District of Idaho
Press releases recorded for this federal judicial district.
Twenty People Indicted for Conspiring to Traffic Meth in Southwest IdahoRead the Press Release
BOISE – Lena Kettle, 46, of Caldwell, Idaho, Heidi Aguila, 34, of Middleton, Idaho, and Kenneth Jones, 47, of Elverta, California, appeared in federal court yesterday on an 89-count federal indictment charging them and 17 others with conspiracy to distribute methamphetamine; possession with intent to distribute methamphetamine; interstate transportation in aid of racketeering; and use of a communication device in drug trafficking, U.S. Attorney Wendy J. Olson announced today. The indictment was returned on May 16, 2013, and was unsealed by the court on May 22.
In addition to Kettle, Aguila and Jones, the defendants named in the federal indictment are:
- Jason Lee Holmberg, 38, of Middleton, Idaho
- Patrick Siemsen, 55, of Nampa, Idaho
- Ute Hornak, 47, of Nampa, Idaho
- Doreen Obrien, 44, of Caldwell, Idaho
- Jerry Holmberg, 64, of Marsing, Idaho
- John Odenwalt, 33, of Nampa, Idaho
- Randi Seferos, 24, of Boise, Idaho
- Seanna Holmberg, 26, of Caldwell, Idaho
- Crystal Clark, 47, of Fruitland, Idaho
- Steven Richard Richard, 41, of Boise, Idaho
- Robbie Gallegos, 42, of Boise, Idaho
- Adrea Smith, 38, of LaGrande, Oregon
- Randy Beal, 58, of Caldwell, Idaho
- Cynthia Prado, 31, of Boise, Idaho
- Andrew Polney, 51, of Boise, Idaho
- Henry Horne, 65, of Boise, Idaho
- David Echevarria, 48, of Boise, Idaho
Fourteen of the defendants have been arraigned in federal court since the indictment was returned. A trial date has been set for July 2, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise. Defendants Jason Holmberg, Siemsen, Obrien, Jerry Holberg and David Echevarria have not yet made their initial appearances, and no dates have been set.
The indictment alleges that between May 2012 and April 18, 2013, the defendants conspired together to distribute 500 grams or more of a mixture and substance containing detectable amounts of methamphetamine. The indictment alleges that on various dates beginning in March 2013, one or more of the defendants traveled at various times between Idaho and California with the intent to distribute the proceeds of the unlawful activity. In furtherance of the conspiracy, the indictment alleges that one or more of the defendants used communication facilities—a telephone—to facilitate and commit the offenses.
The indictment is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Drug Enforcement Administration, in conjunction with the Nampa Police Department and the Boise Police Department. Other federal agencies participating in the OCDETF program include the Bureau of Alcohol, Tobacco, Firearms and Explosives, Bureau of Land Management, Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Pocatello Woman Sentenced to Federal Prison for Trafficking MethRead the Press Release
POCATELLO – Marilyn N. Leones, 42, of Pocatello, was sentenced yesterday to 25 months in prison followed by three years of supervised release for possession with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. Leones pleaded guilty to the charge on December 18, 2012.
According to court documents, Leones admitted that on various dates, including October 31, 2011, she distributed in total 50 grams of a mixture or substance containing methamphetamine.
Four co-defendants were sentenced in April 2013 to serve a combined total of 271 months in prison. Juan Aguilar, a Mexican national, and Juan Mendoza, of Menan, Idaho, were sentenced for possession with intent to distribute in excess of 50 grams of methamphetamine. Douglas I. McAdam, of Pocatello, was sentenced to 33 months for possession with intent to distribute in excess of five grams of methamphetamine. Jose Rios-Jimenez, a Mexican national, was sentenced to 16 months – time served – for possession of a firearm by a prohibited person and illegal entry of a removed alien.
Co-conspirator Raymond Camacho, a/k/a Jesus Mendoza Nunez, 58, a Mexican national, pleaded guilty on January 24 to possession with intent to distribute in excess of 50 grams of methamphetamine. A sentencing date has not been set.
The case was investigated by Idaho State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Chubbuck Police Department.
Nez Perce Tribe Member Sentenced in Federal Court for BurglaryRead the Press Release
COEUR D'ALENE – Stefan Hiebert, 20, of Lewiston, Idaho, an enrolled member of the Nez Perce Tribe, was sentenced today in United States District Court to six months in prison followed by three years of supervised release for burglary, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge ordered Hiebert to serve the first six months of supervised release on home detention and pay $10,400 in restitution to the victim. He pleaded guilty to the charge on February 5, 2013.
According to the plea agreement, on two separate occasions in March 2012, Hiebert burglarized a barn located on the Nez Perce Indian Reservation, with the intent to steal elk and deer antlers and sheds he knew to be inside. According to court documents, Hiebert stole approximately 30 antlers and sheds with an estimated value of $10,000.
The case was investigated by the Federal Bureau of Investigation.
Lapwai Man Sentenced for Stealing Electric GeneratorsRead the Press Release
COEUR D'ALENE – Michael Eli Wilson, Jr., 23, of Lapwai, Idaho, was sentenced today in federal court in Coeur d’Alene to 40 days in jail followed by 180 days of in-patient drug treatment, for theft exceeding $1,000, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Wilson to serve three years of supervised release. Wilson, an enrolled member of the Nez Perce Indian Tribe, pleaded guilty to the charge on December 11.
According to the plea agreement, Wilson admitted that between April 26 and June 1, 2012, he entered the property of Gem Electric, a small business located in Lapwai, for the purpose of stealing electric generators. Wilson admitted that he sold the generators as scrap metal at Sutton Salvage in Lewiston, Idaho. Sutton Salvage provided records to investigators, which confirmed that Wilson had scrapped electric generators on a number of occasions between April 26 and May 30, 2012. On June 1, employees of Sutton Salvage contacted police after Wilson attempted to scrap additional generators. Wilson absconded before police arrived, but left the generators at the site. The property owner confirmed he was the rightful owner of the generators. Sutton Salvage employees identified Wilson from a photograph lineup. The generators had a value exceeding $1,000.
The case was investigated by the Federal Bureau of Investigation, Nez Perce County Sheriff’s Office, and Nez Perce Tribal Police.
Guatamalan National Pleads Guilty to Federal Gun ChargeRead the Press Release
POCATELLO – Jose Cruz-Lopez, 44, a citizen of Guatamala who is illegally in the United States, pleaded guilty today to the federal indictment charging him with one count of possession of a firearm by a prohibited person, U.S. Attorney Wendy J. Olson announced. Cruz-Lopez was indicted by a federal grand jury in Pocatello on January 23, 2013.
According to court documents, on August 19, 2012, Fort Hall Police and Bingham County Sheriff’s deputies were called to the defendant’s residence because of a report that Cruz-Lopez had threatened his wife with a gun. A .22 bolt action rifle was found in Cruz-Lopez’s bedroom. In court today, Cruz-Lopez admitted to buying and possessing the firearm. The defendant is prohibited from possessing firearms because he is an alien illegally and unlawfully in the United States.
The charge is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release. The government is seeking forfeiture of the firearm the defendant illegally possessed.
Sentencing is set for August 12, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Bingham County Sheriff’s Office, and the Fort Hall Police Department.
Fort Hall Man Sentenced for Assault with Dangerous WeaponRead the Press Release
Defendant Admitted Shooting at Vehicle with Person Inside
POCATELLO – Adan Diaz, 21, of Fort Hall, Idaho, was sentenced today in United States District Court to 24 months in prison for assault with a dangerous weapon, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Diaz to serve three years of supervised release following his prison term and pay $250 in restitution. The judge considered that Diaz had already served six months in the Fort Hall jail on this charge before imposing the 24-month sentence.
On February 27, 2013, Diaz pleaded guilty to the indictment filed on September 25, 2012, and admitted that on January 28, 2012, he pointed a gun at an individual who was sitting in a vehicle near a Fort Hall residence. According to court documents, Diaz fired a shot that missed the individual, but struck a window in the vehicle. Diaz later admitted in an interview with Fort Hall Police that he intended to injure the victim when he pointed the gun at him. Police recovered the gun, a Keltec .380 caliber handgun.
The case was investigated by the Fort Hall Police Department and the Federal Bureau of Investigation.
Mexican National Sentenced to 148 Months for Distributing MethRead the Press Release
Seven Co-Defendants Sentenced Earlier in Treasure Valley Drug Conspiracy
BOISE – Nelson Fernando Garcia-Soto, 39, a Mexican national formerly living in Boise, Idaho, was sentenced today to 148 months in prison for possession with intent to distribute 50 grams or more of actual methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Garcia-Soto to serve five years of supervised release. He pleaded guilty to the charge on November 13, 2012.
According to the plea agreement, on December 16, 2011, law enforcement officers recovered nine pounds of methamphetamine from a backpack in a vehicle Garcia-Soto was driving. Garcia-Soto subsequently admitted that earlier that evening he had distributed two pounds of methamphetamine to co-defendant Alfredo Dominguez-Villareal.
Seven co-defendants sentenced earlier include Alfredo Dominguez-Villareal, a/k/a Alfredo Vasquez-Dominguez, a Mexican national, to 150 months in prison; Jimenez Valencia a/k/a Jorge Jimenez, a Mexican national, to 57 months; Juan Carlos Arredondo-Sicairos a/k/a Victor Kalil Medina-Feliciano, a Mexican national, to 120 months; Delia Garcia-Pineda, a Mexican national, to 37 months; Tanna Spencer, of Parma, Idaho, to 15 months; Hector Morales, of Delano, California, to six months; and Cynthia Casillas, also of Delano, to three years’ probation.
Two remaining defendants, Alonso Martinez, 26, of Earlimart, California, and Samuel Chavez, 32, of New Meadows, Idaho, are scheduled to be sentenced on June 4 and June 24, respectively.
The case was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Drug Enforcement Administration in conjunction with the Boise Police Department, Nampa Police Department, and the Ada County Sheriff's Office.
The OCDETF program is a federal multi agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. Federal task force members include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), Internal Revenue Service-Criminal Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and U.S. Marshals Service.
Final Guilty Plea in Aryan Knights InvestigationRead the Press Release
BOISE – Joshua Nall, 31, of Boise, pleaded guilty today in United States District Court to unlawfully possessing a firearm, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, Nall admitted that on April 13, 2012, he possessed a Glock .40 pistol, which he provided to a confidential informant. Nall was prohibited from possessing the pistol because he was previously convicted of the felony crime of unlawful possession of a firearm in 2008.
The charge is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Nall is set for sentencing on August 20, 2013, before the Chief U.S. District Judge B. Lynn Winmill, at the federal courthouse in Boise.
Nall’s case is part of a larger investigation involving the Aryan Knights gang, in which 23 people were charged with drug trafficking and firearms violations. Nall is the 23rd person to plead guilty. Fifteen of the 23 people have already been sentenced while the others are awaiting sentencing. The charges are a result of a long-term investigation by the Treasure Valley Metro Violent Crimes Task Force. The investigation began when the task force focused on illegal drug distribution by the “Aryan Knights,” a gang active in prison and on the streets throughout Idaho. Through the investigation, law enforcement agents identified Aryan Knights gang members who were trafficking methamphetamine, as well as associates of the gang who were the source of that methamphetamine.
The Treasure Valley Metro Violent Crimes Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Boise Police Department, Ada County Sheriff’s Office, Caldwell Police Department, Nampa Police Department, Meridian Police Department, Canyon County Sheriff’s Office, and the Idaho Department of Corrections. The Organized Crime and Drug Enforcement Task Force (OCDETF) also contributed to the investigation, including the cooperative law enforcement efforts of the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service.
Nall’s case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Idaho Contractor Indicted on Federal Charges of Conspiracy, Money Laundering, Obstruction of Justice, Wire, and Tax FraudRead the Press Release
Government Seeking Forfeiture of Over $9 Million from Treasure Valley Woman
BOISE – U.S. Attorney Wendy J. Olson and Assistant Attorney General for the Tax Division Kathryn Keneally announced today that a federal grand jury in Boise returned a 42-page Superseding Indictment this week that charges Elaine Martin, 66, of Meridian, Idaho, with making false statements, conspiracy, wire fraud, mail fraud, and obstruction of justice. It also seeks forfeiture of over $9 million as the proceeds of the alleged crimes. Darrell Swigert, 67, of Boise, Idaho, is charged with obstructing and conspiring to obstruct a federal criminal proceeding.
Martin was the president and majority stockholder of Marcon, Inc., a Treasure Valley construction company. Swigert was a minority shareholder. An earlier indictment that charged only Martin, filed on March 13, 2013, was unsealed by the court today. A court date has not been set.
The Superseding Indictment charges Martin with four counts of making and subscribing a false tax return, two counts of conspiracy, five counts of wire fraud, one count of making a false statement, five counts of mail fraud, four counts of interstate transportation of property taken by fraud, one count of conspiracy to commit money laundering, one count of conspiracy to obstruct justice, and one count of obstructing justice.
The Superseding Indictment alleges that as early as 2000, and continuing through January 2012, Martin took steps to lower her personal net worth, such as acquiring, holding and transferring assets into the names of nominees. According to the Superseding Indictment, this and other alleged conduct enabled Martin to successfully apply for and be admitted into the U.S. Small Business Administration (SBA) 8(a) Program. The Superseding Indictment alleges that Martin’s actions also allowed Marcon to fraudulently maintain its certification with the U.S. Department of Transportation’s Disadvantaged Business Enterprise (DBE) Program, in the states of Idaho and Utah. The SBA 8(a) Program and DBE Program are designed to help economically and socially disadvantaged business compete in the marketplace. Both programs require applicants to show that their personal net worth is below a certain statutory threshold. The Superseding Indictment alleges that Martin remained in control of her assets while appearing to meet the personal net worth requirements of both programs.
According to the Superseding Indictment, Martin also caused false and fraudulent tax returns to be filed for herself and Marcon, Inc., which did not report all of the income received by Martin or the company. These false returns were allegedly submitted in support of Marcon’s applications to the SBA 8(a) Program and DBE Programs for Idaho and Utah, along with allegedly false personal financial statements. According to the Superseding Indictment, Martin caused the financial books and records for Marcon to be false by purposefully omitting, deleting, altering or mis-categorizing entries. The Superseding Indictment further alleges that Martin concealed her role or relationship in other business entities that dealt with Marcon, Inc.
