District of Idaho

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.

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.

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.

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.

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.

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).

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.”

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.

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.

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 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.

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.

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.

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.

BOISE – William N. Brockbrader, 40, of Garden Valley, Idaho, was sentenced today in United States District Court to 30 months in prison followed by ten years of supervised release for failing to register as a sex offender, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Brockbrader to pay a $10,000 fine.

Brockbrader was convicted by a federal jury in Boise on December 5, 2012, following a three day trial. The jury heard evidence that Brockbrader was convicted in 1998 of three sexual offenses against a minor. He was serving in the United States Navy when he committed the offenses. After serving three years in prison, Brockbrader was paroled in Utah in 2001. Although he initially registered as a sex offender in Utah, Brockbrader failed to update his registration status when he moved to Nevada in early 2009. Brockbrader was arrested during a traffic stop in Nevada in April 2011, and it was determined that he was a sex offender who had failed to register. Brockbrader completed his registration under protest while he was in jail and was released. He left Nevada in early 2012 and moved to Garden Valley. Brockbrader was non-compliant with his Nevada registration requirements at the time he left the state and failed to notify Nevada or Utah authorities that he had moved to Idaho. Brockbrader subsequently failed to register as a sex offender in Idaho. United States Marshals arrested him on May 15, 2012.

The case was investigated by the Sex Offender Watch Task Force in Southern Idaho and the United States Marshals Service, with assistance by the Nevada Department of Public Safety, Nevada Attorney General’s Office, and the Utah Sex Offender Registry.

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/.

Ordered to Pay $429,436 in Restitution to the IRS

BOISE – Justin D. Schoenauer, 41, also known as Corey J. Schoenauer, a resident of Twin Falls County, Idaho, was sentenced today in United States District Court to 27 months in prison for income tax evasion. Schoenauer was also sentenced to three years of supervised release and ordered to pay $429,436 in restitution. Schoenauer was indicted in February 2012 and pleaded guilty to the offense on October 30, 2012.

According to court documents, Schoenauer was a general contractor who, for the past ten years, operated a sole proprietorship called Patagonia Construction (Patagonia), a business engaged primarily in building homes. Schoenauer admitted that during tax years 2005 through 2008, he concealed Patagonia’s business receipts. Schoenauer further admitted that he directed some customers to make checks payable to him personally, rather than to Patagonia, then ensured that those checks were not deposited into Patagonia’s main bank account. When having tax returns prepared, Schoenauer falsely told his return preparer that all of his business receipts were deposited into the main Patagonia bank account, thereby concealing Patagonia’s gross receipts and causing the preparation and filing of false tax returns. Schoenauer paid the IRS $35,000 at sentencing, which will be applied to his outstanding tax liability.

“When a business owner cheats on his taxes, he gains an unfair advantage over honest businesses and cheats all honest taxpayers,” said Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally. “Today’s sentence shows that we will hold such criminals accountable.”

“Paying income tax is a solemn obligation of citizenship,” said United States Attorney Wendy J. Olson. “Integrity in business transactions required to be reported to the federal government is essential to the proper functioning of our economy. Those who hide income, evade taxes and launder profits undermine our democracy. This sentence sends a strong message that those who seek to avoid their tax responsibilities will be properly punished.”

“The license to run a business is not a license to evade paying taxes,” said Richard Weber, Chief, IRS Criminal Investigation. “Mr. Schoenauer’s misconduct, concealing business receipts and having checks made payable to himself, is offensive to all honest business owners. IRS Criminal Investigation continues to protect the U.S. tax system by investigating and bringing to justice individuals who violate tax laws.”

Assistant Attorney General Keneally and United States Attorney Olson commended the efforts of special agents from IRS-Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Michael J. Romano and Mark L. Williams, who prosecuted the case.

POCATELLO – James Brown, 50, of Idaho Falls, Idaho, pleaded guilty today in United States District Court in Pocatello to one count of possession of sexually explicit images of minors, U.S. Attorney Wendy J. Olson announced. Brown was charged by information on February 12, 2013.

According to the plea agreement, Brown admitted that on August 15, 2012, he possessed a laptop computer with more than 600 sexually explicit images of minors. Many of the images depicted sexual activity between adults and children under the age of 12. When Brown was interviewed by special agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, he admitted to possessing “thousands” of images of sexually explicit conduct, approximately half of which he estimated were images of minor children.

Authorities were alerted to Brown’s illegal activities in April 2011, when the Federal Bureau of Investigation learned that Brown’s e-mail account had been used to send an image of child pornography to another person. An investigation led authorities to suspect the illegal activity was being conducted using the computer network of Brown’s employer, ON Semiconductor. Once notified, the company promptly undertook an internal investigation and cooperated fully with law enforcement’s investigation. Brown’s employment was terminated in conjunction with his confession to the authorities.

The charge of possessing sexually explicit images of minors is punishable by up to ten years in prison, a maximum fine of $250,000, and a minimum term of five years up to lifetime supervised release. The government is seeking forfeiture of the computer equipment used in the offense.

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 U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with assistance from the Federal Bureau of Investigation.

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.”

BOISE – Dawson Lee Moore, 60, of Weiser, was sentenced today in United States District Court to 36 months in prison followed by five years of supervised release for conspiracy to possess with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. Dawson appeared today before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise. He pleaded guilty to the charge on January 4. Dawson is the twelfth defendant sentenced in the case.

According to court documents, Dawson admitted that from early November 2011 through May 16, 2012, he conspired with others, including co-defendants, to distribute a total of approximately 11 pounds of methamphetamine in Canyon, Payette and Washington counties in Idaho.

Sentenced in February 2013 to serve federal prison sentences were co-defendants 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.

Three co-defendants await sentencing following their January 22 conviction for conspiracy to distribute methamphetamine. Michael Dennis Morris, Jim Allen Loveland, and Jesus Guadalupe Sanchez a/k/a Jose Salazar, a Mexican national, who was also convicted of possession of methamphetamine with intent to distribute, are scheduled to be sentenced on April 8.

The case was investigated by the Idaho State Police.

BOISE – Devin Edward Montgomery, 32, of Boise, Idaho, was sentenced this morning in United States District Court to 24 months plus 10 days in prison followed by three years of supervised release for unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Montgomery to forfeit the shotgun he illegally possessed. He pleaded guilty to the charge on January 7, 2013.

According to the plea agreement, on April 3, 2012, federal search warrants were served on a residence located on Broadway Avenue in Boise, Idaho, which served as the clubhouse for the Slayers gang. The search located a Mossberg 12 gauge shotgun inside a safe. According to the plea agreement, Montgomery admitted that he purchased the firearm on August 18, 2011, from Impact Guns in Boise. Montgomery further admitted that at the time he possessed the firearm, he was an unlawful user of a controlled substance and prohibited under federal law from possessing firearms.

