District of Colorado
Press releases recorded for this federal judicial district.
Denver Drug Dealer Sentenced to Nearly 11 Years in Federal PrisonRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced today that Saskia Iona Mesmer, age 25, of Denver, Colorado was sentenced to serve 130 months (nearly 11 years) in federal prison for possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. The sentence was pronounced by Chief U.S. District Court Judge Philip A. Brimmer. Mesmer appeared at the sentencing hearing in custody, and was remanded at its conclusion. The DEA joined in today’s announcement.
According to the stipulated facts contained in the defendant’s plea agreement, on February 6, 2018, the Denver Police Department executed a state search warrant at Mesmer’s residence based on information that she previously sold methamphetamine to a confidential informant. While executing the warrant, officers determined that she had a stolen loaded handgun, 55.87 grams of methamphetamine, 39.95 grams of heroin, $2,850 in cash, 43 Alprazolam pills and a digital scale.
“The defendant was a drug dealer, selling dangerous narcotics while carrying a loaded firearm,” said U.S. Attorney Jason Dunn. “Thanks to the Denver Police Department, the DEA and prosecutors from this office, Ms. Mesmer will no longer pose a danger to the community.”
“This case shows the great partnership between local and federal law-enforcement,” said DEA Denver Division Special Agent in Charge Deanne L. Reuter. “Ms. Mesmer prayed on the community we live in and will now face the consequences of her actions.”
Mesmer was indicted by a federal grand jury in Denver on June 6, 2018. She pleaded guilty before Chief Judge Brimmer on August 28, 2019. She was sentenced on December 30, 2019.
This case was investigated by the Denver Police Department and the DEA Denver Division. The defendant was prosecuted by Assistant U.S. Attorney Emily Treaster.
Aurora Felon Pleads Guilty to Illegally Possessing 14 Firearms Including Two Assault RiflesRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced today that Jeffrey Mons Olson, age 49, of Aurora, Colorado, pleaded guilty today before U.S. District Court Judge Raymond P. Moore to being a felon in possession of a firearm. Olson appeared at the hearing in custody and was remanded at its conclusion. He is scheduled to be sentenced by Judge Moore on March 19, 2020.
According to the stipulated facts contained in the plea agreement, on March 28, 2019, the Colorado Department of Adult Parole conducted surveillance on Olson. During the surveillance, parole officers observed the defendant at a storage locker in Aurora. They then followed him home. Once at home, parole officers searched Olson’s Dodge Ram truck. They located a loaded Glock between the driver’s seat and the center console. Also discovered behind the driver’s seat was a black duffle bag with four additional firearms. Four of the five firearms recovered in the truck were loaded and previously reported stolen.
On March 29, 2019, investigators with the Denver Police Department and Homeland Security Investigations (HSI) went to the storage locker in Aurora, which had been rented by the defendant’s girlfriend. Law enforcement obtained and executed a search warrant at the locker. Inside the storage unit agents and officers found and seized nine additional firearms, including two semi-automatic rifles and seven handguns. Four of these firearms were loaded. In addition to the weapons, assorted ammunition of various calibers were seized. Prior to possessing the firearms and ammunition, Olson had been previously convicted of at least one felony.
“A felon carrying loaded firearms is a danger to the community,” said U.S. Attorney Jason Dunn. “Thanks to the hard work of this office and local and federal law enforcement, he was arrested, has admitted to his crime, and will face his punishment.”
Olson was indicted by a federal grand jury in Denver on September 5, 2019. He pleaded guilty today, December 23, 2019. The statutory maximum penalty for being a felon in possession of a firearm is not more than 10 years in federal prison, and up to a $250,000 fine. This case was investigated by HSI, the Colorado Department of Adult Parole and the Denver Police Department. The defendant is being prosecuted by Assistant U.S. Attorney Conor Flanigan.
Police Impersonator Sentenced to Federal Prison for Illegally Obtaining Cell Phone RecordsRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced today that Matthew Marre, age 30, of Johnstown, Colorado was sentenced by U.S. District Court Judge R. Brooke Jackson to serve 15 months imprisonment followed by 3 years of supervised release for fraudulently obtaining confidential phone records. The defendant appeared at the hearing in custody and was remanded at the hearing’s conclusion. The FBI joined in today’s announcement.
According to the stipulated facts contained in the plea agreement, Marre worked as a fugitive recovery agent, or bounty hunter, throughout Colorado. He contacted the four major cellular phone carriers – Sprint, Verizon, T-Mobile and AT&T – falsely claiming to be a law enforcement officer investigating exigent circumstances with suicidal subjects. In doing so, Marre submitted false documents and used an email address he had created to look like an official law enforcement email. Marre’s fraudulent requests involved cell phone GPS location information which he used in an effort to locate bounties rather than for a legitimate law enforcement purposes.
Phone providers became suspicious of Marre’s requests for emergency assistance and contacted the FBI when their attempts to verify Marre’s claim to be a law enforcement officer were unsuccessful.
“Those who impersonate peace officers for their own private gain will be held accountable for their actions,” said U.S. Attorney Jason Dunn. “In this case, the defendant will have some time in federal prison to reflect on his conduct.”
"Impersonating a law enforcement officer is a serious offense," stated FBI Special Agent in Charge Dean Phillips. "Gaining access to private information without a legitimate law enforcement purpose, especially alleging a threat to life, undermines the lawful processes in place which allow us to investigate crime."
This case was investigated by the FBI Safe Streets Task Force. The defendant was prosecuted by Assistant U.S. Attorney Greg Holloway.
Loveland Man Sentenced to Federal Prison for Obstructing the IRS and Ordered to Pay Nearly $500,000Read the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Adam M. Hausman, age 45, of Loveland, Colorado was sentenced by U.S. District Court Judge R. Brooke Jackson to serve 18 months in federal prison following by 1 year of supervised release for obstructing and impeding the administration of the Internal Revenue Laws. Hausman, who was charged by Information on May 29, 2019 and pled guilty on September 12, 2019, was also ordered to pay $448,794 in restitution to the Internal Revenue Service. IRS-Criminal Investigation joined in making this announcement.
According to the filed information and the stipulated facts in the plea agreement, Hausman was a general contractor who specialized in concrete and framing work with a more recent focus on large commercial jobs, including hotels and apartment complexes. Since 1999, Hausman has filed only three U.S. Individual Income Tax Returns. For several years in which Hausman did not file tax returns, the IRS filed substitute returns for him, resulting in a tax due and owing to the federal government of $199,810.
In 2010, the IRS initiated collection activity for Hausman’s outstanding tax liabilities. When the IRS attempted to collect the taxes owed, the defendant began preventing and impeding the IRS from their tax collection and assessment efforts through various methods, including the submission of false statements to the IRS wherein he failed to disclose all of his assets, filing a false Form 1040 tax return failing to report all of his income, failing to file personal tax returns for multiple years in which he received taxable income, and failing to file corporate tax returns for his business Wyoming Framers Inc.
In addition to these acts taken by Hausman to thwart the IRS, Hausman purposefully kept his assets out of the reach of IRS by operating his business in cash. Hausman admitted to investigators that he did not want to leave his money in the bank because he knew that it would be taken by the IRS. From January 2013 through June 2018, Hausman made cash withdrawals totaling $6,605,586.
“Interfering with the administration of the IRS is a crime, and when you don’t pay, you face financial penalties and prison time,” said U.S. Attorney Jason Dunn. “We all must pay our part. That didn’t happen here, and the defendant will suffer as a result.”
“The law is clear on the issue of taxable income and who is required to file and pay taxes: there is no gray area on the subject,” said Andy Tsui, IRS Criminal Investigation Special Agent in Charge. “The true victims in tax fraud cases are the honest taxpayers who timely and accurately file their tax returns each year. This sentence shows IRS-Criminal Investigation is working hard to make sure all taxpayers file and pay their fair share of taxes.”
This case was investigated by the Internal Revenue Service—Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Tim R. Neff.
Denver Woman Sentenced to Serve 15 Years in Federal Prison After Selling Heroin That Resulted in Overdose DeathRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Ariel Nicole Walker, age 31 of Denver, Colorado was sentenced today by U.S. District Court Judge R. Brooke Jackson to serve 180 months (15 years) in federal prison for distribution of heroin resulting in death. Following her prison sentence, Walker will serve five years of supervised release. She appeared at the sentencing hearing in custody, and was remanded to the custody of the U.S. Marshals Service at the hearing’s conclusion. The FBI joined in today’s announcement.
According to the facts contained in Walker’s plea agreement, on May 31, 2018, Walker, an individual with the initials E.N., and an individual with the initials C.T., drove to Westminster to buy heroin from Kayla Pagano, who was prosecuted separately in U.S. District Court. E.N. paid Walker approximately $80 to purchase the heroin and approximately $40 for arranging the drug deal. Walker then met with Pagano at a Circle K in Westminster where Pagano sold Walker approximately .20 grams of heroin and approximately .20 grams of methamphetamine. E.N. injected some of the heroin and then passed out. Police later found E.N.’s dead body dumped in an alley in Denver. The heroin which caused E.N.’s death was the heroin Walker purchased from Pagano outside the Circle K and then distributed to E.N. Pagano was subsequently charged with distribution of heroin and methamphetamine, and sentenced to 77 months in federal prison followed by four years of supervised release.
“Walker sold the drugs to an individual that died of an overdose and then dumped the body in an alley,” said U.S. Attorney Jason Dunn. “As we have said before, this office will continue to treat harshly those who deal drugs that kill people.”
"This was an entirely preventable tragedy," said Denver FBI Special Agent in Charge Dean Phillips. “We will not hesitate to investigate and seek prosecution for those who bring dangerous drugs to our streets."
This case was investigated by the Denver Police Department with assistance from the FBI Denver OCDETF Strike Force. The defendant was prosecuted by Assistant U.S. Attorney Peter McNeilly.
U.S. Attorney's Office Collects over $780 Million in Civil and Criminal Actions in Fiscal Year 2019Read the Press Release
DENVER – U.S. Attorney Jason R. Dunn announced today that the District of Colorado collected $781,336,222 in criminal and civil actions in Fiscal Year 2019. Of this amount, $7,222,012 was collected in criminal actions and $774,114,209 was collected in civil actions.
Additionally, the District of Colorado worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $36,027,598 in cases pursued jointly by these offices. Of this amount, $36,496 was collected in criminal actions and $35,991,102 was collected in civil actions.
“The United States Attorney’s Office has Assistant U.S. Attorneys and collection specialists who have done an outstanding job of collecting money due to the federal government and to victims during the 2018 fiscal year,” said U.S. Attorney Jason Dunn. “This office will continue its focus on these important collection efforts.”
Included in the civil collections was a settlement with HSBC in which HSBC paid $765 million to settle claims related to its securitization and sale of residential mortgage-backed securities (RMBS) between 2005 and 2007. Federally-insured financial institutions and others suffered major losses from investing in RMBS issued and sold by HSBC. Under the settlement, HSBC paid $765 million as a civil penalty pursuant to the Financial Institutions Reform, Recovery and Enforcement Act.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s office in Colorado, working with partner agencies and divisions, collected $7,058,761 in asset forfeiture actions in FY 2019. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Department of Justice Awards over $800,000 to the City of Aurora for Body Worn CamerasRead the Press Release
DENVER – United States Attorney Jason R. Dunn and the Department of Justice’s Office of Justice Programs announced that the Department of Justice has awarded funding of more than over $62 million to provide services designed to protect officers and improve overall public safety. OJP’s Bureau of Justice Assistance and National Institute of Justice awarded grants to law enforcement departments, local jurisdictions, and training, technical assistance and research organizations throughout the United States.
During this round of funding, the City of Aurora received $852,580 for the Department’s body worn cameras. In total, BJA awarded nearly $20.53 million to 82 law enforcement agencies under its Body- Worn Camera Policy and Implementation Program. Funding will enable grantees to improve their capacity to gather evidence and protect the safety of law enforcement officers and citizens.
“Body worn cameras are an important part of policing, both for officers and the public,” said U.S. Attorney Jason Dunn. “This grant will help make Aurora Police Department better and thus the people of Aurora safer.”
“The Office of Justice Programs stands proudly with the Attorney General and the President in our commitment to the 700,000 sworn law enforcement professionals who selflessly put their lives on the line to keep us all safe,” said OJP’s Principal Deputy Assistant Attorney General Katharine T. Sullivan. “Bulletproof vests, body-worn cameras, health and safety research—these resources will provide officers the training, equipment and strategies needed to enable them to do their jobs effectively and keep them safe from harm.”
The FBI’s official crime data for 2019 reflects a decrease in the number of law enforcement officers feloniously killed between 2018 and 2019 (43 killed through September 2018 and 32 killed as of Sept. 30, 2019). There was also a slight decrease in the number of law enforcement officers reported accidentally killed in 2019 (29) as compared to the same reporting period in 2018 (33).
Still, there were almost 60,000 assaults against officers in 2018, according to the latest data available from the FBI.
Nearly $23 million will support the training and implementation of law enforcement agencies’ body-worn camera programs. Another $21 million will reimburse jurisdictions for up to 50 percent of the cost of body armor vests, while over $14.8 million will support law enforcement safety and wellness programs, research and services.
In addition, over $3 million is allocated for research and evaluation of safety, health and wellness priorities. These investments include the development of ballistic vests, studies of in-vehicle safety and the evaluation of less-lethal technologies to increase police and public safety.
A full list of the awards, organized under specific grant programs and listed awardees by state, is available online at https://go.usa.gov/xpxd3.
Additional information about Fiscal Year 2019 grant awards made by the Office of Justice Programs can be found online at the OJP Awards Data webpage.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
Colorado Springs Gang Member Sentenced to over 7 Years in Federal Prison for Being A Felon in Possession of A Firearm and AmmunitionRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Perry Wayne Suggs, Jr., age 33, of Colorado Springs, Colorado was sentenced today by U.S. District Court Judge William J. Martinez to serve 90 months (7.5 years) in federal prison, followed by 3 years on supervised release for being a felon in possession of a firearm and ammunition. Suggs appeared at the sentencing hearing in custody, and was remanded at its conclusion. ATF Denver Division joined in today’s announcement.
According to court documents and evidence presented at trial, at approximately 6:30 p.m. on January 3, 2018, Colorado Springs Police Officers were dispatched to a “shots fired” call where witnesses stated that a man in a BMW fired at a pedestrian crossing the street. Officers interviewed a mother and daughter who had witnessed the shooting. They provided the make and model of the car, as well as its license plate number, to law enforcement. The pedestrian was legally crossing an intersection when an individual in a black BMW engaged in an altercation with the pedestrian. The pedestrian had nothing in his hands and was several feet from the BMW. The driver of the vehicle pointed a firearm at the pedestrian’s legs, fired, and then fled the scene. A witness took a picture of the car’s license plate and identified the shell casing in the intersection, which was retrieved by the officers.
The victim also called 911 and was interviewed by the police officers. Based on the victim’s information as well as that of other witnesses, officers learned that the black BMW was registered to Perry Suggs, Jr., the defendant, who lived in Colorado Springs. It was determined that Suggs was a member of the Gangster Disciples street gang and had at least one felony conviction. It is against federal law for felons to possess firearms.
