District of Colorado
Press releases recorded for this federal judicial district.
Statement of U.S. Attorney Jason Dunn on the Passing of Senior Judge Wiley Y. DanielRead the Press Release
While many of us work to make a difference in the legal profession, the Honorable Senior Judge Wiley Y. Daniel led the way. He was a trailblazer. Since arriving in Colorado in 1977, he pushed our state to become better - and thanks to him - it did. We celebrate his life of leadership, as a lawyer who was the first African American elected President of the Colorado Bar Association, appointed District Court Judge to the United States District Court and, later, the Chief Judge of that Court. Judge Daniel always worked to make things better and he succeeded, often with a warm smile that made you glad to be in his presence. We mourn his passing and will miss him dearly. But we are all grateful to have appeared before him, and to have been shaped by his vision and his leadership.
Weld County Woman Sentenced to Federal Prison for Stealing over $180,000 from the United States Postal Service Through Hundreds of False Insurance ClaimsRead the Press Release
DENVER – Lorrine Kimmel, age 48, of Weld County, Colorado, was sentenced today by Senior U.S. District Court Judge Wiley Y. Daniel to serve 15 months in federal prison, followed by 3 years on supervised release for defrauding the U.S. Postal Service (USPS) by mail fraud, U.S. Attorney Jason Dunn and U.S. Postal Service Office of Inspector General Special Agent in Charge of the Western Area Field Office John D. Masters announced today. The defendant was also ordered to pay $188,575 in restitution. Kimmel appeared at the sentencing hearing free on bond, and was ordered to report to a Bureau of Prison facility once one is designated.
Kimmel was charged by Information on August 29, 2018. She pled guilty to mail fraud on November 8, 2018. She was sentenced today, May 7, 2019.
According to court documents, including the stipulated facts contained in the plea agreement, between October 2014 and July 2018, the defendant engaged in a complex scheme to defraud the USPS by filing 770 false insurance claims where she claimed that the contents of parcels she had mailed were damaged.
The defendant initiated each false claim by mailing as many as ten or more packages per week from her local post office in Kersey, Colorado, or a larger, nearby post office in Greeley. She typically claimed that the items she was shipping were purchased by customers and were damaged in transit. In fact, both of those facts were false. The recipients listed on most of the parcels were either fictitious individuals or entities that had never ordered anything from Kimmel or her business. She then purchased insurance on each of those packages, and attempted to defeat detection by using variants on addresses and email addresses for each of those packages.
During the three year period, Kimmel filed insurance claims with the U.S. Postal Service totaling $227,005, and, of those claims, she was paid $188,575. She used this scheme to obtain tax-free money to finance her personal expenses.
“The Postal Service plays a very important role in our country,” said U.S. Attorney Jason Dunn. “A fraud upon it is a fraud upon all of us that use the USPS and pay for its services.”
“One of the missions of the U.S. Postal Service Office of inspector General (OIG) is to help safeguard the USPS from external crimes, such as fraud. OIG Special Agents vigorously investigate these cases,” said Special Agent-in-Charge John D. Masters. “This sentencing serves as a reminder and deterrent to anyone thinking this type of behavior is acceptable. Such actions come with consequences. The OIG’s efforts, with the support of the United States Attorney’s Office, District of Colorado, help maintain the integrity of the Postal Service.”
This case was investigated by the U.S. Postal Service Office of the Inspector General. The defendant was prosecuted by Assistant U.S. Attorney Hetal Doshi.
Owners of Colorado Biomass Plant Pay $2.6 Million to Resolve Allegations They Defrauded A Renewable Energy ProgramRead the Press Release
DENVER – Three companies and two individuals have agreed to pay a total of $2.6 million to resolve allegations that they violated the False Claims Act by obtaining reimbursements from a federal renewable energy program to pay for costs they never actually incurred, U.S. Attorney Jason Dunn announced today.
Under a program created by Congress in the American Recovery and Reinvestment Act of 2009, companies that place into service “renewable energy properties,” including biomass power plants, can apply to get reimbursements for up to 30 percent of the costs they incurred in placing those properties into service. Companies submitted applications for these payments to the National Renewable Energy Laboratory (“NREL”) in Golden, Colorado. The funds for the reimbursement came from the U.S. Treasury. Those funds were set aside under section 1603 of the 2009 Act, under a program commonly known in the renewable energy industry as the “1603 Program.”
The resolution at issue involves three companies that developed a biomass power plant in Gypsum, Colorado. The companies were Eagle Valley Clean Energy, LLC (“Eagle Valley”), its parent company Evergreen Clean Energy Corporation (the “Corporation”), and Evergreen Clean Energy, LLC (“Evergreen”). Dean Rostrom and Kendric Wait were principals and had ownership interests in the three corporate entities.
The United States contends that in 2014, Eagle Valley applied to the 1603 Program, seeking reimbursement for its investment in the Gypsum plant. As part of its application, Eagle Valley contracted with Evergreen to perform “development services.” The contract entitled Evergreen to a fee based on a percentage of the cost of building the plant. Based on this contract, Treasury reimbursed Eagle Valley 30 percent of the costs associated with the fee Eagle Valley would pay Evergreen under the development services agreement. After receiving these funds from Treasury, Eagle Valley did not pay the fee. Instead, it wrote off the development fee owed to Evergreen, and Evergreen never requested or demanded payment of the fees Eagle Valley owed Evergreen under the contract. Because the fee was written off, Treasury, in effect, reimbursed Eagle Valley for 30% of a payment Eagle Valley never made. Once Eagle Valley decided that it would not be paying the Evergreen the fee for the development services, Eagle Valley was required to notify Treasury and return the money it received. But Eagle Valley never notified Treasury, and the United States alleged that this conduct violated the False Claims Act.
Under the terms of the settlement agreement, Eagle Valley paid $2,350,000, and Dean Rostrom and Kendric Wait each paid $125,000 to the United States.
“This program had important goals: jump-starting the economy during the Great Recession, and helping companies that took real steps to move our renewable energy industry forward. Taxpayers paid for that program. Companies and individuals who get taxpayer money from government programs like this one, but don’t do what they promised to do, will be held to account and will face consequences,” said U.S. Attorney Jason Dunn.
Treasury Inspector General Eric M. Thorson thanked the U.S. Attorney’s Office and the U.S. Department of the Treasury for their hard work and partnership on this case and previous cases involving the American Recovery and Reinvestment Act. He stated, “this settlement reinforces the commitment of the Treasury OIG to pursue cases against those who defraud the U.S. Treasury Department and misuse public funds.”
The claims resolved by this settlement are allegations only.
This matter was investigated by the U.S. Department of the Treasury’s Office of Inspector General. It was handled by Assistant U.S. Attorney Zeyen Wu.
New York Man Sentenced After Being Caught En Route to Burning Man with Smorgasbord of Illegal DrugsRead the Press Release
DENVER – Alexander Zelyakovsky, age 46, of New York, was sentenced today by Senior U.S. District Court Judge J. Thomas Marten of the District of Kansas to serve 34 months in federal prison followed by 3 year on supervised release with the first 6 months in home detention for possession with intent to distribute five different controlled substances, announced U.S. Attorney Jason Dunn and Homeland Security Investigations Denver Special Agent in Charge Steven Cagen. The defendant was on his way to the 2018 Burning Man Festival in Nevada to sell the drugs when he was stopped and arrested in Colorado. The defendant appeared at the sentencing hearing in custody and was remanded at its conclusion.
Zelyakovsky was first charged by Criminal Complaint on August 27, 2018. He was indicted by a federal grand jury on September 18, 2018. The indictment was superseded by the filing of an Information on February 20, 2019. The defendant also pled guilty to the Information before Magistrate Judge Gordon P. Gallagher on that day.
According to court documents, including the stipulated facts contained in the plea agreement, on August 25, 2018, the defendant was driving a truck containing several pounds of controlled substances and $26,745 in cash concealed in a compartment in the tailgate of the truck. The defendant intended to distribute the controlled substances at the Burning Man Festival in Nevada, and use the cash he possessed and proceeds from the distribution of the controlled substances to purchase additional quantities of controlled substances for later distribution.
While the defendant drove through Colorado, a Colorado State Patrol (CSP) trooper stopped the defendant for a traffic infraction. During the course of the stop, the defendant consented to a search of the truck he was driving. The trooper noted the tailgate of the truck was unusually heavy and looked behind a factory panel, discovering the controlled substances and currency concealed within. Zelyakovsky was transporting 1125 grams of Ecstasy, 376 grams of Psilocyn mushrooms, .0173 grams of LSD, 229 grams of cocaine and 331 grams of Ketamine.
“Thanks to an alert CSP officer, these drugs are off the streets,” said U.S. Attorney Jason Dunn. “Drug dealers should know that trying to pass through Colorado is risky business. We will catch them and we will prosecute them.”
“This drug dealer had been making huge profits by selling illicit drugs as a multi-state broker,” said Special Agent In Charge Steven Cagen, Homeland Security Investigations Denver. “Now he’s lost his profits, and he’s lost his freedom for 34 months.”
In December 2017, the defendant was stopped by the New York Police Department for a traffic stop. During that stop officers found a marijuana cigarette in the cup holder in the car. After he was ordered out of the car, the defendant fled on foot. After a short chase Zelyakovsky was caught. Around that time officers saw that the defendant had a bag. A search of the bag revealed $11,000 in cash and vials of cocaine for future distribution. Eventually the defendant was released from custody. For purposes of efficiency, the defendant waived venue and pled guilty to the New York offenses in Colorado.
This case was investigated by the New York Police Department, the Colorado State Patrol, and HSI Denver. The defendant was prosecuted by Assistant U.S. Attorney Jeremy Chaffin.
Former Air Force Academy Cadet Convicted of Raping Fellow CadetRead the Press Release
DENVER – Alvaro Pablo Velarde, age 20, of Lima, Peru, was found guilty today of two counts of aggravated sexual abuse and one count of abusive sexual contact for raping a fellow cadet, U.S. Attorney Jason Dunn announced. The guilty verdicts followed a four-day jury trial in front of U.S. District Court Judge Christine M. Arguello in Denver, Colorado. Velarde was a student at the Air Force Academy, as was the victim. The defendant was in custody before and during the trial and was remanded at the trial’s conclusion.
Velarde was first charged by Criminal Complaint on October 25, 2018. He was then indicted by a federal grand jury in Denver on November 8, 2018. The jury trial started on April 29, 2019. The jury’s verdict was announced today, May 2, 2019. The defendant is scheduled to be sentenced on July 30, 2019.
According to court documents and facts presented by prosecutors at trial, on October 23, 2018, at the Air Force Academy in Colorado Springs, Velarde, a cadet, violently raped a female cadet in her dorm room. He ignored multiple pleas to stop the sex assault. Afterward, the victim experienced severe pain and immediately sought medical attention. A sexual assault examination revealed physical injuries sustained during the sexual assault, and a doctor at the Air Force Academy later diagnosed her with a concussion sustained during the assault.
After the incident, but prior to trial, Velarde was disenrolled from the Air Force Academy.
“The conduct in this case is reprehensible not only because of the nature of the crime itself, but because of where it occurred,” said U.S. Attorney Jason Dunn. “Our service academies are national treasures. We send our best and brightest young adults there to become soldiers and to serve our country. It is the last place one should be attacked so violently. We are pleased that justice was done. The victim showed tremendous courage throughout this ordeal and I am proud that she will someday be defending our country as an Air Force officer.”
This case was investigated by the Air Force Office of Special Investigations. The jury trial was handled by Assistant U.S. Attorneys Peter McNeilly and Emily Treaster.
Parker Doctor Sentenced for Illegally Distributing Controlled SubstancesRead the Press Release
DENVER – Dr. John Alan Littleford, DO, age 73, of Manhattan, Kansas and formerly of Parker, Colorado, was sentenced yesterday by Senior U.S. District Court Judge Robert E. Blackburn to serve 87 months in federal prison followed by 3 years on supervised release for charges related to the illegal distribution of controlled substances and money laundering, U.S. Attorney Jason Dunn, DEA Denver Division Special Agent in Charge Tim McDermott and IRS Criminal Investigation Special Agent in Charge Steven Osborne announced. Littleford was ordered to report to a facility once designated by the Bureau of Prisons.
According to the stipulated facts contained in the defendant’s plea agreement as well as court filings, Dr. Littleford owned and operated the Pain & Injury Clinic in Parker, Colorado. Dr. Littleford held himself out as a practitioner in the field of “pain management,” although he did not have any certification in that field and had not completed a medical residency which would have been directly applicable to the field of pain management.
The DEA opened a criminal investigation into Dr. Littleford in late February 2012 because doctors and pharmacists throughout the Denver metropolitan area expressed concerns about the prescribing practices they were seeing and local law enforcement had repeated encounters with Dr. Littleford’s patients. On October 31, 2012, the Colorado Medical Board issued an Order of Summary Suspension which suspended Dr. Littleford’s license to practice medicine in Colorado, effective on November 5, 2012, until final resolution of additional proceedings for suspension or revocation. On November 9, 2012, the defendant voluntarily surrendered his DEA registration. On November 14, 2012, the defendant entered into a Stipulation and Final Agency Order with the Colorado Medical Board which voluntarily and permanently relinquished his license to practice medicine in Colorado, effective November 16, 2012.
Evidence offered in support of Littleford’s sentencing showed he routinely prescribed large quantities of opioids, often in conjunction with benzodiazepines, without any diagnosis and with very little documentation in the patient files. On one occasion, Littleford’s notes which accompanied prescriptions for 840 oxycodone 30mg tablets; 360 Percocet tablets; 120 Oxycontin 80mg tablets; 240 MSContin 100mg tablets; 240 Klonopin 2mg tablets noted that Littleford’s diagnosis for the patient was simply, “?”. Littleford’s file for that same patient also included strong warnings from other physicians who had seen the patient, including one which said, “these doses of medication from my perspective were incompatible with his long-term survival.” That patient died just over a month later from oxycodone toxicity as a result of taking controlled substances Littleford prescribed. Littleford pled guilty to distributing controlled substances to that patient and, through his plea agreement, agreed the Court could consider his distribution of controlled substances to that patient on several occasions in adjudging an appropriate sentence.
Littleford regularly provided controlled substances prescriptions to patients well before their prior prescriptions should have run out. The evidence presented at Littleford’s sentencing showed those patients occasionally presented with withdrawal symptoms and clear drug-seeking behavior. One such patient, whom Littleford’s plea agreement agreed the Court could consider as relevant at sentencing, died of complications from acute oxycodone toxicity after taking oxycodone Littleford prescribed. The progress note associated with the final prescriptions Littleford wrote that patient said the patient’s chief complaint was that he was “begging to feel things.” In response to that complaint, Littleford provided the patient with prescriptions for 300 oxycodone 30mg tablets and 10 Fentora (fentanyl) 200mcg tablets.
Littleford did not taper or reduce the amounts of controlled substances he was prescribing to patients who were physically deteriorating. Instead, he repeatedly justified his prescriptions of controlled substances to outside insurance companies and courts before whom his patients had pending criminal cases. For several patients, his files were characterized by a remarkable lack of documentation related to the prescriptions he wrote for controlled substances.
Littleford also pled guilty to and was sentenced for money laundering in order to promote his illegal distribution of controlled substances at the Pain & Injury Clinic.
In accordance with Littleford’s plea agreement, the Court considered his distribution of controlled substances to seven different individuals he saw at the Pain & Injury Clinic—involving more than 14,000 pills of various opioids, amphetamines, benzodiazepines and muscle relaxants as well as fentanyl patches and hundreds of vials of injectable meperidine.
“Doctors who prescribe narcotics outside the scope of accepted medical practice are adding to the opioid epidemic,” said U.S. Attorney Jason Dunn. “Dr. Littleford’s prosecution is part of our increased effort to stop the harm of prescription drugs and protect those vulnerable to addiction.”
“The continued successful prosecution of doctors who prescribe outside the scope of medical necessity shows the opioid epidemic is far from over,” said DEA Denver Division Special Agent in Charge Tim McDermott. “DEA has and will continue to use all resources to combat this epidemic.”
“Doctors who illegally distribute prescription drugs are a major contributor to the current opioid crisis and a scourge on society. Without the ill-gotten gains from their illegal distribution, many of these doctors could not finance their criminal activity. IRS Criminal Investigation is committed to investigating the financial aspect of those crimes and putting those individuals in jail,” said Steven Osborne, Special Agent in Charge of IRS Criminal Investigation.