On September 20, 2012, Montgomery pleaded guilty in Idaho state court to delivery of a controlled substance and recruiting a criminal gang member. He is currently awaiting sentencing on those charges.

The indictment was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Bureau of Alcohol, Tobacco, Firearms and Explosives, in conjunction with the Boise Police Department. Other federal agencies participating in the OCDETF program include the Federal Bureau of Investigation (FBI), U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, Drug Enforcement Administration, 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.

The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.

BOISE – Dyrell Robert Swinson, 20, of Tacoma, Washington, was sentenced this morning in United States District Court to 57 months in federal prison for his role in a child sex trafficking case, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Swinson to be supervised by a probation officer for five years after he is released from custody. He will also be required to register as a sex offender. Swinson pleaded guilty in November 2012 to obstructing a sex trafficking of children investigation.

According to the plea agreement, on March 8, 2012, law enforcement observed suspicious behavior by the occupants of a vehicle eastbound on Interstate 84 in Payette County, Idaho. The vehicle was intercepted at a rest area and the two occupants of the vehicle were questioned by an Idaho State Police trooper. The officer determined that Swinson, the driver of the vehicle, had a suspended Washington driver’s license. The passenger, a young female who Swinson said was his cousin, was unable to provide identification. The trooper, believing the female's stated age to be false, conducted a consensual search of the vehicle and discovered items inconsistent with statements made by the vehicle's occupants. Swinson was arrested for driving without privileges and both individuals were taken to the Payette County Jail. During an interview at the jail, the passenger admitted her true age – 15 – and identity. A check with Idaho State Police dispatch revealed the juvenile was a ward of the state of Washington and a runaway who had disappeared on November 22, 2011.

According to the plea agreement, Swinson, after being advised that telephone calls from the jail were being recorded, made several calls requesting other parties to alter or delete electronic records. During the investigation, law enforcement discovered that Swinson had posted provocative photographs of the 15-year-old on Internet advertisement web sites with telephone numbers for customers to call. Swinson admitted that his solicitations of other persons to alter, eliminate, or destroy evidence stored online was an attempt to obstruct the enforcement of federal law involving sex trafficking of a minor.

“Sex trafficking victimizes vulnerable teens, often forcing them into a desperate lifestyle so that others may profit,” said Olson. “Law enforcement agencies and prosecutors in Idaho are working together to identify and rescue these victims and to ensure that the traffickers are punished.”

The case was investigated by the Federal Bureau of Investigation, the Idaho State Police, and the Payette County Sheriff's Office.

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."

BOISE – William Oldenburg, 66, of Eagle, Idaho, pleaded guilty today in federal court to count four of the superseding indictment charging him with conspiracy to distribute controlled substance analogue, and count ten charging him with conspiracy to structure transactions, U.S. Attorney Wendy J. Olson announced. The indictment was returned by a federal grand jury in Boise on November 15, 2012.

According to court documents, Oldenburg is the owner of Gary's Dream, LLC, which operates Boise Beverage and Tobacco and The Pit Stop Express. The businesses, commonly referred to as “head shops,” are engaged in the unlawful sale of drug paraphernalia to drug users and drug traffickers. Items of drug paraphernalia were typically sold at the businesses under the guise of “tobacco products,” or with claims of other “legitimate” uses. According to the indictment, Oldenburg referred to much of the drug paraphernalia as “smoking accessories,” to be used only to smoke tobacco. However, virtually all of the smoking devices sold by Oldenburg were commonly used to ingest marijuana, hashish, and/or other illegal drugs, not tobacco.

Oldenburg admitted that beginning on March 1, 2011, and continuing through May 10, 2012, he knowingly conspired with other persons to distribute and possess with intent to distribute a mixture and substance containing a detectable amount of AM-2201 and UR-144, Schedule I controlled substance analogues, knowing the substance was intended for human consumption; and 813.45 kilograms of a mixture and substance containing AM-2201 or UR-144, both controlled substance analogues.

Oldenburg further admitted that between at least July 2011, and November 2012, he conspired with others to conduct a series of financial transactions involving the proceeds of the unlawful activity, in order to evade reporting requirements under federal law.

Conspiracy to distribute controlled substance analogue, as charged in count four of the superseding indictment, is punishable by up to twenty years in prison, a maximum fine of $1 million, and up to three years of supervised release. Conspiracy to structure transactions, as charged in count ten, is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release. The government is seeking forfeiture of assets derived from the criminal offenses, including cash, real property and personal property.

Sentencing is set for June 17, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.

Oldenburg is 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.

BOISE – Richard Dennis Streck III, 37, of Walla Walla, Washington, was sentenced today in United States District Court to 30 months in prison followed by three years of supervised release for possessing an unregistered sawed-off shotgun, U.S. Attorney Wendy J. Olson announced. Streck was sentenced in federal court in Boise by Senior U.S. District Judge William B. Shubb of the Eastern District of California. Streck pleaded guilty to the charge on December 20, 2012.

According to the arguments at the sentencing, on January 19, 2011, Streck was driving from Oregon to Idaho when he was pulled over by law enforcement for a traffic infraction. After a drug detection K-9 alerted on the vehicle, a search of Streck’s vehicle discovered methamphetamine, marijuana, and a stolen sawed-off shotgun. Streck was attempting to deliver the stolen sawed-off shot gun to his methamphetamine supplier, a member of a white supremacy gang. Judge Shubb ordered, as a condition of his supervised release, that Streck have no contact with documented gang members and not possess items of gang paraphernalia.

The case was investigated by the Payette County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.

BOISE – Mauricio Becerril, 40, a Mexican national formerly living in Ontario, Oregon, was sentenced today in United States District Court in Boise to 36 months in prison and a $200 special assessment for aggravated identity theft and perjury, U.S. Attorney Wendy J. Olson announced. Becerill appeared today before Senior U.S. District Judge William B. Shubb of the Eastern District of California. He pleaded guilty to the charge on December 20, 2012.

According to the plea agreement, on September 3, 2010, Becerril, using the name “E.Z.R.,” filed an application to obtain a permanent United States resident card. In the application, Becerril used the name, date of birth, and social security number of the individual, aware that he was using another person’s identity. At the time that he filed the application, Becerril knew that E.Z.R. was a real person, based upon the fact that he requested a replacement permanent resident card, and had obtained permanent resident cards in E.Z.R.'s name in the past. On January 3, 2011, the U.S. Citizenship and Immigration Services (USCIS) approved the application, and subsequently provided Becerril with a permanent resident card bearing the name of E.Z.R., but with Becerril’s photograph.

On June 11, 2012, Becerril met with a special agent of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). The agent was investigating whether Becerril obtained a visa by fraud using another individual's identity. When questioned under oath, Becerril swore his true identity was E.Z.R., knowing this statement was false.

“Identity thieves don’t just steal names, they steal peoples’ lives,” said Brad Bench, special agent in charge of HSI Seattle, who oversees Idaho investigations. “This is a crime that wreaks havoc on a victim’s finances and reputations. It can take years, if not decades, to undo the damage.”