While a participant in the SBA 8(a) Program, the Superseding Indictment alleges that Martin sought to conceal withdrawals of capital that exceeded the SBA 8(a) Program limits by executing loans with her family members and with entities that she controlled.
The Superseding Indictment charges that Marcon received more than $2.5 million in government contracts based on the company’s fraudulently obtained SBA 8(a) status. The Superseding Indictment further alleges that Marcon received more than $6 million in government contracts based on the company’s fraudulently obtained DBE status in the states of Idaho and Utah.
Both Martin and Swigert are charged with conspiracy to obstruct justice by fabricating documents and making false statements that sought to conceal the true nature, source, and extent of property belonging to Martin. According to the Superseding Indictment, Martin and Swigert fabricated a loan document and document that purported to memorialize a gift in order to impede a civil audit by the IRS and criminal investigation by the IRS and U.S. Attorney’s Office. Swigert is also charged with a second count of obstruction of justice based on allegedly false statements that he made to conceal the nature, source, and extent of property belonging to Martin.
The government seeks forfeiture of $9,237,722.10, which represents the proceeds that Martin obtained as a result of the alleged offenses.
“Those who seek federal contracts and seek to benefit from federal funds have a solemn obligation to deal honestly and openly with the federal government,” said Olson. “This office will continue to work side-by-side with its federal program partners to ensure that fraud is thoroughly investigated and, where appropriate, vigorously prosecuted.”
“The 8(a) Business Development Program is designed to help small, disadvantaged businesses compete in the marketplace and offers significant benefits to eligible small businesses,” said Inspector General Peggy E. Gustafson of the Small Business Administration. “Preferences for federal contract awards must not be given to persons who lie in order to claim eligibility. I want to thank the U.S. Attorney's Office and our law enforcement partners for their commitment to seek justice on behalf of the American taxpayer.”
“Those who commit tax fraud and fraudulently benefit from government programs are cheating honest taxpayers. IRS-Criminal Investigations will work diligently with our law enforcement partners to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice,” said Stephen Boyd, IRS Criminal Investigation Special Agent-in-Charge for the State of Idaho.
“The Disadvantaged Business Enterprise (DBE) Program is a business assistance program of the U.S. Department of Transportation (DOT) which helps economically and socially disadvantaged small businesses compete in the marketplace. DBE fraud harms the integrity of the program and adversely impacts law-abiding, small business contractors trying to compete on a level playing field,” said William Swallow, regional Special Agent-in-Charge of the DOT’s Office of Inspector General. “Working with our Federal, State, and local law enforcement and prosecutorial colleagues, we will vigorously pursue those who violate the law, and expose and shut down fraud schemes that adversely affect public trust and DOT-assisted highway programs.”
Each charge of making and subscribing a false return, as charged in counts one through four, is punishable by up to three years in prison, a maximum fine of $250,000, and up to three years of supervised release. The charge of conspiracy, as charged in counts five, twelve, and23, is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release. Each count of wire fraud, as charged in counts six through ten, is punishable by up to 20 years in prison, a maximum fine of $250,000, and up to five years of supervised release. The charge of making a false statement, as charged in count 11, is punishable by up to two years in prison, a maximum fine of $250,000, and up to one year of supervised release. Each charge of mail fraud, as charged in counts 13 through 16, is punishable by up to 20 years in prison, a maximum fine of $250,000, and up to five years of supervised release. Each charge of interstate transportation of property taken by fraud, as charged in counts 18 through 21, is punishable by up to 10 years in prison, a maximum fine of $250,000, and up to three years of supervised release. The charge of conspiracy to commit money laundering, as charged in count 22 is punishable by up to 20 years in prison, a maximum fine of $250,000, and up to three years of supervised release. The charges of conspiracy to obstruct justice, count 23, and obstruction of justice, counts 24 and 25, are each punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release.
The case is being investigated by the Internal Revenue Service-Criminal Investigation, the Federal Bureau of Investigation, the Office of Inspector General for the U.S. Small Business Administration, and the Office of Inspector General for the U.S. Department of Transportation.
Today's announcement is part of an effort by President Obama's Financial Fraud Enforcement Task Force (FFETF), created in November 2009, to combat financial fraud crimes by waging aggressive, coordinated and proactive investigations and prosecutions. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, the task force is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
DBSI Principals Plead Not Guilty to Securities Fraud, Wire Fraud, Mail Fraud, Bank Fraud and ConspiracyRead the Press Release
BOISE – Mark A. Ellison, 64, of Boise, Idaho; David D. Swenson, 35, of Boise, Idaho; and Jeremy Snow Swenson, 40, of Meridian, Idaho, appeared today in United States District Court and entered pleas of not guilty on a Superseding Indictment charging them with conspiracy to commit securities fraud, wire fraud, mail fraud, and interstate transportation of stolen property stemming from their involvement in the DBSI Group of Companies (DBSI), U.S. Attorney for the District of Idaho Wendy J. Olson announced. The case was set for a jury trial to commence on June 24, 2013, before Chief United States District Judge B. Lynn Winmill.
Mark Ellison founded DBSI along with Douglas Swenson who is also charged and previously pled not guilty to the indictment. Ellison served as DBSI’s general counsel during the period charged in the indictment. David D. Swenson and Jeremy Snow Swenson were assistant secretaries for DBSI. Founded in 1979 and headquartered in Meridian, Idaho, DBSI was essentially a conglomerate of real estate and non-real estate companies, including DBSI Housing and DBSI Securities.
According to the Superseding Indictment, from January 2007 through November 2008, the defendants publicly represented that DBSI was a profitable company and had a net worth in excess of $105 million. The indictment further alleges that the defendants knew and believed that, contrary to the disclosures made to investors and their own DBSI employees involved with the marketing and selling of DBSI investments, DBSI’s real estate and non-real estate business activities were universally unprofitable; DBSI’s much-touted Master Lease investment product was losing approximately $3 million dollars a month; and DBSI was relying on new investor funds, including investor money that DBSI represented would only be used in particular circumstances, to continue operations and pay returns to other DBSI investors. The indictment alleges that the conspiracy continued until DBSI filed for bankruptcy in November 2008. The 89 count Superseding Indictment also charges all of the defendants with 44 counts of securities fraud, 34 counts of wire fraud, six counts of interstate transportation of stolen property taken by fraud, and two counts of bank fraud. The defendants are also charged with conspiracy to commit money laundering.
Based on the conspiracy and fraud charges, the Superseding Indictment seeks forfeiture of properties and assets totaling $169 million.
The conspiracy to commit securities fraud, wire fraud, mail fraud and interstate transportation of stolen property charge is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release. The conspiracy to commit money laundering charge is punishable by up to 20 years in prison, a maximum fine of $250,000, and up to five years of supervised release. The securities fraud charges are each punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release. The wire fraud charges are each punishable by up to 20 years in prison, a maximum fine of $250,000, and up to five years of supervised release. The bank fraud charges are each punishable by up to 30 years in prison, a maximum fine of $1 million, and up to five years of supervised release. The interstate transportation of stolen property charges are each punishable by up to ten years in prison, a maximum fine of $250,000, and up to one year of supervised release. The false statement charge is punishable by up to two years in prison, a maximum fine of $250,000, and up to one year of supervised release.
The case was investigated by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation. The case is being prosecuted by Assistants United States Attorney George Breitsameter and Anthony Hall, and Department of Justice Tax Division Trial Attorney Mark Williams.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Arizona Man Indicted in Boise Federal Court on Twenty-six Counts of Wire FraudRead the Press Release
Allegedly Embezzled Approximately $449,643 from Click Sales, Inc.
BOISE – Christopher Myers, 37, of Cave Creek, Arizona, was indicted today by a federal grand jury in Boise on 26 counts of wire fraud, U.S. Attorney Wendy J. Olson announced. An initial court appearance is set for May 20 at 10:00 a.m. MDT, before U.S. Magistrate Judge Larry M. Boyle at the federal courthouse in Boise.
According to the indictment, Myers was employed as the comptroller for Click Sales, Inc., from 2006 through November 2011. Click Sales, Inc. operated a Boise-based internet business that facilitated payments between retailers and consumers. It received payments from consumers for the purchase price of goods and services, kept a portion of the purchase price as commission, and remitted the remainder to the retailers by checks and wire transfers. Some of Click Sales’ retailer-clients failed to timely cash these checks. As the comptroller, Myers was responsible for maintaining a spreadsheet listing these “issued but uncashed” checks.
The indictment alleges that beginning in August 2008, Myers began wire transferring funds from the company’s bank account to his personal bank accounts. These funds belonged to Click Sales and corresponded to the funds set aside for “issued but uncashed” checks to retailer-clients. In total, Myers allegedly wired approximately $449,643 of Click Sales’ funds to his personal bank accounts. According to the indictment, he used these funds to make personal expenditures, including mortgage payments, and to subsidize his personal investment and retirement accounts.
Each count of wire fraud is punishable by up to 20 years in prison, a maximum fine of $250,000 or twice the gain or loss from the offense, and up to three years of supervised release.
The case was investigated by the Boise Police Department and the Federal Bureau of Investigation.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Federal Grand Jury Indicts Five for Conspiracy, Smuggling and Money Laundering in “Spice” CaseRead the Press Release
BOISE – A federal grand jury in Boise on Tuesday indicted five Boise area residents on four counts of conspiracy to distribute a controlled substance analogue; conspiracy to smuggle goods into the United States; conspiracy to sell and transport drug paraphernalia; and conspiracy to launder money, U.S. Attorney Wendy J. Olson announced. The indictment was unsealed by the court on Wednesday.
The five defendants named in the indictment are:
- Mark A. Ciccarello, 35, of , Meridian, Idaho
- Robert A. Eoff, 30, of Boise, Idaho
- Troy L. Palmer, 43, of Boise, Idaho
- William B. Mabry, 45, of Boise, Idaho
- Holly F. Ciccarello, 39, of Meridian, Idaho
Mark Ciccarello made his initial appearance in federal court yesterday. Eoff, Palmer, Mabry and Holly Ciccarello appeared this morning. Trial for all defendants is set for July 2, 2013, before U.S. District Judge Edward J. Lodge.
The indictment alleges that between March 1, 2011 and July 9, 2012, within the states of Idaho, Alaska, California, Washington, and Wisconsin, the defendants conspired to purchase and import from China chemicals known as JWH018, AM2201, UR-144, and XLR11, which they used to treat innocuous plant matter to make “spice”—a synthetic cannabinoid similar to substances listed in Schedule I of the Controlled Substances Act. The indictment further alleges that the defendants conspired to sell and transport drug paraphernalia for sale, and that they conspired to launder money illegally obtained through their drug, importation and paraphernalia violations. The government is seeking forfeiture of proceeds derived from the alleged criminal activities.
A conviction for conspiracy to distribute a controlled substance analogue, as charged in Count One, is punishable by up to 20 years in prison, a maximum fine of $1 million, and up to three years of supervised release. Conspiracy to smuggle goods into the United States, as charged in Count Two, is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release. Conspiracy to sell and transport drug paraphernalia for sale, as charged in Count Three, is punishable by up to three years in prison, a maximum fine of $250,000, and up to one year of supervised release. Conspiracy to launder money, as charged in Count Four, is punishable by up to 10 years in prison, a maximum fine of $250,000, and up to three years of supervised release.
“This indictment demonstrates that Federal, state and local law enforcement in Idaho will vigorously investigate and prosecute those who unlawfully distribute dangerous synthetic substances in our communities,” said Olson. “Although we don't yet know the full toll that these substances that mimic cannabis have taken on users, we do know that emergency room workers, parents and law enforcement officers have terrifying stories of medically dangerous and sometimes deadly reactions. I commend all of the agencies and prosecutors who spent countless hours bringing the investigation to this point.”
“This investigation has taken out a major player in the synthetic drug industry who was operating coast to coast,” said DEA Special Agent in Charge Matthew G. Barnes. “Criminal drug organizations prey on our youth to line their pockets with millions of dollars in drug proceeds. This emerging industry poses a significant threat to our communities and regardless of how they are marketed, we will continue with our law enforcement partners to aggressively pursue them.”
The indictment is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the Drug Enforcement Administration (DEA), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, Boise Police Department, Meridian Police Department, Ada County Sheriff’s Office, Canyon County Sheriff’s Office, and Nampa Police Department. Other federal agencies participating in the OCEDTF program include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Federal Bureau of Investigation (FBI), and U.S. Marshals Service.
The OCDETF program is a federal, multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Boise Man Arrested; Terrorism Charges Filed in Idaho and UtahRead the Press Release
Suspect Allegedly Conspired to Provide Support to Terrorist Organization; Demonstrated the Making and Use of Explosive Devices
BOISE – Fazliddin Kurbanov, 30, was arrested Thursday morning in Boise, Idaho, as part of a federal terrorism investigation. Federal terrorism charges were filed Thursday afternoon in Boise and Salt Lake City, Utah. Kurbanov, an Uzbekistan national, legally present in the United States, was living in Boise at the time of his arrest.
A federal grand jury in Boise returned a three-count indictment charging Kurbanov with one count of conspiracy to provide material support to a designated foreign terrorist organization, one count of conspiracy to provide material support to terrorists and one count of possessing an unregistered destructive device.
A federal grand jury in Salt Lake City returned an indictment charging Kurbanov with one count of distribution of information relating to explosives, destructive devices, and weapons of mass destruction.
The charges were announced by David B. Barlow, U.S. Attorney for the District of Utah; Wendy J. Olson, U.S. Attorney for the District of Idaho; John Carlin, Acting Assistant Attorney General for National Security at the U.S. Department of Justice; and Mary Rook, Special Agent in Charge of the FBI’s Salt Lake City Division.
The arrest was the culmination of an investigation by the FBI’s Salt Lake City Division, which covers Idaho and Utah; and Joint Terrorism Task Forces (JTTF) in Idaho and Utah, which include a number of federal, state, and local law enforcement agencies.
Kurbanov’s activites were closely monitored by federal agents during the investigation and any potential threat posed by Kurbanov has been contained. Kurbanov is scheduled to make an initial appearance in federal court in Boise tomorrow. He will be transferred to Utah at the conclusion of the prosecution in Idaho.
