District of Colorado
Press releases recorded for this federal judicial district.
Castle Rock Breast Cancer Charity Promoter Sentenced for Failure to File Tax ReturnRead the Press Release
DENVER – Adam C. Shryock, age 37, of Castle Rock, Colorado, was sentenced by U.S. District Court Magistrate Judge Michael J. Watanabe on January 25, 2018 to serve 12 months in prison followed by one year of supervised release for willful failure to file a tax return, announced U.S. Attorney Bob Troyer and IRS Criminal Investigation Special Agent in Charge Steven Osborne. Shryock, who pled guilty on April 4, 2017, was also ordered to pay restitution of $430,970 to the Internal Revenue Service.
According to the information and plea agreement, Shryock created a promotional campaign “Boobies Rock Awareness for Breast Cancer” in February, 2011 and subsequently incorporated “Boobies Rock” in California in April, 2011 as its sole owner and operator. Between April, 2011 and June 2013, Boobies Rock!, operating as a for-profit business, held between 3,600 and 4,500 promotional events selling breast cancer awareness merchandise and accepting donations at bars and sporting events throughout the country.
The Boobies Rock merchandise consisted of t-shirts, hoodies, koozies and bracelets. Hiring managers and/or sales representatives accepted cash, checks, and credit card payments at the events. Shryock instructed the money received be deposited into bank accounts controlled by Shryock at two different banks. Proceeds were also mailed or hand delivered to Shryock’s Castle Rock residence.
During the years under investigation over 2,200 cash deposits totaling over $1.8 million were made into Shryock’s accounts. Shryock used some of these funds to support his lifestyle. Based on over $2.4 million in income, Shryock earned operating Boobies Rock and other businesses between 2011 and 2013, along with income Shryock did not report in 2010 while residing in California, the amount of restitution owed to the IRS is $430,970.
“Schemes to conceal and insulate wealth in order to evade income tax, such as those utilized by Shryock do not ‘rock.’ They are unfair to every taxpayer who obeys the law and pays his/her fair share. The public should know that IRS CI will do everything we can to hold individuals accountable ensuring that our tax system is fair to everyone,” Steven Osborne, Special Agent in Charge, IRS-Criminal Investigation, Denver Field Office said.
This case was investigated by Internal Revenue Service – Criminal Investigation. This case was prosecuted by Assistant U.S. Attorney Martha Paluch.
Denver Man Sentenced to Prison Following Federal Firearm CrimeRead the Press Release
DENVER – A Denver man was sentenced earlier this week to serve 7 years in federal prison for brandishing and use of a firearm during a drug trafficking offense, U.S. Attorney Bob Troyer and ATF Denver Division Special Agent in Charge Debora Livingston announced. The man, James Harley Wheeler, age 24, appeared before U.S. District Court Judge R. Brooke Jackson, was remanded into custody at the conclusion of the hearing. A co-defendant, Kara Elizabeth Stewart, has pled guilty and awaits sentencing.
On May 8, 2017, Wheeler was charged by Criminal Complaint. A federal grand jury indicted the defendant on May 24, 2017. An Information and Change of Plea took place on September 21, 2017. He was sentenced on January 9, 2018.
According to court documents, including the stipulated facts in the plea agreement, on April 21, 2017, Wheeler and his co-defendant girlfriend, Kara Stewart, drove to a strip mall located at West Evans and South Sheridan in Denver, Colorado, with the intent to sell marijuana and marijuana wax resin. Both of the defendants, as well as the buyer had semi-automatic handguns.
At the strip mall, the defendant met the buyer. He got out of his minivan and got into the back seat of the buyer’s car. He then handed the drugs to the buyer’s brother, who was in the front passenger seat, who took it and started to weigh it on a scale. The buyer and Wheeler then got in a discussion about the quality of the marijuana wax. Shortly thereafter, the buyer, who was turned around in the driver’s seat, pulled his gun on Wheeler. There was a struggle over the gun and the buyer fired two shots, which missed Wheeler and went into the back seat. Wheeler pulled out his gun and fired at least one shot, which hit the buyer at close range in the chest and killed him. At that point, Stewart leaned over from the driver’s seat and fired her gun twice at the buyer’s car. One shot shattered the back passenger’s window and one lodged in the passenger door. The defendant got out of the buyer’s car and reached into the front passenger seat, to grab the marijuana. He then got back into the minivan, and the defendants drove away.
The defendants fled to Chicago immediately after the shooting. Police located the defendants a few days later in a public housing complex in south Chicago and placed them under arrest. The defendant had dropped his gun in the buyer’s car and picked up the buyer’s .40 handgun and fled with that. He and Stewart later sold her gun and the .40 caliber gun for $200 each in Chicago.
“This case is a great example of exceptional law enforcement in Colorado focusing on public safety,” said U.S. Attorney Bob Troyer. “Regardless of substance or tool used, we will continue to go after those who endanger our communities.”
“This case demonstrates that ATF, along with our local and Federal partners, will tirelessly pursue those who would bring violence into our communities,” said ATF Special Agent in Charge Debora Livingston. “There is no distance that would prevent ATF and its law enforcement partners from ensuring such individuals are brought to justice.”
This case was investigated by the ATF, with assistance from the Denver Police Department, the Chicago Police Department, and the Chicago office of the FBI.
The defendant was prosecuted by Assistant U.S. Attorney Colleen Covell.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a District crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
U.S. Attorney Bob Troyer Issues Statement Regarding Marijuana Prosecutions in ColoradoRead the Press Release
DENVER – U.S. Attorney Bob Troyer of the District of Colorado has issued the following statement regarding marijuana prosecutions:
“Today the Attorney General rescinded the Cole Memo on marijuana prosecutions, and directed that federal marijuana prosecution decisions be governed by the same principles that have long governed all of our prosecution decisions. The United States Attorney’s Office in Colorado has already been guided by these principles in marijuana prosecutions -- focusing in particular on identifying and prosecuting those who create the greatest safety threats to our communities around the state. We will, consistent with the Attorney General’s latest guidance, continue to take this approach in all of our work with our law enforcement partners throughout Colorado.”
U.S. Attorney Bob Troyer, District of Colorado
Citation Companies Agree to Pay $2.25 Million to Settle Civil False Claims Act AllegationsRead the Press Release
DENVER – Citation Oil & Gas Corp. and its affiliates, Citation 2002 Investment Limited Partnership and Citation 2004 Investment Limited Partnership (collectively, “Citation”), have agreed to pay $2.25 million to resolve allegations under the False Claims Act that they underpaid royalties owed on natural gas produced from federal lands in Wyoming, the Justice Department announced today. Citation Oil & Gas Corp. is an oil and gas acquisition, development, and exploration company headquartered in Houston, Texas.
“When gas companies reduce the amount of money owed to the government by taking deductions they are not entitled to, American taxpayers don’t get their fair share. This settlement is a message to the entire gas industry that the government is working together to hold them accountable,” said U.S. Attorney Bob Troyer for the District of Colorado.
“The United States allows companies to remove gas from public lands, which belong to all of us, in exchange for the full payment of royalties owed,” said Acting Assistant Attorney General Chad Readler of the Justice Department’s Civil Division. “This settlement demonstrates that the government will hold accountable those who seek to take improper advantage of the federal royalty program at the expense of American taxpayers.”
“The obligation to properly pay federal mineral royalties is essential to the responsible development of oil and gas from public lands, and the Department of the Interior (DOI) Office of the Inspector General (OIG) is committed to working with DOJ and the Office of Natural Resources Revenue on behalf of the American public to ensure that companies meet their legal responsibilities,” said Ron Gonzales, Special Agent in Charge of the DOI OIG Energy Investigations Unit.
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. Lessees must put the gas in marketable condition at no cost to the United States. Each month companies are required to report to DOI the amount of royalty that is due. This settlement resolves claims by the United States under the False Claims Act that Citation knowingly deducted from royalty values fees paid to other companies that included the cost of placing the gas in marketable condition.
The resolution in this matter was the result of a coordinated effort between the United States Attorney’s Office for the District of Colorado, the Civil Division of the Department of Justice, the DOI OIG, and the DOI’s Office of the Solicitor. No lawsuit was filed in this matter and there has been no determination of liability.
Citation Companies Agree to Pay $2.25 Million to Settle Civil False Claims Act AllegationsRead the Press Release
Citation Oil & Gas Corp. and its affiliates, Citation 2002 Investment Limited Partnership and Citation 2004 Investment Limited Partnership (collectively, “Citation”), have agreed to pay $2.25 million to resolve allegations under the False Claims Act that they underpaid royalties owed on natural gas produced from federal lands in Wyoming, the Justice Department announced today. Citation Oil & Gas Corp. is an oil and gas acquisition, development, and exploration company headquartered in Houston, Texas.
“The United States allows companies to remove gas from public lands, which belong to all of us, in exchange for the full payment of royalties owed,” said Acting Assistant Attorney General Chad Readler of the Justice Department’s Civil Division. “This settlement demonstrates that the government will hold accountable those who seek to take improper advantage of the federal royalty program at the expense of American taxpayers.”
“When gas companies reduce the amount of money owed to the government by taking deductions they are not entitled to, American taxpayers don’t get their fair share. This settlement is a message to the entire gas industry that the government is working together to hold them accountable,” said Acting U.S. Attorney Bob Troyer for the District of Colorado.
“The obligation to properly pay federal mineral royalties is essential to the responsible development of oil and gas from public lands, and the Department of the Interior (DOI) Office of the Inspector General (OIG) is committed to working with DOJ and the Office of Natural Resources Revenue on behalf of the American public to ensure that companies meet their legal responsibilities,” said Ron Gonzales, Special Agent in Charge of the DOI OIG Energy Investigations Unit.
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. Lessees must put the gas in marketable condition at no cost to the United States. Each month companies are required to report to DOI the amount of royalty that is due. This settlement resolves claims by the United States under the False Claims Act that Citation knowingly deducted from royalty values fees paid to other companies that included the cost of placing the gas in marketable condition.
The resolution in this matter was the result of a coordinated effort between the United States Attorney’s Office for the District of Colorado, the Civil Division of the Department of Justice, the DOI OIG, and the DOI’s Office of the Solicitor. No lawsuit was filed in this matter and there has been no determination of liability.
Denver Man Sentenced to Long Prison Term for Being a Felon in Possession of Firearms, Mail Theft, Bank Fraud, and Aggravated Identity TheftRead the Press Release
DENVER – Delano Medina, age 34, of Denver, Colorado, was sentenced earlier this week by U.S. District Court Judge Philip A. Brimmer to serve 153 months (over 12 years) for being a felon in possession of firearms, mail theft, bank fraud, and aggravated identity theft, U.S. Attorney Bob Troyer and Acting Inspector in Charge of the Denver Division of the U.S. Postal Inspection Service Nicole Davis announced. Medina, who appeared at the sentencing in custody, was remanded at the conclusion of the hearing. The defendant was also ordered to pay $157,014.13 in restitution to victims.
Medina pled guilty to two counts of possession of a firearm by a previously convicted felon, one count of theft of mail, one count of bank fraud, and two counts of aggravated identity theft.
According to court documents, including the stipulated facts contained in the plea agreement, between approximately April 1, 2013, and December 5, 2014, the defendant committed mail theft and bank fraud. The scheme to defraud and obtain money started with the defendant stealing outgoing mail from victims’ mailboxes. He focused on mail boxes that had the red flag raised, meaning there was outgoing mail to be picked up by the postal carrier. That mail contained victims’ personal identification information as well as financial information. Based on the stolen information accumulated from multiple victims, counterfeit checks and false identifications reflecting hybrid information from those victims were created. The defendant and others at his direction tendered counterfeit checks to a variety of retail operations for the purchase of consumer goods, especially electronics. The defendant and others then at times returned these goods to retailers in exchange for cash, or in some limited cases, in store credit. Medina conducted this scheme through numerous states, stealing mail in Colorado and then using the stolen information in Colorado as well as Nebraska, Arizona, Iowa, Texas and elsewhere.
Medina used a stolen identification to purchase a 9 mm firearm from a Cabela’s in Thronton, Colorado. He was prohibited from purchasing and possessing the firearm due to prior convictions of multiple felonies. Law enforcement ultimately recovered three firearms that the defendant admits he possessed. They were a Sturm Ruger 9 mm pistol, a Smith and Wesson 9 mm pistol, and a Browning .380 pistol. Two of the three firearms recovered from the defendant were involved in two shootings in the Denver Metro area. The defendant is currently in the Colorado Department of Corrections serving a 44-year sentence for using the firearm purchased at Cabelas in a shooting.
On December 5, 2014, defendant Medina was arrested at the Cherry Creek Mall when he attempted to purchase a watch with fraudulent identification. A search of his vehicle found that it contained numerous items related to mail theft, check fraud, and identity theft.
“This case is a good reminder, especially during the holiday season, that people need to watch out for each other to stop potential theft of mail and other crimes,” said U.S. Attorney Bob Troyer. “If you see something suspicious, please report it.”
“This case demonstrated how Postal Inspectors work with local police agencies across numerous jurisdictions to build a successful federal prosecution,” said Nicole Davis, Acting Inspector in Charge of the Denver Division of the U.S. Postal Inspection Service. “The stiff sentence handed down in this case serves as a reminder of the potential penalty for violating the public’s trust in the U.S. mail.”
This case was investigated by the United States Postal Inspection Service with assistance from the Lincoln, Nebraska Police Department, the Lone Tree Police Department, and the Grand Junction Police Department.
This case was prosecuted by Assistant U.S. Attorneys Kurt Bohn and Hetal Doshi.
Colorado Home Healthcare Business Owner Pleads Guilty to Tax EvasionRead the Press Release
A Brighton and Denver, Colorado, business owner pleaded guilty today to tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Bob Troyer for the District of Colorado.
According to documents and information provided to the court, Michelle Medina, 51, owned and operated RHHS Inc., also doing business as Reliable Home Health Services Inc., which provided home healthcare services. From 2008 through 2011, Medina concealed hundreds of thousands of dollars in personal income by having RHHS Inc. directly pay her personal expenses and by withdrawing cash from the company’s bank accounts for personal use. Medina did not inform her tax return preparer of this additional income and filed false individual income tax returns underreporting her income. Medina also failed to file 2008 through 2011 corporate income tax returns for RHHS. She admitted her actions caused a total tax loss of between $550,000 and $1.5 million.
U.S. District Court Judge Philip A. Brimmer scheduled sentencing for March 13, 2018. Medina faces a statutory maximum sentence of five years in prison, as well as a period of supervised release, restitution, and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Troyer commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Kathleen M. Barry and Benjamin J. Weir of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Aurora Man Indicted and Arrested for Coercion and Enticement, Transportation as Well as Production of Child PornographyRead the Press Release
DENVER – Ryan Charles McCraw, age 37, of Aurora, Colorado, was arrested following a federal grand jury indictment on charges of coercion, enticement and production of child pornography, U.S. Attorney Bob Troyer and FBI Denver Division Special Agent in Charge Calvin Shivers announced. McCraw, who is in federal custody, appeared today before U.S. Magistrate Judge Nina Y. Wang where he was arraigned and entered a not guilty plea. He is being detained under an order from the District of Kansas.
McCraw was indicted by a federal grand jury in Denver on October 26, 2017. He first appeared in U.S. District Court in Denver on December 4, 2017 to be advised of his rights and the charges pending against him. According to the indictment as well as information presented in open court, McCraw allegedly met underage boys living in the Denver metro area through online chat services. McCraw engaged in sexually explicit conversations with the boys over the course of months, asking them to send him sexually explicit images online. He enticed the boys to meet with him, picking them up in his car if they were too young to drive. He took them to his residence and engaged in sex acts with them. McCraw filmed the sex acts and took still images of the boys, including images of bondage. He continued this course of conduct for over a year with multiple victims. McCraw boasted online that he had “trained” 12 other boys.
Authorities believe that there could be other victims of the defendant. To that end, attached please find a photo of the defendant released in hopes of determining whether there are other child victims. If you are a victim or know of someone who could be a victim of the defendant, you are asked to contact the FBI at 970-663-1028.
McCraw faces two counts of coercion and enticement and attempted coercion and enticement. Those two counts carry penalties of not less than 10 years and up to life in federal prison. He also faces two counts of production of child pornography, both of which carry penalties of not less than 15 years, and up to 30 years imprisonment. He also faces one count of transportation of child pornography, which carries for the first offense a penalty of not less than 5 years, and up to 20 years in prison.
The FBI, Longmont Police Department and Aurora Police Department investigated this matter. The 20th Judicial District assisted with this matter. The defendant is being prosecuted by Assistant U.S. Attorney Valeria Spencer.