The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Enforcement Removal Operations.

COEUR D’ALENE – Alex James Ellenwood, 24, of Lapwai, Idaho, pleaded guilty today in United States District Court in Coeur d’Alene to unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced.

According to the plea agreement, on September 5, 2012, Ellenwood was arrested at a Clearwater County campground on an outstanding warrant. During a search incident to the arrest, law enforcement found a Ruger .44 pistol in Ellenwood’s backpack. Ellenwood is prohibited from possessing firearms due to his 2008 federal conviction for assault with a deadly weapon, a felony punishable by a term of imprisonment exceeding one year. Ellenwood agreed to forfeit the firearm found in his possession.

The charge of unlawful possession of a firearm is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.

Ellenwood is scheduled to be sentenced on June 11, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Coeur d’Alene.

The case was investigated by Nez Perce Tribal Police, Clearwater County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Investigation.

The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.

POCATELLO – Linda Joyce Lakes, 54, of Pocatello, Idaho, was sentenced today to 12 months in prison followed by three years of supervised release for mailing threatening communications, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also imposed a no contact order with the victims. Lakes pleaded guilty to the charge in November 2012.

According to court records, from November 2010 to July 2012, Lakes wrote six letters in which she threatened to injure and kill a man from her past. At the time Lakes wrote the letters, she was incarcerated at the Pocatello Women’s Correctional Center. Lakes continued writing the letters even after being given a direct order to stop contacting the target of her letters. In the letters, Lakes counted down the days until she was to be released from prison and would be able to act out her threats. When interviewed by an agent of the Federal Bureau of Investigation, Lakes admitted writing and mailing the letters and said she wanted to kill the man when she wrote the letters. Later, Lakes wrote another letter in which she said she knew it was a federal offense to send threatening letters in the mail but did it anyway, because she “doesn’t care.”

The case was investigated by the Federal Bureau of Investigation, with assistance by the Idaho Department of Correction.

BOISE – Jesse Ray Delgado, 47, of Boise, Idaho, and Dennis James, 47, of San Pablo, California, pleaded guilty today in United States District Court to conspiring to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. The defendants were charged in two separate cases.

At today’s hearing, Delgado admitted that he entered into a conspiracy with other individuals to distribute methamphetamine. Delgado acknowledged that he would purchase methamphetamine and then distribute it in the Boise area. On February 16, 2012, he sold approximately one-half ounce of methamphetamine to a confidential informant. On March 14, 2012, law enforcement agents served a search warrant on Delgado’s residence and recovered over three ounces of methamphetamine. Delgado faces an enhanced sentence because of his prior conviction for possession of controlled substances in 2001.

The charge of conspiracy to distribute methamphetamine, as enhanced, is punishable by up to life in prison, a maximum fine of $20 million, and a minimum term of ten years of supervised release. Delgado is scheduled to be sentenced on June 4, 2013, by U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.

James, who also pleaded guilty to conspiring to distribute methamphetamine, admitted that on June 13, 2012, he and a co-defendant sold approximately one-quarter ounce of methamphetamine to a confidential informant. The following day, on June 14, 2012, James and the co-defendant again sold approximately one-quarter ounce of methamphetamine to the same individual. James faces an enhanced sentence because he was previously convicted of possession of a controlled substance in 2006.

James faces up to life in prison, a maximum fine of $8 million, and a minimum term of eight years of supervised release. He is scheduled to be sentenced on June 3, 2013, by U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.

James’ co-defendant, Nicholas Andrew Steele, pleaded guilty on December 21, 2012, to distribution of methamphetamine. Sentencing is set for March 25.

Delgado, James and Steele are three of the 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 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 Correction. The Organized Crime and Drug Enforcement Task Force (OCDETF) also contributed to the investigation, 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.

BOISE – Travis Gayle Smith, 40, of Boise, Idaho, pleaded guilty today in United States District Court to unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced.

According to the plea agreement, on January 19, 2005, Smith was convicted of aggravated battery in Ada County, Idaho, and sentenced to ten years in prison. In November 2010, Smith was paroled and released from custody with the condition that he submit to a search of his residence at any time by any agent of field and community services. On July 20, 2012, a Probation and Parole officer, assisted by the Ada County Sheriff’s Office, conducted a search of Smith’s residence and located a Mossberg 12 gauge slide-action shotgun and ammunition. According to the plea agreement, Smith admitted the gun was his and that he had purchased it approximately one month prior to the search. Smith is prohibited from possessing firearms due to his prior felony conviction.

The charge of unlawful possession of a firearm is punishable by up to ten years in prison, a maximum fine of $250,000, and at least three years of supervised release. The government is seeking forfeiture of the firearm.

Sentencing is set for June 4, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.

The case was investigated by the Idaho Department of Correction Probation and Parole, Ada County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). 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.

Nine Defendants Await Sentencing in April

POCATELLO – Four co-conspirators in a large-scale methamphetamine trafficking organization were sentenced this week in United States District Court, 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.

Antonio Javier Mendoza, 28, of Shelley, Idaho, was sentenced on March 5 to 96 months in federal prison followed by five years of supervised release for conspiracy to possess with intent to distribute in excess of 50 grams of methamphetamine. Mendoza was ordered to pay a $1,000 fine. He pleaded guilty to the charge on December 18, 2012.

Fabiola Esmerelda Marin Castro, 25, a Mexican national formerly living in Rexburg, Idaho, was sentenced on March 5 to 36 months in prison for conspiracy to possess with intent to distribute in excess of 50 grams of methamphetamine. She was also fined $300 and ordered to forfeit $83,575 and two vehicles. She pleaded guilty on December 18.

Daniel Quiroz, 25, a Mexican national formerly residing in Rexburg, was sentenced on Thursday to 78 months in prison for conspiracy to possess with intent to distribute in excess of 50 grams of methamphetamine. Quiroz was ordered to serve five years of supervised release and fined $500. He will be subject to deportation following his release from prison. He pleaded guilty on December 18.

Abel Garcia, 24, of Idaho Falls, Idaho, was sentenced today for making a false statement to a bank. Garcia was sentenced to one month in prison followed by two years of supervised release, and fined $750. He pleaded guilty to the charge on December 19.

Nine other defendants have pleaded guilty and are awaiting sentencing in April. One defendant is a fugitive.

Samuel Nevarez-Ayon, 26, a Mexican national formerly living in Rexburg, pleaded guilty to continuing criminal enterprise for his leadership role in the conspiracy. Sentencing is set for April 4. He faces a minimum term of 20 years up to life in prison, a maximum fine of $2 million, and a minimum term of five years of supervised release.

