with Production of Child PornographyRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announced that Brandon Gandy of Colorado Springs has been charged with the production of child pornography. Gandy was ordered detained today pending trial by United States Magistrate Judge Michael Hegarty. Gandy was arrested and charged by criminal complaint on March 4, 2021.
According to the facts contained in the affidavit supporting the allegations in the criminal complaint, a search warrant was executed at Gandy’s home based on CyberTipline Reports sent by an Internet Service Provider to the National Center for Missing and Exploited Children (NCMEC). The reports indicated that an individual using particular IP addresses uploaded suspected child pornography. It was determined that certain IP addresses resolved to an account associated with Gandy’s home. Gandy was arrested after a search of his cell phone identified child pornography. Specifically, twenty images were located on his cell phone of a minor who has been identified by law enforcement. Several of the images pictured sexually explicit conduct. The investigators observed a distinctive ring on the adult male hand pictured in one of the sexually explicit images. Gandy was wearing the distinctive ring when the search warrant was executed at his home.
The charges in the complaint are allegations and the defendant is presumed innocent until proven guilty.
Homeland Security Investigations (HSI) and Colorado’s Internet Crimes Against Children (ICAC) Task Force are investigating this matter. The Colorado Springs Police Department is the lead agency for this task force. Assistant United States Attorney Alecia L. Riewerts is handling the prosecution.
Case number: 21-mj-00035
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Northern Colorado Man Pleads Guilty for Possessing Pipe BombsRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announced that Bradley Bunn, 55, of Loveland, Colorado, pleaded guilty to one count of making destructive devices and four counts of possessing destructive devices in violation of Title 26, United States Code, Section 5861. Each count carries a maximum potential penalty of 10 years imprisonment, followed by three years of supervised release. Bunn was remanded to the custody of the U.S. Marshals following today’s hearing before U.S. District Judge Christine Arguello. A sentencing hearing is scheduled for June 3, 2021.
According to the facts contained in the plea agreement, on May 1, 2020, the FBI executed two search warrants at Bunn’s home. They found four explosive devices. Each device consisted of galvanized steel pipe with end caps and a fuse. The devices measured 2 inches in diameter and between 13.5 and 9.25 inches in length. FBI Bomb Technicians concluded that each of the devices was filled with explosive materials. Agents recovered additional bomb-making components in the house, including more steel pipes, end caps, primers, fuses, and bottles of smokeless powder. The defendant had not registered the devices in the National Firearms Registration and Transfer Record and he had not complied with any regulations concerning the making of destructive devices.
“The United States Attorney’s Office is committed to making Colorado safer,” said Acting United States Attorney Matthew T. Kirsch. “Thanks to the hard work of our law enforcement partners and prosecutors, we were able to find and remove these dangerous devices before the defendant could cause serious harm.”
“The operation to remove and render safe the explosives discovered in Mr. Bunn's home averted a potentially hazardous situation from endangering innocent people in our community. According to facts in the public record, Mr. Bunn knowingly and willingly assembled home-made explosives with the intent to use them against law enforcement,” said FBI Denver Special Agent in Charge Michael Schneider. “The FBI and our partners stand ready to identify, disrupt, and dismantle any plans to inflict harm on our communities and hold individuals accountable for their criminal actions.”
The investigation was conducted by the Federal Bureau of Investigation, the ATF, the Northern Colorado Bomb Squad, and the Larimer County Sheriff’s Office. Assistant United States Attorney David Tonini is handling the prosecution.
Case number: 20-cr-00158-CMA
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Southern Colorado Man Sentenced to More Than 19 Years in Federal Prison for Plotting to Blow up SynagogueRead the Press Release
DENVER – A Colorado man was sentenced today in federal court in Denver for plotting to blow up a synagogue.
Richard Holzer, 28, was sentenced to more than 19 years (235 months) in federal prison, followed by 15 years of supervised release. Holzer previously pleaded guilty to federal hate crime and explosives charges for plotting to blow up the Temple Emanuel Synagogue in Pueblo, Colorado, conduct that constituted acts of domestic terrorism. Holzer told undercover FBI agents that he wanted the bombing to send a message to Jewish people that they must leave his town, “otherwise people will die.”
Holzer pleaded guilty to intentionally attempting to obstruct persons in the enjoyment of their free exercise of religious beliefs, through force and the attempted use of explosives and fire, in violation of Title 18, U.S. Code, Section 247, and to attempting to maliciously damage and destroy, by means of fire and explosives, a building used in interstate commerce, in violation of Title 18 U.S. Code, Section 844(i).
“The Department has combatted hate-based violent extremism and domestic terrorism since our inception,” said Acting Deputy Attorney General John Carlin. “Today there is no higher priority. This sentencing serves as a reminder that these crimes will not be tolerated, and we will hold the individuals who engage in them fully accountable. From our Civil Rights Division, our National Security Division, and the FBI, to the Office for Victims of Crime and our Community Relations Service, the Department of Justice will use every tool at its disposal to identify, disrupt, deter, and prevent hate-based, extremist threats to members of the American public.”
“Today’s sentence is another step forward in our on-going fight against extremism,” said U.S. Attorney Jason Dunn. “About two-and-a-half years ago, my first day as U.S. Attorney took me to a vigil for victims from the Pittsburgh Tree of Life Synagogue attack. Today, my last day in the office, we have sentenced the extremist responsible for the attempted bombing of the Temple Emanuel Synagogue in Pueblo. We must remain ever vigilant in this battle and I am confident the Department will continue to lead this fight.”
“Protecting our communities from terrorism, both domestic and international, is a top priority for the FBI. Mr. Holzer targeted a place of worship for violence and destruction to drive people of the Jewish faith from our community. Today’s sentence demonstrates the commitment by the FBI and our law enforcement partners to ensure that if a crime is motivated by bias against a religion or any other federally protected status, it will be aggressively investigated, and the perpetrators held responsible for their actions," said FBI Denver Special Agent in Charge Michael Schneider. "We are grateful for the collaborative efforts of the FBI’s Southern Colorado Joint Terrorism Task Force, Pueblo County Sheriff’s Office, Pueblo Police Department, and the U.S. Attorney’s Office to hold Mr. Holzer accountable for plotting violent acts of hate.”
Holzer, who self-identifies as a Neo-Nazi and white supremacist, admitted that he planned to destroy Temple Emanuel, a synagogue in Pueblo, Colorado, that is listed on the National Register of Historic Places. The planned bombing, which Holzer declared was “a move for our race,” was born from years of Holzer consuming and promoting white supremacist ideology. Holzer regularly used social media to glorify violence and advocate for white supremacy. After an undercover FBI employee contacted Holzer, he sent pictures of himself holding automatic weapons and said he was “getting ready for RAHOWA,” shorthand for a racial holy war.
Holzer talked to associates for months about attacking Temple Emanuel, and he visited the synagogue to observe Jewish congregants. During a meeting with undercover agents to discuss his plans, Holzer repeatedly expressed his hatred of Jewish people and suggested using explosive devices to destroy the Synagogue. Holzer told the undercover agents that he wanted to “get that place off the map.” Holzer further admitted that he coordinated with the undercover agents to obtain explosives, including pipe bombs.
On the evening of Nov. 1, 2019, Holzer met with undercover agents, who provided Holzer with inert explosive devices that had been fabricated by the FBI, including two pipe bombs and 14 sticks of dynamite. Holzer removed a copy of “Mein Kampf” from his bag and told the undercover agents that the explosives looked “absolutely gorgeous.” Holzer admitted that he planned to detonate the explosives several hours later, in the early hours of Saturday morning, Nov. 2, 2019. After his arrest, Holzer explained that “[t]he event planned for tonight would define me as a person who would die for his people.”