The defendant is presumed innocent unless and until proven guilty in a court of law
Arizona Man Convicted of Conspiracy to Defraud the Government with Respect to Claims of FraudRead the Press Release
DENVER – On November 30, 2017, Tramell Thomas, of Phoenix, Arizona, was found guilty by a jury in U.S. District Court in Denver on all counts charged stemming from a financial aid fraud scheme, announced United States Attorney Bob Troyer. Thomas was convicted of one count of conspiracy to defraud the government through 181 false Free Applications for Federal Student Aid (FAFSAs). Thomas was also convicted of six counts of aiding and abetting mail fraud resulting from the mailing of debit cards that contained federal student aid to addresses under the conspirators’ control.
In sum, the conspirators visited Department of Corrections websites for the states of Colorado, Arizona, Florida, Illinois, and Ohio, and they retrieved the names, dates of birth, and release dates of state inmates. Armed with this information, one of the conspirators obtained these inmates’ social security numbers through her employment at a bank. Once the conspirators had this information, they filled out FAFSAs requesting federal student aid to attend community colleges in Colorado and Arizona. The conspirators chose inmates serving long prison sentences, believing that these inmates were less likely to notice that their identities had been stolen. All told, the conspirators filed claims seeking approximately $1.3 million dollars. The Department of Education paid out approximately $582,000, with $419,000 of these funds forwarded to the conspirators in the form of debit cards. These funds were to be used for authorized living expenses while attending college. The remainder of the money was paid to the community colleges. Thomas’s conspirators, Heather Carr, Mercedes Diaz, and Marcelle Green, have all pled guilty and await sentencing.
“The expert investigative team and sophisticated prosecutors did a remarkable job,” said U.S. Attorney Bob Troyer. “These thieves received a well-deserved education in federal justice.”
“Federal student aid exists so that individuals can pursue and make their dream of a higher education a reality, it’s not a personal slush fund. As the law enforcement arm of the U.S. Department of Education, ensuring that those who steal student aid or game the system for their own selfish purposes are stopped and held accountable for their criminal actions is a big part of our mission,” said Adam Shanedling, Special Agent in Charge of the U.S. Department of Education Office of Inspector General's Western Regional Office. "That’s why I’m proud of the work of OIG special agents and our law enforcement colleagues for holding Mr. Thomas accountable for his criminal actions.”
“The U.S. Postal Inspection Service is committed to ensuring that these types of predatory schemes are investigated aggressively,” said Acting U.S. Postal Inspector in Charge Nicole Davis of the Denver Division. “It is imperative that we continue to work with our partners to protect those vulnerable individuals in our society who unknowingly fall prey to these schemes. We cannot allow fraudsters to utilize the U.S. mail to further their schemes.”
At his April 12, 2018 sentencing hearing, Thomas faces up to 10 years in federal prison on his conspiracy conviction and up to 20 years in federal prison on each of his six mail fraud convictions. He also faces a fine of up to $250,000 on each count.
This case was investigated by the United States Department of Education, Office of Inspector General and the United States Postal Inspection Service.
This case was prosecuted by Assistant U.S. Attorneys Martha A. Paluch and Bryan D. Fields.
Bob Troyer Appointed by Attorney General Jeff Sessions to Serve as Colorado U.S. AttorneyRead the Press Release
DENVER – Bob Troyer, who has served as Acting U.S. Attorney since August 11, 2016, was appointed this week by U.S. Attorney General Jeff Sessions to serve as the U.S. Attorney for the District of Colorado. Troyer’s appointment will be in effect until the U.S. Senate confirms a Presidential nominee.
As the top federal law enforcement officer in Colorado, Troyer will continue to focus on reducing violent crime in Colorado. The Colorado U.S. Attorney’s Office is a national leader in this area, both through its work with Crime Gun Intelligence Centers and its creative approach to reducing violent crime in the most needy geographic regions within Colorado.
Because of the Office’s leadership on this front, Troyer also has been appointed to the National Crime Gun Intelligence Governing Board. He is the first federal prosecutor in the country to serve on this prestigious board. In addition, Troyer will continue the Office’s work to rebuild trust between communities and law enforcement, including by prosecuting hate crimes and improving reporting of those crimes. Finally, the U.S. Attorney’s Office will continue its aggressive attack on the state-wide opioid crisis -- with both criminal and civil enforcement as well as crime prevention and inmate re-entry work.
Troyer was born in Colorado and grew up in Maryland. He graduated from Pomona College. For several years after college he taught high school English in Washington, D.C. and worked during the summers as a commercial fisherman in Alaska. He then attended Boston College Law School. After law school he practiced at Ropes & Gray in Boston and then moved to Denver to practice at Brownstein Hyatt Farber & Strickland. In 1999 he left to join the criminal division of the Colorado U.S. Attorney’s Office. He then headed the Hogan & Hartson Denver Office’s litigation department before returning to the U.S. Attorney’s Office as First Assistant U.S. Attorney seven years ago.
Individual Taken into Custody After Committing Violent Crimes in Colorado SpringsRead the Press Release
DENVER – Miguel Lerma Cruz, age 37, aka Danny Ortega, has been formally charged by grand jury indictment with drug distribution and firearm related crimes following a violent carjacking and police chase, Acting U.S. Attorney Bob Troyer and ATF Denver Division Special Agent in Charge Debora Livingston announced. Cruz, who is in federal custody, has made his initial appearance, where he was read his rights as well as advised of the charges pending against him. A U.S. Magistrate Judge today ordered Cruz to be held without bond pending a resolution of his case.
Cruz was indicted by a federal grand jury in Denver on October 26, 2017. He appeared in U.S. District Court in Denver on November 2, 2017 and today, November 7, 2017.
According to court documents, on May 29, 2017, Colorado Springs Police Officers were dispatched following a report by a female of a disturbance at the El Ranchito Meat Market. The female stated that a male had threatened her and her husband inside the market. She was able to give authorities a description of the subject’s vehicle. When officers arrived they observed the suspect vehicle, a Dodge pickup truck, in the parking lot. When they went to contact the vehicle, the driver, later identified as Cruz, rammed into a marked police patrol vehicle, driving past other uniformed police officers and marked police vehicles while fleeing the scene. A high speed pursuit ensued.
During the pursuit, which occurred over a considerable distance through heavily populated areas of the city of Colorado Springs, Cruz refused to stop. The chase stopped when Cruz went through a red light hitting two vehicles, including a vehicle occupied by two elderly individuals, both of whom were injured and transported to the hospital. The Dodge pickup truck was disabled due to the crash. Cruz then exited the van with an assault type rifle and approached a woman in an Acura sedan. He ordered her out of the car at gun point, then fleeing the scene. Officers continued pursuit, but eventually could not locate Cruz.
Investigators learned Cruz had two vehicles in the El Ranchito Meat Market parking lot -- a silver Saturn sedan and the Dodge pickup truck. Both were searched by agents and officers. The stolen Acura was later located and searched after it was tied to Cruz by a palm print he left on the vehicle. A search of the Dodge yielded a 9 mm handgun stolen from a residence in Brattleboro, Vermont in 2013, approximately 289 grams of heroin, approximately 662 grams of methamphetamine, and up to $30,000 in cash. Inside the Saturn authorities found a Ruger mini-14 rifle, ammunition for a AK-47 as well as ammunition for a 12 gauge shotgun. They also found spent .40 shell casings that NIBIN hit to a shooting the month before.
Later Cruz was seen driving a white Camaro in Colorado Springs. He was surveilled at the 6800 block of Corporate Drive in Colorado Springs. The Colorado Springs Police Department Tactical Enforcement Unit went to the area and on June 1, 2017, took Cruz into custody. A search of the Camaro uncovered approximately $4,000 in cash and a AK-47 rifle. Cruz had prior convictions for Attempt to Distribute Heroin, Distribution of a Schedule 1 Controlled Substance, and assault, as well as three cases currently pending in state court for firearm and assault charges. Finally, the defendant had been convicted of Trafficking a Controlled Substance in Clark County, Nevada.
Cruz faces two counts of possession with intent to distribute a controlled substance, one count of use, carry and possess a firearm during a drug trafficking crime, one count of use, carry, possess and brandish a firearm during a drug trafficking crime carjacking, and possession of a firearm by a prohibited person. If convicted of all counts, the defendant faces a mandatory minimum of 32 years in federal prison.
The ATF and the Colorado Springs Police Department investigated this matter. The defendant is being prosecuted by Assistant U.S. Attorney Colleen Covell.
The defendant is presumed innocent unless and until proven guilty in a court of law.
Northern Colorado Bank Robber Indicted and Then ArrestedRead the Press Release
DENVER – A bank robber allegedly responsible for two bank robberies in Northern Colorado has been indicted by a federal grand jury in Denver. James Wilbert Gray, age 25, of Mount Juliet, Tennessee, was arrested in Texas after first being charged with bank robbery in Kentucky. He was later indicted for two bank robberies in Colorado.
Gray faces two counts of bank robbery, Acting U.S. Attorney Bob Troyer and Denver Division of the FBI Special Agent in Charge Calvin Shivers announced. Gray has made his initial appearance in U.S. District Court in Texas, where he was advised of the charges pending against him. He is currently in custody in Kentucky where he is also facing bank robbery charges. He is being held without bond, and will be transferred to Colorado after the matter in Kentucky is resolved.
According to the Denver federal grand jury indictment, which was returned on September 26, 2017, Gray on July 24, 2017 robbed the TCB Bank, located in Keenesburg, Colorado. Also, on July 27, 2017, he robbed the Bank of the West in Lyons, Colorado. Both bank robberies carry a penalty of not more than 20 years in federal prison, up to a $250,000 fine, and restitution.
The investigation was handled by the FBI with substantial assistance from the Lochbuie Police Department and the Boulder County Sheriff's Office.
The defendant is being prosecuted by Assistant U.S. Attorney Kurt Bohn.
The charges are allegations, and the defendant is presumed innocent unless and until proven guilty.
Pueblo Police Department and Southern Colorado Safe Streets Task Force Announce the Arrest of Five Individuals and the Seizure of Historic Amounts of Heroin in Southern ColoradoRead the Press Release
DENVER – The Pueblo Police Department, the Colorado U.S. Attorney’s Office, and the FBI Denver Division, all parts of the Southern Colorado Safe Streets Task Force, announced the seizure of historic amounts of heroin from two residences and a business located in Pueblo, Colorado. Following the seizure, the U.S. Attorney’s Office obtained grand jury indictments charging five individuals with distribution of drug charges. Four of the five defendants were also charged with federal firearms violations. All five defendants are in federal custody with charges pending and have made initial appearances.
The criminal investigation began in Pueblo in December 2016, when the Southern Colorado Safe Streets Task Force began investigating criminal activity associated with several street gangs operating in the Pueblo area. As a part of that investigation federal agents and state and local law enforcement, including the Pueblo Police Department, executed search warrants on three locations. Two were residences in Pueblo, with the third a Pueblo business called “Get Your Fix Automotive”. Seized from the three locations were approximately:
- 28 kilograms of heroin
- 2.5 pounds of methamphetamine
- 50 grams of cocaine
- 35 firearms, including several stolen weapons, and a machine gun
- $540,000 in cash
Those indicted include:
- Daniel Vasquez, of Pueblo, charged with Possession with Intent to Distribute heroin and Felon in Possession of a firearm.
- Roger Bujanda, of Pueblo, charged with Possession with Intent to Distribute heroin and Felon in Possession of a firearm.
- Jesus Mercado Valdez, of Pueblo, charged with Possession with Intent to Distribute heroin and Felon in Possession of a firearm.
- Gage Rael, of Pueblo, charged with Possession with Intent to Distribute heroin and Felon in Possession of a firearm.
- Leonard Aragon, of Pueblo, charged with two counts of Possession with Intent to Distribute heroin.
The heroin alone is worth approximately $8,000,000. If cut for sale, it could provide up to 40,000 user doses. One house alone yielded over $300,000 in cash and a substantial amount of the heroin seized, in addition to the many assault weapons hidden throughout. The heroin was distributed on the streets of Pueblo, as opposed to being stored for distribution in other cities.
Sentences regarding heroin distribution depend on the weight of the drugs seized or trafficked. Possession with Intent to Distribute a kilogram or more of heroin carries a penalty of not less than 10 years, and not more than life in federal prison, as well as a fine of up to $250,000. Possession with intent to distribute a lower amount of heroin carries a penalty of not less than 5 years, and up to 40 years in prison. Also, being a felon in possession of a firearm carries a penalty of not more than 10 years in federal prison, and up to a $250,000 fine.
“This series of cases reflects forensic partnership policing at its best,” said Acting U.S. Attorney Bob Troyer. “Dangerous individuals and their poison and weaponry are now gone. With minimal disruption, Pueblo is a safer place.”
“Solid relationships between law enforcement and prosecutorial offices at all levels, Federal, State and Local, creates an effective tool for dealing with violent crime,” said Pueblo Police Chief Troy Davenport. “FBI Safe Streets is a great example of those relationships and the kind of effort that our citizens deserve. Our community is much safer today because of this relationship and cooperative effort. The Pueblo Police Department is a proud participant.”
"The outcome of this case is indicative of the success that can be attained when agencies combine resources to dismantle drug trafficking organizations," said FBI Special Agent in Charge Calvin Shivers. "Crimes of this nature destroy our neighborhoods and the futures of our children. We are confident this case will send a message to those contemplating trafficking heroin and other dangerous illegal narcotics they will be aggressively investigated and prosecuted to the full extent of the law. The FBI will continue to work with our law enforcement partners and prosecutors to attack the heroin epidemic and remove violent criminals from our neighborhoods."
These prosecutions were coordinated with Jeff Chostner and the 10th Judicial District Attorney’s Office. This investigation was handled by the Pueblo Police Department, as part of the FBI Southern Colorado Safe Streets Task Force, which includes the Pueblo County Sheriff’s Office, the Canon City Police Department, the Fountain Police Department, the Colorado Springs Police Department, the El Paso County Sheriff’s Office, the state Department of Corrections Office of Inspector General, the state Department of Corrections Office of Parole, the Department of Homeland Security’s U.S. Immigration and Customs Enforcement, the Colorado Bureau of Investigation (CBI), the Department of Homeland Security (HSI), the IRS CI, and Air Force Office of Special Investigations.
The defendants are being prosecuted by Assistant U.S. Attorney Beth Gibson.
The charges are allegations, and the defendants are presumed innocent unless and until proven guilty
United States Recovers $200,000 Resolving Allegations that Social Security Disability Income Recipient Violated the False Claims ActRead the Press Release
DENVER – The United States recovered $200,000 as a settlement of allegations that Stephen G. Ackerman violated the federal False Claims Act by improperly accepting Social Security Disability Income payments and misleading the Social Security Administration (“SSA”) about his work activity, acting U.S. Attorney Bob Troyer announced.
The Settlement Agreement resolves contentions by the United States that Mr. Ackerman failed to accurately report his work activity to SSA between January 2011 and January 2016. The United States contends that Mr. Ackerman engaged in substantial gainful activity that made him ineligible to receive his monthly disability income payments through his work on behalf of Organic Alternatives, a marijuana retail business Mr. Ackerman owns and operates. Because Mr. Ackerman was not truthful to SSA about his work activity, the United States contends that he is liable under the False Claims Act, which allows for civil penalties and treble damages.
“Lying to the federal government does not pay,” said acting U.S. Attorney Bob Troyer. “We are committed to recovering government benefits obtained by fraud.”
“The SSA Office of the Inspector General is committed to protecting Social Security’s disability programs from fraud, waste, and abuse,” said Wilbert Craig, Special Agent-in-Charge of the OIG’s Denver Field Division. “This settlement and monetary recovery demonstrates that we will investigate allegations of false statements related to receiving Social Security disability benefits, to preserve benefits for individuals who truly need and depend on them. I thank the U.S. Attorney’s Office for pursuing this case.”
“Program integrity is one of the Social Security Administration’s highest priorities. We vigorously fight fraud and appreciate the U.S. Attorney’s commitment to recovering the public’s money,” said Asheesh Agarwal, General Counsel, Social Security Administration.
The Social Security Administration Office of Inspector General and Social Security Administration Office of General Counsel were key partners in investigating and resolving this matter. The United States Attorney’s Office in Denver, Colorado works closely with these offices in the pursuit of recouping fraudulently obtained Social Security benefits.
The United States was represented in this matter by Assistant United States Attorney Andrea Wang of United States Attorney’s Office in Denver, Colorado.
Three Defendants Sentenced for Unrelated Child Pornography CrimesRead the Press Release
DENVER – Three defendants were sentenced this week for unrelated child pornography crimes, Acting U.S. Attorney Bob Troyer announced. The three cases were investigated by the FBI and the National Center for Missing and Exploited Children (NCMEC).
In the U.S. v. Paul Lee, the defendant, age 54, of Parker, Colorado, was sentenced to serve 10 years in federal prison after pleading guilty to Access With Intent to View child pornography. This is the first time in Colorado that this statute was used. Lee’s case was heard by U.S. District Court Judge Christine M. Arguello. The defendant purchased a Chromebook in the summer of 2016 so he could access child pornography. During this time, Lee was on probation in Adams County for Attempted Sexual Exploitation of a Child. According to his plea agreement, he searched the internet for child pornography involving boys 12 to 15, downloading videos on average of three times per week.
