District of Colorado
Press releases recorded for this federal judicial district.
Mesa County Man Sentenced to 5 Years in Federal Prison for Growing Marijuana on an Island in the Colorado RiverRead the Press Release
DENVER – Santos Ramirez-Carrillo, age 33, of Mesa County, was sentenced yesterday by Chief U.S. District Court Judge Marcia S. Krieger to serve 60 months (5 years) in federal prison for conspiracy to manufacture and possess with intent to distribute 50 or more marijuana plants, announced U.S. Attorney Bob Troyer, Bureau of Land Management (BLM) Special Agent in Charge Gary Mannino and Drug Enforcement Administration (DEA) Denver Division Special Agent in Charge William T. McDermott.
Ramirez-Carrillo appeared at the sentencing hearing in custody and was remanded at its conclusion. Co-defendant Santos Ramirez-Alvarez earlier pled guilty to similar charges, and is pending sentencing on August 6, 2018.
According to court documents, including the defendant’s plea agreement, in May 2017, Ramirez-Carrillo and Ramirez-Alvarez began living and working on an island in the Colorado River near DeBeque, Colorado. The island is partly comprised of federal land, administered by BLM. Over the course of the next four months, the defendant and his co-conspirators worked together on this and another nearby island to cultivate thousands of marijuana plants. On September 7, 2017, agents from several federal, local and state agencies executed a search warrant on the island. While doing so, officers approached a suspected campsite. Agents and officers gave loud commands announcing their presence. Three men tried to run away and both Ramirez-Carrillo and Ramirez-Alvarez were captured. A third man escaped. During the search of the islands, agents and officers discovered 9,156 plants.
"Federal lands belong to all of us,” said U.S. Attorney Bob Troyer. “We will continue to pursue and punish people who abuse those lands and exploit them for criminal purposes.”
"Illegal marijuana cultivation poses environmental and safety hazards to the public," said Gary Mannino, BLM Colorado Special Agent in Charge. "Our goal is to provide a safe, healthy environment for the public when they come out to enjoy their public lands."
“This case highlights the success of DEA’s relationships with our Federal, State and Local law enforcement counterparts to combat large-scale organized crime groups cultivating marijuana on public lands for distribution on the black market,” said DEA Denver Division Special Agent in Charge William T. McDermott. “Since the legalization of marijuana in Colorado, law enforcement has discovered a significant increase in the cultivation of marijuana on public lands. These marijuana cultivations routinely consist of thousands of plants, which has a severe impact on the environment and wildlife and threatens the safety of anyone who comes upon them.”
This case was investigated by the BLM and the DEA, with support from the DEA Air Wing assets. Assisting with the search warrant execution was the FBI, U.S. Marshals Service, Mesa County Sheriff’s Office, Grand Junction Police Department, Western Colorado Drug Task Force, Colorado State Patrol, and the Colorado National Guard. The defendants are being prosecuted by Assistant U.S. Attorney Jeremy Chaffin of the Grand Junction Branch Office.
Colorado Doctor Arrested and Charged with Selling Oxycodone Prescriptions for CashRead the Press Release
DENVER – John Van Wu, age 48, of Golden, was arrested today pursuant to a warrant issued in connection with an indictment charging him with violations of the Controlled Substances Act, mail fraud, and falsification of records, announced U.S. Attorney Bob Troyer, Drug Enforcement Administration Special Agent in Charge William T. McDermott, and Department of Labor Employee Benefits Security Administration Regional Director James Purcell.
As described in the indictment, the defendant operated a medical clinic at locations in Lakewood and 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. For example, the defendant billed insurance programs for expensive, time-consuming office visits when his patients had relatively routine ailments. He also billed those programs for injections that he did not actually perform. The defendant also claimed to have provided office visits to patients who were outside of the country on the day the visits purportedly took place.
The indictment also alleges that the defendant sold oxycodone prescriptions for cash when presented with the driver’s license of others to whom he could issue the prescription. He then created fake medical files containing false information about the services purportedly provided to those patients.
Today’s arrest is part of the National Health Care Fraud Takedown announced by the Department of Justice. The defendant is one of seventy-six doctors charged in opioid cases prosecuted around the country. https://www.justice.gov/opa/pr/national-health-care-fraud-takedown-results-charges-against-601-individuals-responsible-over. This case was unsealed this morning after the defendant’s arrest.
The case was jointly investigated by the Drug Enforcement Administration and the U.S. Department of Labor Employee Benefits Security Administration. The defendant is being prosecuted by Assistant United States Attorney Bryan D. Fields.
The defendant is presumed innocent unless and until proven guilty in a court of law.
Jamshid Muhtorov and Bakhtiyor Jumaev Guilty of Providing Material Support to a Terrorist OrganizationRead the Press Release
DENVER – A jury in U.S. District Court in Denver today found Jamshid Muhtorov guilty on three counts involving material support to a terrorist organization, U.S. Attorney Bob Troyer announced. The guilty verdicts come after a 19-day trial before Senior U.S. District Court Judge John L. Kane. The defendant was acquitted of an additional count. The Assistant Attorney General for National Security John C. Demers joined in today's announcement.
U.S. Attorney Troyer said: “The jury verdict today reflects the strength and character of our prosecution team, the FBI, and the American justice system. We thank the jury for their essential role in that system and service to our country.”
“Jamshid Muhtorov and Bakhtiyor Jumaev, who was previously convicted, conspired and attempted to provide material support to the Islamic Jihad Union (IJU), a designated foreign terrorist organization,” said Assistant Attorney General Demers. “Thanks to all the prosecutors, agents, and analysts on these cases, these defendants will now be held accountable for their crimes.”
On April 30, 2018, a jury in the U.S. District Court found Muhtorov’s co-defendant, Bakhtiyor Jumaev, guilty of similar charges. Sentencing for Jumaev is scheduled for July 18, 2018. Sentencing for Muhtorov has not yet been set.
Two Colorado Financial Services Executives Sentenced in Multimillion-Dollar Fraud SchemeRead the Press Release
A former CEO and a former corporate counsel of a Colorado financial services company were sentenced on June 19 and June 20, in Denver, Colorado, for their participation in a multimillion-dollar investment scheme in which they falsely told investors that they could access substantial financing, including hundreds of millions in cash in an overseas bank account, in exchange for up-front fees.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Inspector in Charge Craig Goldberg of the U.S. Postal Inspection Service’s Denver Division, and Acting Inspector in Charge Bill Hedrick of the U.S. Postal Inspection Service’s Chicago Division, made the announcement.
Brian G. Elrod, 59, of Buffalo Creek, Colorado, formerly the CEO of a financial services company known as Compass Financial Solutions Ltd. (CFS), was sentenced to serve 38 months in prison, followed by three years of supervised release. Additionally, Elrod was ordered to pay restitution in the amount of $2,440,051.29. William E. Dawn, 80, who was CFS’s corporate counsel, was sentenced to time served. U.S. District Judge William J. Martinez handed down the sentence for Elrod, and U.S. District Judge Robert E. Blackburn sentenced Dawn and ordered him to pay restitution in the amount of $366,752.01.
Elrod pleaded guilty on Feb. 19, 2015, in the District of Colorado to one count of conspiracy to commit mail fraud and wire fraud. As part of his plea agreement, Elrod admitted that from approximately 2005 to 2011, while he served as the CEO of CFS, he marketed and sold to investors promissory notes that were purportedly guaranteed by CFS and others. With respect to the notes that were guaranteed by CFS, Elrod promised investors high returns through monthly interest payments and represented to investors that the proceeds from the notes would be used to operate CFS. However, Elrod instead used the investors’ funds for, among other things, payments to other investors and to himself. After Elrod defaulted on the notes, he conspired with Kenneth Brewington, who purported to be a wealthy financier, and told investors that Brewington would assume CFS’s obligations on these notes. To induce CFS’s investors to sign these assumption agreements, Elrod showed investors fraudulent documents that falsely claimed Brewington had 500 million euros in an overseas bank account. Elrod also sold additional promissory notes that were guaranteed by Brewington personally. To induce investors to purchase the notes guaranteed by Brewington, Elrod again showed investors similar fraudulent documents purporting to show Brewington’s wealth and told some of the investors that their investments would be used to release Brewington’s money overseas. Elrod acknowledged that his scheme resulted in over $2.5 million in losses to investors.
Dawn pleaded guilty on Feb. 25, 2015, in the District of Colorado, to one count of conspiracy to commit mail fraud and wire fraud. As part of his plea agreement, Dawn admitted that from approximately 2002 to 2010, he served as in-house counsel at CFS. Dawn also admitted that he drafted promissory notes sold by Elrod and Brewington in order to solicit investor funds. In doing so, Dawn knew that the proceeds from these notes were going to be used by CFS to make payments to other investors, which had not been disclosed to the purchasers of these notes. To disguise from investors the fact that the proceeds from the notes were not in fact going to be used to release the millions of euros supposedly held by Brewington overseas, the defendant allowed his attorney-client trust account to be used to receive the investors’ money. Dawn acknowledged that his scheme resulted in over $200,000 in losses to investors. He also acknowledged that he owes $366,752.01 in restitution.
Brewington, 55, of Corona, California, was convicted on multiple counts of fraud and money laundering on May 18, in the District of Colorado, following a two-week jury trial. Brewington’s sentencing is set for Aug. 17, before U.S. District Court Judge Philip A. Brimmer, who presided over the trial of the case.
The investigation was led by the U.S. Postal Inspection Service. The U.S. Attorney’s Office for the District of Colorado and the U.S. Securities and Exchange Commission also provided substantial assistance in this matter. Trial Attorneys Anna G. Kaminska, Kyle C. Hankey, and Jennifer G. Ballantyne, as well as Assistant Chief Henry P. Van Dyck of the Criminal Division’s Fraud Section prosecuted the case.
Deputy Attorney General Recognizes District of Colorado EmployeesRead the Press Release
WASHINGTON – Members of the Administrative Division and a Criminal Division Assistant U.S. Attorney (AUSA) for the District of Colorado were among the 162 members of the Department of Justice recognized by Deputy Attorney General Rod Rosenstein, and Executive Office for U.S. Attorneys (EOUSA) Director James Crowell, IV at the 34th Director’s Awards Ceremony today in Washington D.C. The United States Attorney’s Office for District of Colorado was one of 35 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building this morning.
In addressing the award recipients and guests, Deputy Attorney General Rod Rosenstein said, “Today’s honorees earned the esteem of their colleagues. But most importantly, they earned the gratitude of our fellow citizens — the people whose communities you made safer, whose lives you improved, and whose trust you rewarded. Today, we pause to honor and recognize a small portion of your work.”
The Colorado U.S. Attorney’s Office Administrative Division was recognized for their outstanding teamwork, efficiency, and effectiveness in redesigning and moving a large United States Attorney’s Office (USAO) within Denver, without any operational impact, while obtaining cost savings and large scale efficiencies. The team closed the USAO's former location of more than 16 years on a Thursday evening, and opened a fully functional redesigned office five blocks away on Monday morning. The operational capability of the USAO was at full strength throughout the process, with four trials handled just prior to the move. Approximately 170 Assistant United States Attorneys, staff members and contractors now experience enhanced operational effectiveness in a state-of-the-art USAO directly adjacent to four United States Courthouses. Design elements now enhance effectiveness, while integrated communications link Denver to offices in Durango and Grand Junction, expanding the office’s critical public safety mission throughout Colorado. Those recognized include: Steven Brooks, Thomas Dillard, Marilyn Ferguson, David Gaouette, Jeffrey Hernandez, Mark Pittington, Victoria Soltis, and Bonnie Vigil.
Criminal Division AUSA Andrea Surratt, who is now with the U.S. Attorney’s Office in Colorado, was awarded for work she did in the Southern District of New York just prior to transferring to Colorado. She was recognized for her work in the creation of an Overdose Death Initiative, which has transformed the way overdose deaths are investigated across New York City.
“We are honored to continue to get Department recognition for the excellence of our employees at all levels,” said U.S. Attorney Bob Troyer. “Our office has a history of regularly receiving these national honors because all our employees are deeply committed to improving life in Colorado. Our Admin Division is the engine room that keeps our ship running on that course. Without their exceptional performance, none of our defense of the United States or public safety work happens. There is simply no better Admin Division in the country.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Thornton Man to Spend over 11 Years in Federal Prison for Cocaine TraffickingRead the Press Release
DENVER – Thornton resident Carlos Fernandez-Barron, age 38, has been sentenced to serve 135 months (11 years and 3 months) in federal prison for cocaine trafficking, U.S. Attorney Bob Troyer and DEA Denver Division Special Agent in Charge William “Tim” McDermott announced. The sentence was handed down by U.S. District Court Judge Raymond P. Moore on June 8, 2018. After serving his prison sentence, Fernandez-Barron will serve an additional 5 years on supervised release. The defendant appeared at the sentencing hearing in custody, and was remanded at its conclusion.
The defendant and seven others were indicted by a federal grand jury in Denver on September 3, 2015. A superseding indictment was obtained on May 2, 2016. Of the seven individuals indicted, five pled guilty and were sentenced for their crimes, and two defendants – including Fernandez-Barron -- went to trial and were found guilty. In total, all seven defendants were sentenced to over 550 months combined for their cocaine trafficking.
At trial, the government introduced evidence showing that Fernandez-Barron was a Denver-based member of a sophisticated cocaine trafficking conspiracy, which was responsible for sending hundreds of kilograms of cocaine to Colorado and millions of dollars in proceeds back to Chihuahua, Mexico. The defendant helped unload cocaine from hidden compartments in vehicles, distribute it in the Denver metro area, and then collect proceeds to return to Mexico. On March 19, 2018, a Denver jury convicted Fernandez-Baron of conspiring with others to distribute and possess with the intent to distribute five kilograms or more of cocaine. The jury also convicted Fernandez-Baron of personally distributing or possessing with the intent to distribute five kilograms or more of cocaine.
“Colorado law enforcement partnerships are the national gold standard,” said U.S. Attorney Bob Troyer. “Thanks to them, it remains a foolish decision for drug trafficking organizations to set up shop here.”
“This case is a great representation of how the DEA and our law enforcement partners target major drug trafficking organizations responsible for the importation and distribution of hundreds of kilograms of cocaine into our community,” said DEA Denver Division Special Agent in Charge McDermott. “This case was successful due to partnerships between the DEA and the Task Force Officers of the multiple law enforcement agencies that make up the Front Range Task Force; including the Denver Police Department, Douglas County Sheriff’s Office, Colorado Bureau of Investigation, Aurora Police Department, Arapahoe County Sheriff’s Office, 18th Judicial District, Mountain View Police Department, and Homeland Security Investigations (ICE).”
In addition to Fernandez-Barron, Lucio Ivan Lozano was sentenced to 180 months (15 years) in prison; Edgar Rene Mier-Garces was sentenced to 178 months (nearly 15 years) in prison; Keneth Molina-Villalobos was sentenced to serve 120 months (10 years) in prison; Jose Lara-Gallegos was sentenced to 84 months (7 years) in prison; Jose Delores Licon-Gallegos was sentenced to serve time served; and Martha Patricia Mota was sentenced to serve 15 months (1.25 years).