This case was investigated by the DEA Denver Division and IRS Criminal Investigation.
The defendant is being prosecuted by Assistant U.S. Attorneys Peter McNeilly and Jaime Peña.
Veterinarian Pays $226,000 and Surrenders License to Resolve Allegations That He Failed to Properly Track and Control OpioidsRead the Press Release
DENVER – Dr. Greg Collins, a licensed veterinarian and the founder and owner of the Louisville Family Animal Hospital in Louisville, Colorado, has agreed to pay the United States $226,000, surrender his Drug Enforcement Administration (“DEA”) registration, and permanently relinquish his Colorado veterinary medicine license to settle allegations that he violated multiple provisions of the Controlled Substances Act (“CSA”).
According to the government, Dr. Collins, over multiple years of practicing as a veterinarian and while running an active animal hospital, failed to properly inventory, track, and maintain control over controlled substances, including thousands of units of opioids such as fentanyl, hydromorphone, and morphine. By not properly inventorying, tracking, and maintaining control over the controlled substances, he violated the Controlled Substances Act. These violations were discovered by DEA investigators during an on-site inspection of Dr. Collins’ veterinary hospital, which included an audit of his drug control practices. DEA investigators found CSA violations with respect to all twelve of the twelve controlled substances audited. DEA also found failures to properly destroy controlled substances.
According to the government, the DEA’s investigation revealed that Dr. Collins was self-abusing these controlled substances. His failure to properly inventory, track, and maintain control over large quantities of potent opioids also created a danger of abuse of unaccounted-for opioids by others.
The risk of abuse of unaccounted-for opioids is acute in light of the well-documented opioid epidemic in the United States and Colorado. From 1999 to 2017, more than 700,000 Americans have died from a drug overdose. 70,237 drug overdose deaths occurred in the United States in 2017, six times higher than the rate in 1999, according to the Centers for Disease Control and Prevention (the “CDC”). Two-thirds of these deaths can be attributed to opioids. According to the CDC, on average, 130 Americans die every day from an opioid overdose.
In Colorado, there were 558 recorded opioid overdose deaths in 2017 from both prescription opioids and illegal opioids such as heroin, according to the Colorado Department of Human Services. From 2012 to 2016 the number of heroin-related deaths in Colorado increased from 91 to 234 and deaths related to synthetic opioids rose from 52 to 72.
“When medical professionals like Dr. Collins don’t track and control their opioids carefully, they are contributing to the scourge of opioid abuse,” said U.S. Attorney Jason Dunn. “This serious conduct will cost Dr. Collins more than just a hefty monetary penalty. He has permanently lost his medical license and drug registration.”
“The Drug Enforcement Administration is committed to protecting the public and holding those medical professionals accountable for their actions,” said DEA Special Agent in Charge Tim McDermott.
This matter was investigated by the U.S. Drug Enforcement Administration, Diversion Control Division, in conjunction with the United States Attorney’s Office.
The statements in this release are only allegations. In entering into a civil settlement, Dr. Collins did not admit to liability, and the agreement indicates that the parties entered into the settlement to avoid the uncertainty and expense of further litigation.
Assistant U.S. Attorney Jacob Licht and Deputy Civil Chief Amanda Rocque handled this matter on behalf of the United States Government.
U.S. Attorney Announces Four Promotions and Ten New HiresRead the Press Release
DENVER – U.S. Attorney Jason Dunn today announced the promotion of four Assistant U.S. Attorneys to supervisory posts within the Criminal Division.
- Assistant U.S. Attorney Brad Giles was promoted to Chief of the newly formed Narcotics Section
- Assistant U.S. Attorney Peter McNeilly was promoted to Deputy Chief of the newly formed Narcotics Section
- Assistant U.S. Attorney Garreth Winstead was promoted to Chief of the newly formed Violent Crime and Immigration Enforcement Section
- Assistant U.S. Attorney Valeria Spencer was promoted to Deputy Chief of the newly formed Violent Crime and Immigration Enforcement Section
In addition to those management promotions, the following 10 individuals were hired as new Assistant U.S. Attorneys:
- Aaron Teitelbaum came to the office after serving as Assistant District Attorney in the Manhattan District Attorney’s Office in New York. Prior to that he clerked for 9th Circuit Court of Appeals Judge Jacqueline H. Nguyen and Judge Christina A. Snyder of the Central District of California. He earned his law degree from Stanford Law School. Aaron is assigned to the office’s Narcotics Section of the Criminal Division.
- Justin DeRosa came to the office after serving as Deputy District Attorney in Colorado’s 4th Judicial District. He earned his law degree from Boston College Law School. Justin is assigned to the office’s Narcotics Section of the Criminal Division.
- Jessica Elliott came to the office after serving 5 years as an Assistant U.S. Attorney for the Southern District of Florida, focused on civil health care fraud cases. Prior to that she spent 7 years in private practice. Jessica earned her law degree from the University of Connecticut School of Law. She is assigned to the office’s Civil Division.
- Rajiv Mohan came to the office after 5 years in a private practice. He clerked for 6th Circuit U.S. Court of Appeals Judge Raymond Kethledge and earned his law degree from Harvard Law School. Rajiv is assigned to the office’s Violent Crime and Immigration Enforcement Section of the Criminal Division.
- Logan Steiner came to the office after spending 6 years in private practice. She clerked for Seventh Circuit Judge Diane Sykes and for Judges Thomas Durkin and Virginia Kendall of the Northern District of Illinois. She earned her law degree from Harvard Law School. Logan is assigned to the office’s Civil Division.
- Kyle Brenton came to the office after 9 years in private practice. He earned his law degree from the University of Minnesota Law School before clerking for 10th Circuit Court of Appeals Judge David Ebel of the District of Colorado. Kyle is assigned to the office’s Civil Division.
- Chandra Aitchison came to the office after 4 years in private practice. She earned her law degree from Georgetown University Law Center. Chandra is assigned to the office’s Civil Division.
- Kelly Winslow came to the office after 6 years in private practice. She earned her law degree from Northwestern University. Kelly is assigned to office’s Violent Crime and Immigration Enforcement Section of the Criminal Division.
- Elizabeth Young came to the office after clerking for U.S. District Court Magistrate Judges Kristen Mix and Michael Watanabee of the District of Colorado. Prior to that she spent over 6 years in private practice. Elizabeth earned her law degree from New York University School of Law. She is assigned to the office’s Asset Recovery Division.
- Jane Bobet came to the office after 3 years in private practice. She clerked for Southern District of New York Magistrate Judge Gabriel Gorenstein after earning her law degree from Cornell Law School. She is assigned to the office’s Civil Division.
This group of talented individuals are led by U.S. Attorney Dunn, First Assistant U.S. Attorney Matt Kirsch, and Executive Assistant U.S. Attorney J. Chris Larson. Suneeta Hazra will continue to lead the Criminal Division.
There are approximately 180 people in the Colorado U.S. Attorney’s office, with 81 of them being Assistant U.S. Attorney’s.
“I’m excited to welcome these four to my leadership team and to welcome this group of bright new Assistant U.S. Attorneys to the office representing the United States and the people of Colorado in federal court,” said U.S. Attorney Dunn.
Colorado Doctor Convicted of Health Care FraudRead the Press Release
DENVER – John Van Wu, age 49, of Golden, was found guilty of mail fraud and obstruction of justice charges following a one week trial before U.S. District Court Judge R. Brooke Jackson announced U.S. Attorney Jason Dunn. Wu is being held in custody and is pending a trial on additional counts of distributing oxycodone outside the usual course of medical practice and obstruction.
According to court records and argument 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 and not medically necessary. He also responded to a grand jury subpoena asking for patient files. During the trial over a dozen of the doctor’s former patients testified that they did not have many of the ailments described in those files and did not get the expensive procedures billed to insurance. For example, the 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.
The defendant is separately charged with distributing oxycodone outside the usual course of medical practice and for no legitimate reason and for falsifying patient charts related to those prescriptions. According to the allegations in the indictment, the defendant sold oxycodone prescriptions for cash. Trial on those counts is scheduled to begin on July 8, 2019.
“Our healthcare system can’t function properly unless doctors act with honesty and integrity,” said U.S. Attorney Jason Dunn. “When a doctor violates that trust and breaks the law, we will pursue them vigorously. This jury victory is important, and the next trial regarding opioids allegedly wrongfully prescribed by this doctor is equally important.”
“This trial focused on patient identities being used to bill insurance for procedures not performed and obstruction of justice,” said DEA Denver Division Special Agent in Charge Tim McDermott. “A separate trial is scheduled related to the alleged distribution of Oxycodone. DEA and its partners are committed to doing all we can to end this opioid crisis.”
“Healthcare fraud victimizes the individuals involved and the community at-large,” said U.S. Department of Labor Employee Benefits Security Administration Regional Director Jim Purcell, in Kansas City. “The Department of Labor remains committed to ensuring that health benefits are not abused and anyone found guilty of committing fraud will be held accountable.”
This is part of an on-going joint investigation by the U.S. Department of Labor Employee Benefits Security Administration, Drug Enforcement Administration, Broomfield Police Department, Federal Bureau of Investigation, and Internal Revenue Service.
The defendant is being prosecuted by Assistant United States Attorneys Bryan D. Fields and Conor Flanigan.
The defendant is presumed innocent on the remaining counts unless and until proven guilty in a court of law.
U.S. Attorney’s Office Resolves Mineral Trespass Investigation Against Colorado Oil and Gas CompanyRead the Press Release
DENVER – SRC Energy, Inc., a Colorado-based oil and gas company, has agreed to pay $723,236 to resolve mineral trespass allegations regarding two oil and gas wells unlawfully drilled in Weld County, Colorado.
The United States contends that in 2014 and 2015, SRC drilled oil and gas wells into railroad right-of-way C668, and later removed federal minerals through those wells. The minerals beneath the railroad right-of-way were reserved to the United States. SRC failed to lease those minerals or seek permission from the Bureau of Land Management prior to drilling the wells. Because federal investigators believed this trespass was willful, the United States demanded the full value of 100% of the federal minerals extracted during the trespass period, without any offset for drilling or production costs.
“Protecting the public includes protecting our federal lands and federal mineral interests. Oil and gas companies must be careful not to take federal resources without permission. If they do, we will aggressively seek redress on behalf of the United States,” said U.S. Attorney Jason Dunn.
Ron Gonzales, Special Agent in Charge of the U.S. Department of Interior, Office of Inspector General's Energy Investigations Unit, stated, “Our office is committed to work collaboratively and diligently with DOJ and our federal partners at the Department of Interior to ensure that revenues generated from public resources are accounted for on behalf of the American taxpayers.”
This case was handled by Assistant U.S. Attorney Andrea Wang.
Colorado Springs Chiropractor Sentenced for Conspiracy and Filing False Income Tax ReturnsRead the Press Release
DENVER – Thomas Forster Gehrmann, Jr., age 45, of Colorado Springs, Colorado was sentenced by U.S. District Court Judge R. Brook Jackson to serve 24 months in federal prison followed by 3 years on supervised release for conspiracy to defraud the United States and filing three false income tax returns with the Internal Revenue Service, announced U.S. Attorney Jason Dunn and IRS Criminal Investigation Special Agent in Charge Steven Osborne. Gehrmann was indicted on July 22, 2015. He was found guilty after a six-day trial before Judge Jackson on November 6, 2018. Gehrmann was sentenced on April 4, 2019. A hearing to determine restitution is scheduled for May 23, 2019.
According to information contained in the indictment and evidence presented at trial, from January 2007 until September 2011, Gehrmann conspired to defraud the U.S. by filing false U.S. Individual Income Tax Returns for the calendar years 2007, 2008, 2009 and 2010 after failing to disclose to his CPA income diverted from cash and checks.
Atlas Chiropractic Center at Briargate, Inc. and SpineMed Decompression Centers of Colorado, LLC (collectively, the “Atlas Entities”) are located in Colorado Springs, Colorado, and are in the business of providing chiropractic and spine-adjustment related services. During times relevant to this indictment, the Atlas Entities shared employees, business bank accounts, an outside bookkeeper, a Certified Public Accountant (“CPA”), and other resources, which were jointly managed by Gehrmann.
Patients of the Atlas Entities typically checked in for their appointments at a reception desk, completed requested paperwork, and were seen by Gehrmann. Payments for the services were made by means of check, cash, credit card or a third-party payer, such as an insurance company or an attorney. A sign was placed on the Atlas Entities reception desk that directed patients to make their checks payable to the individual chiropractic provider, rather than one of the Atlas Entities. Employees would copy each check received from a patient or third party payer, and compile copies of the checks in the Atlas Entities’ check binder. Daily spreadsheets were created and maintained in the binder, known as the “Daily Stats Sheets.”
Checks made payable to Atlas or SpineMed were regularly deposited in the business bank accounts for the Atlas Entities, together with patients’ payments via credit card. The actual cash and checks made payable to Gehrmann were placed into a receptacle known as the “cookie jar,” which was typically kept in Gehrmann’s office. Cash payments were kept separately and divided between the defendant and two other chiropractors. Once each week they divided up the contents of the “cookie jar” between themselves and that for certain periods, Gehrmann noted the amount that each person received as his share for that week in a book titled “Secret Records.”
Statements reflecting the deposits into the Atlas Entities’ business bank accounts were sent to the outside bookkeeper, who understood those were the total business income for the Atlas Entities. Those records were in turn supplied to the CPA for his use in preparing documents and filings including partnership tax filings for the Atlas Entities, and individual tax returns of Gehrmann. He did not send to the Atlas Entities’ outside bookkeeper or the CPA the check binders, the Daily Stats Sheets, or any other documents that included records reflecting all payments by Atlas Entities’ patients.
“On this tax day, it is important to remind would-be tax-cheats that we will aggressively investigate and prosecute tax fraud cases and that those found guilty can face significant jail time,” said U.S. Attorney Jason Dunn.
"Tax fraud is not a victimless crime,” said Steven Osborne, IRS Criminal Investigation Special Agent in Charge. “This is an important victory for America’s taxpayers who play by the rules and have no tolerance for those who shirk their tax responsibilities. The courts have overwhelmingly and consistently shown that you will be held accountable for such actions, and today's sentencing is a costly reminder."
Carlson, who pled guilty to filing a false tax return on October 24, 2018, is scheduled to be sentenced by Judge Jackson on April 17, 2019.
This case was investigated by IRS Criminal Investigation.
This case was prosecuted by Assistant U.S. Attorneys Suneeta Hazra, Bryan Fields, and Conor Flanigan.
Man Who Pretended to Be Blind Sentenced to Year in Prison After Collecting Nearly $1.3 Million in Veterans Affairs DisabilityRead the Press Release
DENVER -- Mike Rodolfo Blea, of Northglenn, Colorado, was sentenced Wednesday by Senior U.S. District Court Judge Wiley Daniel to serve twelve months in prison, followed by three years on supervised release for defrauding the U.S. Department of Veterans Affairs (VA) out of nearly $1.3 million by pretending to be blind. Blea must also pay $1,273,180.44 in restitution to the agency. The announcement was made today by U.S. Attorney Jason Dunn. Blea appeared at the hearing free on bond. He was ordered by Judge Daniel to report to a Bureau of Prison Facility once designated.
According to the stipulated facts in the plea agreement, Blea was a Vietnam Veteran who began receiving VA disability payments in 1969 for a visual impairment. He did in fact have a minor visual impairment due to macular holes in his retinas, however at least by 1983 he began exaggerating how bad his eyesight was, with the result being that the VA was paying him 100% disabled rate when in fact his true rating was probably 10%. While the VA thought Blea was blind, he was deliberately getting eye exams outside the VA system that showed his vision was correctible to 20/30 in one eye and 20/40 in another. In fact, Blea had a driver’s license and drove regularly without any noticeable difficulties.
“Justice may be blind, but Mr. Blea isn’t,” said U.S. Attorney Jason Dunn. “He will now have a year in federal prison to think about his actions and see a better way going forward.”
Gregg Hirstein, Special Agent in Charge, VA Office of the Inspector General, said, “The Department of Veterans Affairs Office of Inspector General is committed to bringing justice to those who illegally enrich themselves at the expense of VA programs intended to help our nation’s disabled veterans. This case should serve as a deterrent to those who would seek to defraud the VA.”