The actions Holzer admitted in the plea agreement meet the federal definition of domestic terrorism, as they involved criminal acts dangerous to human life that were intended to intimidate or coerce a civilian population.
Assistant U.S. Attorney Julia Martinez and Trial Attorney Michael J. Songer of the Civil Rights Division prosecuted the case on behalf of the government. The FBI conducted the investigation with the assistance of the Pueblo Police Department and Pueblo County Sheriff’s Office.
For more information and resources on the Department’s efforts to combat hate crimes, visit www.justice.gov/hatecrimes.
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United States Attorney Jason Dunn Announces ResignationRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced today that he has submitted his resignation to President Biden, effective at midnight on February 28, 2021 (copy of letter attached). Beginning March 1, 2021, the office will be led by Acting United States Attorney Matthew Kirsch, who currently serves as the First Assistant United States Attorney.
Shortly after announcing his resignation, United States Attorney Dunn released the following statement to the citizens of Colorado:
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My fellow Coloradans,
Today, I honored the request of the Acting Attorney General of the United States and submitted to President Biden my resignation as United States Attorney for the District of Colorado, effective at midnight on February 28, 2021.
Serving as United States Attorney has been the greatest honor of my professional life. As I reflect on my time as United States Attorney, I’d like you to know some of what the truly outstanding attorneys and staff in our office were able to accomplish.
Public safety was always our number one priority. We took on violent crime and drugs with ferocity, focusing on gun crime, gang violence, and narcotic traffickers using new and innovative techniques. We built an award winning multi-agency task force – the Regional Anti-Violence Enforcement Network (RAVEN) -- which has brought significant actions addressing violent gun crime in the Denver Metro area. We also worked with our partners at the DEA to take down multiple drug rings, bringing Drug Kingpin charges, and we targeted those who brought deadly fentanyl and other hard drugs into Colorado. Our policy of holding dealers accountable with long prison sentences for any opioid overdose death let drug dealers know we meant business.
Colorado is a huge state, and while the work we do in Denver and Aurora rightfully gets much of the attention, I’m particularly proud of what we accomplished for those of you in smaller communities in Colorado. For example, we targeted violent gangs in Pueblo and a drug trafficking ring in Montrose, bringing more than a dozen people to justice and getting them out of those communities. Similarly, I prioritized our Southern Ute and Ute Mountain Ute Indian Tribes, hired two new prosecutors in our Durango office to work on tribal cases, hosted a four-state Indian country victim’s conference, and emphasized the prosecution of violent crime against tribal women.
We also confronted domestic terrorism head-on and addressed the scourge of white supremacy. We prevented the bombing of a synagogue in Pueblo, and stopped a potential serious hate crime when we charged a Boulder man with possession of child pornography and highlighted the fact that he possessed Nazi propaganda and “hunting guides” with instructions on where to find Jews and Muslims. And when peaceful protests in Denver turned violent this summer, we stood with our fellow law enforcement officers in enforcing the rule of law. Likewise, when violence hit our nation’s Capitol building on January 6, we did our part to ensure that Coloradans responsible for that violence were also held accountable. We defended the right to peacefully protest in both cases, but we aggressively applied the rule of law when political speech crossed into lawlessness and violence. And we did so without regard to any political or social cause underlying these crimes.
We also took on tough civil rights issues, prosecuting a police officer who sexually assaulted a vulnerable woman in his care, and made sure that justice was served for the victims of the deadly Planned Parenthood shooting in Colorado Springs by adding federal charges when the state process stalled. During difficult moments, I reached out to communities of faith rocked by violence at home and abroad, and helped them plan how to protect their houses of worship.
During all of this, our state and nation were in the grips of a horrific opioid epidemic. I focused our office’s efforts to attack the problem on all fronts. Along the way, we had to overcome resistance from some surprising places, but were ultimately able to bring one of the nation’s largest opioid lawsuits against the biggest corporation in America for its unlawful conduct in distributing these powerful prescription drugs. At the same time, I advocated against government sponsored injection sites that could lead our fellow Coloradans into a life of addiction, while prosecuting those who distributed illicit drugs resulting in death, or who stole drugs intended for patients.
We’ve also worked to keep companies and government officials honest, standing up for the millions of consumers whose data was sold to fraudsters, rooting out corruption in government contracting, filing a criminal charge against a judge who obstructed a federal investigation, and holding a former government official accountable. We even used a federal law for only the third time in U.S. history to charge a Gambian man with torturing people in his home country on behalf of that country’s president.
I am also very proud of the role we played with our federal and state law enforcement and election partners to ensure a secure 2020 election. Working with the FBI, Homeland Security, the Colorado Secretary of State’s office and others, we established an election security team that helped deliver the most secure election in Colorado’s history. I celebrated our state’s accomplishment by honoring these federal and state officials with the U.S. Attorney’s Award of Excellence in December. These individuals made sure that Coloradans were able to vote free of violence or intimidation, and that our election systems were free from intrusion or manipulation by domestic or foreign actors. At the end of the day, Coloradans could vote freely and be sure that their votes were counted accurately.
Finally, it is important to note that all of this success came at what was undoubtedly one of the most difficult times in the history of this office. Soon after I became U.S. Attorney, we faced the longest federal government shutdown in history, where our employees were either furloughed without pay or had to work for a month not knowing if they would get paid for their efforts. This was later followed by a global pandemic and economic crash that shut down our courts at the same time crime was surging, put employees at risk of contracting a deadly disease in order to keep the community safe, and forced all of us to do our jobs remotely. And yet our office never missed a beat, rose to the occasion, and ensured that justice was always served.
Even with all our successes, the best part of my time as U.S. Attorney has simply been working side-by-side with the dedicated public servants of this office. When I became U.S. Attorney, I set out three guiding principles: professionalism, legal excellence, and integrity. I am proud to say that not a day went by where I didn’t believe we were living up to the full potential of those ideals. The employees of this office are some of the finest public servants in America. They work long hours and fight every day to keep Colorado safe, to stand up for the rule of law, and to protect our nation’s interests. They operate with unwavering integrity and without political ideology or favor to any individual. I thank them for their service and friendship, and I hope they and all of you know that I tried to lead the office in the same way.
With warmest regards and justice always,
Jason R. Dunn
United States Attorney for the District of Colorado
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Owners of Foreign Currency Exchange Investment Company Indicted for $129 Million Wire Fraud and ConspiracyRead the Press Release
DENVER -- United States Attorney Jason R. Dunn announced that a federal grand jury has indicted Michael Shawn Stewart, 57, of Scottsdale, Arizona, and Bryant Edwin Sewall, 54, previously of Little Elm, Texas, charging them with fourteen counts of wire fraud and one count of conspiracy to commit wire fraud. Defendant Stewart made his initial appearance today in front of United States Magistrate Judge Kristen L. Mix. He remains out on bond. Defendant Sewall remains at large.
According to the indictment, from late 2015 through September 2019, Stewart, Sewall, and a third business partner owned and operated Mediatrix Capital for the purpose of soliciting investor funds for algorithm-based trading in foreign currency exchange (“FOREX”) markets. During the same time, Stewart, Sewall and the third business partner had majority ownership of, and operated, Blue Isle Markets for the purported purpose of acting as an intermediate broker between Mediatrix’s investors and its brokerage firm where the FOREX trading took place. From early 2016 through September 2019, Stewart and Sewall allegedly caused the third business partner to provide false and misleading information to investors and potential investors. From early 2016 through late 2018, Stewart and Sewall falsely represented that Mediatrix had a history of successful FOREX trading dating back to December 2013 with no months in which Mediatrix incurred net losses when, in fact, Mediatrix never traded prior to 2015 and its trading history included many months in which net losses were incurred. Mediatrix’s marketing materials falsely represented that Mediatrix’s FOREX trading program offered “100% Transparency” and “World Class Returns.” From March 2016 through September 2019, investors sent more than $129 million dollars to bank accounts held by Blue Isle and Mediatrix for the purpose of investing in algorithm-based FOREX trading. During that time, trade losses in excess of $32 million occurred, and Stewart, Sewall, and the third business partner spent more than $40 million on personal and business expenses.