Juan Ortiz, Jr., 28, Ricardo Garcia Lopez, 36, Isidoro David Herrera, 31, of Idaho Falls, Idaho; and Rafael Ignacio Guerrero, 37, a Mexican national, pleaded guilty to conspiracy to possess with intent to distribute in excess of 50 grams of methamphetamine. They each face a minimum term of ten years in prison, at least five years of supervised release, and a maximum fine of $10 million. Ortiz and Lopez are set for sentencing on April 1; Guerrero on April 3, and Herrera on April 30.

Everado Tapia Torres, Jr., 30, of Idaho Falls, pleaded guilty to possession with intent to distribute five grams or more of methamphetamine. He faces at least five years in prison, a maximum fine of $5 million, and at least four years of supervised release. Sentencing is set for April 3.

Ana Rosa Valdez-Ceja, 26, of Shelley, pleaded guilty to money laundering. She faces up to 20 years in prison, a maximum fine of $500,000, at up to three years of supervised release. Sentencing is set for April 29.

Alberto Abarca, 23, of Idaho Falls, pleaded guilty to possession with intent to distribute methamphetamine. He faces up to 20 years in prison, a maximum fine of $1 million, and up to three years of supervised release. Sentencing is set for April 29.

Nicolas Levi Olsen, 30, of Idaho Falls, pleaded guilty to an information charging him with aiding and abetting possession with intent to distribute methamphetamine. He faces up to 20 years in prison, a maximum fine of $1 million, and up to three years of supervised release. Sentencing is set for April 30.

Guadalupe Meraz, 41, of Medera, California, is a fugitive from justice. A warrant has been issued for his arrest.

According to the plea agreements, from June 2005 through January 2012, a group of individuals centered around Nevarez-Ayon 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 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.

The charges are the result of a nine-month investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), including 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.

POCATELLO – Eulalio Loya, 56, of Rupert, Idaho, was sentenced yesterday in United States District Court to 48 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 Loya to serve three years of supervised release. He pleaded guilty to the charge on November 5, 2012.

According to the plea agreement, on February 16, 2012, Loya arranged to distribute a quarter pound of methamphetamine in Fort Hall, Idaho, and subsequently met and sold the individual in excess of 50 grams of actual methamphetamine.

Co-defendant Jose Tapia-Lopez, 29, a Mexican national, was sentenced on January 28 to 168 months in prison for possession with intent to distribute 50 grams or more of actual methamphetamine.

The case was investigated by the Drug Enforcement Administration and the Idaho State Police, with assistance by the Minidoka County Sheriff’s Office and Cassia County Sheriff’s Office.

BOISE – Jose Silva, 30, of Boise, Idaho, pleaded guilty today in United States District Court to distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced.

According to the plea agreement, Silva admitted that on January 10, 2012, he sold methamphetamine to a confidential informant.

The charge is punishable by up to 20 years in prison, a maximum fine of $1 million, and at least three years of supervised release.

Silva is set for sentencing on June 17, 2013, before the U.S. District Judge Edward J. Lodge, at the federal courthouse in Boise.

Silva is one of 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 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.

Silva’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.

COEUR D’ALENE – Joshua Christopher Gervasi, 19, of Sandpoint, Idaho, was sentenced today to 36 months in prison for unlawfully possessing a firearm, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Gervasi to serve three years of supervised release following his prison term. Gervasi pleaded guilty to the charge on December 4, 2012.

According to court statements, in August 2012, Gervasi was stopped by a Bonner County Deputy Sheriff for a traffic violation. During the traffic stop, Gervasi told the deputy that he had a handgun in his vehicle. The Bonner County deputy located the firearm next to Gervasi, under a shirt. The handgun was a 9 millimeter with 15 rounds in the magazine. Gervasi was prohibited from possessing the firearm because of a prior felony conviction for possession of methamphetamine. He has been in custody since his arrest.

The case was investigated by the Bonner County Sheriff’s Office and the North Idaho Violent Crimes Task Force (NIVCTF). The 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.

The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.

Four Co-Conspirators Sentenced Earlier

COEUR D’ALENE – Justin Edward Egner, 36, of Springfield, Oregon, the fifth defendant in a multi-state marijuana trafficking operation, was sentenced today in United States District Court in Coeur d’Alene, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge sentenced Egner to 40 months in prison followed by four years of supervised release for conspiracy to manufacture and possess with intent to distribute marijuana. Judge Lodge also ordered Egner to forfeit $75,000 and a number of vehicles to the United States. He pleaded guilty to the charges in September 2012.

Court documents and statements made during the plea hearing indicate that between January 2008 and July 2010, Egner conspired with others, including co-defendants, to grow marijuana on property owned by Robert Baucum in Naples, Idaho. The conspiracy involved at least 100 kilograms of marijuana. During the investigation, law enforcement officers seized marijuana, marijuana growing equipment, vehicles, over $50,000 in currency and precious metals, and over $1 million in real estate.

In November 2012, four co-conspirators were sentenced to serve federal prison sentences. Robert Wayne Baucum, 57, of Scio, Oregon, was sentenced to 70 months; Charles Albert Goodenough, 41, of Houston, Alaska, to 37 months; Ronald Clifford Underwood, 55 of Albany, Oregon, to 34 months; and Raymond Earl Hogle, 51, of Albany, Oregon, to 21 months. The men were also ordered to serve between three and five years of supervised release following their prison terms.

The case was investigated by the Idaho State Police, Boundary County Sheriff’s Office, the Drug Enforcement Administration (DEA), Internal Revenue Service-Criminal Investigation, Linn County Sheriff’s Office (Oregon), and the Alaska State Troopers.

The investigation was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF). 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.

Court Orders Restitution of $365,000

COEUR D'ALENE – Sheryl Lynn Carroll, 52, of Coeur d’Alene, Idaho, was sentenced yesterday in United States District Court to 40 months in prison followed by three years of supervised release for wire fraud, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Carroll to pay restitution in the amount of $365,000 and perform 100 hours of community service following her release from prison. Carroll pleaded guilty to six counts of wire fraud on November 5, 2012.

According to the plea agreement, Carroll was hired by the City of Coeur d'Alene in October 2002, as a payroll coordinator in the Finance Department. Beginning in at least 2007, Carroll devised a scheme to divert money from City of Coeur d’Alene bank accounts for her own personal benefit. At her plea hearing last November, Carroll admitted that she diverted payments intended for the Voluntary Employee Benefit Association (VEBA), International Association of Fire Fighters (IAFF), and United Heritage Mutual (UHM), all legitimate vendors who regularly received payment from the City of Coeur d'Alene. According to the plea agreement, Carroll represented that she was sending wire transfers to the vendors when in fact she was transferring the funds into her own personal bank account. On average, Carroll made fraudulent wire transfers from one to three times a month for several years. Carroll admitted that she fraudulently received approximately $365,000 from the City of Coeur d'Alene.

In court yesterday, Carroll apologized to her former employees and the taxpayers for taking the money that was not hers.