Blea was charged by information on August 8, 2018, and pleaded guilty to a single count of concealment of a material fact on December 19, 2018. He was sentenced Wednesday, April 10, 2019.
This case was investigated by the VA’s Office of the Inspector General and prosecuted by Special Assistant U.S. Attorney Dan Burrows.
Six More Defendants Sentenced for Embezzlement from the Ute Mountain Ute TribeRead the Press Release
DURANGO -- After a 3-year investigation into the embezzlement of funds from the Ute Mountain Ute Tribe, 16 defendants have been convicted and sentenced for their illegal conduct to include each defendant participating in taking a substantial amount of money from the tribe that was not due to them, announced U.S. Attorney Jason Dunn, FBI Denver Division Special Agent in Charge Dean Phillips and IRS-Criminal Investigation Denver Field Office Special Agent in Charge Steven Osborne. Of these defendants, 11 were Ute Mountain Ute (UMU) tribal members; 5 were not. Of the 16 sentenced 6 defendants were sentenced this week by U.S. District Court Judge Robert E. Blackburn who was sitting in Durango.
According to court filings as well as arguments made in open court, from at least 2011 through October 2015, Ute Mountain Ute tribal members were entitled to receive utility benefits from the tribe to pay their utility expenses in annual amounts from $1,200 to $1,500. Bills or other documentation were required to be submitted along with the application to the tribe's Financial Services Department for processing and payment to the tribal members. Additionally during the same time period, UMU tribal members had family plan accounts established when the tribal members were children and from which the members could start spending the funds once they reached 18 years of age. The funds in the family plan accounts, with accrued interest, usually reached approximately $10,000 by the time a member reached 18 years old. These funds could be used to purchase things such as vehicles, home furnishings, and computers. As with the utility benefits, the tribal member was required to provide invoices or other documentation to UMU's Financial Services Department in order to request payment from the family plan account.
Beginning in at least 2011, certain employees of the tribe's Financial Services Department caused fraudulent tribal checks to be generated in the names of people selected by the employees. The people receiving the checks cashed the checks and usually shared the cash with the Financial Services Department employee who provided the check. Initially, these fraudulent checks were falsely attributed to the utility benefits or family plan accounts of tribal members who did not request or receive the fraudulent checks. Later, the fraudulent checks were generated without being attributed to any tribal member. At least 5 of the people who received the fraudulent checks were not tribal members and were not entitled to any tribal benefits. 6 of the defendants sentenced to date were employees in the tribe’s Financial Services Department.
In other instances, the Financial Service Department employees caused embezzled tribal funds to be sent via Western Union to selected recipients who would in turn provide a portion of the money back to the employee who sent the wire. Defendant Oraleigh Jaramillo also caused embezzled tribal funds to be wired to inmates with the Federal Bureau of Prisons who were not UMU tribal members and not entitled to any UMU tribal funds.“This was a complex case with many defendants and a large amount of money,” said U.S. Attorney Jason Dunn. “But we in federal law enforcement have a sacred trust with members of the tribal community and we take that delegation seriously. Where public corruption exists within the tribes, we will work tirelessly to root it out and to hold accountable those responsible.”
“The FBI aggressively investigates crimes that occur against Native American Tribes. The sentencing of the defendants in the Ute Mountain Ute Tribe investigation should send a strong message to anyone considering engaging in white collar fraud schemes,” said FBI Denver Special Agent in Charge Dean Phillips. “The FBI will continue to work with our law enforcement counterparts and United States Attorney’s Office to protect our citizens and economy from those engaged in this type of crime. We would like to thank the IRS for their partnership on this case."
“Today’s sentencings demonstrate our collective efforts to enforce the law and ensure public trust,” said Steven Osborne, Special Agent in Charge, Denver Field Office. “IRS Criminal Investigation is committed to unraveling complex financial transactions and money laundering schemes where individuals abuse their positions of trust to unjustly enrich themselves.
Those sentenced this week as part of this case include:
- Gloria Lee, aka Gloria Rouillard, aka Gloria Lopez – sentenced to 26 months in federal prison, followed by 3 years of supervised release for embezzlement of funds belonging to an Indian tribal organization and money laundering, which includes a restitution order of $1,139,996;
- Oraleigh Jaramillo aka Oraleigh Hammond – sentenced to 14 months in federal prison, followed by 3 years of supervised release for embezzlement of funds belonging to an Indian tribal organization and money laundering, which includes a restitution order of $309,537;
- Shirley Ann Deer – sentenced to 15 months in federal prison, followed by 3 years of supervised release for embezzlement of funds belonging to an Indian tribal organization and money laundering, which includes a restitution order of $209,552.47;
- Terry Jason Arnold – sentenced to 12 months and a day in federal prison, followed by 3 years on supervised release for wrongful receipt of funds belonging to an Indian tribal organization, which includes a restitution order of $140,235.55;
- Classia Rose Hammond – sentenced to 3 months in federal prison followed by 3 months home confinement as part of 3 years on supervised release for receipt of willfully misapplied funds belonging to an Indian tribal organization, which includes a restitution order of $65,508.56;
- Terry Lynn Whiteman – sentenced to 3 months in federal prison followed by 3 months of home confinement as part of 3 years on supervised release for misapplication of funds belonging to Indian tribal organizations, which includes a restitution order of $44,214.01; and
Those previously sentenced as a part of this case include:
- Maurice Nat – sentenced to 41 months in federal prison, to be followed by 3 years on supervised release for receipt of funds belonging to an Indian tribal organization, which includes a restitution order of $136,575;
- Darrell Jonah Lee – sentenced to 15 months in federal prison, to be followed by 3 years on supervised release for receipt of funds belonging to an Indian tribal organization, which includes restitution of $142,411;
- Kevin Ryan Lee – sentenced to 5 months in prison, to be followed by 3 years on supervised release for receipt of funds belonging to an Indian tribal organization, which includes restitution of $89,132;
- Leslie Rouillard – sentenced to 5 months in prison, to be followed by 3 years on supervised release for receipt of funds belonging to an Indian tribal organization, which includes a restitution order of $83,796.09;
- Freana Bancroft – sentenced to 4 months in prison, plus 4 months home detention as part of 3 years on supervised release for receipt of funds belonging to an Indian tribal organization, which includes a restitution order of $109,820;
- Jennifer Ann Pioche – 4 months in prison followed by 4 months home detention as part of 3 years on supervised release for receipt of funds belonging to an Indian tribal organization, which includes restitution of $106,497.
- Colindra House – sentenced to 3 months in prison, plus 3 months home detention as part of 3 years on supervised release for receipt of funds belonging to an Indian tribal organization, which includes a restitution order of $52,401;
- Loia K. House – sentenced to 3 years probation for illegal receipt of funds belonging to an Indian tribal organization, which includes a restitution order of $22,190;
- Myreon Lehi – sentenced to 3 years probation for illegal receipt of funds belonging to an Indian tribal organization, which includes restitution of $23,280;
- Ladelda Lopez aka Ladelda Box – 3 years probation for illegal receipt of funds belonging to an Indian tribal organization, which includes restitution of $34,823.
The investigation began in October of 2015 and is expected to conclude soon. The FBI and IRS-CI conducted the investigation which was prosecuted by Assistant U.S. Attorney Pegeen Rhyne.
Five Men Sentenced to Federal Prison for Black Market Marijuana Grow Operation in Park County NeighborhoodRead the Press Release
DENVER – Five men who had been living in Park County, Colorado, were sentenced to federal prison terms after being caught growing and harvesting large amounts of marijuana. The sentencing hearings, which happened in Grand Junction, were announced by U.S. Attorney Jason Dunn and DEA Denver Special Agent in Charge Tim McDermott.
According to facts contained in filed court documents, as well as arguments made during sentencing hearings, from approximately September 2013, Tan Duy Tran led a conspiracy to cultivate, harvest, and distribute marijuana grown in houses in the Fairplay, Colorado area. As part of this conspiracy, Tran contacted defendant Blake Outhavong and requested that he purchase a house in the Fairplay area for the sole purpose of cultivating marijuana. Tran then directed defendant Souk Outhavong to purchase yet another house in the Fairplay area, also for the sole purpose of growing and cultivating marijuana.
During this time period and continuing to March 2018, the Tran organization utilized these houses, and others in the area, to cultivate over 1000 marijuana plants, which resulted in the distribution of at least 677 pounds (over 300 kilograms) of marijuana. Tran organized the criminal activity involving 5 or more participants; and the codefendants and several others worked at Tran’s direction to cultivate, harvest and distribute marijuana. In March 2018, DEA agents executed search warrants on the houses involved in the marijuana grows. Agents discovered 460 mature marijuana plants as well as 1,656 clone marijuana plants. In another house agents found approximately 66 one-pound packages of processed marijuana being prepared for distribution. They also discovered an AR-15 style rifle, a handgun, and a gun safe with nine other firearms of various calibers. Defendants Venarong Vongsitthy and Billy Dukes were present at one of the raided homes. Both pled guilty to marijuana cultivation.
Those prosecuted in this case include:
- Tan Duy Tran, aka Ricky, age 41, who was ordered to serve 96 months in federal prison followed by 5 years on supervised release
- Venarong Vongsitthy, age 47, who was ordered to serve 60 months in federal prison followed by 4 years on supervised release
- Billy Dukes, age 35, who was ordered to serve 60 months in federal prison followed by 4 years on supervised release
- Blake Outhavong, age 48, who was ordered to serve 12 months and 14 days in prison followed by 5 years on supervised release
- Souk Outhavong, age 45, who was ordered to time served as well as a $50,000 fine followed by 5 years supervised release.
“This is not a victimless crime,” said U.S. Attorney Jason Dunn. “These are communities where families live and kids play. It was a team effort with a positive outcome. We thank our law enforcement partners who came together to stop this illegal conduct.”
“This black-market cultivation investigation is another example of criminal elements coming to Colorado to take advantage of this state’s marijuana laws,” said DEA Denver Special Agent in Charge Tim McDermott.
The first defendants were charged by criminal complaint on March 14, 2018. On March 27, 2019 the defendants were charged by a federal grand jury. They then were held in custody pending a resolution of their case. The defendants pled guilty on dates in September, October, and November. They were then sentenced in March and April of 2019.
This case was investigated by the DEA along with the Park County Sheriff’s Office, the Eagle County Sheriff’s Office, and the Vail Police Department. The defendants were prosecuted by Assistant U.S. Attorney Jeremy Chaffin.
Additional Federal Charges Added Against Denver Doctor Justin Neisler for Production of Child PornographyRead the Press Release
DENVER – A federal grand jury in Denver has returned an eight-count indictment charging Dr. Justin Neisler with production of child pornography, transportation of child pornography, and possession of child pornography, announced U.S. Attorney Jason Dunn and FBI Denver Division Special Agent in Charge Dean Phillips. Dr. Neisler is being held without bond. Dr. Neisler was charged previously by criminal complaint on March 13, 2019, with the transportation of child pornography. He was ordered detained by the federal district court in Denver on March 26, 2019. On April 4, 2019, the grand jury returned an indictment, which was unsealed today, and contains additional charges against Dr. Neisler.
Dr. Neisler has been affiliated with the Centura Health and HealthONE networks licensed to practice medicine in Colorado and Georgia since 2016.
The investigation into Dr. Neisler’s alleged illegal conduct is ongoing. Anyone having information relevant to this investigation is encouraged to contact the FBI by sending an email to [email protected] or by calling 303-629-7171 x 1.
The charges are allegations, and the defendant is presumed innocent unless and until proven guilty.
This matter is part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC coordinates federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
Colorado Springs Man Found Guilty of Being a Felon in Possession of a Firearm and AmmunitionRead the Press Release
DENVER – Following a one-week trial, a jury found Perry Wayne Suggs, Jr., age 32, of Colorado Springs, Colorado, guilty of being a felon in possession of a firearm and ammunition, announced U.S. Attorney Jason Dunn and ATF Denver Field Division Special Agent in Charge Debbie Livingston. Suggs appeared at the trial in custody, and was remanded after the jury relayed their verdict. The trial was before U.S. District Court Judge William J. Martinez.
Suggs was indicted by a federal grand jury in Denver on February 21, 2018. The federal grand jury then returned a superseding indictment on April 19, 2018. The trial started on March 25, 2019, and concluded today, March 28, 2019, with the guilty verdict. The defendant is scheduled to be sentenced by Judge Martinez on August 28, 2019. He faces not more than 10 years in federal prison, and up to a $250,000 fine.
According to court documents and evidence presented at trial, on January 3, 2018, Colorado Springs Police Officers were dispatched to a shots fired call where a man in a BMW fired at a pedestrian crossing the street. Officers interviewed a mother and daughter who had witnessed the shooting. They had the make and model of the car, as well as its license plate number. The pedestrian had nothing in his hands and was legally crossing an intersection when an individual in a black BMW pointed a firearm at the pedestrian’s legs and fired. The driver then fled. A witness took a picture of the car’s license plate and then pointed out the shell casing in the intersection, which was retrieved by the officers.
The victim called 911 and was interviewed by the police officers. Based on the victim’s information as well as that of the witnesses, officers learned 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 who had at least one felony conviction and was likely to possess firearms. It is against federal law for felons to possess firearms.
Officers executed a search warrant at Suggs’ residence as well as the BMW. There were two firearms in plain view inside a vehicle at his residence, including a black handgun and a black semi-automatic rifle. Ultimately officers found 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.
“The defendant was a danger to the Colorado Springs community,” said U.S. Attorney Jason Dunn. “Thanks to the hard work of law enforcement and prosecutors, the defendant will now have to answer for his crime,”.
“This case is a prime example of technology and skilled investigators coming together to find the person responsible for acts of violence,” said ATF Denver Special Agent in Charge Debbie Livingston. “I am proud of our partnerships that made this case possible.”
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.
This case is part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Denver Doctor Charged with Transportation of Child Pornography and in Federal CustodyRead the Press Release
DENVER – The United States Attorney for the District of Colorado has obtained a criminal complaint against a doctor practicing family medicine in Colorado, charging him with the transportation of child pornography, U.S. Attorney Jason Dunn and FBI Denver Division Special Agent in Charge Dean Phillips announced. Justin Bowen Neisler, age 31, of Denver was arrested without incident by the FBI on March 13, 2019, and was ordered detained today by the United States District Court for the District of Colorado. Neisler will be detained while awaiting further proceedings.
Dr. Neisler was arrested after a search of his residence in Denver. According to information contained in the Application for a Search Warrant, the FBI received information from the National Center for Missing and Exploited Children (NCMEC) that someone using an IP address associated with Dr. Neisler’s residence uploaded sexually explicit videos and/or images of children onto a social media platform. According to publicly available information, Dr. Neisler has been licensed to practice medicine in Colorado and Georgia since 2016. He has been affiliated with the Centura Health and HCA-HealthONE networks.
The investigation is ongoing into the alleged offense and other federal criminal child exploitation offenses, including the production of child pornography. Anyone having information relevant to this investigation is encouraged to contact the FBI by sending an email to [email protected] or by calling 303-629-7171 x 1.
If convicted of the charge contained in the criminal complaint, Dr. Neisler faces not less than 5 years and not more than 20 years’ imprisonment and up to a $250,000 fine. He also faces not less than 5 years and not more than life on supervised release.
The charge is an allegation, and the defendant is presumed innocent unless and until proven guilty.
This matter is part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC coordinates federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
Colorado Man Pleads Guilty to $7.2 Million Biodiesel Tax Credit Fraud SchemeRead the Press Release
A Colorado resident pleaded guilty today in the U.S. District Court for the District of Colorado to conspiracy to defraud the United States, conspiracy to commit money laundering, and money laundering, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
Matthew Taylor and co-conspirators worked together to defraud the United States by filing false claims for tax credits under a federal program that encourages production and use of renewable fuels. According to court documents, in 2009, Taylor and others created a fake company, Shintan Inc. (Shintan), that purported to be in the business of creating renewable fuels. From 2010 to 2013, Taylor and co-conspirators filed claims with the Internal Revenue Service (IRS) for over $7.2 million in tax credits for renewable fuel produced. In fact, Shintan produced no qualifying renewable fuel, and the documents filed with the IRS were fraudulent. Taylor personally netted at least $4.5 million from the scheme, with the additional $2.7 million going to co-conspirators. To avoid detection, Taylor and co-conspirators transferred the fraudulently obtained funds through bank accounts belonging to Shintan and other shell companies.