This case was investigated by the Rocky Mountain High Intensity Drug Trafficking Area’s Front Range Task Force, which includes agents from the Drug Enforcement Administration, Denver Field Division, with assistance from the other law enforcement agencies listed above. Assistant United States Attorney Peter McNeilly and Special Assistant United States Attorney Wayne Paugh prosecuted this matter for the United States.
Aurora Man Who Was Prior Felon Sentenced to Federal Prison for Drug and Gun TraffickingRead the Press Release
DENVER – George Amaya, age 29, of Aurora, Colorado, was sentenced on June 8, 2018, by U.S. District Court Judge Philip A. Brimmer to serve 264 months in federal prison for drug and firearm trafficking, U.S. Attorney Bob Troyer and ATF Denver Division Special Agent in Charge Debbie Livingston announced. Following his prison sentence, Amaya was ordered to serve 4 years on supervised release. The defendant, who appeared at the sentencing hearing in custody, was remanded at its conclusion.
On May 23, 2017, a federal grand jury in Denver returned a superseding indictment against Amaya and three others. Co-defendant Diego Molina-Chavez pled guilty and was previously sentenced to serve 72 months’ imprisonment. Two additional defendants, Juan Amaya, aka “Pee Wee”, and Keith Reed, also pled guilty and will be sentenced on July 13, and August 31, 2018. Juan Amaya is the brother of George Amaya.
According to court documents and facts presented at the sentencing hearing, from October 1, 2016 to May 2, 2017, the defendant was the subject of an on-going, long-term narcotics and firearms trafficking investigation. He began his criminal conduct in this case while he was still in custody of the Bureau of Prisons from previous charges and while in a halfway house. On October 5, 2016, Amaya sold 25 grams of actual methamphetamine to a confidential informant. After that sale, the defendant sold more methamphetamine and firearms to undercover ATF agents. On May 2, 2017, the defendant agreed to sell 8 ounces of methamphetamine and two firearms to an undercover agent. The defendant was intercepted by members of the Aurora SWAT team prior to this deal. In his vehicle, within his reach, were two firearms. When officers went to arrest the defendant, one officer saw the defendant look over his shoulder at the officer and then reach to the center console area of the car, near the stereo, where a firearm was later located. Also, Amaya had 212 grams of actual methamphetamine in his vehicle.
“Amaya’s long absence from our community will tangibly improve our safety,” said U.S. Attorney Bob Troyer. “He is exactly who we want off our streets.”
“We go after the worst of the worst and Amaya fits in that category,” said Debbie Livingston, ATF Denver Special Agent in Charge. “He is a documented gang member who was selling guns and drugs while on federal parole. It is a good day knowing he has been removed from our streets. I am proud of our work with the DEA, and the Aurora, Denver, and Lakewood Police Departments that made this possible.”
This case was investigated by the ATF, with substantial assistance by the DEA, and the Aurora, Denver, and Lakewood Police Departments. The defendant is being prosecuted by Assistant U.S. Attorney Celeste Rangel.
Inmate at Florence Prison Indicted for Assault and Resisting a Federal EmployeeRead the Press Release
DENVER – On May 2, 2018, a federal grand jury in Denver indicted Avery White, age 31 and an inmate of the Federal Bureau of Prisons (“BOP”), on two counts of assaulting and resisting a federal employee, U.S. Attorney Bob Troyer announced. White made his initial appearance yesterday afternoon where he was advised of the charges pending against him as well as his rights.
According to the indictment, on or about January 8, 2018, while at the United States Penitentiary in Florence, Colorado, White intentionally forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with the victim, an officer and employee of the BOP, while the victim was engaged in and on account of the performance of his official duties. The indictment charges that White inflicted bodily injuries upon the victim that included, among other things, (a) an abrasion on his forehead above the left eyebrow; (b) a slight injury to the left wrist; (c) a potential concussion; and (d) headaches approximately once or twice a week for three weeks after the incident. Each assault count carries a maximum penalty of not more than 8 and 20 years imprisonment, respectively, and a $250,000 fine.
The FBI and the Special Investigative Service of the Federal Bureau of Prisons investigated this matter. The defendant is being prosecuted by Assistant U.S. Attorney Juan G. Villaseñor and Special Assistant U.S. Attorney Clay C. Cook.
The defendant is presumed innocent unless and until proven guilty in a court of law.
Final Defendant Receives 12 Year Prison Sentence in $2 Million Conspiracy to Defraud the IRSRead the Press Release
DENVER – Jaquon Mucsarney, age 37, of Aurora, Colorado was sentenced by Chief U.S. District Court Judge Marcia S. Krieger to serve 144 months in prison followed by 3 years of supervised release for conspiracy to defraud the United States and aggravated identity theft, announced the United States Attorney Bob Troyer, IRS – Criminal Investigation Special Agent in Charge Steven Osborne and Social Security Administration Office of Inspector General Special Agent in Charge Wilbert M. Craig. Mucsarney was also ordered to pay $327,970 in restitution to the IRS.
According to information contained in the indictment and plea agreement, between January 1, 2011 and January 1, 2016, Mucsarney devised a scheme to defraud the Internal Revenue Service by filing tax return with false information in order to obtain a fraudulent tax refund. At various times, Mucsarney received assistance from his mother, Schosche MucSarney and girlfriend Sherry Charleston.
As leader of this scheme, Mucsarney created approximately 50 fictitious businesses which only existed on “paper” and had little or no legitimate business activity. In order to file corporate tax returns for these businesses, Mucsarney logged into the U.S. Treasury website and obtained an Employment Identification Number (EIN) using either his or Schosche’s social security numbers. When Mucsarney became aware the IRS was investigating his activities, he started using individuals stolen names and social security numbers to obtain EINs for various companies.
Mucsarney typically filed U.S. Corporation Income Tax Returns (Forms 1120) on behalf of the shell companies which he completed with false information relating to income, deductions, overpayments, and refunds due. When Mucsarney was incarcerated on unrelated charges, he would either supply Schosche and Charleston with the false information to complete the fraudulent income tax returns or have Schosche send Mucsarney blank IRS form to complete. Mucsarney would then mail the completed tax returns to the IRS directly from his correctional facility.
Over the course of the scheme, Mucsarney, with the assistance of others, submitted approximately 100 fraudulent income tax returns to the IRS which claimed refunds totaling $2,168,277. Of the amount requested, the IRS ultimately paid out approximately $327,970.
“Mucsarney stole identities and used fake business names to line his own pockets,” said U.S. Attorney Bob Troyer. “Thanks to our prosecutors and law enforcement partners, for the next twelve years Mucsarney’s real identity will be known to the Bureau of Prisons.”
“Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers,” said Steven Osborne, Special Agent in Charge of the Denver Field Office of IRS – Criminal Investigation. “This 12-year sentence demonstrates our unwavering commitment to protecting the interests of law-abiding taxpayers to ensure that the only citizens who receive tax refunds are those who are entitled to them.”
“The SSA OIG promotes Social Security number (SSN) integrity by pursuing cases of SSN misuse and related government fraud,” said Wilbert Craig, Special Agent-in-Charge of the SSA OIG Denver Field Division. “We thank the U.S. Attorney’s Office for prosecuting this case, which resulted in a 12-year prison sentence for the defendant at the center of an SSN misuse and tax fraud scheme, and we will continue to work with the IRS-Criminal Investigation to investigate similar cases.”
Schosche Mucsarney was sentenced on November 22, 2016 to five years probation and restitution of $195,902 to the Internal Revenue Service based on her guilty plea to conspiracy to defraud the government. Sherry Charleston was sentenced on January 9, 2017 to eighteen months imprisonment, 3 years supervised release, and restitution of $16,541 for conspiracy to defraud the government.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the Social Security Administration, Office of Inspector General. This case is being prosecuted by Assistant U.S. Attorney Tim Neff.
United States Recovers $600,000 in Federal Natural Gas Royalty False Claims Act SettlementRead the Press Release
DENVER - The United States Attorney for the District of Colorado, Bob Troyer, today announces the recovery of $600,000 as settlement of allegations that Great Western Drilling Corporation ("GWD") violated the federal False Claims Act by failing to pay money owed on natural gas produced from federal leases located in New Mexico.
Congress has authorized federal lands to be leased for the production of natural gas in exchange for the payment of royalties on the value of the gas that is produced from those leases. Each month, companies are required to report to the Department of the Interior's Office of Natural Resources Revenue ("ONRR") the amount of royalty that is due. While the lessee is permitted to deduct certain post-production costs from its federal royalty payment, the lessee is required to place the gas in marketable condition at no cost to the United States.
The Settlement Agreement resolves contentions by the United States that GWD underreported and underpaid federal royalties due from July 2010 through June 2016. During this time, GWD received a lower sales price from its third-party purchasers because those purchasers paid the natural gas processer, Enterprise Processing, for the transportation, compression, and processing of GWD's gas. GWD did not credit the United States for the portion of the price reduction that related to the Enterprise Processing costs to place the gas in marketable condition. Instead, GWD paid royalties only on the decreased purchase price. In this way, the United States contends, GWD knowingly underreported and underpaid royalties owed to ONRR.
"We don't tolerate these games, and will continue to purse, and get every dollar due from, companies that underpay royalties," said United States Attorney Bob Troyer.
Ron Gonzales, Special Agent in Charge of the Office of Inspector General's Energy Investigations Unit stated, "This settlement is the result of Federal agencies working collaboratively and diligently to ensure that revenues generated from public resources are accounted for on behalf of the American taxpayers. The OIG is committed to work with DOJ, ONRR, and our Office of the Solicitor to support the Department's revenue collection programs."
Geary Keeton, Program Manager for Enforcement with ONRR stated, "ONRR works closely with the OIG and DOJ to help ensure that we collect every dollar due the American people."
The United States Attorney's Office acknowledges the cooperation and teamwork demonstrated by governmental entities involved in today's recovery, including the Office of Natural Resources Revenue, the Department of the Interior's Office of the Solicitor, and the Energy Investigations Unit of the Department of the Interior's Office of Inspector General. The United States Attorney's Office in Denver, Colorado works closely with these offices in the pursuit of unpaid or underpaid oil and natural gas revenue, claims for which are processed at the Office of Natural Resources Revenue at the Federal Center in Lakewood.
The United States was represented in this matter by Assistant United States Attorney Andrea Wang of United States Attorney's Office in Denver, Colorado.Attorney General Sessions Announces 311 New Assistant U.S. Attorney PositionsRead the Press Release
DENVER – On the 500th day of the Trump Administration, Attorney General Jeff Sessions and U.S. Attorney for the District of Colorado, Bob Troyer, announced that the Department of Justice is taking a dramatic step to increase resources to combat violent crime, enforce our immigration laws, and help roll back the devastating opioid crisis.
In the largest increase in decades, the Department of Justice is allocating 311 new Assistant United States Attorneys to assist in priority areas. Those allocations are as follows: 190 violent crime prosecutors, 86 civil enforcement prosecutors, and 35 additional immigration prosecutors. Many of the civil enforcement AUSAs will support the newly created Prescription Interdiction & Litigation Task Force which targets the opioid crisis at every level of the distribution system.
“Under President Trump's strong leadership, the Department of Justice is going on offense against violent crime, illegal immigration, and the opioid crisis—and today we are sending in reinforcements,” said Attorney General Jeff Sessions. “We have a saying in my office that a new federal prosecutor is 'the coin of the realm.' When we can eliminate wasteful spending, one of my first questions to my staff is if we can deploy more prosecutors to where they are needed. I have personally worked to re-purpose existing funds to support this critical mission, and as a former federal prosecutor myself, my expectations could not be higher. These exceptional and talented prosecutors are key leaders in our crime fighting partnership. This addition of new Assistant U.S. Attorney positions represents the largest increase in decades.”
In Colorado, five new AUSAs will be hired. Three will be criminal prosecutors and two will focus on civil affirmative enforcement cases.
"This is great news for Colorado. With five new Assistant United States Attorneys joining our already exceptional staff, our ability to make Colorado safer gets even stronger. These additional resources will enhance community safety, join our battle against opioids, and ensure federal taxpayer dollars are protected."
Fort Collins Women Sentenced for Conspiring to Distribute Fentanyl Resulting in Three Overdose DeathsRead the Press Release
DENVER – Chelsea Leonowicz, 28, of Fort Collins, Colorado, was sentenced on today’s date to serve 100 months in federal prison following her August 23, 2017 entry of a guilty plea to Conspiracy to Distribute Fentanyl, a Schedule II Controlled Substance, the use of which resulted in death. The proceedings were held before U.S. District Judge Christine M. Arguello. Leonowicz’ guilty plea followed a February 2017 indictment with co-conspirator Jessica Rud, 29, also of Fort Collins, Colorado. Rud previously pled guilty to that same charge. In February of this year, she was sentenced to serve 121 months in the Federal Bureau of Prisons. Both sentences will be followed by a five-year term of federal supervised release.
Court documents indicate that fentanyl distributed by the co-conspirators resulted in the overdose death of one individual in Fort Collins on December 1, 2016. Days later, on December 3, 2016, two more individuals overdosed and died in Loveland, Colorado as a result of the continued distribution of that substance by Rud and Leonowicz. Although the drug was sold as “White China” heroin, in actuality it was almost 100% pure fentanyl.
Following their respective sentencing hearings, both defendants were remanded into the custody of the U.S. Marshal’s Service.
The investigation in this case was conducted by the Northern Colorado Drug Task Force, the Fort Collins Police Services (FCPS), the Loveland Police Department (LPD) and the Fort Collins Resident Agency of the Federal Bureau of Investigation. The prosecution was handled by Julia Martinez and Bradley W. Giles, Assistant U.S. Attorneys, District of Colorado, Denver.
Colorado Springs Man Sentenced to 18 Months in Federal Prison for Illegal Reentry into the United States and Illegal Alien in Possession of a FirearmRead the Press Release
DENVER – Jose De Jesus Cordova-Saldana, 29, of Colorado Springs, Colorado, was sentenced yesterday to serve 18 months in federal prison following his March 5, 2018 entry of a guilty plea to Illegal Alien in Possession of a Firearm and Illegal Reentry into the United States, both felonies. The proceedings were held before U.S. District Judge Raymond P. Moore. Cordova-Saldana’s guilty plea followed a January 2018 indictment.
Court documents indicate that on the day after Thanksgiving, November 24, 2017, Cordova-Saldana engaged in a drunken joy ride with friends through the residential streets of Colorado Springs firing weapons in the air, including a Beretta Nano 9mm firearm, a Glock 9mm handgun, and an American Tactical AR-15 assault rifle. The defendant was later found by local police slumped over and passed out in the back seat of a Chevrolet Silverado pick-up truck with a host of weapons, live ammunition, and discarded shell casings. All firearms and ammunition were confiscated by authorities. Previously, in January 2014, Cordova-Saldana was convicted of 3rd Degree Assault, causing injury to the victim, and later deported to Mexico that same year after serving a state jail sentence.