Each count of wire fraud carries a maximum penalty of twenty years of imprisonment, three years of supervised release, a fine of $250,000 or twice the gross gain or loss resulting from the offense, and a $100 special assessment. The conspiracy count carries a maximum penalty of five years of imprisonment, three years of supervised release, a fine of $250,000 or twice the gross gain or loss resulting from the offense, and a $100 special assessment.
The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.
The Federal Bureau of Investigation conducted the investigation with assistance from the United States Marshals Service. Assistant United States Attorney Pegeen D. Rhyne is handling the prosecution. Assistant United States Attorneys Tonya S. Andrews and William Gillespie are handling the forfeiture.
The United States Attorney’s Office and the FBI would like to thank the United States Securities and Exchange Commission, which filed civil charges against Stewart, Sewall, and other defendants, for providing information in connection with this investigation.
Case number: 21-cr-00034-WJM
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Colorado Couple Sentenced to Federal Prison for Operating Prostitution RingRead the Press Release
DENVER -- United States Attorney Jason R. Dunn announced federal prison sentences for a couple that operated an interstate prostitution ring out of the Denver Tech Center. Defendant Teresita Rodriguez, 40, of Fort Collins, Colorado, was sentenced to 15 months in federal prison. Co-defendant Jeramy Caron, 44, also of Fort Collins, was sentenced to 30 months in federal prison. Defendants Rodriguez and Caron were sentenced as a result of their guilty pleas to one count of conspiracy to facilitate prostitution, two counts of facilitating prostitution, and three counts of transporting an individual to engage in prostitution. Defendant Caron also pleaded guilty to two counts of money laundering. Both defendants’ sentences will be followed by five-year terms of supervised release. Caron was ordered to pay an assessment to a victims’ fund of $15,000. Both defendants are also forfeiting more than $390,000 in funds, two vehicles, 20 watches, and are subject to a money judgment in the amount of $700,000, because the defendants stipulated that their conspiracy earned at least $700,000.
According to facts contained in plea agreements, Rodriguez and Caron operated a prostitution ring in the Denver Tech Center from at least June 25, 2018, to March 10, 2020, at which time the enterprise was dismantled by the Federal Bureau of Investigation and task force officers. The enterprise recruited adult women from states such as Arizona, California, Florida, Illinois, Louisiana, and Utah to travel to Denver in order to provide high-end escort services that included commercial sex acts. Rodriguez and Caron paid to advertise the escort services online with provocative photographs of the women. Rodriguez and Caron then purchased airline tickets for women to visit for week-long stays, rented hotel rooms, and picked up cash proceeds following the sexual encounters. The advertising and travel costs were subtracted from the women’s profits, and Rodriguez and Caron kept half of the proceeds.
When messaging with buyers, Rodriguez and Caron typically pretended to be the prostitute because they did not want customers to understand that they were dealing with an agency and wanted customers to believe instead that the prostitutes were independent. In reality, Rodriguez and Caron kept an appointment book and arranged for the women to perform an average of approximately eight commercial sex acts per day.
“This prostitution ring operated for years, victimizing dozens of women,” said U.S. Attorney Jason Dunn. “With some good investigative and legal work, we were able to stop it. Protecting vulnerable people and holding predators accountable are core parts of our mission and we are pleased that these two are headed to prison for their crimes.”
“The FBI and our law enforcement partners have a great responsibility to protect our vulnerable community members from the abhorrent behaviors of human traffickers such as Teresita Rodriguez and Jeremy Caron," said Denver FBI Special Agent in Charge Michael Schneider. “We are grateful for our collaborative partnerships with the Arapahoe County Sheriff’s Office, the IRS-Criminal Investigation Division, and the U.S. Attorney’s Office in this case as we continue our work to fight human trafficking.”
“The sentencing of Jeramy Caron and Teresita Rodriguez for their roles in this criminal enterprise will make our community a safer place,” said Andy Tsui, Special Agent in Charge of IRS-Criminal Investigation’s Denver Field Office. “The special agents of IRS-Criminal Investigation will continue to work with our law enforcement partners to disrupt these criminal organizations and deprive them of their ill-gotten gains. We will be relentless in our mission to dismantle these organizations and bring the criminals to justice.”
Chief United States District Judge Philip Brimmer announced the sentence for Caron on January 14, 2021, and for Rodriguez on February 5, 2021.
The investigation in this case was conducted by the Federal Bureau of Investigation Child Exploitation and Human Trafficking Task Force and IRS-CI, with assistance from the Arapahoe County Sheriff’s Office. Assistant United States Attorneys Emily Treaster and Patricia Davies handled the prosecution. Assistant United States Attorney Elizabeth Young handled the forfeiture.
Case number: 20-cr-000084
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Federal Grand Jury Returns Indictment Against Denver Man for Aiming Laser Pointer at Denver Police Department HelicopterRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Logan Scott Debyle of Denver has been indicted for aiming a laser pointer at a Denver Police Department (DPD) helicopter on November 4, 2020. Debyle was originally charged by a criminal complaint on November 6, 2020. According to the affidavit in support of the original complaint, Debyle allegedly used a green laser pointer to illuminate the cockpit of a DPD helicopter called “Air 1” as the helicopter observed civil unrest during the evening of November 4, 2020. The flight crew of Air 1 viewed two men associated with the laser. The men were then detained by DPD police officers.
“We are proceeding with this and other matters to ensure that laws are enforced both here in Denver, as well as at the United States Capitol,” said United States Attorney Jason Dunn. “Peaceful protests will be protected, but lawless rule breaking will not be tolerated.”
Debyle is charged with violating 18 U.S.C. § 39A. If convicted, he faces a sentence of not more than five years imprisonment and a fine of not more than $250,000. The charge pending against the defendant is an allegation, and the defendant is presumed innocent unless and until proven guilty in a court of law.
This matter is being investigated by the FBI’s Denver Field Office and the Denver Police Department. Assistant United States Attorney David Tonini is handling the prosecution on behalf of the United States.
Case numbers: 20-mj-180 & 21-cr-032
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Ten Years in Federal Prison for Armed Bank RobberRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Christopher Lee Wheatfall-Grate, age 29, of Denver, was sentenced to ten years (120 months) in federal prison for his role in an armed bank robbery. The sentence will be followed by a three-year term of supervised release.
According to the facts in the plea agreement, on April 16, 2019, two robbers, one of whom was the defendant, entered the U.S. Bank in Westminster. Both robbers were brandishing handguns, ordering “hands up.” The defendant jumped over the teller counter and confronted two tellers. The second robber directed the bank manager to the vault and demanded access. Since more than one bank employee was necessary to open the vault, the defendant forced three other tellers to the vault area to obtain access. The robbers then fled with less than $1,400.00 and escaped in a waiting vehicle that had been stolen.
Defendant Wheatfall-Grate pleaded guilty on February 20, 2020, to one count of bank robbery and one count of brandishing a firearm during a crime of violence. As part of his plea agreement, he agreed to pay restitution to U.S. Bank in the amount of $1,318.00.
“Bank robbery is simply one of the dumbest crimes: low payout, guaranteed arrest by the FBI, and a long federal prison sentence,” said United States Attorney Jason Dunn. “Would-be bank robbers really need to reassess whether a different, and lawful, line of work would be more fruitful.”
