District of Idaho
Press releases recorded for this federal judicial district.
Woman Sentenced for Trafficking Cocaine in N. IdahoRead the Press Release
COEUR D'ALENE – Barbara Jeanne Willoughby, 23, of Paramount, California, was sentenced today in United States District Court in Coeur d’Alene, to 18 months in prison 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 Willoughby to serve three years of supervised release. She pleaded guilty to the charge on June 18, 2012.
Willoughby admitted in court that on March 18, 2012, she conspired with co-defendant Hector Rivera to distribute 500 grams or more of cocaine. According to court documents, Willoughby drove the rental vehicle from California to Idaho because Rivera’s license was suspended. Law enforcement stopped the vehicle because it had no front license plates. During this initial contact, law enforcement became suspicious of Willoughby and Rivera’s behavior. A search of the vehicle discovered cocaine in a backpack in the cab of the truck.
Rivera, 35, also of Paramount, California, pleaded guilty on November 5, 2012, to one count of conspiracy to possess with intent to distribute cocaine. Sentencing is set for April 1. He faces a minimum term of five years in prison, a maximum fine of $5 million, and at least five years of supervised release.
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.
Three Sentenced for Trafficking Meth in Southwest IdahoRead the Press Release
Ten Co-Defendants Await Sentencing on Related Drug Charges
BOISE – U.S. Attorney Wendy J. Olson announced today that three members of a Southwest Idaho drug trafficking organization were sentenced to serve federal prison sentences for conspiracy to distribute methamphetamine. The defendants appeared before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
Jacob James Clevenger, 31, of Weiser, Idaho, 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 in prison. The defendants were each ordered to serve five years of supervised release after their prison term. Clevenger and Martinez pleaded guilty in October 2012; Beltran pleaded guilty in July.
According to court documents, from early November 2011 through May 16, 2012, the defendants conspired with others, including co-defendants, to distribute a total of approximately 11 pounds of methamphetamine in Canyon, Payette and Washington counties in Idaho.
Seven co-defendants pleaded guilty last year to related drug trafficking charges and are currently awaiting sentencing. Patric Campbell and Benjamine L. Vertner are set for sentencing on February 25; Amber Hites on February 26; Kristopher Hensley, Johnathan E. Chapman, and Johnny A. Tambunga on February 27; and Dawson Lee Moore on March 27.
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.
Man Sentenced for Distributing Meth in Orofino AreaRead the Press Release
COEUR D'ALENE – Jacob Custodio, 31, of Apple Valley, California, was sentenced today in federal court in Coeur d’Alene to 48 months in prison for distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Custodio to serve four years of supervised release following his prison term and perform 120 hours of community service. He pleaded guilty to the charge on July 16, 2012.
According to court testimony, Custodio admitted that on December 22, 2011, he provided what he knew to be methamphetamine to co-defendant John Gilbert Rincon, in Orofino, Idaho.
On January 18, 2012, a federal grand jury in Coeur d'Alene indicted Custodio and three co-defendants for conspiracy to distribute methamphetamine and distributing methamphetamine. Two defendants, April L. Lauby and Robin L. Spencer, both of Orofino, pleaded guilty to conspiracy to distribute methamphetamine and were sentenced last year to serve federal prison sentences. Lauby was sentenced on July 17, 2012, to 12 months plus one day in prison; Spencer was sentenced on September 10, 2012, to 24 months. According to court testimony, Lauby admitted that she assisted in the distribution of methamphetamine by driving individuals to drug transactions and being present during the transactions. Spencer admitted that she used her house as a stash house and helped to distribute methamphetamine.
Co-defendant John Gilbert Rincon, 41, of Orofino, pleaded guilty on December 4 to conspiracy to distribute 50 grams or more of methamphetamine. Sentencing is set for March 4 at the federal courthouse in Coeur d’Alene. He faces a minimum sentence of five years in prison, a maximum fine of $5 million, and at least four years of supervised release.
The case was investigated by the Clearwater County Sheriff's Office, Idaho State Police, and Federal Bureau of Investigation.
Nampa Man Pleads Guilty to Illegally Possessing A FirearmRead the Press Release
BOISE – Jesus Manuel Zuniga, 28, of Nampa, Idaho, pleaded guilty yesterday in United States District Court to an information charging him with one count of unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, 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. Because Zuniga had previously been convicted in 2010 of unlawful possession of a firearm, a federal offense punishable by a term of imprisonment exceeding one year, he is prohibited from possessing firearms.
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.
Sentencing is set for April 10, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
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.
Eastern Idaho Man Sentenced for Distributing MethRead the Press Release
POCATELLO – Ryan Wasia, 26, of Pingree, Idaho, was sentenced yesterday in United States District Court in Pocatello to 40 months in prison followed by four years of supervised release for possession with intent to distribute 50 grams or more of a mixture containing methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also fined Wasia $1,000. He pleaded guilty to the charge on August 29, 2012.
According to the plea agreement, on April 4, 2012, Wasia was stopped in a vehicle in Fort Hall, Idaho, having just left a residence. Law enforcement officers recovered 127 grams of methamphetamine from the vehicle. In a subsequent interview, Wasia admitted the methamphetamine was his and that he had just sold additional methamphetamine to a person at the residence in Fort Hall. Wasia further admitted he possessed the methamphetamine and intended to distribute it to another person.
The case was investigated by the Idaho State Police and the Fort Hall Police Department.
Twin Falls Man Sentenced to Six Years for Trafficking MethRead the Press Release
BOISE – Ramon G. Zamarripa, 54, of Twin Falls, Idaho, was sentenced today in United States District Court to 72 months in prison for possession of a controlled substance with intent to distribute and 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 Zamarripa to serve five years of supervised release and forfeit the firearm found in his possession.
Zamarripa was charged in a superseding information with possession with intent to distribute 48.12 grams of methamphetamine and possession of a .25 caliber handgun on March 12, 2012, in furtherance of drug trafficking. At his plea hearing on November 13, 2012, Zamarripa admitted that he possessed the methamphetamine with the intent to distribute it and possessed the firearm to facilitate a drug trafficking crime.