Following his sentencing hearing, Cordova-Saldana was remanded into the custody of the U.S. Marshal’s Service and is expected to be deported again to his native country of Mexico after serving his sentence.
The investigation in this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) along with the Colorado Springs Police Department. The prosecution was handled by Wayne Paugh, Special Assistant U.S. Attorneys, District of Colorado, Denver.
Two Men Sentenced to Federal Prison for Firearm Theft and ConspiracyRead the Press Release
DENVER – Calvin Terrell Stafford, age 23, and Napoleon Williams, age 24, both from Missouri, were sentenced today to serve 27 months in federal prison, followed by 3 years on supervised release, for conspiring to steal firearms from a Colorado gun store, and theft of firearms from a Colorado gun store, U.S. Attorney Bob Troyer and ATF Denver Division Special Agent in Charge Debbie Livingston announced. The defendants, who appeared at the sentencing hearing in custody, were remanded at its conclusion.
Both defendants were indicted by a federal grand jury on September 13, 2017. They pled guilty before U.S. District Court Judge Christine M. Arguello on February 6, 2018. They were sentenced today.
At approximately 3:00 a.m. on August 11, 2017, Stafford and Williams broke into a gun store in Springfield, Colorado. Stafford and Williams first attached a heavy chain to the door of the gun store and then used a truck to attempt to pull the door open. When that failed, Stafford and Williams broke the front window of the gun store, which set off the alarm. They stole nineteen firearms, including five rifles. Stafford and Williams then fled to Missouri where they sold some of the stolen weapons in exchange for marijuana and money. The defendants were apprehended later that same day by law enforcement.
“Breaking into a gun store in Colorado is a great way to get yourself straight into federal prison,” said U.S. Attorney Bob Troyer. “Colorado is a national leader when it comes to solving gun crime, thanks to our exceptional prosecutors and partnerships with the ATF and Colorado police and sheriffs.”
“As this case demonstrates, ATF works seamlessly across state lines to aggressively pursue criminals such as Stafford and Williams,” Debbie Livingston, ATF Denver Special Agent in Charge, said. “The collaboration we have with our ATF counterparts in Kansas City and St. Louis, as well as with the Springfield Police Department and the Baca County Sheriff’s Office, made the apprehension of these individuals possible. Together, we will continue to pursue such criminal elements and remove them from our communities.”
This case was investigated by the ATF with support from Springfield Police Department and other area law enforcement. The defendants were prosecuted by Assistant U.S. Attorneys Colleen Covell and Hetal J. Doshi.
CASE NUMBER: 18-cr-325
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Pueblo Resident Sentenced for Stealing Mail from Back of Mail TruckRead the Press Release
DENVER – Guadalupe Joseph Huerta, age 35, of Pueblo, Colorado, was sentenced late last week to serve 21 months in federal prison by U.S. District Court Judge Raymond P. Moore for stealing mail from the back of a mail truck, U.S. Attorney Bob Troyer and U.S. Postal Inspector in Charge of the Denver Division Craig Goldberg announced. After serving his prison sentence, Huerta was ordered to serve 3 years on supervised release. There was no order of restitution as law enforcement recovered mail before Huerta could leave the area. The defendant appeared at the sentencing hearing in custody and was remanded at its conclusion.
Huerta was indicted by a federal grand jury in Denver on June 6, 2017. He pled guilty on February 21, 2018, and was sentenced on May 23, 2018.
On April 25, 2017 at approximately 3:20 p.m., a Pueblo resident saw a man taking a bin of mail from the back of a Postal vehicle. The resident called her spouse, who notified the Pueblo Police Department. When a police officer arrived on scene, he observed the described male, the defendant, on his phone and standing with a bin of mail at his feet. When the officer exited his vehicle, the defendant took off running and dropped his jacket. A foot chase ensued and backup arrived. The defendant jumped fences, ran through a cemetery, and eventually ended up in a shed. When officers ordered the defendant out of the shed, he burst through the back of the shed and continued running. At some point, the defendant tried to use an appliance on the street to jump a six-foot privacy fence. He slipped and officers engaged in a physical struggle. The defendant eventually ended up on the ground, but had to be Tasered twice to be handcuffed. Shortly after, the resident positively identified the defendant as the person who had broken into the postal vehicle.
The black leather coat dropped on the ground by the defendant after seeing the police officer had a set of keys marked “US Mail”. It also had 6 items of mail, 7 checks totaling $33,218, and 2 credit cards among other items. In total, there were 100 victims.
“For more than 240 years, the United States Postal Service has worked to provide everyone in the United States with secure, efficient and affordable mail service,” said U.S. Attorney Bob Troyer. “Mail thieves like Huerta deprive us of this essential service. Thanks to an engaged community member, excellent law enforcement, and our prosecutors, even this mail got delivered.”
“The Postal Inspection Service applauds the efforts of our Colorado Springs Postal Inspectors and the Pueblo Police Department, as they worked together to apprehend a subject related to an obvious mail theft,” said Craig Goldberg, Inspector In Charge of the Denver Division of the U.S. Postal Inspection Service. “Postal Inspectors are dedicated to protecting the mail from all those who seek to use or obtain mail for illegal purposes, and we will continue working with our law enforcement partners to identify and hold accountable those individuals who attempt to disrupt the safe delivery of the U.S. Mail,” said Goldberg.
This case was investigated by the Pueblo Police Department and the U.S. Postal Inspection Service. The defendant was prosecuted by Assistant U.S. Attorney Hetal J. Doshi.
Man Who Had Pipe Bombs in Downtown Denver Hotel Pleads GuiltyRead the Press Release
DENVER – Adam Nauveed Hayat, age 36, of Denver, Colorado, pled guilty yesterday before U.S. District Court Judge R. Brooke Jackson to three counts of possessing unregistered firearms, after being caught possessing pipe bombs in Downtown Denver hotel, U.S. Attorney Bob Troyer, FBI Denver Division Special Agent in Charge Calvin Shivers, ATF Denver Field Division Special Agent in Charge Debbie Livingston and Denver Police Department Chief Robert White announced. Hayat was charged by criminal complaint on February 16, 2017, and was subsequently indicted by a federal grand jury on March 15, 2017. He pled guilty to an Information today. The defendant, who appeared at the change of plea hearing in custody, was remanded at its conclusion. He is scheduled to be sentenced by Judge Jackson on August 14, 2018.
According to court documents, on February 15, 2017, personnel from the Sheraton Hotel located at 1550 Court Place contacted the Denver Police Department to report a suspicious incident. Upon arriving, the Denver Police Department (DPD) went to room 1902 and found the word “explosives” written on the closet door mirror. The officer then opened the closet, opened the safe, and found a closed ammunition case. Also found in the hotel room were several metal pipes and empty rifle shell casings. The DPD officer immediately contacted their bomb squad. The DPD Bomb Squad carefully examined the ammunition case and found pipe bombs. The Bomb Squad safely removed the ammunition case from the hotel room and transported it to their bomb range, where they rendered it safe.
It was determined during the course of the investigation that Adam Nauveed Hayat rented room 1902 at the downtown Denver Sheraton Hotel. An arrest warrant was issued first by the Denver Police Department and then later by federal authorities. He was located and arrested at a hotel near the Los Angeles International Airport.
This case was investigated by the FBI, ATF, and the Denver Police Department. The Los Angeles Police Department, as well as personnel from the FBI and ATF Los Angeles were involved in the arrest.
The defendant is being prosecuted by Assistant U.S. Attorney Judith Smith, Chief of the Cybercrime and National Security Section and Assistant U.S. Attorney Julia Martinez.
Colorado Springs Man Sentenced to 10 Years in Federal Prison for Possession of Child PornographyRead the Press Release
DENVER – Michael Lyle Blair, age 64, of Colorado Springs, Colorado, was sentenced late last week by U.S. District Court Judge Christine M. Arguello to serve 120 months (10 years) in federal prison for possession of child pornography, U.S. Attorney Bob Troyer and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Denver Division Special Agent in Charge Steven W. Cagen announced. Following his prison sentence, Blair was ordered to serve 7 years on supervised release and pay restitution totaling $21,000. The defendant, who appeared at the sentencing on bond, was remanded into custody immediately after the hearing.
Blair was indicted by a federal grand jury in Denver on March 16, 2017. He pled guilty before Judge Arguello on November 3, 2017. He was sentenced on May 17, 2018.
The testimony given during the sentencing hearing, as well as court documents filed in this case, demonstrated the defendant collected more than 700,000 images of child pornography and was involved in a decades-long pattern of sexual abuse against minors. Blair came to law enforcement attention when his wife, Sona Blair, was the target of a Homeland Security Investigations (HSI) money-laundering investigation. HSI had reason to believe she was deriving money from the international trafficking of Asian females and their prostitution. A state search warrant was executed at the Blair residence in December, 2013. During the search warrant execution, agents seized an external hard drive. A later forensic review of the drive showed it stored images of child pornography. Two additional state search warrants were obtained for evidence of child pornography. One was for the hard drive and the second was for the residence. The residence was searched again in January 2014 and a second computer was seized. A forensic review of the hard drive revealed that the defendant had downloaded approximately 700,000 images of child pornography including images of prepubescent children being bound or sexually abused. The images were stored in multiple folders with names containing descriptions such as “Hardcore Childporn”. The hard drive also contained hundreds of pages of stories that described the abduction or sexual abuse of children.
"Blair stole more than innocence with the 700,000 images he obtained. For years he left a trail of silent victims," said U.S. Attorney Bob Troyer. "With this sentence, those victims are finally heard. And Blair will pay every day for the next ten years in federal prison."
“Considering the traumatic impacts on victims of child pornography, the resulting federal prison sentences following a conviction are justifiably significant,” said Steve Cagen, special agent in charge of HSI Denver. “The 700,000 child pornography images that Blair collected involved numerous young and innocent traumatized victims. HSI and the U.S. Attorney’s Office worked together to provide justice to these victims, while protecting other potential victims by removing Blair from the community and from cyberspace.”
This case was investigated by Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Alecia Riewerts, the office’s Project Safe Childhood Coordinator. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section of the Department of Justice’s Criminal Division, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
South African Professional Hunter Charged with Federal Crimes for Illegal Elephant HuntsRead the Press Release
DENVER – Hanno Van Rensburg, age 44, of South Africa, was charged with federal crimes related to illegal elephant hunts in an indictment unsealed in United States District Court for the District of Colorado, announced U.S. Attorney Bob Troyer and U.S. Fish and Wildlife Service, Office of Law Enforcement (FWS-OLE) Special Agent in Charge Steve Oberholtzer.
As alleged in the indictment, the defendant sought opportunities to hunt large elephants that frequent the area around Gonarezhou National Park in Zimbabwe. He hired a Zimbabwe-based outfitter so that he could lead a hunt inside the park. Once on the hunt, the defendant shot several elephants, and an elephant was killed inside the national park. The defendant then paid somewhere between $5,000 and $8,000 in bribes to Zimbabwean government officials in return for authorization to shoot the elephants, to kill an elephant inside Gonarezhou National Park, and to have the elephant’s ivory released. The defendant also helped a client in an effort to export the elephant out of Zimbabwe, by agreeing to falsely represent that the elephant was killed outside the national park and by agreeing to manufacture and submit a document falsely stating that this client was a resident of South Africa.
In addition, the defendant allegedly attempted to sell an illegal elephant hunt to an undercover U.S. Fish and Wildlife Agent. Among other things, the defendant attempted to sell the undercover agent a hunt in the same location outside Gonarezhou National Park and advertised his willingness to pay bribes to obtain tags to hunt inside Gonarezhou National Park. As alleged in the indictment, the defendant told the undercover agent that “if they need another tag, they get another tag. You know, that’s the negative part of it. The system is so corrupt. If they need to get it, they will get it. If the client pays the money they will find another tag. I am straight forward with you. Corruption is the rule in Africa.” In the process of offering the undercover agent a hunting trip, the defendant proposed that the undercover agent bring approximately $9,000 in “extras” that “we can use in camp to make things straight if we need to.” The defendant also advertised his hunting services by describing in detail his previous illegal hunt in Gonarezhou National Park.
“The U.S. Attorney’s Office and our law enforcement partners work together to support global efforts to protect threatened and endangered wildlife from illegal poaching,” said U.S. Attorney Bob Troyer. “FWS and our prosecutors did an extraordinary job investigating this case.”
“The U.S. Fish and Wildlife Service is committed to protecting imperiled species around the globe from poaching and trafficking,” said Steve Oberholzer, the Special Agent in Charge of the Mountain-Prairie Region. “These cooperative law enforcement efforts strengthen and protect America’s borders while ensuring the conservation of cherished wildlife species."
The case was investigated by FWS-OLE.
The defendant is being prosecuted by Assistant United States Attorneys Bryan D. Fields and Suneeta Hazra.
The defendant is presumed innocent unless and until proven guilty in a court of law.
Statement from U.S. Attorney Bob Troyer in Support of National Police WeekRead the Press Release
“The partnerships among federal, state and local law enforcement in Colorado are unparalleled and set a gold standard of which we all can be proud,” said U.S. Attorney Bob Troyer. “The U.S. Attorney’s Office is truly thankful for everything Colorado Law Enforcement does to make this state such a great place to live.” National Police Week runs from May 13 through May 19. For information about National Police Week events, please visit www.policeweek.org.
Western Slope Sovereign Citizen Sentenced to Federal Prison for Bank Fraud and Related CrimesRead the Press Release
DENVER – Rocky Hutson, age 59, of Grand Junction, Colorado, and a self-proclaimed sovereign citizen, was sentenced to serve 70 months (nearly 6 years) in federal prison for false claims, creating fictious financial instruments and bank fraud, U.S. Attorney Bob Troyer, FBI Denver Division Special Agent in Charge Calvin Shivers and Department of Education Special Agent in Charge Adam Shandeling announced. After serving his prison sentence, Hutson will then spend 3 years on supervised release. The defendant appeared at the sentencing hearing free on bond. He was ordered to report to a prison facility within 15 days of designation. On January 11, 2018 the defendant was found guilty of bank fraud and related crimes following a jury trial.
In late 2011 and early 2012, Hutson devised a scheme to frustrate or delay the legitimate collection of debts that included student loans, small business loans, car loans, and home mortgages. The defendant created various documents that appeared to be legitimate financial instruments but were in fact worthless and gave them to various acquaintances to submit in payment of debts. If a financial institution refused to accept the worthless instrument as payment, Hutson often made phone calls or sent letters to the bank or its attorneys in an effort to convince them the instruments were legitimate. In one case, he even went so far as to threaten to have a bank employee thrown in jail for refusing the payment. A few months later, in May of 2012, he began a similar course of conduct that involved submitting false claims to the Department of Agriculture in attempts not only to pay off existing debts but also to purchase new items, including seventeen Harley-Davidson motorcycles and a shopping center worth over $7 million.