Officers executed search warrants at Suggs’ residence and on his BMW. While they were executing these search warrants, officers observed two firearms in plain view inside a vehicle parked at the defendant’s residence, including a black handgun and a black semi-automatic rifle. Officers then secured another search warrant on that vehicle and recovered a Glock handgun and an AR-15 style rifle, as well as ammunition. A test using the NIBIN database (National Integrated Ballistic Information Network) as well as a full forensic examination confirmed that the Glock recovered by officers matched the shell casings found at the scene.
“We are using modern technology and science, coupled with stiff federal penalties, to help rid communities of violent gun crime and gangs,” said U.S. Attorney Jason Dunn. “We will continue to offer our help to law enforcement and stand ready to assist anytime they ask.”
“The Colorado Springs Police Department, NIBIN, and observant members of the community are the reason this investigation was a success,” said ATF Denver Division Acting Special Agent in Charge Doak Dyer. “ATF, along with our law enforcement partners, will use every resource available to protect our communities from violent crime.”
This matter was investigated by the Colorado Springs Police Department and the ATF with the assistance of the Colorado Springs Metro Crime Lab. The defendant was prosecuted by Assistant U.S. Attorneys Emily Treaster and Hetal J. Doshi.
NIBIN is a national database of digital images of spent bullets and cartridge cases that were found at crime scenes or test-fired from confiscated weapons. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) manages the system and provides the equipment to crime labs around the country.
Ute Mountain Ute Man Sentenced to over 23 Years in Federal Prison for Two Violent CrimesRead the Press Release
DURANGO – United States Attorney Jason R. Dunn announced that Wambli Mills, age 23, of Towaoc, Colorado, was sentenced by U.S. District Court Judge Robert E. Blackburn for convictions in two separate cases, to serve, combined, over 23 years (278 months) in federal prison, followed by 7 years on supervised release. Mills appeared at the sentencing hearing in custody, and was remanded at its conclusion. A federal jury found Mills guilty of aggravated sexual assault following a week-long trial before Judge Blackburn on July 18, 2019, in case 18-cr-00415. Separately, Mills pled guilty to assault resulting in serious bodily injury of a federal police officer on September 27, 2019, before Magistrate Judge James Candelaria.
In the first case Mills was sentenced to 200 months in federal prison following an indictment by a federal grand jury, for one count of Sexual Abuse of an Incapable Victim and one count of Aggravated Sexual Abuse within the exterior boundaries of the Ute Mountain Ute Indian Reservation. According to court documents, as well as facts presented during trial and sentencing, Mills anally raped the victim, who was then able to escape and report the incident to the police. Law enforcement located Mills hiding in a nearby field with the victim’s leggings wrapped around his neck and the victim’s underwear on his person. DNA testing conducted by the FBI showed the victim’s DNA on the interior of Mills’ underwear.
In the second case Mills was sentenced to 78 months in federal prison after he and his brother, Wendell Mills, Jr., were indicted by a federal grand jury, for attempted murder and assault charges. According to court documents, as well as facts presented during sentencing, on April 8, 2018, Mills and his brother tackled a Bureau of Indian Affairs Police Officer who was attempting to effectuate an arrest in Towaoc, Colorado, on the Ute Mountain Ute Indian Reservation. While on the ground, Mills attempted to choke the officer while yelling “goodnight officer!” During the struggle, Mills’ brother grabbed the officer’s holstered pistol, causing the gun to discharge into the officer’s leg. As Mills held the officer down, Mills’ brother attempted to murder the officer by aiming what he believed to be a loaded gun at the officer’s head and pulling the trigger several times. A bystander intervened long enough for the officer to deploy his taser weapon and subdue Mills and his brother. Wendell Mills, Jr. was previously sentenced on June 3, 2019, to 121 months imprisonment by Judge Blackburn.
“Wambli Mills has twice demonstrated that he is a significant danger to the Ute Mountain Ute community,” said U.S. Attorney Jason Dunn. “As these sentences show, our office is committed to holding violent offenders in Indian Country accountable for their crimes.”
"The conduct in this case indicates a blatant disregard for the safety of those in our community," said FBI Denver Special Agent in Charge Dean Phillips. "The FBI and our partners are committed to pursuing and bringing justice to those who commit such egregious acts of violence."
These case were investigated by the Bureau of Indian Affairs and the Federal Bureau of Investigation. The defendant was prosecuted by Assistant U.S. Attorneys Jeff Graves, R. Josh Player, and Peter McNeilly.
Ignacio Woman Sentenced to 14 Years in Federal Prison for DUI MurderRead the Press Release
DURANGO – United States Attorney Jason R. Dunn announced that Twyla Casados, age 34, of Ignacio, Colorado, was sentenced today by U.S. District Court Judge Robert E. Blackburn to serve 14 years (168 months) in federal prison, followed by 5 years on supervised release, for murder in the second degree. Casados appeared at the sentencing hearing in custody, and was remanded at its conclusion.
Casados was indicted by a federal grand jury on January 4, 2019 on a charge of murder in the second degree. According to court documents, as well as facts presented during trial and sentencing, on December 18, 2018, Casados drank to intoxication before taking the wheel of a Chevrolet Suburban with several of her children in the car. At approximately 5:30 p.m. near Ignacio, Colorado, Casados veered over a median turn lane into oncoming traffic. Casados’ Suburban crashed into another car, killing the driver instantly.
Prior to the crash, Casados had a lengthy history of alcohol-related offenses, including three convictions for D.U.I. (one of which resulted in serious injuries) and an alcohol-related child abuse conviction. Casados had received extensive treatment and supervision, none of which deterred her from drinking and driving on January 4, 2019. As part of the plea agreement, Casados specifically admitted that she was aware that her actions of driving under the influence posed a serious risk of death or serious bodily injury to herself or others, but stated that she did not care.
“Driving under the influence can be deadly,” said U.S. Attorney Jason Dunn. “The defendant killed another person as a result of her drunk driving. She will have 14 years in federal prison to reflect on that fact.”
According to the National Highway Traffic Safety Administration, approximately one person dies in the United States every 50 minutes in a crash involving an alcohol impaired driver.[1]
This case was investigated by the Southern Ute Police Department. The defendant was prosecuted by Assistant U.S. Attorney Jeff Graves.
[1] NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION, TRAFFIC SAFETY FACTS 2016 DATA: ALCOHOLIMPAIRED DRIVING (2017), available at https://crashstats.nhtsa.dot.gov/Api/Public/ViewPublication/812450.
Gunman Sentenced to 16 Years in Federal Prison for Drive-By Shooting on Southern Ute Indian ReservationRead the Press Release
DURANGO – United States Attorney Jason R. Dunn announced that Antonio Castro, age 24, of Ignacio, Colorado, was sentenced by U.S. District Court Judge Robert E. Blackburn to serve 16 years (192 months) in federal prison, followed by 3 years on supervised release, for assault with the intent to commit murder and discharge of a firearm in furtherance of a crime of violence. Castro appeared at the sentencing hearing in custody, and was remanded at its conclusion.
Castro was indicted by a federal grand jury on July 9, 2018, on numerous federal felonies related to a drive-by shooting on June 6, 2018 near Ignacio, Colorado, on the Southern Ute Indian Reservation. According to facts presented during sentencing, Castro was in the driver seat of a van when he fired six shots from a handgun at an unarmed man standing in the street. Five of the six shots missed, but one shot struck the man’s elbow, causing significant injuries. As the victim lay bleeding in the street, Castro sped away in the van and later hid in the shower of a nearby friend’s house before being apprehended by officers with the Southern Ute Police Department. At the time of the shooting, Castro was on parole from a state felony burglary conviction out of Alamosa County, Colorado.
“Antonio Castro attempted to kill an unarmed man and flee the scene of the crime,” said U.S. Attorney Jason Dunn. “Thanks to the quick work of our tribal law enforcement partners and prosecutors from my office, Castro will spend significant time in federal prison.”
"Today's sentencing should send a strong message that the FBI will hold those who threaten the safety of our communities accountable for their actions," said FBI Denver Special Agent in Charge Dean Phillips. "Thanks to the efforts of our investigators and law enforcement partners, Antonio Castro will now face the consequences of his actions."
This case were investigated by the Southern Ute Police Department, with assistance of the Federal Bureau of Investigation. The defendant was prosecuted by Assistant U.S. Attorney Jeff Graves.
Robert Dear Indicted by Federal Grand Jury for 2015 Planned Parenthood Clinic ShootingRead the Press Release
Assistant Attorney General Eric Dreiband and U.S. Attorney Jason R. Dunn for the District of Colorado announced today that a federal grand jury in Denver has returned a 68-count indictment charging Robert Lewis Dear Jr., 61, with crimes related to the Nov. 27, 2015, shooting at the Planned Parenthood clinic in Colorado Springs, Colorado, where three people died, including a police officer. Eight others were wounded, including four police officers. Dear was taken into federal custody early this morning at the State Mental Hospital in Pueblo, Colorado. The defendant is scheduled to appear before U.S. Magistrate Judge Nina Y. Wang in Denver at 2:00 p.m. for an initial appearance, where he will be advised of his rights and the charges pending against him.
According to facts contained in the indictment, on Nov. 27, 2015, Dear traveled to the Planned Parenthood clinic intending to wage “war” because the clinic offered abortion services. Dear had with him four SKS rifles, five handguns, two additional rifles, a shotgun, more than 500 rounds of ammunition, as well as propane tanks. Dear first shot at people parked next to his truck, killing one and seriously injuring the other two. He then repeatedly shot at three additional people who were in various locations in front of the clinic, killing one and injuring another.
Dear then forced his way into the clinic by shooting through a door to the side of the main entrance. At the time, 27 healthcare providers, employees, patients, and companions were in the clinic and hid in various rooms until they were rescued by law enforcement. During his attack, Dear shot one of these civilians when a bullet he fired went through the wall and into the room where the individual was hiding.
After forcing his way into the clinic, Dear engaged in an approximately five-hour standoff with officials from several law enforcement and public safety agencies, including the Colorado Springs Police Department (CSPD), El Paso County Sheriff’s Office (EPSO), University of Colorado -- Colorado Springs Campus Police (UCCS), and the Colorado Springs Fire Department. Dear repeatedly shot at the firefighters and law enforcement officers, killing one officer and injuring four more.
The defendant fired approximately 198 bullets during the attack. Dear also placed a propane tank in the parking lot and when a law enforcement tactical vehicle was near the propane tank, Dear shot the tank in an attempt to create an explosion.
Dear was ultimately arrested and was subsequently charged in state court with first-degree murder. Subsequent court-ordered mental competency evaluations determined Dear was not competent to proceed at the time of those evaluations. He has remained in a state mental hospital in Pueblo, Colorado, since then.
Dear faces 65 counts of violating the Freedom of Access to Clinic Entrances Act (the FACE Act -- 18 USC 248(a)(1) and (b)) and three counts of use of a firearm during a crime of violence resulting in death where the killing is a murder. If convicted, Dear faces a maximum penalty up to and including death. In the absence of death, he faces up to life imprisonment.
No decision has been made on whether to seek the death penalty in this case. The department will follow the usual rigorous protocol to thoroughly consider all factual and legal issues relevant to that decision, which will necessarily involve consultation with the counsel for the defendant. In addition, consultation with the victims’ families is an important part of this decision making process and no decision will be made before conferring with them. This investigation was led by the CSPD with the assistance of the FBI, ATF, EPSO, and the UCCS. The state prosecution was handled by the District Attorney for the 4th Judicial District, Dan May.
Dear is being prosecuted by Assistant U.S. Attorneys Pegeen Rhyne and Rajiv Mohan along with Department of Justice Civil Rights Division Trial Attorney Mary Hahn. The defendant is presumed innocent unless and until proven guilty in a court of law.
Robert Dear Indicted by Federal Grand Jury for 2015 Planned Parenthood Clinic ShootingRead the Press Release
DENVER – United States Attorney Jason R. Dunn and Assistant Attorney General Eric Dreiband announced today that a federal grand jury in Denver has returned a 68-count indictment charging Robert Lewis Dear, Jr., age 61, with crimes related to the November 27, 2015, shooting at the Planned Parenthood clinic in Colorado Springs where three people died, including a police officer. Eight others were wounded, including four police officers. Dear was taken into federal custody early this morning at the State Mental Hospital in Pueblo, Colorado. The defendant is scheduled to appear before U.S. Magistrate Judge Nina Y. Wang in Denver at 2:00 p.m. for an initial appearance, where he will be advised of his rights and the charges pending against him.
According to facts contained in the indictment, on November 27, 2015, Robert Dear traveled to the Planned Parenthood clinic intending to wage “war” because the clinic offered abortion services. Dear had with him four SKS rifles, five handguns, two additional rifles, a shotgun, more than 500 rounds of ammunition, as well as propane tanks. Dear first shot at people parked next to his truck, killing one and seriously injuring the other two. He then repeatedly shot at three additional people who were in various locations in front of the clinic, killing one and injuring another.
Dear then forced his way into the clinic by shooting through a door to the side of the main entrance. At the time, twenty-seven healthcare providers, employees, patients, and companions were in the clinic and hid in various rooms until they were rescued by law enforcement. During his attack, Dear shot one of these civilians when a bullet he fired went through the wall and into the room where the individual was hiding.
After forcing his way into the clinic, Dear engaged in an approximately five-hour standoff with officials from several law enforcement and public safety agencies, including the Colorado Springs Police Department (“CSPD”), El Paso County Sheriff’s Office (“EPSO”), University of Colorado -- Colorado Springs Campus Police (“UCCS”), and the Colorado Springs Fire Department. Dear repeatedly shot at the firefighters and law enforcement officers, killing one officer and injuring four more.
The defendant fired approximately 198 bullets during the attack. Dear also placed a propane tank in the parking lot and when a law enforcement tactical vehicle was near the propane tank, Dear shot the tank in an attempt to create an explosion.
Dear was ultimately arrested and was subsequently charged in state court with first-degree murder. Subsequent court-ordered mental competency evaluations determined Dear was not competent to proceed at the time of those evaluations. He has remained in a state mental hospital in Pueblo, Colorado since then.
“The dozens of victims of this heinous act, as well as the Colorado Springs community itself, deserve justice,” said U.S. Attorney Jason Dunn. “After four years of lengthy delays in state court, and in consultation with the 4th Judicial District Attorney and victims, this office made the decision to charge Mr. Dear.”
Dear faces 65 counts of violating the Freedom of Access to Clinic Entrances Act (the FACE Act -- 18 USC 248(a)(1) and (b)) and three counts of use of a firearm during a crime of violence resulting in death where the killing is a murder. If convicted, Dear faces a maximum penalty up to and including death. In the absence of death, he faces a minimum of 10 years and up to life imprisonment.
No decision has been made on whether to seek the death penalty in this case. The Department will follow the usual rigorous protocol to thoroughly consider all factual and legal issues relevant to that decision, which will necessarily involve consultation with the counsel for the defendant. In addition, consultation with the victims’ families is an important part of this decision making process and no decision will be made before conferring with them.