“Today’s arrest and these indictments underscore our commitment to aggressively and thoroughly investigate those who conspire to engage in unlawful terrorist activities,” said Olson. “The thorough and exhaustive work of our JTTF, in partnership with our investigating and prosecuting partners in Utah, Colorado and at the National Security Division, put a stop to this criminal activity and ensured the public’s safety. I commend the men and women at every level of law enforcement, including the FBI, the Department of Homeland Security, Homeland Security Investigations, Ada County and Canyon County Sheriff’s Offices and the Boise City Police Department, who assisted in this effort.”
“One of our highest priorities is disrupting potential acts of terrorism. The coordinated investigation, arrest, and indictments in this case demonstrate the commitment of all involved to do just that. The tireless work of agents, analysts, and law enforcement officers to detect and guard against acts of terrorism has helped ensure the safety of the communities they serve,” Utah U.S. Attorney David B. Barlow said today. “The judicial part of the process will now begin in Idaho and Utah.”
“Today’s arrest underscores the need for continued vigilance against terrorist threats both at home and abroad. I thank the many agents, analysts and prosecutors responsible for this important investigation,” said John Carlin, Acting Assistant Attorney General for National Security.
“As always, the FBI’s top priority is the safety and security of our nation and its citizens. The indictments and arrest are the result of months of exhaustive investigation on the part of agents, analysts, and officers who worked indefatigably to achieve that end,” Mary Rook, Special Agent in Charge of the FBI Salt Lake City Field Division, said.
Idaho Charges
The Idaho indictment alleges in count one that between August 2012 and May 2013, Kurbanov knowingly conspired with unnamed co-conspirators to provide material support and resources to the Islamic Movement of Uzbekistan, a designated foreign terrorist organization. The indictment alleges that the material support and resources included himself, computer software and money.
In count two, the indictment further alleges that the defendant conspired to provide material support and resources, including himself, to terrorists knowing that the material support was to be used in preparation for and in carrying out an offense involving the use of a weapon of mass destruction.
The indictment also alleges in count three that on or about Nov.15, 2012, Kurbanov possessed a destructive device consisting of a combination of parts intended for use in converting any device into a destructive device and from which a destructive device could be readily assembled. According to the indictment, the parts were a hollow hand grenade, hobby fuse, aluminum powder, potassium nitrate and sulfur.
If convicted on the Idaho charges, Kurbanov faces a maximum of 15 years in prison on each of the conspiracy counts and 10 years in prison on the possession of an unregistered destructive device count. The Idaho charges are being prosecuted by Assistant U.S. Attorneys Aaron Lucoff and Heather Patricco and National Security Division Trial Attorney Larry Schneider.
Utah Charges
The one-count indictment filed in Utah alleges that from about Jan. 14, 2013, continuing through Jan. 24, 2013, Kurbanov taught and demonstrated how to make explosive devices and distributed information relating to the manufacture and use of an explosive or weapon of mass destruction with the intent that the teaching, demonstration and information be used for, and in furtherance of, an activity that would constitute a federal crime of violence.
The indictment alleges the defendant showed internet videos, conducted instructional shopping trips, provided written recipes and gave verbal instructions on where to obtain the necessary components to construct and use improvised explosive devices. The indictment also alleges that Kurbanov intended that the videos, written recipes, verbal instructions, and shopping trips be used for training in the construction and use of explosive devices to commit a crime of violence, such as the use of weapons of mass destruction; bombings of a place of public use, a public transportation system or infrastructure facility; or destroying a building in interstate commerce.
If convicted on the Utah charge, Kurbanov faces up to 20 years in federal prison.
The Utah charges are being prosecuted by U.S. Attorney David B. Barlow, Assistant U.S. Attorney John W. Huber and National Security Division Trial Attorney Larry Schneider.
An indictment is not a finding of guilt and is not evidence. Individuals charged in an indictment are presumed innocent unless or until proven guilty beyond a reasonable doubt in a court of law.
(Questions for the FBI Salt Lake City Division can be directed to Public Affairs Specialist Deb Bertram at 801-579-1400 or by e-mail at [email protected]. If you have questions regarding the Idaho case, please call Pam Bearg, PIO in the Idaho U.S. Attorney’s Office, at 208-334-1211. Questions for the Department of Justice’s National Security Division can be directed to 202-514-2007. )
Five People Sentenced for Gun and Drug Crimes in Connection with Aryan Knights CaseRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced today the sentencing of Lisa Rochel Samayoa, 45, of Boise; Nina Ann Lucas, 32, of Pocatello, Idaho; Darin Scott Melton, 44, of Twin Falls, Idaho; and Omar Riveroll-Hernandez, 32, of Long Beach, California, to federal prison for conspiring to distribute methamphetamine. Cameron James Ball, 25, also of Boise, was sentenced for unlawfully possessing a firearm. The five defendants pleaded guilty to the charge on January 14, 2013. They were sentenced yesterday and today by the Honorable Larry A. Burns, U.S. District Judge for the Southern District of California, at the federal courthouse in Boise.
Samayoa was sentenced to 135 months in prison followed by five years of supervised release. According to information presented in court, Samayoa was involved in the ongoing distribution of methamphetamine. In May 2012, she sold approximately three ounces of methamphetamine to confidential informants; law enforcement seized an additional four ounces. Samayoa was previously convicted of trafficking methamphetamine in 2003.
Lucas was sentenced to 130 months in prison followed by five years of supervised release. According to information presented in court, Lucas conspired with others to distribute methamphetamine in the Boise area. At the time she committed this crime, Lucas was on probation for a felony drug offense.
Melton was sentenced to 87 months in prison followed by five years of supervised release. According to information presented in court, Melton conspired with others to distribute methamphetamine. He admitted that on March 15, 2012, he sold three ounces of methamphetamine to a confidential informant.
Riveroll-Hernandez was sentenced to 60 months in prison followed by five years of supervised release. According to information presented in court, Riveroll-Hernandez was arrested on May 27, 2012, in Twin Falls, Idaho, when law enforcement officers discovered approximately seven ounces of methamphetamine concealed inside a hidden compartment of his vehicle.
Ball was sentenced yesterday to 33 months in prison followed by three years of supervised release for unlawfully possessing a firearm. According to the plea agreement, Ball admitted that he was in possession of a Hi-Point JCP .40 semiautomatic pistol, which he sold to a confidential informant. Ball was prohibited from possessing the firearm because he was previously convicted in 2005 of the felony crime of possessing a controlled substance.
The cases are part of the Aryan Knights investigation in which 23 people were charged as a result of a long term investigation by the Treasure Valley Metro Violent Crime Task Force. The investigation began when the task force focused on illegal drug distribution by the “Aryan Knights,” a gang active both in prison and on the streets throughout Idaho. Through the investigation, law enforcement agents identified Aryan Knights gang members who were trafficking methamphetamine, as well as associates of the gang who were the source of that methamphetamine.
Of the 23 people charged, 22 have pleaded guilty. The final defendant has signed a plea agreement but not yet entered his guilty plea in court. Fifteen defendants have been sentenced while the others are awaiting sentencing.
The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. The joint investigation also included the Organized Crime and Drug Enforcement Task Force (OCDETF), a cooperative law enforcement effort of the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service.
The cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Garden City Man Pleads Guilty to Possessing Sawed-Off ShotgunRead the Press Release
BOISE – Jesse Scott Fleming, 24, of Garden City, Idaho, pleaded guilty today in United States District Court in Boise to unlawfully possessing a firearm, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, Fleming was arrested after he attempted to sell marijuana to an undercover police officer on September 17, 2012. After he was arrested officers discovered a sawed-off shotgun in Fleming’s vehicle. Fleming admitted to possessing the sawed-off shotgun. Fleming is also prohibited from possessing firearms because he was previously convicted of the felony crime of aggravated assault in 2009.
The charge is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years supervised release. The Government is also seeking forfeiture of the sawed-off shotgun.
Sentencing is set for July 25, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was investigated by the Ada County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Idaho Businessman Sentenced to Prison for Income Tax EvasionRead the Press Release
WASHINGTON – Michael George Fitzpatrick, 51, of Hope, Idaho, was sentenced to 42 months in prison by U.S. District Judge Larry A. Burns, the Justice Department and Internal Revenue Service (IRS) announced today. Fitzpatrick was also ordered to serve three years of supervised release and pay just under $1.4 million in restitution to the IRS for unpaid individual and corporate federal income taxes.
Fitzpatrick was convicted of two counts of tax evasion in January 2013 by a Coeur d’Alene, Idaho, jury. A previous jury had convicted him in September 2012 on two counts of failure to file corporate income tax returns but was unable to reach verdicts on the tax evasion counts. Fitzpatrick was remanded into custody immediately after the second trial.
According to the indictment and evidence introduced at both trials, Fitzpatrick operated a business selling products which purported to help individuals eliminate credit card debt. During 2003 and 2004, gross sales from the business, operating under the names Dynamic Solutions, Inc. (DSI) and North American Educational Services, Inc. (NAES), exceeded $9 million. At trial the government proved the corporations failed to report $3.7 million and Fitzpatrick himself failed to report over $500,000 in income, resulting in a total tax loss of $1,397,762.
The evidence further established that Fitzpatrick last filed an individual income tax return in 1996. At trial, Fitzpatrick argued at length that the income tax laws did not apply to him. However, the evidence showed he expended significant time and expense to put all of his property in the names of nominees.
The evidence at trial also established Fitzpatrick sent over $5 million offshore to a bank located in the Dominican Republic. Fitzpatrick accessed this money through the use of a debit card and through wire transfers. During this two-year period Fitzpatrick used over $1 million of his money hidden offshore to buy real estate and to gamble in Las Vegas on nine separate trips to the Bellagio Casino. He also paid a contractor to build a schoolhouse for his kids in his backyard in Hope, Idaho.
“This case sends a strong message that those who defy our nation's tax laws will be investigated and prosecuted to the fullest extent of the law,” said Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally. “The sentence imposed today demonstrates that anyone who attempts to evade taxes by hiding assets in offshore bank accounts faces significant time in prison for these crimes.”
“Paying taxes is a solemn obligation of citizenship,” said United States Attorney Wendy Olson. “Mr. Fitzpatrick’s conviction and sentence make clear that those who try to hide income or knowingly and falsely claim that the income tax laws do not apply to them will be prosecuted and ordered to pay. I commend the fine work of the Tax Division lawyers and the IRS criminal investigators in this case.”
“The license to run a business is not a license to avoid paying taxes,” said Internal Revenue Service Criminal Investigation Chief Richard Weber. “Today, Mr. Fitzpatrick has been held accountable for his actions of dodging his legal tax responsibilities to report all his income and pay his fair share of taxes. No one should doubt that IRS is committed to pursuing people hiding income offshore.”
Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally and U.S. Attorney Wendy J. Olson thanked special agents from the Boise, Idaho and Seattle, Washington offices of IRS Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Lori A. Hendrickson, Christopher P. O’Donnell, and Erin S. Mellen, who prosecuted the case with valuable support from the United States Attorney’s Offices in Boise and Coeur d’Alene.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Former Treasure Valley Woman Sentenced for Theft from Financial InstitutionRead the Press Release
Defendant to Pay $100,272.32 in Restitution to Bank
BOISE – Season Heather Hymas, 27, of American Fork, Utah, was sentenced today in United States District Court in Boise to five years’ probation for misdemeanor theft from a financial institution, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Hymas to pay $100,272.32 in restitution to Wells Fargo Bank. She pleaded guilty to a superseding information on January 14, 2013.
According to the plea agreement, on December 8, 2006, Season Hymas obtained a residential loan based on false statements in a loan application. The false statements included misrepresentations concerning her employment, monthly income, and the account balance of funds held in a bank account.
In December 2011, a federal grand jury returned a superseding indictment charging Season Hymas and her husband, Travis Richard Hymas, 29, with five counts of wire fraud. On June 22, 2012,Travis Hymas was found guilty at trial of all five counts. In October 2012, he was sentenced to 24 months in prison for wire fraud and ordered to pay $241,307.04 in restitution.
The case is part of the investigation of mortgage fraud activity related to Crestwood Homes, which involved multiple defendants who bought and sold real estate in order to "flip" it, or gain profits from the sales. Crestwood Homes was a residential builder in the Treasure Valley that filed for bankruptcy in July 2008. After doing so, it was discovered that individuals associated with Crestwood were involved in submitting fraudulent residential loan applications to lenders. The financial institutions and mortgage lenders incurred substantial losses on the loan transactions.
The case was investigated by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation, with assistance provided by the Office of the United States Trustee and the Idaho Department of Insurance. The case is being prosecuted by the U.S. Attorney's Office for the District of Idaho and the State of Idaho, Office of the Attorney General.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Boise Man Pleads Guilty to Federal Firearms ViolationsRead the Press Release
BOISE – Ronald Keith Alexander, 37, of Boise, Idaho, pleaded guilty today to one count of unlawfully possessing a firearm and one count of transferring a firearm in violation of the National Firearm Registration and Transfer Record, U.S. Attorney Wendy J. Olson announced. Alexander and co-defendant Phillip Bernardino Chavez were charged in a superseding indictment filed on February 12, 2013.
According to court documents, Alexander is prohibited from possessing firearms due to a prior felony conviction in 2001 for robbery, in Walla Walla County, Washington. In court today, Alexander admitted that on December 4, 2012, he knowingly possessed a Federal Arms Corporation .308 rifle and a Century Arms 7.62x39 millimeter rifle. Alexander also admitted that he knowingly and unlawfully transferred a Pioneer Arms Corporation 7.62x25 rifle, a machinegun with a shortened barrel, to another individual, knowing the firearm was not registered to him in the National Firearm Registration and Transfer Record.
Each charge is punishable by up to 10 years in prison, a maximum fine of $250,000, and up to three years of supervised release. The government is seeking forfeiture of the firearms.
Alexander is scheduled to be sentenced on July 15, 2013, by U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
Phillip Chavez, 29, of Boise, is set for trial on August 13. He is charged with illegal possession of a machinegun and transferring a firearm in violation of the National Firearm Registration and Transfer Record.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Nampa Police Department, and the Boise Police Department.