Testimony at trial indicated that Hutson had a hand in submitting nearly $14.7 million worth of false claims to the Department of Agriculture and about $6.3 million worth of fictitious financial instruments to various financial institutions. Although there was ultimately no loss to the federal government, banks lost about $47,000 due to Hutson’s schemes, and various individuals suffered smaller losses as a result of his actions. According to the prosecution, Hutson’s true motivation was a sincere and abiding dislike of the government, banks, and the financial system in general as well as his affiliation with a “sovereign citizen” group known as the “Republic for the United States of America.”
The jury convicted Hutson of all fourteen counts with which he was charged, including five counts of filing false claims with the Department of Agriculture, six counts of creating fictitious financial instruments, and three counts of bank fraud.
“Americans have every right to believe whatever ideology they want,” said U.S. Attorney Bob Troyer. “But they don’t have a right to hide behind any ideology to manipulate others in violation of the law and for their own personal gain. That’s what the defendant did, and he’ll be punished for it. Our prosecutors and the FBI made sure of that.”
"The FBI is committed to aggressively pursuing those who defraud our banking institutions. The creation of fictitious financial instruments to avoid debt payment is a felony,” said FBI Denver Special Agent in Charge Calvin Shivers. “The recent sentencing of Rocky Hudson should deter others who engage in these types of fraud schemes."
Hutson was indicted in June 2016 as the result of a widespread investigation by the FBI and the Department of Education OIG into fraudulent debt elimination tactics promoted by the sovereign citizen movement on the western slope of Colorado. The defendant was prosecuted by Assistant U.S. Attorneys Daniel Burrows and Peter Hautzinger.
CASE NUMBER: 16-CR-00186
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Visit our website http://www.justice.gov/usao/co | Follow us on Twitter @DCoNewsWestern Slope Sovereign Citizen Sentenced to Federal Prison for Bank Fraud and Related CrimesRead the Press Release
DENVER – Rocky Hutson, age 59, of Grand Junction, Colorado, and a self-proclaimed sovereign citizen, was sentenced to serve 70 months (nearly 6 years) in federal prison for false claims, creating fictious financial instruments and bank fraud, U.S. Attorney Bob Troyer, FBI Denver Division Special Agent in Charge Calvin Shivers and Department of Education Western Region Special Agent in Charge Adam Shandeling announced. After serving his prison sentence, Hutson will then spend 3 years on supervised release. The defendant appeared at the sentencing hearing free on bond. He was ordered to report to a prison facility within 15 days of designation. On January 11, 2018 the defendant was found guilty of bank fraud and related crimes following a jury trial.
In late 2011 and early 2012, Hutson devised a scheme to frustrate or delay the legitimate collection of debts that included student loans, small business loans, car loans, and home mortgages. The defendant created various documents that appeared to be legitimate financial instruments but were in fact worthless and gave them to various acquaintances to submit in payment of debts. If a financial institution refused to accept the worthless instrument as payment, Hutson often made phone calls or sent letters to the bank or its attorneys in an effort to convince them the instruments were legitimate. In one case, he even went so far as to threaten to have a bank employee thrown in jail for refusing the payment. A few months later, in May of 2012, he began a similar course of conduct that involved submitting false claims to the Department of Agriculture in attempts not only to pay off existing debts but also to purchase new items, including seventeen Harley-Davidson motorcycles and a shopping center worth over $7 million.
Testimony at trial indicated that Hutson had a hand in submitting nearly $14.7 million worth of false claims to the Department of Agriculture and about $6.3 million worth of fictitious financial instruments to various financial institutions. Although there was ultimately no loss to the federal government, banks lost about $47,000 due to Hutson’s schemes, and various individuals suffered smaller losses as a result of his actions. According to the prosecution, Hutson’s true motivation was a sincere and abiding dislike of the government, banks, and the financial system in general as well as his affiliation with a “sovereign citizen” group known as the “Republic for the United States of America.”
The jury convicted Hutson of all fourteen counts with which he was charged, including five counts of filing false claims with the Department of Agriculture, six counts of creating fictitious financial instruments, and three counts of bank fraud.
“Americans have every right to believe whatever ideology they want,” said U.S. Attorney Bob Troyer. “Buth they don’t have a right to hide behind any ideology to manipulate others in violation of the law and for their own personal gain. That’s what the defendant did, and he’ll be punished for it. Our prosecutors and the FBI made sure of that.”
"The FBI is committed to aggressively pursuing those who defraud our banking institutions. The creation of fictitious financial instruments to avoid debt payment is a felony,” said FBI Denver Special Agent in Charge Calvin Shivers. “The recent sentencing of Rocky Hudson should deter others who engage in these types of fraud schemes."
Hutson was indicted in June 2016 as the result of a widespread investigation by the FBI and the Department of Education OIG into fraudulent debt elimination tactics promoted by the sovereign citizen movement on the western slope of Colorado. The defendant was prosecuted by Assistant U.S. Attorneys Daniel Burrows and Peter Hautzinger.
CASE NUMBER: 16-CR-00186
"Homesource Partners Inc." Owner Sentenced to 96 Months PrisonRead the Press Release
DENVER – Karen Lynn McClaflin, age 59, of Colorado Springs, Colorado, and owner of “Homesource Partners Inc.” was sentenced today by U.S. District Court Judge Christine M. Arguello to serve 96 months in prison, followed by 3 years of supervised release, restitution in the amount of $14,528,206.39, and a $200 mandatory special assessment, U.S. Attorney Bob Troyer, FBI Special Agent in Charge Calvin Shivers and IRS Criminal Investigation Special Agent in Charge Steven Osborne announced. On June 21, 2017, Ms. McClaflin pled guilty to one count of wire fraud and one count of engaging in a monetary transaction in property derived from wire fraud.
According to the stipulated facts contained in the plea agreement, in December 2005, McClaflin and a partner started Trademark Properties and Trademark Reality (“Trademark”) in Colorado Springs. Trademark’s business was to use investor money to purchase and renovate distressed houses in order to resell those houses at a profit. By 2011, Trademark had accumulated so much debt that McClaflin’s partner declared bankruptcy, and their partnership was terminated. Rather than declare bankruptcy herself, McClaflin transitioned to another company with the same “fix and flip” business model as Trademark.
In late 2010, McClaflin started Homesource Partners Inc. (“Homesource”), and McClaflin rolled many of her investors from Trademark into Homesource. From late 2010 through early March 2017, McClaflin owned and operated Homesource in Colorado Springs, Colorado. In seeking investors for Homesource between March 2011 and early 2017, McClaflin told investors that Homesource was seeking loans from investors to finance Homesource’s “fix and flip” business because Homesource was not able to use traditional bank loans. McClaflin represented that traditional bank loans took too long and some of the distressed homes might not qualify as collateral for such loans.
Through marketing materials and verbal statements, McClaflin told investors that Homesource had access to distressed houses that were deeply discounted, which Homesource could purchase for no more than 80% of the “as is” value of the house. McClaflin further represented that Homesource then had exit strategies to profit from the distressed houses, including selling them within 30 days for an immediate profit, “fixing and flipping” the houses for sale within 31-90 days, or fixing the houses and renting them if the houses failed to sell within 90 days.
McClaflin represented that Homesource had a team of contractors who would fix and upgrade the properties so Homesource could resell the properties for a profit. McClaflin further represented that each property would be financed by an individual investor whose investment would be secured by a Deed of Trust in first position on that property, which McClaflin would record for the investor. Occasionally, McClaflin told the investor their Deed of Trust would be in second position. McClaflin further represented that investors would receive an interest rate of 6% to 15%.
However, starting in late March 2011, McClaflin knowingly and intentionally began having multiple investors “invest” in the same property and began placing multiple Deeds of Trust on the same properties, such that the amount of the investments purporting to be secured by the Deeds of Trust exceeded the value of the property. Additionally, starting in late March or April 2011, McClaflin intentionally did not record all of the investors’ Deeds of Trust as promised. Nonetheless, McClaflin continued to falsely represent that investors would receive a first Deed of Trust and that McClaflin would record that Deed of Trust for the investor. McClaflin also sometimes forged the signature of an investor, without the investor’s knowledge or consent, on a release so McClaflin could remove that investor’s Deed of Trust from a property. McClaflin sometimes did not inform investors when “their” property sold and did not return the investor’s principal upon that sale as promised.
Additionally, starting in at least the beginning of 2013, Homesource’s debt had grown too high and the interest payments owed to investors far exceeded the gross profits earned by Homesource. By at least January 2013, McClaflin was aware of this problem and intentionally continued seeking additional investments so that she could keep making the interest payments owed to earlier investors.
Unbeknownst to the individual investors, the amount of investment funds, which were supposed to be secured by real property, far exceeded the value of the encumbered property and Homesource’s business assets. An analysis of Homesource’s finances shows that the influx of investor funds kept Homesource operating, particularly in its latter years. Without the additional investor funding, Homesource would have failed years earlier.
“For a lot of years, the defendant lied a lot of people out of millions of dollars,” said U.S. Attorney Bob Troyer. “I am proud of the dogged and sophisticated work our prosecution team – including the FBI and IRS CI -- did to put a stop to it.”
"Karen McClaflin took advantage of innocent investors by knowingly and wittingly creating a deceptive home investment scheme for personal gain," said FBI Denver Special Agent in Charge Calvin Shivers. "Investigations of those who commit fraud schemes to mislead innocent investors is a felony and those who do will face the consequences of their actions."
“Financial fraud schemes are often described as a house of cards,” says IRS Criminal Investigation, Denver Field Office, Special Agent In Charge Steven Osborne. “The underlying structure can fall apart at any time and expose the individuals responsible. IRS Criminal Investigation is proud to bring our forensic accounting skills to this joint venture and help put a stop to this and other types of white collar crime."
This case was investigated by the Federal Bureau of Investigation and IRS Criminal Investigation. The defendant is being prosecuted by Assistant U.S. Attorney Pegeen Rhyne with Assistant U.S. Attorney Laura Hurd handling the asset forfeiture.
CASE NUMBER: 17-CR-00168
Two Florida Men Sentenced in Six Million Dollar Investment FraudRead the Press Release
DENVER – Joseph Anthony Rubbo, age 54, of Oakland Park, Florida, and Nicholas D. Rubbo, age 48, of Coral Springs, Florida pled guilty on May 9, 2018, to conspiring to commit mail fraud, securities fraud, and money laundering announced U.S. Attorney Bob Troyer, the Federal Bureau of Investigation Special Agent in Charge Calvin Shivers, and the Internal Revenue Service – Criminal Investigation Special Agent in Charge Steven Osborne. U.S. District Court Judge R. Brooke Jackson accepted the guilty pleas, sentenced Joseph Rubbo to the maximum term of imprisonment available under the law, 60 months, and sentenced Nicholas Rubbo to 48 months imprisonment.
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According to court documents, including the stipulated facts contained in the defendants’ amended plea agreements, from December 2012 to November 2017, Joseph Rubbo and Nicholas Rubbo, along with three others, engaged in a conspiracy to defraud more than thirty investors, including two investors in Colorado, of more than $6,000,000 in an investment fraud scheme. The investment fraud scheme focused on a television production company based in South Florida, VIP Television, LLC, as well as a cleaning product, the “Scrubbieglove,” which was also patented in Florida. Investors sent money to both of these companies as a result of false statements about VIP Television’s merger opportunities and interest in the Scrubbieglove by entities such as QVC, Walgreens, and Bed, Bath & Beyond.
Three other members of the conspiracy, Angela Monaco, Pasquale Rubbo, and Steven Dykes, are defendants in a related case pending before the United States District Court for the District of Colorado in Case No. 17-cr-417-RBJ. Monaco, Pasquale Rubbo, and Dykes have all pleaded guilty and will be sentenced by U.S. District Court Judge R. Brooke Jackson in August 2018.
The case was investigated by the FBI and IRS-CI. The defendants are being prosecuted by Assistant United States Attorneys Hetal J. Doshi and Matthew T. Kirsch.
Visit our website http://www.justice.gov/usao/co | Follow us on Twitter @DCoNewsThirty-seven Individuals Charged in Methamphetamine Drug Take DownRead the Press Release
DENVER – Thirty-seven individuals have been charged with federal crimes related to methamphetamine drug trafficking in two separate indictments unsealed in the United States District Court for the District of Colorado, announced U.S. Attorney Bob Troyer, DEA Special Agent in Charge William T. McDermott, and Colorado State Attorney General Cynthia H. Coffman. The indictments were issued by a Federal Grand Jury on April 19, 2018, and May 2, 2018, and unsealed today as arrest warrants were served throughout the metro Denver area, as well as in California and Arizona.
As described in two separate indictments, the drug conspiracy operated within the State of Colorado from dates spanning back as far as July 1, 2015. Separate charges against individual defendants include conspiracy to distribute and possess with the intent to distribute methamphetamine, knowingly or intentionally distributing and possessing with the intent to distribute methamphetamine, intentionally using a communications device in causing or facilitating the commission of a drug felony, and money laundering.
“Meth ravages and ruins the precious lives of too many Coloradans,” said U.S. Attorney Bob Troyer. “Taking out 37 dealers, taking this kind of weight out of our suffering communities, is a major public safety victory. And it’s one we only got because of the exceptional work and partnership we have with the Colorado Attorney General’s Office, the DEA, and many other law enforcement agencies.”
“Today’s bust is another indication that the profitability of dealing drugs in the U.S. invites cartels and criminals into our communities,” said Colorado Attorney General Cynthia Coffman. “Along with its law enforcement partners, the Colorado Attorney General’s Office will keep the heat on drug traffickers doing business in our state. But until we effectively reduce demand for these potent and deadly drugs, we will be fighting symptoms and consequences rather than stopping the problem.”
“With the methamphetamine, heroin and the opioid epidemic ravaging the country, this unified effort reflects the partnerships between federal, state, and local law enforcement in combating this issue to protect the citizens of Colorado,” said DEA Special Agent in Charge William T. McDermott. “The arrests of these 37 defendants will disrupt the flow of drugs into Colorado, California and Arizona. The Denver OCDETF Strike Force will continue its mission in targeting, disrupting and dismantling the highest levels of transnational criminal organizations.”
“This case is one of many examples of how local, state and federal partners work together to combat drug crimes,” said ATF Denver Special Agent in Charge Debbie Livingston. “Supporting our federal, state and local partners is always a priority for ATF.”
The Denver OCDETF Strike Force Group led today’s operation, which successfully arrested 25 individuals. Others are presently at large. The Strike Force includes investigators from the Colorado State Attorney General’s Office, DEA, HSI, FBI, ATF, U.S. Marshals Service, the Internal Revenue Service – Criminal Investigation, and was supported by U.S. Immigration and Customs Enforcement. Other law enforcement agencies assisted in making today’s arrests. These cases are being prosecuted by Assistant United States Attorney Stephanie Podolak.The defendants are presumed innocent unless and until proven guilty in a court of law.