“Ms. Carroll, through her diversion of public money for her own personal gain, violated the trust of the citizens she was supposed to serve,” said Olson. “Public employees have a solemn obligation to ensure that taxpayer money is used for the public good. The U.S. Attorney’s Office will continue to work with state and local law enforcement and prosecutors to ensure that fraud is not a part of government business. I commend the Kootenai County Prosecutor’s Office and employees of the City of Coeur d’Alene for their cooperation and assistance to the U.S. Attorney’s Office.”

The case was investigated by the Kootenai County Sheriff’s Office and the United States Secret Service.

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.

COEUR D’ALENE – Donald Paul Hankey, 28, of San Jose, California, pleaded guilty today to an indictment charging him with one count of felon in possession of a firearm, U.S. Attorney Wendy J. Olson announced. Hankey appeared before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene.

According to the indictment, on November 13, 2012, Hankey knowingly and illegally possessed a Springfield Armory 9 millimeter handgun. Hankey is prohibited from possessing firearms due to a previous felony conviction for possessing a controlled substance. The government is seeking forfeiture of the firearm.

The charge of felon in possession of a firearm is punishable by up to ten years in a prison, a maximum fine of $250,000, and up to three years of supervised release.

Hankey is scheduled to be sentenced on June 24, 2013, at the federal courthouse in Coeur d’Alene.

The case was investigated by the North Idaho Violent Crimes Task Force (NIVCTF). The 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.

The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.

POCATELLO – Cesar Urrea-Navarette, 34, of Meridian, Idaho, was sentenced in federal court today to 150 months in prison followed by five years of supervised release for possession with intent to distribute in excess of fifty grams of actual methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also fined Urrea-Navarette $1,000. He pleaded guilty to the charge on December 18, 2012.

According to the indictment, on July 7, 2011, a meeting was arranged by a third party between Urrea-Navarette and an undercover officer, who subsequently met with Urrea-Navarette in a vehicle located at a restaurant parking lot in Boise. At that meeting, Urrea-Navarette sold the undercover officer 55.10 grams of actual methamphetamine in exchange for $2,400. According to the indictment, Urrea-Navarette admitted he possessed the methamphetamine with the intent to distribute it on various dates, including July 7, 2011.

Co-defendant Ruben Moreno Sanchez, of Boise, was sentenced in September 2012 to 151 months in prison for possession with intent to distribute fifty grams or more of actual methamphetamine.

The indictment was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, in conjunction with Idaho State Police, Drug Enforcement Administration, and Boise Police Department. Other federal agencies participating in the OCDETF program include the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigation (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.

Admitted Possessing Two Firearms in Furtherance of Drug Trafficking

BOISE – Daniel William Failla, 28, of Middleton, Idaho, and Madera, California, was sentenced yesterday in United States District Court to 60 months in prison for possession of firearms in furtherance of the drug trafficking crimes of possession of cocaine and marijuana with intent to distribute, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Failla to serve three years of supervised release following his prison term and forfeit the two firearms and ammunition he possessed. Failla pleaded guilty to the charge on October 31, 2012.

According to the plea agreement, on June 18, 2012, Failla sold a pound of marijuana to an individual in Caldwell for $2,000. Two days later, on June 20, Idaho State Police executed a search warrant on the residence where Failla was living. Inside Failla’s bedroom, detectives discovered a suitcase containing approximately 378.90 grams of cocaine and 3148.2 grams of marijuana. Detectives also discovered two loaded Springfield 9 millimeter handguns and ammunition in Failla’s bedroom. According to the plea agreement, Failla also possessed a store receipt indicating he paid $670 to purchase one of the pistols and ammunition in February 2012. Detectives determined the cocaine was worth approximately $13,000; the marijuana approximately $14,000.

Failla admitted that he possessed the cocaine and marijuana with the intent to distribute it, and also that he possessed the firearms in furtherance of the drug trafficking crimes.

The case was investigated by the Idaho State Police with assistance by the Bureau of Alcohol, Tobacco, Firearms and Explosives.

POCATELLO – Adan Diaz, 21, of Fort Hall, Idaho, pleaded guilty yesterday in United States District Court to assault with a dangerous weapon, U.S. Attorney Wendy J. Olson announced.

In court yesterday, Diaz pleaded guilty to the indictment filed on September 25, 2012, and admitted that on January 28, 2012, he pointed a gun at the victim who was sitting in a vehicle near a Fort Hall residence. Diaz fired a shot, which missed the victim 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 later recovered the gun, a Keltec .380 caliber handgun.

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 May 28, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.

The case was investigated by the Fort Hall Police Department and the Federal Bureau of Investigation.

BOISE – U.S. Attorney Wendy J. Olson announced today that three individuals charged in connection with the Aryan Knights investigation were sentenced in United States District Court in Boise this week. The three sentences are the first to occur out of 23 separate individuals charged in the investigation.

Rory Vincent Palma, 38, of Tempe, Arizona, was sentenced to 41 months in prison followed by three years of supervised release for unlawful possession of a firearm. Palma, who has three prior felony convictions, and has twice previously been convicted of unlawful possession of a firearm, sold a shotgun to a confidential informant. Palma pleaded guilty to the charge on October 30, 2012.

Joshua Trent, 32, of Boise, Idaho, was sentenced to 51 months in prison followed by three years of supervised release for possessing an unregistered firearm. Trent pleaded guilty to the charge on November 19, 2012. Trent admitted that on May 7, 2012, he was in possession of two sawed-off shotguns, which he then sold to a confidential informant. Trent was also prohibited from possessing the shotguns because he was previously convicted of the felony crime of aggravated assault in 2000.

Christina Massie, 35, of Boise, was sentenced to 30 months followed by three years of supervised release for unlawful possession of a firearm. Massie pleaded guilty to the charge on December 5, 2012. Massie admitted that she assisted co-defendant Joshua Trent in the sale of two sawed-off shotguns to a confidential informant. Massie was prohibited from possessing firearms because she was previously convicted of two felony crimes for controlled substance violations.

These three 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, 16 have pleaded guilty, two have signed plea agreements but not yet entered guilty pleas, and five are still set for trial.

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 Palma case is being prosecuted by Assistant U.S. Attorney Christian Nafzger; Trent and Massie are being prosecuted by Christopher Atwood, 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.

Nephew Arrested for Obstruction of Justice

BOISE – Ammon Covino, 39, of Meridian, Idaho, was arrested yesterday for violating the conditions of his pretrial release on a Florida indictment charging violations of the Lacey Act, U.S. Attorney Wendy J. Olson announced. Federal prosecutors earlier filed a motion to revoke Covino’s bond. According to the motion, investigators learned that Covino directed his nephew, Pete Covino IV, to contact an individual in Florida and destroy certain information relating to a recent order Covino placed for undersized and illegal nurse sharks. Pete Covino IV, 20, of Star, Idaho, also was arrested and charged with obstruction of justice based on a complaint filed in the Southern District of Florida. Both men appeared in Boise federal court this morning. Ammon Covino is due back in court on Friday, March 1, to determine if he should be detained pending transfer to the Southern District of Florida. Peter Covino IV is scheduled to appear in Florida federal court on March 15.