The defendants are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Aryan Knights Defendant Sentenced for Unlawfully Possessing FirearmsRead the Press Release
Defendant in Other Aryan Knights Case Pleads Guilty
BOISE – James Everette Hood, 40, of Parma, Idaho, was sentenced today in federal court to 30 months in prison followed by three years of supervised release for unlawful possession of firearms, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Hood to forfeit the three firearms he illegally possessed and pay a $1,500 fine.
Hood was indicted by a federal grand jury on April 11, 2012. On October 30, 2012, he pleaded guilty to count one of the indictment, admitting that on April 3, 2012, he knowingly and illegally possessed a .32 revolver; a .357 revolver; and a .38 revolver. According to court documents, Hood is prohibited from possessing firearms due to a prior conviction, on December 19, 2003, of retaliating against a witness or informant and aiding and abetting, a crime punishable by a term of imprisonment exceeding one year.
In another Aryan Knights related case, Philip Allen Warren, 45, of Twin Falls, Idaho, pleaded guilty on Monday to counts one and two of an information charging him with distribution of methamphetamine and unlawful possession of a firearm.
According to court documents, on March 15, 2012, Warren knowingly and intentionally distributed 50 grams or more of actual methamphetamine. Warren further admitted that on June 13, 2012, he unlawfully possessed a.40 semi-automatic pistol. He was previously convicted on October 26, 2006, of possession of a controlled substance with intent to deliver, a crime punishable by a term of imprisonment exceeding one year.
Warren faces a mandatory minimum of 20 years in prison, a maximum fine of $10 million, and at least 10 years of supervised release for distribution of methamphetamine. The firearms violation is punishable by up to 10 years in prison, a maximum fine of $250,000 and up to three years of supervised release. Warren is set for sentencing on July 22, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
Hood and Warren were charged last year as a result of a long term investigation by the Treasure Valley Metro Violent Crimes Task Force. The investigation began when the task force focused on illegal drug distribution by the “Aryan Knights,” a gang active both in prison and on the streets throughout Idaho.
The joint investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF) included the cooperative law enforcement efforts of the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service. The Twin Falls Police Department, Twin Falls Sheriff’s Office, Idaho State Police, and District 3 Probation and Parole also participated in the investigation.
Three More Sentenced in E. Idaho Meth Trafficking CaseRead the Press Release
POCATELLO – U.S. Attorney Wendy J. Olson announced today the sentencing of three more members of an Eastern Idaho drug trafficking organization. The defendants appeared this week before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
Ricardo Garcia Lopez, 36, of Idaho Falls, Idaho, was sentenced today to 235 months in prison followed by five years of supervised release for conspiracy to possess with intent to distribute in excess of 50 grams of methamphetamine. Lopez was also ordered to forfeit a firearm and pay a $1,000 fine. He pleaded guilty to the charge on December 19, 2012.
On Monday, Alberto Abarca, 23, of Idaho Falls, Idaho, was sentenced to 130 months in prison followed by five years of supervised release for possession with intent to distribute methamphetamine. He pleaded guilty to the charge on January 23.
Ana Rosa Valdez-Ceja, 26, of Shelley, Idaho, was sentenced yesterday to two years’ probation for money laundering. She pleaded guilty to the charge on January 23.
According to plea agreements filed in the case, from June 2005 through January 2012, a group of individuals centered around co-defendant Samuel Nevarez-Ayon, a Mexican national, entered into a conspiracy to possess and distribute in excess of 50 grams of actual methamphetamine in the Idaho Falls area. In furtherance of the conspiracy, Nevarez-Ayon directed activities of various co-defendants, including Lopez, Abarca and Valdez-Ceja. In addition to distributing methamphetamine, several defendants laundered proceeds from the sale of the methamphetamine and made false loan applications to local banks to further the laundering of money. During the course of the conspiracy, the defendants obtained in excess of $500,000 from the distribution of methamphetamine.
In addition to the defendants sentenced this week, four co-defendants were sentenced in March and April to serve federal prison sentences for conspiracy to possess with intent to distribute methamphetamine: Rafael Ignacio Guerrero, a Mexican national, was sentenced to 42 months; Antonio Javier Mendoza, of Shelley, Idaho, to 96 months; Fabiola Esmerelda Marin Castro, a Mexican national, to 36 months; and Daniel Quiroz, a Mexican national, to 78 months. Abel Garcia, of Idaho Falls, Idaho, was sentenced in March 2013 to one month in prison for making a false statement to a bank.
The remaining defendants, Nevarez-Ayon, Juan Ortiz, Jr., Everado Tapia-Torres, Jr., Nicholas Levi Olsen, and Isidoro David Herrera, pleaded guilty to related charges and are awaiting sentencing later this month. Guadalupe Meraz is a fugitive.
The charges are the result of a nine-month investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), which included the Idaho State Police, Bonneville County Sheriff's Office, Idaho Falls Police Department, Madison County Sheriff's Office, Rexburg Police Department, Bingham County Sheriff’s Office, Fremont County Sheriff’s Office, Federal Bureau of Investigation (FBI), U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Other federal agencies participating in the OCDETF program include the Drug Enforcement Administration and the U.S. Marshals Service.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Idaho Prison Inmate Indicted by Federal Grand Jury for Mail FraudRead the Press Release
BOISE – Mark Anthony Brown, 53, an inmate at the Idaho Correctional Center in Orofino, was arraigned in United States District Court today on 12 counts of mail fraud, U.S. Attorney Wendy J. Olson announced. Brown was indicted by a federal grand jury on March 12, 2013. A trial is set for June 3, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The indictment alleges that from September 2007 to February 28, 2013, Brown devised a scheme to defraud by submitting claim forms in which he falsely represented that he was a claimant, or member, of various class action lawsuits, bankruptcy settlements and other large-scale lawsuits. The indictment alleges that Brown mailed the claim forms to administrators of the settlements in order to receive settlement proceeds. Brown allegedly deposited the proceeds he received into his Idaho Department of Correction trust account and into several different investment accounts, through the use of the mail. The government is seeking forfeiture of approximately $64,000 in currency, or substitute assets, which Brown is alleged to have received from the scheme to defraud.
Each count of mail fraud is punishable by up to 20 years in federal prison, a maximum fine of $250,000, and up to three years of supervised release.
The case is being investigated by the United States Postal Inspection Service with the cooperation of the Idaho Department of Correction.
An indictment is only an allegation of criminal conduct and is not evidence of guilt. A person is presumed innocent until and unless proven guilty beyond a reasonable doubt in a court of law.
Two Idaho Men Sentenced to Federal Prison in Connection with Aryan Knights CasesRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced today that Christopher John Solders, 26, of Twin Falls, and Joseph Anthony Goulart, 42, of Caldwell, were sentenced to federal prison for distributing methamphetamine. A federal grand jury in Boise charged the men in separate indictments last fall.
Solders was sentenced yesterday to 84 months in prison followed by three years of supervised release for distribution of methamphetamine. Solders pleaded guilty to the charge on February 14, 2013. According to the plea agreement, Solders admitted that he sold methamphetamine on two occasions to a confidential informant working with law enforcement. The first transaction occurred in February 2012 and the second transaction in May 2012.
Goulart was sentenced today to 180 months in prison followed by five years of supervised release. On February 7, 2013, Goulart pleaded guilty to conspiracy to distribute methamphetamine. According to information presented in court, law enforcement agents found approximately one and one-half pounds of methamphetamine during a search of Goulart’s residence in September 2012.
Solders and Goulart were sentenced by the Honorable John C. Coughenour, U.S. District Judge for the Western District of Washington, at the federal courthouse in Boise.
The Solders and Goulart cases are part of the Aryan Knights investigation in which 23 people were charged as a result of a long term investigation by the Treasure Valley Metro Violent Crime Task Force. The investigation began when the task force focused on illegal drug distribution by the “Aryan Knights,” a gang active both in prison and on the streets throughout Idaho. Through the investigation, law enforcement agents identified Aryan Knights gang members who were trafficking methamphetamine, as well as associates of the gang who were the source of that methamphetamine.
The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. The joint investigation also included the Organized Crime and Drug Enforcement Task Force (OCDETF), a cooperative law enforcement effort of the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service.
The cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Nampa Man Sentenced to Prison for Possessing Sawed-Off ShotgunRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced today that Kenneth Lee Morgan, 51, of Nampa, Idaho, was sentenced in United States District Court to 32 months in prison followed by three years of supervised release for possessing an unregistered firearm. Morgan appeared before the Hon. John C. Coughenour, U.S. District Judge for the Western District of Washington, at the federal courthouse in Boise.
Morgan pleaded guilty to the charge on February 7, 2013. At the time he pleaded guilty, Morgan admitted that on April 18, 2011, he was in possession of a sawed-off shotgun. According to other information presented in court, the Winchester 12 gauge sawed-off shotgun was recovered by law enforcement agents after Morgan sold the shotgun to another individual.
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force, a task force comprised of local and federal law enforcement agencies in the Treasure Valley. The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Mexican National Sentenced to 56 Months for Possession of Child PornographyRead the Press Release
BOISE – Heriberto Aleman-Aguero, 25, a Mexican national formerly living in St. Anthony, Idaho, was sentenced yesterday to 56 months in prison for possession of sexually explicit images of minors, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Aleman-Aguero to serve five years of supervised release following his prison term and forfeit property used in committing the crime. He pleaded guilty to the charge in November 2012.
According to the plea agreement, Aleman-Aguero’s crime was discovered when he took his cellular phone to a repair shop in July 2011. During the course of the repair, the individual reprogramming the phone observed several images of suspected child pornography. He reported the images to law enforcement. The Rexburg Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed a search warrant for the phone. Forensic analysis later confirmed the presence of several sexually explicit images of minors. Aleman-Aguero admitted in court to possessing the images, knowing the images contained visual depictions of minors engaged in sexually explicit conduct. Aleman-Aguero further admitted knowing that production of such visual depictions involved the use of minors in sexually explicit conduct.
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Rexburg Police Department.
Blackfoot Man Sentenced for Arson at Ft. Hall HomeRead the Press Release
POCATELLO –Trevor James Hurley, 20, of Blackfoot, Idaho, was sentenced today in United States District Court to 36 months in prison followed by five years of supervised release for arson, U.S. Attorney Wendy J. Olson announced. Hurley appeared before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
In court on January 24, 2013, Hurley admitted that in the early morning hours of August 6, 2012, he set fire to a manufactured home or trailer located on the Fort Hall Shoshone Bannock Indian Reservation. According to the plea agreement, witnesses observed Hurley earlier in the night purchasing cotton balls and lighter fluid at a convenience store. Hurley later returned to the convenience store, bragging about how he had set someone's trailer on fire. In an interview with law enforcement on September 11, 2012, Hurley explained how he poured lighter fluid on the cotton balls, lit them on fire, and pushed them through a hole in the screen to the trailer's master bedroom window. Hurley said that the trailer ignited fast, flames shot up, and then he ran back to his friends in a nearby vehicle. Although the trailer was a total loss, and another person was sleeping in a camp trailer located approximately 10 feet away, no one was injured in the fire.
The case was investigated by the Fort Hall Police Department, Idaho State Fire Marshal, and the Bingham County Sheriff's Office.
Pocatello Man Sentenced in Meth Trafficking CaseRead the Press Release
POCATELLO – Douglas I. McAdam, 47, of Pocatello, was sentenced today to 33 months in prison for possession with intent to distribute in excess of five grams of methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered McAdam to serve three years of supervised release after his prison term. He pleaded guilty to the charge on February 11, 2013.
According to the plea agreement, on November 1, 2011, a law enforcement officer observed McAdam receiving methamphetamine from Raymond Camacho, a co-defendant. McAdam was subsequently stopped by officers who recovered in excess of five grams of actual methamphetamine. McAdam admitted he possessed the methamphetamine with the intention of distributing it to others.
Three co-defendants were sentenced earlier in April, including Juan Aguilar, a Mexican national, to 120 months in prison for possession with intent to distribute in excess of 50 grams of methamphetamine; Juan Mendoza, of Menan, Idaho, to 102 months for possession with intent to distribute in excess of 50 grams of methamphetamine; and Jose Rios-Jimenez, a Mexican national, to 16 months – time served – for possession of a firearm by a prohibited person and illegal entry of a removed alien.
Leones, pleaded guilty to related methamphetamine trafficking charges and are awaiting sentencing. Camacho, 57, a Mexican national, pleaded guilty on January 24, 2013, to possession with intent to distribute in excess of 50 grams of methamphetamine; sentencing is set for May 29. Leones, 42, of Pocatello, pleaded guilty to possession with intent to distribute methamphetamine; she is set for sentencing on May 28. On April 26, Judge Winmill signed an order committing co-defendant Eldon K. McConnell, 48, of Pocatello, to a mental health facility.
The case was investigated by Idaho State Police, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and Chubbuck Police Department.
Olson Appointed to Attorney General's Advisory Committee (AGAC)Read the Press Release
BOISE – Attorney General Eric Holder has appointed Idaho’s U.S. Attorney, Wendy J. Olson, to the Attorney General’s Advisory Committee (AGAC), the highest ranking committee within the Department of Justice. The Department announced the appointment of Olson and five other U.S. Attorneys to serve new two-year terms earlier today.
The AGAC, created in 1973, is comprised of twenty U.S. Attorneys from ninety-four districts. The AGAC reports to the Attorney General through the Deputy Attorney General. The committee represents the voice of the U.S. Attorneys and provides advice and counsel to the Attorney General on policy, management and operational issues impacting the Offices of the U.S. Attorneys.
Olson was presidentially appointed U.S. Attorney for the District of Idaho on June 25, 2010. Prior to her appointment she served as an Assistant U.S. Attorney for the District of Idaho from 1997-2010, including as Senior Litigation Counsel (2006-2010). Olson worked for the Criminal Section of the Civil Rights Division of the Department of Justice, where she was a trial attorney from 1992 until 1996, and Deputy Director of Operations and Assistant to the Director on the National Church Arson Task Force from 1996 until 1997. Olson was also an Adjunct Professor of Legal Writing at the George Washington University School of Law from 1994 until 1997. Olson serves as a member of the AGAC’s Border and Immigration Law Enforcement Subcommittee, Civil Rights Subcommittee, Native American Issues Subcommittee, and Local Government Coordination Working Group.