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Visit our website http://www.justice.gov/usao/co | Follow us on Twitter @DCoNewsBoulder Woman Pleads Guilty to Distribution of Heroin Resulting in DeathRead the Press Release
Denver – Kirsten Lippold, 48, of Boulder, Colorado, pled guilty today to distribution of heroin resulting in death. The proceedings were held before U.S. District Judge Raymond P. Moore. Lippold’s guilty plea followed a one-count indictment, which was returned by a Federal Grand Jury in July of 2017. That indictment alleged that Lippold distributed heroin, a Schedule I controlled substance, the use of which resulted in an overdose death on August 17, 2015.
Following her guilty plea, Kirsten Lippold was remanded into the custody of the U.S. Marshals Service. Her sentencing hearing will take place on August 2, 20118.
The investigation in this case was conducted by the Boulder County Drug Task Force, the Boulder Police Department, and the Fort Collins Resident Agency of the Federal Bureau of Investigation. The prosecution is being handled by Assistant U.S. Attorney Bradley W. Giles.
CASE NUMBER: 17-cr-00241-RM
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For more information on the U.S. Attorney’s Office, District of Colorado, visit http://www.usdoj.gov/usao/co/
Three More Individuals with the Ute Mountain Ute Tribe Plead Guilty to Embezzlement and Money LaunderingRead the Press Release
DENVER - As part of an ongoing investigation, three more individuals pled guilty on April 30, 2018, to various charges involving funds embezzled from the Ute Mountain Ute Tribe, announced U.S. Attorney Bob Troyer, FBI Denver Field Office Special Agent in Charge Calvin A. Shivers, and IRS-Criminal Investigation Denver Field Office Special Agent in Charge Steven Osborne.
According to information contained in court documents, from at least 2011 through October 2015, Ute Mountain Ute (UMU) 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. Several of the people who received the fraudulent checks were not tribal members and were not entitled to any tribal benefits.
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. In some instances, embezzled tribal funds were wired to inmates with the Federal Bureau of Prisons who were not UMU tribal members and not entitled to any UMU tribal funds.
The three individuals who pled guilty before Magistrate Judge David L. West are:- Gloria Lee, aka Gloria Rouillard, aka Gloria Lopez - one count of embezzlement, conversion or misapplication of property from Indian tribal government receiving federal funds and one count of money laundering with restitution of $1,139,996;
- Colindra House - one count of receipt of funds belonging to an Indian tribal organization that had been converted or willfully misapplied with restitution that will be determined in an amount of up to $52,401; and
- Freana Bancroft - one count of receipt of funds belonging to an Indian tribal organization that had been converted or willfully misapplied with restitution of $109,820.
Embezzlement, conversion or misapplication of property from an Indian tribal government receiving federal funds carries a penalty of not more than 10 years imprisonment, three years of supervised release and a fine of up to $250,000. Money laundering carries a penalty of not more than 20 years imprisonment, three years of supervised release and a fine of up to $500,000. Receipt of funds belonging to an Indian tribal organization that has been converted or willfully misapplied carries a penalty of not more than five years of imprisonment, three years of supervised release, and a fine of not more than $250,000.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation. This case is being prosecuted by Assistant United States Attorney Pegeen D. Rhyne.####
Visit our website http://www.justice.gov/usao/co | Follow us on Twitter @DCoNewsNurses Sentenced to Prison for Stealing Opioids from Colorado HospitalsRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that two Colorado nurses who stole opioids from hospitals were sentenced to prison by the Honorable R. Brooke Jackson of the United States District Court for the District of Colorado.
Lisa Marie Jones, 43, of Castle Rock, was sentenced to fourteen months imprisonment to be followed by three years of supervised release on April 19, 2018. According to Court documents, Jones was a nurse at the Veterans Affairs Medical Center in Denver, and a free-standing UCHealth emergency room in 2016, when she stole hydromorphone, morphine, and fentanyl from the facilities for personal use. Jones primarily stole the “waste” medication left after administering the controlled substances to patients. She tampered with two vials of fentanyl at the emergency facility, removing all of the drug, replacing it with saline, and “re-sealing” the vials with skin glue. Jones placed the tampered vials back into the automated medication management machine for potential use on future patients. The tampered vials were discovered before they could be used on any patients. Jones previously pleaded guilty to one count of theft of a controlled substance by deception and one count of tampering with a consumer product. The Court sentenced Jones to fourteen months of imprisonment and three years of supervised release on each count, to run concurrently.
Marlene Gilmore, 28, of Wellington, was sentenced to four months imprisonment to be followed by one year of supervised release on April 26, 2018. According to Court documents, Gilmore was a nurse at North Colorado Medical Center in 2016 when she stole fentanyl, morphine, and hydromorphone from the locked automated medication management system. Gilmore pleaded guilty to one count of theft of a controlled substance by deception. Evidence showed that she used drugs while on the job.
“These nurses put their patients at risk so they could get high. For that they will go to prison,” said U.S. Attorney Bob Troyer. “Patients place enormous trust in their health care providers. Caregivers who betray that trust will pay with their own freedom.”
“Patients deserve to have confidence that they are receiving the proper treatment from those entrusted with providing their medical care,” said Spence E. Morrison, Special Agent in Charge, FDA Office of Criminal Investigations, Kansas City Field Office. “We will continue to pursue and bring to justice any healthcare professionals who put their patients’ health at risk by tampering with their pain medications.”
Gregg Hirstein, Special Agent in Charge, U.S. Department of Veterans Affairs, Office of Inspector General, Central Field Office added, “The VA OIG remains dedicated to protecting our nation's heroes in the patient care environment. The seriousness of tampering with medications and drug use by healthcare providers is evident. We will continue to hold such offenders accountable.”
The cases were investigated by the Food and Drug Administration. The Department of Veterans Affairs, Office of the Inspector General also investigated the Jones case. AUSA Anna Edgar represented the United States. The cases are captioned, United States v. Jones, Case No. 17-cr-00352-RBJ, and United States v. Gilmore, Case No. 17-cr-00401-RBJ.
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Visit our website http://www.justice.gov/usao/co | Follow us on Twitter @DCoNewsEvergreen Man Pleads Guilty and Is Sentenced for Violation of Endangered Species Act Related to African Elephant HuntRead the Press Release
DENVER – Paul Ross Jackson, age 63, of Evergreen, Colorado, pleaded guilty on April 24, 2018, to violating the Endangered Species Act announced U.S. Attorney Bob Troyer and U.S. Fish and Wildlife Service, Office of Law Enforcement (FWS-OLE) Special Agent in Charge Steve Oberholtzer. The defendant was also immediately sentenced to pay the maximum fine of $25,000 by U.S. Magistrate Judge Scott T. Varholak.
According to court documents, including the stipulated facts contained in the defendant’s plea agreement, the defendant violated Zimbabwe’s Parks and Wild Life Act when he shot and killed an African Elephant inside Gonarezhou National Park in the spring of 2015. The defendant, working with a South-Africa based professional hunter, a New-York based export facilitator, and several Zimbabwe-based hunting businesses, gave instructions to have the elephant exported to South Africa, where he hoped to sell in foreign commerce 26 and 27 kilogram ivory tusks. When the government of Zimbabwe initially blocked the defendant’s effort to export the elephant to South Africa, on the ground that the defendant lived in Colorado and not South Africa, the defendant worked with others to try to obtain documentation that he was a resident of South Africa.
In a plea agreement, the defendant agreed to a four-year worldwide hunting ban that prohibits the hunting of any species designated as threatened or endangered by the U.S. Fish and Wildlife Service. The defendant also agreed to work with the United States Fish and Wildlife Service to return the ill-gotten ivory to the government of Zimbabwe.
“When American hunters violate the laws of foreign countries in the unethical pursuit of trophies, they don’t just undermine the conservation efforts that make hunting possible. They break the law,” said U.S. Attorney Bob Troyer. “Our prosecutors, working closely with Fish and Wildlife agents stationed around the globe, are committed to holding poachers accountable so that elephants and other threatened and endangered species can be appreciated by future generations.”
“The U.S. Fish and Wildlife Service is committed to protecting imperiled species around the globe from poaching and trafficking,” said Steve Oberholzer, the Special Agent in Charge of the Mountain-Prairie Region. “When a U.S. citizen unlawfully kills a protected species in another country or attempts to smuggle wildlife products, we work with that nation under our federal statutory authorities to investigate the incident and bring that person to justice. These cooperative law enforcement efforts strengthen and protect America’s borders while ensuring the conservation of cherished wildlife species."
The case was investigated by FWS-OLE.
The defendant is being prosecuted by Assistant United States Attorneys Bryan D. Fields and Suneeta Hazra.####
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Utah Resident Sentenced for Second Degree Murder on Ute Mountain Ute ReservationRead the Press Release
DURANGO -- Timothy Merritt, age 57, of Utah was sentenced by U.S. District Court Judge Robert Blackburn on April 9, 2018, to 24 years in prison for the crimes of Murder in the Second Degree in Indian Country and Assault Resulting in Serious Bodily Injury in Indian Country. Merritt was convicted after a jury trial in Durango on September 12, 2017. His sentence also includes 5 years of supervised release, with the special conditions of participating in a cognitive behavioral treatment program and a substance abuse program.
According to evidence presented at trial, Merritt caused a fatal car crash on the Ute Mountain Ute Reservation while driving in the wrong lane of traffic with a blood alcohol content between 0.23 and 0.25. The crash caused the death of one man and serious injuries to his wife. Merritt had been arrested for drinking and driving offenses on three occasions prior to the fatal crash. Three months after the fatal crash, Merritt was again arrested driving drunk, narrowly avoiding causing another crash.
“I hope with all my heart that this conviction and sentence brings some relief to the deep suffering Merritt caused his victims and their family,” said United States Attorney Bob Troyer. “Our prosecutors and the BIA and FBI agents worked tirelessly on this case, for that sole purpose.”
“This sentence reflects the ongoing efforts of the BIA and FBI to aggressively investigate violent crime on Native American reservations and seek justice for the victims,” said Calvin Shivers, Special Agent in Charge of the FBI Denver Division.
The Bureau of Indian Affairs and the Federal Bureau of Investigation investigated this case. The United States was represented by Assistant United States Attorneys Julia Martinez, Jeffrey Graves, and former Assistant United States Attorney Dondi Osborne.
The case is captioned United States v. Merritt, Case No. 16-cr-365-REB.
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Member of Darknet Drug Trafficking Organization “ItalianMafiaBrussels” Sentenced to PrisonRead the Press Release
DENVER – United States Attorney Bob Troyer announced today that U.S. District Court Judge R. Brooke Jackson sentenced Leonardo Cristea, 22, to 36 months’ imprisonment. Cristea had previously pled guilty to one count of conspiracy to import controlled substances, in violation of Title 21, United States Code, Section 963.
On May 3, 2016, in a joint U.S./European enforcement action, law enforcement dismantled the ItalianMafiaBrussels Drug Trafficking Organization, arresting ten defendants during early morning raids in Bruges, Belgium and surrounding areas. Leonardo Cristea and Filip Lucian Simion were arrested simultaneously in Bucharest, Romania, and extradited to the District of Colorado in July and October of 2016, respectively.
The nine-count indictment underlying the extraditions charged Filip Lucian Simion, Leonardo Cristea, and others with conspiracies to distribute and import into the United States controlled substances, in violation of Title 21, United States Code, Sections 846 and 963. The defendants were also charged with substantive counts of importation of controlled substances and aiding and abetting, in violation of Title 21, United States Code, Section 952(a), and Title 18, United States Code, Section 2. In addition, Filip Lucian Simion was charged in several counts of distribution of controlled substances by means of the Internet, in violation of Title 21, United States Code, Section 841(h)(1)(A) and conspiracy to launder money, in violation of Title 18, United States Code, Section 1956(h).
The leader of the organization, Filip Lucian Simion, pleaded guilty on Monday, April 9, 2018, to one count of conspiracy to import into the United States controlled substances, in violation of Title 21, United States Code, Section 963, and one count of conspiracy to launder money, in violation of Title 18, United States Code, Section 1956(h). Both charges carry a maximum possible penalty of 20 years’ imprisonment. Simion will be sentenced in Denver on August 30, 2018.
According to court documents, from January 2013, through May 3, 2016, members of the conspiracy imported kilogram quantities of MDMA (3,4-methylenedioxymethamphetamine, a Schedule I controlled substance commonly known as Ecstasy) into the United States via the mail from various countries in Europe. The transnational organization operated online as the Darknet vendor “ItalianMafiaBrussels” or “IMB” and operated on black markets, such as the now defunct Silk Road and Silk Road 2.0, to sell the MDMA throughout the United States and other countries. The organization accepted payment for the drugs in bitcoin.
This case was investigated by the Denver Illicit Digital Economy Working Group, comprised of Homeland Security Investigations (HSI), the U.S. Postal Inspection Service, and the Internal Revenue Service – Criminal Investigation, in partnership with the Romanian Central Anti-Narcotics Unit in Bucharest, Romania, and the Belgian Federal Judicial Police, East Flanders Drug Unit in Dendermonde, Belgium. Other United States and international agencies assisting the working group in this investigation included: the Boulder County Drug Task Force, the Arapahoe County Sheriff’s Office, the Boulder County District Attorney’s Office, U.S. Customs and Border Protection offices nationwide, the Department of Justice’s Office of International Affairs, Europol, and Eurojust.
The case is being prosecuted by Assistant U.S. Attorney Michele R. Korver.
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United States Recovers over $130,000 Resolving Allegations that Federal Gas Lessee Violated the False Claims ActRead the Press Release
DENVER -- The United States Attorney for the District of Colorado, Bob Troyer, today announces the recovery of $130,752 to settle allegations that two companies, Sanders Oil & Gas, LLC and Sanco Operating Company, violated the federal False Claims Act by failing to pay money owed to the Department of the Interior’s Office of Natural Resources Revenue (ONRR) for natural gas produced from a federal lease located in New Mexico.
Federal lands can be leased for the production of natural gas in exchange for the payment of royalties on the value of the gas that is produced, among other obligations. Each month, companies with federal leases are required to report to ONRR the amount of royalties due and then pay the amount owed.
The settlement announced today resolves claims by the United States that Sanders and Sanco failed to report any production or pay any of its royalty obligation to the United States for gas produced from the Mesa Diablo lease in New Mexico from September, 2010, through December, 2016. The United States further alleged that although Sanders and Sanco paid some money for gas that was produced from that lease between January, 2010, and August, 2010, they owed additional royalties and had failed to pay the full amount that was due during this 9-month period.
“Gas companies that cheat on royalty payments are going to get caught. Our office is systematically ensuring that they pay what they owe for resources they take from federal lands. These are resources owned by all Americans, and we won’t tolerate the failure to pay for them,” said United States Attorney Bob Troyer.
“The obligation to pay federal mineral royalties is essential to the responsible development of oil and gas from public lands, and the OIG is committed to work with DOJ and its federal partners to ensure that companies developing public resources meet their legal responsibilities,” stated Ron Gonzales, Special Agent in Charge of the Department of the Interior-Office of Inspector General’s Energy Investigations Unit.