In the U.S. v. Sharee Equdzi-Acquah, the defendant, age 48, of Westminster, Colorado, was sentenced to serve 10 years in federal prison by U.S. District Court Judge Philip A. Brimmer after pleading guilty to possession of child pornography. The defendant traded child pornography with multiple other like-minded people using an application on her cellular telephones. The defendant shared dozens of images of child pornography online. She also engaged in graphic chats with others about having sex with children. The defendant chatted with a man about having a child they could molest together. The defendant used cloud storage, foreign emails, and foreign cloud storage – in both New Zealand and in Russia.
In the U.S. v. Damian Smith, the defendant, age 44, of Denver, Colorado, was sentenced to serve 97 months in federal prison by U.S. District Court Judge Christine M. Arguello after pleading guilty to possession of child pornography. An FBI agent working in an undercover capacity online was able to successfully connect to the defendant’s computer and download hundreds of child pornography files that he made available for sharing. Smith had been looking at and downloading child pornography for over 10 years. He logged in daily, indiscriminately downloading all ages of child pornography, from toddler porn to granny porn. His laptop had over 160,000 images and 1,032 videos. A hard drive also belonging to Smith had over 15,000 images of child pornography.
“The U.S. Attorney’s Office continues to work with our partners, including the FBI, to protect our children from online predators,” said Acting U.S. Attorney Bob Troyer. “The three defendants sentenced this week show our continued commitment to this important mission.”
“This week’s sentences handed down represent the FBI’s dedication to pursuing those intent on harming children,” said FBI Denver Special Agent in Charge Calvin Shivers. “The identification and apprehension of child predators roaming our communities is a priority for the FBI. These cases should serve as a deterrent to those who utilize the Internet to promote the victimization of children.”
The defendants in these cases were prosecuted by Assistant U.S. Attorney Valeria Spencer, assigned to the Cybercrime and National Security Section of Criminal Division of the U.S. Attorney’s Office, District of Colorado. These cases were brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation. 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.
Felon Who Attempted to Rob Home Depot in Golden Sentenced to Federal PrisonRead the Press Release
DENVER – Aaron Carson Cheek, age 27, of Golden, was sentenced yesterday to serve 84 months in federal prison for brandishing a firearm during a crime of violence by U.S. District Court Judge Christine M. Arguello, Acting U.S. Attorney Bob Troyer and ATF Denver Field Division Special Agent in Charge Debora Livingston announced. Cheek was in custody prior to the sentencing hearing, and was remanded following the sentencing hearing.
Cheek was first charged by Criminal Complaint on June 6, 2016. He was indicted by a federal grand jury in Denver on June 23, 2016. He pled guilty to the federal gun crime on July 27, 2017. He was sentenced today, Thursday, October 26, 2017.
According to the stipulated facts contained in the defendant’s plea agreement, on May 31, 2016, Cheek entered a Home Depot store located on West Colfax in Golden, Colorado. He caught the attention of Home Depot employees because of the length of time he was in the store, as well as his unusual behavior. When an employee tried to make contact with Cheek he brandished a 9mm handgun and stated, “Don’t say anything and we won’t have a problem.” He exited the store only to be again confronted by other Home Depot employees. After a brief physical altercation Cheek again pulled his weapon, stating “Do you want to make this real?” He then fled the scene in a truck, but not before the Home Depot employees were able to get his license plate number.
Golden Police officers responded to the area to look for Cheek’s vehicle. The Golden Police officers had earlier in the day received a call from Cheek about an alleged assault. While they looked near that address, the located his vehicle. An officer blocked the truck in a parking space, ordering the defendant to follow his instructions. Cheek did not follow the officer’s instruction, which ultimately led to the officer tackling Cheek, taking him into custody. An inventory of the vehicle after the arrest uncovered a 9mm semi-automatic pistol, two boxes of ammunition, and a suspected destructive device.
On November 4, 2010, the defendant was convicted and sentenced to 180 days imprisonment for possession of a controlled substance, a felony, in the 362nd District Court in Denton County, Texas. This conviction meant that Cheek was not legally allowed to possess a firearm or ammunition.
"We and the ATF focus our enforcement especially on people like this defendant who are prohibited from having guns yet using them to endanger others. Store security, the Golden Police Department, ATF, and our prosecutor did a fantastic job getting Mr. Cheek where he belongs."
“Offenders like Cheek are why ATF exists,” said ATF Special Agent in Charge Debora Livingston. “People who use violence to further their criminal agenda are the most dangerous criminals out there. Working with our local partners, ATF and the U.S. Attorney’s Office can put these criminals away for a long time.”
This case was investigated by the ATF and the Golden Police Department. The defendant was prosecuted by Assistant U.S. Attorney Jason St. Julien.
ATF, U.S. Attorney's Office teams up with local law enforcement to take down crews breaking into gun storesRead the Press Release
DENVER – Two Denver men were arrested late September for the August 10, 2017 theft of firearms from the Cabela’s in Lone Tree, Colorado, Acting U.S. Attorney Bob Troyer and ATF Denver Division Special Agent in Charge Debora Livingston announced. A third man also charged with the Cabela’s theft is currently in state custody on unrelated charges. These arrests as well as many others are part of local law enforcement’s efforts, working with the ATF and the Colorado U.S. Attorney’s Office, to address multiple burglaries of gun stores throughout Colorado. To date, 10 individuals have been charged federally for theft of firearms from federal firearms licensees. Those cases are pending.
“These are not property crimes. These are life and death crimes. Stolen guns go straight into the hands of criminals, not hunters and target shooters,” said Acting U.S. Attorney Bob Troyer. “The people who bring this violence into our communities will be introduced to federal justice, up close and personal, for a long time.”
“Investigating these thefts is ATF’s top priority in Colorado,” said ATF Special Agent in Charge Debora Livingston. “We will be relentless. If someone is involved, we will find them. A potential ten-year prison sentence is a significant punishment for two minutes of crime.”
In 2017 alone, over 400 firearms have been stolen. Arrests for those thefts also have been made in connection with thefts from South Platte Tactical gun store in Adams County, Top Dollar Pawn Shop in El Paso County, Best Way Sales in Baca County, Shooter Ready in Jefferson County, Dragon Arms in El Paso County, and Parker Arms in Jefferson County. Those charged by indictment with thefts from those firearm licensees include:
Cabela’s
On August 10, 2017, Darnell Hudgens, age 2,3 of Denver, Colorado, Giavanni Edward Miles, age 21, residence unknown, and Kendall Crockett, age 23, of Denver, Colorado, with others, conspired to steal firearms from Cabela’s in Douglas County, City of Lone Tree. On August 21, 2017, those same defendants stole firearms from the Cabela’s in Thornton, Colorado. The defendants are charged by indictment with possessing stolen firearms, conspiracy to steal firearms from a federal firearm licensee, and disposal of the weapons.
South Platte Tactical
On January 8, 2017, Gaven Alfonso Orozco, age 20, of Adams County, Colorado, and Jordan Martinez, age 19, of Denver, Colorado, conspired to and stole firearms from the South Platte Tactical gun store in Adams County. The defendants broke into the store and removed the firearms. Those involved in the theft stole a vehicle, drove to the gun store location, stole the firearms, and fled. The indictment states that on January 13, 2017, Orozco possessed, concealed, stored and disposed of stolen firearms. The firearms were then distributed amongst members of the conspiracy. The defendants face charges including possession of stolen firearms, conspiracy to steal firearms, theft of firearms from a federal firearms licensee.
Top Dollar Pawn
On July 10, 2017, Adam Paul Mowery, age 41, of Colorado Springs, Colorado, stole firearms from Top Dollar Pawn Shop in El Paso County. He then possessed, concealed, stored and disposed of the stolen firearms. On July 25, 2017, Cole Truitt Anderson, age 26, of Florissant, Colorado, possessed, concealed, stored and disposed of stolen firearms. Anderson also possessed a stolen sawed-off shotgun. Both defendants face charges of possession of stolen firearms, possession of firearms by a prohibited person, possession of unregistered firearms.
Dragon Arms
On August 27, 2017, Jennifer Scoggin, Camron Specht, Ryan Sharpe, and Gian Carlos Vance, allegedly stole firearms from Dragon Arms in El Paso County, Colorado, where defendants stole multiple handguns, shotguns, and rifles. The defendants face theft of firearms from a federal firearms licensee.
Best Way Sales
On August 10, 2017, Calvin Terrell Stafford, age 23, of Warrensburg, Missouri, and Napoleon Williams, age 23, of St. Louis, Missouri, conspired to steal firearms from Best Way Sales, located in Baca County, in the city of Springfield, Colorado. They traveled from Missouri to Colorado, identified and cased Best Way Sales, and on August 11, 2017, broke into the store and stole firearms. They then drove the stolen firearms back to Missouri. The defendants face charges of conspiracy, theft of firearms from an federal firearms licensee, and possession of stolen firearms.
Shooter Ready
On November 10, 2016, Viet Trinh, age 18 of Thornton, Colorado, possessed, concealed, stored and disposed of stolen firearms. Trinh conspired with others to steal firearms from Shooter Ready gun store in Denver. After the weapons were stolen, they were distributed to members of the conspiracy. Trinh was the get-away-driver for the Shooter Ready burglary. On December 17, 2016, Trinh conspired with others to steal firearms from Parker Arms in Jefferson County, City of Wheat Ridge. He again was the get-away-driver. He faces possession of stolen firearms, conspiracy, and theft of firearms from a federal firearms licensee.
Aurora Police Department, Brighton Police Department, Castle Rock Police Department, Colorado Bureau of Investigation, Colorado Metro Auto Theft Task Force, Denver Police Department, Douglas County Sheriff’s Office, Edgewater Police Department, Jefferson County Sheriff’s Office, Lakewood Police Department, Littleton Police Department, Lone Tree Police Department, Parker Police Department, Thornton Police Department, Westminster Police Department, Wheat Ridge Police Department, Colorado Springs Police Department, El Paso County Sheriff’s Office, Springfield Police Department, and Baca County Sheriff’s Office have all assisted with gun store investigations.
The defendants are being prosecuted either by Assistant U.S. Attorney Colleen Covell and U.S. Attorney Timothy Edmonds.
The penalties for conviction for these crimes range from not more than 5 years in federal prison to not more than 10 years in federal prison per count. Defendants also face not more than a $250,000 fine.
In addition to those listed above, a number of individuals have been arrested and are being prosecuted by state authorities.
The charges contained in the indictments mentioned above are allegations, and the defendants are presumed innocent unless and until proven guilty.
Aurora Man Indicted for Fraud and Money LaunderingRead the Press Release
DENVER -- Justin Manning, age 40, of Aurora, Colorado, was indicted by a federal grand jury on September 26, 2017 on charges of wire fraud, money laundering and filing false tax returns, Acting United States Attorney Bob Troyer and IRS Criminal Investigation Special Agent in Charge Steven Osborne announced. Today, October 2, 2017, Manning is scheduled to appear before a U.S. Magistrate Judge where he will be advised of his rights and the charges pending against him.
According to information contained in the indictment, between 2012 and 2015, Manning was employed as an asset protection manager and assistant store manager at a local Walmart. In those job positions, Manning had access to blank Money Network Checks used in Walmart’s Money Network System.
Beginning in approximately October 2013 and continuing through January 2015, Manning fraudulently filled out money network checks, and caused others to fill out the checks, in the name of third parties in order to deceive other Walmart employees into believing they were legitimate checks. Manning used his management positions to access the store’s register bags. He took cash from the store’s register bags and replaced it with fraudulent Money Network Checks totaling the same amount as the cash taken so that the register bags maintained the correct total balance and other Walmart employees would not realize cash had been taken from the bags. Manning has been charged with thirteen counts of wire fraud related to the processing of the fraudulent Money Network Checks.
Manning also knowingly engaged in financial transactions utilizing the proceeds of the wire fraud. Specifically, Manning is charged with three counts of money laundering for using cash proceeds derived from the fraud to purchase a diamond wedding ring set and a Toyota 4Runner and for transferring funds between accounts at a financial institution.
Additionally, in March 2014 and 2015, Manning filed U.S. Individual Income Tax Returns for the 2013 and 2014 tax years, respectively. When he filed these tax returns, Manning knew that he had intentionally not reported as income the cash he took as part of his fraudulent scheme.
Manning is charged with thirteen counts of wire fraud, three counts of money laundering and two counts of filing false tax returns. The indictment also includes a forfeiture count under which the government seeks to divest Manning of the proceeds obtained through the fraud. Wire fraud carries a penalty of not more than 20 years in federal prison, and a fine of up to $250,000 per count. Money laundering carries a penalty of not more than 10 years in federal prison, and a fine of up to $250,000 per count. False tax statement carries a penalty of not more than 3 years in prison and a fine of up to $100,000.
This case is being investigated by Internal Revenue Service – Criminal Investigation (IRS CI). This case is being prosecuted by Assistant U.S. Attorney Pegeen Rhyne.
The charges contained in the indictment are allegations, and the defendant is presumed innocent until proven guilty.
Longmont Man Sentenced for Conspiracy to Defraud the United StatesRead the Press Release
DENVER – Jerald S. Williams, age 73, of Longmont, Colorado was sentenced by U.S. District Court Judge Wiley Y. Daniel to serve 60 months in federal prison for conspiracy to defraud the United States, the United States Attorney’s Office and IRS-Criminal Investigation announced. Following his sentence, Williams was ordered to serve 3 years of supervised release. He was also ordered by Judge Daniel to pay restitution in the amount of $427,581 to the IRS. Williams was indicted by a federal grand jury on August 10, 2016 and pled guilty on June 20, 2017. He was sentenced on September 19, 2017.
According to the indictment and plea agreement, Williams, with others known and unknown to the grand jury, generated substantial income from the interstate transportation and distribution of controlled substances, specifically marijuana and cocaine. Williams and co-conspirators E.G. worked to conceal this income by structuring cash deposits into the Colorado Fire Service business bank account, which Williams controlled. Between January 2010 and July 2014, Williams and E.G. conducted structured deposits into various bank accounts totaling approximately $858,495 to avoid the banks filing currency transaction reports.
Williams and E.G. used the deposited funds to purchase assets with cashier’s checks, including a house in Tucson, Arizona, along with a pool and other improvements for the house, and a recreational vehicle and trailer. Williams also paid for personal expenditures such as vacations, jewelry and travel with cash. Many of these transactions were conducted through Williams’ business, Colorado Fire Services, in order to conceal the receipt and expenditure of income. Williams filed federal income tax returns for the 2010 through 2013 tax years, knowing these tax returns did not reflect all of the income Williams earned in each tax year.
Additionally, when served with a grand jury subpoena for records related to Colorado Fire Service in 2014, Williams obstructed the grand jury by concealing and failing to produce records in his possession regarding Colorado Fire Services.
“All income is taxable whether the source is legal or illegal,” said Steven Osborne, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office. “This sentence is a direct result of the combined efforts of the U.S. Attorney’s Office and IRS – Criminal Investigation in combating violations of Federal law and serves as a deterrent to those who might contemplate similar fraudulent actions."
This case was investigated by the Internal Revenue Service – Criminal Investigation and the Longmont Police Department. The case was prosecuted by Assistant U.S. Attorney Tim R. Neff.
Two Men Arrested for Gun Store Burglary in Springfield, ColoradoRead the Press Release
DENVER – Two men, Calvin Terrell Stafford, age 23, and Napoleon Williams, age 23, were ordered held without bond today by U.S. Magistrate Judge Kathleen M. Tafoya for firearm related crimes, the United States Attorney’s Office, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Springfield Police Department (located in Baca County) and the Baca County Sheriff’s Office announced. Both defendants were indicted by a federal grand jury in Denver on September 13, 2017. They were then arrested, and made their initial appearances on September 19, 2017, where they were advised of their rights and the charges pending against them. Today, September 22, 2017, both defendants appeared in magistrate court again where they were ordered held without bond pending a resolution of their cases.
According to the Indictment, from August 10, 2017 through August 12, 2017, the defendants Calvin Terrell Stafford and Napoleon Williams conspired to commit theft of firearms from a Federal Firearms Licensee. On August 10, 2017, the defendants traveled from Missouri to Springfield, Colorado, with the intent to buy marijuana that they could then sell for a profit in Missouri. When the marijuana deal fell through, they decided to steal firearms from a local gun shop. They stole 19 guns, including 5 rifles, from Best Way Sales in Springfield. After the burglary, the defendants drove the stolen firearms out of Colorado to St. Louis, Missouri, where they sold most of the stolen guns.
Both defendants face one count of Conspiracy to Steal Firearms from a Federal Firearms Licensee. If convicted of that count, they each face not more than 5 years in federal prison, and up to a $250,000 fine. The defendants face a second count, Theft of Firearms from a Federal Firearms Licensee. If convicted of that count, they each face not more than 10 years in federal prison, and up to a $250,000 fine. Finally, defendants Stafford and Williams face a third count, Possession of Stolen Firearms. If convicted of that final count, both defendants face not more than 10 years in federal prison, and up to a $250,000 fine.