“Monday’s sentencing of Christopher Wheatfall-Grate reflects the continuing impact federal, state and local partnerships have on combating individuals who commit armed bank robberies in our community,” said FBI Denver Special Agent in Charge Michael Schneider. “We will continue to aggressively investigate individuals who target our financial institutions and needlessly threaten their personnel to ensure they are held accountable. The FBI would like to thank the Lakewood and Westminster Police Departments, as well as the United States Attorney’s Office, for their dedication and hard work in this investigation.”
United States District Court Judge R. Brooke Jackson sentenced Wheatfall-Grate on February 1, 2021.
The Federal Bureau of Investigation, the Denver Police Department, and the Denver Sheriff’s Office conducted the investigation. Assistant United States Attorney Kurt J. Bohn handled the prosecution.
Case Number: 19-cr-00230-RBJ
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Roofing Business Owner Sentenced for Tax EvasionRead the Press Release
DURANGO – United States Attorney Jason R. Dunn announced that Ryan Wilkinson, age 42, of Durango, Colorado was sentenced on February 2, 2021, to serve 3 months in prison, followed by 6 months of home confinement to be served during 3 years of supervised release for tax evasion. Wilkinson was also ordered to pay restitution of $228,300.41 to the IRS. Wilkinson pleaded guilty on October 23, 2020.
According to the Information and plea agreement, Wilkinson is the sole owner and operator of a roofing company in Durango, Colorado. From at least January 2015, through December 2017, Wilkinson earned substantial personal income from this company but did not file federal income tax returns despite being aware of his legal obligation to do so. During this time, Wilkinson hired a bookkeeper to assist with the QuickBooks for his company yet refused to provide sufficient records and information for the bookkeeper to accurately record Wilkinson’s income and expenses. Additionally, Wilkinson had his company pay the rent on his personal residence and make payments for one of his personal investments. He instructed the bookkeeper to classify these payments as business expenses, despite being told that these personal expenses could not be classified as business expenses. Wilkinson also used a company credit card to pay other personal expenses.
“You’re not going to get away with cheating the IRS in the District of Colorado,” said U.S. Attorney Jason Dunn. “Cheating on your taxes hurts everyone. If you try it, you can be sure that the excellent agents with IRS-CI together with the federal prosecutors in my office are going to catch you and hold you accountable. This cheater will now have a federal felony conviction on his record for the rest of his life.”
“The term voluntary compliance means that each of us is responsible for filing a tax return when required and for paying the correct amount of tax,” according to Special Agent in Charge Andy Tsui. “Mr. Wilkinson ignored his duty to file federal tax returns to evade paying taxes and is now a convicted felon with a prison term to serve.”
This case was investigated by IRS Criminal Investigation. Assistant U.S. Attorney Pegeen D. Rhyne is prosecuting this matter.
Case Number: 20-cr-00332-REB
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Former Westminster Police Officer Sentenced to Six Years in Federal Prison on Sexual Assault ChargeRead the Press Release
DENVER – United States Attorney Jason Dunn announced that Curtis Arganbright, 43, a former Westminster Police Department (WPD) officer, was sentenced today in federal court in Denver, Colorado, to six years (72 months) in federal prison to be followed by three years of supervised release. In addition to his prison sentence, Arganbright will forfeit his law enforcement certification and be required to register as a sex offender. Arganbright previously pleaded guilty to one count of violating the civil rights of a woman whom he sexually assaulted. The federal charge was filed after Arganbright was sentenced to 90 days in county jail, after pleading guilty to unlawful sexual contact and official misconduct in state court.
“Curtis Arganbright’s heinous conduct not only victimized a person in his care, it shattered the public’s trust given to him as a police officer,” said U.S. Attorney Jason Dunn. “This sentence is important because it demonstrates my commitment and that of this office to hold accountable those in positions of authority and to seek full justice for victims.”
“The Department of Justice will not tolerate law enforcement officers who use their authority to prey on vulnerable victims and sexually assault them,” said Deputy Assistant Attorney General Gregory B. Friel of the Civil Rights Division. “The Civil Rights Division will continue to vigorously prosecute these cases in an effort to secure justice for the victims of these reprehensible crimes and ensure that perpetrators who use their unique power to take advantage of others are held accountable.”
“Curtis Arganbright abused his power and authority as a peace officer to terrorize and victimize a member of our community while on duty. Such behavior damages the public’s trust in law enforcement officials and is contrary to the oath we all take. The dedication of our agents, our partners at the Broomfield and Westminster Police Departments, and the U.S. Attorney’s Office demonstrates our commitment to holding all law enforcement officials who abuse their power and violate the constitution accountable for their actions,” said Denver FBI Special Agent in Charge Michael Schneider. “The FBI takes allegations of civil rights and color of law violations extremely seriously, and will always seek justice for the victims and our community.”
According to court documents, Arganbright worked as a police officer for WPD in August 2017. While on duty in the early morning hours of August 24, 2017, Arganbright responded to a call of a theft at St. Anthony Hospital. After hospital personnel declined to press charges against the victim, Arganbright agreed to drive the victim home. During the transport home, Arganbright pulled off the main road and sexually assaulted the victim.
The Denver Division of the FBI conducted the investigation, with substantial assistance from the Broomfield Police Department. The case was prosecuted by Assistant U.S. Attorney Bryan Fields of the District of Colorado and Trial Attorneys Maura White and Katherine DeVar of the Civil Rights Division of the U.S. Department of Justice.
Case Number: 19-cr-00445
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Federal Arrest Announced as Part of Dollar General Shooting InvestigationRead the Press Release
DENVER – United States Attorney Jason Dunn announced that Johnny Ray McCaslin, age 49, of Arvada has been charged with being a felon in possession of firearm and ammunition. Mr. McCaslin is scheduled to have his initial appearance in the United States District Court for the District of Colorado on Monday afternoon.
According to facts contained in the affidavit in support of the criminal complaint, evidence supporting the firearm charge was obtained as part of an investigation into a shooting at a Dollar General store in Arvada on January 26, 2021. Mr. McCaslin was identified as a suspect in that shooting, which led to a search warrant for his residence. During that search, investigators located two firearms and ammunition. Mr. McCaslin has previously been convicted of felonies in the State of Colorado and is therefore prohibited from possessing firearms or ammunition.
The charges in the complaint are allegations and the defendant is presumed innocent unless and until proven guilty.
This matter is being investigated by the ATF and multiple law enforcement agencies. The case is being prosecuted by Assistant United States Attorney Jena Neuscheler.
Case Number: 21-mj-00015
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Colorado Springs Man Sentenced to More Than 13 Years in Federal Prison for Role in Two RobberiesRead the Press Release
DENVER – United States Attorney Jason Dunn announces that Dustin Alan Wall, age 31, of Colorado Springs, was sentenced to more than 13 years in federal prison for his role in two robberies in Colorado Springs.
According to the facts contained in the plea agreement, Wall aided and abetted robberies of both a Days Inn and an ENT Federal Credit Union in Colorado Springs. Specifically, on February 16, 2018, Wall drove two co-defendants to a Days Inn in Colorado Springs. Wall told one of the co-defendants that, as part of a gang initiation, the co-defendant would get money and respect from the robbery. Inside the motel, the robbers assaulted a victim, hitting him over the head, causing injuries. The men stole less than $200.
A month later, on March 14, 2018, Wall drove with two other co-defendants to the ENT Federal Credit Union. One of the co-defendants was provided with a gun and a note to use in the robbery. Inside the ENT Federal Credit Union, the co-defendant demanded a teller provide cash or he would “blow [his] brains out.” The co-defendant stole less than $6,000, which was later divided up among the group.