This investigation was led by the Colorado Springs Police Department (“CSPD”) with the assistance of the FBI, ATF, El Paso County Sheriff’s Office (“EPSO”), and the University of Colorado -- Colorado Springs Campus Police (“UCCS”). The state prosecution was handled by the District Attorney for the 4th Judicial District, Dan May.
Dear is being prosecuted by Assistant U.S. Attorneys Pegeen Rhyne and Rajiv Mohan along with Department of Justice Civil Rights Division Trial Attorney Mary Hahn. The defendant is presumed innocent unless and until proven guilty in a court of law.
Q&A Regarding Robert Dear Prosecution
Q: Why are the charges being filed now?
A: Given that the incident happened over 4 years ago, that the state case has failed to advance, the applicable 5 year statute of limitations under the FACE Act, and in consideration of the views of both the 4th Judicial District Attorney and victims, the decision was made to file charges now.
Q: Why has this case not yet gone to trial at the state level?
A: Since May of 2016, Dear has been deemed incompetent by the state District Court in El Paso County to decide whether he can represent himself, as he has requested.
Q: Where will Dear be held in federal custody?
A: Assuming that he is detained following his detention hearing, the U.S. Marshals will make that determination.
Q: Where was Dear being held prior to this?
A: He was being held at the Colorado Mental Health Institute at Pueblo.
Q: How was he transferred into federal custody?
A: Federal agents took custody of Dear at the CMHIP on Dec. 9th and drove him to Denver, where he appeared in federal court.
Q: Why do the charges not include homicide, as was charged by the state?
A: Federal law does not have an applicable homicide offense.
Q: When were the victims informed that the DOJ was taking over the case?
A: They were told after Dear was arrested and before he made his initial appearance. A victim’s advocate in the USA’s office is in touch with them.
Q: What is happening to the state charges?
A: The state charges remain pending.
Denver Jury Finds Husband and Wife Guilty of Large-Scale Black Market Marijuana GrowRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced today that Huanyu Yan, age 54, and wife You Lan Xiang, age 50, both of Aurora, Colorado, were found guilty of marijuana cultivation following a four-day jury trial before U.S. District Court Judge Raymond P. Moore. Both defendants appeared at the trial free on bond. After the guilty verdicts were handed down both defendants were taken into custody and were remanded pending sentencing, which is scheduled for February 24, 2020.
According to court documents as well as evidence presented at trial, on October 10, 2018, the Drug Enforcement Administration, North Metro Task Force, and the Aurora Police Department executed a federal search warrant at 20050 East Doane Drive in Aurora, Colorado. A search of the house revealed a large-scale illicit marijuana grow operation in the basement of the house, with 878 marijuana plants. The basement also contained 9.72 pounds of finished marijuana product. According to testimony at trial, the yield of all the plants in the basement would have been enough to create approximately 150,000 marijuana joints. Both defendants were convicted of 1) conspiracy to manufacture and possess with intent to distribute 100 or more marijuana plants; 2) possessing with intent to distribute 100 or more marijuana plants; and 3) using and maintaining a drug-involved premises. They now face mandatory minimum 5-year sentences.
“This is an important verdict for the people of Colorado, who’ve been overrun by black market marijuana,” said U.S. Attorney Jason Dunn. “This verdict sends a strong signal to anyone growing black market marijuana in Colorado that they can’t hide.”
This case was investigated by the DEA, North Metro Task Force and the Aurora Police Department. The defendants were prosecuted by Assistant U.S. Attorneys Aaron Teitelbaum and Peter McNeilly.
Justice Department Announces More Than $376 Million in Awards to Promote Public SafetyRead the Press Release
DENVER – The Department of Justice announced today that it has awarded more than $376 million in grant funding to enhance state, local and tribal law enforcement operations and reinforce public safety efforts in jurisdictions across the United States. $357,459 will support public safety activities in the District of Colorado. The awards were made by the Department’s Office of Justice Programs.
“Crime and violence hold families, friends and neighborhoods hostage, and they rip communities apart,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “These programs help restore the health and safety of crime-ravaged communities by supporting prevention activities, aiding in the apprehension and prosecution of perpetrators, facilitating appropriate sentencing and adjudication, and providing communities and their residents the means for recovery and healing.”
The awards announced today support an array of crime-fighting initiatives, including the quarter-billion dollar Edward Byrne Justice Assistance Grants Program, which funds public safety efforts in 929 state, local and tribal jurisdictions. Funding also supports sex offender registration and notification, law enforcement-based victim services, the testing of sexual assault kits, and programs designed to address youth with sexual behavioral problems. Other awards will focus on wrongful convictions, intellectual property enforcement, innovative prosecution strategies and the safety and effectiveness of corrections systems.
“Prosecuting violent crime is one of the top priorities of the U.S. Attorney’s Office,” said U.S. Attorney Jason Dunn. “These grant funds will go to the Denver District Attorney to support their efforts to tackle violent crime. We support them in these efforts, both financially and in prosecutorial partnership.”
The following awards were made to organizations in the District of Colorado:
- Denver District Attorney’s Office: $357,459 to develop effective strategies and programs to address and prosecute individuals who commit violent crime. Prosecutors are leaders within the criminal justice system who possess an enormous responsibility within the criminal justice system. Accordingly, they are well positioned to bring the police, the community, and local agencies together to combat violent crime in their jurisdictions. The Innovative Prosecution Solutions Program encourages prosecutors to use data in the development of their violent crime strategies and programs. As such, it builds upon analysis-driven, promising practices and evidence-based prosecution by encouraging state, local, and tribal prosecutorial agencies to develop effective, economical, and innovative responses to crime within their jurisdictions. Applicants will identify a problem to be addressed and may enlist a research partner to help evaluate the effectiveness of their Innovative Prosecution Solutions. The Denver District Attorney's Office proposes to work with the Denver Police Department to create a joint digital evidence task force to improve the turnaround time of evidence processing in violent crime investigations. The project includes training and equipment purchases.
For more information about OJP awards, visit the OJP Awards Data webpage.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training and technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
Grand Junction Weapons Manufacturer CAPCO to Pay over $1 Million to Resolve Allegations of Fraud as to Grenade Launchers It Supplied to the U.S. ArmyRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Capco, LLC (Capco), a manufacturer based in Grand Junction, Colorado, will pay the United States over $1 million to resolve civil allegations that it defrauded the United States Army in connection with contracts to manufacture weapons.
The allegations relate to grenade launchers, known as M320s, that Capco manufactured in Grand Junction and shipped to the Army. The United States conducted a civil investigation, with Capco’s cooperation, into whether Capco supplied the Army with weapons that did not meet contract specifications.
According to the United States, Capco knowingly shipped M320s with barrels that did not meet the contract specifications. Despite this knowledge, Capco certified to the Army that each shipment conformed to contract specifications. Also, as to two shipments, Capco had reason to know that it had used the incorrect steel in manufacturing the firing pins for the M320s. While Capco conducted an internal investigation into the potential use of incorrect steel, this investigation was inadequate and Capco did not disclose this matter to the Army. The United States concluded that this conduct, which involved M320s shipments from July, 2016 through March, 2018, gave rise to civil liability under the False Claims Act.
The United States was alerted to the problems in Capco’s production process by James Cole, who formerly worked as a quality engineer at Capco. Under the False Claims Act, private citizens with knowledge of a fraud against the United States may present those allegations to the government by bringing a lawsuit on behalf of the United States under seal. If the government’s investigation substantiates those allegations and the United States obtains a monetary recovery under the False Claims Act, the private citizen may share in that monetary recovery. Mr. Cole filed such a lawsuit here under the False Claims Act. Of the $1,025,429 settlement amount from Capco, Mr. Cole will recover approximately $235,000.
“We entrust our defense contractors to manufacture equipment of the highest quality for the men and women who serve our country in the U.S. Armed Forces,” said United States Attorney Jason Dunn. “Any breakdown in the production process must be swiftly and honestly addressed, and we will hold contractors fully responsible for fraudulently covering up production problems.”
“Not conforming to contract requirements that ultimately have a direct impact on the success in combat of our brave men and women in uniform is incredibly unconscionable,” said Director Frank Robey of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit. “Thanks to the efforts of our special agents and our other law enforcement partners, today’s settlement is possible.”
“Identifying and investigating allegations of procurement fraud, specifically poor quality or non-conforming products, is at the heart of the Department of Defense Office of Inspector General’s (DoDIG) mission,” said Michael Mentavlos, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Southwest Field Office. “DCIS, along with or law enforcement partners will continue to identify and investigate those individuals and companies that attempt to defraud the Department of Defense and put our warfighters at risk.”
The claims settled by this civil agreement are allegations. In entering into this civil settlement, Capco did not admit to any liability.
The United States Attorney’s Office thanks the U.S. Army Criminal Investigation Command and DCIS for their diligent work on this investigation. The United States was represented in this matter by Assistant United States Attorney Andrea Wang.
Mexican National Living in Centennial Sentenced to Federal Prison for Possession with Intent to Distribute FentanylRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Osvaldo Lugo-Escalante, age 25, of Sinaloa, Mexico, was sentenced today by U.S. District Court Judge Daniel D. Domenico to serve 72 months (6 years) in federal prison for possession with intent to distribute nearly 1,400 grams of fentanyl. He was also ordered to forfeit over $40,000 in cash. Lugo-Escalante appeared at the sentencing hearing in custody, and was remanded at its conclusion.
According to the stipulated facts contained in the plea agreement, in the Spring of 2019 investigators with the Denver Police Department (DPD) Vice/Narcotics division and special agents with Homeland Security Investigations (HSI) determined Lugo-Escalante was actively involved in drug distribution activities in the Denver metro area. On June 26, 2019, a confidential informant contacted the defendant to purchase narcotics. After the call the defendant left his apartment located in Centennial, Colorado, and got into his car. DPD uniform officers then initiated a traffic stop on the vehicle as it pulled away from the apartment. During the subsequent search of the vehicle officers found a Metro PCS box in the driver’s side door compartment, which contained; 1) a clear plastic bag containing 2,048 pills of fentanyl (222.655 grams); 2) a clear plastic bag containing 27.709 grams of cocaine; and 3) a clear plastic bag containing 62.405 grams of heroin.
Later that day officers and agents searched Lugo-Escalante’s apartment. Inside they discovered additional controlled substances, including; 1) several clear plastic bags containing 3,418 pills of fentanyl (391.947 grams); 2) several clear plastic bags containing 6,806 pills of fentanyl (745.091 grams); 3) 501.6 grams of heroin packaged in clear plastic wrap; 4) 250.798 grams of heroin packaged in clear plastic wrap; 5) 506.966 grams of heroin packaged in clear plastic wrap; and 6) several clear plastic bags containing 753.620 grams of cocaine. Investigators also found drug ledgers, a scale, and several bundles of U.S. currency totaling $41,532.00.
In total, investigators seized 12,272 pills of fentanyl (1,359.693 grams), 1,321.769 grams of heroin, and 781.329 grams of cocaine from the defendant’s vehicle and apartment.
Lugo-Escalante was indicted by a federal grand jury in Denver on July 11, 2019. He pled guilty before Judge Domenico on September 3, 2019. He was sentenced today, December 2, 2019.
“Fentanyl is a dangerous drug and can be fatal even in tiny amounts,” said U.S. Attorney Jason Dunn. “Denver Police and HSI were able to remove a substantial amount of fentanyl and other drugs from the streets of Metro Denver, likely saving countless lives.”
“We continue to fight against the devastating impact that opioids have on our communities,” said Steven Cagen, Special Agent in Charge, HSI Denver. “HSI and our local partners, with support from the U.S. Attorney’s office, remain committed to the fight against dealers of fentanyl and other dangerous drugs that have taken too many lives across Colorado.”
This case was investigated by the Denver Police Department and the HSI Denver. The defendant was prosecuted by Assistant U.S. Attorney Conor A. Flanigan.
Wheat Ridge Felon Sentenced to Nearly 8 Years in Federal Prison for Gun and Drug PossessionRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Aaron Michael Kendall, age 46, of Wheat Ridge, Colorado, was sentenced this morning by U.S. District Court Judge William J. Martinez to serve 95 months (nearly 8 years) in federal prison for convictions of being a felon in possession of a firearm and possession with intent to distribute heroin. Following his prison sentence, Kendall will spend 3 years on supervised release. The defendant appeared at the sentencing hearing in custody, and was remanded at its conclusion.
According to the stipulated facts contained in the plea agreement, on January 31, 2017, Wheat Ridge Police officers stopped the defendant for suspicion of driving a stolen vehicle. An inventory search led officers to find approximately 15 grams of heroin, sorted out into four packages. They also found a 9mm pistol hidden in a compartment of the vehicle. A digital scale, seven cell phones, and baggies and a counterfeit $20 bill were also recovered. Kendall was a multiple time convicted felon – including a distribution offense associated with the 211 Crew – a Colorado prison gang. The firearm had been reported stolen out of Westminster, Colorado in July 2016.
“The federal felon-in-possession statute is a significant tool in allowing us to help local law enforcement get bad actors out of their communities,” said U.S. Attorney Jason Dunn. “Mr. Kendall apparently didn’t learn his lesson from his previous convictions. He’ll pay for that with nearly eight more years in federal prison.”
Kendall was first indicted by a federal grand jury on July 12, 2017. He pleaded guilty before U.S. District Court Judge Martinez on April 15, 2019. He was sentenced on November 27, 2019.
The defendant was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wheat Ridge Police Department. Kendall was prosecuted by Assistant U.S. Attorney Kurt Bohn.
Two Men Sentenced to Federal Prison for Buying and Selling over 50 Kilograms of Cocaine on the DarknetRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Timothy Howell, age 46, was sentenced by U.S. District Court Judge William J. Martinez on November 22, 2019, to 66 months imprisonment and 4 years of supervised release for conspiracy to distribute cocaine, money laundering, and aggravated identity theft. Howell’s co-defendant, Cavin Mower, age 44, was sentenced by Judge Martinez on September 5, 2019, to 50 months imprisonment and 3 years of supervised release for conspiracy to distribute cocaine and money laundering.
According to the stipulated facts contained in the plea agreements, for over a year, Howell and Mower received kilogram-quantities of cocaine from a darknet cocaine supplier and then re-sold that cocaine to their own customers in Colorado and across the country via their own darknet vendor account. Together, Howell and Mower shipped nearly 50 kilograms of cocaine to their customers through the U.S. Mail, for which they were paid in bitcoin. In addition, during this criminal activity, Howell stole the identity of another person and used it to, among other things, gain access to a TSA-controlled area of an international airport to board a flight to Denver.
Howell and Mower laundered the bitcoin proceeds in primarily two ways. First, they used a website that allowed them to purchase gift cards that could be used to buy goods and services. Second, they exchanged bitcoin for cash using the services of an international money transfer company.
Howell and Mower were both arrested on July 19, 2018 and have been in custody.