Ammon Covino was first arrested February 21 on a November 8, 2012, Southern District of Florida indictment charging him and Christopher Conk with conspiracy to violate the Lacey Act and violating the Lacey Act by purchasing Florida protected marine life in interstate commerce. The four count indictment alleges that Covino and Conk purchased four spotted eagle rays (Aeobatus narinari) and two lemon sharks (Negaprion brevirostris) for approximately $6,300. The marine wildlife were allegedly harvested illegally and without a permit.

At his initial appearance on February 21, Covino was released on a $100,000 bond. Chief U.S. Magistrate Judge Candy W. Dale ordered Covino not to commit any new federal, state or local crimes as one of the conditions of his release. If Judge Dale determines that Covino did violate the conditions of his pretrial release or committed a new crime, she may revoke his bond.

Ammon Covino and Christopher Conk are each charged with one count of Conspiracy and three counts of Illegal Purchase and Sale of Fish/Wildlife. Each count is punishable by up to five years in prison, a maximum fine of $250,000, and three years of supervised release. The indictment also includes a forfeiture count. Pete Covino, IV, is charged with one count of obstruction of justice. That charge is punishable by up to twenty years in prison, a maximum fine of $250,000 and three years of supervised release.

The case is being investigated by U.S. Fish and Wildlife Service (USFW), National Oceanic and Atmospheric Administration (NOAA), and Idaho Department of Fish and Game.

In the federal criminal justice system, indictments and complaints are only allegations of criminal conduct and are not evidence of guilt. A person is presumed innocent until and unless proven guilty beyond a reasonable doubt in a court of law.

BOISE – U.S. Attorney Wendy J. Olson announced today that four more co-defendants–members of a southwest Idaho drug trafficking organization–were sentenced in United States District Court in Boise this week for conspiracy to possess with intent to distribute methamphetamine. This brings to 11 the number of defendants sentenced in the case.

On Monday, Chief U.S. District Judge B. Lynn Winmill sentenced Benjamine L. Vertner, 34, of Ontario, Oregon, to 138 months in prison, and Patric Campbell, 36, of Boise, to 124 months. They pleaded guilty in September 2012. Sentenced today by U.S. District Judge Justin L. Quackenbush were Kristopher Hensley, a/k/a Casey (K.C.) Hensley, 26, of Weiser, Idaho, to 51 months in prison, and Johnny A. Tambunga, 40, of Weiser, to 47 months in prison. They pleaded guilty in October 2012. The four defendants were each ordered to serve five years of supervised release following their federal prison term.

According to court documents, the defendants each admitted that from early November 2011 through May 16, 2012, they conspired with others, including co-defendants, to distribute a total of approximately 11 pounds of methamphetamine in Canyon, Payette and Washington counties in Idaho.

Co-defendant Dawson Lee Moore, 60, of Weiser, pleaded guilty on January 4 to one count of conspiracy to possess with intent to distribute methamphetamine. He is scheduled to be sentenced on March 27 at the federal courthouse in Boise.

On February 4, three co-defendants were sentenced to serve federal prison sentences on related drug trafficking charges. Jacob James Clevenger, 31, of Weiser, was sentenced to 188 months; Mario Martinez, Jr., 55, of Greenleaf, Idaho, to 57 months; and Fabian Jordano Beltran, 23, also of Weiser, to 36 months.

On January 22, three co-defendants were convicted by a federal jury of conspiracy to distribute methamphetamine. Jesus Guadalupe Sanchez a/k/a Jose Salazar, a Mexican national, Michael Dennis Morris, and Jim Allen Loveland are scheduled to be sentenced on April 8. Sanchez was also convicted of possession of methamphetamine with intent to distribute.

The case was investigated by the Idaho State Police.

BOISE – Douglas Greiner, 52, of Boise, and Bradley David Eberhart, 51, of Garden Valley, Idaho, pleaded guilty today in federal court to violating work practice standards of the Clean Air Act, U.S. Attorney Wendy J. Olson announced. Griener and Eberhart were charged in a one count information, filed separately on January 25, 2012.

According to court documents, Greiner was employed as the project superintendent and Eberhart as the on-site supervisor for Riverside Water and Sewer District’s Phase III project. During re-construction of the Water System Improvement Project, old cement asbestos pipe was encountered and improperly handled. Greiner admitted to violating the Clean Air Act’s work practice standards and waste disposal standards by knowingly causing another employee to pick up pieces of cement asbestos pipe from a dump site without ensuring proper retrieval and disposal of the asbestos pipe. Eberhart, who pleaded guilty to the same charge, admitted that by his own actions or the actions of employees he supervised, he knowingly failed to adequately wet cement asbestos pipe during cutting or disjoining operations; failed to place the asbestos material in proper containers with clear labeling; and failed to dispose of the asbestos material in a licensed facility.

The defendants each face up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release.

Greiner and Eberhart are scheduled to be sentenced on June 3, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.

The case was investigated by the U.S. Environmental Protection Agency.

BOISE – Matthew Williams, 23, of Emmett, Idaho, pleaded not guilty today in United States District Court to the charge of Public Land Set Afire, U.S. Attorney Wendy J. Olson announced. A federal grand jury in Boise indicted Williams on February 12, 2013.

According to court documents, Williams is accused of illegally setting a fire on federal public lands managed by the Bureau of Land Management (BLM) in Gem County on August 20, 2011. The indictment alleges that the wildfire burned a total of 315 acres – 221 BLM acres and 94 private land acres – southwest of Emmett on Freezeout Hill, near mile post 11 on State Highway 16.

The charge is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release.

A trial is set for April 22, 2013, before Chief U.S. District Judge B. Lynn Winmill.

The case was investigated by the Bureau of Land Management.

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.

BOISE – U.S. Attorney Wendy J. Olson announced that another member of a southwest Idaho meth trafficking conspiracy was sentenced today in federal court. The defendant, Juan Carlos Arredondo-Sicairos, 34, appeared before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise to be sentenced for the crime of possession with intent to distribute in excess of 50 grams of methamphetamine. He was sentenced to 120 months in federal prison to be followed by five years of supervised release. He pleaded guilty on November 15, 2012.

According to court documents, Arredondo-Sicairos is a Mexican national from Durango, Mexico, who operated out of Delano, California. In October, 2011, he supplied methamphetamine to the co-conspirators distributing the drug in Idaho. Five members of the conspiracy have pleaded guilty and have been sentenced: Alfredo Dominguez-Villareal, Jorge Jimenez, Tanna Spencer, Hector Morales, and Cynthia Casillas.