The case was investigated by the Twin Falls Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Serial Sex Offender from Utah Sentenced to Eight Years in PrisonRead the Press Release
BOISE – Bo B. Burdick, 21, of Tremonton, Utah, was sentenced today in United States District Court in Boise to 96 months in prison followed by ten years of supervised release for travel with intent to engage in illicit sexual contact, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also imposed a no contact order and ordered Burdick to pay $21,683.83 in restitution to the victim. Burdick pleaded guilty to the charge on August 20, 2012.
According to the plea agreement, in January 2011, Burdick solicited a “Facebook” friend request from a 13-year-old girl living in Idaho. The girl accepted and learned that Burdick was a volunteer firefighter and EMT living in Utah. Burdick and the girl began to chat via text messaging, using cellular telephones and an iPod. Early in their online relationship, Burdick sent the girl a nude picture of himself, and the girl complied with Burdick's request to send him sexually provocative pictures of herself, including pictures of her in underwear and fully nude. The girl e-mailed the pictures from her e-mail account to the e-mail address provided by Burdick.
Idaho State Police Cyber Crimes Unit recovered text messages and e-mail sent in January 2011 from the girl to Burdick, and from Burdick to the girl. The messages clearly show that the girl told Burdick she was 13 years old. They also show Burdick giving the girl instructions about the kinds of pictures he wanted her to send.
According to the plea agreement, Burdick was interviewed by agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations in Utah in March 2012. At the interview, Burdick admitted that he traveled from Utah to Idaho to visit the girl on four separate occasions in 2011; that he rented hotel rooms and that he and the girl engaged in sexual intercourse. Burdick also told investigators that he had saved nude pictures of the girl on his laptop computer. Initial forensic analysis of the computer by Idaho State Police identified files in folders containing digital images of the girl in various stages of undress, images of other young females, and pictures of recognizable locations in three Idaho towns. An SD card contained many of the same images recovered from the laptop. Examination of Burdick's cellular phone also found thumbnail images of the girl, which were transferred to the laptop.
According to court documents, during the investigation, investigators discovered that the 13-year-old in this case is not Burdick's only victim. Burdick admitted that between the ages of 17 and 20, he had sexual encounters with 11 females in Utah whom he had met online. Burdick told investigators four of the females were under the age of 16, including the Idaho victim. Burdick admitted that when he was age 19, he had a sexual relationship with a 14-year-old female in Utah and fathered a child with her.
“Mr. Burdick’s eight year sentence sends the strong message that those who sexually exploit children will receive significant punishment,” said Olson. “The criminal conduct in this case is tragic for the victim and her family. The dangers of sexual predators who lurk on the internet is real and persistent. Idaho law enforcement at all levels will work together to aggressively pursue these offenders.”
“This case illustrates the importance of parental involvement in a child's digital life,” said Brad Bench, special agent in charge of HSI Seattle, who oversees HSI investigations in Idaho. “If not for the intervention of the girl's parents who discovered and reported the illicit activity, Burdick could be free to victimize others. While parents are the first line of defense in protecting children, they are not alone. Every day HSI and its law enforcement partners work tirelessly to investigate, arrest and prosecute child predators.”
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Idaho State Police.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, visit www.usdoj.gov/psc. For more information about internet safety education, visit www.usdoj.gov/psc and click on the tab “resources.” For more information about registered sex offenders in Idaho, visit www.isp.idaho.gov/sor_id/.
Mexican National Sentenced to 14 Years for Distributing Meth in the Magic ValleyRead the Press Release
POCATELLO – Jose Tapia-Lopez, 29, a Mexican national formerly living in Heyburn, Idaho, was sentenced today in United States District Court to 168 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 Tapia-Lopez to serve five years of supervised release. He pleaded guilty to the charge on November 5, 2012.
According to the plea agreement, on April 11, 2012, Tapia-Lopez arranged to distribute a half pound of methamphetamine to an individual in Twin Falls, Idaho. While en route to the meeting, law enforcement officers attempted to stop Tapia-Lopez’s vehicle. Tapia-Lopez tried to elude the officers, during which he threw methamphetamine from the car’s window. The officers recovered the substance. Forensic analysis later determined the substance contained in excess of fifty grams of actual methamphetamine.
On November 5, 2012, Tapia-Lopez’s co-defendant, Eulalio Loya, 56, of Rupert, Idaho, pleaded guilty to possession with intent to distribute 50 grams or more of actual methamphetamine. 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. Loya is scheduled to be sentenced on February 11, 2013, at the federal courthouse in Pocatello. He faces a minimum sentence of ten years up to life in prison, a maximum fine of $10 million, and at least five years of supervised release.
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.
Meridian Man Pleads Guilty to Gun CrimeRead the Press Release
BOISE – Douglas Todd Campbell, Jr., 33, of Meridian, Idaho, pleaded guilty today in United States District Court to possession of a firearm and ammunition by a prohibited person, U.S. Attorney Wendy J. Olson announced.
According to court documents and Campbell’s admission in court, on January 10, 2012, Campbell, then being an unlawful user of a controlled substance, knowingly possessed a Springfield .45 firearm and five rounds of .45 ammunition.
The charge of possession of a firearm and ammunition by a prohibited person is punishable by up to ten years in prison, a maximum fine of $250,000, and at least three years of supervised release.
Sentencing is set for April 22, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and 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.
Magic Valley Man Pleads Guilty to Bankruptcy FraudRead the Press Release
BOISE – Christopher Brandon Craner, 32, of Buhl, Idaho, pleaded guilty today in United States District Court to one count of bankruptcy fraud-asset concealment, U.S. Attorney Wendy J. Olson announced. Craner was indicted by a federal grand jury on May 8, 2012.
According to the plea agreement, on March 24, 2009, Craner filed for Chapter 11 bankruptcy. Simultaneously with the bankruptcy petition, Craner filed a schedule of assets. According to the plea agreement, Craner admitted that between March 24 and May 4, 2009, he knowingly and fraudulently concealed from creditors and the bankruptcy trustee, his interest in a “Ranger Boat Certificate,” which had been awarded to him on March 14, 2009.
Bankruptcy fraud is punishable by up to five years in prison, a maximum fine of $250,000, and at least three years of supervised release.
Sentencing is set for April 22, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The case was investigated by United States Trustee’s Office.