“This case demonstrates that drug dealers can’t hide from the law, including on the darknet,” said U.S. Attorney Jason Dunn. “If you are, we will find you, prosecute you, and send you to federal prison.”
“Drug dealers believe advances in technology can hide their illicit dealings in the dark web and by using cryptocurrency to further their criminal activity,” said Steven Cagen, Special Agent in Charge, HSI Denver. “Today’s sentencing sends a warning to criminals that no matter how sophisticated they believe they are, we will find them and bring them to justice, and they can’t hide from us online.”
“Narcotics trafficking and money laundering through the dark web are an ever increasing method for criminal organizations,” said IRS Special Agent in Charge Andy Tsui. “Special Agents with IRS-Criminal Investigation are highly adept at disrupting the illegal financial activities individuals try to conceal through the dark web and will continue to work diligently to stop these criminals in their cyber tracks.”
“Postal Inspectors, especially here in Colorado, have been at the forefront of dark web investigations for years, bringing to justice those who use the U.S. mail to distribute illegal narcotics behind the dark net’s false veil of anonymity,” said Bill Hedrick, Inspector in Charge of the Denver Division of the U.S. Postal Inspection Service. “This sentence is a result of the hard work from our Postal Inspectors to bring these drug dealers to justice,” said Hedrick.
This case was investigated by the Denver Digital Currency and Darknet Working Group, comprised of agents from the U.S. Postal Inspection Service (USPIS), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the IRS-Criminal Investigations (IRS-CI). Other agencies assisting the working group included IRS-CI in Phoenix Arizona and USPIS and HSI in Nashville, Tennessee.
The defendants were prosecuted by Assistant U.S. Attorney Andrea Surratt.
Denver Developer Pleads Guilty to Arson in Conjunction with Grove Street FireRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Michael Marte, age 54, of Denver, pleaded guilty today before U.S. District Court Judge William J. Martinez to one count of arson in connection with the fire at 1920 and 1930 Grove Street. Marte appeared at the hearing in custody, and was remanded at the hearing's conclusion. He is scheduled to be sentenced by Judge Martinez on March 25, 2020, to an agreed upon mandatory 10 years in federal prison.
According to the stipulated facts contained in the plea agreement, starting in approximately May of 2017, the defendant was hired by an Australian real estate developer to oversee a substantial construction project in West Denver. The developer had purchased two residential lots for redevelopment on Grove Street. The project consisted of scrapping two single home residences and replacing them with two separate multi-unit buildings on each lot. Each building would consist of a three-story townhome, each with 7 units. Marte was paid an annual salary of $200,000 to supervise the construction. The project continued into early 2018, when both buildings were in the final phase, complete with roofing, siding, doors and windows. Interior finishing touches were still needed.
On May 10, 2018, the developer travelled to Denver from Australia for purposes of meeting with the developer and inspecting the progress of the project. However, around 2:00 a.m. on May 10, 2018, while the developer was still on a plane to Denver, both buildings became engulfed in a fire which caused total destruction of both units. The loss was estimated at $4 million. The Denver Fire Department characterized the fire as a “three-alarm blaze” meaning it required approximately half of Denver’s Fire Department to extinguish it. They fought the fire for approximately 8 hours.
Denver Fire Investigators and ATF agents quickly suspected arson. One key piece of evidence was surveillance from a video doorbell camera, which was provided by a nearby resident. It showed a vehicle identical to the defendant’s driving into the area shortly before the blaze began. It also showed large billows of smoke and flames rising from the buildings. Another surveillance video showed a man of Marte’s description quickly walking away after the fire started. Investigators found clothes that had fire accelerant on them that were matched to the defendant through DNA.
During construction Marte bought an insurance policy for $4 million dollars. Shortly after the fire he quickly attempted to obtain the insurance money. Those attempts failed.
“Arson for profit or any other reason is a crime, and the defendant got caught red handed thanks to the great work of the ATF and Denver Fire Department,” said U.S. Attorney Jason Dunn. “Because of his conduct, he’ll have 10 years in federal prison to think about his actions. Thankfully no residents or fire fighters were hurt as a result of his selfish actions.”
“Arson is a crime of violence that will not be tolerated,” said Acting Special Agent in Charge Bradley Engelbert. “ATF’s partnership with the Denver Fire Department, whose work was instrumental in the success of this investigation, will continue to ensure the safety of our communities.”
This case was investigated by the Denver Division of the ATF and the Denver Fire Department. The defendant is being prosecuted by Assistant U.S. Attorney Tim Neff.
Southern Colorado Man Indicted on Federal Hate Crime and Explosives Charges for Plotting to Blow up SynagogueRead the Press Release
Assistant Attorney General Eric Dreiband for the Civil Rights Division and Assistant Attorney General John C. Demers for the National Security Division, U.S. Attorney Jason R. Dunn for the District of Colorado, and Special Agent in Charge Dean Phillips for the FBI Denver Division announced today that Richard Holzer, 27, of Pueblo, has been indicted by a federal grand jury in Denver for attempting to blow up a synagogue in Pueblo, Colorado.
The federal grand jury returned a three-count indictment. Count One charges Holzer with intentionally attempting to obstruct persons in the enjoyment of their free exercise of religious beliefs, through force and the use and attempted use of explosives and fire. This charge is the same as was charged in the original complaint filed on Monday, Nov. 4, 2019. Count Two charges Holzer with attempted arson, and Count Three charges Holzer with using fire or an explosive device to commit a felony offense.
Holzer is currently in federal custody. He is scheduled to appear before a U.S. Magistrate Judge on Monday, Nov. 25 where he will be advised of the charges contained in the indictment, and arraigned on the charges. If convicted, Holzer faces a maximum penalty of 50 years in prison.
Assistant United States Attorney Julia Martinez and Trial Attorney Michael J. Songer of the Civil Rights Division are prosecuting the case, with assistance from Counterterrorism Section Trial Attorney Erin Creegan of the Justice Department’s National Security Division. The FBI conducted the investigation with the assistance of the Pueblo Police Department and Pueblo County Sheriff’s Office.
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty in a court of law.
Richard Holzer, Pueblo Synagogue Bomb Suspect, Indicted by Federal Grand Jury with Charges AddedRead the Press Release
DENVER – U.S. Attorney Jason R. Dunn for the District of Colorado, Assistant Attorney General Eric Dreiband for the Civil Rights Division, Assistant Attorney General John C. Demers for the National Security Division, and Special Agent in Charge Dean Phillips for the FBI Denver Division announced today that Richard Holzer, age 27, of Pueblo, has been indicted by a federal grand jury in Denver for attempting to blow up a synagogue in Pueblo, Colorado.
The federal grand jury returned a three-count indictment. Count One charges Holzer with intentionally attempting to obstruct persons in the enjoyment of their free exercise of religious beliefs, through force and the use and attempted use of explosives and fire. This charge is the same as was charged in the original complaint filed on Monday, November 4, 2019. Count Two charges Holzer with attempted arson, and Count Three charges Holzer with using fire or an explosive device to commit a felony offense.
Holzer is currently in federal custody. He is scheduled to appear before U.S. Magistrate Judge Scott T. Varholak on Monday, November 25, 2019 at 10:00 a.m., where he will be advised of the charges contained in the indictment, and arraigned on those charges. If convicted, Holzer faces a maximum penalty of 50 years in prison.
Assistant United States Attorney Julia Martinez and Trial Attorney Michael J. Songer of the Civil Rights Division are prosecuting 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.
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty in a court of law.
Denver Gang Member Sentenced to over 15 Years in Federal Prison for Making and Selling Dozens of High Powered Guns, Including Machine Guns and SilencersRead the Press Release
DENVER – U.S. Attorney Jason Dunn today announced that Andres Jaquin Luna, III, age 47, of Denver, was sentenced today by Chief U.S. District Court Judge Philip A. Brimmer to serve 188 months (just under 16 years) in federal prison for possession of a machine gun and distribution and possession with intent to distribute 500 grams or more of methamphetamine. Luna appeared at today’s sentencing hearing in custody, and was remanded at its conclusion. His codefendant, Jose Eduardo Trujillo, was previously sentenced to serve 87 months in federal prison for similar conduct.
According to arguments in court and court documents, including the stipulated facts in defendant Luna’s plea agreement, ATF agents began investigating Luna in November 2017 after he told a confidential informant that he was a Sureno gang member recently released from federal prison and looking to sell cocaine. During the investigation, Luna sold 2 pounds of methamphetamine to investigators as well as firearms, including a stolen firearm. Luna began selling firearms without serial numbers, commonly called “Ghost Guns.”
The investigation revealed that his accomplice Jose Trujillo was making these guns. Luna and Trujillo repeatedly sold such firearms to the undercover agents, even after the agents told the men that firearms were being provided to Sinaloa cartel members. Luna and Trujillo also sold fully automatic firearms and tools that make semi-automatic rifles convert into automatic weapons. In total, Luna sold 45 guns to undercover ATF agents.
“Taking dozens of illegal high powered machine guns and rifles off the street has an immediate impact on violent crime,” said U.S. Attorney Jason Dunn. “More importantly, getting lengthy sentences for those who make and sell them will have a lasting impact of public safety in Colorado.”
“ATF is committed to keeping firearms, such as the ones in this case, out of the hands of those that would bring violence into our communities. We will continue use every resource available to ensure public safety,” said ATF Special Agent in Charge David Booth.
This case was investigated by the Denver ATF. The defendants were prosecuted by Assistant U.S. Attorneys Celeste Rangel and Kelly Churnet.
Tax Return Preparer Pleads Guilty to Obstructing the IRSRead the Press Release
DENVER – Gerardo Herrera, age 63, of Denver, Colorado pled guilty today before U.S. District Court Judge William J. Martinez to corruptly endeavoring to obstruct or impede the due administration of the Internal Revenue Code announced United States Attorney Jason R. Dunn and IRS – Criminal Investigation Special Agent in Charge Andy Tsui. Herrera’s sentencing is scheduled for April 1, 2020.
According to the Information and plea agreement, between January 2011 and May 2017, Herrera operated Lobo Multiservicios (LMS) in the Denver area assisting taxpayers submit personal income tax returns to the IRS. LMS catered primarily to Hispanic taxpayers and used local media to advertise its tax preparation services.
As part of the scheme, Herrera prepared and submitted or instructed other LMS employees to prepare and submit false tax returns electronically using LMS’ unique electronic filer information number (EFIN). On each occasion, Herrera provided the false information submitted to the IRS to ensure the taxpayer(s) would receive a refund from the IRS in an amount higher than they were entitled to claim if the tax return reflected truthful and accurate information.
The IRS obtained a permanent injunction against Herrera and LMS on January 7, 2016 barring Herrera and his businesses from preparing tax returns or assisting others in the preparation of tax returns. Approximately one month after obtaining the injunction, the IRS discovered Herrera had opened a new office and resumed preparing tax returns using new business names, including “Gabby Professional Service”, “Los Lobos Professional”, “FaroMultiservicios LLC” and “Lizeth Professional Service”. Throughout 2015, Herrera or his companies acting at his direction used other electronic filing identification numbers (EFIN) associated with N.V. without N.V.’s knowledge.
This case is being investigated by the Internal Revenue Service – Criminal Investigation. This case is being prosecuted by Assistant United States Attorney Jaime Pena.
Fugitive Sentenced for Fleeing to Avoid Serving Tax Fraud Prison SentenceRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Remijio Rafael Hau Chi, age 45, formerly of Littleton, Colorado was sentenced yesterday by Senior U.S. District Court Judge John L. Kane to serve 18 months in federal prison for fleeing the U.S. to avoid a jail sentence imposed in a previous tax fraud case. The 18 months’ imprisonment is consecutive to the tax fraud sentence.
According to the indictment and plea agreement in the previous tax fraud case, Hau Chi, along with his spouse, Wilma Hau, were sentenced by Judge Krieger on February 20, 2014 for conspiracy to make false and fraudulent claims to the government. As part of this conspiracy, Hau Chi participated in a scheme in which stolen taxpayer identifying information was used to submit fraudulent tax returns to the IRS claiming tax refunds. The investigation concluded that 138 false federal income tax returns were submitted to the IRS resulting in the issuance of $430,753 in fraudulent tax refunds. Chi used a significant portion of the refund proceeds for his personal benefit, including the purchase of a residence in Littleton and paying off the mortgage for said residence.
After Hau Chi was sentenced to 22 months in federal prison in the tax fraud case, the court allowed him to remain free on bond and report to the Federal Bureau of Prisons to serve his imprisonment once his wife completed her prison sentence. The Judgment entered against Hau Chi at the time of his sentence ordered that Hau Chi was required to notify the United States Attorney of any change of residence or mailing address within 30 days of his moving until he completed paying restitution as ordered by the court. Despite that condition, Hau Chi left his Littleton residence in March 2014 without notifying the United States Attorney, and absconded from supervision by the United States Probation Office, becoming a fugitive believed to be in Mexico. He was arrested in July 2018, when he traveled from Mexico to Canada, and was subsequently extradited back to the United States for service of his previously imposed tax fraud sentence and to face the new contempt charge that led to yesterday’s sentencing.
“Contempt is a serious crime, as you can see from this sentence,” said U.S. Attorney Jason Dunn. “Fleeing the country doesn’t work, it just prolongs the inevitable. The message is simple – if you’re wanted, turn yourself in.”
“Remigio Hau Chi thought he figured out a clever scheme to thwart the IRS, undermine the integrity of the U.S. legal system and steal from American taxpayers,” said IRS – Criminal Investigation Special Agent in Charge Andy Tsui. “This sentence highlights the seriousness of the defendant’s conduct and IRS – Criminal Investigation’s continued vigilance investigating and bringing to justice individuals who attempt to line their pockets with other people’s money.”
This case was investigated by Internal Revenue Service – Criminal Investigation.
This case is being prosecuted by Assistant United States Attorney Patricia Davies.
Former Westminster Police Officer Pleads Guilty to Sexually Assaulting an IndividualRead the Press Release
Curtis Arganbright, 42, a former Westminster Police Department (WPD) Officer, pleaded guilty today in federal court in Denver, Colorado, to one count of violating the civil rights of a female in his care whom he sexually assaulted.
According to court documents, Arganbright worked as a police officer for WPD in August 2017. While on duty in the early morning hours of Aug. 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. Arganbright admitted that his contact resulted in bodily injury to the victim. As part of the plea agreement, Arganbright agreed to never again seek employment as a police officer and to register as a sex offender.
Arganbright was originally charged in state court and ultimately pleaded guilty to unlawful sexual contact and official misconduct. He was then sentenced to 90 days in county jail.
“The Department of Justice will continue to vigorously prosecute law enforcement officers who abuse their authority and sexually assault vulnerable people in their care,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division.
“As federal prosecutors, our job is to ensure that justice is always served,” said U.S. Attorney Jason Dunn for the District of Colorado. “When we see an injustice, we will not hesitate to step in, particularly when it involves vulnerable people or those in positions of power.”