Three co-defendants are awaiting sentencing: Nelson Fernando Garcia-Soto, a Mexican national, on April 9; and Delia Garcia-Pineda, of Boise, and Alonso Martinez, also a Mexican national, from Delano, California, on April 10.

Co-defendant Samuel Chavez, 32, of Boise, is set for trial on March 25. He is charged with conspiracy to distribute methamphetamine and use of a communication facility in furtherance of drug trafficking.

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.

BOISE –Amando Garcia, Jr., a/k/a Amando Torres, a/k/a “Toro,” 29, was sentenced today to 96 months in prison for conspiracy to participate in a racketeering enterprise and attempted murder in aid of racketeering, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Garcia to serve five years of supervised release. He pleaded guilty to the charges on August 8, 2012.

According to the plea agreement, Garcia admitted that he conspired to commit racketeering acts, and that he committed the crime of attempted murder in aid of racketeering, all related to the Brown Magic Clica (BMC) gang, a Sureno street gang with members in the Districts of Idaho and Oregon. Garcia admitted that, on January 19, 2006, he was a passenger in a vehicle with several other BMC members which was traveling in Caldwell, Idaho. One of the BMC members fired several shots from a handgun at a passing vehicle, which the BMC members believed contained rival gang members. A man delivering newspapers was a passenger in the vehicle and was struck by one of the bullets. Garcia admitted that he contacted a witness to the shooting and told her not to cooperate with the police investigation.

Garcia also admitted that, on August 23, 2008, he fired a “Mini-14” .223 rifle and a Ruger .25 pistol towards another BMC gang member, striking him several times, with the intent to kill him. Garcia and other BMC members considered the victim and his family members to be enemies of BMC because members of the family testified at the trial of a BMC leader charged with murder in Payette County, Idaho. During his plea, Garcia admitted that BMC members were expected to engage in acts of violence towards witnesses in criminal investigations against BMC members, and against other BMC members who do not follow BMC rules. Garcia further 2 admitted that the attempted murder was committed for the purpose of gaining entrance to, or maintaining or increasing position in the BMC gang.

During the sentencing hearing, Garcia renounced his membership in the BMC gang, stating “I am no longer a gang member.” To date, eight co-defendants have been sentenced to federal prison for racketeering crimes related to the BMC gang. Mathew Grover a/k/a “Dreamin” was sentenced to 51 months in prison; Samson Torres a/k/a “Gremlin,” 70 months; Salvador Apodaca a/k/a “Bugz,” 60 months; Jessie Rodriguez a/k/a “Pelon,” 115 months; Adam Gomez “Lil Toro,” 60 months; Adelaido Gomez, a/k/a “Guy,” 125 months; Alfredo Castro a/k/a “Papos,” 168 months; and Juan Gonzalez, a/k/a “Chango,” 37 months.

Co-defendant Oscar Garcia a/k/a “Bubba,” a/k/a “Tiny,” pleaded guilty on January 18, 2013, to Conspiracy to Participate in a Racketeering Enterprise and Attempted Murder in Aid of Racketeering; sentencing is set for April 9 at the federal courthouse in Boise. Juan Jimenez a/k/a “Loco,” pleaded guilty on January 17, to Conspiracy to Participate in a Racketeering Enterprise; sentencing is set for April 8.

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, named “Operation Black Magic,” included the cooperative law enforcement efforts of the Treasure Valley Metro Violent Crime Task Force, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Ada County Sheriff’s Office, the Boise Police Department, the Caldwell Police Department, the Canyon County Sheriff’s Office, the Idaho Department of Corrections, the Malheur County Sheriff’s Office, the Meridian Police Department, the Nampa Police Department, the Nyssa Police Department, the Ontario Police Department, the Oregon State Police, and the U.S. Attorney's Office. The investigation is ongoing.

Escobedo-Gonzalez is Final Defendant Sentenced in OCDETF Case

BOISE – Jose Ramon Escobedo-Gonzalez, 35, a Mexican national, was sentenced today in United States District Court to 168 months in prison for conspiracy to distribute a controlled substance and 60 consecutive months for possession of a firearm in furtherance of drug trafficking, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Escobedo-Gonzalez to serve five years of supervised release after his prison term and forfeit numerous firearms. He pleaded guilty to the charges on March 21, 2012.

According to the plea agreement, beginning in September 2009 and continuing until mid-January 2011, Escobedo-Gonzalez and his co-defendants conspired to distribute more than five pounds of methamphetamine in Canyon County, Idaho. According to trial testimony, the organization brought pounds of methamphetamine into Idaho from surrounding states and distributed it throughout the Treasure Valley. During the investigation, law enforcement officers seized five pounds of methamphetamine, marijuana, numerous firearms, vehicles, and more than $30,000 in currency. According to the plea agreement, Escobedo-Gonzalez knowingly gave and received various firearms in exchange for receiving and distributing methamphetamine. Escobedo-Gonzalez further admitted he knowingly possessed various firearms for protection while engaged in drug transactions in furtherance of the conspiracy.

Co-defendants sentenced earlier include Mexican nationals Jorge Luis Cardoza, Lourdes Muro-Garcia, Diego Gomez-Lara, Antony Alegria Zedeno, Juventino Lara-Plancarte, and Fabian Nunez-Garcia; and Victor Chavez-Garcia, Leann Atkisson, Ronald Garcia, and Benjamin Prieto, all of Nampa, Idaho. The co-defendants received a combined total of over 75 years in prison.

In a separate but related case, Ana Reyes a/k/a Ana Gonzales, 25, Yolanda Yvette Salazar, 48, both of Nampa, and Nereida Lopez a/k/a Nereida Munoz, 30, of Caldwell, pleaded guilty in January 2013, to using a communication facility in furtherance of a drug offense. According to the plea agreements, the defendants admitted to using a cellular phone to make arrangements with Escobedo-Gonzalez to supply them with methamphetamine. The defendants each face up to four years in prison, a maximum fine of $250,000, and up to one year of supervised release. Sentencings are scheduled in April 2013.

“Appropriately, Mr. Escobedo-Gonzalez and his co-conspirators will spend lengthy terms in federal prison,” said Olson. “Methamphetamine trafficking and firearms are a dangerous combination for Idaho’s communities. We will continue to work closely with our federal, state and local law enforcement partners to ensure that those who bring this horribly addictive drug into our state and those who further their criminal activity with firearms are identified, prosecuted and sent to prison.”

The Organized Crime/Drug Enforcement Task Force (OCDETF) case, named “Operation Flamethrower,” is the result of a year-long, multi-agency investigation. Investigators and prosecutors from federal, state, and local agencies cooperated in the arrests and seizures. It included the cooperative law enforcement efforts of the Nampa Police Department, Drug Enforcement Administration, Canyon County Sheriff's Office, Canyon County SWAT team, Metro Violent Crimes Task Force, Idaho State Police, Caldwell Police Department, Ada County Sheriff's Office, Boise Police Department, and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), Canyon County Prosecutor's Office, District 3 Probation and Parole, and the United States Attorney'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.