Blackfoot Man Pleads Guilty to Involuntary ManslaughterRead the Press Release
POCATELLO –Kendall Perry, 21, of Blackfoot, Idaho, pleaded guilty today in United States District Court in Pocatello to involuntary manslaughter, U.S. Attorney Wendy J. Olson announced.
Perry, an enrolled member of the Shoshone-Bannock Tribes, was indicted by a federal grand jury on October 23, 2012, on one count of involuntary manslaughter. According to the indictment, on June 30, 2012, Perry, who was intoxicated, was operating a 1999 GMC Yukon with gross negligence, causing a roll-over accident near the intersection of Philbin and Sheepskin Road that resulted in the death of Cullen Fightsover, a passenger in the vehicle.
An accident reconstructionist said the vehicle was traveling at 74 mph in a 50 mph zone. Perry ran a stop sign, went through the intersection and then lost control and rolled into a field, ejecting the three occupants from the vehicle. Fightsover was life-flighted, but was pronounced dead at the hospital.
Perry admitted drinking hard liquor and beer and admitted smoking marijuana in the hours before the crash. Perry admitted he was “buzzed” from the alcohol he had consumed.
The charge is punishable by up to eight years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for April 29, 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.
Blackfoot Man Pleads Guilty to ArsonRead the Press Release
POCATELLO –Trevor James Hurley, 20, of Blackfoot, Idaho, pleaded guilty yesterday in United States District Court in Pocatello to arson, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, in the early morning hours of August 6, 2012, Hurley set fire to a manufactured home or trailer located on the Fort Hall Shoshone Bannock Indian Reservation. Witnesses observed Hurley earlier in the night purchasing cotton balls and lighter fluid at a convenience store. Hurley later returned to the convenience store, bragging about how he had set someone's trailer on fire. In an interview with law enforcement on September 11, 2012, Hurley explained how he poured lighter fluid on the cotton balls, lit them on fire, and pushed them through a hole in the screen to the trailer's master bedroom window. He said that the trailer ignited fast, flames shot up, and then he ran back to his friends in a nearby vehicle. Although the trailer was a total loss, and another person was sleeping in a camp trailer located approximately ten feet away, no one was injured in the fire.
The charge is punishable by up to 25 years in prison, a maximum fine of $250,000, and up to five years of supervised release.
Sentencing is set for April 30, 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, Idaho State Fire Marshal, and the Bingham County Sheriff's Office.
Four Co-Conspirators Plead Guilty to Federal Drug Trafficking, Money Laundering ChargesRead the Press Release
To Date, 13 Defendants Have Pleaded Guilty in the Case
POCATELLO – Four more members of an Idaho Falls area drug trafficking organization pleaded guilty in United States District Court in Pocatello, U.S. Attorney Wendy J. Olson announced.
Isidoro David Herrera, 31, of Idaho Falls, Idaho, pleaded guilty on Wednesday to conspiracy to possess with intent to distribute in excess of 50 grams of methamphetamine. The charge is punishable by a minimum term of ten years up to life in prison, a maximum fine of $10 million, and at least five years of supervised release.
Alberto Abarca, 22, of Idaho Falls, pleaded guilty on Wednesday to possession with intent to distribute methamphetamine. Nicolas Levi Olsen, 29, of Idaho Falls, Idaho, pleaded guilty today to aiding and abetting the possession of methamphetamine with intent to distribute. The charges are punishable by up to 20 years in prison, a maximum fine of $1 million, and at least three years of supervised release.
Ana Rosa Valdez-Ceja, 26, of Shelley, Idaho, pleaded guilty on Wednesday to money laundering, which is punishable by up to 20 years in prison, a maximum fine of $500,000, and up to three years of supervised release.
According to the plea agreements, from June 2005 through January 2012, a group of individuals centered around co-defendant Samuel 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 defendants 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 government is seeking forfeiture of assets derived from the criminal offenses.
Abarca and Valdez-Ceja are scheduled to be sentenced on April 29, and Herrera and Olsen on April 30, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
Nine co-conspirators pleaded guilty in December 2012 to related drug trafficking charges. Sentencings are set for March 6, 7 and 8.
The remaining defendant, Guadalupe Meraz, 41, of Madera, California, did not appear in court as scheduled. A warrant for his arrest has issued.
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 organization
Federal Judge Sentences Two for Trafficking MethRead the Press Release
Seven Await Sentencing for Conspiracy, Distributing Meth, Money Laundering
BOISE – Jimenez Valencia a/k/a Jorge Jimenez, 25, a Mexican national formerly living in Nampa, Idaho, and Tanna Spencer, 30, of Parma, Idaho, were sentenced to serve federal prison sentences today, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill sentenced Valencia to 57 months for conspiracy to distribute methamphetamine; Spencer was sentenced to 15 months for possession with intent to distribute methamphetamine. Each will serve three years of supervised release following their release from prison. They pleaded guilty to the charge on November 8, 2012.
According to court documents, beginning in January 2011 and continuing through December 16, 2011, the defendants conspired with co-defendant Alfredo Dominguez-Villareal and others to possess and distribute in excess of 50 grams of methamphetamine in the Treasure Valley, and transported methamphetamine from California to Idaho for this purpose.
Seven co-defendants entered into plea agreements last year on related charges and currently await sentencing: Cynthia Casillas, 24, and Juan Carlos Arredondo-Sicairos a/k/a Victor Kalil Medina-Feliciano, 34, both of Delano, California, on February 5; Alfredo Dominguez-Villareal a/k/a Alfredo Vasquez-Dominguez, 29, and Nelson Fernando Garcia-Soto, 39, both of Boise, on February 6; Hector Morales, 29, of Tallamantez, California, on February 7; and Delia Garcia-Pineda, 44, of Boise, and Alonso Martinez, 26 a Mexican national, of Delano, California, on April 10.
The remaining defendant, Samuel Chavez, 32, of Boise, is set for trial on March 25 at the federal courthouse in Boise. He is charged with conspiracy to distribute methamphetamine and use of a communication facility.
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.