“The FBI takes color of law allegations of misconduct seriously and we will vigorously investigate any public official who willfully deprives those we serve of their constitutionally protected rights,” said FBI Denver Special Agent in Charge Dean Phillips. “Law enforcement officers at all levels are given tremendous authority and the abuse of that authority is detrimental to the safety of our community. The FBI is tremendously grateful for the cooperation from Broomfield and Westminster Police Departments.”
Arganbright faces a maximum penalty of up to 10 years’ imprisonment. A sentencing hearing is scheduled for March 11, 2020.
This case is being investigated by the Denver Division of the FBI. The Broomfield Police Department also provided substantial assistance throughout the investigation. It is being prosecuted by Assistant United States 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.
Former Westminster Police Officer Pleads Guilty to Sexually Assaulting Woman While on DutyRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Curtis Arganbright, age 42, a former Westminster Police Officer, pleaded guilty today in U.S. District Court in Denver to one count of violating the civil rights of a female in his care whom he sexually assaulted. The guilty plea was entered before U.S. District Court Judge William J. Martinez. Arganbright appeared at the hearing free on bond. Bond was continued pending sentencing, which is scheduled for March 11, 2020.
According to court documents, Arganbright worked as a police officer for Westminster Police Department 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 woman, Arganbright agreed to drive her home. During that transport, Arganbright pulled off the main road and sexually assaulted the victim. Arganbright admitted that his contact resulted in bodily injury to the victim. As part of the plea agreement, Arganbright agreed to never again seek employment as a police officer and to register as a sex offender.
Arganbright was originally charged in state court and ultimately pleaded guilty to unlawful sexual contact and official misconduct. He was then sentenced to 90 days in county jail.
“As federal prosecutors, our job is to ensure that justice is always served,” said U.S. Attorney Jason Dunn. “When we see an injustice, we will not hesitate to step in, particularly when it involves vulnerable people or those in positions of power.”
“The Department of Justice will continue to vigorously prosecute law enforcement officers who abuse their authority and sexually assault vulnerable people in their care,” said Assistant Attorney General Eric Dreiband.
“The FBI takes color of law allegations of misconduct seriously and we will vigorously investigate any public official who willfully deprives those we serve of their constitutionally protected rights,” said FBI Denver Special Agent in Charge Dean Phillips. “Law enforcement officers at all levels are given tremendous authority and the abuse of that authority is detrimental to the safety of our community. The FBI is tremendously grateful for the cooperation from Broomfield and Westminster Police Departments.”
Arganbright faces a maximum penalty of up to 10 years’ imprisonment.
This case is being investigated by the Denver Division of the FBI. The Broomfield Police Department also provided substantial assistance throughout the investigation. It is being prosecuted by Assistant United States 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.
Carbondale Man Sentenced to Federal Prison for Aggravated Identity TheftRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Bruce Alexander McIntyre, age 67, of Carbondale, Colorado was sentenced by U.S. District Court Judge William J. Martinez on November 15, 2019 to 24 months (2 years) imprisonment and 1 year of supervised release for Aggravated Identity Theft. The defendant appeared at the hearing in custody and was remanded at the hearing’s conclusion.
According to the stipulated facts contained in the plea agreement, McIntyre was a fugitive who traveled the world using a stolen identity for more than 25 years. In 1994, McIntyre was charged in the U.S. District Court for the District of Arizona with offenses involving money laundering and marijuana distribution, and he was released on bond. McIntyre absconded from that bond, bought stolen identity documents that belonged to another Arizona resident, and fled from the United States. Between 1994 and 2018, McIntyre traveled the world extensively buying art and antiques that he sold from a home in Canada, all under the stolen identity.
McIntyre returned to Carbondale in January 2017 and renewed a United States passport in the name of the stolen identity. In December 2018, the true identity holder sought a United States passport under the same identification that had been coopted by McIntyre. Because two different people claimed the same identifiers, the conflict was referred to the U.S. Department of State’s Diplomatic Security Service (DSS). DSS Special Agents investigated and concluded that McIntyre’s claim to that identity was fraudulent.
DSS Special Agents located McIntyre in Chaing Mai, Thailand on January 30, 2019 and revoked his fraudulently obtained passport. The Thailand Immigration Bureau then apprehended McIntyre for Thai immigration violations. McIntyre was questioned by DSS Special Agents in Thailand, and he admitted his true identity. A criminal complaint was obtained in the U.S. District Court for the District of Colorado and McIntyre was then escorted, in custody, back to the United States to face charges in Colorado.
“No matter where you go, if you are wanted by federal authorities you will eventually be found and held accountable,” said U.S. Attorney Jason Dunn. “This case demonstrates that hiding under a stolen identification won’t work.”
"The Diplomatic Security Service is committed to investigating and pursuing anyone who applies for or obtains a United States passport using false documents," said Angela L. Brenner, Resident Agent in Charge of DSS’ Denver Resident Office. "The U.S. passport is the most coveted travel document in the world. There are individuals who attempt to fraudulently acquire U.S. passports in someone else’s identity to flee, or to carry out criminal activities. These crimes threaten the national security of the United States."
This case was investigated by DSS’ Denver Resident Office with assistance from the Thailand Immigration Bureau. The defendant was prosecuted by Assistant U.S. Attorney David Tonini.
Two Denver Men Arrested After Search Found Large Quantity of Fentanyl, Heroin, and CocaineRead the Press Release
DENVER – United States Attorney Jason Dunn announced that two Denver men were charged yesterday for possessing fentanyl with the intent to distribute it. Gilbert Franco Garcia, age 38, and Jesus Aviles-Higuera, age 29, appeared before a U.S. Magistrate Judge yesterday afternoon where they were advised of their rights and the charges pending against them. Both men are in custody, and will be held pending a detention hearing, scheduled for early next week.
According to facts contained in an affidavit in support of the criminal complaints, on November 1, 2019, members of the Denver Police Department executed a search warrant at 4860 West Mexico Avenue. During the search, officers recovered approximately 1 kilogram of fentanyl, most of which was in the form of a dark-colored brick; approximately 134 fentanyl pills; approximately 454 grams of black tar heroin; and approximately 75 grams of cocaine. Officers initially suspected the dark-colored brick was black tar heroin and the pills were Oxycodone, but laboratory testing revealed the only controlled substance in the brick and the pills was fentanyl.
Fentanyl is a powerful synthetic opioid that is often said to be 50 to 100 times more potent than morphine, and many more times more potent than heroin. After seizure, the Denver Police Department issued a public health bulletin to inform the public of the large fentanyl find because of the risk that it could be confused for black tar heroin.
The Denver Police Department and the Regional Anti-Violence Enforcement Network (RAVEN) are conducting the investigation. Assistant U.S. Attorney Peter McNeilly is prosecuting the case.
The defendants are presumed innocent unless and until proven guilty in a court of law.
U.S. Attorney General Announces Launch of Project Guardian -- A Nationwide Strategic Plan to Reduce Gun ViolenceRead the Press Release
DENVER – Yesterday Attorney General William P. Barr, Colorado U.S. Attorney Jason R. Dunn and others announced the launch of Project Guardian, a new initiative designed to reduce gun violence and enforce federal firearms laws across the country. Specifically, Project Guardian focuses on investigating, prosecuting, and preventing gun crimes.
Reducing gun violence and enforcing federal firearms laws have always been among the Department’s highest priorities. In order to develop a new and robust effort to promote and ensure public safety, the Department reviewed and adapted some of the successes of past strategies to curb gun violence. Project Guardian draws on the Department’s earlier achievements, such as the “Triggerlock” program, and it serves as a complementary effort to the success of Project Safe Neighborhoods (PSN). In addition, the initiative emphasizes the importance of using all modern technologies available to law enforcement to promote gun crime intelligence.
“Gun crime remains a pervasive problem in too many communities across America. Today, the Department of Justice is redoubling its commitment to tackling this issue through the launch of Project Guardian,” said Attorney General William P. Barr. “Building on the success of past programs like Triggerlock, Project Guardian will strengthen our efforts to reduce gun violence by allowing the federal government and our state and local partners to better target offenders who use guns in crimes and those who try to buy guns illegally.”
“The U.S. Attorney’s Office has a long history of prioritizing the investigation and prosecution of gun crime in Colorado,” said U.S. Attorney Jason Dunn. “Under Project Guardian we are redoubling our efforts to prosecute those who use guns to commit violent crime. Colorado will be safer as a result of Project Guardian.”
“ATF has a long history of strong partnerships in the law enforcement community,” said Acting Director Regina Lombardo. “Make no mistake, the women and men of ATF remain steadfast to our core mission of getting crime guns off of our streets. ATF and U.S. Attorneys nationwide will leverage these partnerships even further through enhanced community outreach initiatives and coordination with local, state, and tribal law enforcement and prosecutors to cut the pipeline of crime guns from those violent individuals who seek to terrorize our communities. Project Guardian will enhance ATF’s Crime Gun Intelligence, to include identifying, investigating and prosecuting those involved in the straw purchases of firearms, lying on federal firearms transaction forms, and those subject to the mental health prohibition of possessing firearms.”
Project Guardian’s implementation is based on five principles:
- Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
- Enforcing the Background Check System. United States Attorneys, in consultation with the Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in their district, will create new, or review existing, guidelines for intake and prosecution of federal cases involving false statements (including lie-and-try, lie-and-buy, and straw purchasers) made during the acquisition or attempted acquisition of firearms from Federal Firearms Licensees.
Particular emphasis is placed on individuals convicted of violent felonies or misdemeanor crimes of domestic violence, individuals subject to protective orders, and individuals who are fugitives where the underlying offense is a felony or misdemeanor crime of domestic violence; individuals suspected of involvement in criminal organizations or of providing firearms to criminal organizations; and individuals involved in repeat denials.
- Improved Information Sharing. On a regular basis, and as often as practicable given current technical limitations, ATF will provide to state law enforcement fusion centers a report listing individuals for whom the National Instant Criminal Background Check System (NICS) has issued denials, including the basis for the denial, so that state and local law enforcement can take appropriate steps under their laws.
- Coordinated Response to Mental Health Denials. Each United States Attorney will ensure that whenever there is federal case information regarding individuals who are prohibited from possessing a firearm under the mental health prohibition, such information continues to be entered timely and accurately into the United States Attorneys’ Offices’ case-management system for prompt submission to NICS. ATF should engage in additional outreach to state and local law enforcement on how to use this denial information to better assure public safety.
Additionally, United States Attorneys will consult with relevant district stakeholders to assess feasibility of adopting disruption of early engagement programs to address mental-health-prohibited individuals who attempt to acquire a firearm. United States Attorneys should consider, when appropriate, recommending court-ordered mental health treatment for any sentences issued to individuals prohibited based on mental health.
- Crime Gun Intelligence Coordination. Federal, state, local, and tribal prosecutors and law enforcement will work together to ensure effective use of the ATF’s Crime Gun Intelligence Centers (CGICs), and all related resources, to maximize the use of modern intelligence tools and technology. These tools can greatly enhance the speed and effectiveness in identifying trigger-pullers and finding their guns, but the success depends in large part on state, local, and tribal law enforcement partners sharing ballistic evidence and firearm recovery data with the ATF.
Federal law enforcement represents only about 15% of all law enforcement resources nationwide. Therefore, partnerships with state, local, and tribal law enforcement and the communities they serve are critical to addressing gun crime. The Department recognizes that sharing information with our state, local, and tribal law enforcement partners at every level will enhance public safety, and provide a greater depth of resources available to address gun crime on a national level.
- Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
Metro Denver Man Pleads Guilty to Gun Store Thefts and CarjackingRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Jonathan Estrada, a/k/a Hight, age 20, of Denver pled guilty yesterday before U.S. District Court Judge Robert E. Blackburn to thefts of firearms from federal firearms licensees and carjacking. Estrada was part of a violent “smash and grab” organization that stole vehicles and burglarized federal firearms licensees (FFLs). The defendant appeared at the hearing in custody and was remanded at the hearing’s conclusion.
According to the stipulated facts contained in the plea agreement, on September 19, 2017, Estrada and another individual burglarized the Reloader’s Corner, an FFL in Arvada, Colorado. The defendant broke into the store by throwing rocks through glass. Seventeen firearms were stolen. Estrada’s DNA was found on the gun case counter.
On the morning of December 26, 2017, the defendant and another individual committed an armed carjacking in Arvada in which they stole a 2008 white BMW. A shell casing was recovered at the scene.
Ten days later, on January 5, 2018, a concerned citizen told the Denver Police Department that his neighbors had discussed gun store burglaries and that one individual had been driving a white BMW. During a later search of the vehicle, officers found three of the firearms that had been stolen during the Reloader’s theft.
On January 18, 2018, Estrada and five others burglarized Murdoch’s Ranch and Home Supply, an FFL in Littleton, again by throwing a rock through glass. They stole thirteen AR-15 style firearms and left in a stolen Nissan. That evening, ATF agents executed a search warrant at the defendant’s apartment. Agents found evidence related to the September 19, 2017 and January 18, 2018 FFL burglaries. The recovered evidence included: a shotgun stolen during the Reloader’s burglary; five firearms stolen during the Murdoch’s burglary; the Ruger 40 caliber pistol that had been fired during the armed carjacking; other firearms and ammunition; Murdoch’s gun sale tags; gloves and a ski mask; and a handwritten ledger on the defendant’s rent notice listing Murdochs and other locations to be burglarized. DNA recovered from the magazine of the pistol fired during the armed carjacking matched the defendant’s DNA. That specific firearm was carefully hidden inside the defendant’s apartment while other firearms were not.
This case was investigated by the ATF with assistance from the following law enforcement agencies: Arvada Police Department, Aurora Police Department, Denver Police Department, Douglas County Sheriff’s Office, Jefferson County Crime Lab, and Lakewood Police Department. The defendant is being prosecuted by Assistant U.S. Attorney Emily Treaster.
Former Parker Adventist Hospital Nurse Sentenced to Federal Prison for Stealing Fentanyl Designated for PatientsRead the Press Release
DENVER – U.S. Attorney Jason R. Dunn announced that former Parker Adventist Hospital Nurse Jessica Sharman, age 36, of Arapahoe County, was sentenced today by U.S. District Court Judge Christine M. Arguello to serve 44 months for stealing fentanyl meant for Intensive Care Unit (ICU) patients at Parker Adventist. Sharman appeared at the sentencing hearing free on bond. She was ordered to report to a Bureau of Prisons facility once one is designated. During the hearing, the court recognized the seriousness of the offense and the need for deterrence of other healthcare providers in accepting the government’s sentencing recommendation.
According to the stipulated facts contained in the plea agreement, Sharman worked as a nurse for various employers until she began working in the ICU at Parker Adventist Hospital in January 2018. Soon after she started work at Parker Adventist, the defendant used an automated narcotic medication dispensing device known as a Pyxis machine to gain access to the fentanyl. Only authorized users, which includes nurses, are allowed to use the machine.
On April 20, 2018, a routine audit report of access to and utilization of controlled substances from the Pyxis machine flagged Sharman’s access as “red” for high fentanyl use and waste (the disposal of excess fentanyl following physician-ordered patient administration) for the month of March 2018. The audit for the month of February 2018 flagged Sharman’s access as “yellow,” also for high fentanyl usage. A review of the Pyxis access records showed a high number of “remove-cancel” transactions, indicating that the defendant had accessed controlled substances from a Pyxis machine but then “cancelled” the transaction, returning the drug to the locked machine.