“It’s a pleasure to welcome the newest members of the Attorney General’s Advisory Committee, a group of U.S. Attorneys with whom I regularly consult on some of the most critical law enforcement and public safety issues facing our country,” said Attorney General Holder. “I’m grateful for their service and leadership on the AGAC. I applaud the excellent work that each of them is leading in their home districts. And I look forward to working closely with them as we work together to confront the present challenges and seize new opportunities to protect and ensure justice for the American people.”
Counterfeiting, Fraud and Drugs Earn Colorado Man 51 Months in Federal PrisonRead the Press Release
BOISE – Jeffrey Eugene Barfield, 50, of Thornton, Colorado, was sentenced today to 51 months in prison for mail fraud, dealing in counterfeit United States currency, and distributing oxycodone, U.S. Attorney Wendy J. Olson announced. U.S. District Judge John C. Coughenour also ordered Barfield to serve five years of supervised release following his prison term, pay $13,565 in restitution, and forfeit $4,000 of criminal proceeds and all property used to facilitate the crimes. Barfield pleaded guilty to the charges in December 2012.
According to the plea agreement, while serving a prison sentence in Colorado in January 2011, Barfield began planning a counterfeiting operation involving the trade of counterfeit United States currency for true currency, illegal drugs and firearms. As part of the scheme, Barfield planned to manufacture the fake money and sell it to another person. Upon his release from prison and over the course of nearly six months, Barfield manufactured and sold $10,200 in counterfeit money. He delivered the fake money and 50 oxycodone pills across state lines to Idaho via the United States Postal Service. The person receiving the contraband reported it to law enforcement.
Barfield was arrested by state law enforcement officers in June 2012 for passing counterfeit bills at garage sales in Northglenn, Colorado. After being advised of his rights, Barfield told a United States Secret Service agent, “It was good for a long time but it's over; I did it, I made it, and [an accomplice] and I spent them.” Barfield admitted to manufacturing the counterfeit Federal Reserve Notes he passed at the garage sales, as well as the counterfeit Federal Reserve Notes he mailed across state lines. Barfield further described how he and an accomplice passed multiple counterfeit bills throughout the Denver area, by purchasing items at local Home Depot and Lowe’s Home Improvement stores, which they would then return for genuine cash. Barfield admitted that he and an accomplice would “hit” one to two stores per day approximately one to two times per week.
The case was investigated by the United States Secret Service, the Federal Bureau of Investigation, and United States Postal Inspection Service.
Blackfoot Man Sentenced for Involuntary ManslaughterRead the Press Release
POCATELLO – Kendall Perry, 22, of Blackfoot, Idaho, was sentenced today in United States District Court to 30 months in prison for involuntary manslaughter, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Perry to serve three years of supervised release and do 200 hours of community service. Perry, an enrolled member of the Shoshone-Bannock Tribes, was indicted by a federal grand jury on October 23, 2012, on one count of involuntary manslaughter. He pleaded guilty to the charge on January 28, 2013.
According to the indictment, on June 30, 2012, Perry, who was intoxicated, was operating a 1999 GMC Yukon with gross negligence, causing a roll-over accident near the intersection of Philbin and Sheepskin Road that resulted in the death of Cullen Fightsover, a passenger in the vehicle. An accident reconstructionist said the vehicle was traveling at 74 mph in a 50 mph zone. Perry ran a stop sign, went through the intersection and then lost control and rolled into a field, ejecting the three occupants from the vehicle. Fightsover was life-flighted, but was pronounced dead at the hospital. Perry admitted drinking hard liquor and beer and admitted smoking marijuana in the hours before the crash. Perry admitted he was “buzzed” from the alcohol he had consumed.
The victim’s family members spoke at sentencing and expressed forgiveness towards Perry. Judge Winmill stated to those present in the courtroom that he considered those statements in imposing sentence.
The case was investigated by the Fort Hall Police Department, the Federal Bureau of Investigation, and the Idaho State Police.
Magic Valley Man Sentenced for Concealing Asset from Bankruptcy EstateRead the Press Release
BOISE – Christopher Brandon Craner, 32, of Buhl, Idaho, was sentenced today in United States District Court to two years’ probation for bankruptcy fraud-asset concealment, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Craner to serve two months of the sentence on home detention and pay a $400 fine. Craner, an avid hunter and professional fisherman, is prohibited from owning, possessing or using firearms due to the felony conviction.
According to the plea agreement, on March 24, 2009, Craner filed a petition for Chapter 11 bankruptcy along with a schedule of assets. On January 28, 2013, Craner admitted in court that between March 24 and May 4, 2009, he knowingly and fraudulently concealed from creditors and the bankruptcy trustee his personal interest in a “Ranger Boat Certificate” that had been awarded to him on March 14, 2009.
The case was investigated by United States Trustee’s Office.
Two Sentenced in Connection with Aryan Knights CasesRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced today that two more individuals in the Aryan Knights investigation were sentenced to serve federal prison sentences for distributing methamphetamine.
Nicholas Andrew Steele, 26, of Boise, Idaho, was sentenced yesterday by Chief U.S. District Judge B. Lynn Winmill to 60 months in prison followed by four years of supervised release for distribution of methamphetamine. On December 20, 2012, Steele pleaded guilty and admitted to his involvement in distributing methamphetamine to a confidential informant in June 2012. Steele’s co-defendant, Dennis Lynn James, 46, of San Pablo, California, pleaded guilty on March 12, 2013, to conspiracy to distribute methamphetamine. He is scheduled to be sentenced in federal court in Boise on June 3.
In a separate case, Stephanie Ann Robinson, 29, of Boise, was sentenced today by U.S. District Judge Edward J. Lodge to 63 months in prison followed by four years of supervised release for distribution of methamphetamine. On January 25, 2013, Robinson pleaded guilty to the indictment charging her with one count of distributing methamphetamine in March 2012.
The Steele and Robinson cases are part of the Aryan Knights investigation in which 23 people were charged as a result of a long term investigation by the Treasure Valley Metro Violent Crimes Task Force. The investigation began when the task force focused on illegal drug distribution by the “Aryan Knights,” a gang active both in prison and on the streets throughout Idaho. Through the investigation, law enforcement agents identified Aryan Knights gang members who were trafficking methamphetamine, as well as associates of the gang who were the source of that methamphetamine.
The Aryan Knights indictments were the result of a joint investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service. The Twin Falls Police Department, Twin Falls Sheriff’s Office, Idaho State Police, and District 3 Probation and Parole participated in the investigation.
The cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Mtn. Home Man Admits Child Pornography OffenseRead the Press Release
Son Previously Convicted; Currently Serving 210 Month Sentence
BOISE – Michael John Ebenhoeh, 53, of Mountain Home, Idaho, pleaded guilty today in United States District Court in Boise to possession and access with intent to view sexually explicit images of minors, U.S. Attorney Wendy J. Olson announced. Ebenhoeh was charged by information on March 7, 2013.
According to court documents, members of the Idaho Internet Crimes Against Children Task Force determined that between November 10, 2010, and July 18, 2011, multiple digital files known to contain child pornography involving very young children were being downloaded and offered for sharing from a residence in Mountain Home. On September 28, 2011, law enforcement executed a search warrant at the residence and seized several computers. At the time of the search, authorities arrested Michael Ebenhoeh’s son, Joseph. Joseph Earl Ebenhoeh, 27, subsequently pleaded guilty to two counts of possessing sexually explicit images of minors. He was sentenced in July 2012 to 210 months in federal prison.
On the day of the search, an investigator approached Michael and told him that a file containing child pornography had been found on his computer. At that time, Michael denied knowing how the child pornography files were on his computer.
Further investigation determined that separate Internet accounts in the home were associated with Ebenhoeh and his son, and that the computer belonging to Michael had not been used by his son. According to the plea agreement, investigators re-interviewed Michael, who then admitted he had lied to police during the earlier interview. He further admitted that four or five times a week over the previous year he had used the computer to search online for pornography depicting children. Forensic examination of Michael’s computer found sexually explicit images of children between two and fourteen years of age. Several children were identified as sexual abuse victims from Missouri, Nevada, Maryland and Washington State.
Ebenhoeh faces up to ten years in prison, a maximum fine of $250,000, and up to lifetime supervised release. Sentencing is set for July 22, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was investigated Boise Police Department detectives who are members of the Idaho Internet Crimes Against Children Task Force (ICAC), assisted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Mountain Home Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, visit www.usdoj.gov/psc. For more information about internet safety education, visit www.usdoj.gov/psc and click on the tab “resources.” For more information about registered sex offenders in Idaho, visit www.isp.idaho.gov/sor_id/.
Mexican National Sentenced to over 12 Years in Treasure Valley Drug Trafficking CaseRead the Press Release
Six Defendants Sentenced Earlier, Three Await Sentencing
BOISE – Alfredo Dominguez-Villareal, a/k/a Alfredo Vasquez-Dominguez, 29, a Mexican national, was sentenced today to 150 months in prison for conspiracy to distribute fifty grams or more of actual methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Dominguez-Villareal to pay a $1,500 fine. Following his release from prison, Dominguez-Villareal will be subject to deportation. He pleaded guilty to the charge on November 13, 2012.
According to court documents, beginning in January 2011 and continuing through December 16, 2011, Dominguez-Villareal conspired with co-defendants and others to possess and distribute in excess of fifty grams of actual methamphetamine in the Treasure Valley, and transported methamphetamine from California to Idaho for this purpose.
Six co-defendants have been sentenced on related charges, including Jimenez Valencia a/k/a Jorge Jimenez, a Mexican national, to 57 months; Juan Carlos Arredondo-Sicairos a/k/a Victor Kalil Medina-Feliciano, a Mexican national, to 120 months; Delia Garcia-Pineda, a Mexican national, to 37 months; Tanna Spencer, of Parma, Idaho, to 15 months; Hector Morales, of Delano, California, to six months; and Cynthia Casillas, also of Delano, to three years’ probation.
Three co-defendants are awaiting sentencing: Nelson Fernando Garcia-Soto, a Mexican national, on May 23; Alonso Martinez, of Earlimart, California, on June 4; and Samuel Chavez, 32, of Boise, on June 24.
The case was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Drug Enforcement Administration in conjunction with the Boise Police Department and the Ada County Sheriff's Office. The OCDETF program is a federal multi agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. Federal task force members include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), Internal Revenue Service-Criminal Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and U.S. Marshals Service.
Romanian National Sentenced for Obtaining A Visa by FraudRead the Press Release
BOISE – Romanian national Stefan Csaba Csep, 32, currently living in Ketchum, Idaho, was sentenced today for obtaining a visa by fraud, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill sentenced Csep to two years’ probation and imposed a $500 fine. Csep will be subject to immigration enforcement action by U.S. Immigration and Customs Enforcement (ICE). Csep pleaded guilty to the charge in January 2013.
According to the plea agreement, Csep entered into a fraudulent marriage with a United States Citizen in 2005, with the sole purpose of evading immigration laws and obtaining immigration benefits. According to court documents, Csep did not reside with the individual he married. Following the marriage, he filed paperwork with the Department of Homeland Security/Citizenship and Immigration Services (USCIS), seeking lawful permanent resident status based on his fraudulent marriage to a U.S. citizen. USCIS subsequently approved the application and Csep was granted a lawful permanent resident visa.
As a result of his conviction, Csep will be administratively removed to his native country of Romania, and will be prohibited from entering the United States in the future.
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Former Declo Man Sentenced for Possessing Sexually Explicit Images of MinorsRead the Press Release
BOISE – David Jay Wheeler, 70, formerly of Declo, Idaho, was sentenced today in United States District Court in Boise to 96 months in prison followed by ten years of supervised release for possession of sexually explicit images of minors, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Wheeler to pay $2,219.47 in restitution on behalf of a child victim and forfeit property used to commit the offense.
According to court documents, Wheeler is a former “hands-on” child molester whose sexual attraction to prepubescent females dates back decades. By his own admission, Wheeler used his computer to access online child pornography twice a week over the last ten years. Wheeler used sophisticated means to avoid detection, but investigators were able to locate him by using GPS technology, according to court documents.
A search warrant executed at Wheeler's home in Declo resulted in the seizure of a computer and computer storage media that contained sexually explicit images and videos of minors as young as four years of age. According to court records, Wheeler was sitting at his computer and was in the process of downloading child pornography videos at the time the investigators executed the search warrant.
The National Center for Missing and Exploited Children reviewed the child pornography seized from Wheeler and reported that the material had been produced depicting child sexual abuse victims from Idaho, Washington, Montana, Colorado, North Carolina, Pennsylvania, Texas, Nevada, Hawaii, California, Illinois, Delaware, Georgia, Florida, New Hampshire, New Jersey, Netherlands, France, United Kingdom, Belgium, Italy, Germany, Ukraine, Canada, Denmark, Sweden, Germany, Norway, Austria, and Brazil.
The case was investigated by officers from the Boise Police Department, assisted by agents and investigators from the Idaho Attorney General's Office, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Idaho State Police, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), all members of the ICAC Task Force.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, visit www.usdoj.gov/psc. For more information about internet safety education, visit www.usdoj.gov/psc and click on the tab “resources.” For more information about registered sex offenders in Idaho, visit www.isp.idaho.gov/sor_id/.
Boise Jury Convicts Eagle Man of 17 Counts of Wire FraudRead the Press Release
BOISE – A federal jury in Boise late yesterday convicted Matthew D. Hutcheson, 41, of Eagle, Idaho, of seventeen counts of wire fraud, U.S. Attorney Wendy J. Olson announced. Hutcheson is a former trustee and fiduciary for a number of multiple employer pension plans, including the G Fiduciary Retirement Income Security Plan (the “G Fid Plan”), National Retirement Security Plan 401(k) (the “NRSP”), and the Retirement Security Plan & Trust (the “RSPT”). During the eight day trial, the government presented evidence that beginning in 2010, Hutcheson perpetrated schemes to defraud the G Fid and RSPT plans, and misappropriated over $5 million of plan assets.