At sentencing, Taylor faces up to five years in prison on the conspiracy to defraud the government count, 10 years in prison on the money laundering conspiracy count and the money laundering count. Sentencing is scheduled for Dec. 6, 2019. In addition to a prison sentence, Taylor faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Leslie A. Goemaat, Arthur J. Ewenczyk, Sarah A. Kiewlicz, and Stephen K. Moulton, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
U.S. Attorney Jason R. Dunn Delivers Remarks at Islamic Center of Boulder in Wake of New Zealand MassacreRead the Press Release
DENVER – U.S. Attorney Jason Dunn and senior staff attended a vigil yesterday for victims of the mass shooting in New Zealand. Please find U.S. Attorney Dunn’s remarks below.
Text of U.S. Attorney Jason Dunn’s remarks
Good Afternoon. My name is Jason Dunn, and I am the United States Attorney for the District of Colorado. In that position, I am the chief law enforcement officer for the United States here in Colorado.
I started this job 6 months ago. I was sworn in on a Friday morning. The next morning, a young man opened fire in a synagogue in Pittsburgh, killing 11. My counterpart in Pittsburgh is now prosecuting that person for 11 murders and other federal crimes.
That night, my first full day on the job, I attended an interfaith vigil here in Denver at the Temple Emanuel synagogue. Not being Jewish nor ever having been to such an event, I didn’t know what to expect.
What I saw was an amazing display of compassion, love, and most of all, community. Many religions were represented - including the Islamic faith - and I had the opportunity to meet several leaders of your community.
As I started my job in earnest that next Monday, I quickly learned how engaged my office was with various religious groups throughout Colorado. We not only regularly meet with various religious groups to discuss how our office can protect the public while ensuring civil rights, but we have taken the affirmative step to develop a training program to help houses of worship better protect themselves from events like those in Pittsburgh, and now New Zealand.
I also quickly learned that there are more than 180 men and women in my office who work for the cause of Justice every day. On behalf of each of them I bring you this important message: we stand with this community.
Our houses of worship are protected places. They are protected because this is where we are most vulnerable. And it is here where we exercise one of our most fundamental rights.
The time, place, and manner of attacks in New Zealand were calculated to inflict the most damage possible. Ripping 50 lives from this earth at a time when they were most vulnerable — savaging the sanctity of prayer.
This calculated attack was designed to instill terror and fear not just in New Zealand, but around the world.
That’s why it’s so important to come together as a community.
Fear diminishes freedom. Our country prides itself on freedoms — freedom of speech, of religion, freedom of the right to assemble. This is part of what makes our country such a wonderful place to live. These rights belong to all of us, and we must not let fear take them away.
I want each of you to know that my office and I will enforce the laws to ensure that everyone here is safe — and feels safe — in their house of worship.
After this week’s attack in New Zealand, the prime minister identified two things the world must do in response. The first: show our support for the community directly impacted by this tragedy. And that’s what we are doing here this afternoon.
Prime Minister Ardern has noted that New Zealand is a land that welcomes diversity. She says there are more than 200 ethnicities in New Zealand. 160 languages spoken. Diversity unites the country and compassion is a shared value.
The Muslim community that was attacked had chosen Christchurch as their home. Many were refugees. And they came to New Zealand because that is where they felt safe to come and practice their faith, and to be part of a community.
What other country does this sound like? America is also a land of tremendous diversity. Instead of 160 languages, more than 350 languages are spoken in American homes.
Our country embraces diversity and understands that diversity, when combined with the rule of law, makes us stronger. Together, they define our national fabric.
This makes it is easy for us to do the second thing Prime Minister Ardern did in response to these attack: to clearly condemn and reject the ideology that motivated the savagery in New Zealand.
Prime Minister Ardern says there is no place for that ideology in New Zealand. And indeed, there is no place for that ideology in the World, in the U.S., or in Colorado.
I close with this — please know we stand with you.
We grieve with you.
And, most importantly, know that our office will enforce the laws that protect this and all other houses of worship.
Justice Department Awards over $300,000 to the Southern Ute Indian Tribe to Support Native American Crime VictimsRead the Press Release
DENVER – The Office of Justice Programs’ Office for Victims of Crime (OVC) today awarded over $391,425 to the Southern Ute Indian Tribe as part of a larger effort to assist victims of crime, announced U.S. Attorney Jason Dunn. The Southern Ute grant is part of more than $5.7 million to support crime victims in Native American communities nationwide. This set of awards is the second in a series of grants being made by OVC to American Indian and Alaska Native communities. OVC has now awarded more than $9 million of a planned $100 million to support tribal victim service programs.
The Southern Ute Indian Tribe received $391,425 to expand its victim services program by providing direct victim services and trauma-informed personnel support. The funding will pay for supplies, staff training, the purchase of new equipment for forensic medical services and child forensic interviews and clinical therapeutic services for crime victims.
“I recently travelled to the Southern Ute Indian Reservation and saw firsthand how much they’ve accomplished in helping victims of crime,” said U.S. Attorney Jason Dunn. “I also know that a grant, like this one, can provide a huge benefit to crime prevention and victim protection.”
“American Indian and Alaska Native communities face extensive public safety challenges, but through creative approaches that combine traditional methods with innovative solutions, they are demonstrating their determination to meet the needs of victims in their communities,” said Principal Deputy Assistant Attorney General Matt M. Dummermuth. “These grants, part of historic levels of funding awarded by the Department of Justice to American Indian and Alaska Native communities, will provide significant resources to bring critical services to those who suffer the effects of crime and violence.”
The Justice Department is working to improve the lives of all crime victims, including American Indian and Alaska Native communities, by providing accessible resources and services. These awards—and those to come—represent the most significant victim services funding ever dispersed to American Indian and Alaska Native communities.
According to the Bureau of Justice Statistics, American Indians and Alaska Natives experience violent crimes at rates far greater than the general population.
“American Indian and Alaska Native crime victims continue to face challenges in identifying vital services and resources needed to help survivors address their trauma and navigate a complex system,” said OVC Director Darlene Hutchinson. “The Justice Department has made it a priority to partner with tribes to help victims and their families rebuild their lives in the aftermath of violence.”
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Matt M. Dummermuth, provides federal leadership 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. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP and its components can be found at www.ojp.gov.
Lawsuit Against Southern Ute Police Officers FailsRead the Press Release
DENVER – The U.S. District Court in Denver found that three Southern Ute Police Officers were not liable after the shooting of an Ignacio resident by an officer during a confrontation in December 2012, announced United States Attorney Jason R. Dunn. In response to the Court’s opinion, U.S. Attorney Dunn said the following:
“The U.S. Attorney’s Office is proud of our partnership with the Indian Tribes in southwest Colorado, as is evident in our office’s defense of Southern Ute Indian Tribe police officers. Yesterday’s decision by Senior Judge Richard P. Matsch denied the claims of a plaintiff who incorrectly alleged that these officers acted improperly during a confrontation in 2012. Our thanks go to our law enforcement partners that aided this effort, as well as those from our office’s Civil Division who ensured that justice prevailed.”
Click here for the Court's Opinion
Boulder Doctor Sentenced for Bankruptcy FraudRead the Press Release
DENVER – Cathleen Van Buskirk, age 55, from Erie, Colorado, was sentenced today by U.S. District Court Judge William J. Martinez to serve 18 months in federal prison followed by 3 years on supervised release and pay a $50,000 fine for committing bankruptcy fraud, announced U.S. Attorney Jason Dunn and FBI Denver Division Special Agent in Charge Dean Phillips. Van Buskirk appeared and was released on bond. She must report to a Bureau of Prisons facility no later than April 19.
Van Buskirk is a doctor and surgeon who practiced in Boulder, Colorado, until shuttering her practice in the wake of her indictment. A federal grand jury in Denver indicted Van Buskirk on December 4, 2017. She pled guilty to a single count of bankruptcy fraud on August 24, 2018, and was sentenced today, March 15, 2019.
According to the stipulated facts contained in the plea agreement, as well as information presented to the court at sentencing, Van Buskirk spent about two years hiding upwards of $300,000 worth assets that should have been part of her bankruptcy estate. Van Buskirk filed for personal bankruptcy in August 2014, but deliberately failed to disclose certain assets and took various steps to conceal her interest in those concealed assets. Among other actions she took, Van Buskirk gave a friend gold and silver coins, foreign currency, a diamond ring, and $48,000 in cash to hold for her. She also routed $170,000 through various shell companies that were registered in the names of others but which Van Buskirk actually controlled. Even after the bankruptcy trustee filed a motion to revoke Van Buskirk’s bankruptcy discharge, she continued lying to the trustee about the full extent of her assets for several months until it became clear that she could not hide her true financial situation any longer.
“Concealing assets in attempt to circumvent the bankruptcy process is criminal,” said U.S. Attorney Jason Dunn. “In this case the defendant thought she could beat the system. It is clear from today’s sentencing by Judge Martinez that she lost.”
“This sentencing should send a strong message to anyone considering bankruptcy fraud,” said FBI Special Agent in Charge Dean Phillips. “Today’s decision affirms the hard work of the FBI and our dedicated law enforcement partners.”
This case was investigated by the FBI with cooperation from the Office of the U.S. Trustee. The defendant was prosecuted by Special Assistant U.S. Attorney Daniel E. Burrows and Assistant U.S. Attorney Pegeen Rhyne.
Solar Companies and Corporate Officer Ordered to Pay over $5 Million Relating to Allegations They Defrauded A Renewable Energy ProgramRead the Press Release
DENVER – The United States obtained judgments against two companies and an individual officer of those companies relating to allegations that they violated the False Claims Act when they submitted applications to obtain payments from the U.S. Department of the Treasury for renewable energy projects.
Under a program created by the American Recovery and Reinvestment Act of 2009, companies could apply to get reimbursements for up to 30 percent of the costs they incurred in initiating and placing into service “renewable energy properties,” such as solar and wind projects. Companies submitted applications for these payments to the National Renewable Energy Laboratory (NREL) in Golden, Colorado. The funds for the reimbursement came from Treasury Department funds. Those funds were set aside under section 1603 of the 2009 Act, under a program commonly known in the renewable energy industry as the 1603 Program.
Defendant New World Renewable Energy Leasing, Inc. (New World) was involved in solar projects across several states, including Colorado. It had a related shell company, Infinergy Solar and Wind, Inc. (Infinergy). Defendant Murray Hambrick was an officer of both companies.
On September 14, 2017, the United States filed a complaint in federal district court in Colorado alleging that Infinergy, New World, and Hambrick had obtained payments from this program by using false or fraudulent statements. The United States alleged that, rather than submit to Treasury and NREL its true cost in the projects, Infinergy engaged in a sham sale of the projects to New World. Through the sham sale, Infinergy attempted to artificially inflate the costs of the projects. New World, in turn, submitted these false claims to Treasury and NREL. In 41 instances, New World obtained 1603 funds to which it was not entitled. Murray Hambrick orchestrated the fraud.
That lawsuit has now been resolved by judgments requiring the defendants to pay more than $5 million. New World and Infinergy failed to appear in court to defend the case, and on July 23, 2018, Judge Raymond P. Moore entered default judgment for the United States against the corporate defendants in the amount of $5,055,467. Hambrick litigated the case, then filed for bankruptcy. To resolve the United States’ claims against him, Hambrick agreed to a non-dischargeable judgment of $225,500. This judgment was approved by the Bankruptcy Court for the Western District of Texas on March 6, 2019.
“This program had important goals: jump-starting the economy at a time of crisis, and helping companies that move our renewable energy industry forward. Taxpayers paid for that program. Companies and individuals who lie to take advantage of government programs like this one will face consequences,” said U.S. Attorney Jason Dunn.
“The U.S. Department of the Treasury Office of Inspector General would like to thank the U.S. Attorney’s Office and the U.S. Department of the Treasury for their hard work and partnership on this case and previous cases involving the American Recovery and Reinvestment Act. This settlement reinforces the commitment of the Treasury OIG to pursue cases against those who defraud the U.S. Treasury Department and misuse public funds,” said U.S. Department of the Treasury, Office of Inspector General Eric Thorson.
This matter was investigated by the U.S. Department of the Treasury’s Office of Inspector General. It was handled by Assistant U.S. Attorneys Zeyen Wu and Andrea Wang.
Fugitive from the District of Colorado arrested in the Republic of GeorgiaRead the Press Release
DENVER – Mr. Karen Nikolyan, age 35, and a citizen of Armenia, was arrested this weekend at the Tbilisi airport in the Republic of Georgia after flying from Istanbul, Turkey, announced United States Attorney Jason R. Dunn. Nikolyan had been a fugitive since 2008, when he fled the District of Colorado after he pleaded guilty to bank fraud in federal court. He was arrested in the Republic of Georgia by local authorities with support from United States federal law enforcement.
On June 6, 2007, Nikolyan was indicted by a federal grand jury in Denver for a bank fraud scheme. In that case, beginning on April 11, 2007, and continuing through May 11, 2007, the defendant devised a scheme of making, in a short period of time and before liens were of record, multiple applications for home equity in a condominium owned by the defendant located in Aurora, Colorado. A total of 7 financial institutions were defrauded by over $600,000. On March 19, 2008, he pleaded guilty and was free on bond awaiting sentencing. He was scheduled to be sentenced on December 16, 2008. Nikolyan failed to appear for his sentencing hearing. Instead he fled the country. Thanks to the work of the U.S. Secret Service, FBI and other agencies, Nikolyan was found as he made reservations to fly from Turkey to the Republic of Georgia.
“Today’s arrest is due to the tireless work of our law enforcement partners at the Secret Service and the FBI, as well as our prosecutors and those at main justice,” said United States Attorney Jason Dunn. “We commend their hard work and long memory, ensuring that justice will be served after 11 years.”
The FBI’s Office of the Legal Attaché in Georgia and the Department of Justice’s Office of International Affairs (OIA) worked quickly to obtain a “Joint Declaration On Extradition” between the Republic of Georgia and the United States, and OIA submitted a request for provisional arrest. Now that Nikolyan has been arrested, the two countries are working on extraditing Nikolyan to the United States to face the sentencing hearing from which he fled.
This matter was investigated with the U.S. Secret Service. The FBI and other law enforcement agencies assisted in the investigation and location of the defendant. AUSA Bob Brown is prosecuting the defendant.
Federal Jury Finds Metro Denver Men Guilty of Drug TraffickingRead the Press Release
DENVER – Two Metro Denver men were found guilty earlier this week of drug trafficking crimes following a five day jury trial before Chief U.S. District Court Judge Philip A. Brimmer, announced U.S. Attorney Jason Dunn and DEA Denver Division Special Agent in Charge Tim McDermott. Both of the defendants, Omar Humberto Gonzales-Hernandez and Jeremiah U. Serr, were present at the trial in custody. They were remanded to the custody of the U.S. Marshals Service at the trial’s conclusion. Gonzales-Hernandez and Serr will be sentenced by Chief Judge Philip Brimmer on May 17, 2019.
The defendants were charged by criminal complaint on May 11, 2018. They were then indicted on June 6, 2018, to be followed by a superseding indictment on July 10, 2018, and a second superseding indictment on September 13, 2018. On March 5, 2019, the two defendants were found guilty of conspiracy to distribute more than 500 grams of methamphetamine between October 17, 2016, and May 12, 2018. Serr was also convicted of possession with intent to distribute more than 50 grams of pure methamphetamine. The evidence at trial showed that Gonzales-Hernandez, Serr and three co-defendants worked together to distribute multi-pound quantities of methamphetamine purchased in Colorado to a buyer in Virginia where the price of methamphetamine is significantly higher. Three co-defendants previously entered guilty pleas and are awaiting sentencing.
The conspiracy faltered on October 17, 2016 when the Kansas Highway Patrol stopped Jeremiah U. Serr after he was clocked traveling east at 119 mph on I-70. During that traffic stop, the Kansas Highway Patrol recovered one pound of methamphetamine. After the DEA Denver Field Division became involved in the investigation, the Arapahoe County Sheriff’s Department was able to contact Joanna Gonzalez-Zarate in Bennett, CO, on May 10, 2018, as she drove east on I-70. The DEA and Arapahoe County Sheriff’s Department stopped Gonzalez-Zarate and recovered four pounds of methamphetamine. A typical methamphetamine user purchase on the street is a gram or less. One pound of methamphetamine can be broken down into approximately 453 gram units.