“Taking violent gang members off the street is what we do best, said U.S. Attorney Jason Dunn. “Colorado Springs is safer as a result of the good work of this office and our colleagues at the FBI, the Colorado Springs Police Department, and the El Paso County Sheriff’s Office.”
“Dustin Wall, a ranking Rolling 60s Crips gang member, recruited and organized young gang members to commit violent armed robberies of banks and businesses in the Colorado Springs area, terrorizing innocent employees and witnesses at gunpoint and stealing cash, all to further the insidious needs of his gang,” said FBI Denver Special Agent in Charge Michael Schneider. “The Colorado Springs community is safer with him behind bars. We thank our partners at the Colorado Springs Police Department Robbery Unit, Task Force Officers at El Paso County Sheriff’s Office, and U.S. Attorney’s Office for helping us hold this dangerous criminal accountable.”
United States District Court Judge William J. Martinez sentenced Wall on January 29, 2021.
This matter was investigated by the FBI, the Colorado Springs Police Department, and the El Paso County Sheriff’s Office. Assistant United States Attorney Kurt Bohn is prosecuting the case.
CASE NUMBER: 18-cr-000360
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Federal Charges Announced for Fourth Person Arrested as Part of Law Enforcement Action in Jefferson County on January 27, 2021Read the Press Release
DENVER – United States Attorney Jason Dunn announced that Tanya Bui, age 23, of Littleton has been charged with possession of marijuana with intent to distribute as well as possession of a firearm in furtherance of a drug trafficking offense. Ms. Bui is scheduled to have her initial appearance in the United States District Court for the District of Colorado on Friday afternoon.
According to facts contained in the affidavit in support of the criminal complaint, evidence supporting the drug and firearm charges was obtained as part of a murder and arson investigation, which culminated in a search of a Littleton property. During Wednesday’s search, investigators allegedly located a large quantity of marijuana and a firearm in a room identified as belonging to Ms. Bui. As recounted in the affidavit, investigators previously obtained social media posts and messages which indicated drug trafficking activity and were attributed to Ms. Bui.
The charges in the complaint are allegations and the defendant is presumed innocent unless and until proven guilty.
This matter is being investigated by the ATF and the Denver Police Department’s Homicide Unit. The case is being prosecuted by Assistant United States Attorney Celeste Rangel.
CASE NUMBER: 21-mj-00014
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Marketing Company Agrees to Pay $150 Million for Facilitating Elder Fraud SchemesRead the Press Release
Epsilon Data Management LLC (Epsilon), one of the largest marketing companies in the world, has entered into a settlement with the Department of Justice to resolve a criminal charge for selling millions of Americans’ information to perpetrators of elder fraud schemes.
Epsilon entered into a deferred prosecution agreement (DPA) with the Consumer Protection Branch of the Justice Department’s Civil Division and the U.S. Attorney’s Office for the District of Colorado in connection with a criminal information charging the company with one count of conspiracy to commit mail and wire fraud. Under the terms of the DPA, which the parties submitted to the district court in Denver on Jan. 19, 2021, Epsilon agreed to pay a total of $150 million, with $127.5 million of that amount going to compensate victims of the fraudulent schemes that used consumer data sold by Epsilon. Epsilon also agreed to implement significant compliance measures to safeguard consumers’ data and prevent its sale to individuals or entities engaged in fraudulent or deceptive marketing campaigns. Further, the DPA requires Epsilon to maintain a procedure for consumers to request that it not sell their information to others.
Headquartered in Irving, Texas, with its principal sales office in Westminster, Colorado, Epsilon used sophisticated data modeling to identify consumers most likely to respond to its clients’ marketing solicitations. As part of the DPA, Epsilon admitted that, from July 2008 through July 2017, employees in its Direct to Consumer (DTC) Unit knowingly sold modeled lists of consumers to clients engaged in fraud. In particular, Epsilon acknowledged that the DTC Unit sold consumer lists to a number of mass-mailing fraud schemes that sent false “sweepstakes” and “astrology” solicitations to consumers. Those solicitations stated that each consumer recipient had won a large prize or individualized psychic service that they could obtain by paying a fee. In reality, the solicitations—as known to DTC Unit employees—were mass-produced mailings and victims who paid a fee received nothing of value. As reflected in the consumer lists sold by the DTC Unit to perpetrators of the fraud schemes, the schemes disproportionately affected the elderly and other vulnerable individuals. The consumer data sold by the DTC Unit to fraudsters came both from other fraudulent clients and from legitimate Epsilon clients, including non-profit and charitable organizations. DTC Unit employees continued to sell consumer data to clients engaged in fraud despite knowing that those and similar clients had been arrested, charged with crimes, convicted, and otherwise subject to law enforcement actions for false and misleading practices. Epsilon admitted that the DTC Unit sold more than 30 million consumers’ data to fraudulent schemes.
“Companies who sell consumer information have a responsibility to avoid knowingly selling it to those who will use the data to defraud or swindle consumers,” said U.S. Attorney Jason Dunn. “I hope other data companies will take note of this outcome and ensure that they don’t likewise help fraudsters.”
“By allowing clients engaged in fraudulent schemes to buy data on millions of consumers most susceptible to their schemes, Epsilon employees facilitated those schemes with staggering effect,” said Acting Assistant Attorney General Brian Boynton of the Department of Justice’s Civil Division. “We are encouraged by Epsilon’s cooperation since the misconduct was discovered, its remediation efforts, and its commitment to stringent new compliance measures.”
“Postal Inspectors have always held consumer protection as a core tenet of our efforts to ensure the integrity of the U.S. Mail,” said Deputy Chief Postal Inspector Craig Goldberg of the U.S. Postal Inspection Service. “When data firms such as Epsilon use their extraordinary access to consumers’ personal information to provide laser-focused marketing lists supporting deceptive practices, more American consumers are placed in harm’s way. Firms that amass big data assume a big responsibility to ensure this data is not used by malicious actors. If you cater to criminals who are exploiting Americans through the U.S. Mail, Postal Inspectors are coming for you.”
The DPA provides that Epsilon must select, and cover the costs of, an independent claims administrator to distribute the $127.5 million to identified victims with established losses caused by fraud schemes that used Epsilon data. The claims administrator will contact identified victims directly. More information about the victim compensation amount and fund distribution will be posted at the following website: https://www.justice.gov/civil/case/united-states-v-epsilon-data-management-llc. Victims of elder fraud schemes may also contact the National Elder Fraud Hotline, which provides services to seniors who may be victims of financial fraud. The hotline is staffed by experienced case managers who provide personalized support to callers. The hotline’s toll-free number is 833-FRAUD-11 (833-372-8311).
The U.S. States Postal Inspection Service investigated the case. Trial Attorneys Alistair Reader and Ehren Reynolds of the Department of Justice Civil Division’s Consumer Protection Branch and Assistant U.S. Attorneys Hetal J. Doshi and Rebecca Weber of the U.S. Attorney’s Office for the District of Colorado are prosecuting the case.
CASE NUMBER: 21-cr-00006-RM
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Denver Man Sentenced to Twelve Years in Federal Prison for Armed Carjacking and Bank RobberyRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Aaron Dugar, age 35, of Denver, was sentenced to more than twelve years (147 months) in federal prison for his role in an armed carjacking and bank robbery. The sentence will be followed by three years of supervised release.