The jury heard evidence that from January 2010 through December 2010, Hutcheson misappropriated just over $2 million of G Fid Plan assets for his personal use. On twelve occasions, Hutcheson directed the G Fid Plan record keeper to wire transfer plan assets from the G Fid Plan account at Charles Schwab to bank accounts he controlled and to other bank accounts for his personal benefit. Hutcheson used these assets to extensively renovate his personal residence, including adding a pool, to repay personal loans, to purchase luxury automobiles, motorcycles, all-terrain vehicles, and a tractor, and for other personal expenses. When G Fid Plan clients, plan record keepers, and others requested information about the location and status of the plan assets, Hutcheson misrepresented that they were safely invested.
The jury also heard evidence that in December 2010, Hutcheson misappropriated approximately $3,276,000 of RSPT Plan assets to pursue the purchase of the Tamarack Resort in Donnelly, Idaho, on behalf of a limited liability corporation he controlled, called Green Valley Holdings, LLC. In December 2010, Hutcheson directed the RSPT Plan record keeper to wire transfer approximately $3 million from the RSPT Plan to an escrow account for the benefit of Green Valley Holdings, LLC. Hutcheson directed the RSPT Plan record keeper to describe the transaction in plan records as an investment in a fixed income bank note. In reality, Hutcheson used the $3 million to purchase a bank note secured by a majority interest in the Osprey Meadows Golf Course and Lodge at the Tamarack Resort in the name of Green Valley Holdings, not the RSPT Plan. Hutcheson later obtained a $425,000 cash loan from a private lender in Virginia using the same bank note as collateral, and placing the lender above other creditors in case of default. When the RSPT Plan auditor questioned Hutcheson about the investment, Hutcheson told the auditor there was no plan investment in a fixed income bank note, and that he had “loaned” the money from the RSPT Plan to Green Valley Holdings. Hutcheson produced purported loan documents to the auditor, but they were fraudulent and forged. In addition, in December of 2010, Hutcheson directed the RSPT Plan record keeper to wire transfer $275,000 from the RSPT Plan to a bank account he controlled. Hutcheson transferred $250,000 of this money to an escrow account at US Bank to demonstrate to the Tamarack Corporation's creditors that Green Valley Holding had the financial means to purchase the resort. Later, he spent the money for personal purposes.
Each count of wire fraud is punishable by up to 20 years in prison, a maximum fine of $250,000 or twice the gain or loss from the offense, and up to three years of supervised release. The government is seeking forfeiture of approximately $5,307,688, or substitute assets, including property, valued at this amount.
Hutcheson is scheduled to be sentenced on July 23, 2013, before U.S. District Judge William Fremming Nielsen at the federal courthouse in Boise.
“This jury verdict sends the strong message that those who defraud the very employee benefit pension plans they are supposed to protect will be held accountable,” said Olson. “Matthew Hutcheson placed his own personal interests and greed above the clients’ whose retirement interests he pledged to safeguard. This office will continue to take pension fraud very seriously. I commend the federal law enforcement officers who conducted the deliberate and detailed investigation in this case, and I commend Assistant United States Attorney Ray Patricco for his outstanding job of presenting the complex evidence to the jury."
The case was investigated by the United States Department of Labor, Employee Benefits Security Administration, and the Federal Bureau of Investigation.
Federal Jury Convicts Fruitland Man of Conspiracy, Arson and TheftRead the Press Release
Destroyed Government Vehicles and Building in Payette, Idaho, in May 2011
BOISE – U.S. Attorney Wendy J. Olson announced today that David Joseph VonBargen, 50, of Fruitland, Idaho, was convicted by a federal jury of carrying and using firearms – Molotov cocktails – during and in relation to a federal crime of violence, conspiracy to maliciously use explosive materials, conspiracy to maliciously damage federal property, and theft of firearms.
During the five day trial, the jury heard evidence that on May 27, 2011, VonBargen and his co-defendant, Donovan James Bolen, 22, also of Fruitland, schemed to set fires in Payette to divert law enforcement while they broke into the World’s Largest Pawn Shop, in Fruitland, and stole firearms. The jury found VonBargen guilty of using Molotov cocktails to set fire to two U.S. Department of Agriculture vehicles and a lumber warehouse belonging to Western Core Door, Inc., in Payette. The jury also found VonBargen guilty of burglarizing and stealing 12 firearms, including rifles, revolvers, and pistols, from the World’s Largest Pawnshop.
VonBargen is set for sentencing on June 25, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise. He faces a minimum term of 35 years up to life in prison, a maximum fine of $1,760,000, and up to 26 years of supervised release.
Bolen was sentenced on February 5, 2013, to 444 months in federal prison for the same crimes. Following his release from prison, Bolen will be on supervised release for five years. He was ordered to pay $162,124.87 in restitution to the victims, Western Core Door, Inc. 2 and the U.S. Department of Agriculture. Bolen was found guilty of the charges on October 16, 2012, following a five day trial.
“Mr. VonBargen’s use of Molotov cocktails to divert the attention of law enforcement was unconscionable, endangered the lives of first responders, and destroyed the property of innocent victims,” said Olson. “I commend the swift law enforcement response that brought both of the defendants in this case to justice. Mr. VonBargen now, like his co-defendant, faces a well-deserved lengthy prison sentence.”
The case was investigated by the Fruitland Police Department, the Payette Police Department, the Payette County Sheriff's Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Idaho State Fire Marshal.
U.S. Attorney Olson Announces Sentencing of Final Two Defendants in Brown Magic Clica (BMC) Gang Racketeering CasesRead the Press Release
Twenty-four Defendants Convicted in Federal and State Courts
BOISE – Wendy J. Olson, United States Attorney for the District of Idaho, announced the sentencings this week of Oscar Garcia, 27, of Umatilla, Oregon, and Juan Anthony Jimenez, 29, currently incarcerated at the Idaho State Department of Correction (IDOC), for conspiring to participate in a racketeering enterprise. Garcia, also known as “Bubba” and “Tiny,” was also sentenced for attempted murder in aid of racketeering. Garcia was sentenced on Monday to 124 months in prison followed by three years of supervised release and ordered to pay a $1,000 fine. Jimenez, also known as “Loco,” was sentenced today to 120 months in prison followed by three years of supervised release. Both defendants pleaded guilty on January 18, 2013.
Garcia and Jimenez are the final federal defendants to plead guilty and be sentenced as part of the eleven-defendant Brown Magic Clica gang conspiracy originally charged in March 2011. Two other individuals were charged separately in BMC gang related cases. Ten defendants also have been convicted and sentenced in state court. The prosecution and sentencings mark the first federal RICO gang prosecution in the District of Idaho.
“Working together, federal and state prosecutors, federal, state, county and local law enforcement produced a significant victory against gang crime in Idaho and eastern Oregon,” said Olson. “The multiple convictions of Brown Magic Clica members under the federal RICO statute demonstrate that we will meet the gang business of violence and intimidation with federal tools designed to disrupt this criminal conduct. To be sure, no law enforcement agency could have done this alone.”
Thirteen defendants, including Garcia and Jimenez, were charged in March 2011 in three separate federal indictments. Eleven defendants pleaded guilty earlier and were sentenced to serve federal prison time:
- Alfredo Castro, a/k/a “Papos,” 26, currently incarcerated at IDOC, was sentenced on August 20, 2012, to 168 months in prison followed by three years of supervised release for conspiracy to participate in a racketeering enterprise.
- Adelaido Gomez, a/k/a “Guy,” 28, currently incarcerated at IDOC, was sentenced on December 13, 2012, to 125 months in prison followed by three years of supervised release for conspiracy to participate in a racketeering enterprise.
- Jessie Rodriguez, a/k/a “Pelon,” 28, of Ontario, Oregon, was sentenced on February 21, 2012, to 115 months in prison followed by three years of supervised release for conspiracy to participate in a racketeering enterprise; assault with a dangerous weapon in aid of racketeering, aid and abet; and attempted murder in aid of racketeering, aid and abet.
- Amando Garcia, Jr., a/k/a Amando Torres, a/k/a “Toro,” 29, of Boise, Idaho, was sentenced on February 25, 2013, to 96 months in prison followed by five years of supervised release for conspiracy to participate in a racketeering enterprise and attempted murder in aid of racketeering. At sentencing, Garcia renounced his membership in the BMC gang.
- Samson Torres, a/k/a “Gremlin,” 24, of Ontario, Oregon, was sentenced on January 9, 2012, to 70 months in prison followed by three years of supervised release for conspiracy to participate in a racketeering enterprise. He was also fined $2,000.
- Salvador Apodaca, a/k/a “Bugz,” 26, of Pendleton, Oregon, was sentenced on February 6, 2012, to 60 months in prison followed by three years of supervised release for assault with a deadly weapon in aid of racketeering.
- Adam Gomez, a/k/a “Lil Toro,” 25, of Fruitland, Idaho, was sentenced on April 16, 2012, to 60 months in prison followed by three years of supervised release for conspiracy to participate in a racketeering enterprise.
- Mathew Grover, a/k/a “Dreamin” 24, of Fruitland, Idaho, was sentenced on January 9, 2012, to 51 months in prison followed by three years of supervised release for conspiracy to participate in a racketeering enterprise and unlawful possession of a firearm. Grover was also fined $2,000.
- Juan Gonzalez, a/k/a “Chango,” 28, of Nampa, Idaho, was sentenced on October 16, 2012, to 37 months in prison followed by three years of supervised release for conspiracy to participate in a racketeering enterprise.
- Ruben Nungaray, a/k/a “Shorty,” 32, a former member of the BMC gang, pleaded guilty in July 2011, to unlawful possession of a firearm. He was sentenced on November 28, 2011, to 92 months in prison followed by three years of supervised release.
- Crista Lydia Lara, 25, of Ontario, Oregon, an associate of the BMC gang, pleaded guilty in November 2011, to conspiracy to distribute methamphetamine. She was sentenced on February 22, 2012, to 46 months in prison followed by three years of supervised release.
The convictions are the result of a three-year Treasure Valley Metro Violent Crimes Task Force investigation named “Operation Black Magic,” which focused on the criminal activity of members of the BMC gang from 2006 to 2010. According to court documents, the defendants admitted that, as part of their participation in the BMC gang, they agreed that members of the gang would commit racketeering acts, including committing, attempting, conspiring and soliciting crimes of murder, arson, witness intimidation and retaliation, and distribution of controlled substances. BMC rules required members to engage in acts of violence toward witnesses in criminal investigations against BMC members, against rival gang members, and against other BMC members who did not follow BMC rules. BMC conducted gang meetings where gang business and criminal activity were discussed, dues were collected, and discipline was administered to members in the form of timed physical assaults conducted by multiple members. BMC members commonly used and distributed controlled substances, and also possessed and transferred firearms among members of the gang. The investigation of the BMC gang revealed that, from 2006 to 2010, BMC members committed two murders and at least seven attempted murders. The seven attempted murders included three “drive-by shootings” in Ontario, one shooting at the vehicle of a person delivering newspapers in Caldwell, Idaho, one shooting toward a crowd at a child’s baptism party in Payette, Idaho, and one stabbing of a person with a knife at a gas station in Caldwell. The investigation further showed that BMC gang members ordered, solicited, and conspired to commit numerous other murders and assaults.
Seventeen gang members and associates also were charged in state court, primarily on gang recruitment charges. Ten of those defendants were convicted and have been sentenced. One defendant is awaiting sentencing; another, Martin Navarro, 30, of Nyssa, Oregon, failed to appear for trial. A warrant is outstanding for his arrest. The other five defendants’ cases were dismissed as a result of the Idaho Supreme Court’s 2012 decision in State v. Simona Manzanares, interpreting Idaho’s gang statute.
- Luis Nungaray, 26, of Boise, pleaded guilty to conspiracy to recruit gang members and was sentenced by Judge Renae J. Hoff on August 20, 2012, to two years fixed followed by two years indeterminate, for a total sentence of four years. The sentence was suspended and Nungaray was placed on probation for a period of two years.
- Jose Jimenez, 28, of Nyssa, pleaded guilty to conspiracy to recruit gang members and was sentenced by Judge Thomas J. Ryan on August 29, 2012, to two years fixed followed by three years indeterminate, for a total sentence of five years. The sentence was suspended and Jimenez was placed on probation for a period of three years.
- Cesar Salinas, 31, of Nyssa, pleaded guilty to conspiracy to recruit gang members and was sentenced by Judge Renae J. Hoff on August 10, 2012, to two years fixed followed by two years indeterminate, for a total sentence of four years. The sentence was suspended and Salinas was placed on probation for a period of three years.
- Paul Espinoza, 22, of Ontario, Oregon, pleaded guilty to conspiracy to recruit gang members and was sentenced by Judge James C. Morfitt on May 21, 2012, to probation, with the judgment withheld for a period of three years.
- Ricardo Martinez, 26, of Ontario, pleaded guilty to conspiracy to recruit gang members and was sentenced by Judge Renae J. Hoff on June 19, 2012, to two years fixed followed by three years indeterminate, for a total sentence of five years. The sentence was suspended and Martinez was placed on probation for a period of three years. Martinez violated his probation and Judge James C. Morfitt revoked his probation, imposed the original sentence, and retained jurisdiction for a period of 365 days on January 11, 2013.
- David Perales, 22, of Ontario, pleaded guilty to conspiracy to recruit gang members and was sentenced by Judge George Southworth on February 19, 2013, to two years fixed followed by four years indeterminate, for a total sentence of five years. The sentence was suspended and Perales was placed on probation for a period of three years.
- Miguel Gallegos, 29, of Vale, Oregon, pleaded guilty to conspiracy to recruit gang members and was sentenced by Judge Renae J. Hoff on April 23, 2012, to two years fixed followed by four years indeterminate, for a total sentence of four years. The sentence was suspended and Gallegos was placed on probation for a period of two years.
- Juan Esteban Gonzalez, 26, of Nampa, pleaded guilty to conspiracy to recruit gang members and was sentenced by Judge Renae J. Hoff on December 17, 2012, to two years fixed followed by three years indeterminate, for a total sentence of five years. The sentence was suspended and Gonzalez was placed on probation for a period of three years.
- Jonathan Lopez-Villa, 27 of Caldwell, pleaded guilty to accessory to a felony and was sentenced by Judge Renae J. Hoff on August 10, 2012, to 364 days fixed. The sentence was suspended and Lopez-Villa was placed on probation for three years.