On April 25, 2018, after substantiating the tampering concerns flagged by the audit, Parker Adventist removed all fentanyl from the ICU. On April 26, 2018, Parker Adventist employees interviewed Sharman. Based in part on that interview, it was determined that the defendant was stealing fentanyl from the hospital. She allegedly withdrew the drug from fentanyl cassettes using a sterile syringe and saline flushes. She sometimes replaced the fentanyl she stole with saline, injecting the saline back into the fentanyl cassette and returning the cassette to the Pyxis machine. Following her interview, Sharman tested positive for the use of fentanyl. The hospital terminated Sharman’s employment on April 26, 2018.
“Medical professionals who have access to opioids like fentanyl are required to make sure that this powerful medication is provided to patients and is not abused,” said U.S. Attorney Jason Dunn. “In this case a nurse at a hospital stole fentanyl for her own use. And perhaps even worse, replaced it with saline, causing unwitting patients to go without necessary medication while believing their pain was being treated. That is a crime and she has paid the price.”
“Jessica Sharman’s actions were callous and selfish. She chose to steal fentanyl from vulnerable individuals entrusted in her care and use the drugs for herself,” said DEA Denver Division Special Agent in Charge Deanne Reuter. “Sharman’s blatant disregard for the health and welfare of those under her care is an example of the detrimental effects of opioid addiction and abuse.”
“FDA will continue to aggressively pursue those health care practitioners who prey on vulnerable patients by removing their needed medications, especially opioids,” said Charles L. Grinstead, Special Agent in Charge, FDA Office of Criminal Investigations, Kansas City Field Office. “We remain committed to working with our law enforcement partners to protect the public health and bring to justice those who compromise patients’ health in this manner.”
Sharman had previously pled guilty to Tampering with a consumer product. She was first charged by Information on May 29, 2019.
This case was investigated by the FDA OCI and the DEA. The defendant is being prosecuted by Assistant U.S. Attorney Anna Edgar.
Notice Regarding Phone Calls Appearing to Orginate from the U.S. Attorney's OfficeRead the Press Release
Over the past week, many members of the public have let us know they are receiving phone calls that appear to be coming from the U.S. Attorney’s Office, but are not actually coming from this office. It appears that these calls are being made to look like they are coming from the U.S. Attorney’s Office through the use of a fake caller ID, which is falsely stating that the call is coming from a number associated with the U.S. Attorney’s Office. The false use of caller ID is also known as “spoofing.” For more information regarding “spoofing” please visit: https://www.fcc.gov/consumers/guides/spoofing-and-caller-id
Members of the public who are concerned about whether they have received a legitimate call from the U.S. Attorney’s Office may call us and inquire. The main line for the US Attorney’s Office is 303-454-0100.
Justice Department Announces Procurement Collusion Strike Force: A Coordinated National Response to Combat Antitrust Crimes and Related Schemes in Government Procurement, Grant and Program FundingRead the Press Release
WASHINGTON - The Justice Department announced today the formation of the new Procurement Collusion Strike Force (PCSF) focusing on deterring, detecting, investigating and prosecuting antitrust crimes, such as bid-rigging conspiracies and related fraudulent schemes, which undermine competition in government procurement, grant and program funding.
At a press conference today at the Department of Justice in Washington, D.C., Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division explained that the PCSF will be an interagency partnership consisting of prosecutors from the Antitrust Division, prosecutors from 13 U.S. Attorneys’ Offices, and investigators from the FBI, the Department of Defense Office of Inspector General, the U.S. Postal Service Office of Inspector General and other partner federal Offices of Inspector General.
Deputy Attorney General Jeffrey A. Rosen expressed the Department’s support for the initiative. “To protect taxpayer dollars, the Justice Department is doing its part to eliminate anticompetitive collusion, waste and abuse from government procurement,” said Deputy Attorney General Rosen. “To ensure taxpayers the full benefits of competitive bidding, experienced investigators and prosecutors with the necessary expertise will partner in this Strike Force to deter, detect and prosecute antitrust crimes and related schemes in government procurements.”
“When companies cheat the government on contracts, they are really cheating the taxpayers who pay the bill,” said US Attorney Jason Dunn. “In Colorado, we stand ready to hold dishonest companies accountable and ensure taxpayers are getting what they paid for.”
“The investigation and prosecution of individuals and organizations that cheat, collude and seek to undermine the integrity of government procurement are priorities for this administration,” said Assistant Attorney General Delrahim. “The PCSF will train and educate procurement officials nationwide to recognize and report suspicious conduct in procurement, grant and program funding processes. We will aggressively investigate and prosecute those who violate our antitrust laws to cheat the American taxpayer.”
The PCSF will lead a national effort to protect taxpayer-funded projects at the federal, state and local level from antitrust violations and related crimes, starting with a focus on 13 districts throughout the country. Prosecutors from the Antitrust Division and the participating U.S. Attorneys’ Offices, along with agents from the FBI and partner Offices of Inspector General, will work together to conduct outreach and training for procurement officials and government contractors on antitrust risks in the procurement process. In addition, the partnered prosecutors and investigators will jointly investigate and prosecute cases that result from their targeted outreach efforts.
“Inspectors General throughout the federal government have a long history of rooting out waste, fraud and abuse in government contracting,” said Michael E. Horowitz, Inspector General of the Department of Justice and Chair of the Council of Inspectors General on Integrity and Efficiency. “We welcome the opportunity to contribute our expertise to the important work of the Procurement Collusion Strike Force. We look forward to partnering with the other participating members of the law enforcement community to hold accountable actors who seek to defraud the government and cheat taxpayers.”
“The FBI has a long history of working with our interagency and law enforcement partners to investigate public procurement crimes and ensure justice,” said FBI Criminal Intelligence Division Assistant Director Terry Wade. “We are committed to working closely with our DOJ colleagues and our federal, state and local partners as we continue to successfully combat these crimes.”
“Individuals and companies that participate in procurement collusion cause significant harm and losses to the Department of Defense and to American taxpayers,” said Glenn A. Fine, Principal Deputy Inspector General, Performing the Duties of the Inspector General, of the Department of Defense Office of Inspector General. “The DoD Office of Inspector General, and our criminal investigative component, the Defense Criminal Investigative Service, are committed to aggressively investigating those individuals and companies who would attempt to compromise government procurement processes.”
The Antitrust Division and its law enforcement partners have a history of prosecuting criminal antitrust conspiracies that take advantage of government contracts. In late 2018 and early 2019, for instance, five South Korean oil companies agreed to plead guilty for their involvement in a decade-long bid-rigging conspiracy that targeted contracts to supply fuel to U.S. military bases in South Korea. The Antitrust Division also indicted seven individuals for conspiring to rig bids and to defraud the government, and one executive was also charged with obstruction of justice. In total, the companies have agreed to pay $156 million in criminal fines and over $205 million in separate civil settlements. This year, the Justice Department, in partnership with the GSA Office of Inspector General, also indicted individuals for involvement in rigging bids submitted to the GSA.
The PCSF’s 13 U.S. Attorney partners include:
- Nicola T. Hanna, Central District of California
- McGregor Scott, Eastern District of California
- Jason R. Dunn, District of Colorado
- Jessie K. Liu, District of Columbia
- Ariana Fajardo Orshan, Southern District of Florida
- Byung J. “BJay” Pak, Northern District of Georgia
- John R. Lausch, Jr., Northern District of Illinois
- Matthew Schneider, Eastern District of Michigan
- Geoffrey S. Berman, Southern District of New York
- David M. DeVillers, Southern District of Ohio
- William M. McSwain, Eastern District of Pennsylvania
- Erin Nealy Cox, Northern District of Texas
- G. Zachary Terwilliger, Eastern District of Virginia
The PCSF’s investigative partners include:
- Department of Defense Office of Inspector General
- Federal Bureau of Investigation
- General Services Administration Office of Inspector General
- Department of Justice Office of the Inspector General
- U.S. Postal Service Office of Inspector General
The PCSF has launched a publicly available website at https://www.justice.gov/procurement-collusion-strike-force, where government procurement officials and members of the public can review information about the federal antitrust laws and training programs, and report suspected criminal activity affecting public procurement.
Individuals and companies are encouraged to contact the PCSF if they have information concerning anticompetitive conduct involving federal taxpayer dollars by emailing [email protected].
Denver Man Convicted of Large-Scale Cocaine Trafficking Sentenced to Lengthy Prison TermRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Michael Benitez-Lopez, aka “Mikey” aka “Money Mike”, age 27 of Denver, Colorado, was sentenced late last week by Chief U.S. District Court Judge Philip A. Brimmer to serve 180 months (15 years) in federal prison for distributing large quantities of cocaine. Following his prison sentence, Benitez-Lopez was ordered to spend 5 years on supervised release. The defendant appeared at the hearing in custody, and was remanded at its conclusion.
According to court documents and arguments made at trial, from March 2017 through April 1, 2018, Benitez-Lopez received multiple-kilograms of cocaine as part of a large scale drug trafficking organization that was responsible for importing more than 200 kilograms of cocaine during the course of the conspiracy. The defendant sold multi-kilogram quantities of cocaine to lower level dealers throughout Metro Denver.
“This is a significant sentence that is justified by the scale of the drug trafficking operation and the quantity of cocaine being imported into Colorado,” said U.S. Attorney Jason Dunn. “We hope other dealers will see this sentence and get the message that peddling drugs in Colorado has harsh federal penalties.”
“This investigation targeted a significant cocaine trafficking organization in the Denver metropolitan area,” said DEA Denver Division Special Agent in Charge Deanne L. Reuter. “This investigation is another prime example of the commitment of the DEA, working with the U.S. Attorney’s Office and our law enforcement partners, to dismantle and remove drug trafficking organizations in order to protect our communities.”
The trial lasted three days before Chief U.S. District Court Judge Philip A. Brimmer. The jury deliberated for two hours before reaching their guilty verdicts on August 9, 2019.
This case was investigated by the Drug Enforcement Administration. The defendant was prosecuted by Assistant U.S. Attorneys Stephanie Podolak and Zachary Phillips.
Colorado U.S. Attorney's Office Files Court Action to Enforce Subpoenas Issued to State Program in Investigations of Colorado PharmaciesRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announced today that it has filed a petition in federal court to enforce subpoenas that were issued by the Drug Enforcement Administration in its ongoing investigations of two Colorado pharmacies that dispense opioids and other controlled substances.
The DEA issued the subpoenas to obtain information that the pharmacies had reported to Colorado’s Prescription Drug Monitoring Program (“PDMP”). As explained in the petition, the DEA was informed by the Colorado Attorney General’s Office that the information those pharmacies had reported to the PDMP would not be disclosed to the DEA. The petition filed today requests a court order directing three respondents—the Colorado Board of Pharmacy; Patty Salazar, Executive Director of the Colorado Department of Regulatory Agencies; and Appriss, Inc., a corporation headquartered in Kentucky that maintains information reported to Colorado’s PDMP—to produce the information sought by the DEA subpoenas.
“We are taking this action as part of our office’s efforts to aggressively pursue law enforcement investigations of anyone who may be breaking the law and contributing to Colorado’s epidemic of prescription drug abuse,” said U.S. Attorney Jason Dunn. “The DEA is fighting that epidemic with us and needs the information it subpoenaed to advance its investigations of two pharmacies. That information will reveal important details that will help us to evaluate whether the pharmacies have been following the law when they dispense controlled substances. We recognize that this information is sensitive, but, just as the state does, we respect that sensitivity and will protect the confidentiality of that information from public disclosure. We are disappointed with the refusal to comply with these lawful subpoenas, a refusal that has forced us to seek aid from the court in getting the information we need to carry out important law enforcement investigations aimed at combating the prescription drug abuse epidemic.”
This case is being handled by Assistant U.S. Attorneys Kevin Traskos and David Moskowitz in the U.S. Attorney’s Office for the District of Colorado.
United States Sues Air Methods for Operating Air-Ambulance Helicopter with "Severely Corroded" ComponentsRead the Press Release
DENVER – United States Attorney Jason R. Dunn filed a complaint for civil penalties today against Air Methods Corporation. The Complaint alleges that Air Methods violated Federal Aviation Administration (“FAA”) regulations by operating an emergency-services helicopter on 51 flights after having been notified by the FAA that the helicopter’s pitot-tubes—parts necessary to determine airspeed—were “severely corroded.”
The FAA regulates the operation of aircraft within the United States. As part of the FAA’s mission to ensure safety, the FAA routinely inspects aircraft within its jurisdiction.
The complaint alleges that on November 4, 2014, an FAA Aviation Safety Inspector inspected an Air Methods helicopter in Tampa, Florida. During that inspection, the safety inspector noticed that the helicopter’s pitot tubes were severely corroded. A pitot tube is a component of the pressure measurement system used to determine airspeed. If a pitot tube is not functioning properly, it can cause the airspeed reflected on a helicopter’s instruments to vary significantly from the actual airspeed, which can present serious safety concerns. The complaint alleges that Air Methods was aware of the hazards of operating aircraft with severely corroded pitot tubes, as it had previously experienced a helicopter incident where burnt and corroded pitot tubes became clogged, causing the helicopter’s auto-pilot to partially disengage and the aircraft’s instruments to suddenly indicate an airspeed of 30 knots higher than the helicopter’s actual speed.
The complaint alleges that, after being notified by the FAA that the pitot tubes on its helicopter were severely corroded, Air Methods did not fix or replace the corroded parts, but instead continued to operate the helicopter on 51 flights. The complaint alleges that, by continuing to operate the helicopter with severely corroded pitot tubes, Air Methods violated applicable federal regulations. The complaint seeks to recover civil penalties from Air Methods up to the maximum amount allowed by law for the alleged regulatory violations.
“When a federal safety inspector notifies an air-ambulance company that one of its helicopters has a potential safety issue, the company must address that issue,” said U.S. Attorney Jason Dunn. “Air Methods kept the helicopter in the air despite being warned about the corroded pitot tubes, and we intend to hold the company accountable for its actions.”
This case is being handled by Assistant U.S. Attorney Ian Kellogg in the U.S. Attorney’s Office for the District of Colorado.
Un hombre del sur de Colorado acusado de delito federal por confabular a hacer estallar una sinagogaRead the Press Release
El Fiscal General Auxiliar de la División de Derechos Civiles, Eric Dreiband, y el Fiscal General Auxiliar de la División de Seguridad Nacional, John C. Demers, juntos con el Fiscal Federal para el Distrito de Colorado, Jason R. Dunn, y el Agente Especial Encargado de la División del FBI en Denver, Dean Phillips, anunciaron hoy que un hombre de Colorado ha sido acusado de un delito federal de odio por haber confabulado a hacer estallar la Sinagoga Emanuel en Pueblo, Colorado.