Rexburg Man Charged with Improper Storage and Disposal of Hazardous WasteRead the Press Release
POCATELLO – Max Spatig, 71, of Rexburg, Idaho, the owner of MS Enterprises, pleaded not guilty in federal court today to charges that he knowingly stored and disposed of hazardous waste on his property, a violation of the Resource Conservation and Recovery Act, U.S. Attorney Wendy J. Olson announced. Spatig was charged in a one count indictment filed in United States District Court in Pocatello on December 11, 2012.
According to the indictment, on July 8, 2010, a total of 3,478 containers of waste materials were found on Spatig’s property in Rexburg. The indictment alleges that samples taken from the containers showed the contents were hazardous waste due to ignitability and corrosivity characteristics. According to the indictment, the contents of the containers were shipped to a hazardous waste disposal facility, incurring a cost to the federal government of $498,652. Neither MS Enterprises nor Spatig had a permit from the Environmental Protection Agency (EPA) for the storage, treatment or disposal of hazardous waste.
A trial is set for March 4, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case is being investigated by the U.S. Environmental Protection Agency-Criminal Investigation Division and the Idaho Department of Environmental Quality.
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.
Federal Jury Convicts Three Men for Conspiring to Distribute MethRead the Press Release
Twelve Co-Defendants Await Sentencing
BOISE – U.S. Attorney Wendy J. Olson announced that Jesus Guadalupe Sanchez a/k/a Jose Salazar, 31, a Mexican national, Michael Dennis Morris, 42, of Ontario, Oregon, and Jim Allen Loveland, 56, of Boise, Idaho, were convicted in United States District Court yesterday of conspiracy to distribute methamphetamine. Sanchez was also convicted of possession of methamphetamine with intent to distribute. They are scheduled to be sentenced on April 8, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
During the six-day trial, the jury heard evidence that from early November 2011 through May 16, 2012, the defendants conspired with others, including their co-defendants, to distribute a total of approximately 11 pounds of methamphetamine in Canyon, Payette and Washington counties in Idaho.
Eleven co-defendants pleaded guilty last year to one count of conspiracy to distribute methamphetamine and are currently awaiting sentencing: Patrick Campbell, 36, of Boise, and Rachel Coblentz, 25, of Wrangell, Alaska, formerly of Weiser, are set for sentencing on February 1; Mario Martinez, Jr., 55, of Greenleaf, Idaho, Fabian Jordano Beltran, 23, and Jacob James Clevenger, 31, both of Weiser, on February 4; Amber Hites, 26, of Weiser, on February 26; Benjamine L. Vertner, 34, of Ontario, Kristopher Hensley, 26, of Weiser, and Johnathan E. Chapman, 27, of New Plymouth, Idaho, on February 27; Johnny A. Tambunga, 40, of Weiser, on February 28; and Dawson Lee Moore, 60, of Weiser, on March 27. Amy Maria Cavazos, 38, of Weiser, pleaded guilty to one count of possession of methamphetamine with intent to distribute and will be sentenced on February 1.
The charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine each carry a mandatory minimum sentence of ten years with the possibility of up to life in prison, a $10 million fine, and at least five years of supervised release. The charge of possession of methamphetamine with intent to distribute carries a mandatory minimum sentence of five years in prison, a maximum fine of $5 million, and not less than four years of supervised release.
“These convictions underscore federal, state and local law enforcement's commitment to aggressively prosecute drug traffickers who damage our rural communities, prey upon Idahoans and cause damage that ripples through our state,” said Olson. “Methamphetamine is a highly addictive drug. The U.S. Attorney's Office and its law enforcement partners will use all lawful means to bring to justice and seek punishment for those who traffic in it.” Olson added that in 2012, the U.S. Attorney’s Office had a strong record of prosecuting methamphetamine cases – 73 defendants were sentenced collectively to a total of 6,694 months – over 557 years – in federal prison for methamphetamine crimes.
The case was investigated by the Idaho State Police.
Homedale Man Pleads Guilty to Possessing Sexually Explicit Images of MinorsRead the Press Release
BOISE – David Jay Wheeler, 70, of Homedale, Idaho, formerly of Declo, Idaho, pleaded guilty today in U.S. District Court in Boise to possession of sexually explicit images of minors, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, members of the Idaho Internet Crimes Against Children (ICAC) Task Force received information that between at least September 2011 and April 4, 2012, Wheeler had regularly used peer-to-peer file sharing software on his computer to access child pornography. A search warrant was executed at his home in Declo, which resulted in the seizure of a computer and computer storage media that contained sexually explicit images and videos of minors as young as four years of age. Court records state that Wheeler was sitting at a desktop computer and was in the process of downloading child pornography videos at the time the investigators executed the search warrant.
The National Center for Missing and Exploited Children reviewed the child pornography seized from Wheeler and reported that the material had been produced depicting child sexual abuse victims from Idaho, Washington, Montana, Colorado, North Carolina, Pennsylvania, Texas, Nevada, Hawaii, California, Illinois, Delaware, Georgia, Florida, New Hampshire, New Jersey, the Netherlands, France, United Kingdom, Belgium, Italy, Germany, Ukraine, Canada, Denmark, Sweden, Germany, Norway, Austria, and Brazil.
The charge of possessing sexually explicit images of minors carries a maximum punishment of up to ten years in prison, a fine up to $250,000, and a minimum term of five years up to lifetime supervised release.
Wheeler is set for sentencing on April 9, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was investigated by officers from the Boise Police Department, assisted by agents and investigators from the Idaho Attorney General's Office, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Idaho State Police, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), all members of the ICAC Task Force.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, visit www.usdoj.gov/psc. For more information about internet safety education, visit www.usdoj.gov/psc and click on the tab “resources.” For more information about registered sex offenders in Idaho, visit www.isp.idaho.gov/sor_id/.
Winchester Man Indicted for First Degree MurderRead the Press Release
COEUR D’ALENE – Kenneth D. Broncheau, 48, of Winchester, Idaho, was indicted yesterday by a federal grand jury in Coeur d’Alene for first degree murder, U.S. Attorney Wendy J. Olson announced. An initial appearance in federal court has not been set.
The indictment alleges that on June 21, 2012, within the boundaries of the Nez Perce Indian Reservation, Broncheau, an enrolled tribal member, shot and killed Carol Haskell, his mother. Broncheau was detained at the scene. He is currently in the custody of Nez Perce Tribal Police.