- Roberto Martinez, 28, of Oregon, pleaded guilty to conspiracy to recruit gang members and was sentenced by Judge James C. Morfitt on May 21, 2012, to two years fixed followed by four years indeterminate, for a total sentence of six years. The sentence was suspended and Martinez was placed on five years of probation. A probation violation was filed on January 16, 2013; a warrant is outstanding for his arrest.
- Gonzalo Garcia-Torres, 26, of Oregon, pleaded guilty on April 23, 2012, to conspiracy to recruit gang members. Sentencing is pending while he serves time in Oregon on unrelated charges.
Together, federal and state courts sentenced twenty-three defendants to more than 136 years in prison.
“The federal and state prosecution of BMC gang members and associates is a victory for our community,” said Bryan Taylor, Canyon County Prosecutor. “This office will continue to work with federal, state and local law enforcement partners to ensure that violent street gangs who threaten our communities will be prosecuted to the fullest extent of the law. The convictions and sentencings of these twenty-three gang members and associates makes our community safer.”
“I believe law enforcement officers and administrators from local, state and federal agencies in the Treasure Valley are making their message abundantly clear to the criminally inclined,” said Canyon County Sheriff Kieran Donahue. “If you want to be a gang member and conduct illegal activity in our cities and counties we will identify you, arrest you, convict you and send you to prison. We are not intimidated by you nor will our efforts be deterred, I promise you.”
“Here we have twenty-three gang members and associates who, thanks to the cooperative efforts of the federal government and local law enforcement, have been arrested, convicted and sent away to prison,” said Ada County Sheriff Gary Raney. “This case would not have happened were it not for the ability to have that cooperative effort.”
Chief of Police Mark Alexander of the Ontario, Oregon Police Department stated that the BMC case has had a positive impact on gang crime in Ontario, and that the number of gang crimes in 2012 was down 50% from 2010 levels.
The federal racketeer influenced corrupt organizations (RICO) law prohibits individuals from participating, or conspiring to participate, in the conduct of an enterprise through a pattern of racketeering activity. An enterprise is defined as any individual, partnership, corporation, association, or other legal entity, and any union or group of individuals associated in fact although not a legal entity. Racketeering activity is defined as specified criminal acts, including murder, arson, distribution of controlled substances, and intimidation and retaliation against witnesses.
The investigation included the cooperative law enforcement efforts of the Treasure Valley Metro Violent Crimes Task Force, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Ada County Sheriff’s Office, Boise Police Department, Caldwell Police Department, Canyon County Sheriff’s Office, Idaho Department of Correction, Malheur (Oregon) County Sheriff’s Office, Meridian Police Department, Nampa Police Department, Nyssa Police Department, Ontario (Oregon) Police Department, Oregon State Police, Canyon County Prosecutor’s Office and the U.S. Attorney's Office.
Nampa Man Sentenced for Illegally Possessing A FirearmRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced the sentencing yesterday of Jesus Manuel Zuniga, 28, of Nampa, Idaho, for unlawful possession of a firearm, and for violating the terms of his supervised release. Zuniga, a member of the Nampa Northside Gang, was ordered by Chief U.S. District Judge B. Lynn Winmill to serve 64 months in prison followed by three years of supervised release. Zuniga pleaded guilty to the charge on January 31, 2013.
In his plea, Zuniga admitted that on October 30, 2012, a Nampa Police officer initiated a traffic stop on a vehicle pursuant to a warrant for Zuniga’s arrest for violating his federal supervised release. After the vehicle stopped, Zuniga, who was a passenger in the vehicle, attempted to elude two Deputy U.S. Marshals. He was apprehended and arrested in possession of a firearm, later identified as a Phoenix Arms .22 semi-automatic pistol. Judge Winmill found that Zuniga committed an aggravated assault with the firearm against a Deputy U.S. Marshal during the pursuit, and increased his sentence as a result. Because Zuniga had previously been convicted in 2010 of unlawful possession of a firearm, a felony offense punishable by a term of imprisonment exceeding one year, he is prohibited from possessing firearms. Zuniga was on federal supervised release for the previous conviction for unlawful possession of a firearm when he committed this offense.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Nampa Police Department, and the U.S. Marshals Service.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
DBSI Principals Indicted for Securities Fraud, Wire Fraud, Mail Fraud, Bank Fraud and ConspiracyRead the Press Release
BOISE – Douglas L. Swenson, 64, of Eagle, Idaho; Mark A. Ellison, 64, of Boise, Idaho; David D. Swenson, 35, of Boise, Idaho; and Jeremy S. Swenson, 40, of Meridian, Idaho, were indicted today by a federal grand jury in Boise for conspiracy to commit securities fraud, wire fraud, mail fraud, and interstate transportation of stolen property stemming from their involvement in the DBSI Group of Companies (DBSI), U.S. Attorney for the District of Idaho Wendy J. Olson announced.
Defendant Douglas Swenson is the founder and former President of DBSI. Mark Ellison, another founder of DBSI, served as DBSI’s general counsel during the period charged in the indictment. David D. Swenson and Jeremy S. Swenson were assistant secretaries for DBSI. Founded in 1979 and headquartered in Meridian, Idaho, DBSI was essentially a conglomerate of real estate and non-real estate companies, including DBSI Housing and DBSI Securities.
According to the indictment, from January 2007 through November 2008, the defendants publicly represented that DBSI was a profitable company and had a net worth in excess of $105 million. The indictment further alleges that the defendants knew and believed that, contrary to the disclosures made to investors and their own DBSI employees involved with the marketing and selling of DBSI investments, DBSI’s real estate and non-real estate business activities were universally unprofitable; DBSI’s much-touted Master Lease investment product was losing approximately $3 million dollars a month; and DBSI was relying on new investor funds, including investor money that DBSI represented would only be used in particular circumstances, to continue operations and pay returns to other DBSI investors. The indictment alleges that the conspiracy continued until DBSI filed for bankruptcy in November 2008. The eighty-three count indictment also charges all of the defendants with thirty-nine counts of securities fraud, thirty-four counts of wire fraud, six counts of interstate transportation of stolen property taken by fraud, and two counts of bank fraud. Former President Douglas Swenson is also charged with conspiracy to commit money laundering.
Based on the conspiracy and fraud charges, the indictment seeks forfeiture of properties and assets totaling $169 million.
According to the indictment, DBSI purported to be an industry leader in locating, acquiring, developing, managing and providing real estate investment opportunities throughout the United States. The criminal allegations center around material omissions, as well as false and fraudulent representations, made to investors about investment products that involved tenant-in-common 1031 exchange interests (TIC investments) and the related “Master Lease” investment product. DBSI promoted the Master Lease, whereby DBSI leased back commercial real estate that it first sold to TIC investors, as providing investors with a reliable, fixed monthly return on their investment, backed by the financial support and substantial net worth of DBSI.
Also according to the indictment, although the defendants knew of DBSI’s true and deteriorating financial position, they withheld accurate financial information and took steps to conceal DBSI’s true financial condition from investors, financial advisors, broker dealers, due diligence officers, DBSI wholesalers, and other DBSI employees. The indictment alleges that in disclosures to investors, the defendants falsely and fraudulently misrepresented DBSI Housing’s net worth; failed to disclose DBSI’s cash shortages and deteriorating finances; misrepresented the likelihood of repayment on large investments in technology start-up companies; and failed to disclose DBSI’s dependence on new investor money to meet its existing obligations.
The indictment further alleges that, as part of its Master Lease investment product, DBSI collected funds called “Accountable Reserves” from investors. The indictment alleges that although DBSI told investors that their Accountable Reserves would only be used for specific expenses associated with their TIC properties and not co-mingled with other DBSI funds, the defendants conspired to and did in fact commingle and divert at least $80 million in investor’s Accountable Reserves for purposes other than those disclosed to investors, including payment of the promised fixed investment returns to existing investors, operation expenses, and investments in technology start-up companies.
The defendants are also charged with defrauding investors of approximately $89 million dollars from a 2008 notes offering, based on disclosures that misrepresented assets on DBSI Housing’s balance sheet. These assets included account receivables from affiliated DBSI entities, which were made up of more than $200 million in loans to technology start-up companies. The indictment alleges that the four defendants conspired to conceal the investments in, and DBSI’s dependence on, more than $200 million in loans to technology start-up companies, which were made through DBSI affiliated entities. The indictment further alleges that defendants took steps to conceal these loans, which were treated as fully collectible, despite DBSI having received no prior material repayments and there being no likelihood of any future material repayments.
According to the indictment, the fraud and conspiracy charges involved the non-public offerings for multiple commercial real estate investment projects in, among others, six different states: Virginia, Illinois, Georgia, Missouri, North Dakota and Texas. The bank fraud charges arise out of projects in Georgia and Illinois, in which DBSI originally obtained financing from financial institutions in order to purchase commercial real estate, which it then repackaged and resold to TIC investors. The indictment alleges that the defendants made false and fraudulent statements in order to secure those loans.
In a related case, former DBSI Chief Operating Officer Gary Bringhurst pleaded guilty in federal court in Boise on Monday, April 8, 2013, to one count of conspiracy to commit securities fraud. Bringhurst, 46, is originally from Utah. According to the plea agreement, Bringhurst conspired to mislead DBSI investors by, among other things, falsifying financial statements for DBSI Housing. The plea agreement further states that one of the properties about which DBSI made false and fraudulent representations was Oakwood Plaza, LLC, in Alton, Illinois.
“Investment fraud undermines markets, bilks investors of promised returns and creates unnecessary loss at a time when our economy is struggling to recover,” said Olson. “Those who seek to induce others to invest their hard earned money in complex financial deals have a solemn duty to act with honesty and integrity. I commend the hard work and detailed investigation of the FBI and IRS agents who have spent countless hours on this case.”
“Defrauding investors is like a ‘house of cards’; the underlying structure can fall apart at any time leaving many investors in financial ruin,” said Stephen Boyd, IRS Criminal Investigation Special Agent-in-Charge for the State of Idaho. “IRS CI along with our law enforcement partners will vigorously pursue corporate officers who victimize their investors and violate the public trust.”
The conspiracy to commit securities fraud, wire fraud, mail fraud and interstate transportation of stolen property charge is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release. The conspiracy to commit money laundering charge is punishable by up to twenty years in prison, a maximum fine of $250,000, and up to five years of supervised release. The securities fraud charges are each punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release. The wire fraud charges are each punishable by up to twenty years in prison, a maximum fine of $250,000, and up to five years of supervised release. The bank fraud charges are each punishable by up to thirty years in prison, a maximum fine of $1 million, and up to five years of supervised release. The interstate transportation of stolen property charges are each punishable by up to ten years in prison, a maximum fine of $250,000, and up to one year of supervised release. The false statement charge is punishable by up to two years in prison, a maximum fine of $250,000, and up to one year of supervised release.
The case was investigated by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation. The case is being prosecuted by Assistants United States Attorney George Breitsameter and Anthony Hall, and Department of Justice Tax Division Trial Attorney Mark Williams.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Two Men Sentenced in Connection with Aryan Knights CaseRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced today that two individuals charged in connection with the Aryan Knights investigation were sentenced in United States District Court in Boise earlier today.
Dallas Tyler Thompson, 31, of Boise, was sentenced to 49 months in prison followed by three years of supervised release for unlawful possession of a firearm. Thompson pleaded guilty on January 16, 2013, to possessing a Glock 9 millimeter handgun on June 19, 2012. Thompson is prohibited from possessing firearms because he was previously convicted of the felony crime of aggravated battery in 2001.
Andrew Gallegos, 23, of Boise, was sentenced to 24 months in prison followed by three years of supervised release for unlawful possession of a firearm. Gallegos pleaded guilty to the charge on January 14, 2013. Gallegos admitted that on February 21, 2012, he possessed a Smith & Wesson .357 semi-automatic pistol. Gallegos is prohibited from possessing firearms because he was previously convicted of the felony crimes of possession of a controlled substance and concealment of evidence.
Gallegos and Thompson were charged in two separate indictments filed in August and September 2012, respectively. These two defendants were among 23 people charged as a result of a long term investigation by the Treasure Valley Metro Violent Crimes Task Force. The investigation began when the task force focused on illegal drug distribution by the “Aryan Knights,” a gang active both in prison and on the streets throughout Idaho. Through the investigation, law enforcement agents identified Aryan Knights gang members who were trafficking methamphetamine, as well as associates of the gang who were the source of that methamphetamine.
Of the 23 individuals charged, 20 have pleaded guilty, two have signed plea agreements but have not yet entered guilty pleas, and one is set for trial. Of those who pleaded guilty, six were already sentenced, while 14 are currently awaiting sentencing.
The joint investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF) included the cooperative law enforcement efforts of the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service. The Twin Falls Police Department, Twin Falls Sheriff’s Office, Idaho State Police, and District 3 Probation and Parole also participated in the investigation.
The Aryan Knights cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Leader of Southwest Idaho Meth Trafficking Conspiracy Sentenced to over 33 Years in Federal PrisonRead the Press Release
Ten Defendants Now Set to Serve Lengthy Prison Sentences
BOISE – Jesus Guadalupe Sanchez, a/k/a Jose Salazar, 32, a Mexican national, the leader and organizer of a major Southwest Idaho drug trafficking conspiracy, was sentenced today to 400 months in federal prison for conspiracy to distribute methamphetamine and possession of methamphetamine with intent to distribute, U.S. Attorney Wendy J. Olson announced. Following his release from prison, Sanchez must serve five years of supervised release; he also faces possible deportation.
Co-conspirator Michael Dennis Morris, 42, of Weiser, Idaho, was also sentenced today to 156 months in prison followed by eight years of supervised release. The court also ordered Morris to pay a $2,000 fine. The two appeared before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise. To date, fourteen defendants have been sentenced in the case.
On January 22, 2013, following a six-day trial, a federal jury convicted Sanchez, Morris and co-defendant Jim Allen Loveland of conspiring with others, including co-defendants, to distribute a total of approximately eleven pounds of methamphetamine in Canyon, Payette and Washington counties between November 2011 and May 16, 2012.