During the trial the jury heard testimony from witnesses from Virginia, Kansas, California, Texas, and the Denver Metro area – including the Kansas Highway Patrol, DPD, DEA, and Arapahoe County Sheriff’s Department.
“Methamphetamine continues to be an epidemic in Colorado and is a priority for our narcotics section,” said U.S. Attorney Jason Dunn. “Pure meth can cause overdoses and death. By removing meth dealers from our streets and targeting their source of supply, we continue to protect the people of Colorado.”
“This investigation is a great example of cooperation between law enforcement agencies across the country in battling dangerous drugs from hitting our communities,” said DEA Denver Division Special Agent in Charge Tim McDermott.
This case was investigated by the Drug Enforcement Administration with support from the Arapahoe County Sherriff’s Office, Denver Police Department, West Metro Drug Task Force and the Waynesboro, Virginia Police Department. The case was prosecuted by the United States Attorney’s Office for the District of Colorado. The Government’s case was presented at trial by Assistant United States Attorney Guy Till and Special Assistant United States Attorney Daniel McIntyre.
Drug Trafficking Organizer Sentenced to Prison as Part of A Multi Defendant Drug Investigation and ProsecutionRead the Press Release
DENVER – Jose Tapia-Rubio, age 60, of Aurora, Colorado, was sentenced yesterday by U.S. District Court Judge Raymond P. Moore to serve 96 months (8 years) in federal prison followed by 5 years on supervised release for conspiracy to distribute and possess with intent to distribute more than five kilograms of cocaine, and conspiracy to conduct an unlawful financial transaction, U.S. Attorney Jason Dunn, DEA Denver Division Special Agent in Charge Tim McDermott and IRS CI Special Agent in Charge Steven Osborne announced. Tapia-Rubio appeared at the hearing in custody and was remanded at its conclusion.
Tapia-Rubio is one of 17 defendants charged in this large scale prosecution of a drug trafficking organization (DTO). These individuals were charged by indictment on April 13, 2017. A superseding indictment was obtained on July 11, 2017. Tapia-Rubio pled guilty on June 25, 2018. He was sentenced on March 5, 2019. The other defendants include:
- Rodrigo Mora-Sanchez – sentenced to 138 months in prison followed by 5 years on Supervised Release
- Lara Zamora-Cruz -- sentenced to 72 months in prison followed by 5 years on Supervised Release
- Selestino Hernandez-Mayo – sentenced to 60 months in prison followed by 2 years on Supervised Release
- Eduardo Jimenez-Sanchez – sentenced to 60 months in prison followed by 4 years on Supervised Release
- Heberto Mora-Sanchez – sentenced to 60 months in prison followed by 4 years on Supervised Release
- Jose Chica-Orellana – sentenced to 55 months in prison followed by 5 years on Supervised Release
- Oscar Mora-Campos – sentenced to 40 months in prison followed by 5 years on Supervised Release
In addition, several other defendants have cases that remain pending.
According to court documents and evidence presented in court, between February 2016 and May 2017, the Drug Enforcement Administration Strike Force and the Aurora Police Department conducted an investigation into a drug trafficking organization (DTO). Tapia-Rubio and his co-conspirators played significant roles within that DTO. The investigation revealed that the DTO imported multi-kilogram/multi-pound quantities of cocaine and methamphetamine from Mexico to California. The drugs were then transported to Colorado and then sold to customers in the Denver metro area, as well as customers located in Breckenridge, Aspen and New Castle. The DTO received, off-loaded, stored and sold drugs at El Rancho Market located in Aurora. That business was owned by Tapia-Rubio. The DTO maintained a stash house in Aurora as well.
During the course of the investigation law enforcement seized: 1) 12.5 kilograms of cocaine and 1.2 pounds of methamphetamine; 2) approximately $692,000 in bulk cash drug proceeds; 3) two homes valued at approximately $615,600; 4) three vehicles valued at approximately $28,650; and 5) eleven firearms.
“Targeting drug traffickers and focusing on the top of their organizations is an important role for the U.S. Attorney’s Office,” U.S. Attorney Jason Dunn said. “Thanks go to the agents from the DEA, IRS CI and the Aurora Police Department who worked tirelessly on this case.”
“This investigation targeted a significant cocaine and methamphetamine drug trafficking organization based in Aurora, Colorado and the Denver metropolitan area,” said DEA Denver Division Special Agent in Charge Tim McDermott. “This provides another prime example of the commitment of the DEA, working with our state, local, and federal partners, to dismantle and remove drug trafficking organizations in order to protect our communities.”
Steven Osborne, Special Agent in Charge, IRS Criminal Investigation stated, “This is an important victory for the American public. Not only is a criminal going to jail for his crimes, but the government has seized a significant amount of illegal proceeds through asset forfeiture. The role of IRS CI in narcotics investigations is to follow the money so we can financially disrupt and dismantle major drug trafficking organizations. IRS Criminal Investigation is proud to provide its financial expertise as we work alongside our law enforcement partners to bring criminals to justice.”
This case was investigated by the DEA, IRS CI and the Aurora Police Department. This case is being prosecuted by Assistant U.S. Attorneys Stephanie Podolak, Zachary Phillips and Tonya Andrews.
Shiprock Man Found Guilty of Raping Woman in TowaocRead the Press Release
DURANGO – Merle Denezpi, age 39, of Shiprock, New Mexico, was found guilty on March 1, 2019, of federal sexual assault charges following a week-long trial before U.S. District Court Judge Robert E. Blackburn, U.S. Attorney Jason Dunn announced. Denezpi appeared at trial in custody and was remanded to the custody of the U.S. Marshals Service at the trial’s conclusion.
Denezpi was indicted by a federal grand jury on June 7, 2018, for one count of Aggravated Sexual Assault within the exterior boundaries of the Ute Mountain Ute Indian Reservation, near Towaoc, Colorado. According to court documents, as well as facts presented during trial, Denezpi used physical force and death threats to sexually assault his victim. Denezpi fled from the scene by jumping out a second-story window and hid underneath a bush for roughly thirteen hours. When apprehended by federal agents, Denezpi offered a contradictory story about his relationship with the victim, before finally asserting any sex was consensual. A Sexual Assault Nurse Exam (“SANE”) was conducted showing significant bruising and injuries to the victim. In addition a DNA test conducted by the Federal Bureau of Investigations revealed Denezpi’s DNA was present on the victim.
Denezpi will be sentenced by Judge Blackburn on June 3, 2019, at 1:30 p.m. in Durango, Colorado. Denezpi faces up to life in prison.
“Victims of sexual assault display tremendous courage when they agree to participate in the prosecution of their assailants by confronting them in court, and we commend the victim here for her courage,” said U.S. Attorney Jason Dunn. Our office is committed to vigorously prosecuting those who prey upon women and hold them accountable.”
This case was investigated by Bureau of Indian Affairs, with the assistance of their Victim Witness Specialist. The defendant was prosecuted by Assistant U.S. Attorneys Jeff Graves and Tim Neff.
“Lazy Lion” Marijuana Business Owners Guilty of Failing to Pay over $3,000,000 in Federal TaxesRead the Press Release
DENVER – Andrew C. Poarch, age 31, of Colorado Springs, Colorado, pled guilty February 13, 2019 in front of U.S. District Court Judge Robert E. Blackburn to filing a false federal income tax return, announced U.S. Attorney Jason R. Dunn and Internal Revenue Service – Criminal Investigation Special Agent in Charge Steven Osborne. Poarch was charged by Information on December 20, 2018 and is scheduled to be sentenced on May 22, 2019.
According to information contained in the information and plea agreement, Poarch and his wife opened a marijuana business in Colorado Springs in approximately January of 2013. During the time from January 2013 through August of 2016, the couple owned, operated and managed the business, named “The Lazy Lion.” Customers could go to the store and join a private club by signing a customer agreement. The Lazy Lion member agreement allowed for members to visit the business and acquire marijuana for a set price. The fee structure for the business included a one-time initial membership fee, an entry fee for each subsequent visit, and a set fee for each purchase of marijuana. The Lazy Lion was never registered as a recreational dispensary within the State of Colorado.
The Lazy Lion obtained its supply of marijuana from a series of grow operations which cultivated and prepared the marijuana for distribution at various warehouses located in the Colorado Springs area. Poarch and his wife owned and controlled the growing operations. Once the marijuana was received at The Lazy Lion, customers could enter the business, purchase marijuana, and if desired, consume the marijuana on the premises.
The Lazy Lion was a cash only business. The Lazy Lion maintained an ATM within the dispensary, which allowed members to obtain cash within the premises.
The Lazy Lion generated substantial profits during the course of its operations. In order to track its cash revenues, the company used a point of sale program that recorded the receipt of all cash funds collected from customers at the business. Records from the point of sale system were collected and analyzed during the investigation of the business and it was determined that during the period of the scheme, the gross revenues for the business approximated $10,792,320. Federal agents then determined the business expenses and the income.
On or about September 29, 2015, Poarch and his wife signed a Form 1040, Individual Income Tax Return, signed under penalties of perjury, and represented that, to the best of their knowledge, the information contained in the return was true, correct, and complete. Among other information, the 2014 tax return stated that their adjusted gross income was $19,294 and that they were due a refund from the IRS. In fact, Poarch was aware that their adjusted gross income was approximately $2,807,761 and the couple owed the IRS tax of $1,061,485.
The parties failed to file personal income tax returns for the 2015 and 2016 tax years. Their net income for the 2015 tax year was $4,187,449. Their net income for the 2016 tax year was $1,325,575.
As a result of the conduct, Poarch and his wife failed to pay the IRS a total of $3,126,245 in taxes due and owing.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the FBI Safe Streets Task Force in Colorado Springs.
This case is being prosecuted by Assistant U.S. Attorney Tim Neff.
Man Who Lived Under False Identity for Thirty Four Years Sentenced to Thirty Months in Federal PrisonRead the Press Release
DENVER – James Thompson of Denver was sentenced late last week to serve 30 months in federal prison for misuse of a Social Security number, U.S. Attorney Jason Dunn and Social Security Office of the Inspector General Wilbert Craig announced. The sentence was handed down by U.S. District Court Judge Philip A. Brimmer. After serving his 30 months, Thompson will then spend 3 years on supervised release. He also was ordered to pay $930.20 in restitution to the Social Security Administration. He was remanded at the conclusion of the sentencing hearing.
The defendant was indicted by a federal grand jury in Denver on July 7, 2018. He pled guilty before Judge Brimmer on November 9, 2018. He was sentenced on February 15, 2019.
According to court documents and facts presented at sentencing, James Thompson was a drug dealer in Oklahoma City in the 1980s and allowed one of his customers to purchase drugs in exchange for that customer’s identification documents. Shortly thereafter, Thompson moved to Colorado and, by 1984, had begun living under his former customer’s name. Thompson was convicted of several felonies under his false identity, including second degree murder and numerous serious drug felonies. In 2015, while on supervised release for a federal drug conviction, Thompson applied for Social Security benefits under his former customer’s name and was approved. Shortly thereafter, the former customer himself tried to apply for benefits in Oklahoma but was told he could not because someone was already receiving disability benefits in his name in Colorado. The customer was then forced to spend more than two years proving his true identity—during which time he was homeless and suffered substantial financial hardship.
This case was investigated by the Office of the Inspector General for the Social Security Administration. The defendant was prosecuted by Special Assistant U.S. Attorney Dan Burrows.
Sedalia Man Indicted for Providing Middle School Students with Marijuana Laced with MethamphetamineRead the Press Release
DENVER – John Bruce Fifield, age 47, of Sedalia, Colorado, was indicted by a federal grand jury last week on charges of distributing methamphetamine and marijuana to students at Woodland Park Middle School, U.S. Attorney Jason Dunn and DEA Denver Division Special Agent in Charge William McDermott announced. Fifield made his initial court appearance where he was advised of his rights and the charges pending against him. He was later released on a $25,000 unsecured bond with home detention. His case is now pending.
Fifield was first charged by Criminal Complaint on January 18, 2019. He was indicted on February 7, 2019. The defendant was arraigned and entered a not guilty plea on February 8, 2019.
According to the facts contained in the affidavit in support of the Criminal Complaint, on November 18, 2018, an investigation began after the Teller Sheriff’s Office Narcotics Team (TNT) received information that Fifield was supplying drugs to Woodland Park Middle School students. The marijuana the defendant provided to students was allegedly coated with methamphetamine. On November 15, 2018 it was reported by local police that multiple students had been found with drug paraphernalia that allegedly was provided by Fifield.
“In a case like this involving young children, we will aggressively pursue federal charges and mandatory minimum sentencing every time,” said U.S. Attorney Jason Dunn.
“The nature of this investigation is very disturbing for the youth of our Country. The DEA is committed to protecting our children from cycle of drug abuse,” said DEA Special Agent in Charge William McDermott.
This matter is being investigated jointly by the DEA Colorado Springs Resident Office and the Teller Sheriff’s Office Narcotics Team. The case is being handled by Assistant U.S. Attorney Kelly Winslow.
The charges contained in the indictment are allegations, and the defendant is presumed innocent until proven guilty.
El Paso County Woman Sentenced to Federal Prison for Theft of Firearms from Licensed DealerRead the Press Release
DENVER – Jennifer Scoggin, age 35, of El Paso County, Colorado, was sentenced yesterday by U.S. District Court Judge William J. Martinez to serve 26 months in federal prison, followed by 3 years on supervised release for her involvement in the theft of firearms stolen from a federally licensed firearms dealer, announced U.S. Attorney Jason Dunn and ATF Denver Special Agent in Charge Debbie Livingston. The defendant appeared at the sentencing hearing in custody, and was remanded at its conclusion. Scoggin along with three codefendants and an unindicted juvenile stole close to 60 firearms from the Dragon Arms, a business in El Paso County.
Scoggin was indicted, along with her codefendants on September 14, 2017. She pled guilty before Judge Martinez on October 1, 2018. Scoggin was sentenced yesterday, February 6, 2019. Codefendants Camron Specht (her 18-year-old son), and her son’s friends Ryan Sharpe and Gian Carlos Vance were all sentenced to time served followed by 3 years on supervised release.
According to the stipulated facts contained in Scoggin’s plea agreement, on August 27, 2017, Scoggin along with codefendants and an unindicted juvenile, carried out a burglary of the Dragon Arms gun store, a federally licensed firearms dealer located at 1200 Dragonman Drive in El Paso County, Colorado. The Dragon Arms gun store was just down the road from Scoggin’s house.
The defendant came up with the plan to burglarize the gun store. She agreed to drive her son and his friends to the store to carry out the burglary, and demanded that they take some guns for her as well. The four young men got into the defendant’s car, and she covered them up with blankets and clothes to hide them from view. She then drove to the gun store with the codefendants hidden inside of her car. She parked the car in front of the gun store, and got out, leaving the men hidden in the car. The defendant, who has a personal relationship with the owner of the gun store, lured him away from the store. After the defendant and the gun store owner left, the codefendants and the juvenile made entry into the building by driving a vehicle through a garage door, entering the business and then leaving with at least 57 handguns, shotguns and rifles. While her son and his friends were carrying out the burglary, the defendant repeatedly texted her son to let him know how much time he had remaining until she returned with the owner. Later that night ATF agents located the defendant at her home, locating several of the stolen firearms in her house. All stolen firearms were ultimately located and seized.
“Removing stolen firearms from our streets helps reduce violent crime,” said U.S. Attorney Jason Dunn. “Targeting those who steal the firearms from stores which are then given to other criminals is even more important. Congratulations to the entire team that investigated and prosecuted this case.”
“This case highlights the incredible work by our ATF Special Agents, the El Paso County Sheriff’s Office and the Colorado Springs Police Department,” said ATF Denver Special Agent in Charge Debbie Livingston. “Scoggin’s criminal actions posed a threat to our society. I am very proud of the team that not only put her behind bars but also recovered 57 stolen firearms.”
This case was investigated by the ATF with assistance from the El Paso County Sheriff’s Office and the Colorado Springs Police Department. The defendant was prosecuted by Assistant U.S. Attorney Emily Treaster.