Court Orders $71,973 in Restitution

BOISE – Katrina Telleria, 35, of Boise, Idaho, was sentenced today to 12 months in prison for theft of government property, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Telleria to serve three years of supervised release and pay restitution of $71,973 to the Bureau of Land Management. On December 17, 2012, Telleria pleaded guilty to three counts of theft of government gift cards, one count of making a false statement to a department or agency of the United States, and one count of theft of government electronics equipment.

According to the plea agreement, from 2008 to 2011, Telleria was employed as a Bureau of Land Management (BLM) administrative assistant authorized to use a government-issued MasterCar to make purchases for office supplies, firefighting operations, and administrative purposes, including an incentive gift card program in the BLM’s Boise District Office Fire Program. According to the plea agreement, the gift cards purchased by Telleria were to be distributed to district office fire supervisors to give as an award to employees. Telleria instead used her government-issued MasterCard to purchase “general-use gift cards” (American Express cards, Visa cards, and cards issued by MasterCard), which she then stole and appropriated to her own personal use. According to the plea agreement, Telleria admitted that on at least 38 occasions, she acquired the general-use gift cards and specific electronic items on her government MasterCard, and then stole the gift cards and the electronic property. Telleria further agreed that total gift card losses to the government amount to $71,973. The government will receive full restitution under the court’s order.

“Ms. Telleria violated her public trust for personal gain,” said Olson. “Her conviction and sentence sends the strong message that those responsible for government resources have an obligation to all taxpayers to act solely in the public interest. I commend the BLM for a strong investigation.”

“After a thorough investigation by BLM's Law Enforcement Office and the U.S. Attorney's Office, a government employee has been convicted for the fraudulent diversion of government funds,” said BLM State Director Steve Ellis. “I am proud of the diligence and hard work of these law enforcement officers and the hundreds of BLM employees who serve in Idaho. That any governmen employee would consider their own personal gain ahead of their solemn public trust is unfortunate. This investigation and its outcome show that as public servants we will neither whitewash nor tolerate employee conduct that diverts public funds for personal gain.”

The case was investigated by the BLM's Office of Law Enforcement and Security.

Florida Indictment Alleges Two Illegally Purchased Marine Life

BOISE – Ammon Covino, 39, of Meridian, Idaho, and Christopher Conk, 40, of Middleton, Idaho, were arrested today for violations of the Lacey Act, U.S. Attorney Wendy J. Olson announced. A federal grand jury in the Southern District of Florida returned a sealed indictment on November 8, 2012, charging the defendants with conspiracy to violate the Lacey Act and violating the Lacey Act by purchasing Florida protected marine life in interstate commerce.

The four count indictment, which was unsealed today, alleges that Covino and Conk purchased four spotted eagle rays (Aeobatus nairnari) and two lemon sharks (Negaprion brevirostris) for approximately $6,300. The marine wildlife were allegedly harvested illegally and without a permit.

Covino and Conk appeared this afternoon before Chief U.S. Magistrate Judge Candy W. Dale at the federal courthouse in Boise. The court ordered the defendants to appear on March 15, 2013, before U.S. Magistrate Judge Lurana S. Snow, at the Sidney M. Aronovitz Federal Courthouse in Key West, Florida.

The defendants are each charged with one count of Conspiracy and three counts of Illegal Purchase and Sale of Fish/Wildlife. Each count is punishable by up to five years in prison, a maximum fine of $250,000, and at least three years of supervised release. The indictment also includes a forfeiture count.

The case is being investigated by U.S. Fish and Wildlife Service (USFW), National Oceanic and Atmospheric Administration (NOAA), and Idaho Department of Fish and Game.

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.

Defendant Ordered to Pay Over $85,000 in Restitution to the IRS

COEUR D'ALENE – Gary Raymond Harvey, 71, of Peck, Idaho, was sentenced today to 36 months in prison for making false claims for refund from the Internal Revenue Service, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Harvey to serve three years of supervised release following his prison term and pay $ 85,217.94 in restitution. Harvey pleaded guilty to the charges on November 1, 2012, during his trial.

During the trial, evidence showed that Harvey created and filed tax returns for the entity The Organic Assembly of Circle JB, claiming that the entity was entitled to tax refunds ranging from $8,851.80, to $54,080, for tax years 2002 through 2010. During Harvey’s cross-examination on the fourth day of trial, he admitted that he knew he was not entitled to the refunds and changed his plea to guilty on all counts charged in the indictment. A federal grand jury had indicted Harvey on August 23, 2011, on ten counts of making a false claim for a refund.

“All citizens have a solemn obligation to pay taxes,” said Olson. “Those who claim false refunds cheat not only the government but also other taxpayers. This sentence sends the strong message that those who fail to pay their equal share will be punished.”

The case was investigated by Internal Revenue Service-Criminal Investigation.

COEUR D’ALENE – Kip David Harris, 38, of Boulder, Montana, was sentenced yesterday in United States District Court in Coeur d’Alene to three years’ probation for making a false statement, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Harris to pay a $750 fine. He pleaded guilty to the charge on December 4, 2012.

According to court documents, Harris was the lead superintendent of the Dover Bridge Project, the majority of which was funded by the American Recovery and Reinvestment Act of 2009 through the Federal Highway Administration, a component of the United States Department of Transportation. The project called for the existing steel-truss bridge located on U.S. Highway 2 near Dover, Idaho, to be replaced with a new steel bridge. According to court documents, Harris directed laborers to modify nonconforming anchor bolts so it would appear to the inspection team that the bolts were in compliance. Harris admitted that he knew the anchor bolts did not conform to contract specifications. The safety and soundness of the project was not affected.

The case was investigated by the United States Department of Transportation and the Federal Bureau of Investigation.

COEUR D’ALENE – Debora J. Zimmerman, 46, of Spokane, Washington, was sentenced today in United States District Court to five years’ probation and four weekends in jail for theft from an Indian Tribal Organization, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Zimmerman to pay $28, 275.93 in restitution. She pleaded guilty to the charge on September 21, 2012.

According to court documents, between September 2008, and September 2010, Zimmerman, who was the Finance Operations Director for the Coeur d’Alene Tribal Housing Authority, stole money by issuing herself unauthorized paychecks, making unapproved purchases, and through other means.

“Those who are entrusted with public funds have a solemn obligation to act in the public interest,” said Olson. “Ms. Zimmerman violated the trust placed in her by the Coeur d’Alene Tribe. She put personal gain ahead of her public obligation. Appropriately, as a part of her sentence, Ms. Zimmerman must reimburse the Coeur d’Alene Tribe the money that she stole. I commend the thorough investigation in this case.”

The case was investigated by the Federal Bureau of Investigation and U.S. Department of Housing and Urban Development Office of Inspector General.