Eight defendants were sentenced in February and March 2013 to serve federal prison sentences, including Dawson Lee Moore, of Weiser, to 36 months in prison for conspiracy to possess with intent to distribute methamphetamine; Benjamine L. Vertner, of Ontario, Oregon, to 138 months; Patric Campbell, of Boise, to 124 months; Kristopher Hensley, of Weiser, to 51 months; Johnny A. Tambunga, of Weiser, to 47 months; Jacob James Clevenger, of Weiser, to 188 months; Mario Martinez, Jr., of Greenleaf, Idaho, to 57 months; and Fabian Jordano Beltran, of Weiser, to 36 months.
Loveland, 58, of Boise, Idaho, the sole remaining defendant, is set for sentencing on May 23, 2013.
“These drug traffickers well deserve the lengthy sentences the Court imposed,” said Olson. “This outstanding investigation and prosecution demonstrate that federal, state and local law enforcement will work together in all parts of Idaho to ensure that those who seek to poison our communities with this poisonous drug are caught, prosecuted and punished.”
The case was investigated by the Idaho State Police with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Coeur D'Alene Man Pleads Not Guilty to Federal Child Exploitation and Obscenity ChargesRead the Press Release
BOISE – Jeremy E. Durkin, 35, of Coeur d’Alene, Idaho, pleaded not guilty in federal court today to charges related to allegations of child exploitation and obscenity, U.S. Attorney Wendy J. Olson announced. A federal grand jury in Boise indicted Durkin on March 13, 2013, on one count of using a facility of interstate commerce to entice a minor to engage in criminal sexual activity; one count of transferring obscene material to a minor; and one count of receiving sexually explicit images of a minor under the age of 16 years. The indictment alleges that the offenses occurred between December 2009 and July 2010.
The indictment alleges that Durkin was previously convicted in Kootenai County, Idaho, of sexual abuse of a child under age 16. Durkin was a registered sex offender at the time of the new allegations. He is currently an inmate at the Idaho Department of Correction.
The new federal crimes are punishable by up to life in prison.
A trial is set for May 21, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The case was investigated by the Federal Bureau of Investigation and the Idaho Department of Correction.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Another Treasure Valley Head Shop Owner Pleads GuiltyRead the Press Release
BOISE – Troy A. Rawlings, 33, of Meridian, Idaho, pleaded guilty today in federal court to count one of the indictment charging him with conspiracy to sell, offer for sale, and transport drug paraphernalia, U.S. Attorney Wendy J. Olson announced. Rawlings and his co-defendant, Jason Guerrero, 34, of Boise, Idaho, were indicted by a federal grand jury on May 9, 2012.
Rawlings, the co-owner and operator of RG Distributing, Inc., doing business as Smoke Shack and Smoke Shack 2, admitted in court today that he conspired to sell paraphernalia under the guise of “tobacco products,” or with claims of other “legitimate” uses. According to the indictment, Rawlings referred to the drug paraphernalia as “smoking accessories,” to be used only to smoke tobacco. Virtually all of the smoking devices sold under this guise were commonly used to ingest marijuana, hashish, and/or other illegal drugs, not tobacco.
The charge is punishable by up to three years in prison, a maximum fine of $250,000, and up to one year of supervised release. The government is seeking forfeiture of assets derived from or used in the offense.
Rawlings is scheduled to be sentenced on June 17, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
On February 26, 2013, Guerrero pleaded guilty to a superseding information charging him with one count of offering drug paraphernalia for sale and one count of engaging in monetary transactions involving criminally derived property. He is scheduled to be sentenced on June 4. He faces up to three years in prison, a maximum fine of $250,000, and up to one year of supervised release on the drug paraphernalia charge and up to ten years in prison, a maximum 2 fine of $250,000, and not more than three years of supervised release on the money laundering charge.
Rawlings and Guerrero are among the seventeen individuals charged last year as part of Operation Not for Human Consumption, which targeted illegal sales of drug paraphernalia and “spice” at 13Treasure Valley businesses. According to search warrant affidavits, nine of the 13 businesses were openly selling “spice,” a substance that tested positive for AM-2201. The DEA has determined that AM-2201 is a controlled substance analogue. “Spice,” a synthetic form of cannabis, which is a psychoactive herbal and chemical product that, when consumed, mimics the effects of cannabis. In the spring of 2011, the Idaho Legislature criminalized the sale of “spice” under state law. In March of 2011, the Drug Enforcement Administration placed five synthetic cannabinoids into Schedule I of the Controlled Substances Act. It is against federal law to sell or offer for sale any paraphernalia that is primarily intended or designed for drug use, regardless of whether the seller advises their customers that the paraphernalia is for tobacco use only. The businesses are commonly referred to as “head shops.”
Operation Not for Human Consumption includes the cooperative law enforcement efforts of the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Boise Police Department, Ada County Sheriff's Office, Canyon County Sheriff's Office, Nampa Police Department, Meridian Police Department, and the Canyon County Prosecutor's Office. The U.S. Marshals Service and Idaho State Police provided assistance.
Another Defendant Sentenced in E. Idaho Drug Trafficking ConspiracyRead the Press Release
POCATELLO – Rafael Ignacio Guerrero, 37, a Mexican national, was sentenced today in United States District Court to 42 months in prison for conspiracy to possess with intent to distribute in excess of 50 grams of methamphetamine, U.S. Attorney Wendy J. Olson announced. He will face deportation after serving his sentence. Chief U.S. District Judge B. Lynn Winmill also ordered Guerrero to pay $100 special assessment.
According to plea agreements filed in the case, from June 2005 through January 2012, a group of individuals centered around Samuel Nevarez-Ayon, a Mexican national, entered into a conspiracy to possess and distribute in excess of 50 grams of actual methamphetamine in the Idaho Falls area. In furtherance of the conspiracy, Nevarez-Ayon admitted that he distributed methamphetamine to other individuals on at least three occasions during this same time period. In June of 2011, Guerrero delivered two pounds of methamphetamine to Nevarez-Ayon for subsequent distribution. In furtherance of the conspiracy, Nevarez-Ayon directed activities of various co-defendants. In addition to distributing methamphetamine, several defendant laundered proceeds from the sale of the methamphetamine, and made false loan application to local banks to further the laundering of money. During the course of the conspiracy, the defendants obtained in excess of $500,000 from the distribution of methamphetamine.
Nevarez-Ayon and seven co-defendants have pleaded guilty and are awaiting sentencing. One defendant is a fugitive.
Three co-defendants were sentenced in March 2013, for conspiracy to possess with intent to distribute in excess of 50 grams of methamphetamine, including Antonio Javier Mendoza, of 2 Shelley, Idaho, to 96 months in prison; Fabiola Esmerelda Marin Castro, to 36 months; and Daniel Quiroz, a Mexican national, to 78 months . Abel Garcia, of Idaho Falls, Idaho, was sentenced in March to one month in prison for making a false statement to a bank.
The charges are the result of a nine-month investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), which included the Idaho State Police, Bonneville County Sheriff's Office, Idaho Falls Police Department, Madison County Sheriff's Office, Rexburg Police Department, Bingham County Sheriff’s Office, Fremont County Sheriff’s Office, Federal Bureau of Investigation (FBI), U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Other federal agencies participating in the OCDETF program include the Drug Enforcement Administration and the U.S. Marshals Service.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Lapwai Man Pleads Guilty to AssaultRead the Press Release
COEUR D'ALENE – Paris Channing Leighton, 41, of Lapwai, Idaho, pleaded guilty today in United States District Court to assault resulting in serious bodily injury, U.S. Attorney Wendy J. Olson announced.
According to court statements, Leighton admitted that on May 18, 2012, he punched or kicked his girlfriend at their residence in Lapwai. The victim was taken to the hospital where a CT scan revealed that Leighton had caused the victim to suffer facial fractures
The charge is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for June 24, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene.
The case was investigated by the Nez Perce Tribal Police and the Federal Bureau of Investigation.
Three Mexican Nationals Sentenced in Meth Trafficking CaseRead the Press Release
Three Co-defendants Await Sentencing
POCATELLO – Three co-defendants in Eastern Idaho were sentenced in United States District Court yesterday for drug trafficking and related charges, U.S. Attorney Wendy J. Olson announced today. The defendants appeared before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
Juan Aguilar, 60, a Mexican national, formerly residing in San Jose, California, was sentenced to 120 months in federal prison followed by five years of supervised release for possession with intent to distribute in excess of 50 grams of methamphetamine. Aguilar was also ordered to pay a $1,000 fine. He pleaded guilty to the charge on December 19, 2012.
Juan Mendoza, 41, of Menan, Idaho, was sentenced to 102 months in prison followed by five years of supervised release for possession with intent to distribute in excess of 50 grams of methamphetamine. Mendoza was also ordered to pay a $1,000 fine. He pleaded guilty on December 18.
Jose Rios-Jimenez, 62, a Mexican national formerly living in Menan, Idaho, was sentenced to time served – 16 months – for possession of a firearm by a prohibited person and illegal entry of a removed alien. He was ordered to forfeit the handgun he illegally possessed. Rio-Jimenez pleaded guilty to the charges on December 18. He will be subject to deportation.
Three co-defendants have pleaded guilty to related charges and are awaiting sentencing. Raymond Camacho, a/k/a Jesus Mendoza Nunez, 57, a Mexican national, pleaded guilty on January 24, 2013, to possession with intent to distribute in excess of 50 grams of methamphetamine. Douglas I. McAdam, 47, of Pocatello, pleaded guilty on February 11 to possession with intent to distribute in excess of five grams of methamphetamine. Camacho and McAdam are set for sentencing on April 29. Marilyn N. Leones, 42, of Pocatello, pleaded guilty to possession with intent to distribute methamphetamine; she is set for sentencing on May 28. Eldon K. McConnell, 48, of Pocatello, is scheduled for a competency hearing on April 4.
According to the plea agreements, on November 24, 2011, Camacho and Aguilar were in a vehicle stopped by law enforcement officers in Bannock County, Idaho. A search of the vehicle located approximately three pounds of methamphetamine. Forensic analysis later determined the substance contained in excess of 50 grams of actual methamphetamine. Camacho and Aguilar admitted to knowing the methamphetamine was in the vehicle and possessed it with the intention of distributing it to others.
During execution of a search warrant at Mendoza’s residence in Jefferson County, Idaho, law enforcement discovered various controlled substances. Mendoza later admitted that he possessed the methamphetamine intending to distribute it to others and that he had previously distributed methamphetamine in the Pocatello area. During execution of a second search warrant, at Rios-Jimenez’s residence, also in Jefferson County, law enforcement discovered a Hi-Point.380 caliber pistol, which Rios-Jimenez admitted possessing. Authorities also discovered that Rios-Jimenez was illegally in the United States, having been lawfully removed on December 7, 1990.
The case was investigated by Idaho State Police, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and Chubbuck Police Department.
California Man Sentenced for Trafficking Cocaine in N. IdahoRead the Press Release
COEUR D'ALENE – Hector Rivera, 35, of Paramount, California, was sentenced today in United States District Court to 50 months in prison followed by four years of supervised release for conspiracy to possess with intent to distribute cocaine, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Rivera to serve four years of supervised release after his prison term. He pleaded guilty to the charge on November 5, 2012.
Rivera’s co-defendant, Barbara Jeanne Willoughby, 23, also of Paramount, California, was sentenced on February 4 to 18 months in prison for conspiracy to possess with intent to distribute cocaine, U.S. Attorney Wendy J. Olson announced.
Rivera admitted in court that on March 18, 2012, he conspired with Barbara Willoughby to distribute 500 grams or more of cocaine. According to court documents, Willoughby drove a rental vehicle from California to Idaho because Rivera’s license was suspended. The vehicle was stopped by law enforcement because it did not have a front license plate. During this contact, law enforcement became suspicious of Rivera and Willoughby’s behavior. A search of the vehicle discovered cocaine in a backpack in the cab of the truck.
The case was investigated by the Bonners Ferry Police Department, Idaho State Police, U.S. Border Patrol, and the North Idaho Violent Crimes Task Force (NIVCTF). NIVCTF members include the Federal Bureau of Investigation, the Idaho State Police, Kootenai County Sheriff’s Office, Shoshone County Sheriff’s Office, Bonner County Sheriff’s Office, Coeur d’Alene Police Department, Post Falls Police Department, and the Coeur d’Alene Tribal Police Department. The NIVCTF investigates a myriad of violent crimes, including armed robbery, kidnapping, felonious assault and drug trafficking.
Chubbuck Woman Admits Theft of Government PropertyRead the Press Release
Agrees to Pay Full Restitution of $103,511.76
POCATELLO – Leslie A. Briggs, 36, of Chubbuck, Idaho, pleaded guilty today in United States District Court to theft of government property, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, Briggs was employed as assistant to the manager of the Aid for Friends Representative Payee Program, in which the Social Security Administration sends payments for beneficiaries to Aid for Friends. Aid for Friends then administers the funds and pays for the beneficiary’s personal expenses. According to the plea agreement, Briggs had signing authority on the Aid for Friends Social Security Administration trust account at Wells Fargo Bank, where all beneficiaries’ Social Security funds are deposited. Briggs admitted that from November 2008 to December 2010, she wrote checks on the trust account, without authorization, for personal expenses, including credit card bills, insurance and a home loan. Briggs agreed to pay full restitution of $103,511.76.
The charge is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for June 18, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Social Security Administration, Office of Inspector General-Office of Investigations and the Pocatello Police Department.
Idaho Falls Man Pleads Guilty to Possessing A Sawed-off ShotgunRead the Press Release
POCATELLO – Timothy Scott Murphy, 24, of Idaho Falls, Idaho, pleaded guilty today in United States District Court to possession of an unregistered firearm, U.S. Attorney Wendy J. Olson announced.
In court today, Murphy pleaded guilty to the indictment filed on May 22, 2012, charging him with one count of receipt or possession of an unregistered firearm. According to court records, on February 21, 2012, Idaho Falls Police officers received reports that Murphy was in possession of a sawed-off shotgun. Officers located Murphy at a house in Idaho Falls. Murphy left the house carrying a sawed-off shotgun, but when he saw the officers he retreated back into the house. Other occupants of the house were evacuated. After a four-hour standoff, Murphy surrendered. The sawed-off shotgun was located in a bathroom inside the house. According to the indictment, the barrel length of the Maverick 12-gauge shotgun was approximately 16 inches; the minimum legal length is 18 inches. The government is seeking forfeiture of the firearm.
The charge is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for June 17, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Idaho Falls Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.