According to facts contained in the plea agreement, on December 29, 2018, Dugar stole an SUV at gunpoint, demanding that two victims get out of the SUV and leave their personal property including their cellphones. Dugar then fled in the SUV. About a half-hour later, Dugar robbed the Bank of the West in Wheat Ridge. He entered the bank carrying a dark colored backpack. He approached a teller and put his index finger to his lips, indicating that the teller needed to be quiet. He placed the backpack on the teller counter and then raised a semi-auto style handgun in the air so everyone nearby could see it. He racked the slide on the gun, demanded money, and pointed the gun at a teller. Dugar ordered the teller not to activate any alarms and instructed her to hurry. He said “don’t make me tell you to hurry up again.” As the money went into the bag, Dugar demanded “big bills only.” Along with regular bills, the teller then inserted bait money and a covert tracking device into the backpack. Dugar then demanded money from two other tellers, who complied. One of them put more bait bills and another covert tracker into the backpack. Dugar then ran out of the lobby door with almost $15,000 in cash.
The tracking devices became active after Dugar left the bank and one of the devices provided the location of Dugar in Commerce City. Adams County Sheriff’s Deputies located a gray SUV at the location broadcast by the tracker and found Dugar in the driver’s seat. He refused to get out of the vehicle and deputies were forced to break open the window. Inside the SUV, deputies located the backpack, cash, trackers, and a handgun.
“Criminals just don’t seem to catch on that bank robbery is a crime that doesn’t pay, as the robbers almost always get caught,” said U.S. Attorney Jason Dunn. “Thanks to quick thinking bank tellers, Sheriff’s Deputies, FBI agents, local law enforcement, and prosecutors, this defendant walked out of that bank and straight into a long prison sentence.”
“Aaron Dugar’s sentencing of over 12 years for a weapons offense, carjacking, and bank robbery should serve as a strong message that the FBI and our partners will tirelessly work to bring those who use violence and endanger the public to justice,” said FBI Denver Special Agent in Charge Michael Schneider. “We are grateful to the U.S. Attorney’s Office, the Wheat Ridge Police Department, and the Westminster Police Department for their thorough and dedicated work in this joint investigation.”
United States District Court Judge R. Brooke Jackson sentenced Dugar on January 19, 2021.
This case was investigated by the FBI with assistance of the Adams County Sheriff’s Department, the Wheat Ridge Police Department and the Westminster Police Department. The defendant was prosecuted by Assistant U.S. Attorney Kurt Bohn.
CASE NUMBER: 19-cr-00085-RBJ
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U.S. Attorney’s Office Announces Findings of Investigation Concerning Tribal Ranger-Involved Shooting on Southern Ute Indian ReservationRead the Press Release
DURANGO – After a thorough investigation, the United States Attorney’s Office for the District of Colorado has concluded that there is no legal basis to pursue federal criminal charges against a Southern Ute Tribal Ranger who fatally shot George Sands on November 24, 2020, on the Southern Ute Indian Reservation because the Tribal Ranger’s actions were justified under the legal doctrine of self-defense. The U.S. Attorney’s Office announced the decision today, after notifying the family of Mr. Sands.
“The loss of any life is tragic. And when it comes at the hands of law enforcement, the FBI and my office are committed to thoroughly investigating and reviewing such incidents,” said U.S. Attorney Jason Dunn. “Here, the evidence demonstrates that the Tribal Ranger’s actions were clearly justified under the self-defense doctrine. We appreciate the public’s patience while we investigated this matter and its understanding that, during the pendency of an investigation, we are limited by both ethical and legal considerations as to what information we can release.”
In this matter, both the location of the shooting on tribal land and the identity of one of the parties as an Alaskan Native gave the United States exclusive jurisdiction to consider whether federal criminal charges were appropriate. The FBI performed the investigation and the results were reviewed by the U.S. Attorney’s Office. The evidence included a civilian witness account, photographs, recorded radio communications of law enforcement, an autopsy report, a report from responding paramedics, and reports from the La Plata County Sherriff, the Southern Ute Police Department, the Southern Ute Tribal Rangers, and the Colorado State Patrol.
In summary, the evidence demonstrates that on November 24, 2020, a Tribal Ranger approached a SUV parked near Weaselskin Bridge to investigate potential trespassing on tribal land. Mr. Sands was in the driver seat of the SUV and a female party was in the passenger seat. During the interaction, Mr. Sands got out of the SUV. Mr. Sands orally provided a false name and date of birth. The Tribal Ranger contacted dispatch and learned that the false name was a known alias of Mr. Sands. Dispatch relayed to the Tribal Ranger that Mr. Sands had an active felony warrant for his arrest. Mr. Sands ran back to the SUV, while the Tribal Ranger pursued him. Mr. Sands unsuccessfully attempted to draw a large knife strapped to the door of the SUV. Mr. Sands then retrieved a realistic replica handgun from the SUV (photo below).
Unlike other replica or toy guns, the replica gun brandished by Mr. Sands did not have an orange end cap or other markings that would make it easily distinguishable from a real firearm. As Mr. Sands moved the replica gun towards the Tribal Ranger, the Tribal Ranger fired his service weapon six times, killing Mr. Sands.
Based on the available evidence, the U.S. Attorney’s Office concluded that no criminal charges against the Tribal Ranger are warranted. Specifically, the Tribal Ranger’s use of lethal force against Mr. Sands was uniformly consistent with self-defense. Under federal law, a person may resort to self-defense if he or she reasonably believes that he or she is in imminent danger of death or great bodily harm, thus necessitating an in-kind response.
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Colorado Springs Company and Its Owners Agree to Pay over $400,000 to Resolve Allegations That It Improperly Obtained Small Business Research FundsRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Albido Corporation, along with two individuals, have agreed to pay over $400,000 to settle allegations that the company improperly obtained three awards through the Small Business Innovation Research Program based on false misrepresentations of eligibility for the program.
The Small Business Innovations Research Program (SBIR) is a federal program intended to foster eligible small businesses through federally funded research and development awards. Awards are made by various government agencies, with the goal of providing federal funds for eligible small businesses to research and develop technology with potential commercial benefits. The government does not own the research it subsidizes through the SBIR program or share in the profits from commercial applications. However, in order to ensure that taxpayer dollars are properly spent, the Small Business Administration, and each agency issuing awards, publishes eligibility requirements for participation in the program.
Albido Corporation, a Colorado company based in Colorado Springs, received three SBIR awards between 2014 and 2017 from the National Aeronautics and Space Administration (NASA) and the Department of Energy to research and develop surface acoustic wave sensors.
According to the United States, Albido Corporation, and its two then-owners, Dr. Viorel Olariu and Dr. Alfred Gnadinger, made numerous false certifications and representations to NASA and the Department of Energy regarding the company’s eligibility for the program prior to and during the performance of the awards. The United States contends that Albido Corporation did not meet the eligibility requirements for these awards because the company violated rules involving who can be designated as the award recipient’s principal investigator.
Albido Corporation, Dr. Olariu, and Dr. Gnadinger have now agreed to pay over $400,000 collectively to settle the allegations.
“When federal agencies set rules to ensure taxpayer dollars are used for specific purposes, those rules must be taken seriously,” said U.S. Attorney Jason Dunn. “When we become aware that companies have improperly obtained federal-program funds based on misrepresentations, we will take action to enforce the rules and recoup the money.”
“These settlements underscore the important role that proactive fraud detection efforts play in ensuring the integrity of the SBIR Program. I commend the outstanding investigative efforts of the NASA and Department of Energy agents and the work of the U.S. Attorney’s Office for the District of Colorado in reaching these agreements,” said NASA Inspector General Paul K. Martin.
“The Department of Energy Office of Inspector General will continue to aggressively investigate those who attempt to defraud Department programs,” said Teri L. Donaldson, Department of Energy Inspector General. “I would like to thank our investigators as well as the NASA OIG and the U.S. Attorney’s Office for the District of Colorado for their hard work in reaching this settlement.”
The claims against Albido Corporation and its owners are allegations, and in agreeing to settle this matter, they did not admit to any liability.