This case is part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Bible-Wielding Drug Dealer Found Guilty of Federal Gun and Drug ChargesRead the Press Release
DENVER – Miguel Antonio Garcia, age 40, of Denver, was found guilty yesterday of federal drug and gun crimes following a three-day trial before U.S. District Court Judge Raymond P. Moore, U.S. Attorney Jason Dunn and ATF Denver Special Agent Debbie Livingston announced. Garcia appeared at the trial in custody and was remanded to the custody of the U.S. Marshals Service at the trial’s conclusion.
Garcia was first charged by criminal complaint on July 13, 2018, and was subsequently charged by indictment on July 26, 2018. A superseding indictment was filed on January 10, 2019. On February 6, 2019, he was found guilty, following a three-day jury trial, of Possession of a Firearm and Ammunition by a Prohibited Person, Possession with Intent to Distribute a Controlled Substance, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. The jury deliberated for an hour and a half before returning its verdicts.
According to court documents, as well as facts presented during trial, on July 11, 2018, an individual called 911 claiming Garcia, who was walking the streets of Denver with a backpack and a bible, had asked him for a drink. The 911 caller claimed he invited the defendant up to his apartment and gave him some water when the defendant pulled a gun from inside his waistband, and another from inside a bible case. The defendant then fled the scene when the individual called 911. Within minutes, the defendant was located on the same block carrying a bible, but without the backpack or the two guns.
Soon thereafter, the backpack was recovered under a nearby tree. It contained a loaded 10mm semi-automatic handgun, a loaded 9mm semi-automatic handgun, approximately 360 grams of methamphetamine, two scales, and several empty plastic baggies. The backpack also contained a motel room key sleeve which matched a motel key found in Garcia’s pocket and the backplate of a cellphone which matched the phone in Garcia’s pocket. Additionally, the bible Garcia had at the time of his arrest contained indentation marks on the cover and the case which matched the 10mm handgun in the backpack.
Garcia faces not less than 15 years, and up to life in federal prison.
This trial was handled by Assistant U.S. Attorneys Peter McNeilly and Conor Flanigan.
$3.6 Million Settlement Resolves Procurement Fraud Investigation Against Colorado and Maryland Construction Companies Involved with SBA’s Minority Disadvantaged Business Development ProgramRead the Press Release
DENVER – VMJ Construction, LLC (“VMJ”) and its owner, Colorado resident Michael T. Vigil, as well as Maryland-based Vigil Contracting, Inc. (“Vigil Contracting”) and its Operations Manager, John J. Vigil, have agreed to pay the United States $3.6 million to resolve allegations that they defrauded the Small Business Administration (“SBA”) 8(a) Business Development Program.
The SBA’s 8(a) Business Development Program (the “8(a) Program”) for economically and socially disadvantaged small businesses serves dual roles. First, the program helps socially and economically disadvantaged small business owners gain access to valuable federal contracts, thereby promoting economic and social mobility. Second, the program saves taxpayers money by spurring a competitive marketplace. By promoting the development of small businesses, the 8(a) Program helps prevent the formation of monopolies that would stifle innovation and restrict consumers’ ability to negotiate lower prices. It is important that the 8(a) Program is reserved only for companies that actually meet the program’s criteria because misuse of the program deprives legitimate 8(a) Program participants of valuable economic opportunities and undermines the integrity of the program.
There are several rules that businesses in the 8(a) Program must abide by. The socially and economically disadvantaged owner of the business must manage the day-to-day operations of the company and have responsibility for the long-term decision-making for the company. 8(a) Program applicants must also truthfully disclose any affiliation with other businesses so that SBA may accurately assess whether the applicant meets the definition of a small business, and whether the applicant shows potential for success and the ability to perform the requisite percentage of the contracts secured through the Program. Businesses also cannot remain in the 8(a) Program indefinitely; after nine years, they graduate from the program and are no longer eligible to bid on 8(a) contracts.
VMJ was accepted into the 8(a) Program in 2011. Michael T. Vigil, who is Hispanic, was the 91% owner of VMJ, and was the socially and economically disadvantaged individual upon which VMJ based its application to the 8(a) program. John J. Vigil was a 9% owner of VMJ. John J. Vigil was also the Operations Manager of Vigil Contracting. Vigil Contracting is a 2011 graduate of the 8(a) Program. Since 2011, Vigil Contracting has not been eligible to bid for contracts reserved for 8(a) Program participants.
The United States contends that VMJ made false statements to the SBA regarding its eligibility to participate in the 8(a) Program. Specifically, VMJ relied almost exclusively upon Vigil Contracting to bid on and complete the work awarded to VMJ under the 8(a) Program. VMJ used Vigil Contracting’s bonding, office space, employees, contractors, software, computers, and vehicles. Vigil Contracting employees and contractors, including John J. Vigil, made the high-level business decisions of VMJ and managed the day-to-day operations of VMJ. Michael T. Vigil did not control VMJ, did not set the long-term policy, nor manage the day-to-day management of the business. VMJ knowingly misrepresented these facts to SBA, in both VMJ’s initial application to participate in the 8(a) Program and in an annual update to SBA. As a result of the deception, the United States Army, the United States Navy, and the United States Department of Agriculture awarded VMJ several federal government contracts set aside for 8(a) Program participants.
“The United States uses these set-aside contracts for a clear reason: to help small businesses owned by economically and socially disadvantaged individuals. This program continues the promise of the American Dream by helping new small businesses get on their feet, and with more businesses on their feet, our markets are healthier and more competitive.” said United States Attorney, Jason Dunn. “When companies lie about their eligibility to get these contracts, they prevent other deserving small businesses from getting the assistance that Congress intended.”
“The false statements in this case were intended to deceive the government into believing that VMJ Construction was operated by a disadvantaged small business owner whom was eligible to participate in SBA’s 8(a) Program,” said SBA Office of Inspector General Western Region Acting Special Agent-in-Charge Weston King. “The defendants in this scheme sought personal gain at the expense of disadvantaged small businesses. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication to enforcing compliance in SBA’s contracting programs.” SBA’s General Counsel Christopher Pilkerton adds, “The outcome in this case is the product of enhanced efforts by federal agencies such as the Small Business Administration working with the U.S. Attorney’s Office and other Federal law enforcement agencies, to detect procurement fraud and prosecute those individuals and companies that engage in such activities.”
“The Defense Criminal Investigative Service will investigate all allegations of abuse related to Government set aside programs designed to encourage and support veteran, woman and minority owned small businesses. DCIS will pursue all appropriate criminal, civil and administrative actions against individuals who abuse these programs for illicit financial gain,” stated Michael Mentavlos, Special Agent in Charge, Southwest Field Office.
The United States Attorney’s Office thanks the SBA Office of Inspector General, U.S. Army Criminal Investigation Command, and the Department of Defense Office of Inspector General for their diligent work on this investigation. The United States was represented in this matter by Assistant United States Attorney Andrea Wang.
Federal Jury Convicts Colorado Springs Man for Illegal Possession of Stolen AR-15Read the Press Release
DENVER – A federal jury sitting in Denver convicted a Colorado Springs man of receipt, storage, and/or possession of a stolen firearm and for being a felon in possession of ammunition, announced United States Attorney Jason R. Dunn, Denver FBI Special Agent in Charge Dean Phillips and ATF Denver Special Agent in Charge Debbie Livingston. Demontrae Wilson, age 23, was convicted in United States District Court on January 31, 2019, of the two above-mentioned felony offenses. He was acquitted on a third count of being a felon in possession of a firearm.
Evidence presented at trial demonstrated that Wilson had been involved in an altercation between two vehicles, which resulted in shots being fired. During that incident, he was shot in the head with an AR-15 round, but survived with loss of vision in one eye and other complications. After the incident, in March 2018, law enforcement agents in Colorado Springs watched Wilson and his associates get into a car that they began to follow. The car abruptly changed direction to avoid the officers, who then conducted a traffic stop. Officers found Wilson in the front passenger seat of the car, which was registered in his name. Inside his car, officers found military grade AR-15 ammunition, a military grade ballistic vest (with damage from two bullet rounds in the chest area) and a stolen AR-15 under a blanket. Another passenger was carrying a handgun. Wilson had previously been convicted of a felony and was not allowed to possess any firearm or ammunition.
Sentencing is scheduled for May 2, 2019, at 10:00AM before United States District Court Judge Raymond P. Moore.
This case was investigated by the Colorado Springs Police Department, the Colorado Springs Division of the Federal Bureau of Investigation, and the ATF Denver Field Division. The prosecution was coordinated by the FBI Gang Task Force in Colorado Springs. Assistant United States Attorneys Jason St. Julien and Garreth Winstead handled the prosecution.
CASE NUMBER: 18-cr-0263-RM
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Denver Jury Convicts Attorney of Securities FraudRead the Press Release
DENVER – A Denver jury returned guilty verdicts against attorney Guy M. Jean-Pierre after a 12-day trial, announced United States Attorney Jason R. Dunn, Denver FBI Special Agent in Charge Dean Phillips, United States Postal Inspection Service Inspector in Charge Bill Hedrick, and IRS CI Special Agent in Charge Steven Osborne. Defendant Jean-Pierre was charged with securities fraud, mail fraud, wire fraud, money laundering and conspiracy. A Denver Jury returned guilty verdicts on all but one of twenty-nine charged counts on January 30, 2019.
Evidence presented at trial demonstrated that beginning in late 2010, defendant Jean-Pierre’s co-conspirators endeavored to establish a business that would obtain and retrofit steel shipping containers so that they could be used to grow plants hydroponically. With defendant Jean-Pierre’s help, the co-conspirators acquired a dormant publicly traded penny stock company and changed its name to FusionPharm as part of plans to develop and capitalize the business. The main business plan was to resell these repurposed shipping containers, which FusionPharm called “pharm pods,” to hydroponic growers. The pharm pods were, at times, marketed as effective vehicles to get fresh produce, such as lettuce, quickly and efficiently to restaurants and local groceries in urban markets. Over time, however, the pharm pods were marketed to marijuana or cannabis growers in Colorado and other states.
An object of the conspiracy was to conceal the co-conspirators’ role in the management and operation of FusionPharm, due to one of the co-conspirators’ prior securities felony conviction. Defendant Jean-Pierre prepared and transmitted documents that allowed FusionPharm to sell stock in violation of securities laws, falsely portrayed deposits of proceeds from the sale of FusionPharm common stock as convertible debt obligations, falsely portrayed other entities as non-affiliates of FusionPharm, concealed the role of other co-conspirators in the FusionPharm business, falsely represented that disclosure documents and financial statements constituted adequate current information about FusionPharm, and failed to disclose defendant Jean-Pierre’s role in drafting documents for another attorney to sign and represented as the other attorney’s own work product.
Sentencing is scheduled for July 10, 2019, at 9:30AM before United States District Court Judge William J. Martinez.
This case was investigated by the Denver Division of the Federal Bureau of Investigation, the United States Postal Inspection Service, and the Internal Revenue Service Criminal Investigation Denver Field Office. Assistant United States Attorneys Jeremy Sibert and Robert Brown handled the prosecution.
CASE NUMBER: 17-cr-0008-WJM
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Nederland Bomber Sentenced to 27 Years in Federal PrisonRead the Press Release
DENVER – David Michael Ansberry, 66 years old, of Berkley, California was sentenced to 324 months (27 years) in federal prison for attempting to detonate an improvised explosive device outside of the Nederland Police Station in Nederland, Colorado, U.S. Attorney Jason R. Dunn and FBI Denver Special Agent in Charge Dean Phillips announced. United States District Court Judge Christine Arguello entered the sentence against Ansberry on January 25, 2019. Ansberry was remanded into the custody of the United States Marshals.
Ansberry pled guilty without a plea agreement on July 18, 2017, to use and attempted use of a weapon of mass destruction. According to facts relied upon during sentencing, including a statement of facts filed with the Court, before dawn on October 11, 2016, Ansberry placed a radio-controlled explosive device that was concealed in a backpack at the foot of a police parking sign at the Nederland Police Station. Ansberry, who had rented a room at an Inn across the street, attempted to detonate the bomb by calling an attached telephone multiple times. A Nederland citizen testified that he was on a balcony directly above the bomb when Ansberry tried to detonate it. However, the bomb failed to detonate. The backpack was then recovered by a police officer who, without realizing its contents, brought the bomb into the station. When the officer realized that the backpack contained a bomb, he evacuated the station and plaza in which it was located.
The Boulder County Regional Bomb Squad, Nederland Police Department, Nederland Fire Department, Federal Bureau of Investigation, and medical and hazardous materials teams responded to the incident. Using two robots, law enforcement officers removed the bomb from the police station and tested its contents. Those tests revealed the high explosive, hexamethylene triperoxide diamine (HMTD), as well as other chemicals and hardened objects inside the backpack. Using the robots and an inert aluminum slug, bomb squad members detonated the HMTD in place due to its instability and explosiveness.
Ansberry was evacuated from the Inn by the Nederland Fire Department before the HMTD was detonated. He was arrested on October 16, 2016, at O’Hare Airport in Chicago, Illinois after the investigation quickly identified him as the bomber. FBI Agents found “STP” stickers in his luggage that matched an STP sticker found at the scene of the bombing. That sticker represented the logo of a counterculture group called, “Serenity, Tranquility, and Peace,” that resided near Nederland in the 1960’s and 1970’s and of which Ansberry had been a member. The STP sticker found at the scene of the bombing had hand-written on it, “RIP Deputy Dawg Murdered by Marshal 7/17/71.” This was a reference to an STP member named Guy Howard Gaughner who had been murdered in Nederland in 1971. A diary recovered from Ansberry contained entries referring to the death of Gaughner and saying, “Poor Deputy. REVENGE is called for.”
In sentencing Ansberry, Judge Arguello applied the terrorism enhancement in the United States Sentencing Guidelines, finding that Ansberry’s actions were calculated to influence or affect the conduct of government or to retaliate against government conduct.
“We’re pleased that the Court saw this case for what it is – an act of domestic terrorism. These are among the most serious cases that we prosecute,” said United States Attorney Jason Dunn. “Together with our law enforcement partners, we are committed to aggressively prosecuting these cases to protect the life and safety of all our citizens, particularly those who serve and protect the public.”
“The FBI is committed to proactively and thoroughly investigating national security matters and protecting our citizens from those who intend to cause harm in our communities,” said FBI Denver Special Agent in Charge Dean Phillips. “Thanks to the diligence and perseverance of our investigators and the U.S. Attorney’s Office, David Ansberry will now face the consequences of his actions. A special thanks to the Boulder County Sheriff’s Office and Nederland Police Department. Their assistance and support was instrumental in this investigation.”
This case was investigated by the Denver Division of the Federal Bureau of Investigation together with the Nederland Police Department, Boulder County Sheriff’s Office, Longmont Police Department, Boulder Country Regional Bomb Squad, Nederland Fire Department, and the FBI Terrorist Explosive Device Analytical Center Explosives Unit. Assistant United States Attorneys Gregory Holloway and David Tonini, and Trial Attorney Jennifer Levy of the Department of Justice Counterterrorism Section, are handling this prosecution.
CASE NUMBER: 16-cr-0341-CMA
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Internet Stalker Sentenced to More than 14 Years in Federal PrisonRead the Press Release
DENVER – Eric Ronald Bolduan of Rochester, Minnesota was sentenced to 171 months in federal prison for stalking and making interstate threats against college students, U.S. Attorney Jason R. Dunn and FBI Denver Special Agent in Charge Dean Phillips announced. United States District Court Judge Christine Arguello entered the sentence against Bolduan on January 24, 2019. Bolduan was remanded into the custody of the United States Marshals. After serving his sentence, Bolduan is required to register as a sex offender.
Bolduan pled guilty without a plea agreement on September 6, 2018, to stalking and making interstate threats. According to facts relied upon during sentencing, including a statement of facts filed with the Court, Bolduan sent emails and text messages to a female student at the University of Colorado, threatening to kill her and her sister. He then posted pictures of the victim’s face on pornography websites, listing her actual contact information. His posts included pornographic pictures of women that were not the victim, but resembled her. Bolduan then sent messages to the victim, stating his intent to spend his free time “hunting you!” He wrote: “I will find you and watch you – sticking to the shadows, learning your patterns. When the time is right I will strike…”
The investigation revealed that Bolduan sent similar emails, text messages, and posts to a total of four victims in Colorado, but also to other victims at universities and high schools across the country. The defendant used an “anonymizer” which prevented his victims from learning his actual name or from knowing from where the threatening emails, text messages, or posts were coming. The messages were sent not only to female victims, but also to other students, friends, and family members.