The charge of first degree murder is punishable by life in prison and a maximum fine of $250,000.
The case was investigated by the Federal Bureau of Investigation, Nez Perce Tribal Police, Idaho State Police, and the Lewis County Sheriff’s Office.
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.
Another Guilty Plea in Aryan Knights CaseRead the Press Release
BOISE – Dallas Tyler Thompson, 31, of Boise, 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, Thompson admitted that on June 19, 2012, he was in possession of a Glock 9 millimeter handgun. Thompson was prohibited from possessing the handgun because he was previously convicted of the felony crime of aggravated battery in 2001. Thompson’s case is part of a larger, ongoing investigation involving the Aryan Knights gang, in which twenty-two people were charged with drug trafficking and firearms violations. Thompson is the twelfth person to plead guilty.
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.
Thompson is set for sentencing on April 8, 2013, before Chief U.S. District Judge B. Lynn Winmill, at the federal courthouse in Boise.
The cases were the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the 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, U.S. Marshals Service, and the Treasure Valley Metro Violent Crime Task Force, a task force comprised of federal, state and local agencies, including the Boise Police Department, Ada County Sheriff’s Office, Caldwell Police Department, Nampa Police Department, Meridian Police Department, and Canyon County Sheriff’s Office; the Twin Falls Police Department, Twin Falls Sheriff’s Office, Idaho State Police, and District 3 Probation and Parole.
The cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Two Romanian Nationals Sentenced for Naturalization FraudRead the Press Release
BOISE – Romanian nationals Ramona Alina Fenesan, 32, and Florin Fleischer, 34, both formerly living in Ketchum, Idaho, were sentenced today for unlawful procurement of United States citizenship, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge sentenced each defendant to two years’ probation, imposed a $1,000 fine, and entered an order revoking their United States citizenship. They will be subject to immigration enforcement action by U.S. Immigration and Customs Enforcement (ICE). Fenesan and Fleischer pleaded guilty to the charge in September and October 2012, respectively.
According to plea agreements, Fenesan and Fleischer entered into fraudulent marriages with United States citizens in the fall of 2003, with the sole purpose of evading immigration laws and obtaining immigration benefits. According to court documents, the defendants did not reside with the individual they married. Following their marriages, the defendants filed paperwork with the Department of Homeland Security/Citizenship and Immigration Services (USCIS), seeking lawful permanent resident status based on their fraudulent marriage to a U.S. citizen. USCIS subsequently approved their applications and the defendants became naturalized United States citizens. Upon receiving naturalization, Fenesan and Fleischer divorced their U.S. citizen spouses, with whom they had entered into a fraudulent marriage, and married each other.
At today’s sentencing hearings, defense counsel informed the court that as a result of the fraud and the resulting convictions, the defendants lost their home and their jobs, and will be deported back to Romania.
“U.S. citizenship is a privilege deserved only by those who obtain it legally,” said Brad Bench, special agent in charge of HSI Seattle, who oversees HSI investigations in Idaho. “As this case shows, HSI will move aggressively to identify and prosecute fraudsters who corrupt the immigration process for personal gain.”
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Two Plead Guilty to Federal Gun CrimesRead the Press Release
Cases Related to Ongoing Aryan Knights Investigation
BOISE – Andrew Gallegos, 23, and Cameron James Ball, 25, both of Boise, Idaho, pleaded guilty today in United States District Court to unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced. Gallegos and Ball were charged in two separate indictments filed in August and September 2012, respectively.
Gallegos and Ball pleaded guilty to illegally possessing the firearms after having been convicted of a felony crime punishable by a term of imprisonment exceeding one year. Gallegos admitted in court today that on February 21, 2012, he possessed a Smith & Wesson .357 semi-automatic pistol. According to the plea agreement, Ball admitted that on February 8, 2012, he unlawfully possessed a CHS a Hi-Point .40 semi-automatic pistol.
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. The government is seeking forfeiture of the firearms.
Gallegos is set for sentencing on April 8, 2013, before U.S. District Judge Edward J. Lodge, at the federal courthouse in Boise. Ball is set for sentencing on April 9, 2013, before Chief U.S. District Judge B. Lynn Winmill.
The cases were the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the 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, U.S. Marshals Service, and the Treasure Valley Metro Violent Crime Task Force, a task force comprised of federal, state and local agencies, including the Boise Police Department, Ada County Sheriff’s Office, Caldwell Police Department, Nampa Police Department, Meridian Police Department, and Canyon County Sheriff’s Office; the Twin Falls Police Department, Twin Falls Sheriff’s Office, Idaho State Police, and District 3 Probation and Parole. The investigation 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 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.
Four Defendants in Aryan Knights Investigation Plead Guilty to Conspiring to Distribute MethRead the Press Release
BOISE – Lisa Rochel Samayoa, 45, of Boise, Darin Scott Melton, 44, of Twin Falls, Idaho, Nina Ann Lucas, 32, of Pocatello, Idaho, and Omar Riveroll-Hernandez, 32, of Long Beach, California, pleaded guilty today in United States District Court to conspiring together to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced.
A federal grand jury indicted the defendants on September 12, 2012. The indictment and thirteen others were the result of a long-term investigation by the Treasure Valley Metro Violent Crimes Task Force. The investigation 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 charge of conspiracy to distribute methamphetamine is punishable by up to life imprisonment, a maximum fine of $10 million, and a minimum term of five years of supervised release.
The defendants are scheduled to be sentenced on May 6, 2013, by U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
"Methamphetamine is a dangerous and addictive drug that destroys lives and harms Idaho communities," said Olson. "These four defendants face severe consequences for choosing to traffic methamphetamine for personal profit. This office and federal, state and local law enforcement partners will continue to aggressively investigate and prosecute drug traffickers." Olson said that her office had a strong record of prosecuting methamphetamine cases in 2012, with 73 defendants sentenced in federal court in Idaho for methamphetamine distribution crimes.