“The Bureau of Land Management takes its oversight responsibilities seriously, and will work diligently with our partners to hold liable those companies that fail to meet their legal and regulatory commitments,” said Shannon Tokos, Acting Deputy Director of the BLM’s Office of Law Enforcement and Security.
The United States Attorney’s Office acknowledges the cooperation and teamwork demonstrated by governmental entities involved in today’s recovery. Special thanks are extended to the Office of Natural Resources Revenue, the Department of the Interior’s Office of the Solicitor, the Energy Investigations Unit of the Department of the Interior’s Office of Inspector General, and the Special Investigations Group of the Bureau of Land Management. The United States Attorney’s Office in Denver, Colorado works closely with these offices in the pursuit of unpaid or underpaid oil and natural gas revenue, claims for which are processed at the Office of Natural Resources Revenue at the Federal Center in Lakewood.
The United States was represented in this matter by Assistant United States Attorney Amanda Rocque and former Special Assistant United States Attorney Marisela Sandoval.
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Denver Man Sentenced to Prison for Child PornographyRead the Press Release
DENVER – Andrew Workman, age 26 of Lone Tree, Colorado was sentenced today by the Hon. R. Brooke Jackson in U.S. District Court to 97 months of imprisonment, followed by five years of supervised release. He will also have to register as a sex offender. Workman was indicted by a Grand Jury in October, 2015, for receipt and possession of child pornography.
According to court filings and hearings, Workman was a member of a child pornography board called “Playpen” that was hidden on the dark web via the Tor network. The FBI obtained approval from a federal court in the Eastern District of Virginia to deploy a Network Investigative Technique (NIT) to pierce through the anonymity provided by the Tor network and obtain IP addresses for the users of the website, including Workman. Using the IP address information, the FBI obtained a search warrant for Workman’s house in Colorado. When agents arrived to execute the search warrant, Workman was in the act of downloading child pornography video files onto his computer using peer to peer software. An exam of his computer showed that Workman was in possession of over 1,200 images and videos of child pornography, many of which showed toddlers and babies suffering violent sexual abuse.
In June 2016, Workman moved to suppress the evidence against him and challenged the legality of the search warrants. In September 2016, the District Court granted the motions and suppressed the evidence. The United States appealed the ruling. In July 2017, the United States Court of Appeals for the Tenth Circuit reversed. On November 3, 2017, Workman pleaded guilty to one count of receipt of child pornography.
“Workman robbed children of their innocence. Today he pays with years of his life,” said United States Attorney Bob Troyer. “Prosecutors in my office, together with our law enforcement partners, are working right now to take offenders like Workman out of the darkness, and put them behind bars. Our children deserve no less.”
“Combating the exploitation and victimization of children is one of the FBI’s top priorities,” said FBI Denver Special Agent in Charge, Calvin Shivers. “Today’s sentence demonstrates those who prey on children will be prosecuted to the fullest extent of the law.”
The case was investigated by the FBI Denver and the Denver Police Department. Assistant United States Attorneys David Tonini and Judith A. Smith, Chief of the Cybercrime and National Security Section, represented the United States in the District Court. Attorney John P. Taddei of the Department of Justice’s Criminal Division, Appellate Section, handled the appeal.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section of the Department of Justice’s Criminal Division, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Woodland Park Man Indicted for Tax EvasionRead the Press Release
DENVER – On March 26, 2018, Scott Daniel Roughen, age 52, of Woodland Park, Colorado was arrested following a federal grand jury indictment on charges of tax evasion, announced United States Attorney Robert C. Troyer and IRS Criminal Investigation Special Agent in Charge Steven Osborne. Roughen had his initial appearance on March 26, 2018, before U.S. Magistrate Judge Kristen L. Mix. His arraignment is set for March 29, 2018, before Magistrate Judge Nina Y. Wang.
Roughen faces one count of tax evasion. According to the indictment, he allegedly failed to file an individual federal tax return for any of the tax years 2000 through 2006. After the IRS assessed tax liabilities for Roughen for those tax years, Roughen allegedly evaded the payment of those taxes in a number of ways, including hiding his income and using bank accounts held in names other than his own. This charge carries a penalty of not more than 5 years imprisonment.
This case is being investigated by the Internal Revenue Service – Criminal Investigation. This case is being prosecuted by Assistant United States Attorney Pegeen Rhyne.
The defendant is presumed innocent unless and until proven guilty in a court of law.
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Golden Company Sentenced for Violating the Clean Air ActRead the Press Release
DENVER – OE Construction Corporation, a Golden-based excavation and underground utility company, pled guilty yesterday to being an accessory after the fact to violating the Clean Air Act. U.S. Magistrate Court Judge Kristin L. Mix sentenced OE to pay a $15,000 fine and up to $55,000 in restitution to companies that purchased modified trucks from OE. She also sentenced OE to three years of supervised probation, during which time the government will closely monitor OE’s trucks to ensure that their emissions systems are in compliance with state and federal law.
According to the plea agreement, an employee at OE worked with a Canadian company called J-Ball Electronics to falsify the monitoring devices required by the Clean Air Act on at least six OE Construction-owned vehicles. The OE Construction employee purchased kits from J-Ball that allowed him to alter the vehicles’ emission control systems. The effect of these modifications was to dramatically increase the release of dangerous pollutants from these vehicles, including particulate matter, NOx (mono-nitrogen oxides), and hydrocarbons.
When contacted by the government concerning these Clean Air Act violations, OE Construction admitted that four vehicles had been modified, and assured the government that only the four vehicles had been tampered with and that it had repaired the four vehicles. However, OE Construction did not reveal that J-Ball and OE’s employee had modified at least two other vehicles that OE Construction intended to put up for auction. In this way, OE attempted to avoid detection, prosecution, and punishment for the additional vehicles that the OE employee had modified.
“We take seriously our job of protecting the environment in Colorado, and we won’t hesitate to prosecute corporations or individuals committing environmental crimes,” said U.S. Attorney Bob Troyer.
“Emission control devices for vehicles are required to ensure public health and safety,” said Jeffrey Martinez, special agent in charge of EPA’s criminal enforcement program in Colorado. “The illegal actions in this case were not isolated incidents or mistakes; they were deliberately and carefully planned. Today’s sentencing shows that EPA and its law enforcement partners will hold responsible those who violate laws designed to protect the health of our communities.”
This matter was investigated by the EPA’s Criminal Investigation Division. The prosecution was handled by Assistant U.S. Attorneys Rebecca Weber and Suneeta Hazra.
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Stapleton Couple Sentenced for Income Tax Evasion and Bankruptcy FraudRead the Press Release
DENVER –Daryl F. Yurek, age 62, and Wendy M. Yurek, age 62, were sentenced by U.S. District Court Judge William J. Martinez on March 22 and 23, 2018. Mr. Yurek was sentenced to 50 months incarceration followed by three years of supervised release and an asset forfeiture money judgment was entered against him in the amount of $132,991.61. Mrs. Yurek was sentenced to 27 months incarceration followed by three years of supervised release. The Yureks and were also ordered to pay $1,614,536.38 in restitution to the IRS. Both were convicted by a Denver Jury on July 27, 2017, of tax evasion and bankruptcy fraud following a two week trial. Daryl Yurek was also convicted of three additional related offenses. Their sentences were announced today by United States Attorney Bob Troyer and IRS Criminal Investigation Special Agent in Charge Steven Osborne.
According to the indictment and evidence presented at trial, Daryl Yurek was a partner in Bolder Venture Partners from 1999 through 2012, and Wendy Yurek was a partner from 2008 through 2012. Daryl Yurek acted as a consultant to start-up and growing companies and provided a variety of services, including temporary management and fundraising. Daryl Yurek also exerted significant control over other companies, including ID Watchdog, and Veracity Credit Consultants. The Yureks reported tax due and owing for tax years 1999 and 2004 of $624,127 and $53,978, respectively. In 2006, the Yureks submitted an Offer in Compromise to the IRS attempting to settle their tax obligation for $75,000. With the Offer in Compromise, the Yureks indicated the reason for the offer was “Doubt as to Collectability – ‘I have insufficient assets and income to pay the full amount.’” Later, in September 2010, the Yureks filed with the United States usBankruptcy Court in the District of Colorado a Voluntary Chapter 7 Bankruptcy Petition. During the bankruptcy proceeding, Daryl Yurek testified that the primary reason for pursuing bankruptcy was "the $1.2 million that the IRS wants."
However, during the period the Yureks claimed to be unable to pay their tax liability, the Yureks caused Bolder Venture Partners and Veracity Credit Consultants to pay substantial personal expenses for the Yureks. In March, 2006, the Yureks purchased a downtown Denver loft as their personal residence for $1.3 million in the name of one of their sons. Between 2006 and 2011, Veracity Credit Consultants made mortgage payments of $526,511.99 for the Yureks’ loft, while Bolder venture Partners paid $43,866 for the loft’s Condo Association Fees. Additionally, between 2006 and 2010, Veracity Credit Consultants made $107,204.36 in rental payments for vacation homes in Tabernash, Colorado used by the Yureks. Daryl Yurek’s Pinehurst Country Club membership and associated expenses paid by Veracity Credit Consultants between 2007 and 2012 totaled approximately $90,810.74.
Furthermore, the Yureks committed numerous affirmative acts of evasion, including submitting false statements to the IRS on IRS Forms 433-A, IRS Collection Information Statement for Wage Earners and Self-Employed Individuals, as well as Daryl Yurek transferring shares he held in ID Watchdog to Veracity Credit Consultants and to his sons while falsely claiming to the IRS that he had not made any transfers for less than full value.
“It’s pretty simple: you’ve got to pay your taxes,” said U.S. Attorney Bob Troyer. “The Yureks were determined not to pay, now they’ll pay with prison.”
“Taxpayers thinking about participating in fraudulent tax schemes, including hiding assets, should stop in their tracks and carefully consider the consequences of taking the next step,” said Steven Osborne, Special Agent in Charge of IRS Criminal Investigation. “Those consequences include going to prison, being branded a convicted felon, and paying back all the taxes owed plus steep penalties and interest.”
This case was prosecuted by Assistant United States Attorney Pegeen D. Rhyne with Assistant United States Attorney Laura B. Hurd assisting with asset forfeiture. The case is captioned United States of America v. Yurek, et al., Case No. 15-cr-394.
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Final Defendant Pleads Guilty in $2 Million Conspiracy to Defraud the United StatesRead the Press Release
DENVER – Jaquon H. Mucsarney, age 36, of Aurora, Colorado pled guilty on March 21, 2018, to conspiracy to defraud the United States and aggravated identity theft, announced United States Attorney Bob Troyer, IRS – Criminal Investigation Special Agent in Charge Steven Osborne and Social Security Administration Office of Inspector General Special Agent in Charge Wilbert M. Craig. Jaquon H. Mucsarney, with co-conspirators Schosche Mucsarney (Schosche) and Sherry Charleston (Charleston), were indicted by a Federal Grand Jury in Denver on January 7, 2016.
According to information contained in the indictment and plea agreement, between January 1, 2011 and January 1, 2016, Jaquon Mucsarney devised a scheme to defraud the Internal Revenue Service by filing tax returns with false information in order to obtain fraudulent tax refunds. At various times, Mucsarney received assistance from Schosche and Charleston. As leader of this scheme, Mucsarney created approximately 50 fictitious businesses, which only existed on paper and had little or no legitimate business activity. Mucsarney typically filed U.S. Corporation Income Tax Returns (Forms 1120) on behalf of the companies, which contained false information relating to income, deductions, overpayments, and refunds due. Over the course of the scheme, Mucsarney, with the assistance of others, submitted approximately 100 fraudulent income tax returns to the IRS, which claimed refunds totaling $2,168,277. Of the amount requested, the IRS ultimately paid out approximately $327,970.
Jaquon Mucsarney is scheduled to be sentenced by United States District Court Chief Judge Marcia S. Kreiger on June 5, 2018. Both Schosche Mucsarney and Sherry Charleston were sentenced previously. The case is captioned United States of America v. Jaquon Mucsarney et al., Case No. 16-cr-0008-MSK.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the Social Security Administration, Office of Inspector General. This case is being prosecuted by Assistant U.S. Attorney Tim Neff.
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Denver Jury Convicts Cocaine TraffickerRead the Press Release
DENVER - The United States Attorney’s Office for the District of Colorado today announces that Carlos Fernandez-Barron aka “Carlitos” was convicted in the United States District Court for conspiring to distribute, and possessing with intent to distribute, five kilograms or more of cocaine. A Denver jury returned the verdict in federal court today, acquitting him of two other charges.
At trial, before United States District Court Judge Raymond P. Moore, the Government introduced evidence showing that Fernandez-Barron was a Denver-based member of a sophisticated cocaine trafficking conspiracy, which was responsible for sending hundreds of kilograms of cocaine to Colorado and millions of dollars in proceeds back to Chihuahua, Mexico. The Defendant’s role was to help unload cocaine from hidden compartments in vehicles, distribute it in the Denver metro area, and then collect proceeds to return to Mexico. A Denver jury today convicted Fernandez-Barron of one count of conspiracy to distribute five kilograms or more of cocaine in violation of Title 21, United States Code, Section 846 and one count of possession with intent to distribute five kilograms or more of cocaine in violation of Title 21, United States Code, Section 841(a)(1), (b)(1)(A)(ii)(II). His sentencing is set for June 4, 2018.
The case was investigated by the Rocky Mountain High Intensity Drug Trafficking Areas, Front Range Task Force, which includes agents from the Drug Enforcement Administration, Denver Field Division. Assistant United States Attorney Peter McNeilly and Special Assistant United States Attorney Wayne Paugh are prosecuting this matter for the United States. The case is captioned, United States of America v. Carlos Fernandez-Barron, Case No. 15-cr-360-RM.
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Multiple Defendants Sentenced for Participating in Large Scale Heroin and Cocaine RingRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces the successful completion of a Colorado law enforcement operation, resulting in convictions of 17 defendants for conspiracy to distribute heroin and cocaine, possession with intent to distribute heroin and cocaine, distribution of heroin and cocaine, money laundering, or using phones to facilitate felonies. In addition, the operation seized an estimated 12 kilos of heroin, 2 kilos of cocaine, 4 guns and $190,000 in cash.
Twenty-three individuals were indicted on June 23, 2016, for a variety of criminal charges linked to the “Castores” group, which was comprised mostly of individuals from Guasave, Sinaloa, Mexico. Between approximately January 2010 and March 2015, this group transported heroin and cocaine from Arizona to Denver, Colorado, where they stored it in stash houses. Members then coordinated heroin and cocaine deliveries to approximately 20 street-level distributors in the Denver area. The organization’s “dispatcher” coordinated the runners and the street-level distributors each day, making sure the street-level distributors were ready to open the door for the runners as soon as the runners arrived. The day before the deliveries, the dispatcher would send requests for daily orders to the street-level distributors and make sure the runners knew what the street-level dealers wanted in terms of drug type (heroin or cocaine), quantity, and quality.