“The victims in this case experienced real and profound suffering because of the acts of this defendant,” said United States Attorney Jason Dunn. “It’s possible that more young women have been victimized but just haven’t been able to identify their assailant. We encourage anyone who has experienced this kind of threat to call the FBI.”
“Eric Bolduan’s sentence illustrates the FBI’s commitment to protecting our communities,” said FBI Denver Special Agent in Charge Dean Phillips. “The FBI will continue to work diligently with our law enforcement partners and the United States Attorney’s Office to investigate and prosecute cases involving online threats and attempts to victimize innocent citizens through the Internet.”
Individuals who believe they may be victims are encouraged to contact the FBI at the following number: (303) 629-7171 (Option 1)
This case was investigated by the Denver Division of the Federal Bureau of Investigation together with the University of Colorado and Boulder Police Departments. Assistant United States Attorney Valeria Spencer is handling this prosecution.
CASE NUMBER: 17-cr-0384-CMA
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Parker Nurse Pleads Guilty to Obtaining A Controlled Substance by DeceitRead the Press Release
DENVER – Parker nurse Mary Panza, aka Mary Bowers, pled guilty today to obtaining a controlled substance by deceit in front of U.S. District Court Judge Robert E. Blackburn, U.S. Attorney Jason Dunn and FDA Office of Criminal Investigations Special Agent in Charge Charles Grinstead announced. Panza worked at the Ridge View Endoscopy Center where she administered drugs, including fentanyl. The defendant will be sentenced on March 26, 2019. She is free on bond.
Panza was indicted by a federal grand jury in Denver on October 11, 2018. She pled guilty today, December 18, 2018. According to the stipulated facts contained in the plea agreement, on August 3, 2018, Panza was found by police and paramedics on the floor of her bathroom unconscious with a syringe in her right hand. Two doses of Narcan, a substance used to revive opioid overdose victims, were administered which resulted in Panza regaining consciousness. It was then determined by officers that she had taken fentanyl, a powerful painkiller. Officers found six vials of Benadryl and one vial of Promethazine in her purse, which she used to hide the fentanyl. Further, multiple syringes and a rubber tourniquet were found in her bathroom.
After being transported to Parker Adventist Hospital, officers found multiple vials of what turned out to be fentanyl in her bathrobe. She was not prescribed the drug, and it was determined that she removed the painkiller while working at the endoscopy center where she was in charge of tracking the pain killer. She would empty wasted medication into vials labeled Benadryl, Promethazine and Zofran. She would do this on average of once a week for approximately 10 months. She had done the same thing with her prior employer, Denver Endoscopy on a “handful of occasions,” according to the plea agreement.
This case was investigated by the FDA-Office of Criminal Investigation. The defendant is being prosecuted by Assistant U.S. Attorney Jaime Pena.
U.S. Attorney Announces $110,000 Settlement with Tech Company and Its CEO to Resolve Allegations of False Claims on Defense Procurement ContractRead the Press Release
DENVER – Jason Dunn, U.S. Attorney for the District of Colorado, today announced that Progressive Technology Federal Systems, Inc. and its Chief Executive Officer have paid a combined $110,000 to settle allegations that the corporation and its CEO made false statements concerning a consultant’s security clearance and failed to disclose an organizational conflict of interest when bidding on a defense procurement contract.
One way federal government agencies can buy information technology services is by working with the National Institutes of Health’s Information Technology Acquisition and Assessment Center, or “NITAAC.” NITAAC is a government-wide program that enables agencies to contract for information technology. Other federal agencies, including the military, regularly work with NITAAC.
The United States’ allegations relate to a project in which NITAAC was used by the Army and the Air Force for a contract that was awarded to Progressive Technology Federal Systems, Inc., known as “PTFS.” The United States contends that in 2014, PTFS’s President and CEO, John Yokley, participated in preparing project specifications for a contract to be issued by NITAAC. The project then was offered by NITAAC for contract bids. PTFS then submitted its own proposal to take on the contract. In doing so, however, PTFS stated that it had no conflict of interest relating to the contract. This statement was false because PTFS had a conflict in that Mr. Yokley had provided input on project specifications that were included in the contract, thereby gaining a competitive advantage for PTFS. In addition, the project required security clearances, and PTFS falsely stated in its proposal that an individual who would participate in the project as a key “Subject Matter Expert” had an active Top Secret clearance. PTFS was awarded the contract. Funding for the contract was later terminated before PTFS could invoice more than $30,000. The United States claimed that this conduct violated the False Claims Act.
The claims settled by this agreement are allegations. In entering into this civil settlement, PTFS and Mr. Yokley did not admit liability. Under the agreement, PTFS paid $65,000, and Mr. Yokley paid $45,000, to resolve the allegations.
The United States Attorney’s Office thanks the National Reconnaissance Office’s Office of the Inspector General, Defense Criminal Investigative Services, and Air Force Office of Special Investigations for their excellent work. The United States was represented in this matter by Assistant United States Attorney Jasand Mock.
Two Metro Denver Women Prosecuted for Distributing Heroin Resulting in DeathRead the Press Release
DENVER – Two Metro Denver women charged with heroin distribution resulting in death made court appearances in U.S. District Court in Colorado last week, U.S. Attorney Jason Dunn, FBI Denver Division Special Agent in Charge Dean Phillips and the Denver Police Department announced. Kayla Pagano, age 24, appeared before a U.S. Magistrate Judge in U.S. District Court in Denver, where she was advised of her rights and the charge pending against her. Ariel Nicole Walker, age 30, pled guilty last week in U.S. District Court in Denver before Judge R. Brooke Jackson.
According to the stipulated facts contained in Walker’s plea agreement, on May 31, 2018, Walker went to Civic Center Park looking for someone who could sell her heroin. On that same day, E.N. drove to Civic Center Park looking for someone who could sell her heroin as well. At Civic Center Park, E.N. approached Walker and another party, asking if they could sell her any heroin. Walker asked if E.N. had a car, because that would enable them to meet Walker’s dealer in Westminster, Colorado. E.N. had a vehicle, and the three of them agreed to take it to meet Walker’s dealer at 88th and Garrison in Westminster.
At a gas station in Westminster, Walker met with Kayla Pagano from whom she allegedly purchased heroin. Walker sold some of that heroin to E.N., who injected it. After using the heroin, E.N. passed out and ultimately died in the backseat.
Police later found E.N.’s dead body in an alley in Denver. Based on the autopsy and toxicology results, the Denver Medical Examiner reached the opinion that E.N. died as a result of the toxic effects of heroin.
This case was investigated by the Denver Police Department with support from the FBI. The defendants are being prosecuted by Assistant U.S. Attorney Peter McNeilly.
The charges against Pagano are allegations, and she is presumed innocent unless and until proven guilty.
VA Medical Center Nurse Pleads Guilty for Stealing NarcoticsRead the Press Release
DENVER – Erick Lee Tombre, age 46, of Denver, a registered nurse in the State of Colorado, pled guilty today for acquiring and attempting to obtain controlled substances, including hydromorphone, by deception and subterfuge, U.S. Attorney Jason R. Dunn and Veterans Affairs Special Agent in Charge of the Office of Inspector General Gregg Hirstein announced. The guilty plea was tendered before Senior U.S. District Court Judge Robert E. Blackburn.
Tombre was first charged by Information on November 9, 2018. He pled guilty today, December 12, 2018. He is free on bond, and will be sentenced by Judge Blackburn on April 2, 2018.
According to the stipulated facts contained in the plea agreement, Tombre, who obtained his license as a registered nurse in the State of Colorado in April 2012, started work at the Denver Veterans Affairs Medical Center (VAMC) in January 2014. As a nurse, the defendant had access to an automated system that dispensed controlled substances. The system requires an individual to log-in to withdraw drugs and documents all transactions. Drugs are to be withdrawn only for patient administration based on a doctor’s orders.
Tombre’s diversion was initially uncovered by a VAMC controlled substance transaction audit in February 2017. That audit showed unusual and unaccounted for controlled substance withdrawals, including for example, the defendant’s withdrawal of hydromorphone for the same patient three times in one hour, documenting only one of the three doses as being administered to the patient. The audit also determined that Tombre withdrew more than twice the amount of fentanyl than the next highest health care provider in his until. He had the highest withdrawal of any provider for hydromorphone 2 mg syringes.
During the investigation, Tombre admitted that he had diverted controlled substances for “a couple of years” and most frequently took and used hydromorphone but also took and used fentanyl. He stated he would steal the drugs by drawing up into a syringe the “waste” remaining after patient administration. He would “waste”, or discard, saline instead of the drug and keep the extra drug he diverted. Tombre stated that on an average shift he would waste saline and take home one or two half-full syringes.
The investigation revealed no evidence of patient harm.
Tombre faces not more than 4 years imprisonment, and a fine of up to $250,000. This case was investigated by the VA Office of Inspector General, and was prosecuted by Assistant U.S. Attorney Anna Edgar.
Former Parker Doctor Pleads Guilty to Illegally Distributing Controlled SubstancesRead the Press Release
DENVER – Dr. John Alan Littleford, DO, age 72, currently of Manhattan, Kansas and formerly of Parker, Colorado, pled guilty today before Senior U.S. District Court Judge Robert E. Blackburn to felony charges related to the illegal distribution of controlled substances and money laundering, U.S. Attorney Jason R. Dunn, DEA Denver Division Special Agent in Charge Tim McDermott, and IRS Criminal Investigation Special Agent in Charge Steven Osborne announced. Dr. Littleford is scheduled to be sentenced by Judge Blackburn on April 23, 2019.
According to the stipulated facts contained in the defendant’s plea agreement, Dr. Littleford owned and operated the Pain & Injury Clinic in Parker, Colorado. Dr. Littleford held himself out as a practitioner in the field of “pain management,” although he did not have any certification in that field and had not completed a medical residency, which would have been directly applicable to the field of pain management.
Littleford pled guilty to illegal distribution of controlled substances for distributing Oxycodone, Morphine, Clonazepam, and Carisoprodol to an individual outside the usual course of professional practice and for a purpose other than a legitimate medical purpose. Specifically, on April 30, 2012, Littleford wrote the individual prescriptions for 840 tablets of 30mg Oxycodone; 120 tablets of 80mg Oxycodone; 360 tablets of Percocet (10mg Oxycodone/325mg Acetaminophen); 240 tablets of 100mg Morphine; 240 tablets of 2mg Klonopin (Clonazepam); and 240 tablets of 350mg Soma (Carisoprodol). Dr. Littleford’s file for the individual did not include any documentation of an exam, a diagnosis, or a management or treatment plan. Those prescriptions, in those quantities, written together, were not justified by any medical condition the individual had.
The individual to whom Dr. Littleford distributed the controlled substances was formerly a Senior Police Officer for the City of Westminster, Colorado. Before the individual came to Dr. Littleford for treatment, he had been hospitalized on several occasions for opioid detoxification and he disclosed in his intake questionnaire at the Pain & Injury Clinic that he had “self detoxed” and “did inpatient detox.”
Littleford also pled guilty to money laundering in order to promote his illegal distribution of controlled substances at the Pain & Injury Clinic.
As part of his plea agreement, Dr. Littleford agrees the Court can consider his distribution of controlled substances to seven different individuals he saw at the Pain & Injury Clinic—involving more than 14,000 pills of various opioids, amphetamines, benzodiazepines, and muscle relaxants as well as fentanyl patches and hundreds of vials of injectable meperidine—as relevant for sentencing in his case.
This case was investigated by the DEA Denver Division and IRS Criminal Investigation.
The defendant is being prosecuted by Assistant U.S. Attorneys Peter McNeilly and Jaime Peña.
Grand Jury Charges Denver Men for Possessing Unregistered FirearmsRead the Press Release
DENVER — A Federal Grand Jury returned indictments last week against two Denver men, Jose Eduardo Trujillo and Andres Jaquin Luna III, charging them with firearms offenses, announced U.S. Attorney Jason R. Dunn, and ATF Denver Special Agent in Charge Debbie Livingston.
Both defendants Luna and Trujillo were originally charged by criminal complaints on November 27, 2018. According to the affidavits filed in support of the criminal complaints, Luna and Trujillo sold firearms without serial numbers to undercover agents in July, August, and October of this year. The firearms included machine guns and silencers without serial numbers. Both defendants were arrested in November. On December 4, 2018, a Federal Grand Jury in Denver charged the defendants with possession of unregistered firearms and possession of machine guns. In addition, defendant Luna was charged with distribution of methamphetamine, as well as being a felon in possession of a firearm.
This investigation was conducted by ATF Denver. The defendants are being prosecuted by Assistant U.S. Attorneys Celeste Rangel and Kelly Winslow.
The charges contained in the indictment are allegations, and the defendants are presumed innocent unless and until proved guilty in a court of law.
This enforcement action is part of Project Safe Neighborhoods (PSN), a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. Learn more about Project Safe Neighborhoods.
Case Number: 18-cr-555-PAB
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Joint Statement of the U.S. Attorney’s Office and the Denver Field Office of the Drug Enforcement Administration regarding the City and County of Denver’s Proposal to Create Supervised Locations to Inject Heroin and Other Illegal DrugsRead the Press Release
DENVER -- The Denver City Council recently passed an ordinance that proposes establishing supervised use sites, where drug users would be allowed to lawfully inject heroin and other illegal drugs in a facility operated by a governmental organization or a nonprofit. This proposal still has a number of steps to go before it becomes a reality. In the meantime, there are a few things Coloradans should know.
Foremost, the operation of such sites is illegal under federal law. 21 U.S.C. Sec. 856 prohibits the maintaining of any premises for the purpose of using any controlled substance. Potential penalties include forfeiture of the property, criminal fines, civil monetary penalties up to $250,000, and imprisonment up to 20 years in jail for anyone that knowingly opens, leases, rents, maintains, or anyone that manages or controls and knowingly and intentionally makes available such premises for use (whether compensated or otherwise). Other federal laws likely apply as well.
Second, there is no evidence that such sites actually reduce the number of drug-related deaths or make it more likely that users will seek help for their addiction or mental health issues. Indeed, a recent review of one facility in Vancouver found that the overdose death rate in the immediate vicinity of the facility was actually the highest in the city. This may be due in part to the fact that while these facilities are touted as being “safe” because of the availability of opioid antagonists (e.g., Naloxone or Narcan), these facilities are not actually limited to opioid users. Those injecting methamphetamine, cocaine, or other drugs for which there is no counteragent are also welcome to use the facility. The Denver facility likewise would welcome users of any drug, not just opioids.
Third, these facilities actually increase public safety risks. Just like so-called crack houses, these facilities will attract drug dealers, sexual predators, and other criminals, ultimately destroying the surrounding community. More importantly, the government-sanctioned operation of these facilities serves only to normalize serious drug usage – teaching adults and children alike that so-called “safe” drug usage is somehow appropriate or can actually be done “safely.” The type of drug use contemplated here is always life-threatening behavior.
Finally, we note that nothing in this statement should be read as casting aspersions on the laudable motives of those seeking to improve our communities and free Coloradans from the scourge of drug addiction. The U.S. Attorney’s Office and the Denver Field Office of the Drug Enforcement Administration support all methods of legal intervention to address the opioid and methamphetamine crisis in Colorado, and in fact work hard to facilitate them every day.
But these efforts must comply with federal law. Efforts that do not comply with federal law risk action by the U.S. Attorney’s Office using any and all federal remedies available.
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Colorado Springs Man Sentenced to 25 Years in Federal Prison for Drug and Gun Crimes, as well as CarjackingRead the Press Release
DENVER – Miguel Lerma Cruz, aka Danny Ortega, age 39, of Colorado Springs, pled guilty to drug and gun crimes, as well as carjacking, and was then sentenced yesterday by U.S. District Court Judge R. Brooke Jackson to serve 25 years in federal prison, U.S. Attorney Jason R. Dunn and ATF Denver Special Agent in Charge Debbie Livingston announced. Cruz appeared at yesterday’s hearing in custody, and was remanded at its conclusion.
Cruz was first charged by criminal complaint on October 17, 2017. He was indicted by a federal grand jury on October 26, 2017. He pled guilty and was sentenced on November 29, 2018.