This case was investigated jointly by the Springfield Police Department, Baca County Sheriff’s Office and the ATF. ATF offices involved in the investigation include the Colorado Springs Field Office and the Kansas City and St. Louis Field Offices in Missouri. The defendants are being prosecuted by Assistant U.S. Attorney Colleen Covell.
The charges contained in the Indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
Denver Area Meth and Cocaine Dealer from Mexico Found Guilty Following Jury TrialRead the Press Release
DENVER – Jorge Loya-Ramirez, age 49 of Denver, and a citizen of Mexico was convicted late yesterday of nine counts of various drug charges following a jury trial before U.S. District Court Judge Robert E. Blackburn, the U.S. Attorney’s Office, FBI Denver Division and the Metro Gang Task Force announced. The trial lasted seven days, and the jury deliberated for three hours before reaching their guilty verdicts. Loya-Ramirez is the last defendant of multiple defendants charged under the case name Operation Black Rhino. All other defendants had previously pled guilty and have or await sentencing. A sentencing date has not yet been set.
Loya-Ramirez and 27 others were indicted by a federal grand jury on June 23, 2015. Of the 27 other defendants, most have pled guilty, some have been sentenced, and others had their cases dismissed. The nine counts of conviction include: one count of Conspiracy to distribute cocaine and methamphetamine; five counts of Possession and possession with intent to distribute methamphetamine; one count of Possession and possession with intent to distribute cocaine; and three counts of Use of a telephone during the commission of a drug offense.
According to the facts presented at trial, the defendant claimed to be a man who sold tacos from a food truck. However, the prosecution proved beyond a reasonable doubt that Loya-Ramirez was the “El Jefe” or “The Boss” of a large-scale drug trafficking organization. He was responsible for importing nearly 200 pounds of methamphetamine, which was then distributed in the Denver metro area, Ft. Morgan, Greeley and southwest Kansas. Additionally, the defendant dealt with kilogram quantities of cocaine.
Further, the prosecution established that the defendant used violence and intimidation in order to make his drug organization function. His tactics included acts of violence and assaults on workers in Colorado as well as threat against family members of his associates here and in Mexico. While claiming to be a taco salesman, he built two high priced homes in Mexico during the course of the conspiracy.
At sentencing, the defendant faces a mandatory minimum of 10 years and up to life in federal prison for his crimes.
Acting U.S. Attorney Bob Troyer praised the trial team, Assistant United States Attorneys Tim Edmonds and Zachary Phillips for their hard work. He also recognized the FBI and the Metro Gang Task Force for their outstanding work investigating this complex drug trafficking organization.
U.S. Postal Service Employee Sentenced for Lying About Cancer in Order to Take Sick LeaveRead the Press Release
DENVER – Caroline Zarate Boyle, age 60, of Highlands Ranch, Colorado, was sentenced today by U.S. District Court Judge Raymond P. Moore to serve 5 years’ probation with the first 6 months in home confinement including wearing an electronic monitor. She was also ordered to pay a $10,000 fine and spend 652 hours doing community service to be served at a cancer treatment center, cancer research center or hospice. Finally, she was ordered to pay $20,798.38 in restitution to the U.S. Postal Service, Acting U.S. Attorney Bob Troyer and Executive Special Agent in Charge of the U.S. Postal Service Office of the Inspector General announced.
Boyle was first charged by Criminal Complaint on March 3, 2017. She was indicted by a federal grand jury in Denver on March 16, 2017. She pled guilty to the indictment as charged without a plea agreement on April 28, 2017. She was sentenced by Judge Moore today, August 22, 2017.
According to the Factual Basis for Change of Plea stipulated by both parties, Boyle was an employee of the U.S. Postal Service. In the summer of 2015, after she was not selected for a promotion, Boyle decided to take some time off work by pretending to have cancer. She communicated to her supervisor that she was recently diagnosed with non-Hodgkins lymphoma. She then began taking substantial amounts of sick leave, despite the fact that Boyle did not have non-Hodgkins lymphoma, nor did she have any other sort of cancer or serious illness that necessitated the sick leave she was taking.
Boyle continued the ruse until she was caught following an interviewed by an agent of the Postal Service’s Office of the Inspector General on February 28, 2017. In the approximately twenty months that Boyle’s fraud lasted, she used her non-existent cancer treatment to support both unwarranted sick leave and unwarranted accommodations allowing her to work part-time or work from home. Boyle was to continue this fraud until her scheduled retirement in April 2017. Despite claiming that cancer treatment had made her too sick to work or come to the office, she was planning a post-retirement cruise to Hawaii.
During the course of the investigation it was determined that Boyle e-mailed her supervisor notes from two different doctors indicating that she was receiving cancer treatment. However, the notes were created by Boyle as she was not a patient of either doctor.
Additional evidence at sentencing showed that, prior to faking cancer herself, Boyle had falsely accused a subordinate of faking cancer and denied her certain accommodations which that employee had requested due to her sickness. In contrast, Boyle was often granted paid administrative leave (not charged to her sick leave balance) and allowed to work from home up to five days a week based on her fraudulent illness.
Executive Special Agent in Charge Scott Pierce said, “The American public trusts that U.S. Postal Service employees will obey the law. When an employee of the Postal Service violates that trust, the U.S. Postal Service Office of Inspector General (USPS OIG) thoroughly investigates those matters. This type of behavior within the Postal Service is not tolerated and the overwhelming majority of Postal Service employees, which serve the public, are honest, hardworking, and trustworthy individuals who would never consider engaging in any type of criminal behavior. The USPS OIG and U.S. Attorney’s Office remain committed to holding accountable anyone responsible for such violations.”
This case was investigated by the U.S. Postal Service Office of the Inspector General. The case was prosecuted by Special Assistant United States Attorney Dan Burrows.
Colorado Woman Brandi Leonard Sentenced to Lengthy Prison Term for Producing Child PornographyRead the Press Release
DENVER – Brandi Leonard, age 20, was sentenced last week by U.S. District Court Judge Philip A. Brimmer to serve 240 months (20 years), followed by 10 years on supervised release for production of child pornography, Acting U.S. Attorney Bob Troyer, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Denver Division Acting Special Agent in Charge John Eisert, and Internet Crimes Against Children (ICAC) Commander for Colorado Lieutenant Christina Sheppard of the Colorado Springs Police Department announced. Co-defendant Richard Hennis, age 41, of Colorado Springs, Colorado, was previously sentenced also by Judge Brimmer to serve 324 months (27 years) in federal prison for the production and transportation of child pornography. Following his prison sentence, Hennis was also ordered to serve 10 years of supervised release. Defendant Leonard, who appeared at the hearing in custody, was remanded at its conclusion.
Leonard and co-defendant Hennis were first charged by criminal complaints on March 11, 2016. They were then indicted by a federal grand jury in Denver on April 5, 2016. Leonard pled guilty on April 13, 2017, and was sentenced on August 3, 2017. Hennis pled guilty before Judge Brimmer on November 21, 2016, and was sentenced on April 19, 2017.
According to evidence presented in open court, as well as information contained in public filings, including the stipulated facts contained in Leonard’s plea agreement, Leonard and Hennis engaged in online chats spanning approximately one month. Leonard told Hennis that she had sexually abused an infant. Hennis encouraged Leonard to sexually abuse the infant again, to take pictures or video of the abuse, and to send them to him. Leonard did exactly what Hennis had asked. Law enforcement recovered the pictures that were produced of the infant from Hennis’s phone. Hennis then sent the sexual abuse images of the infant to another individual he was communicating with online.
During their chats, the two defendants discussed in graphic detail kidnapping, raping, killing and dismembering a child between the ages of 4 and 8 years old. Leonard twice during the chat indicated that she didn’t intend to go through with it.
“Understand this: federal law enforcement has highly motivated, expert teams standing ready to present the harshest possible punishment if you victimize an infant,” said Acting U.S. Attorney Bob Troyer.
“Crimes perpetrated against children are especially heinous,” said John Eisert, acting special agent in charge of HSI Denver. “I’m proud of the work HSI and our law enforcement partners did to identify these malicious predators and rescue the victim in this egregious case — as well as prevent potential future crimes against other children.”
“The Colorado ICAC would like to thank all individuals that assisted with this investigation,” said ICAC Commander for Colorado, Lieutenant Christina Sheppard of the Colorado Springs Police Department. “Due to their tireless efforts a conviction was obtained and the defendant was sentenced appropriately.”
This case was investigated by HSI and the Colorado Springs Police Department’s ICAC Unit, with support provided by the Limon Police Department.
The defendants were prosecuted by Assistant U.S. Attorney Alecia L. Riewerts, assigned to the Cybercrime and National Security Section of the Colorado U.S. Attorney’s Criminal Division.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation. 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.
Littleton Couple Convicted of Income Tax Evasion and Bankruptcy Fraud Following Two-Week TrialRead the Press Release
DENVER -- Acting United States Attorney Bob Troyer and IRS Criminal Investigation (IRS-CI) Special Agent in Charge Steven Osborne announced that today a jury found Daryl F. Yurek, age 62, and Wendy M. Yurek, age 62, both of Littleton, Colorado guilty of tax evasion and bankruptcy fraud. The guilty verdicts were the result of a two-week trial before U.S. District Court Judge William J. Martinez. The jury deliberated for approximately 3 hours before reaching their verdict. The Yurek’s, who were indicted by a federal grand jury on October 7, 2015, were allowed to remain free on bond until their sentencing by Judge Martinez. Daryl Yurek’s sentencing is scheduled for December 14, 2017 at 9:30 a.m., and Wendy Yurek’s sentencing is scheduled for December 15, 2017 also at 9:30 a.m.
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 Bankruptcy Court in the District of Colorado a Voluntary Chapter 7 Bankruptcy Petition. During the bankruptcy proceeding, Daryl Yurek testified that their 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 $115,719 in rental payments for a vacation home 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.
This case was investigated by IRS Criminal Investigation. Daryl Yurek faces up to 5 years in prison per count for tax evasion, bankruptcy fraud and false oath in connection with bankruptcy, as well as up to 3 years in prison for making and subscribing to a false document. Wendy Yurek faces up to 5 years in prison per count for tax evasion and bankruptcy fraud.
This case was prosecuted by Assistant United States Attorneys from the U.S. Attorney’s Office’s Economic Crimes Section, including Pegeen D. Rhyne, with Assistant United States Attorney Tonya Andrews assisting on the asset forfeiture.
Parker CPA Sentenced to 12.5 Years in Prison for Wire Fraud and Aiding and Assisting in the Preparation of False Tax ReturnsRead the Press Release
DENVER – Don R. Iley, age 53, of Parker, Colorado, was sentenced yesterday by U.S. District Court Judge Christine M. Arguello to serve 151 months in federal prison for wire fraud and aiding and assisting in the preparation of false tax returns, the United States Attorney’s Office and IRS-Criminal Investigation announced. Judge Arguello also ordered Iley to pay $9.7 million in restitution, and serve 3 years of supervised release following his prison sentence. Iley was originally indicted by a federal grand jury on August 24, 2016, and pled guilty to two counts of that indictment on April 18, 2017.
According to the indictment and plea agreement, from January 2009 up until December 2015, Iley was the owner and operator of Iley and Associates (I&A), an accounting and tax preparation firm providing payroll and payroll tax services to more than 140 businesses in Colorado. The payroll tax services included the preparation of Forms 941, Employer’s Quarterly Federal Tax Returns, and an “ACH Deduction Report” listing the amount of payroll taxes to be withdrawn from the client’s bank account and paid forward to the Internal Revenue Service.
Iley caused the Form 941 tax return to be mailed to the client with a cover letter stating the enclosed tax return is a copy for their records and that Iley pays the taxes for the client. Iley then prepared and submitted payroll tax returns to the IRS on behalf of clients showing no payroll taxes due and owning for a given tax period. Iley knew when he submitted these payroll tax returns that the clients did in fact owe payroll taxes. Then Iley initiated or caused others to initiate an ACH electronic fund transfer from the client’s bank account to a bank account controlled by I&A.
Iley kept the money that was intended for payroll taxes and used it for his own purposes. Iley used some of the money to, among other things, make $900,000 in accelerated principal payments for Iley’s home, pay for the design, construction, landscaping and furnishing of Iley’s residence, and make investments in businesses and retirement accounts.
This case was investigated by the Internal Revenue Service – Criminal Investigation. The case was prosecuted by Assistant United States Attorney J. Chris Larson.
Pueblo Man Sentenced in Murder for Hire PlotRead the Press Release
DENVER – Ricardo Estevan Suazo, age 27, of Pueblo, Colorado, was sentenced today by U.S. District Court Judge Philip A. Brimmer to serve 108 months (9 years) in federal prison, followed by 3 years on supervised release in a murder-for-hire plot. His federal prison time is to be served consecutive to any state prison sentences, the U.S. Attorney’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Pueblo Police Department announced. Suazo’s co-defendant, Reina Ashley Gonzales, age 29, of Pueblo, was sentenced by Judge Brimmer on June 16, 2017, to serve 30 months in federal prison, followed by 3 years on supervised release for similar charges.
Both defendants were charged by Criminal Complaint on September 28, 2016. They were then both indicted by a federal grand jury on October 19, 2016. Gonzales ultimately pled guilty to an Information charging her with conspiracy on March 8, 2017. Her prison sentence followed on June 16, 2017. Suazo pled guilty on April 12, 2017. He was sentenced today, July 14, 2017.
Beginning in August 2016 and continuing through September 2016, Suazo and co-defendant Gonzales conspired to hire different individuals, including an undercover law enforcement agent, to murder an individual who was a witness in a state case against Suazo. During the time of the conspiracy, Suazo was a incarcerated in the Pueblo jail. He frequently spoke by phone in code with Gonzales. On at least two different occasions Suazo arranged to bond out individuals from Pueblo jail in exchange for the murder of the witness. When each of those inmates failed to complete the murder, he turned to an individual who was actually an undercover agent. Suazo asked Gonzales to meet with this individual. Gonzales showed the undercover agent the Facebook account for the witness who was to be murdered, and the Facebook account of the witness’s girlfriend. She also drew a map to the witness’s last known residence. Eventually, the plan to hire the undercover agent to commit the murder fell apart. At that point, the two co-defendants tried to hire a fourth inmate to commit the murder. Both were then arrested and, as a result of the investigation, the witness was protected.
“Attacking a witness is attacking the very heart of the justice system,” said Acting U.S. Attorney Bob Troyer. “We won’t tolerate it. Ever. Pueblo has seen the last of Mr. Suazo for a good long time.”
“To save his own skin, Suazo attempted to hire not one, not two, but several people to murder a victim he already attempted to kill during a violent crime. He didn’t care about consequences to himself or his friend; he didn’t care about anyone else who could be hurt; he didn’t care about the victim or their loved ones,” said ATF Special Agent in Charge Debora Livingston. “His selfish and remorseless behavior is disgusting. The world is better off with him behind bars where innocent people never have to interact with him.”
This case was investigated by the ATF and Pueblo Police Department. The case was prosecuted by Assistant United States Attorneys Rebecca Weber and Hetal J. Doshi.
Colorado Man Sentenced to Prison for Conspiring to File Fraudulent Tax Refund ClaimsRead the Press Release
WASHINGTON – A Loveland, Colorado businessman, who owned a delicatessen franchise in Fort Collins, Colorado, was sentenced to serve 24 months in prison today for conspiring to file fraudulent claims for tax refunds, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Bob Troyer for the District of Colorado.
According to documents filed with the court, Daryl Brent Giesking, conspired with his return preparer, Teresa Marty, the owner of Advanced Financial Services (AFS), a Placerville, California tax return preparation business, to claim fraudulent refunds. With Marty’s help, Giesking filed three individual tax returns claiming more than $1 million in refunds based on falsely reported income tax withholdings. As a result, the Internal Revenue Service (IRS) paid out a $350,765 fraudulent refund to Giesking. Within months of receiving the refund, Giesking spent the funds on precious metals and coins, a truck, jewelry, luxury travel and sporting equipment. After discovering the refund should not have been paid, the IRS levied Giesking’s bank accounts and recovered approximately $40,503. Following the IRS’s levies, Giesking took steps to liquidate a number of his assets to include selling the truck he bought with the fraudulent proceeds and withdrawing all of the funds in his retirement account. He then relocated to Ecuador, where he was arrested in June 2016, on a warrant issued in this case.
In addition to the term of prison imposed, Giesking was ordered to serve three years of supervised release and to pay restitution to the IRS in the amount of $310,261.58. He was remanded into custody.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Troyer commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Erin S. Mellen and Assistant U.S. Attorney Kenneth M. Harmon, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Colorado Man Sentenced to Prison for Conspiring to File Fraudulent Tax Refund ClaimsRead the Press Release
A Loveland, Colorado businessman, who owned a delicatessen franchise in Fort Collins, Colorado, was sentenced to serve 24 months in prison today for conspiring to file fraudulent claims for tax refunds, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Bob Troyer for the District of Colorado.