The United States Attorney’s Office thanks NASA’s Office of Inspector General and the Department of Energy’s Office of Inspector General for their diligent work on this investigation. The United States was represented in this matter by Assistant U.S. Attorney David Moskowitz.
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United States Attorney Jason Dunn's Statement Regarding the Third Circuit's Decision That Supervised Injection Sites Violate Federal LawRead the Press Release
“I commend and agree with the federal appellate court’s decision finding that facilities opened with the purpose of having visitors use heroin and fentanyl are doing so in violation of federal law. And as I have said previously, the idea of a government sponsored drug house is an anathema to the principle that government’s primary duty is to do no harm. We cannot combat the opioid epidemic by enabling individuals to access and use illegal deadly drugs, particularly in light of the recent rise in illicit fentanyl use. Such facilities would only serve to further the illicit drug trade and result in a greater number of overdose deaths, not less.”
safehouse_opinion.pdfDenver Man Sentenced to Five Years in Federal Prison for Possession of Firearm While Drug TraffickingRead the Press Release
United States Attorney Jason R. Dunn announced that Alexander Uhey-Medina, 32, of Denver, Colorado, was sentenced to five years (60 months) in federal prison for possession of a firearm in furtherance of a drug trafficking crime. The sentence will be followed by three years of supervised release.
According to facts contained in the plea agreement, on May 26, 2020, Denver police officers were attempting to locate Uhey-Medina for outstanding warrants. They located Uhey-Medina and followed him to a motel in Aurora, where he was taken into custody. Uhey-Medina stated that he had a weapon inside of the backpack he was carrying. An officer searched the backpack and located a loaded firearm, a loaded magazine, three baggies containing methamphetamine, three baggies, each of which contained fentanyl, cocaine, and heroin, respectively, a digital scale, two cell phones, $1,819 cash, syringes, a glass narcotic pipe, and a fentanyl “test strip.”
“Despite challenges from coronavirus, this office is continuing our critical work improving our communities by prosecuting drug traffickers,” said U.S Attorney Jason Dunn. “I commend our law enforcement partners for keeping their laser focus on this mission, which makes a real difference for the people of Colorado.”
“Those that bring illegal drugs into our communities directly disrupt public safety. ATF will continue to work with our law enforcement partners to ensure that any such individuals are brought to justice,” said ATF Special Agent in Charge David Booth.
United States District Court Judge R. Brooke Jackson sentenced Uhey-Medina on January 11, 2021.
This case was investigated by the ATF and the Denver Police Department Firearm Assault Shoot Team (FAST). The defendant was prosecuted by Assistant U.S. Attorney Celeste Rangel.
CASE NUMBER: 20-cr-00155-RBJ
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Joint Statement from United States Attorney Jason Dunn and Denver FBI Special Agent in Charge Michael SchneiderRead the Press Release
The United States Attorney’s Office for the District of Colorado and the Denver Field Office of the FBI are committed to holding perpetrators of last week’s Capitol violence to account for any federal crimes. At the same time, we are working together with state and local authorities to ensure that any demonstrations that may take place in Colorado remain peaceful. Should that not be the case, we will investigate and aggressively prosecute those who violate federal law. While First Amendment rights will be protected, our offices will ensure that our criminal laws are enforced.
We urge the public to remain vigilant and immediately report to law enforcement if they see or hear anything suspicious or witness acts of violence. Call 303-629-7171, or go on-line at https://www.fbi.gov/tips.
U.S. Attorney Jason Dunn Recognizes Law Enforcement Appreciation Day, January 9, 2021Read the Press Release
United States Attorney Jason Dunn honors law enforcement officers by observing Law Enforcement Appreciation Day, which is set aside to honor the distinguished service and personal sacrifice of law enforcement officers in Colorado and around the country. This year’s observance takes place on Saturday, January 9, 2021.
“The brave men and women who serve as law enforcement officers are the backbone of justice in our country,” said U.S. Attorney Jason Dunn. “As we saw this past week at our nation’s Capitol, too often law enforcement officers are asked to make the ultimate sacrifice. We mourn the loss of U.S. Capitol Police Officer Brian D. Sicknick, who died from injuries sustained defending the U.S. Capitol on January 6th. For Officer Sicknick and so many others who serve to defend the values we hold dear, we honor your service and sacrifice.”
On January 9, you can take a moment to honor those who protect and serve our communities in a number of ways:
- By wearing blue clothing;
- Sending a card of support to your local police department or sheriff’s office;
- Sharing a story about a positive law enforcement experience on social media;
- Asking friends and family to write letters in support of law enforcement; or
- Organizing an event in support of law enforcement officers.
Law Enforcement Appreciation Day also affords an opportunity to raise awareness concerning officer safety and wellness issues. Law enforcement is mentally taxing and subjects officers to disproportionate levels of trauma.
Studies have shown that law enforcement officers are at greater risk of heart disease, alcohol abuse, major psychological illnesses, and divorce as compared to other professions. The Department of Justice’s Office of Community Oriented Policing Services (COPS Office) and the Bureau of Justice Assistance (BJA) have collected resources to support officer safety and wellness. To view these resources, click here.
Oak Creek Man Sentenced to More Than A Year in Prison for Stealing User Fees from Recreational AreasRead the Press Release
DENVER – United States Attorney Jason Dunn announced that Jayce Peterson, 36, of Oak Creek, Colorado, was sentenced to more than a year (15 months) in prison for theft and depredation of government property. Peterson’s prison sentence will be followed by two concurrent two-year terms of supervised release.
According to the plea agreement, between July and October 2018, Peterson used an oxy-acetylene torch to cut locks off of metal fee tubes used at recreation areas throughout Northwestern Colorado. He then stole money that others had deposited to pay for camping or for day use. Damaged fee tubes were on land managed by the Bureau of Land Management (BLM), the United States Forest Service (USFS), and the Colorado Department of Parks and Wildlife (CPW). Peterson admitted that he typically approached a fee tube during the night. He often used a tarp to conceal his actions and the bright light coming from the torch he was using. Peterson also stole surveillance cameras installed by law enforcement agencies to monitor fee tube locations during the investigation. Through coordination between the BLM, USFS, Colorado Parks and Wildlife, and other state and local agencies, Peterson was identified and arrested. He caused more than $39,000 in damage.
“Stealing user fees and damaging government property in recreation areas hurts everyone who enjoys our wild areas,” said United States Attorney Jason Dunn. “Coloradans can be confident that this office, together with our law enforcement partners, will protect our public lands to make sure they are kept pristine and beautiful for generations to come.”
“Theft and intentionally damaging government property are serious offenses, and I applaud our partners in following through with this case,” said BLM Colorado Special-Agent-In-Charge Gary Mannino. “The stolen fees are meant to stay in the local area for both maintaining and improving recreation sites to enhance recreation experiences for all visitors.”
“Fee tube theft and the resulting damage to government property significantly impacts limited agency resources and ultimately negatively affects the users of our magnificent public lands,” said United States Forest Service Special Agent-In-Charge Kenneth Pearson. “This is a great example of local, state, and federal law enforcement partners working together for the common good.”
United States District Court Judge Christine M. Arguello sentenced Peterson on January 7, 2021.
The investigation in this case was conducted by the Bureau of Land Management, the United States Forest Service, and Colorado Parks and Wildlife. The prosecution was handled by Assistant United States Attorney Jeremy Chaffin.
CASE NUMBER: 19-cr-00331-CMA-GPG
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Montrose Resident Sentenced to More Than Seven Years in Federal Prison for Role in Drug ConspiracyRead the Press Release
United States Attorney Jason Dunn announced that Naomi Vaughn, 36, of Montrose, Colorado, was sentenced to more than seven years (87 months) in federal prison for her role in a conspiracy to distribute methamphetamine. Vaughn’s prison sentence will be followed by a five-year term of supervised release.