The cases were the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the 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, U.S. Marshals Service, and the Treasure Valley Metro Violent Crime Task Force, a task force comprised of federal, state and local agencies, including the Boise Police Department, Ada County Sheriff’s Office, Caldwell Police Department, Nampa Police Department, Meridian Police Department, and Canyon County Sheriff’s Office; the Twin Falls Police Department, Twin Falls Sheriff’s Office, Idaho State Police, and District 3 Probation and Parole.
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.
Former Treasure Valley Woman Pleads Guilty to Theft from Financial InstitutionRead the Press Release
BOISE – Season Heather Hymas, 27, of American Fork, Utah, pleaded guilty today in United States District Court in Boise to theft from a financial institution, a misdemeanor, U.S. Attorney Wendy J. Olson announced. The charge is punishable by up to one year in prison, a maximum fine of $100,000, and up to one year of supervised release.
According to the plea agreement, on December 8, 2006, Season Hymas obtained a residential loan based on false statements in a loan application. The false statements included misrepresentations concerning her employment, monthly income, and the account balance of funds held in a bank account.
Season Hymas is scheduled to be sentenced on April 8, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise. The defendant’s husband, Travis Richard Hymas, was sentenced in October 2012 to 24 months in prison for wire fraud and ordered to pay $241,307.04 in restitution.
The case is part of the investigation of mortgage fraud activity related to Crestwood Homes, which involved multiple defendants who bought and sold real estate in order to "flip" it, or gain profits from the sales. Crestwood Homes was a residential builder in the Treasure Valley that filed for bankruptcy in July 2008. After doing so, it was discovered that individuals associated with Crestwood were involved in submitting fraudulent residential loan applications to lenders. The financial institutions and mortgage lenders incurred substantial losses on the loan transactions.
The case was investigated by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation, with assistance provided by the Office of the United States Trustee and the Idaho Department of Insurance. The case is being prosecuted by the U.S. Attorney's Office for the District of Idaho and the State of Idaho, Office of the Attorney General.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Idaho Businessman Convicted of Income Tax EvasionRead the Press Release
WASHINGTON – U.S. Attorney Wendy J. Olson, Assistant Attorney General for the Tax Division Kathryn Keneally, and Internal Revenue Service (IRS) announced today that a Coeur d’Alene, Idaho, jury convicted Michael George Fitzpatrick, 51, of Hope, Idaho, of two counts of income tax evasion after a four-day trial before U.S. District Judge Larry A. Burns. In September 2012, Fitzpatrick was tried on four tax fraud counts. That jury rendered guilty verdicts on two counts of failure-to-file 2004 corporate income tax returns but was unable to reach verdicts on the tax evasion counts. The verdict today was the result of a second trial on those two charges. Fitzpatrick was remanded into custody immediately.
According to the indictment and evidence introduced at both trials, Fitzpatrick operated a business selling products which purported to help individuals eliminate credit card debt. During 2003 and 2004 the business’s gross sales exceeded $9 million, operating under the names Dynamic Solutions, Inc. (DSI) and NAES. The evidence proved Fitzpatrick last filed an individual income tax return in 1996. At trial the government proved the corporations failed to report $3.7 million and Fitzpatrick himself failed to report over $500,000 in income, resulting in a total tax loss of almost $1.4 million.
The evidence at trial established that Fitzpatrick sent over $5 million offshore to WWIN, a “warehouse” bank located in the Dominican Republic. Fitzpatrick accessed this money through the use of a debit card and through wire transfers. During a two-year period, Fitzpatrick used his offshore funds to purchase his personal residence and two four-unit apartment buildings in northern Idaho, with a combined cost of over $700,000. Fitzpatrick also wired $114,980 from his offshore bank accounts to the Bellagio Casino during nine trips to Las Vegas, Nevada.
Sentencing is scheduled for May 13, 2013. The maximum penalty Fitzpatrick faces on each count of tax evasion is five years in prison and a $250,000 fine. The two convictions for failure to file corporate income tax returns each carry a maximum penalty of one year in prison and a $100,000 fine.
“Paying income tax is a solemn obligation of citizenship,” said Olson. “Those who hide income and evade taxes by sending money off-shore undermine our democracy. This verdict sends a strong message that those who seek to avoid their tax responsibilities will be punished to the fullest extent of the law.”
“This verdict should send a clear message, it’s imperative for all Americans to pay their share of taxes and those who commit income tax evasion will be brought to justice,” said Stephen Boyd, IRS Criminal Investigation Special Agent in Charge for the State of Idaho.
The case was investigated by special agents from the Boise, Idaho, office of IRS Criminal Investigation and prosecuted by Tax Division Trial Attorneys Lori A. Hendrickson, Christopher P. O’Donnell, and Erin S. Mellen, with valuable support from the United States Attorney’s Offices in Boise and Coeur d’Alene.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Former Xpress Flex, Inc. and Payroll America, Inc. Owner Sentenced to 51 Months for Fraud and Filing A False Tax ReturnRead the Press Release
Ordered to Pay Restitution of Nearly $1 Million to Victims
BOISE – Michael Wayne Davis, II, 46, of Raleigh, North Carolina, formerly of Eagle, Idaho, was sentenced yesterday to 51 months in prison for wire fraud and filing a false tax return, U.S. Attorney Wendy J. Olson and Assistant Attorney General for the Justice Department's Tax Division Kathryn Keneally announced. Chief U.S. District Judge B. Lynn Winmill also ordered Davis to serve three years of supervised release following his prison term and pay $999,930.90 in restitution – $954,640.90 to Xpress Flex victims and $45,290 to the IRS for the tax loss. Davis pleaded guilty to the charges on September 10, 2012.
According to court documents, in 2009 and 2010, Davis owned and operated Xpress Flex, Inc., a Boise, Idaho, company that administered, on behalf of employer-clients, flexible benefits plans for tax-free, qualified benefits, such as health care and dependent care. Pursuant to those plans, Xpress Flex received monetary contributions from its employer-clients of pre-tax withholdings from their employees’ paychecks. These funds were deposited into Xpress Flex bank accounts and set aside to pay the claims of employee-participants when they came due. According to court documents, Davis misappropriated $954,640.90 of Xpress Flex client funds and used them to pay personal credit card charges and the business expenses of his other company, Payroll America, Inc. He did so without the knowledge or authorization of the employer-clients and their employees, and contrary to representations in plan documents and contracts that he would safeguard the deposits and use them only to pay employee claims.