In order to facilitate the drug distribution, members used telephones to set the time, location, quantity, and price for the drug sales. The dispatcher frequently changed phones to avoid detection by law enforcement. Additionally, members used commercial wire transfer services to conceal and disguise the source, ownership, control, and location of the proceeds being sent to the suppliers in Sinaloa, Mexico. The members used false “sender” names and addresses to conceal the true ownership of the wires when they were sent.
Of the 23 defendants named in the fourth superseding indictment, 10 were sentenced as follows:
- Paul Rubio-Sepulveda aka Pelon – 235 months imprisonment, followed by 5 years supervised release;
- Juan Miguel Espinoza-Romero aka Macizo – 144 months imprisonment, followed by 5 years supervised release;
- Yonger Ricardo Matute-Venegas aka Yonger Venegas – 84 months imprisonment, followed by 5 years supervised release;
- Jose Cruz-Cruz aka Jefferson – 78 months imprisonment, followed by 4 years supervised release;
- Natasha Santistevan – 36 months imprisonment, followed by 2 years supervised release;
- Luis Cruz-Medina aka Carlos Medina aka Marlon Arturo Velasquez-Medina aka Chucky – 40 months imprisonment;
- Jose Nemecia-Garcia aka Jose Luis Galeas-Almendarez – time served, which was 33 months imprisonment;
- Ema Belinda Bustamante-Raudales aka Yeime Belinda Saensz aka Jaime – time served, which was 39 months imprisonment, followed by 2 years supervised release;
- Aaron Flores-Villegas aka Missael Valdez-Osorino – 70 months imprisonment, followed by 5 years supervised release; and,
- Jose Lopez-Robles aka Javier Sanchez Vega aka Popote – 96 months imprisonment, followed by 4 years supervised release.
In addition, Marco Castro-Cruz was also named as a defendant in the Fourth Superseding Indictment. Along with defendants Kyle Adams and Reynieri Centeno-Velasquez, he was separately indicted in the District of Wyoming for Distribution of Heroin Resulting in Death. Those charges stem from a heroin transaction in Denver, Colorado, that led to an overdose death in Laramie, Wyoming. After pleading guilty in both cases, Castro-Cruz was sentenced to 240 months imprisonment, followed by 5 years of supervised release. Kyle Adams and Centeno-Velasquez were separately sentenced to 5 and 6 year terms of imprisonment (respectively), followed by three year terms of supervised release.
Four other named defendants received felony convictions and seven defendants remain fugitives. The case is captioned U.S. v. Aguilar-Cruz, et al., Case No. 14-cr-00144-CMA.
This case was investigated by the Front Range Task Force, which is comprised of agents and officers from the Drug Enforcement Administration, Homeland Security Investigations, Internal Revenue Service – Criminal Investigation, United States Marshals Service, Denver Police Department, Colorado Bureau of Investigation, Arapahoe County Sheriff’s Office and the Douglas County Sheriff’s Office. Assistant United States Attorneys Guy Till, Barbara Skalla, and Laura Hurd represented the United States. The District of Wyoming indictment was investigated by the Laramie Police Department, and the Drug Enforcement Administration. Assistant United States Attorneys Guy Till and Brad Giles also worked on that prosecution.
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Inmate Sentenced to 46 Months in Prison for Assaulting and Resisting a Federal EmployeeRead the Press Release
DENVER - A federal prison inmate already serving multiple federal sentences was sentenced to serve an additional 46 months in prison for assaulting and resisting a federal employee, announced U.S. Attorney Bob Troyer of the United States Attorney’s Office for the District of Colorado.
James Wilson, 36, of Pitt County, North Carolina, was sentenced on March 9, 2018, by U.S. District Court Judge William J. Martínez, who also ordered Wilson to serve three years of supervised release following his prison sentence. Previously, Wilson pleaded guilty on Dec. 7, 2017, to one count of assaulting and resisting a federal employee.
According to court filings, on January 2, 2017, Wilson intentionally and forcibly assaulted, resisted, opposed, or impeded an officer with the Federal Bureau of Prisons at the United States Penitentiary in Florence, Colorado (USP Florence). Before being escorted to a lieutenant’s holding cell, Wilson was ordered to stop and submit to a pat search. Wilson ignored the order and ran. Another correctional officer observed a weapon — a cell-made shank — in Wilson’s hand as he fled. After a struggle, Wilson was placed on the ground, where he continued to actively resist. As Wilson resisted, he punched an officer multiple times in the chest. Following the incident, a review of the officer’s polo shirt showed at least one puncture hole over his left breast. The officer’s protective vest, which had several indentations from the assault, protected the officer from sustaining substantial bodily injury.
The Federal Bureau of Investigation and the Special Investigative Service of the Federal Bureau of Prisons investigated this case. This case was prosecuted by Assistant U.S. Attorney Juan G. Villaseñor, and Special Assistant U.S. Attorney Clay C. Cook, of the District of Colorado.
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Oregon Pastor Sentenced to More Than 11 Years in Prison for Transporting Child PornographyRead the Press Release
An Oregon man was sentenced today to serve 135 months in prison for transportation of child pornography, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Bob Troyer of the District of Colorado.
James Parkhurst, 57, of Portland, Oregon, formerly a pastor, was sentenced today by U.S. District Court Chief Judge Marcia S. Krieger, who also ordered him to serve 15 years of supervised release following his prison sentence. Parkhurst pleaded guilty on Nov. 16, 2017 to one count of transportation of child pornography.
According to court filings, Parkhurst traveled to Colorado and produced images of child pornography in August 2010 and then transported those images to his home in Michigan. According to admissions made in conjunction with the guilty plea, Parkhurst took three trips, including the one to Colorado in August 2010, where he took photographs of nude minors who were in his care. A forensic examination of the electronic devices seized from the defendant’s Oregon residence in 2016 revealed hundreds of thousands of images and over 3,500 videos of minors in various stages of undress, including minors posed in sexually suggestive and erotic poses saved on the defendant’s computer and external hard drives.
The U.S. Postal Inspection Service investigated this case with assistance from an investigative analyst in the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). The U.S. Attorney’s Office of the District of Oregon also provided assistance in the investigation. This case was prosecuted by CEOS Trial Attorney Lauren S. Kupersmith and Assistant U.S. Attorney Alecia L. Riewerts of the District of Colorado.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Oregon Pastor Sentenced to More Than 11 Years in Prison for Transporting Child PornographyRead the Press Release
WASHINGTON - An Oregon man was sentenced today to serve 135 months in prison for transportation of child pornography, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Bob Troyer of the District of Colorado.
James Parkhurst, 57, of Portland, Oregon, formerly a pastor, was sentenced today by U.S. District Court Chief Judge Marcia S. Krieger, who also ordered him to serve 15 years of supervised release following his prison sentence. Parkhurst pleaded guilty on Nov. 16, 2017 to one count of transportation of child pornography.
According to court filings, Parkhurst traveled to Colorado and produced images of child pornography in August 2010 and then transported those images to his home in Michigan. According to admissions made in conjunction with the guilty plea, Parkhurst took three trips, including the one to Colorado in August 2010, where he took photographs of nude minors who were in his care. A forensic examination of the electronic devices seized from the defendant’s Oregon residence in 2016 revealed hundreds of thousands of images and over 3,500 videos of minors in various stages of undress, including minors posed in sexually suggestive and erotic poses saved on the defendant’s computer and external hard drives.
The U.S. Postal Inspection Service investigated this case with assistance from an investigative analyst in the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). The U.S. Attorney’s Office of the District of Oregon also provided assistance in the investigation. This case was prosecuted by CEOS Trial Attorney Lauren S. Kupersmith and Assistant U.S. Attorney Alecia L. Riewerts of the District of Colorado.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Gunsmoke Gun Shop Owner Sentenced to 78 Months for Conspiracy and Tax FraudRead the Press Release
DENVER – Richard Wyatt, age 54, of Evergreen, Colorado was sentenced today by U.S. District Court Chief Judge Marcia S. Krieger to serve 78 months in prison followed by three years of supervised release for conspiracy to deal in firearms without a license and for tax fraud, announced United States Attorney Bob Troyer, IRS-Criminal Investigation (IRS-CI) Denver Field Office Special Agent in Charge Steven Osborne, and Bureau of Alcohol, Tobacco, Firearms, and Explosives Denver Field Division Special Agent in Charge Debora Livingston. As part of today’s sentencing, the Court found that 490 firearms were involved in the commission of Wyatt’s offenses. Those firearms were ordered forfeited. The amount of restitution to the Internal Revenue Service will be determined at a future hearing.
According to the indictment and evidence presented at trial, Wyatt operated Gunsmoke, a store in Wheat Ridge, Colorado, displaying firearms and firearm accessories for sale. Wyatt was the principal decision maker for the store and controlled the store’s bank account. In addition to holding itself out as a business that bought and sold firearms, Gunsmoke provided gunsmithing services. Wyatt aggressively publicized his business by posting videos on YouTube and by appearing in a reality television series that appeared on the Discovery Channel. The reality TV show aired from 2011 through 2012, showing a total of 26 episodes.
In April 2012, Wyatt surrendered Gunsmoke’s federal firearms license due to violations of federal laws and regulations. After Gunsmoke surrendered its federal firearms license, Gunsmoke changed the address of the federal firearms license of another store known as Triggers Firearms LLC’s (Triggers) to the Gunsmoke address, but did not play any role in managing the store or receive any profits. Thereafter, Wyatt continued to operate Gunsmoke as a retail firearms store that also offered gunsmithing services, but Wyatt never held an ownership interest in Triggers or assumed management of Triggers. Wyatt and other conspirators submitted false paperwork to the ATF to hide that Triggers was acting as a straw licensee for Gunsmoke.
Without a federal firearms license, Wyatt ran his business by directing Gunsmoke employees to enter firearm sales in Gunsmoke’s computer point of sales software system as “miscellaneous” sales rather than firearm sales. Customers who shopped at Gunsmoke were able to look at numerous firearms that were displayed throughout the store. Customers were able to speak with Gunsmoke employees, including Wyatt, about the features of particular firearms. Finally, customers selected and purchased firearms from Gunsmoke and were able to have gunsmithing services performed on firearms at the Gunsmoke premises. After receiving payment for firearms, Gunsmoke employees directed customers to another firearms store which had a valid federal firearms license, where the customers filled out the background check paperwork and the customers took possession of the firearm(s) they had purchased at Gunsmoke. Customers who wanted gunsmithing services left their firearms with Gunsmoke. After the gunsmiths at Gunsmoke completed their work, they returned the firearms to the customers. The customers paid Gunsmoke directly for this service. Wyatt, without the federal firearms license, continued to order new guns for sale to keep the business going.
After a 3-week jury trial last year, a Denver jury convicted Wyatt of two counts of conspiracy of dealing in firearms without a license, filing a false tax return, and multiple counts of failure to file. Specifically, Wyatt failed to pay over $500,000 in income tax for years 2009-2012, and did not file tax returns for years 2009, 2010 and 2012. For 2011, Wyatt willfully filed a tax return he knew to be false, stating that he lost money, when in fact he made at least $350,000 that he failed to disclose.
“A man has to make a choice, and Wyatt chose wrong,” said U.S. Attorney Bob Troyer. “Unless your ambition is to serve a long sentence in the Federal Bureau of Prisons, selling guns illegally and cheating on your taxes are going to be bad choices.”
“Even television reality stars are not exempt from the reality of our nation’s tax laws,” said Internal Revenue Service Criminal Investigation Denver Field Office Special Agent in Charge Steve Osborne. “IRS-CI will continue focusing our investigative efforts on individuals who attempt to thwart their tax responsibilities and do not comply with the law. Today’s sentencing is a reminder that there are detrimental consequences for this type of criminal behavior.”
“Wyatt’s willingness to operate outside of the law is not only an affront to public safety, but also to all Federal Firearms Licensees that follow federal firearm laws and regulations every day,” said Special Agent in Charge Debora Livingston of the Denver Field Division for the Bureau of Alcohol, Tobacco, Firearms, and Explosives. “The sentence today demonstrates that ATF will investigate those who attempt to circumvent those laws and regulations.”
This case was investigated by IRS-CI and ATF. The case was prosecuted by Assistant United States Attorneys Suneeta Hazra, Peter McNeilly, and Anna Edgar. Assistant United States Attorney Tonya Andrews is handling the forfeiture of assets associated with the case.
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Drug Dealer Sentenced to Life ImprisonmentRead the Press Release
DENVER -- The United States Attorney’s Office for the District of Colorado today announces that Jorge Loya-Ramirez was sentenced to life imprisonment for his role in a conspiracy to distribute methamphetamine throughout northern Colorado and southwestern Kansas. The sentence was pronounced by United States District Judge, Robert E. Blackburn, in United States v. Amaya, et al, 15-cr-272-REB, on March 6, 2018. Loya-Ramirez was indicted by a grand jury on June 23, 2015, as part of a 28 person drug conspiracy operating in Colorado, California, and Kansas. He was the last remaining defendant in the case to be tried before a jury, and he was convicted on August 23, 2017, for distribution and possession with the intent to distribute methamphetamine, as well as the drug conspiracy.
At trial, the evidence showed Loya-Ramirez was the leader of a methamphetamine syndicate and used a team of employees to distribute hundreds of pounds of methamphetamine. To facilitate drug distribution, Loya-Ramirez used violence, intimidation and deadly weapons. When he was stopped near Lamar, Colorado, in May, 2015, he had over a kilogram of cocaine and just under a half-pound of methamphetamine in his possession.
“Poison and pain are what this defendant cultivated in Colorado,” said U.S. Attorney, Bob Troyer. “Thanks to the FBI, Colorado State Patrol, many other law enforcement partners, and our tireless prosecution team, this dope dealer’s day is done.”
“This investigation illustrates the FBI’s commitment to work with its partners to address violent crime,” said FBI Denver Special Agent in Charge Calvin Shivers. “We extend our gratitude to our law enforcement partners and prosecutors for dismantling this drug trafficking organization and bringing charges forward.”
Loya-Ramirez is the last of the defendants to be sentenced in the case, closing out a multi-year investigation and the prosecution of a large-scale drug trafficking operation in the Denver metropolitan area and beyond. The United States Attorney’s Office Organized Crime Drug Enforcement Task Force prosecuted this case. Agents from the Federal Bureau of Investigation led the investigation, with assistance from other agencies working at the Metro Gang Task Force and the Colorado State Patrol.
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Denver Jury Convicts International Arms ExporterRead the Press Release
DENVER - The United States Attorney’s Office for the District of Colorado today announces that Katherine O’Neal, a former member of the United States Army stationed at Fort Carson, was convicted in the United States District Court for smuggling goods from the United States, specifically exporting firearms to the Dominican Republic. A Colorado jury returned the verdict in federal court, convicting O’Neal of this felony offense on March 6, 2018. O’Neal was acquitted on other counts alleging false information on firearm purchase forms and money laundering.