According to court documents, as well as facts presented at sentencing, Vaughn and her husband/co-defendant Joseph Davis were mid-level dealers of methamphetamine in Montrose, Colorado. They received and distributed multiple pounds of methamphetamine for profit. Vaughn began this criminal activity shortly after her husband was released on parole in 2019, after he served a portion of a ten-year state prison sentence for previous drug distribution. After Davis was released on parole, the couple distributed methamphetamine from their Montrose residence.
“Montrose is an important community on the western slope,” said U.S. Attorney Jason Dunn. “Drug rings operating in small communities can have a devasting impact on the quality of life. I commend our federal and local law enforcement partners who worked tirelessly with our prosecutors to make a real difference for everyone who lives in Montrose and the surrounding area.”
“This sentencing sends a clear message that those who seek to sell this poison in our community will be caught and dealt with severely,” said DEA Special Agent in Charge Deanne Reuter. “The DEA and our law enforcement partners across the state are committed to eradicating the illegal sale and distribution of methamphetamine and other hard drugs plaguing our communities.”
United States District Court Judge Christine M. Arguello sentenced Vaughn on January 7, 2021. Davis was previously sentenced to more than 12 years (151 months) for his involvement in the drug conspiracy.
The investigation in this matter was conducted by the DEA, the Montrose County Sheriff’s Office, the Montrose County Police Department, and the Seventh Judicial District Drug Task Force. Assistant United States Attorney Zachary Phillips is leading the prosecution.
CASE NUMBER: 19-cr-00535-CMA-GPG
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Department of Justice Files Nationwide Lawsuit Against Walmart Inc. for Controlled Substances Act ViolationsRead the Press Release
In a civil complaint filed today, the Department of Justice has alleged that Walmart Inc. unlawfully dispensed controlled substances from pharmacies it operated across the country and unlawfully distributed controlled substances to those pharmacies throughout the height of the prescription opioid crisis.
The complaint alleges that this unlawful conduct resulted in hundreds of thousands of violations of the Controlled Substances Act (CSA). The Justice Department seeks civil penalties, which could total in the billions of dollars, and injunctive relief.
“It has been a priority of this administration to hold accountable those responsible for the prescription opioid crisis. As one of the largest pharmacy chains and wholesale drug distributors in the country, Walmart had the responsibility and the means to help prevent the diversion of prescription opioids,” said Jeffrey Bossert Clark, Acting Assistant Attorney General of the Civil Division. “Instead, for years, it did the opposite — filling thousands of invalid prescriptions at its pharmacies and failing to report suspicious orders of opioids and other drugs placed by those pharmacies. This unlawful conduct contributed to the epidemic of opioid abuse throughout the United States. Today’s filing represents an important step in the effort to hold Walmart accountable for such conduct.”
“We entrust distributors and dispensers with the responsibility to ensure controlled substances do not fall into the wrong hands,” said Drug Enforcement Administration (DEA) Acting Administrator Timothy Shea. “When processes to safeguard against drug diversion are violated or ignored, or when pharmacies routinely fill illegitimate prescriptions, we will hold accountable anyone responsible, including Walmart. Too many lives have been lost because of oversight failures and those entrusted with responsibility turning a blind eye.”
The result of a multi-year investigation by the department’s Prescription Interdiction & Litigation (PIL) Task Force, the complaint filed in the U.S. District Court for the District of Delaware alleges that Walmart violated the CSA in multiple ways as the operator of its pharmacies and wholesale drug distribution centers. The complaint alleges that, as the operator of its pharmacies, Walmart knowingly filled thousands of controlled substance prescriptions that were not issued for legitimate medical purposes or in the usual course of medical practice, and that it filled prescriptions outside the ordinary course of pharmacy practice. The complaint also alleges that, as the operator of its distribution centers, which ceased distributing controlled substances in 2018, Walmart received hundreds of thousands of suspicious orders that it failed to report as required to by the DEA. Together, the complaint alleges, these actions helped to fuel the prescription opioid crisis.
If Walmart is found liable for violating the CSA, it could face civil penalties of up to $67,627 for each unlawful prescription filled and $15,691 for each suspicious order not reported. The court also may award injunctive relief to prevent Walmart from committing further CSA violations.
“For years, Walmart failed to meet its obligations in distributing and dispensing dangerous opioids and other drugs,” said Deputy Assistant Attorney General Daniel J. Feith of the Civil Division’s Consumer Protection Branch. “We look forward to advancing this case with our DOJ partners.”
“Today’s complaint is the culmination of a painstaking investigation by my office and our Department of Justice colleagues that uncovered years of unlawful conduct that did untold damage to communities around the country, including here in Colorado,” said U.S. Attorney for the District of Colorado Jason R. Dunn. “We look forward to pursuing justice and holding the company accountable for its conduct.”
“The opioid crisis has exacted a catastrophic human toll upon the residents of our district and upon our country,” said U.S. Attorney for the Middle District of Florida Maria Chapa Lopez. “National pharmacy chains must meet their legal obligations when dispensing and distributing these powerful medications. The filing of this complaint in collaboration with the Department of Justice and other United States Attorneys’ Offices demonstrates our firm commitment to enforcing these critical legal requirements.”
“As a pharmacy that fills prescriptions for controlled substances, Walmart has an obligation to fill only those prescriptions that are legitimate,” said Acting U.S. Attorney for the Eastern District of New York Seth D. DuCharme. “As a wholesale drug distributor, Walmart also had an obligation to notify DEA of suspicious orders of controlled substances. Walmart failed to comply with both of its obligations, and thereby failed in its responsibility to prevent the diversion of controlled substances.”
“Opioid addiction and abuse have devastated communities across our nation, and eastern North Carolina is no exception,” said U.S. Attorney for the Eastern District of North Carolina Robert Higdon Jr. “Walmart’s failures only made these problems worse. For example, our office prosecuted a physician for illegal opioid distribution. A jury convicted him just last year, and he is currently serving a twenty-year prison sentence. As it turns out, that physician expressly directed patients to Walmart to have their opioid prescriptions filled. Walmart’s own pharmacists reported concerns about the doctor up the corporate chain, but for years, Walmart did nothing—except continue to dispense thousands of opioid pills. My office will continue to work with others in the Department to ensure that Walmart — and all others who had a role to play in this ongoing opioid crisis — are held responsible.”
“The misuse of prescription painkillers is a public health crisis,” said U.S. Attorney for the District of Delaware David C. Weiss. “DEA registrants must understand that licensure is a privilege, not a right. Whenever that privilege is abused, whether by the smallest local provider or the largest national chain, our office and the Department of Justice will take all necessary steps to enforce the law and keep the public safe.”
The claims made in the complaint are allegations that United States must prove if the case proceeds to trial.
The United States is represented in the filed action by attorneys from the Department of Justice Civil Division’s Consumer Protection Branch and from the U.S. Attorneys’ Offices for the District of Colorado, District of Delaware, Eastern District of North Carolina, Eastern District of New York, and Middle District of Florida. The DEA’s Dallas Field Division and Diversion Control Operations personnel investigated the case. The DEA’s Office of Chief Counsel and the Criminal Division’s Narcotic and Dangerous Drug Section provided substantial support.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For information about the U.S. Attorneys’ Offices, visit: District of Colorado, https://www.justice.gov/usao-co; District of Delaware https://www.justice.gov/usao-de; Eastern District of North Carolina https://www.justice.gov/usao-ednc; Eastern District of New York https://www.justice.gov/usao-edny; Middle District of Florida https://www.justice.gov/usao-mdfl. Information about the DEA is available at www.dea.gov.