Court documents also showed that from 1994 through 2009, Davis owned and operated Payroll America in Boise, Idaho. Payroll America provided payroll administration and payroll tax filing services to its employer-clients. Pursuant to contract documents, employer-clients would deposit sufficient funds with Payroll America to meet their payroll and payroll tax obligations, which Payroll America would pay when they came due. According to court documents, in March and April of 2007, Davis misappropriated $2 million of Payroll America employer-client funds, wired them into his E*Trade brokerage account, and then invested the funds in the stock market. Davis did so without the knowledge or authorization of the employer-clients of Payroll America, contrary to representations in contract documents that he would safeguard the funds and use them only to pay payroll and payroll taxes.
Davis’ E*Trade investments generated approximately $192,436 in capital gains income. According to court documents, Davis wired this money into his and his wife’s personal checking account. The wire transfer was annotated “E-Trade Gains.” However, Davis intentionally failed to report capital gains income from E*Trade investments on his 2007 or 2008 tax returns, causing a tax loss of $45,290. For this conduct, Davis pleaded guilty to one count of filing a false tax return.
“I’m very pleased that my office, with the assistance of the Justice Department’s Tax Division, and federal law enforcement partners were able to bring Mr. Davis to justice,” said Olson. “Those who are entrusted to manage others’ money must ensure that it is safe and available for its intended purpose, not diverted for personal gain.”
“This sentencing sends a clear message, businesses owners who misuse their positions of trust and divert funds for their own personal use will be held accountable,” said Lilia E. Ruiz, IRS Criminal Investigation Acting Special Agent in Charge for the State of Idaho.
The case was investigated by the Federal Bureau of Investigation, the U.S. Department of Labor, Employee Benefits Security Administration, and Internal Revenue Service-Criminal Investigation.
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.
Treasure Valley Building Contractor Sentenced for Wire FraudRead the Press Release
Owner of Quality Tile and Roofing, Inc. Agrees to Forfeit $150,000; also Fined $20,000
BOISE – Patrick J. Large, 62, of Meridian, Idaho, the owner of Quality Tile and Roofing, Inc., was sentenced yesterday in federal court to two years’ probation and ordered to pay a $20,000 fine, U.S. Attorney Wendy J. Olson announced. Large pleaded guilty on September 18, 2012, to a superseding information charging him with one count of wire fraud. Chief U.S. District Judge B. Lynn Winmill ordered Large to serve eight months of his probation sentence on home detention, perform 80 hours of community service, and forfeit $150,000.
According to court documents, Large orchestrated a scheme to defraud federal agencies by falsely representing that the company had two employees residing in a HUB Zone. The HUBZone Program encourages economic development in historically underutilized business zones through the establishment of preferences in federal contracting opportunities. Based upon this false representation, the government awarded a contract to a company controlled by Large that it was not otherwise entitled to receive.
According to the plea agreement, on July 27, 2005, Large submitted an application to the U.S. Small Business Administration (SBA) that represented that the principal place of business of McDonald Roofing and Construction, Inc. (MRC) was located in Emmett, Idaho, and that it had two employees at this location. Large made these representations in submissions to the government. By doing so, MRC was able to obtain a contract awarded by the government for qualified HUBZone entities. Large admitted that the representations were false because the business did not have at least two employees residing in the HUBZone. In June 2007, the United States Department of Interior (DO I) awarded a $218,241 contract to MRC for seismic mitigation work to be performed at the National Interagency Fire Center (NIFC) in Boise. DOl awarded MRC the contract on the basis that it was a HUBZone qualified entity. On December 21, 2007, MRC received a payment from the government of approximately $219,287.
In related cases, Construction Service Corporation, Inc. (CSC) and McDonald Roofing and Construction, Inc., of Boise, were sentenced last year to three years’ probation. CSC was fined $65,000 for wire fraud and making a false statement. McDonald Roofing and Construction was fined $5,000 for fraud related to government contracting.
“The successful investigation and prosecution of Mr. Large, CSC, and McDonald Roofing and Construction, Inc., are excellent examples of the cooperative working relationship between the U.S. Attorney’s Office and its federal agency partners,” said Olson. “We will continue to work together to ensure those who fraudulently obtain government contracts will not go unpunished.”
“The consequence to those who misrepresent themselves to claim eligibility for preference in federal contracting opportunities is evident by today’s announcement,” said SBA Inspector General Peggy E. Gustafson. “Mr. Large's fraud involved a SBA government contracting program that encourages economic development in historically underutilized business zones, and I am pleased that he has accepted responsibility for his actions. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their commitment to seek justice on behalf of the American taxpayer.”
“Rest assured those who find ways to fraudulently benefit from government programs will be brought to justice,” said Lilia E. Ruiz, IRS Criminal Investigation Acting Special Agent in Charge for the State of Idaho. “IRS Criminal Investigation will work diligently with our law enforcement partners to combat such fraud.”
The case was a joint investigation by the Office of Inspector General for the Department of Veterans Affairs, the U.S. Small Business Administration, General Services Administration, Department of Interior, Department of Agriculture, as well as the Defense Criminal Investigative Service, the U.S. Army Criminal Investigative Command, the Air Force Office of Special Investigation, and Internal Revenue Service-Criminal Investigation.
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.
Pocatello Man Arrested on Federal and State WarrantsRead the Press Release
POCATELLO – U.S. Attorney Wendy J. Olson announced today the arrest on Tuesday evening of Droshawn Griggs by the Greater Idaho Fugitive Task Force (GIFTF). Griggs was arrested at a local motel in Nampa. He had an active warrant out of Pocatello for attempted murder and an active federal warrant issued by the United States District Court in Pocatello for federal drug charges. Griggs, 27, is a native of the Pocatello area.
Deputy U.S. Marshals, Pocatello Police Department, and Idaho Department of Correction–Probation and Parole (Pocatello) had been looking for Griggs for about a month and a half when information was developed indicating that Griggs was staying at a local motel in the Nampa area. The information was relayed to Deputy U.S. Marshals and GIFTF agents in the Nampa area who were able to locate and arrest Griggs without incident. He was booked into the Canyon County Jail where he is awaiting extradition on attempted murder and federal drug charges. Griggs and two other defendants, Toulon K. Mattox and Chase R. Mitchell, were indicted by a federal grand jury on December 11, 2012, for conspiracy to distribute controlled substances – methamphetamine, oxycodone and marijuana.