Richard Holzer, de 27 años, vecino de Pueblo, Colorado, fue acusado por denuncia penal de haber intentado intencionalmente obstaculizar el disfrute de las personas del libre ejercicio del culto religioso mediante el uso de fuerza y el intento de usar explosivos y fuego, en contra de la Sección 247 del Título 18 del Código de los Estados Unidos.
Según la declaración jurada en apoyo de la denuncia penal, Holzer planeó destruir la Sinagoga Emanuel, una sinagoga en Pueblo, Colorado que aparece en el Registro Nacional de Lugares Históricos. Tras visitar la Sinagoga Emanuel y observar a los congregantes judíos, Holzer, quien se autoidentifica como cabeza rapada y defensor de la supremacía de la raza blanca, les dijo a unos agentes encubiertos del FBI que quería hacer algo que dejaría claro a los judíos de la comunidad que no eran bienvenidos en Pueblo y que se deberían ir o morirían. En repetidas ocasiones, Holzer expresó su odio hacia los judíos y su apoyo a una guerra santa racial (RAHOWA, por sus siglas en inglés). Holzer sugirió emplear dispositivos explosivos para destrozar la sinagoga y «borrar aquel lugar del mapa». La declaración jurada menciona que las acciones de Holzer reúnen la definición federal de terrorismo doméstico porque sus acciones involucran actos delictivos que ponen en peligro la vida humana, cuya intención es intimidar o coaccionar a una población civil.
Holzer supuestamente se reunió con agentes encubiertos del FBI que fingían ser defensores de la supremacía de la raza blanca como él para tramar un plan para atacar a Sinagoga Emanuel, y luego la visitaron juntos. La declaración jurada alega que Holzer realizó visitas adicionales por su cuenta después para inspeccionar la sinagoga, y coordinó con los agentes encubiertos para conseguir los explosivos.
En la noche del 1 de noviembre del 2019, Holzer supuestamente se reunió con agentes encubiertos, los cuales le proporcionaron dispositivos explosivos inactivos creados por el FBI, incluyendo dos bombas de fabricación casera y 14 cartuchos de dinamita. Según la declaración jurada, Holzer tenía previsto detonar los explosivos varias horas más tarde, en la madrugada del sábado 2 de noviembre.
La Fiscal Federal Auxiliar Julia Martinez y el Abogado de Litigios Michael J. de la División de Derechos Civiles están enjuiciando el caso con el apoyo de la Abogada de Litigios para la Sección de Contraterrorismo Erin Creegan, de la División de Seguridad Nacional del Departamento de Justicia. El FBI llevó a cabo la investigación con la ayuda de la Policía de Pueblo y la Oficina del Sheriff del Condado de Pueblo.
Holzer se encuentra actualmente bajo custodia federal y se enfrenta a una pena máxima de 20 años de cárcel si es declarado culpable.
La acusación contenida en la denuncia es meramente una alegación, y al acusado se lo considera inocente mientras no se pruebe su culpabilidad ante un tribunal de justicia.
Anexo(s):
Download richard_holzer_complaint.pdf
Southern Colorado Man Charged with Federal Hate Crime for Plotting to Blow up SynagogueRead the Press Release
Assistant Attorney General Eric Dreiband for the Civil Rights Division and Assistant Attorney General John C. Demers for the National Security Division, U.S. Attorney Jason R. Dunn for the District of Colorado, and Special Agent in Charge Dean Phillips for the FBI Denver Division announced today that a Colorado man has been charged with a federal hate crime for plotting to blow up the Temple Emanuel Synagogue in Pueblo, Colorado.
Richard Holzer, 27, of Pueblo, Colorado, was charged by criminal complaint with 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, United States Code, Section 247.
According to the affidavit in support of the criminal complaint, Holzer planned to destroy Temple Emanuel, a synagogue in Pueblo, Colorado, that is listed on the National Register of Historic Places. After visiting Temple Emanuel and observing Jewish congregants, Holzer, who self-identifies as a skinhead and a white supremacist, told undercover FBI agents that he wanted to do something that would tell Jewish people in the community that they are not welcome in Pueblo, and they should leave or they will die. The affidavit states that during a meeting with the undercover agents, Holzer repeatedly expressed his hatred of Jewish people and his support for RAHOWA, shorthand for a racial holy war. Holzer went on to suggest using explosive devices to destroy the Synagogue and “get that place off the map.” The affidavit notes that Holzer’s actions meet the federal definition of domestic terrorism in that his actions involve criminal acts dangerous to human life that are intended to intimidate or coerce a civilian population.
Holzer allegedly met with undercover agents posing as fellow white supremacists to discuss a plan to attack Temple Emanuel, then visited the Synagogue together. The affidavit alleges that Holzer then made additional trips on his own to inspect the Synagogue and coordinated with undercover agents to obtain explosives.
On the evening of Nov. 1, 2019, Holzer allegedly 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. According to the affidavit, Holzer planned to detonate the explosives several hours later, in the early hours of Saturday morning, Nov. 2, 2019.
Assistant United States Attorney Julia Martinez and Trial Attorney Michael J. Songer of the Civil Rights Division are prosecuting the case, with assistance from Counterterrorism Section Trial Attorney Erin Creegan of the Justice Department’s National Security Division. The FBI conducted the investigation with the assistance of the Pueblo Police Department and Pueblo County Sheriff’s Office.
Holzer is currently in federal custody. He faces a maximum penalty of 20 years in prison if convicted.
The charge in the complaint is merely an allegation and the defendant is presumed innocent unless proven guilty in a court of law.
Southern Colorado Man Charged with Federal Hate Crime for Plotting to Blow up SynagogueRead the Press Release
WASHINGTON –Assistant Attorney General Eric Dreiband for the Civil Rights Division and Assistant Attorney General John C. Demers for the National Security Division, U.S. Attorney Jason R. Dunn for the District of Colorado, and Special Agent in Charge Dean Phillips for the FBI Denver Division announced today that a Colorado man has been charged with a federal hate crime for plotting to blow up the Temple Emanuel Synagogue in Pueblo, Colorado.
Richard Holzer, 27, of Pueblo, Colorado, was charged by criminal complaint with 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, United States Code, Section 247.
According to the affidavit in support of the criminal complaint, Holzer planned to destroy Temple Emanuel, a synagogue in Pueblo, Colorado, that is listed on the National Register of Historic Places. After visiting Temple Emanuel and observing Jewish congregants, Holzer, who self-identifies as a skinhead and a white supremacist, told undercover FBI agents that he wanted to do something that would tell Jewish people in the community that they are not welcome in Pueblo, and they should leave or they will die. The affidavit states that during a meeting with the undercover agents, Holzer repeatedly expressed his hatred of Jewish people and his support for RAHOWA, shorthand for a racial holy war. Holzer went on to suggest using explosive devices to destroy the Synagogue and “get that place off the map.” The affidavit notes that Holzer’s actions meet the federal definition of domestic terrorism in that his actions involve criminal acts dangerous to human life that are intended to intimidate or coerce a civilian population.
Holzer allegedly met with undercover agents posing as fellow white supremacists to discuss a plan to attack Temple Emanuel, then visited the Synagogue together. The affidavit alleges that Holzer then made additional trips on his own to inspect the Synagogue and coordinated with undercover agents to obtain explosives.
On the evening of Nov. 1, 2019, Holzer allegedly 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. According to the affidavit, Holzer planned to detonate the explosives several hours later, in the early hours of Saturday morning, Nov. 2, 2019.
Assistant United States Attorney Julia Martinez and Trial Attorney Michael J. Songer of the Civil Rights Division are prosecuting the case, with assistance from Counterterrorism Section Trial Attorney Erin Creegan of the Justice Department’s National Security Division. The FBI conducted the investigation with the assistance of the Pueblo Police Department and Pueblo County Sheriff’s Office.
Holzer is currently in federal custody. He faces a maximum penalty of 20 years in prison if convicted.
The charge in the complaint is merely an allegation and the defendant is presumed innocent unless proven guilty in a court of law.
Denver Drug Dealer Sentenced to Federal Prison for Distribution of Methamphetamine and HeroinRead the Press Release
DENVER – U.S. Attorney Jason R. Dunn announced that Troy Andrew Lujan, age 37, of Lakewood, Colorado, was sentenced yesterday by Chief U.S. District Court Judge Philip A. Brimmer to serve 105 months (nearly 9 years) in federal prison for distribution of methamphetamine and heroin. He will then serve five years on supervised release. Lujan appeared at the sentencing hearing in custody, and was remanded at the hearing’s conclusion. Denver FBI Special Agent in Charge Dean Phillips joined in the announcement.
Lujan was convicted following a jury trial on May 14, 2019. According to court records and evidence presented at trial, on October 24, 2017, a confidential informant met Lujan at his apartment in Lakewood to complete a planned drug transaction. The deal was audio and video recorded. Lujan sold the confidential informant a half an ounce of methamphetamine and a half an ounce of heroin for $950. In addition to that recorded transaction, evidence at trial also revealed Lujan was selling approximately an ounce a day of both methamphetamine and heroin out of his apartment and that he had approximately 20 regular customers. Lujan is a documented member of the East Side Oldies criminal street gang.
Defendant Lujan was indicted by a grand jury on November 15, 2018, and ordered detained pending trial on December 12, 2018.
“The defendant is a five-time felon who was peddling methamphetamine and heroin on the streets of Denver,” said U.S. Attorney Jason Dunn. “Spending nearly 9 years in federal prison will give him a long time to contemplate whether he should choose a different path.”
"The FBI is committed to aggressively pursuing those who promote the sale of heroin and methamphetamine to our neighborhoods and children,” said FBI Denver Special Agent in Charge Dean Phillips. “Today’s sentencing of Troy Andrew Lujan should deter others who distribute illegal narcotics for personal gain."
This matter was investigated by the FBI’s OCDETF Strike Force. The defendant was prosecuted by Assistant U.S. Attorneys Peter McNeilly and Rajiv Mohan
Justice Department Files Suit Against Walmart Inc. to Enforce Employment Rights of Naval ReservistRead the Press Release
The Department of Justice filed a complaint today in the United States District Court for the District of Colorado on behalf of Naval Petty Officer Third Class Lindsey Hunger against Walmart Inc. The complaint alleges that Walmart violated the law when it declined to hire Hunger due to her upcoming naval reserve duties.
“Servicemembers risk their lives to protect all of us. They deserve our full support, and the law does not permit employers to use military service as a reason to deny servicemembers jobs and other employment opportunities,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Defending servicemembers is very important, and the U.S. Department of Justice will continue aggressively to enforce the Uniformed Services Employment and Reemployment Rights Act and other federal laws that protect servicemembers.”
“The members of our Armed Forces routinely make personal sacrifices to protect our nation. The least we can do as a nation is ensure they aren’t discriminated against for making these sacrifices,” said U.S. Attorney Jason R. Dunn of the District of Colorado. “When such discrimination does occur, this office and the Department of Justice will step in to right that wrong.”
Hunger alleges that in May 2016 she applied for a summer job at Walmart while she was a member of the United States Naval Reserve. After applying online, she received a call from Walmart’s personnel coordinator for the Walmart located at 2545 Rimrock Avenue in Grand Junction, Colorado. At the end of the call, Hunger mentioned that she was required to complete a mandatory two-week annual training for her Navy Reserve duty during the summer. The Personnel Coordinator responded by telling Hunger that Walmart could not support that time off, and ended the call. Walmart never called Hunger again about her application for employment. Hunger, who was supporting two young children at the time, could not find other employment in Grand Junction during the summer and fall of 2016.
The lawsuit alleges that Walmart’s conduct violated the Uniformed Services Employment and Reemployment Rights Act of 1994, which was passed 25 years ago to protect the rights of servicemembers. The law, known as USERRA, protects servicemembers from discrimination in employment because of their service to their country in any branch of the military. This lawsuit stems from a referral to the United States Department of Justice from the United States Department of Labor, after an investigation by the Department of Labor’s Veterans’ Employment and Training Service.
The Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.justice.gov/crt-military/employment-rights-userra and www.justice.gov/servicemembers as well as on the Department of Labor’s (DOL) website at www.dol.gov/vets/programs/userra.
This case is being handled by Assistant U.S. Attorney Zeyen Wu in the U.S. Attorney’s Office for the District of Colorado.
Department of Justice Sues Walmart to Enforce Employment Rights of Naval ReservistRead the Press Release
DENVER – The Department of Justice filed a civil complaint today in the United States District Court for the District of Colorado on behalf of Naval Petty Officer Third Class Lindsey Hunger against Walmart Inc. The complaint alleges that Walmart violated the law when it declined to hire Hunger due to her upcoming naval reserve duties.
“The members of our Armed Forces routinely make personal sacrifices to protect our nation. The least we can do as a nation is ensure they aren’t discriminated against for making these sacrifices,” said U.S. Attorney Jason R. Dunn of the District of Colorado. “When such discrimination does occur, this office and the Department of Justice will step in to right that wrong.”
“Servicemembers risk their lives to protect all of us. They deserve our full support, and the law does not permit employers to use military service as a reason to deny servicemembers jobs and other employment opportunities,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Defending servicemembers is very important, and the U.S. Department of Justice will continue to aggressively enforce the Uniformed Services Employment and Reemployment Rights Act and other federal laws that protect servicemembers.”
Hunger alleges that in May 2016 she applied for a summer job at Walmart while she was a member of the United States Naval Reserve. After applying online, she received a call from Walmart’s personnel coordinator for the Walmart located at 2545 Rimrock Avenue in Grand Junction, Colorado. At the end of the call, Hunger mentioned that she was required to complete a mandatory two-week annual training for her Navy Reserve duty during the summer. The Personnel Coordinator responded by telling Hunger that Walmart could not support that time off, and ended the call. Walmart never called Hunger again about her application for employment. Hunger, who was supporting two young children at the time, could not find other employment in Grand Junction during the summer and fall of 2016.
The lawsuit alleges that Walmart’s conduct violated the Uniformed Services Employment and Reemployment Rights Act of 1994, which was passed 25 years ago to protect the rights of servicemembers. The law, known as USERRA, protects servicemembers from discrimination in employment because of their service to their country in any branch of the military. This lawsuit stems from a referral to the United States Department of Justice from the United States Department of Labor, after an investigation by the Department of Labor’s Veterans’ Employment and Training Service.
The Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at https://www.justice.gov/servicemembers/uniformed-services-employment-and-reemployment-rights-act-1994-userra and www.justice.gov/servicemembers as well as on the Department of Labor’s (DOL) website at https://www.dol.gov/agencies/vets/programs/userra/aboutuserra.
This case is being handled by Assistant U.S. Attorney Zeyen Wu in the U.S. Attorney’s Office for the District of Colorado.
Case Number: 19-cv-3090
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Pueblo Man Sentenced to Federal Prison for Heroin DistributionRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Mario Mercado, age 39, of Pueblo, Colorado, was sentenced today by U.S. District Court Judge William J. Martinez to serve 33 months in federal prison for possession with intent to distribute heroin. Following the prison sentence, Judge Martinez ordered Mercado to serve 4 years on supervised release. The defendant appeared at the sentencing hearing in custody, and was remanded to the U.S. Marshals custody at its conclusion.