According to documents filed with the court, Daryl Brent Giesking, conspired with his return preparer, Teresa Marty, the owner of Advanced Financial Services (AFS), a Placerville, California tax return preparation business, to claim fraudulent refunds. With Marty’s help, Giesking filed three individual tax returns claiming more than $1 million in refunds based on falsely reported income tax withholdings. As a result, the Internal Revenue Service (IRS) paid out a $350,765 fraudulent refund to Giesking. Within months of receiving the refund, Giesking spent the funds on precious metals and coins, a truck, jewelry, luxury travel and sporting equipment. After discovering the refund should not have been paid, the IRS levied Giesking’s bank accounts and recovered approximately $40,503. Following the IRS’s levies, Giesking took steps to liquidate a number of his assets to include selling the truck he bought with the fraudulent proceeds and withdrawing all of the funds in his retirement account. He then relocated to Ecuador, where he was arrested in June 2016, on a warrant issued in this case.
In addition to the term of prison imposed, Giesking was ordered to serve three years of supervised release and to pay restitution to the IRS in the amount of $310,261.58. He was remanded into custody.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Troyer commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Erin S. Mellen and Assistant U.S. Attorney Kenneth M. Harmon, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
U.S. Attorney Announces $1.95 Million Settlement to Resolve Claims for Unpaid PostageRead the Press Release
DENVER -- Bob Troyer, Acting U.S. Attorney for the District of Colorado, today announced that AtLast Holdings, Inc. has paid $1,950,000 to settle allegations that the corporation and its parent company Newgistics, Inc. failed to pay proper postage to the United States Postal Service (USPS).
The settlement announced today resolves a long-running investigation into AtLast, a provider of mailing and logistics services. The investigation by the United States Postal Inspection Service determined that AtLast had underreported the size and weight of packages it shipped through the USPS. The United States contends that as a result of these misrepresentations, AtLast paid less in postage than was actually due to the Postal Service.
“The U.S. Postal Inspection Service did a fantastic job investigating this case,” said Acting U.S. Attorney Bob Troyer. “Never a great idea to try to trick those guys.”
“The U.S. Postal Inspection Service is committed to protecting the U.S. Postal Service, and will vigorously pursue those who attempt to circumvent paying the USPS the full price due for its products and services,” said Craig Goldberg, Inspector in Charge, U.S. Postal Inspection Service, Denver, Colorado. “The Postal Inspection Service appreciates the strong stance the United States Attorney’s Office has taken against those who seek to take advantage of the U.S. Postal Service.”
The claims settled by this agreement are allegations. In entering into this civil settlement, AtLast and Newgistics did not admit liability.
The United States Attorney’s Office thanks the United States Postal Inspection Service for the work that made this recovery possible. The United States was represented in this matter by Assistant United States Attorney Jasand Mock of the District of Colorado.
Pueblo Man Sentenced to 14 Years in Federal Prison for Firearm and Drug CrimesRead the Press Release
DENVER – Daniel Ray Dace, age 25, of Pueblo, was sentenced today by U.S. District Court Judge R. Brooke Jackson to serve 168 months (14 years) in federal prison, followed by 3 years on supervised release for firearm and drug related crimes, the U.S. Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announced. Dace, who appeared at the hearing in custody, was remanded at its conclusion.
Dace was indicted by a federal grand jury in Denver on December 20, 2016. He pled guilty to being a felon in possession of firearms, possession of a controlled substance with the intent to distribute, and knowingly carrying a firearm during and in relation of a drug trafficking crime, on April 13, 2017, and was sentenced by Judge Jackson today, June 29, 2017.
According to the stipulated facts contained in the plea agreement, as well as other court documents, on October 4, 2016, the Pueblo Police Department received a report from a caller who observed a red Ford pick-up truck parked in front of what he thought was a vacant house. The caller also saw flashlights inside and around the house. The Pueblo Police Department responded, saw the red truck, and pulled it over. During the traffic stop Dace, the passenger, gave a fake name, and when confronted he admitted he had an outstanding arrest warrant. When he was taken into custody police found a total of $1,812 in cash on the defendant’s person. Located in Dace’s backpack following an inventory search was a .380 caliber semi-automatic pistol and several clear plastic baggies.
The driver of the red truck consented to a search. In the center console officers located another firearm, a .45 caliber pistol. Under the center console – next to where the defendant had been sitting – was a metal box, inside the box was a digital scale, more baggies, and in three separate baggies approximately 331 grams of 99.5% pure methamphetamine.
While detained in Pueblo County Jail, the defendant made several monitored phone calls to his mother, asking her to “go get my guns.” He wanted his guns sold so he could put money “on my book” which is an account used to purchase personal items from a prison store. Agents and officers executed a search warrant on the mother’s residence, and recovered seven additional firearms, all of which he had control over prior to being held in jail. Prior to Dace possessing the firearms, he had been convicted of Possession of a Controlled Substance with the Intent to Distribute, and was given a deferred sentence, making him a prohibited person not allowed to possess firearms. The defendant carried two of his firearms, the .380 caliber pistol and the .45 caliber pistol for protection of himself, the narcotics, and the money from his drug trafficking.
“For a community to breathe and be healthy again, certain people just need to be removed,” said Acting U.S. Attorney Bob Troyer. “With our exceptional partners, we forensically identify those certain people and remove them for good.”
“Dace was well known in the Pueblo community as a dealer in illegal narcotics. Now, he is well known for a long prison sentence,” said ATF Special Agent in Charge Debora Livingston. “We will continue to work closely with Pueblo PD and the U.S. Attorney’s Office to chip away at Pueblo’s drug trafficking and violent crime until these criminals are behind bars or take up shop elsewhere. They aren’t welcome in Pueblo.”
This case was investigated by the Pueblo Police Department and the ATF. The defendant was prosecuted by Assistant U.S. Attorney Kurt Bohn.
Denver Business Owner Indicted for Tax EvasionRead the Press Release
DENVER – Christopher Paul Kelly, age 49, of Denver, Colorado was indicted by a federal grand jury in Denver on June 7, 2017 on the charge of tax evasion, Acting United States Attorney Bob Troyer and IRS Criminal Investigation Special Agent in Charge Steven Osborne announced. The indictment remained sealed until Kelly made his initial appearance today, June 27, 2017 in U.S. District Court before a U.S. Magistrate Judge, where he was read his rights and advised of the charges pending against him.
According to the indictment, from July 2007 through the middle of 2015, Kelly held ownership interests in various merchant card service companies which sold vendors the ability to accept credit card payments. These ownership interests caused Kelly to earn taxable income which generated income tax due of $195,916 in 2006, $285,414 in 2007, and $16,766 in 2012. Kelly received his prepared 2006 tax return from his accountant on July 16, 2007 but did not file it until October 2012. Kelly filed his 2007 tax return in March 2012 and his 2012 tax return in 2013.
Instead of paying his outstanding tax liabilities, between 2008 and 2015, Kelly purchased or leased expensive automobiles and rented expensive homes as his personal residence. In 2008, Kelly caused J.L. to purchase a Mercedes automobile in J.L.’s name for $80,346.19 which Kelly paid for and used personally. Between 2011 and 2013, Kelly received residuals from Company S of $102,978 through his company Mile High Merchant Group.
In 2012, Mile High Merchant Group became a “dba” of Imax Business Solutions Denver LLC (IMAX) and Kelly became a member of IMAX with a 48% ownership interest. On January 1, 2012, Kelly sent a letter to Company S stating Kelly and Mile High Merchant Group were “transferring and assigning all liabilities and assets to Imax Business solutions LLC and [K.T.] who is the sole managing member.” In 2012 and 2013, Company S continued to do business with Kelly through IMAX and paid residuals of approximately $184,406 and $137,043, respectively.
When the IRS contacted Kelly regarding the outstanding tax liabilities, Kelly made false statements to the IRS Revenue Officer attempting to collect the debt. After the IRS levied Kelly’s U.S. Bank account, Kelly stopped making deposits into the account and allowed it to become overdrawn. Instead, Kelly used a bank account controlled by his girlfriend, M.A., to deposit much of his income and pay many of his personal expenses. Kelly also cashed out the entire value of his life insurance account and withdrew the balance of his 401(k) account, removing the IRS’ ability to place a levy on these assets.
Kelly is charged with one count of tax evasion which carries a penalty of up to 5 years in prison and a fine of up to $250,000.
This case was investigated by the Internal Revenue Service – Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Pegeen Rhyne.
The charges contained in the Indictment are allegations and the defendant is presumed innocent unless and until proven guilty.
South Carolina Man Sentenced to 30 Years in Federal Prison for Using Fake Facebook Profiles to Meet and Coerce Six Colorado Teenagers into Taking and Sending Him Explicit PhotographsRead the Press Release
DENVER – Christopher George White, age 38, of McCormick, South Carolina, was sentenced last week by U.S. District Court Judge R. Brooke Jackson to serve 30 years in federal prison, followed by a lifetime term of supervised release, for his conviction on six counts of coercion and enticement of a minor, Acting U.S. Attorney Bob Troyer and Acting U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Special Agent in Charge John Eisert announced. White, who was remanded to the custody of the Bureau of Prisons following the hearing, used social media, text, and telephone calls to meet, entice, and then threaten minors into taking off clothing or committing sex acts for his own personal pleasure.
According to the stipulated facts contained in the plea agreement, between June 30, 2014 and August 4, 2014 White, targeted child victims ranging from 13 to 14 years of age by using Facebook profiles “Kent Noelle” and “Glenn Black.” White claimed to be a teenage boy while he was truly a 35-year-old man and previously convicted sex offender. He used those profiles to correspond with minor girls, including the six minor girls from Colorado. After first befriending them online, and then texting and even talking with the minors by phone, the defendant then began to use harassment, threats of physical harm, and threats to post sexually-explicit photographs of the children or their friends on social media, all in an effort to coerce the teenagers to produce and send him child pornography of themselves.
After pleading guilty to the six counts in this case, but before his sentence was announced, White continued to contact other minor girls from prison to harass them or engage in graphic phone sex with them. When White’s phone privileges were curtailed, he used another inmate’s access to continue contacting teenage girls from prison.
“HSI’s and our prosecutors’ forensic skill at catching these predators is second to none,” said Acting U.S. Attorney Bob Troyer. “But the absolute best way to protect your kids from being preyed upon like this is to keep an eye on their behavior and phone and computer use.”
“This child exploitation case is an example of HSI’s commitment, in partnership with the Department of Justice, to track, investigate and prosecute child predators to the fullest extent of the law,” said John Eisert, acting special agent in charge of HSI Denver. “HSI has an active and ongoing Operation Predator program to identify criminals who prey on children. Operation Predator helps make our communities safer by bringing criminals to justice for their despicable exploitation of our children.”
This case was investigated by HSI and the Larimer County Sheriff’s Office, as well as the Oconee County Sheriff’s Office in South Carolina.
White is being prosecuted by Assistant U.S. Attorneys David Tonini and Gregory Holloway.
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.
Man Found Guilty of Making False Statement About Combat DeploymentRead the Press Release
DENVER – Following a five-day jury trial in federal court before Senior U.S. District Court Judge John L. Kane, defendant Cameo Williams, Sr., age 34, of Denver, was found guilty of the single count of making a false statement, the U.S. Attorney’s Office and the Department of Veterans Affairs Office of the Inspector General announced. A sentencing hearing date has not yet been scheduled. Williams appeared at the trial free on a $5,000 unsecured bond.
Williams was indicted by a federal grand jury in Denver on March 24, 2016. After substantial litigation, his jury trial began on June 12, 2017. The jury found him guilty on June 19, 2016.
According to evidence presented to the jury at trial, Williams spent several years claiming to have post-traumatic stress disorder (PTSD) from a combat deployment. He was receiving disability compensation from the Department of Veterans’ Affairs (VA) for the PTSD. However, the defendant had actually served only a little more than two years in the Army—without a single day spent overseas—before being discharged for misconduct. Williams told the VA that the Army simply made an error in not mentioning his deployment on his discharge paperwork. However, the evidence at trial showed that not only did his personnel file lack any evidence of a deployment, he also had never received combat pay at any point in his Army career and had never had the necessary medical screenings and immunizations required for a deployment. In fact, Williams’ medical records showed him attending doctor’s appointments in Washington state during the time he claimed to have been deployed, and two soldiers from his unit testfied that no one from that unit had deployed during the time Williams said he was overseas.
The defendant faces not more than 5 years in federal prison and up to a $250,000 fine. This case was investigated by the Department of Veterans Affairs Office of the Inspector General, and prosecuted by Special Assistant U.S. Attorneys Tim Hoffman and Dan Burrows.
"Homesource Partners Inc." Pleads Guilty to Wire Fraud and Engaging in Monetary Transactions in Property Derived from Wire Fraud as Part of Investment Fraud SchemeRead the Press Release
DENVER – Karen Lynn McClaflin, age 58, of Colorado Springs, Colorado, and owner of “Homesource Partners Inc.” pled guilty today before U.S. District Court Judge Christine M. Arguello to one count of wire fraud and one count of engaging in a monetary transaction in property derived from wire fraud, Acting U.S. Attorney Bob Troyer, FBI Special Agent in Charge Calvin Shivers and IRS Criminal Investigation Special Agent in Charge Steven Osborne announced. McClaflin appeared at the change of hearing free on a personal recognizance bond.
The defendant is scheduled to be sentenced by Judge Arguello on January 17, 2018. She was first charged by Information, after waiving her right to be indicted by a federal grand jury, on May 17, 2017. On that date she made her initial appearance, where she was advised of the charges pending against her and read her rights.
According to the stipulated facts contained in the plea agreement, in December 2005, McClaflin and a partner opened a franchise of “We Buy Ugly Houses” named 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 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 all involved 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 represented to those involved 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%. Finally, she represented that the properties would normally be sold in 3 months.
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, and without investor funding, Homesource would have failed years ago.
This case is being investigated by the Federal Bureau of Investigation and IRS Criminal Investigation. The defendant is being prosecuted by Assistant U.S. Attorney Pegeen Rhyne.
Ohio Man Who Enticed a Colorado Minor Victim in an Attempt to Produce Child Pornography Sentenced to Lengthy Prison TermRead the Press Release
DENVER – Rande Brian Isabella, age 60, of Hubbard, Ohio, was sentenced late yesterday by U.S. District Court Judge Christine M. Arguello to serve 216 months (18 years) in federal prison, followed by 20 years on supervised release for one count of coercion and enticement of a minor and one count of attempted production of child pornography, Acting U.S. Attorney Bob Troyer and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge John Eisert announced. The defendant who appeared at the sentencing hearing in custody, was remanded at its conclusion.
Isabella was indicted by a federal grand jury on May 20, 2014. On October 7, 2016 the defendant was convicted of coercion and enticement of a minor and one count of attempted production of child pornography following a 11 day jury trial. The jury acquitted the defendant on two other charges. He was sentenced on May 24, 2017.
According to the facts presented at trial, between September and December 2013, Isabella communicated via phone and online with a 14 year-old girl in Colorado. Through these communications, he misrepresented his age to her and repeatedly asked for pictures of her as their conversations became increasingly sexual in nature. Ultimately, he was able to persuade her to send him a naked photograph of herself. Isabella told the minor girl that he was her boyfriend and asked her to stay with him if he traveled to Colorado. He sent her a photograph of his own genitalia, encouraging her to respond in kind. She did send him more pictures of herself, some sexual in nature, before she lost her phone. The minor girl’s mother found her phone and discovered these conversations with Isabella. She sought the help of law enforcement, and HSI began investigating the defendant’s online activities.
During the course of the investigation, federal agents determined Isabella’s identity and address. A search warrant was then obtained and executed at his home in Ohio. Agents seized his phone and two of his computers. On his phone, they found the communications with the minor girl and photographs of her that he had saved. On his computer, a forensic analyst found that Isabella had Googled the minor girl shortly after they began communicating and that he had visited her Facebook profile, looking at her friends and photos. He also visited three different website pages which showed that the minor girl had competed in 2012 in middle school track races. After viewing those pages, Isabella continued to communicate with the minor girl and saved to his phone the nude image she sent him. Evidence was also introduced at the trial and at the sentencing hearing that Isabella had communicated with three additional minor females and was in possession of nude images of those minors.
“These folks are the worst kind of predators,” said Acting U.S. Attorney Bob Troyer. “But thanks to HSI and our elite prosecutors, they learn as Mr. Isabella did that there are another class of predators above them in the food chain.”
“The prison sentences for those who produce child pornography are appropriately lengthy, such as this 18-year federal prison sentence for Rande Isabella,” said John Eisert, acting special agent in charge of HSI Denver. “HSI has a very active Operation Predator program to identify and investigate those who sexually exploit children, and to rescue the victims of these predators.”
This case was investigated by HSI. The defendant was prosecuted by Assistant U.S. Attorneys Alecia Riewerts and Celeste Rangel.