GIFTF is a task force led by the U.S. Marshals Service and comprised of agents from the Idaho State Police, Idaho Department of Correction–Probation and Parole, Ada County Sheriff’s Office, Bannock County Sheriff’s Office, Canyon County Sheriff’s Office, Boise Police Department, Chubbuck Police Department, Nampa Police Department, and Pocatello Police Department.
In fiscal year 2011, U.S. Marshals Service-led task forces arrested 86,400 state and local fugitives, clearing approximately 113,300 state and local felony warrants.
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.
Nampa Woman Pleads Guilty to Federal Gun ChargeRead the Press Release
BOISE – Rachel Ann Scott, 32, of Nampa, Idaho, pleaded guilty today in United States District Court to unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced. A sentencing date has not been set.
According to the plea agreement, on January 13, 2012, Scott pawned a Browning .22 semi-automatic pistol at a Boise area pawn shop. Scott pawned the firearm using the name Rachel Maleyko-Janney, and affixed her right hand index fingerprint to the pawn ticket for the firearm. Court records show that on April 11, 2003, Scott was convicted in Idaho State Court of possession of a controlled substance, a felony crime punishable by a term of imprisonment exceeding one year. The government is seeking forfeiture of the firearm.
Scott faces up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with assistance by the Canyon County Sheriff’s Office.
Scott was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Owner and Employee of All Sunshine Head Shop Sentenced to Federal ProbationRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced today that Janet Elaine Shirley, 39, of Boise, Idaho, the former owner and operator of All Sunshine, LLC, and Antonio Ricardo Mendoza, 34, also of Boise, an employee, are the latest defendants in Operation Not for Human Consumption to be sentenced over the past several months for offering drug paraphernalia for sale.
Chief U.S. District Judge B. Lynn Winmill sentenced Shirley today to two years’ probation and ordered her to complete 120 hours of community service. U.S. District Judge Edward J. Lodge sentenced Mendoza to three years’ probation and ordered him to complete 80 hours of community service. Both Shirley and Mendoza pleaded guilty to the charge on September 5, 2012.
Operation Not for Human Consumption includes the cooperative law enforcement efforts of the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, 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.
Justice Department Files Lawsuit in Idaho Against Jerome County Sheriff’s Office to Enforce the Employment Rights of Army National Guard MemberRead the Press Release
WASHINGTON — The United States Justice Department and U.S. Attorney Wendy J. Olson announced today the filing of a complaint alleging that Jerome County Sheriff’s Office willfully violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by failing to reemploy and terminating Idaho Army National Guard Member Mervin Jones while he was recuperating from a knee injury that he sustained while performing military service. The suit was filed in federal district court in Idaho.
Subject to certain limitations, USERRA requires that service members who leave their civilian jobs to serve in the military be reemployed promptly by their civilian employers in the positions they would have held if their employment had not been interrupted by military service or in positions of comparable seniority, pay, and status. In addition, USERRA requires employers to accommodate service members who are injured in the line of duty, and allows service members who are recuperating from such an injury up to two years to obtain reemployment without facing termination by their civilian employers.
The complaint states that Jones began working for Jerome County Sheriff’s Office as a correctional deputy in 2002. By 2007, he had been promoted through the ranks to Corporal. During his employment with the Sheriff’s Office, Jones was also a member of the Idaho Army National Guard. He suffered a knee injury while deployed to Iraq in 2004, which Jones later aggravated in 2008 during a weekend training event with his Guard unit. The complaint alleges that in 2009, while Jones was still recuperating from multiple knee surgeries, the Sheriff’s Office forced him to complete Family Medical Leave Act (FMLA) paperwork even though his leave was protected under USERRA, denied him light duty work to accommodate his physical limitations caused by the knee injury, attempted to subject him to an unlawful “fitness for duty” evaluation and physical fitness test before allowing him to return to work, and terminating his employment during the period of time permitted by USERRA to recover from an injury incurred in the line of duty.
“When Congress enacted USERRA, it was to protect our men and women in uniform from experiencing exactly this kind of injustice,” said Thomas E. Perez, Assistant Attorney General for the Department of Justice’s Civil Rights Division. “The Justice Department is committed to vigorously enforcing federal laws that protect the employment rights of our service members.”
“Members of the Army National Guard sacrifice time away from their jobs to serve their country,” said Olson. “USERRA ensures that they are not discriminated against after they have returned and their employment rights are protected. We are committed to vigorously enforcing USERRA’s protections.”
Additional information about USERRA can be found on the Justice Department website: www.servicemembers.gov and www.usdoj.gov/crt/emp, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.
Boise Man Pleads Guilty to Illegally Possessing FirearmRead the Press Release
BOISE – Devin Edward Montgomery, 33, of Boise, Idaho, pleaded guilty today in United States District Court to a single count information charging him with unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced.
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 thereby prohibited under federal law from possessing any firearms. Montgomery has charges pending in state court, including delivery of a controlled substance, recruiting a criminal gang member, grand theft by extortion, and aggravated assault. Montgomery agreed pursuant to the plea agreement to forfeit the shotgun.
The federal 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.
Sentencing is set for March 26, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Coeur d’Alene.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Boise Police Department.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Rupert Man Sentenced for Selling MethRead the Press Release
POCATELLO – Francisco A. Juarez, 27, of Rupert, Idaho, was sentenced today in United States District Court for possession with intent to distribute in excess of five grams of actual methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill sentenced Juarez to 66 months in prison followed by four years of supervised release. Juarez was indicted by a federal grand jury on April 24, 2012, on one count of possession with intent to distribute a controlled substance – five grams or more of actual methamphetamine. He pleaded guilty to the charge on August 29, 2012.
According to the plea agreement, on April 23, 2011, Juarez arranged to deliver methamphetamine to another individual. On August 26, 2011, he delivered in excess of five grams of actual methamphetamine to the person at a restaurant in Heyburn, Idaho.
The case was investigated by the Idaho State Police.