At trial, before United States District Court Judge William J. Martinez, the Government introduced evidence showing that O’Neal made multiple trips to the Dominican Republic shortly after purchasing firearms in Denver and Colorado Springs, including one trip where she flew from Denver to the Dominican Republic with 11 firearms in her luggage in early June 2015. She declared the firearms to the airline, but did not obtain the required State Department export license. Her bags had been misdirected by the airline and were not on her flight. When the bags arrived later, Dominican Republic officials noticed the handguns during an examination of the baggage. When she arrived at the airport to claim her luggage, she was arrested. The Dominican Republic has a ban on all imported firearms. A Denver jury found her guilty of violating 18 U.S.C. § 554(a), which prohibits smuggling goods from the United States.
Defendant O’Neal will be sentenced in August 2018. The case is captioned, United States of America v. Katherine O’Neal, Case No. 15-cr-0353-WJM.
The case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Bureau of Alcohol, Tobacco and Firearms, as well as the Dominican Republic, where charges are pending her extradition to that country.
Assistant United States Attorneys Robert Brown and Kurt Bohn are prosecuting this matter for the United States.
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Former Business Owner Pleads Guilty to Impeding the Due Administration of the Internal Revenue CodeRead the Press Release
GRAND JUNCTION – Sergio Murillo, age 42, of Aurora, Colorado pled guilty to obstructing or impeding the due administration of the Internal Revenue Code on February 22, 2018, before U.S. District Court Magistrate Judge Gordon P. Gallagher, who recommended that the U.S. District Court accept the plea. The guilty plea was announced by the United States Attorney’s Office for the District of Colorado and IRS Criminal Investigation Special Agent in Charge Steven Osborne. Murillo was previously indicted by a federal grand jury in Grand Junction on April 6, 2017, for tax evasion. As part of his change of plea, Murillo agreed to be charged by information and plead guilty to the charge of obstructing or impeding the due administration of the Internal Revenue Code.
According to the information and plea agreement, Sergio Murillo owned and was the sole proprietor of Mountain High Window Cleaning, which cleaned windows, removed snow and provided a few other real estate related services in Colorado. From 2007 through 2010, Murillo instructed Mountain High’s clients to make checks payable in his name rather than making them payable to Mountain High. He then deposited most of the checks into bank accounts under his name, as opposed to a bank account in the name of his business. For these same calendar years, he filed personal tax returns that did not report his true income. During audits, Murillo falsely told an IRS Revenue Agent that his clients determined whether to make checks payable to Mountain High or to him, and he also falsely told another Revenue Agent that all of Mountain High’s income was deposited into one bank account and he had no other bank accounts.
On February 22, 2018, Murillo admitted in his plea agreement that the total tax loss stemming from his conduct is $188,578, plus interest.
Murillo is scheduled to be sentenced on May 7, 2018, at 9:00 a.m.
This case was investigated by Internal Revenue Service – Criminal Investigation. Assistant U.S. Attorney Peter Hautzinger is prosecuting this matter for the United States.
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Colorado Business Owner Indicted for Tax EvasionRead the Press Release
A grand jury in Denver, Colorado, returned an indictment on Jan. 24, which was unsealed today, charging a health care products business owner and landlord with tax evasion and failing to file personal tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Bob Troyer for the District of Colorado.
According to the indictment, Craig Walcott, of Monument, Colorado, attempted to evade payment of his 2005 through 2007 federal income taxes and failed to file his 2012 through 2014 personal tax returns. The indictment alleges that in April of 2010, the Internal Revenue Service (IRS) assessed Walcott taxes, penalties and interest of more than $450,000 for tax years 2005 through 2007. Walcott allegedly then sought to prevent the IRS from collecting the taxes owed. According to the indictment, Walcott filed fraudulent tax returns underreporting his income, transferred property that he owned into the names of nominee entities, created and filed false documents with multiple county clerk offices to make it appear that properties he owned were encumbered, and fired a property management company to prevent it from complying with an IRS levy ordering that rent proceeds received by Walcott be paid to the IRS. The indictment further alleges that Walcott did not file his 2012 through 2014 personal tax returns.
If convicted, Walcott faces a statutory maximum sentence of five years in prison on the tax evasion count and one year in prison on each of the failure to file counts. He also faces a period of supervised release, restitution and monetary penalties.
An indictment merely alleges that a crime has been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Troyer commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Lee Langston and Andrew Kameros of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Eight Individuals with Ute Mountain Ute Tribe Plead Guilty to Embezzlement and Money LaunderingRead the Press Release
DENVER – As part of an ongoing investigation, eight individuals pled guilty this week to various charges involving funds embezzled from the Ute Mountain Ute Tribe announced U.S. Attorney Bob Troyer, FBI Denver Field Office Special Agent in Charge Calvin A. Shivers, and IRS-Criminal Investigation Denver Field Office Special Agent in Charge Steven Osborne.
According to information contained in court documents, from at least 2011 through October 2015, Ute Mountain Ute (UMU) 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 member was a child and from which the member 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 the 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. Several of the people who received the fraudulent checks were not tribal members and were not entitled to any tribal benefits.
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. In some instances, embezzled tribal funds were wired to inmates with the Federal Bureau of Prisons who were not UMU tribal members and not entitled to any UMU tribal funds.
The eight individuals who pled guilty before Magistrate Judge David L. West are:
- Oraleigh Jaramillo aka Oraleigh Hammond – one count of Embezzlement, Conversion or Misapplication of Property from Indian Tribal Government receiving federal funds and one count of Money Laundering with restitution of $309,537;
- Classia Rose Hammond – one count of Receipt of funds belonging to an Indian tribal organization that had been converted or willfully misapplied with restitution of $65,508.56;
- Loia K. House – one count of Receipt of funds belonging to an Indian tribal organization that had been converted or willfully misapplied with restitution of $22,190;
- Darrell Jonah Lee – one count of Receipt of funds belonging to an Indian tribal organization that had been converted or willfully misapplied with restitution of $142,411;
- Kevin Ryan Lee – one count of Receipt of funds belonging to an Indian tribal organization that had been converted or willfully misapplied with restitution of $89,132;
- Myreon Lehi – one count of Receipt of funds belonging to an Indian tribal organization that had been converted or willfully misapplied with restitution of $23,280;
- Ladelda Lopez aka Ladelda Box – one count of Receipt of funds belonging to an Indian tribal organization that had been converted or willfully misapplied with restitution of $34,823; and
- Jennifer Ann Pioche – one count of Receipt of funds belonging to an Indian tribal organization that had been converted or willfully misapplied with restitution of $106,497.
Additionally, Gloria Lee aka Gloria Rouillard, aka Gloria Lopez made her initial appearance on an Information charging one count of Embezzlement, Conversion or Misapplication of Property from Indian Tribal Government receiving federal funds and one count of Money Laundering.
Embezzlement, Conversion or Misapplication of Property from an Indian Tribal government receiving federal funds carries a penalty of not more than 10 years imprisonment, three years of supervised release and a fine of up to $250,000. Money laundering carries a penalty of not more than 20 years imprisonment, three years of supervised release and a fine of up to $500,000. Receipt of funds belonging to an Indian tribal organization that has been converted or willfully misapplied carries a penalty of not more than five years of imprisonment, three years of supervised release, and a fine of not more than $250,000.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. This case is being prosecuted by Assistant United States Attorney Pegeen D. Rhyne.
Arvada Man Sentenced to Federal Prison for Mailing MarijuanaRead the Press Release
DENVER – Mark Herbert Koenig, age 36, of Arvada, Colorado, was recently sentenced by U.S. District Court Judge R. Brooke Jackson to serve one year and a day in federal prison for possession of a controlled substance with the intent to distribute, U.S. Attorney Bob Troyer and U.S. Postal Inspector in Charge Dana Carter announced. Koenig was sentenced on January 25, 2018, following his entering a guilty plea on October 27, 2017.
According to the stipulated facts contained in the plea agreement, in four separate times, October 5, 2015, November 17, 2015, December 16, 2015, and January 6, 2016, Koenig was observed mailing a package. U.S. Postal Inspectors seized each package after a drug dog alerted to it. A warrant was obtained in each instance, and the packages opened, containing between 950 grams to 1.600 kilograms of marijuana. On January 13, 2016, a search warrant was obtained for the defendant’s residence. Inside Postal Inspectors found 123 mature marijuana plants. For purposes of sentencing, both the prosecution and defense agreed in the plea agreement that the total amount of marijuana that was considered for relevant conduct was 18,672 grams.
“U.S. Postal Inspectors continue to aggressively target individuals who use the postal service to distribute controlled substances,” said Dana Carter, Inspector in Charge of the U.S. Postal Inspection Service, Denver Division. “Our efforts to protect the nation’s mail, and postal customers, from illegal drug shipments are highlighted in cases such as these, where repeat offenders are sent to federal prison.”
This case was investigated by the U.S. Postal Inspection Service, along with the Arvada Police Department and the West Metro Drug Task Force. This case was prosecuted by Assistant U.S. Attorney Kurt Bohn.
Former Office Manager Sentenced for Wire Fraud and Filing a False Tax Return Related to Embezzlement of FundsRead the Press Release
DENVER – Kimberly Pitts, age 48, of Pueblo, Colorado, was sentenced late last week by U.S. District Court Judge Philip A. Brimmer to serve 41 months in federal prison, followed by 3 years of supervised release for wire fraud and filing a false tax return, U.S. Attorney Bob Troyer, IRS Criminal Investigation Special Agent in Charge Steven Osborne and FBI Denver Division Special Agent in Charge Calvin Shivers announced. Pitts, who pled guilty on July 28, 2017, was also ordered to pay restitution of $768,439 to victim Associates in Gastroenterology (AG) and $382,014.58 to the Internal Revenue Service.
According to the information and plea agreement, Associates in Gastroenterology (AG) hired Pitts as their office manager in February of 2011. Beginning in approximately February of 2011 and continuing through May 30, 2015, Pitts fraudulently diverted funds in the amount of at least $768,439 from AG to herself. Pitts used various methods to divert the funds including making personal charges on credit cards belonging to AG, then using AG’s bank accounts to pay the credit card charges. In addition, Pitts used her access to obtain a new AG credit card without the company’s authorization. She fraudulently used the new credit card to pay for personal purchases. Pitts further wrote fraudulent checks from AG’s bank account, which she deposited to her own accounts and concealed the payments by changing the company’s books and records to reflect that they were payments to vendors. Pitts also wired funds from AG’s bank and retirement accounts into her bank accounts for her personal use.
Pitts willfully and knowingly filed a false federal income tax for the 2014 tax year. Pitts signed the return, under penalties of perjury, knowing that the return was false because it did not include the income she received during the 2014 tax year as a result of the scheme to defraud AG.
“Our prosecutor and our IRS and FBI partners did an exceptional job ensuring that this thief’s victims – including American taxpayers – got justice in this case,” said U.S. Attorney Bob Troyer.
“The role of IRS Criminal Investigation becomes even more apparent in embezzlement and fraud cases due to the complex financial transactions that must be unraveled," said Steven Osborne, Special Agent in Charge, IRS-Criminal Investigation, Denver Field Office. "The federal tax laws are normally violated in these cases which can add to additional jail time. As we often see, the victims are not only the taxpayers, but also the individuals and entities who suffer the financial harm.
“The recent sentencing of Kimberly Pitts should send a strong message to anyone considering engaging in embezzlement or wire fraud,” said FBI Denver Special Agent in Charge Calvin Shivers. “The FBI will continue to work with our law enforcement partners to protect our community’s businesses from those engaged in this type of criminal activity."
This case was investigated by the FBI and the Internal Revenue Service – Criminal Investigation. This case was prosecuted by Assistant U.S. Attorney Jeremy Sibert.
Ten Individuals Indicted by a Federal Grand Jury in Denver and Then Arrested for Diesel Fuel FraudRead the Press Release
DENVER – Following a year and a half investigation conducted by the FBI and other law enforcement agencies, a federal grand jury in Denver returned six indictments charging a total of ten individuals with a variety of charges related to the theft and sale of diesel fuel. During an operation this past Tuesday, January 30th, 2018, all ten defendants were arrested and have subsequently appeared before a U.S. Magistrate Judge where they were advised of their rights and the charges pending against them. Three homes and a business premises were searched and 13 gas haul trucks used during the scheme were seized.
According to the indictment, the defendants, acting as a loose-knit ring of diesel fuel thieves, went to gas stations throughout the Northern Front Range of Colorado, purchasing thousands of gallons of fuel using fraudulent credit cards. The thieves obtained individuals’ bank account numbers through illicit means, to include skimmers (devices used for secretly capturing bank account numbers and information) and/or from purchases of stolen account numbers on the dark web. The defendants or others associated with the ring would then take that information and put it on blank credit cards, also known as access devices. The credit card thieves would then use the fraudulent cards to fill trucks with diesel fuel. The defendants off-loaded the diesel fuel at storage depots located at various truck lots or businesses within Colorado, in exchange for money from fuel buyers. The trucks utilized in the scheme to haul and distribute the fuel contained modified and/or supplemental fuel tanks capable of storing approximately 100 gallons or more of diesel fuel at any given time. In several cases, the fuel tanks were installed on the trucks in a manner designed to conceal the fact that the trucks were being utilized to store and transport substantial volumes of fuel.
In one case, a defendant controlled and utilized a semi-trailer on the premises of his business --“Salinas Trucking” located in Fort Lupton, Colorado -- which served as a hidden fuel depot where defendants would off-load diesel fuel purchased with clone cards. Salinas in turn would transfer, or cause to be transferred, such fuel to various large semi-trailer trucks, buses and other commercial vehicles which he used in the course of operating his trucking business.
Those indicted and arrested include:
Moises Ramirez-Duenas (18-cr-00047)
Eddie Luis Tamayo Pena (18-cr-00025)
Lisvan Leiva Perez (18-cr-00046)
Javier Vergara Rodriquez (18-cr-00026)
Yordanis Tamayo Aguilar (18-cr-00041)
Yunior Ricardo Gutierrez Bermudez
Sergio Reynier Ona Lago
Fidel Salinas*
Yordanis Batista Pacho (18-cr-00045)
Ricardo Sarmiento Pacho
Fidel Salinas*
*Defendant Fidel Salinas named in two separate indictments
Charges include Bank Fraud, Fraudulent Use of Counterfeit Devices or Conspiracy to Fraudulently Use Counterfeit Devices, and Aggravated Identity Theft. Penalties for the ten defendants range from not more than 10 years, to not more than 30 years in federal prison.
This case was investigated by the FBI Denver Division, with assistance from Immigration Customs Enforcement - Enforcement and Removal Operations; Brighton Police Department and Colorado State Patrol.
The defendants are being prosecuted by Assistant U.S. Attorney Tim Neff.
The charges contained in the indictments are allegations, and the defendants are presumed innocent unless and until proven guilty.