Lakewood Tax Return Preparer Sentenced for Preparing False Tax ReturnsRead the Press Release
DENVER – Hieu Mattison, age 53, of Lakewood, Colorado was sentenced yesterday by U.S. District Court Chief Judge Marcia S. Krieger to serve 21 months in prison for preparing and filing false federal income tax returns, Acting United States Attorney Bob Troyer and IRS – Criminal Investigation Special Agent in Charge Steven Osborne announced. Following his prison sentence, Mattison was ordered to serve 1 year on supervised release. Judge Krieger also ordered Mattison to pay $133,544 in restitution to the Internal Revenue Service. As a special condition of supervised release, Chief Judge Krieger ordered that the defendant cannot be involved in the tax preparation business.
According to the indictment and plea agreement, Mattison was the owner and primary tax return preparer of AAAE Financial, Inc. (AAAE) in Lakewood, Colorado. Between 2008 and 2012, Mattison prepared federal income tax returns in which he added false income items, such as W-2 wages, household help (HSH) income, and/or false Schedule C business income to his mostly low-income clients’ tax returns. The false items increased various tax credits and resulted in false refunds. On occasion, Mattison added false education credits instead of false income. While he had four employees at AAAE, Mattison reviewed all tax returns before they were transmitted to the IRS.
Most of the generated refunds were direct deposited into a business bank account controlled by Mattison. After the refund was deposited into the account, the client would usually pick up the refund in cash, less Mattison’s preparation fee. When an undercover agent posed as a client at AAAE, Mattison added $6,002 in false HSH income, as well as educational expenses that Mattison and the undercover agent had not discussed. Mattison filed 34 false tax returns for 16 individuals for the tax years 2008 through 2012 for a total tax loss amount of $133,544.
“Prison is the fitting end for a tax preparer in a position of trust who preyed on the poor to steal money from the government,” said Acting U.S. Attorney Bob Troyer.
"Return Preparer fraud is a priority for IRS Criminal Investigation and we have committed many resources to investigating and prosecuting cases just like these," said Steven Osborne, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office. "It is our hope that today's sentence sends the strong message that tampering with the integrity of our nation's tax system will result in jail time."
This case was investigated by IRS – Criminal Investigation and prosecuted by Chief of the Economic Crimes Section of the U.S. Attorney’s Criminal Division, Assistant U.S. Attorney Martha Paluch.
Willmax Capital Management, Inc. and a Senior Corporate Manager Sentenced for Charges Related to Illegal Asbestos ReleaseRead the Press Release
DENVER – Willmax Capital Management, Inc. (Willmax Capital) and a senior corporate manager John Tom Williams, age 58, of Dallas, Texas, were sentenced earlier this week by Senior U.S. District Court Judge Lewis T. Babcock for crimes related to an illegal release of asbestos during a renovation project at a Willmax Capital-managed residential complex known as The Overlook at Mile High at 3190 West 14th Avenue in Denver, Colorado. The release, which affected more than a hundred individuals, occurred in early 2014.
Willmax Capital was ordered to spend 5 years on probation. Chief Judge Babcock ordered that as a condition of probation, the company must pay for and comply with a medical monitoring program for individuals who were exposed to asbestos as a result of the offense. The program will be conducted at National Jewish Health in Denver.
The judge will hold a hearing on August 7, 2017, to determine the amount of restitution the corporation must pay.
The judge sentenced Williams to serve 8 months in federal prison, followed by 1 year on supervised release. Williams was also ordered to pay a $100,000 fine.
The sentences were announced by the U.S. Attorney’s Office and the Environmental Protection Agency (EPA) Office of Criminal Investigations.
Willmax Capital Management was charged on November 16, 2016, with violating an EPA rule requiring it to inspect facilities for asbestos prior to renovation. Williams was charged the same day with negligently releasing asbestos into the air and thereby negligently placing other persons in imminent danger of death or serious bodily injury. The defendants entered guilty pleas to those counts on December 14, 2016.
According to the stipulated facts in the defendants’ plea agreements, WillMax Capital failed to conduct an inspection to determine whether asbestos was present before starting the renovation. Williams’s plea agreement described him as the ultimate decision-maker for renovation activities at the Overlook, including the abatement of asbestos-containing materials, and noted that his subordinates relied on him to alert them when such activities might disturb asbestos.
“EPA did an exceptional job with this investigation and, together with our prosecutor, crafted a resolution that properly punishes dangerous activity at the same time it brings tangible relief to the real people who suffered the asbestos exposure," said Acting U.S. Attorney Bob Troyer.
“The defendants’ negligence in this case exposed more than 100 people to asbestos and jeopardized their health and safety,” said Special Agent in Charge Jeffrey Martinez, who oversees EPA’s Criminal Enforcement Program in Colorado. “This plea agreement was negotiated to provide the victims with restitution and medical assistance they would not otherwise have received, and this case serves as a warning that violating rules that protect against public endangerment can have serious consequences.”
This case was investigated by special agents of the EPA Office of Criminal Investigations and was prosecuted by the U.S. Attorney’s Office’s Economic Crimes Section, part of the Criminal Division.
U.S. Attorney's Office Wins Award for Community EffortsRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado has received the 2017 Special Recognition Award from the Colorado Lawyers Committee for the office’s contributions to hate crime and “know your rights” educational programs, Acting U.S. Attorney Bob Troyer announced. The award was presented last Friday, May 5th during the Colorado Lawyers Committee annual awards luncheon. The honor comes as the Department of Justice celebrates Public Service Recognition Week 2017 (which is May 7 through May 13th).
“This award is a great honor to the almost 200 men and women of the U.S. Attorney’s Office,” said Acting U.S. Attorney Bob Troyer. “They dedicate themselves every day to community safety, and they tirelessly volunteer on a wide variety of programs that improve safety. Because they know this: Communities are safer when they know their rights and when they understand and trust law enforcement.”
According to the Colorado Lawyers Committee, over 30 members of the U.S. Attorney’s Office have volunteered with CLC’s Hate Crimes Education Task Force to reach out to minority communities and educate 800 high school and middle school students at schools with highly diverse populations. This program educates students about the justice system, hate crimes law, and civil rights through participation in mock trials.
The U.S. Attorney’s Office also works closely with the Lawyers Committee Legal Night Team to provide “Know Your Rights” presentations at “legal nights” around Colorado. The Denver Legal Night is the third Tuesday of every month at Mi Casa Resource Center. These presentations cover housing discrimination, employment discrimination, and health care discrimination, among other topics. The U.S. Attorney’s Office coordinated with the U.S. Department of Education, Office of Civil Rights; the U.S. Department of Housing and Urban Development, Office of General Counsel; HUD’s Office of Fair Housing and Equal Opportunity; and the U.S. Department of Health and Human Services, Office for Civil Rights, to make these presentations.
In addition to the two Colorado Lawyers Committee programs for which the U.S. Attorney’s Office received this award, almost 100 members of the office participate in other community safety volunteer work, including programs to increase safety at houses of worship of all denominations, to prevent violent extremism, to improve community resilience, to prevent gang involvement, to assist inmates who are returning to communities from prisons, to educate teachers and parents about identifying and reducing radicalization, to engage with diverse community leaders, and to educate the public about hate crimes and civil rights.
Pueblo Man to Serve 151 Months in Federal Prison for Gun and Drug ChargesRead the Press Release
DENVER – John Catilino Maez, age 35, of Pueblo, Colorado, was sentenced today by U.S. District Court Judge R. Brooke Jackson to serve 151 months (over 12 years) in federal prison for gun and drug charges, Acting U.S. Attorney Bob Troyer and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Denver Field Division Special Agent in Charge Debora Livingston announced. Following his prison sentence, Maez was ordered to serve 3 years on supervised release. Following the sentencing hearing the defendant, who appeared in custody, was remanded.
Maez was indicted by a federal grand jury in Denver on August 10, 2016. He pled guilty before Judge Jackson on February 22, 2017 to being a felon in possession of a firearm, being a felon in possession of ammunition, and possession of heroin with intent to distribute. He was sentenced today, May 11, 2017.
According to the stipulated facts contained in the plea agreement, on May 17, 2016, Pueblo Police officers and ATF special agents executed a search warrant at Maez’s residence based on probable cause that he was distributing narcotics from that location. During a search of the defendant’s bedroom agents and officers found two rifles (a 12 gauge shotgun and a SKS Model 45 caliber rifle), a bullet proof vest hanging in the closet, 935 rounds of various caliber ammunition, two scales and approximately 38.5 grams of Heroin or a mixture thereof individually wrapped into 9 separate baggies.
“Poison, danger, and fear was all this man was contributing to his community,” said Acting U.S. Attorney Bob Troyer. “Thanks to exceptional law enforcement in Pueblo and our talented prosecutor, he’s gone now.”
“Maez has an unapologetic history of violence and drug trafficking that poisoned everyone around him. Removing him from the streets is another measurable step toward improving the health and safety of Pueblo’s law-abiding citizens,” said ATF Special Agent in Charge Debora Livingston.
This case was investigated by the ATF and the Pueblo Police Department Narcotics Unit. The defendant was prosecuted by Assistant U.S. Attorney Kurt Bohn.
Littleton Woman Sentenced to Seven Years in Federal Prison for Oil and Investment SchemeRead the Press Release
DENVER – Jill M. Evans, age 51, of Littleton, Colorado, was recently sentenced by U.S. District Court Judge John L. Kane to serve 84 months (7 years) in federal prison for wire fraud and money laundering, the U.S. Attorney’s Office, FBI and Internal Revenue Service – Criminal Investigations announced. Following her prison sentence, Evans was ordered to serve 3 years on supervised release. She was also ordered by Judge Kane to pay $2,094,500 in restitution. Evans was indicted by a federal grand jury on May 21, 2015 and pled guilty on January 23, 2017. She was remanded to the custody of the U.S. Marshals at the end of the hearing.
According to the indictment and plea agreement, in September 2011 and continuing through May 2015, Evans devised a scheme to defraud at least eight individuals whom she solicited to invest in alleged oil transactions. Evans represented to potential investors that she or one of her companies, Paramount Mortgage or Evcom, had a contract with a Russian company to purchase tankers of diesel oil and jet fuel. She claimed that the oil deals could not be completed until certain fees or other expenses related to the deals could be paid.
Evans falsely told investors they would receive a return on their investment ranging from fifty percent to fifty times their original investment within a matter of days or weeks. She told investors that their funds would be held in an escrow account and would be fully refundable if the oil deal did not close. Evans instructed investors to transfer funds to bank accounts. Investors’ funds were not used as represented and were also sent to personal bank accounts that Evans controlled.
Evans told investors that oil deals were nearing successful completion and that disbursements of profits were imminent. She forged e-mails and letters from an attorney at Salans, a major international law firm now merged with Dentons, stating the deal was proceeding and certain steps in the transaction were being completed. She represented that this law firm and Barclays Bank were vetting the deal, when they were not. She created false wire confirmations that she sent to her victims to conceal the disposition of their funds. Evans also sent e-mails attaching fabricated court documents regarding the status of civil litigation purporting to award Evans or related parties substantial sums of money.
Furthermore, Evans concealed from her victims her December 2011 criminal indictment by a State of Colorado grand jury and her subsequent March 2013 criminal conviction for theft and forgery. Evans’s bond conditions prohibited her from entering into any financial transactions in excess of $1,000, and the terms of her subsequent state sentence prohibited her from investing money, entering into any financial contracts or arrangements, and having access to or control of any funds of any individual.
“This is long-term, deliberate, professional stealing,” said Acting U.S. Attorney Bob Troyer. “Luckily for the victims, our prosecutors and the IRS CI and FBI investigators are even more skilled and dogged at rooting out rank theft from innocent victims. And the defendant will have a nice chunk of time to reflect on that.”
"Honest and law abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money," said Steven Osborne, IRS-Criminal Investigation, Special Agent in Charge, Denver Field Office. “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 sentence sends a strong message to anyone considering deceiving others with fraudulent investment schemes.” said FBI Denver Special Agent in Charge Calvin Shivers. “The FBI will continue to work with our law enforcement partners to protect innocent victims from being preyed upon.”
This case was investigated by IRS – Criminal Investigation and the FBI. The case was prosecuted by Assistant U.S. Attorneys Anna K. Edgar and Rebeca Weber.
FBI and the U.S. Attorney's Office Continue to Fight Against Child PornographyRead the Press Release
DENVER – As part of the Department of Justice’s ongoing efforts to prosecute sexual predators and protect innocent victims, Acting U.S. Attorney Bob Troyer and FBI Denver Division Special Agent in Charge Calvin Shivers are highlighting five recent child pornography cases that demonstrate both agencies’ commitment to that mission. These cases follow shortly on the heels of Acting U.S. Attorney Bob Troyer's announcement of the formation of the Cybercrime and National Security Section, which is dedicated to protecting the citizens of Colorado and the nation from the growing threat of online crimes and threats to the homeland. The below cases demonstrate the effectiveness of this new section in responding to these threats.
Sharee Ewudzi-Acquah, age 47, of Westminster, Colorado, pleaded guilty on April 28, 2017 to possessing child pornography. She had been held without bond following her arrest by the FBI on the indictment obtained on October 20, 2016. According to the Plea Agreement and facts provided to the court during the defendant’s detention hearing, the defendant traded child pornography with multiple other like-minded people using an application on her cellular telephones. The defendant shared dozens of images of child pornography online, and she engaged in graphic chats with others about having sex with children. She also chatted with a man about having a child they could molest together. Following the forensic analysis on Ewudzi-Acquah’s phones, agents determined the defendant was using cloud storage, foreign emails, and foreign cloud storage – in both New Zealand and in Russia. Evidence also showed that the defendant, who had a long-term job at the University of Colorado, traded child pornography and chatted about child pornography while at work. The defendant is scheduled to be sentenced on July 28th, 2017 before U.S. District Court Judge Philip Brimmer. The defendant has agreed in the Plea Agreement not to seek a sentence of less than five years. She faces up to 10 years in federal prison, and up to a $250,000 fine to be followed by not less than 5 years up to lifetime supervised release. The defendant was remanded to custody pending the sentencing hearing.
Walter Briggs, age 62, of Denver, Colorado, pleaded guilty on August 18, 2016, to a possession of child pornography charge. He was sentenced on April 24th, 2017 by Chief U.S. District Court Judge Marcia Krieger to serve 15 years in federal prison followed by supervised release for life. He was also ordered to pay $22,000 in restitution to his victims. Briggs was held without bond after his arrest by the FBI on the indictment on January 28th, 2016. He was remanded to custody following the sentencing hearing. According to court records, Briggs has two other felony sex convictions and was a registered sex offender at the time he committed the federal offense. In 1984, the defendant was convicted of Attempted Sexual Assault on a Child. In 1993, the defendant was convicted of Sexual Assault on a Child by One in a Position of Trust. Each involved the sex assault of minor girls. In October 2015, law enforcement found that Briggs was sharing online over 1,400 images and videos of child pornography, mostly of infant and toddler girls. The defendant was present at his home when FBI executed a search warrant. He was found in possession of at least 8,000 images of child pornography. The sheer size of his collection made a more exact accounting difficult since he had another 160,000 images across multiple devices. FBI found at least 1,000 images of infants or toddlers, and over 100 sadomasochistic sex abuse images of children.
Paul Andrew Lee, age 54 of Parker, Colorado was arrested after being indicted by a federal grand jury on one count of accessing the Internet with intent to view child pornography. On April 28th, 2017, the defendant appeared in custody before the Honorable Magistrate Judge Mix. The court advised him that because he has at least one prior sex-related conviction, he was facing prison time of not less than 10 nor more than 20 years’ imprisonment, not less than five years nor more than life supervised release, and a fine of up to $250,000. The defendant was ordered held without bond by U.S. Magistrate Judge Kristen L. Mix. The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
Damien Marc Smith, age 45 of Denver, Colorado, was arrested on April 26th, 2017 after being indicted of two counts of distribution and possession of child pornography charges. During the detention hearing on May 1, 2017, the government proffered evidence showing the defendant had been sharing and downloading child pornography for at least 10 years, and that he had been previously fired from a job for viewing child pornography at work, a fact not reported to law enforcement. Shortly before a search warrant was executed on defendant’s residence, an undercover law enforcement officer downloaded approximately 700 images and 250 videos of child pornography from the defendant. One of the videos of child pornography that he was sharing was over two hours long. During the search warrant execution, the defendant was found in possession of at least 140,000 images and videos of child pornography. The defendant had sorted his collection of child pornography into folders on his devices with titles such as “pre-teen hard core,” and “!keepers”. The defendant was ultimately released on bond conditions. If convicted of distribution of child pornography, the defendant faces not less than 5 years, and up to 20 years in federal prison. If convicted of possession of child pornography, he faces up to 10 years' imprisonment. Both counts also carry potential fines of up to $250,000 per count as well as not less than 5 years’ up to lifetime of supervised release. The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
These cases were investigated by the FBI and the FBI Child Exploitation Task Force. They are being prosecuted by Assistant U.S. Attorney Valeria Spencer, assigned to the Cybercrime and National Security Section at the Colorado U.S. Attorney’s Office.