According to the stipulated facts contained in the plea agreement, on May 29, 2017, Colorado Springs police were dispatched to a report of a disturbance at the El Ranchito Meat Market in Colorado Springs. A woman called police and stated that the defendant had threatened her at the market. He reached for his waistline and held what appeared to be the handle of a firearm. After the defendant left the store, the victim called police.
Officers arrived and observed the defendant in his white Dodge pickup truck in the parking lot. When officers attempted to contact the defendant, he slammed into a marked police patrol vehicle, drove past a uniformed patrol officer and another marked police patrol vehicle, and fled the scene. Officers initiated a vehicle pursuit. During the pursuit, which occurred over a considerable distance through heavily populated areas of the city, the defendant refused to stop. He ran a red light and struck two vehicles. The defendant’s white Dodge pickup truck was disabled because of the collision. The defendant got out of his truck, dropping a 9mm handgun onto the ground. He was carrying an AR-15 type rifle and ran up to a woman sitting in an Acura sedan. He then took her car and fled. Officers continued to pursue the defendant, but eventually lost him.
Detectives recovered the defendant’s Dodge pickup at the scene of the crash and recovered a 9mm handgun just outside of the driver’s door. This firearm was reported as stolen from a residence in Brattleboro, Vermont. Police also recovered a blue tote bag that contained 270.7 grams of heroin and 623.6 grams of methamphetamine, as well as $20,000 in cash and ammunition. Police recovered an additional $10,000 in cash in the center console. Subsequent investigation revealed that the Saturn sedan that the defendant had parked earlier in the day contained a Ruger Mini 14 rifle and a loaded magazine for an AR-15 rifle in the trunk. They also recovered another loaded AR-15 magazine in the front passenger seat, a gun cleaning kit, a plastic bag with a personal use amount of cocaine, three boxes of 12 gauge shotgun shells, one box of 9mm ammunition, and four spent .40 shell casings. The .40 shell casings were analyzed and matched two earlier shootings, including a homicide.
On June 1, 2017, detectives located the defendant in a white Camaro in Colorado Springs. Colorado Springs Police Department Tactical Enforcement Unit officers took the defendant into custody. After obtaining a search warrant for the Camaro, detectives located approximately $4,000 and an AR-15 style rifle with a sawed-off handle.
“The defendant went on a crime spree, injuring some, endangering others, and rightfully will spend the next 25 years in prison,” said U.S. Attorney Jason R. Dunn. “The Colorado Springs Police Department and the ATF did an outstanding job working to identify, locate, and arrest this dangerous individual.”
“Cruz was a threat to the community. We are proud to have put him behind bars for a very long time,” said Debbie Livingston, ATF Denver Special Agent in Charge. “We would like to thank the Colorado Springs Police Department patrol division, robbery unit and tactical enforcement unit. They were essential in this investigation. Our partnership with them is truly a force multiplier in combating violent crime.”
This case was investigated by the ATF with substantial assistance from the Colorado Springs Police Department.
The defendant was prosecuted by Assistant U.S. Attorney Emily May.
CASE NUMBER: 17-cr-00398
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Woman Caught Stealing Mail in Englewood Sentenced to PrisonRead the Press Release
DENVER – A woman was sentenced this week for her role in stealing mail from personal mailboxes in the Englewood area, U.S. Attorney Jason R. Dunn and Acting U.S. Postal Inspector in Charge Lesley Allison announced. Krissie Renae Ward, age 20, of Denver, was sentenced by U.S. District Court Judge R. Brooke Jackson to serve 18 months in federal prison, followed by 3 years on supervised release. Co-defendant Tiffany Krystal Mankin, age 34, of Denver, was scheduled to be sentenced today, but removed her ankle monitor and did not show up for sentencing. Judge Jackson issued a bench warrant for her arrest.
The two defendants were indicted by a federal grand jury in Denver on March 20, 2018. Ward pled guilty before Judge Jackson on August 22, 2018 and was sentenced on November 27, 2018. Mankin pled guilty before Judge Jackson on August 23, 2018 and was scheduled to be sentenced on November 28, 2018.
According to the stipulated facts contained in both defendants’ plea agreements, on November 15, 2016, Englewood Police Department officers responded to a report of suspicious activity at a Safeway store located at 201 East Jefferson Avenue, in Englewood. The reporting party called police and stated that two females inside a black Volkswagen were opening excessive amounts of mail. Englewood officers located the vehicle and contacted the occupants, who turned out to be Mankin and Ward. Both were extremely nervous, fidgety, and avoided questions. Both women were taken to the Englewood police station.
During a search of the car, officers found 67 pieces of mail belonging to 31 different people. None of the mail contained actual currency. Law enforcement officers recovered seven checks totaling more than $9,000 from open, rifled mail. Further investigation revealed that Ward and Mankin were looking for mail that contained credit cards and checks. They took the mail out of curbside mailboxes by driving up and reaching out of the car window to grab the mail.
“Stealing mail is not a victimless crime,” said U.S. Attorney Jason R. Dunn. “Our country depends upon the integrity of our postal service, and when a crime such as this occurs, the recipient of the check or credit card as well as the financial institution issuing them suffers.”
“The U.S. Postal Inspection Service would like to thank the diligent witness in this case who reported suspicious activity involving the U.S. Mail,” said Lesley Allison, Acting Inspector-in-Charge of the Denver Division. “Along with the quick response from the Englewood Police Department, the actions of the witness allowed Postal Inspectors to quickly identify these defendants, who were responsible for stealing mail from numerous victims,” Allison said. “As we enter into the busy holiday mailing season, today’s sentence marks a great example of what can happen when the public and law enforcement work together with Postal Inspectors to stop mail theft in our communities,” said Allison.
This case was investigated by the U.S. Postal Inspection Service, with substantial assistance by the Englewood Police Department.
The defendants were prosecuted by Assistant U.S. Attorney Jason St. Julien.
Nutritional Supplement Marketer Pleads Guilty to Tax CrimeRead the Press Release
WASHINGTON – A Monument, Colorado, man pled guilty today to one count of attempting to evade the payment of income taxes announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Jason R. Dunn for the District of Colorado.
According to the plea agreement and other court documents, Craig Walcott operated a multi-level nutritional supplement marketing business and owned and leased residential real estate, while residing in Monument, Colorado. In April 2010, the Internal Revenue Service (IRS) notified Walcott of an assessment of taxes and penalties for the 2005, 2006 and 2007 tax years of more than $450,000. After receiving this notice, Walcott took a series of steps to evade the payment of his tax liability. These steps included transferring properties to nominee entities, encumbering other properties with fictitious mortgages to conceal their equity, and filing false tax returns understating his income. Walcott also did not file income tax returns for the years 2012, 2013 and 2014. As a result of his conduct, Walcott owes $628,733.00, which he has agreed to pay the IRS in restitution.
Sentencing is scheduled for February 25, 2019. Walcott faces a maximum sentence of five years in prison. He also faces a term of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Dunn commended special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Assistant Chief Andrew Kameros and Trial Attorney Lee Langston, who are prosecuting the case.
Colorado Springs Man Sentenced for Wire Fraud and SecuritiesRead the Press Release
DENVER – Daniel Coddington, age 64, of Colorado Springs, Colorado, was sentenced today by U.S. District Court Judge R. Brooke Jackson to serve 120 months (10 years) in federal prison for wire and securities fraud, U.S. Attorney Jason R. Dunn and FBI Denver Division Special Agent in Charge Dean Phillips announced. After serving his prison sentence, Coddington was ordered to spend 3 years on supervised release. He was also ordered to pay $18,021,669.74 in restitution. The defendant appeared at the hearing free on bond, and was ordered to report to a facility designated by the Bureau of Prisons. A co-defendant, Jesse W. Erwin, Jr., was previously sentenced for wire and securities fraud to serve 58 months in federal prison, followed by 3 years on supervised release.
Coddington and Erwin were indicted by a federal grand jury in Denver on October 5, 2015. Erwin pled guilty on April 25, 2017, and was sentenced on October 12, 2018. Coddington was found guilty following a jury trial on July 26, 2018. He was sentenced today, November 27, 2018.
According to court documents and evidence presented during the Coddington trial, from at least early 2010 through late 2011, Coddington held himself out to investors and intermediaries to be the principal and owner of a company called Golden Summit Investors Group Ltd. (“Golden Summit”). He operated Golden Summit from Colorado Springs, Colorado. From at least early 2010 through at least late 2011, he described to investors and intermediaries a program through which investor money would be used to purchase collateralized mortgage obligations or CMOs -- an investment consisting of a pool of mortgages organized by maturity and risk. Coddington told investors that the CMOs had face values exponentially larger than their purchase price and market value. According to the defendant, the CMOs would then be “hypothecated” to obtain loans in the amount of a percentage of the face value of the CMO. The amount of these loans would still be exponentially larger than the purchase price and market value of the CMOs (known as the “CMO Trade Program”).
Coddington told most of the investors that, from the proceeds of the loans, the investors would receive pre-trade distributions and that the remainder of the loan proceeds would be placed into an investment program that would yield high returns. From at least 2010 through late 2011, the defendant described to investors and intermediaries that investors who owned CMOs could transfer their CMOs to Golden Summit for the purpose of participating in the CMO Trade Program. In approximately April 2011, the defendant told an investor, who ultimately invested $9,000,000 dollars with Golden Summit that $60,000,000 of the loan proceeds obtained from “monetizing” the CMOs purchased with the investor’s money would be provided to the investor in the form of two non-recourse loans in the amount of $30,000,000 each (known as the “CMO Loan Program”).
Coddington falsely represented to investors and intermediaries that he had the experience and contacts necessary to successfully conduct and complete the CMO Trade Program and the CMO Loan Program. From at least 2010 through at least mid-2011, Coddington falsely told investors and intermediaries that all of the money provided by investors would be used to purchase CMOs that would be used in the CMO Trade Program and the CMO Loan Program. He also falsely told investors and intermediaries that any fees, commissions, compensation, and payments to Golden Summit and its affiliates would be taken only from the profits of the CMO Trade Program and CMO Loan Program and not from investor money placed into the CMO Trade Program and CMO Loan Program.
From at least November of 2010 through at least June of 2011, the defendant diverted substantial amounts of investor money placed into the CMO Trade Program and the CMO Loan Program for his own personal use and for purposes other than for purchasing CMOs. Further, the defendant did not successfully “hypothecate” or “monetize” any CMOs to obtain loans for either the CMO Trade Program or the CMO Loan Program.
From at least October 2010 through April of 2011, Coddington obtained from investors more than $17,000,000 for the CMO Trade Program and the CMO Loan Program. Despite his failure to successfully complete either the CMO Trade Program or the CMO Loan Program, the defendant did not return most of the investors’ money or any CMO purchased with the investors’ money.
From at least early 2010 through late 2011, the defendant also received CMOs from several investors for purposes of participating in the CMO Trade Program. Coddington kept most of the monthly interest that was paid out on those CMOs while the CMOs were in his and Golden Summit’s possession. For purposes of executing the Scheme, the defendant used, and caused to be used, a number of interstate wires, including emails and money transfers.
“Thanks to the hard work of the FBI, and with the cooperation of crime victims, my office was able to prosecute Coddington for devastating people’s lives by stealing their life savings,” said U.S. Attorney Jason R. Dunn. “Coddington has 10 years to contemplate his crime and think of the people he hurt.”
“The FBI is committed to investigating complex white-collar fraud schemes, and we will continue to pursue those who misuse their position of trust to exploit innocent investors.” said FBI Denver Special Agent in Charge Dean Phillips. “Today’s sentence of Daniel Coddington should send a clear message that exploitation of investors for personal gain will be vigorously investigated and prosecuted.”
This case was investigated by the Federal Bureau of Investigation (FBI).
The defendant was prosecuted by Assistant U.S. Attorneys Pegeen Rhyne and Anna Edgar.
Denver Gang Member Charged with Gun Crime After Tuesday’s LoDo Shooting Where Four Were Hurt and One DeadRead the Press Release
DENVER – Dashae Eugene Armstrong, age 23, of Denver, appeared in U.S. District Court this morning to be advised of firearm charges pending against him and his rights following a deadly shooting between rival gangs on November 19, 2018, in downtown Denver, U.S. Attorney Jason R. Dunn, ATF Denver Special Agent in Charge Debbie Livingston and FBI Denver Division Special Agent in Charge Dean Phillips announced. Armstrong was remanded into custody pending a detention hearing scheduled for November 27, 2018.
Armstrong faces one count of being a felon in possession of ammunition. If convicted of that charge he would face not more than 10 years in federal prison and up to a $250,000 fine. According to the facts contained in the affidavit, on November 19, 2018, at approximately 4:04 p.m., Denver Police officers responded to 1200 21st St, Denver, in response to a shooting. Multiple people called 911 saying that several people had been shot. When Denver Police arrived on scene they discovered five victims suffering from gunshot wounds, including one who was deceased.
Witnesses on scene stated two men were shooting at each other. They then provided descriptions of the shooters. One of the shooters was described as being a heavy set black male, wearing a grey sweatshirt and black pants. A short time later Denver Fire Department first responders were with a male in front of the Marquis Theater who matched that description. The male, identified as Dashae Eugene Armstrong, had a gunshot wound to his leg.
Armstrong was transported to the hospital where he was treated and detained. During the investigation detectives at the shooting scene observed two distinct groups of spent shell casings. One group was 9mm, which matches the gun Armstrong was alleged to be shooting. He is a Tre Deuce Crip gang member. The other shooter was reportedly a Tre Tre Crip gang member.
Armstrong has a criminal record going back to 2007. His first conviction was a felony in Denver District Court on November 11, 2013, for Distribution of a Schedule I/II Controlled Substance. His next felony was also in Denver District Court on May 20, 2014, also for Distribution of a Schedule I/II Controlled Substance.
“Today my office filed charges as a part of the law enforcement and prosecutorial response to this violent crime,” said U.S. Attorney Jason R. Dunn. “We work together with our state and local partners and will step in when state prosecution is not feasible or possible.”
This investigation was conducted by the Denver Police Department, with assistance from the Denver of the ATF and the Safe Streets Task Force led by the Denver Division of the FBI. The defendant is being prosecuted by Assistant U.S. Attorney Celeste Rangel.
These enforcement actions and partnerships are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. Learn more about Project Safe Neighborhoods.
Mexican National Sentenced for Conspiracy to Manufacture and Possess with Intent to Distribute MarijuanaRead the Press Release
DENVER – Margarito Yepez-Sanchez, age 25, a Mexican national who is in the United States illegally, was sentenced last week by U.S. District Court Judge R. Brooke Jackson to serve 36 months in federal prison, followed by three years of supervised release for conspiracy to manufacture and possess with intent to distribute 100 or more marijuana plants, U.S. Attorney Jason R. Dunn, U.S. Forest Service Special Agent in Charge Kent Delbon, and Homeland Security Investigations Special Agent in Charge Steven W. Cagen announced. The defendant appeared at the sentencing in custody and was remanded at the hearing’s conclusion.
Yepez-Sanchez was first charged by criminal complaint on September 21, 2017. He was indicted by a federal grand jury on October 11, 2017. His guilty plea to conspiracy to manufacture and possess with intent to distribute marijuana was accepted by Judge Jackson on August 10, 2018. Yepez-Sanchez was sentenced on November 15, 2018.
According to the stipulated facts contained in the plea agreement, in August 2017, federal agents discovered an illegal marijuana grow in the San Isabel National Forest. On September 20, 2017, agents and officers from multiple agencies executed a federal search warrant on the marijuana grow site. The grow consisted of approximately 13,800 marijuana plants and at least 120 pounds of processed marijuana. About twelve acres of federal lands were affected.
At the site law enforcement discovered two sleeping areas constructed of cut pine timber as well as two kitchen areas, additional sleeping areas, multiple marijuana-drying areas, and a man-made reservoir. Among other items, law enforcement found bottles of insecticide, rodenticide, and fertilizer. After law enforcement announced their presence the defendant fled uphill wearing socks but no shoes. A foot chase ensued resulting in the defendant being caught after law enforcement deployed a Taser. The defendant led the agents and officers to his sleeping area in the marijuana grow location.
This case was investigated by the U.S. Forest Service and Homeland Security Investigations. The following additional agencies assisted with the execution of the search and arrest warrants: U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations, the Custer County Sheriff’s Office, and the Colorado National Guard.
The defendant was prosecuted by Assistant U.S. Attorney Emily May.