According to the stipulated facts contained in Mercado’s plea agreement, on October 28, 2017, the defendant sold 5 ounces of heroin for $5,500 to a confidential human source (CHS) acting at the direction of the FBI. The sale took place at a residence in Pueblo. Further investigation revealed that Mercado received 15 ounces of heroin with intent to distribute it. Of the 15 ounces, he sold 5 ounces to the CHS, used some, and threw some out a window so police would not find it.
“Heroin continues to be a significant problem in Pueblo and Southern Colorado more generally,” said U.S. Attorney Jason Dunn. “Dealers should know that federal law enforcement is coming for them with renewed vigor.”
"Heroin distribution harms our communities and will not be tolerated,” said FBI Denver Special Agent in Charge Dean Phillips. “The FBI is committed to work with our partners to identify and disrupt those that enable the heroin epidemic which continues to spread throughout the state.”
Mercado was indicted by a federal grand jury in Denver on July 11, 2018. He pled guilty on February 12, 2019. He was sentenced today, October 23, 2019.
This case was investigated by the FBI. The defendant was prosecuted by Assistant U.S. Attorney Justin DeRosa.
U.S. Attorney Announced Latest Assistant U.S. Attorney HiresRead the Press Release
Below please find for new Assistant U.S. Attorneys hired and placed in this office. Thank you.
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Brian Dunn came to the office after nearly 11 years as a deputy district attorney at the Denver District Attorney’s Office. Before that, he was in private practice at firms in Chicago and New York. He earned his law degree from the Georgetown University Law Center. Brian is assigned to the office’s Violent Crime and Immigration Enforcement Section of the Criminal Division.
Cyrus Chung came to the office after serving as an Assistant District Attorney in the Middlesex County District Attorney’s Office in Massachusetts. Prior to that he clerked for 1st Circuit Court of Appeals Judge Bruce M. Selya and Judge Richard J. Holwell of the Southern District of New York, and also spent 2 years in private practice. Cyrus earned his law degree from Harvard Law School. He is assigned to the office’s Narcotics Section of the Criminal Division.
R. Josh Player joined the office after 22 years of legal practice. During that time he was a Senior Attorney/Unit Chief for the Salt Lake County District Attorney’s Office, Assistant Attorney General for the State of Utah, a solo practitioner, and clerked for a State District Court Judge. Josh earned his law degree from Seattle University School of Law. He is assigned to the Durango Branch Office and focuses on Indian Country prosecutions and serves as the office’s trial liason.
Laura McNabb came to the office after 3 years in a private practice. She clerked for Colorado Supreme Court Chief Justice Nancy E. Rice and 10th Circuit U.S. Court of Appeals Judge David. M. Ebel. Laura earned her B.A. from the University of Denver and her J.D. from the University of Colorado Law School. Laura is assigned to the office’s Civil Division.
Colorado to Receive over $1 Million in Grants to Address School ViolenceRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that the Department of Justice has awarded over $1 million in grants – one to the State of Colorado and the other to the Hayden (Craig, Colorado) School District, to address school violence. The awards come as part of the Department’s larger announcement that it had awarded more than $85.3 million to bolster school security—including funding to educate and train students and faculty—and support first responders who arrive on the scene of a school shooting or other violent incident.
“The Department of Justice continues to recognize the importance of providing funds to proactively address school shootings,” said U.S. Attorney Dunn. “Students should feel safe in their school and in their classrooms. This grant is an important step to making sure they feel safe and are safe.”
“These federal resources will help to prevent school violence and give our students the support they need to learn, grow, and thrive,’ said Attorney General William P. Barr. “By training faculty, students and first responders, and by improving school security measures, we can make schools and their communities safer.”
In Colorado, two agencies received grant money:
- Colorado Division of Homeland Security and Emergency Management received $999,987 from the Bureau of Justice Assistance’s (BJA) program called STOP School Violence which would directly help schools by providing school administrators, staff, students and first responders with the ability to use threat assessments, crisis intervention teams, and anonymous reporting technology.
- Hayden School District RE1 (West of Craig) received $43,868 from the Office of Community Oriented Policing Services (COPS) for School Violence Prevention
President Trump signed the STOP School Violence Act into law in March 2018, authorizing grants that are designed to improve threat assessments, train students and faculty to provide tips and leads, and prepare law enforcement officers and emergency professionals to respond to school shootings and other violent incidents. The grant programs are managed by OJP’s Bureau of Justice Assistance and the Justice Department’s Office of Community Oriented Policing Services.
The Bureau of Justice Assistance, within the Department’s Office of Justice Programs, and the Office of Community Oriented Policing Services manage the programs and administer the grants, which include funds to:
- Develop school threat assessment teams and pursue technological solutions to improve reporting of suspicious activity in and around schools;
- Implement or improve school safety measures, including coordination with law enforcement, as well as the use of metal detectors, locks, lighting and other deterrent measures;
- Train law enforcement to help deter student violence against others and themselves;
- Improve notification to first responders through implementation of technology that expedites emergency notifications;
- Develop and operate anonymous reporting systems to encourage safe reporting of potential school threats;
- Train school officials to intervene when mentally ill individuals threaten school safety; and
- Provide training and technical assistance to schools and other awardees in helping implement these programs.
For more details about these individual award programs, as well as listings of individual 2019 awardees, visit https://go.usa.gov/xVJuV
About the Office of Justice Programs:
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.
About the Office of Community Oriented Policing Services:
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 130,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
- Colorado Division of Homeland Security and Emergency Management received $999,987 from the Bureau of Justice Assistance’s (BJA) program called STOP School Violence which would directly help schools by providing school administrators, staff, students and first responders with the ability to use threat assessments, crisis intervention teams, and anonymous reporting technology.
Announcement by U.S. Attorney Jason R. Dunn on the Charging of Former Westminster Police Officer Curtis ArganbrightRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced today that former Westminster Police Officer Curtis Arganbright has been charged with violating a woman’s civil rights by having nonconsensual sex with her while she was in his police custody. Arganbright was convicted by the State of Colorado in 2018 based on the same incident. He ultimately pleaded guilty to unlawful sexual contact and official misconduct and was sentenced to 90 days in county jail. He now faces up to 10 years in federal prison if convicted of the new federal charge.
The federal investigation was conducted by the Denver Field Office of the FBI. Arganbright was charged by Information in U.S. District Court in Denver. He appeared at today’s hearing and waived his right to indictment. The case is being prosecuted by the U.S. Attorney’s Office for the District of Colorado and the Civil Rights Division of the Department of Justice.
The charge contained in the Information is an allegation, and the defendant is presumed innocent unless and until proven guilty.
Westminster Woman Sentenced to Federal Prison After Selling Heroin That Led to Overdose DeathRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced today that Kayla Pagano, age 24, of Westminster, Colorado, was sentenced by Senior U.S. District Court Judge Robert E. Blackburn to serve 77 months (6 years and 5 months) in federal prison for distribution of heroin and methamphetamine. Following her prison sentence, Pagano will serve 4 years of supervised release. She appeared at the sentencing hearing in custody, and was remanded to the custody of the U.S. Marshals Service at the hearing’s conclusion.
According to the facts contained in Pagano’s plea agreement, on May 31, 2018, an individual with the initials E.N., a woman named Ariel Walker and an individual with the initials C.T., drove to Westminster to buy heroin from Kayla Pagano. E.N. paid Walker approximately $80 to purchase the heroin and approximately $40 for arranging the drug deal. Walker then met with Pagano at a Circle K in Westminster where she sold Walker approximately .20 grams of heroin and approximately .20 grams of methamphetamine. E.N. used the heroin and then passed out. Police later found E.N.’s dead body dumped in an alley in Denver. The heroin which caused E.N.’s death was the heroin Walker purchased from Pagano outside the Circle K and then distributed to E.N. Walker has pleaded guilty to distribution of heroin resulting in death in criminal case number 18-cr-414-RBJ and is scheduled to be sentenced on December 16, 2019.
“I hope drug dealers are getting the message: when someone dies as a result of your conduct, you will be held accountable and you will do time in federal prison,” said U.S. Attorney Jason Dunn.
“Today’s sentencing of Kayla Pagano illustrates the FBI’s commitment to investigating those that enable the heroin epidemic and the consequential tragedies resulting from this growing problem,” said FBI Denver Special Agent in Charge Dean Phillips. “We extend our gratitude to the Denver Police Department, the DEA, and the U.S. Attorney’s Office for their invaluable investigatory and prosecutorial assistance in this case.”
This case was investigated by the Denver Police Department with assistance from the FBI Denver OCDETF Strike Force. The defendant was prosecuted by Assistant U.S. Attorney Peter McNeilly.
Colorado Doctor Sentenced to Federal Prison for Illegally Distributing Oxycodone, Defrauding Employee Benefit Plans, and Falsifying Patient FilesRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Dr. John Van Wu, age 50, of Golden, was sentenced today by U.S. District Court Judge R. Brooke Jackson to serve 51 months (4 years and 3 months) in federal prison for mail fraud and obstruction of justice charges as well as distributing oxycodone outside the usual course of medical practice. Following the prison sentence, Wu will serve 3 years on supervised release. Wu was also ordered to pay restitution of $94,829.38. The defendant appeared at the sentencing hearing in custody, and was remanded to the custody of the U.S. Marshals after the sentence was pronounced.
Wu was convicted of mail fraud and obstruction of justice charges following a jury trial in April, 2019. He later pleaded guilty, pursuant to a plea agreement, to a charge of distributing oxycodone outside the usual course of medical practice and obstruction.
According to documents and testimony presented at trial, Wu operated a medical clinic at locations in west Denver between January 2011 and March 2015. During that time period the defendant devised a scheme in which he billed employee benefit programs and insurers for services that were never actually rendered nor medically necessary. During the trial over a dozen of the doctor’s former patients testified that they did not have many of the ailments described in their medical files and did not get the expensive procedures billed to insurance. For example, patient files described days-long nosebleeds followed by nasal cauterization procedures, but patients testified that neither happened. Other files described diagnoses related to migraine headaches and frequent administrations of injections to treat those agents. Patients testified that those, too, did not occur. Testimony at trial also established that the defendant billed approximately 95% of his office visits as the longest, most expensive, and highest-reimbursing type of office visit, despite the fact that his patients had relatively simple and routine ailments that did not need that level of service. During his testimony, the defendant admitted that he shredded patient files while the investigation was ongoing.
After the trial, pursuant to the plea agreement filed in Court, the defendant pleaded guilty to a separate charges of distributing oxycodone outside the usual course of medical practice and for no legitimate reason. According to the facts contained in that plea agreement, Wu also falsified a corresponding patient file, documenting that a patient needed oxycodone when he fell down some stairs causing lower back pain so bad that the patient could “barely stand” and was “moving around in his wheelchair.” However, the patient had never used or been confined to a wheelchair and had never used oxycodone.
The defendant does not currently have a license to practice medicine. As part of the plea agreement, Wu agreed to never again apply for a license to practice medicine in any jurisdiction. He also agreed to pay restitution to the victims of his fraud.
“Doctors take an oath – and in this case Dr. John Van Wu disregarded it,” said U.S. Attorney Jason Dunn. “To be clear, he lied to the government and sold dangerous narcotics for no medical purpose. He deserves this prison sentence.”
“The Honorable Judge Brooke Jackson emphasized the harm to the community done by Dr. John Wu with the prescribing/distribution of Oxycodone for no legitimate purpose,” said DEA Special Agent in Charge Deanne Reuter. “Dr. Wu, a registrant, who not only pled guilty to Distribution of a Controlled Substance but was also found guilty of insurance fraud and obstruction of justice, failed the community he was entrusted to help. The DEA will continue to investigate registrants who cause harm to the public and fuel the opioid epidemic. This case shows the opioid epidemic is being fought at all levels to include professionals in a position of trust.”
“Healthcare fraud victimizes the individuals involved and the community at-large,” said U.S. Department of Labor Employee Benefits Security Administration (EBSA) Regional Director Jim Purcell in Kansas City. “Fraudulently billing for unnecessary or non-existent healthcare treatments passes the costs on to others wishing to obtain health insurance. The Department of Labor remains committed to ensuring that benefits are not abused, and anyone found guilty of committing fraud is held accountable.”
This case was jointly investigated by EBSA and the Drug Enforcement Administration.
The defendant was prosecuted by Assistant United States Attorneys Bryan D. Fields and Conor Flanigan.
Billboard Licensing Company Pays $2.85 Million to Resolve Allegations That It Defrauded the Postal ServiceRead the Press Release
DENVER -- Jason Dunn, the United States Attorney for the District of Colorado, today announced a resolution that resolves fraud allegations against All Vision LLC (“All Vision”), a company that manages a portfolio of licenses for billboards and other outdoor advertising. Under the resolution announced today, All Vision will pay $2.85 million to settle allegations that the company made false statements and improperly withheld money owed to the United States Postal Service (“U.S. Postal Service”) in connection with the company’s marketing and management of various commercial outdoor advertising licenses. The settlement is in addition to approximately $5.2 million that the company has already paid back to the U.S. Postal Service.
The U.S. Postal Service leases land to billboard companies for advertising. All Vision manages licenses for billboards and other commercial outdoor advertising in locations such as New York, Texas, Minnesota and Missouri. All Vision formerly maintained an office and conducted its accounting operations in Highlands Ranch, Colorado. In 2009 and 2011, the U.S. Postal Service entered into contracts with All Vision for All Vision to manage and market a portfolio of billboard advertising licenses with other companies. Under the contracts, All Vision was required to collect payments, including percentage rent and lump sum fee payments, from the companies. Once collected, All Vision was required to timely forward the payments, less its applicable fees, to the U.S. Postal Service.
The United States’ allegations in this matter relate to All Vision’s conduct under those contracts. The United States alleged that the U.S. Postal Service relied upon All Vision to collect and timely remit payments. Throughout the contract terms, however, All Vision misrepresented the actual amounts it had collected in various reports that it sent to the U.S. Postal Service. In addition, certain employees at All Vision knowingly withheld and failed to remit and report millions of dollars in percentage rent and lump sum fee payments owed to the U.S. Postal Service.
All Vision voluntarily repaid the U.S. Postal Service over $5.2 million in past-due amounts that the company identified through its own investigation, and has agreed to pay an additional $2.85 million to resolve the matter. All Vision also provided cooperation with the United States’ civil investigation.
The claims settled by this civil agreement are allegations. In entering into this civil settlement, All Vision did not admit liability.
“Companies entrusted with taxpayer money have an obligation to safeguard it,” said U.S. Attorney Jason Dunn. “When they fail to do so, we will aggressively seek to hold them accountable.”
“We are gratified to have contributed to this investigation and applaud the exceptional work by the investigative and legal teams for safeguarding the contracting process and overall program costs,” said Scott Pierce, Special Agent in Charge, U.S. Postal Service Office of Inspector General. “The USPS OIG will continue to seek out and aggressively investigate those who would engage in activities detrimental to the U.S. Postal Service.”
The United States was represented in this matter by Assistant United States Attorney Lila Bateman.