David Eugene Reed, age 66, of Longmont, Colorado was sentenced on April 26th, 2017 by U.S. District Court Judge William Martinez to serve 64 months in prison and pay $10,100 in fines and special assessments followed by 10 years of supervised release. Reed was also ordered to pay restitution of $14,500 to the victims of his crime. The sentence was handed down on April 26, 2017, and Reed was remanded into custody at the conclusion of the hearing. According to court records, the FBI executed a search warrant at the defendant’s home in Longmont. Reed, a recent retiree, was present during the search and he told the FBI agents that he had accessed child pornography daily for approximately 15 years, that he attempted to cover up his conduct by running a cleaning tool on his computer every day, and that he searched for child pornography on the “Dark Web” through “Tor” anonymization software. A computer forensic analysis revealed that Reed had amassed 248,150 images and 1,341 videos that depicted the sexual abuse of children. The files were organized on the defendant’s computer by folders bearing the child victims’ names.
This case was investigated by the FBI. The defendant was prosecuted by Assistant U.S. Attorney David Tonini, assigned to the Cybercrime and National Security Section of the Colorado U.S. Attorney’s Office.
East Side Crips Taken Down by Metro Gang Task Force in One of the Largest Federal Drug Enforcement Actions in the Past DecadeRead the Press Release
DENVER – A federal grand jury in Denver has returned eight separate indictments charging a total of 52 individuals with trafficking cocaine and crack cocaine in the Denver metro area, Acting United States Attorney Bob Troyer, FBI Denver Division Special Agent in Charge Calvin Shivers, Aurora Police Chief Nick Metz, and members of the Metro Gang Task Force announced. Of the 52 indicted, 35 were arrested. The other 17 defendants are considered fugitives. Most of those arrested today made an initial appearance before a U.S. Magistrate Judge, where they were advised of their rights and the charges pending against them. Those individuals will have detention hearings and arraignments next week on May 9, 2017. Those who didn’t make it to court today will appear in court tomorrow.
Today’s take down involved 225 Special Agents and officers from 18 agencies, including SWAT teams from 4 different departments. This 20-month investigation focused on cocaine and crack cocaine dealing by members and associates of the East Side Crips. These gang members dealt cocaine and crack cocaine in open air drug markets, including near parks and public transportation centers – both areas where children and families congregate. The goal of this investigation is to remove poison, fear and danger from these places so they can be used again freely by the public.
The lead defendants of each of the eight indictments are: Jerrell Birch (1 of 14 defendants); Rodrick Harris (1 of 4 defendants); Shedrick Wilford (1 of 6 defendants); Tamar Henry (sole defendant); Sealed Indictment; Deon Jackson (sole defendant); Kiki Douglas (1 of 6 defendants); and Clarence Antoine and Spencer Antoine (2 of 22 defendants). Three defendants are named in two different indictments.
If convicted, the 52 defendants face a wide variety of criminal consequences depending on the drug trafficking charges. Some face not less than 10 years and up to life, others face not less than 5 years and up to 40 years, and yet others face not more than 20 years in federal prison. Also, some defendants are charged with using a telephone to commit a drug trafficking offense. The penalty for that charge is not more than 4 years in federal prison per count.
“In Colorado we pride ourselves on gold-standard law enforcement partnerships that make life safe here,” said Acting U.S. Attorney Bob Troyer. “Eighteen agencies came together in this investigation and removed poison, fear and danger from parks, neighborhoods, and public transportation. And they did it with minimal disruption to the folks in those communities who just want to go outside, walk to school, use their parks, or take the light rail.”
“Today’s arrests are indicative of the success that can be attained when agencies combine resources to attack violent street gangs,” said FBI Special Agent in Charge Calvin Shivers. “Crimes of this nature cause our citizens to live in fear and threaten to destroy our neighborhoods. This cannot be tolerated. We are confident today’s arrests will send a message to those contemplating committing these egregious acts that they will be aggressively investigated and prosecuted to the full extent of the law. The FBI will continue to continue to work with our law enforcement partners and prosecutors to attack this crime problem and remove violent criminals from our neighborhoods.”
“The magnitude of this investigation demonstrates the collaborative effort to identify, target and address metropolitan-wide organized gangs involved in drug trafficking and violence in our community,” said Aurora Police Chief Nick Metz. “The hard work and dedication of all the investigators and officers involved will have a tremendous impact on our communities. Thank you to everyone who was involved.”
The Metro Gang Task Force consists of the U.S. Attorney’s Office, the Aurora Police Department, the FBI, the Denver Police Department, the Arapahoe County Sheriff’s Office, the Colorado State Patrol, the Colorado National Guard Joint Counter-Drug Task Force, the Denver District Attorney’s Office, the Douglas County Sheriff’s Office, the Lakewood Police Department, the Jefferson County Sheriff’s Office, High Intensity Drug Trafficking Area (HIDTA) and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigation (HSI). Agencies assisting with the arrest operations include: the Longmont Police Department, the Northglenn Police Department, the Thornton Police Department, the Westminster Police Department, and the U.S. Marshal’s Service.
The charges contained in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
Postal Service Employee Pleads Guilty After Faking Cancer in Order to Work from Home and Claim Hundreds of Hours of Sick LeaveRead the Press Release
DENVER – Caroline Zarate Boyle, age 59, of Highlands Ranch, Colorado, a U.S. Postal Service employee, pled guilty today to presenting a forged writing to the United States with the intent to defraud after fabricating to her employer that she had cancer in order to work from home and claim hundreds of hours of sick leave. The guilty plea occurred before U.S. District Court Judge Raymond P. Moore, Acting U.S. Attorney Bob Troyer and U.S. Postal Service Office of Inspector General Special Agent in Charge (USPS OIG) Scott Pierce announced.
Boyle was first charged by Criminal Complaint on March 3, 2017. She was indicted by a federal grand jury in Denver on March 16, 2017. She pled guilty today, April 28, 2017. Boyle is scheduled to be sentenced by Judge Moore on July 25, 2017 at 9:00 a.m.
According to the Factual Basis for the Change of Plea, Boyle, a U.S. Postal Service employee, decided to take some time off of work after she was not selected for a promotion she had sought. To take the time off she told her supervisor that she was recently diagnosed with non-Hodgkins lymphoma, when in fact she did not have any type of cancer. She then began to take substantial amounts of sick leave.
Boyle continued the ruse until she was interviewed by an agent of the Postal Service’s Office of the Inspector General. It was determined in the approximate 20 months that the defendant’s fraud lasted, she used her non-existent cancer treatment to support both unwarranted sick leave and unwarranted accommodations allowing her to work part-time or work from home five days a week. The defendant intended to continue using the fake illness until her scheduled retirement in April 2017. Despite claiming the cancer treatment had her too sick to work a regular schedule or come into the office, Boyle was planning a post-retirement cruise in Hawaii.
In support of her ruse, Boyle emailed her supervisor notes from two different doctors (at least four notes total), indicating that she was receiving cancer treatment. However, the notes were created by the defendant herself. Investigators learned that she was not a patient of either doctor.
The charge Boyle pled guilty to carries a penalty of up to 10 years in federal prison and up to a $250,000 fine.
This case is being investigated by the U.S. Postal Service’s Office of the Inspector General and is being prosecuted by Special Assistant U.S. Attorney Dan Burrows.
Bank Robber Arrested by Westminster Police Department and FBI Rocky Mountain Safe Streets Task ForceRead the Press Release
DENVER – Christopher Dean Grisham, age 28, of Adams County, Colorado, was arrested last week by the Westminster Police Department and the FBI Rocky Mountain Safe Streets Task Force for bank robbery, the U.S. Attorney, FBI and Westminster Police Department announced. The defendant appeared in federal court this morning before a U.S. Magistrate Judge for a detention hearing. U.S. Magistrate Judge Kristen L. Mix ordered Grisham held without bond pending a resolution of his case. No trial date has yet been scheduled. The defendant is to appear in court on May 9, 2017 for a preliminary hearing.
According to court documents, on March 22, 2017, an individual robbed the U.S. Bank at 3454 West 72nd Avenue in Westminster. On March 29, 2017, that same individual robbed the Wells Fargo Bank located at 7401 Federal Blvd also in Westminster. After the March 22 bank robbery, investigators received a tip after someone saw an image of the bank robber, stating they believed the robber was Christopher Grisham. Special Agents and officers conducting the investigation showed the victim tellers of both banks a photo lineup which included a photo of Grisham. Both tellers identified Grisham as the individual responsible for the robbery.
Based on that information, a Criminal Complaint was obtained on April 21, 2017, charging Grisham with bank robbery. He was arrested, and then made his initial appearance on April 25, 2017, where he was advised of his rights and the charges pending against him. Bank robbery carries a penalty of not more than 20 years in federal prison, and up to a $250,000 fine.
This case was investigated by the FBI Rocky Mountain Safe Streets Task Force and the Westminster Police Department. The defendant is being prosecuted by Assistant U.S. Attorney Kurt Bohn.
A Criminal Complaint is a probable cause charging document. Anyone accused of committing a felony violation of federal law has a Constitutional right to be indicted by a federal grand jury. The charges contained in the Complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
Colorado Springs Man Sentenced to Lengthy Prison Term for Producing Child PornographyRead the Press Release
DENVER – Richard Hennis, age 41, of Colorado Springs, Colorado, was sentenced earlier this week by U.S. District Court Judge Philip A. Brimmer to serve 324 months (27 years) in federal prison for the production and transportation of child pornography, Acting U.S. Attorney Bob Troyer, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Denver Division Acting Special Agent in Charge John Eisert, and Internet Crimes Against Children (ICAC) Commander for Colorado Lieutenant Christina Sheppard of the Colorado Springs Police Department announced. Following his prison sentence, Hennis was ordered to serve 10 years of supervised release. The defendant, who appeared at the hearing in custody, was remanded at its conclusion.
Hennis and a co-defendant, Brandi Leonard, were first charged by criminal complaints on March 11, 2016. They were then indicted by a federal grand jury in Denver on April 5, 2016. Hennis pled guilty before Judge Brimmer on November 21, 2016, and was sentenced on April 19, 2017.
Leonard pled guilty to one count of production of child pornography before Judge Brimmer on April 13, 2017. Production of child pornography carries a penalty of not less than 15 years, and not more than 30 years in federal prison, and up to a $250,000 fine. Her sentencing is scheduled for July 21, 2017.
According to evidence presented in open court, as well as information contained in public filings, in the course of online chats that occurred between Hennis and Leonard spanning approximately one month, Leonard told Hennis that she had sexually abused an infant. Hennis encouraged Leonard to sexually abuse the infant again, to take pictures or video of the abuse, and to send them to him. Leonard did exactly what Hennis had asked. Law enforcement recovered the pictures that were produced of the infant from Hennis’s phone. Hennis then sent the sexual abuse images of the infant to another individual he was communicating with online.
During their chats, the two defendants discussed in graphic detail kidnapping, raping, killing and dismembering a child between the ages of 4 and 8 years old. Leonard twice during the chat indicated that she didn’t intend to go through with it.
This case was investigated by HSI and the Colorado Springs Police Department’s ICAC Unit, with support provided by the Limon Police Department.
The defendants are being prosecuted by Assistant U.S. Attorney Alecia L. Riewerts, assigned to the Cybercrime and National Security Section of the Colorado U.S. Attorney’s Criminal Division.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation. 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.
Denver OCEDETF Strike Force Takes Down Mexican Drug Trafficking Organization Responsible for Distributing Large Quantities of Cocaine and MethamphetamineRead the Press Release
The DEA-led Denver OCDETF Strike Force, including the Colorado U.S. Attorney’s Office, DEA and the Aurora Police Department, today arrested multiple defendants throughout Colorado and California on various drug related charges, the Justice Department announced. The arrests were the result of a one year investigation into the inner workings of a Mexican led drug trafficking organization that brought drugs into the country through California to Colorado. A federal grand jury in Denver earlier returned an indictment charging 17 defendants for illegal drug trafficking conduct. The indictment contains 45 counts, including an asset forfeiture allegation.
As a result of today’s operation, nine were arrested, with one additional defendant already in custody. Seven are considered fugitives.
The defendants allegedly brought cocaine and methamphetamine into the country from Mexico, transported it through California, into Colorado in vehicles with secret compartments. The drugs were held at three stash locations in Aurora, Colorado, and then brought to the El Rancho Market at 15401 East Mississippi in Aurora to be parceled out and distributed. The El Rancho Market, in addition to sundries food and miscellaneous products, also has a money transfer station, which is how some drug proceeds were distributed from Colorado back to Mexico. Other methods of moving money included smuggling bulk cash in vehicle secret compartments.
The lead defendant, Jose Tapia-Rubio, a/k/a “Don Chequetas”, age 58, a resident of Aurora but from Mexico, has been charged with operating a Continuing Criminal Enterprise (CCE), also known as a “Drug King Pin”. To be charged with CCE, the defendant has to be in a leadership position while being involved with a five or more individuals responsible for a series of drug crimes, and that the drug trafficking continues resulting in substantial income and resources. If convicted on this charge Tapia-Rubio faces not less than 20 years and up to life in federal prison, as well as a $2 million fine.
According to the indictment, between Feb. 1, 2016 through April 15, Tapia-Rubio and the additional 16 defendants knowingly and intentionally conspired to distribute and possess with intent to distribute 5 kilograms or more of cocaine, 50 grams or more of actual methamphetamine, and 500 grams or more of a substance containing a detectable amount of methamphetamine. For this count alone, each defendant faces not less than 10 years, and up to life in prison, as well as a $10 million fine. Each defendant also faces a variety of other drug related charges with different prison penalties.
As part of this investigation and takedown, the government is seeking a $2 million money judgment as well as the seizure of two Aurora properties used as stash houses, one located at 12091 East Arizona Avenue, and the other located at 17994 East Utah Place, both in Aurora.
“We are committed to dismantling and removing the threat posed by these criminal organizations flooding American communities with dangerous narcotics,” said Attorney General Jeff Sessions. “This organization is alleged to have moved large amounts of meth and cocaine from Mexico to Colorado, with devastating impact on communities in their wake. I want to congratulate the outstanding federal, state, and local law enforcement cooperation that resulted in this highly successful operation. Replicating this kind of aggressive law enforcement take down is critical to breaking the backs of these criminal organizations.”
“The stupidest thing a drug trafficker can do is bring his dope business to Colorado,” said Acting U.S. Attorney Bob Troyer. “We have the most sophisticated investigators, prosecutors, and partnerships you will find anywhere, and we don't tolerate the poisoning of our people.”
“This criminal organization distributed cocaine and methamphetamine throughout our communities, making themselves rich from the suffering of others,” stated Special Agent in Charge Barbra Roach of the Drug Enforcement Administration’s Denver Field Division. “DEA takes great pride in identifying and targeting these predatory organizations and works continually to put them out of business, and to put their leaders in jail.”
“This operation was successful due to our positive and established working relationships with our local, state, and federal law enforcement partners,” said Aurora Chief of Police Ken Metz. “This collaborative effort will help Aurora become even safer. Thank you to all the officers involved.”
This case was investigated by the Denver Strike Force, which includes the following agencies: DEA, U.S. Immigration and Customs Enforcement’s Homeland Security Investigation, the FBI, Internal Revenue Service – Criminal Investigation, U.S. Marshal Service, West Metro Drug Task Force, Northern Colorado Drug Task Force, Colorado Attorney General’s Office, Colorado State Patrol and the Denver Police Department.
The defendants are being prosecuted by Assistant U.S. Attorney Stephanie Podolak. The asset forfeiture is being handled by Assistant U.S. Attorney Tonya Andrews.
The charges contained in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
LIST OF DEFENDANTS IN STRIKE FORCE INDICTMENT
- JOSE TAPIA-RUBIO, a.k.a. “Don Chaquetas,” age 58, resident of Aurora, Colorado, from Mexico (naturalized U.S. citizen) ARRESTED TODAY IN AURORA
- JUAN CARLOS MEDINA-SOBERANIS, age 31, resident of Aurora, Colorado, from Califorinia FUGITIVE
- LARA ZAMORA-CRUZ, a.k.a. “Maria Lara-Reyes,” age 63, resident of Northridge, California, from El Salvador (naturalized U.S. citizen) ARRESTED TODAY IN CALIFORNIA
- ERIK PARRA, a.k.a. “Flaco,” age unknown, resident of Metro Denver, Colorado, from California FUGITIVE
- JOSE CHICA-ORELLANA, a.k.a. “Adrian,” age unknown, resident of Aspen, Colorado, from El Salvador IN CUSTODY PRIOR TO TODAY
- SELESTINO HERNANDEZ-MAYO, a.k.a. “Chakichan,” age 45, resident of Aurora, Colorado, from Mexico ARRESTED TODAY IN AURORA
- CLAUDIA LISSETH-LARA, age 41, resident of Granada Hills, California, from El Salvador (naturalized U.S. citizen) ARRESTED TODAY IN CALIFORNIA
- VILMA L. ZAMORA, age 67, resident of Reseda, California, from El Salvador ARRESTED TODAY IN CALIFORNIA
- FREDY PAZ-HERRERA, a.k.a. “Avispero,” age unknown, resident of Breckenridge, California, from Mexico FUGTIVE
- FIRST NAME UNKNOWN, LAST NAME UNKNOWN, a.k.a. “Bancholas,” age unknown, in Mexico FUGITIVE
- RODRIGO MORA-SANCHEZ, a.k.a. “Pelon,” age 49, resident of Aurora, Colorado, from Mexico (naturalized U.S. citizen) ARRESTED TODAY IN AURORA
- OSCAR MORA-CAMPOS, age unknown, resident of Aspen, from Mexico ARRESTED TODAY IN ASPEN
- EDUARDO JIMENEZ-SANCHEZ, age 37, resident of New Castle, Colorado, from Mexico ARRESTED TODAY IN BRECKENRIDGE
- FIRST NAME UNKNOWN, LAST NAME UNKNOWN, a.k.a. “Changuito,” age unknown, in Mexico FUGITIVE
- FIRST NAME UNKNOWN, LAST NAME UNKNOWN, a.k.a. “UM-9584,” age unknown, in Mexico FUGITIVE
- LEOPOLDO RODRIGUEZ-PADILLA, age unknown, resident of California, from Mexico FUGITIVE
- HEBERTO MORA-SANCHEZ, a.k.a. “Chaparro,” age 43, resident of Aurora, Colorado, from Mexico ARRESTED TODAY IN AURORA
Denver OCDETF Strike Force Takes Down Mexican Drug Trafficking Organization Responsible for Distributing Large Quantities of Cocaine and MethamphetamineRead the Press Release
DENVER – The DEA led Denver OCDETF Strike Force, including the Colorado U.S. Attorney’s Office, DEA and the Aurora Police Department, today arrested multiple defendants throughout Colorado and California on various drug related charges, authorities announced. The arrests were the result of a one year investigation into the inner workings of a Mexican led drug trafficking organization that brought drugs into the country through California to Colorado. A federal grand jury in Denver earlier returned an indictment charging 17 defendants for illegal drug trafficking conduct. The indictment contains a total of 45 counts, including an asset forfeiture allegation. Some of the defendants will appear before a U.S. Magistrate Judge in Denver, where they will be read their rights and advised of the charges pending against them. Detention hearings and arraignment will take place next week for those arrested today. Those arrested in Colorado but not presented to the court will appear tomorrow. Those arrested out of state will appear before a U.S. Magistrate Judge at the nearest U.S. District Court location.
As a result of today’s operation, 9 were arrested, with one additional defendant already in custody. Seven are considered fugitives.
The defendants allegedly brought cocaine and methamphetamine into the country from Mexico, transported it through California, into Colorado in vehicles with secret compartments. The drugs were held at three stash locations in Aurora, and then brought to the El Rancho Market at 15401 East Mississippi in Aurora to be parceled out and distributed. The El Rancho Market, in addition to sundries food and miscellaneous products, also has a money transfer station, which is how some drug proceeds were distributed from Colorado back to Mexico. Other methods of moving money included smuggling bulk cash in vehicle secret compartments.
The lead defendant, Jose Tapia-Rubio, a/k/a “Don Chequetas”, age 58, who is a resident of Aurora but from Mexico, has been charged with operating a Continuing Criminal Enterprise (CCE), also known as a “Drug King Pin”. To be charged with CCE, the defendant has to be in a leadership position while being involved with a five or more individuals responsible for a series of drug crimes, and that the drug trafficking continues resulting in substantial income and resources. If convicted on this charge Tapia-Rubio faces not less than 20 years and up to life in federal prison, as well as a $2,000,000 fine.
According to the indictment, between February 1, 2016 through April 15, 2017, Tapia-Rubio and the additional 16 defendants knowingly and intentionally conspired to distribute and possess with intent to distribute 5 kilograms or more of cocaine, 50 grams or more of actual methamphetamine, and 500 grams or more of a substance containing a detectable amount of methamphetamine. For this count alone, each defendant faces not less than 10 years, and up to life in prison, as well as a $10,000,000 fine. Each defendant also faces a variety of other drug related charges with different prison penalties.
As part of this investigation and takedown, the government is seeking a $2,000,000 money judgment as well as the seizure of two Aurora properties used as stash houses, one located at 12091 East Arizona Avenue, and the other located at 17994 East Utah Place, both in Aurora.
"We are committed to dismantling and removing the threat posed by these criminal organizations flooding American communities with dangerous narcotics,” said Attorney General Jeff Sessions. “This organization is alleged to have moved large amounts of meth and cocaine from Mexico to Colorado, with devastating impact on communities in their wake. I want to congratulate the outstanding federal, state, and local law enforcement cooperation that resulted in this highly successful operation. Replicating this kind of aggressive law enforcement take down is critical to breaking the backs of these criminal organizations.”
“The stupidest thing a drug trafficker can do is bring his dope business to Colorado,” said Acting U.S. Attorney Bob Troyer. “We have the most sophisticated investigators, prosecutors, and partnerships you will find anywhere, and we don't tolerate the poisoning of our people.”
“This criminal organization distributed cocaine and methamphetamine throughout our communities, making themselves rich from the suffering of others,” stated Special Agent in Charge Barbra Roach of the Drug Enforcement Administration’s Denver Field Division. “DEA takes great pride in identifying and targeting these predatory organizations and works continually to put them out of business, and to put their leaders in jail.”
“This operation was successful due to our positive and established working relationships with our local, state, and federal law enforcement partners,” said Aurora Chief of Police Nick Metz. “This collaborative effort will help Aurora become even safer. Thank you to all the officers involved.”
This case was investigated by the Denver Strike Force, which includes the following agencies: DEA, U.S. Immigration and Customs Enforcement’s Homeland Security Investigation, the FBI, Internal Revenue Service – Criminal Investigation, U.S. Marshal Service, West Metro Drug Task Force, Northern Colorado Drug Task Force, Colorado Attorney General’s Office, Colorado State Patrol and the Denver Police Department.
The defendants are being prosecuted by Assistant U.S. Attorney Stephanie Podolak. The asset forfeiture is being handled by Assistant U.S. Attorney Tonya Andrews.
The charges contained in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
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LIST OF DEFENDANTS IN STRIKE FORCE INDICTMENT
JOSE TAPIA-RUBIO, a.k.a. “Don Chaquetas,” age 58, resident of Aurora, Colorado, from Mexico (naturalized U.S. citizen) ARRESTED TODAY IN AURORA
JUAN CARLOS MEDINA-SOBERANIS, age 31, resident of Aurora, Colorado, from California FUGITIVE
LARA ZAMORA-CRUZ, a.k.a. “Maria Lara-Reyes,” age 63, resident of Northridge, California, from El Salvador (naturalized U.S. citizen) ARRESTED TODAY IN CALIFORNIA
ERIK PARRA, a.k.a. “Flaco,” age unknown, resident of Metro Denver, Colorado, from California FUGITIVE
JOSE CHICA-ORELLANA, a.k.a. “Adrian,” age unknown, resident of Aspen, Colorado, from El Salvador IN CUSTODY PRIOR TO TODAY
SELESTINO HERNANDEZ-MAYO, a.k.a. “Chakichan,” age 45, resident of Aurora, Colorado, from Mexico ARRESTED TODAY IN AURORA
CLAUDIA LISSETH-LARA, age 41, resident of Granada Hills, California, from El Salvador (naturalized U.S. citizen) ARRESTED TODAY IN CALIFORNIA
VILMA L. ZAMORA, age 67, resident of Reseda, California, from El Salvador ARRESTED TODAY IN CALIFORNIA
FREDY PAZ-HERRERA, a.k.a. “Avispero,” age unknown, resident of Breckenridge, California, from Mexico FUGTIVE
FIRST NAME UNKNOWN, LAST NAME UNKNOWN, a.k.a. “Bancholas,” age unknown, in Mexico FUGITIVE
RODRIGO MORA-SANCHEZ, a.k.a. “Pelon,” age 49, resident of Aurora, Colorado, from Mexico (naturalized U.S. citizen) ARRESTED TODAY IN AURORA
OSCAR MORA-CAMPOS, age unknown, resident of Aspen, from Mexico ARRESTED TODAY IN ASPEN
EDUARDO JIMENEZ-SANCHEZ, age 37, resident of New Castle, Colorado, from Mexico ARRESTED TODAY IN BRECKENRIDGE
FIRST NAME UNKNOWN, LAST NAME UNKNOWN, a.k.a. “Changuito,” age unknown, in Mexico FUGITIVE
FIRST NAME UNKNOWN, LAST NAME UNKNOWN, a.k.a. “UM-9584,” age unknown, in Mexico FUGITIVE
LEOPOLDO RODRIGUEZ-PADILLA, age unknown, resident of California, from Mexico FUGITIVE
HEBERTO MORA-SANCHEZ, a.k.a. “Chaparro,” age 43, resident of Aurora, Colorado, from Mexico ARRESTED TODAY IN AURORA
Parker CPA Pleads Guilty to Wire Fraud and Aiding and Assisting in the Preparation of False Tax ReturnsRead the Press Release
DENVER – Don R. Iley of Parker, Colorado, pled guilty today before U.S. District Court Judge Christine M. Arguello to wire fraud and aiding and assisting in the preparation of false tax returns, the United States Attorney’s Office and IRS-Criminal Investigation announced. Iley was indicted by a federal grand jury in Denver on August 24, 2016, and is scheduled to be sentenced by Judge Arguello on July 13, 2017 at 3:00 p.m.
According to the indictment and plea agreement, from January 2009 through December 2015, Iley was the owner and operator of Iley and Associates (I&A), an accounting and tax preparation firm which provided services to more than 140 businesses in Colorado. For some of I&A clients, payroll accounting and payroll tax services were provided. The payroll tax services included the preparation of Forms 941, Employer’s Quarterly Federal Tax Returns, and then withdrawing and paying the required payroll taxes to the IRS on behalf of the clients.
Iley caused his staff to collect the necessary information from payroll clients to prepare Quarterly Federal Tax Returns. Iley also caused his staff to prepare an “ACH Deduction Report”, which identified the payroll client’s “Total Federal Payroll Tax liability” for each pay period. The ACH Deduction report also identified other amounts to be withdrawn from each payroll client’s bank account, such as the federal and state unemployment tax. The funds withdrawn from the client’s bank accounts were transferred to a bank account controlled solely by Iley.
Iley would then cause his employees to send the clients a cover letter falsely representing the Form 941 included in the letter was filed with the IRS and that Iley had paid or would pay the taxes. Instead, Iley retained the payroll tax monies from his payroll clients for whom he was responsible for paying such taxes. To facilitate his scheme, Iley prepared and signed on behalf of Iley & Associates false Form 941 tax returns claiming the payroll tax client had no payroll taxes due and owing. Iley then mailed the false tax returns to the IRS.
Iley kept the money he received that was intended for payroll taxes and used it for his own purposes. Iley used some of the money to, among other things, make $900,000 in accelerated principal payments for Iley’s home, pay for the design, construction, landscaping and furnishing of Iley’s residence, and make investments in businesses and retirement accounts. By Iley’s own estimate, he stole at least $11 million dollars during this time frame.
Wire fraud carries a penalty of not more than 20 years in federal prison, and a fine of up to $250,000 or twice the amount of gain or loss, whichever is greater. Aiding and assisting in the preparation of false tax returns carries a penalty of not more than 3 years in federal prison, and a fine of up to $250,000 or twice the amount of the gain or loss, whichever is greater.
This case is being investigated by the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant United States Attorney J. Chris Larson.
Brighton Man Indicted for Impeding the IRS and Social Security ViolationsRead the Press Release
DENVER – Robert Hybertson, age 59, of Brighton, Colorado charged with violations of IRS and Social Security laws appeared before a U.S. Magistrate Judge today for arraignment and a detention hearing. The defendant was ordered released on bond by U.S. Magistrate Judge Scott T. Varholak. He first appeared in court on April 13, 2017 for his initial appearance. He was indicted by a federal grand jury on April 10, 2017 for corrupt endeavor to obstruct or impede due administration of the Internal Revenue Laws, failure to file federal income tax returns, concealment, and false statement in determining benefits, announced Acting United States Attorney Bob Troyer, IRS Criminal Investigation Special Agent in Charge Steven Osborne and Social Security Administration Office of Inspection General Special Agent in Charge Wilbert M. Craig.
According to the indictment, from early 2006 through until early 2017, Hybertson was the owner and operator of Black Hills Rig Heaters (“BHRH”), a South Dakota Business trust that does business in Colorado and elsewhere. In addition, during a period of time relevant to the indictment, Hybertson worked as a sales representative for Therm Dynamics, a company that manufactures and sells heaters for use in oil fields.
As part of a corrupt endeavor to impede the due administration of the IRS, beginning in early 2006 and continuing through 2014, Hybertson did not file federal income tax returns for himself or for BHRH. Further, he provided third parties with invalid or incorrect Employer Identification Numbers (EIN) for BHRH. Hybertson sometimes listed these invalid or incorrect EINs on bogus or inapplicable tax forms. These forms included a bogus W9 form titled, “Request for Nontaxpayer Identification Number and Certification,” that contained language saying it was provided under duress, as well as an inapplicable W-8BEN “Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals)” form on which Hybertson listed his “country” of residence as South Dakota. In 2010, the IRS audited Hybertson for the tax year 2006 and determined that he owed approximately $38,000 in taxes (not including penalties and interest). Hybertson refused to pay the tax assessment. Instead, on multiple occasions, Hybertson sent correspondence to the IRS or other government officials stating that he was not required to report domestic income on Form 1040 and/or threatening criminal prosecution of IRS employees attempting to collect taxes.
In or about April 1999, Hybertson began receiving Social Security Benefits based upon an application he submitted indicating that he was unable to work due to a disability. Disability is based on one’s inability to work, and the disabled beneficiary has a duty to report changes in his medical condition, if he returns to the workforce, or if his physician advises that he is able to return to work. Beginning in about January 2010, Hybertson concealed his self-employment and his employment with Therm Dynamics in order to keep receiving disability benefits. In 2013, Hybertson completed a Social Security form indicating that he had not been self-employed or worked for someone since February 2011. Hybertson continued receiving disability payments to which he was not entitled through February 2017.
Hybertson is charged with one count of corrupt endeavor to obstruct or impede the due administration of the Internal Revenue Laws, four counts of failure to file a return, one count of concealment related to his receipt of Social Security benefits, and one count of false statements in determining benefits. The obstruction charge carries a penalty of not more than three years in prison, and a fine of up to $250,000. Failure to file a return carries a penalty of not more than one year in prison and a fine of up to $100,000 for each count. Concealment carries a penalty of five years in prison, and a fine of up to $250,000. False statement in determining benefits carries a penalty of not more than five years in prison, and a fine of up to $250,000.
This case is being investigated by the Internal Revenue Service – Criminal Investigation and Social Security Administration – Office of Inspection General. This case is being prosecuted by Assistant United States Attorney Rebecca Weber and First Assistant U.S. Attorney Matthew Kirsch.
Federal Inmate Found Guilty at Trial of Assault of Other Inmates and Possession of Contraband in PrisonRead the Press Release
DENVER – A jury today found Daniel Thomas, an inmate in the U.S. Bureau of Prisons system, guilty of Assault with a Dangerous Weapon, Possession of Contraband in Prison, and Assault Resulting in Serious Bodily Injury following a three-day trial before U.S. District Court Judge Raymond P. Moore, the U.S. Attorney’s Office announced. The jury deliberated for approximately 90 minutes before returning its guilty verdicts.
Thomas was first charged by Criminal Complaint on January 11, 2016. He was indicted by a federal grand jury in Denver on February 10, 2016. He was convicted yesterday, April 12, 2017.
According to public documents and evidence presented during the trial, in June 2015 the defendant, while housed at the United States Penitentiary in Florence, Colorado, attacked another inmate from behind at another inmate and stabbed him in the cheek and torso with a homemade knife, otherwise known as a shank. While housed at the Federal Correctional Facility in Englewood, Colorado in September 2016, Thomas attacked another inmate from behind, throwing him down concrete stairs, and then stomping on him. That inmate suffered serious bodily injury as a result.
Thomas faces not more than 10 years in prison for Assault with a Dangerous Weapon. He faces not more than 5 years in prison for Possession of Contraband in Prison, and not more than 10 years in prison for Assault Resulting in Serious Bodily Injury. Each of the three counts also carries a fine of up to $250,000.
Acting U.S. Attorney Bob Troyer wanted to recognize the BOP and FBI for their investigation of this matter, as well as Assistant U.S. Attorneys Judith Smith and Edwin Garreth Winstead for their prosecution of the defendant.