District of Nevada
Press releases recorded for this federal judicial district.
Las Vegas Man Indicted in Human Trafficking Case, Allegedly Coercing and Enticing Four Underage Girls via Social Media to Work as Prostitutes for HimRead the Press Release
LAS VEGAS, Nev. – A Las Vegas resident — charged in a 10-count indictment with coercing underage girls via Facebook to work as prostitutes for him — made his initial appearance in U.S. District Court today, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada.
“Our office is honored to support Nevada law enforcement’s continued efforts to crack down on human trafficking rings and bring traffickers to justice,” said U.S. Attorney Trutanich. “We remain committed to using all available tools to combat human trafficking and help survivors.”
In October 2020, a federal grand jury indicted Denzel Renyal Michael Loyd, 35, of Las Vegas, with four counts of coercion and enticement; three counts of sexual exploitation of a child; one count of transfer of obscene material to minor; one count of sex trafficking of children; and one count of possession of child pornography. Loyd appeared before U.S. Magistrate Judge Cam Ferenbach, who ordered him to be detained in federal custody pending a jury trial.
As alleged, from February 5, 2020 to March 9, 2020, Loyd coerced and enticed four underage victims via Facebook to engage in prostitution for him. The indictment further alleges that Loyd sent obscene material to a victim, and that he possessed child pornography on his cell phone.
The minimum statutory penalty for coercion and enticement is 10 years in prison; the minimum statutory penalty for sexual exploitation of children is 15 years in person, with a maximum statutory penalty of 30 years in prison; the minimum statutory penalty for sex trafficking of a child is 10 years in prison; the maximum statutory penalty for sending obscene material to a minor is 10 years in prison; and the maximum statutory penalty is 10 years in prison for possession of child pornography.
The charges resulted from an investigation by the FBI and Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Supriya Prasad is prosecuting the case.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If you have information regarding possible child sexual exploitation, please make a report to the National Center for Missing and Exploited Children by calling the 24-hour hotline at 1-800-THE-LOST (1-800-843-5678) or by making a report at www.cybertipline.com.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
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Eight Alleged Associates of Drug Trafficking Organization Indicted and ArrestedRead the Press Release
LAS VEGAS, Nev. – Eight alleged associates of the Pomona Sur Lokotes drug trafficking organization have been arrested for their alleged roles in trafficking large quantities of methamphetamine from California and Mexico to Las Vegas, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI.
A federal grand jury returned a 22-count indictment charging Luis Arellano, aka “Lewis Arellano” aka “Laughter,” 29; Jacqueline Martinez, 29; Ivan Salazar, aka “Evil,” 38; Domingo Montes Jr., aka “JR,” 34; Amelio Che Medina, 43; Anna Barrios, 32; and Victor Manuel Rodriguez, aka “Smokey,” 37, all of Las Vegas, for conspiracy to distribute methamphetamine, distribution of methamphetamine, and felon in possession of a firearm. A federal grand jury also returned a seven-count indictment charging Sergio Rios, aka “Gremlin,” 36, of Las Vegas, for distribution of methamphetamine.
According to court documents, law enforcement began investigating Arellano and other associates of the Pomona Sur Lokotes drug trafficking organization in December 2019. As alleged, Arellano and Martinez traveled to California to pick up methamphetamine and cocaine that they — along with the other defendants — then distributed in Las Vegas. Between September 13 and November 4, law enforcement arrested the defendants and, during the course of the operation, law enforcement seized: over 12 kilograms (approximately 26 pounds) of methamphetamine, 1.5 kilograms of cocaine, and nine firearms.
In addition to drug charges, Salazar and Medina are each charged with one count of felon in possession of a firearm. Salazar is alleged to have possessed a semi-automatic rifle after previously been convicted of felonies in Nevada. Medina is alleged to have possessed a 9mm handgun after previously been convicted of felonies in Utah. Under federal law, felony convictions prohibit an individual from possessing a firearm.
“This case exemplifies the targeted, impactful prosecutions that our office has been prioritizing to drive down crime rates and dismantle drug trafficking organizations,” said U.S. Attorney Trutanich. “We look forward to continuing to work closely with our law enforcement partners, including the Las Vegas Metropolitan Police Department and the FBI, to increase public safety and get illegal drugs out of our communities.”
“Today's announcement is a direct result of the hard work and dedication shared between local and federal authorities in our efforts to combat drug trafficking organizations who distribute methamphetamine and cocaine in our communities,” said Special Agent in Charge Rouse. “The FBI’s Safe Streets Gang Task Force will continue to pursue investigations into individuals and groups who have furthered the scourge of drugs in our neighborhoods."
If convicted, each defendant faces a statutory maximum sentence of lifetime imprisonment and a $10,000,000 fine.
An indictment is merely an allegation. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI’s Safe Streets Gang Task Force and the Las Vegas Metropolitan Police Department.
The investigation is part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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U.S. Attorney's Office Announces over $1.9 Million in DOJ Grants to Combat Violent Crime in NevadaRead the Press Release
LAS VEGAS, Nev. – U.S. Attorney Nicholas A. Trutanich today announced $1,957,208 in Department of Justice grants to fight and prevent violent crime in the District of Nevada. The grants, which have been awarded by the Department’s Office of Justice Programs, are part of more than $458 million in funding to support state, local, and tribal law enforcement efforts to combat violent crime in jurisdictions across the United States.
“One of the fundamental missions of government is to protect its citizens and safeguard the rule of law,” said Attorney General William P. Barr. “The Department of Justice will continue to meet this critical responsibility by doing everything within its power to help our state, local and tribal law enforcement and criminal justice partners fight crime and deliver justice on behalf of all Americans.”
The funding announced today continues the Trump Administration’s commitment to reducing crime and improving public safety. In the two years before President Trump took office, America had experienced a precipitous rise in crime, particularly in serious violent crime. The President elevated community safety to the top of his domestic agenda and crime rates have fallen steadily since. Recent data from the FBI and the Bureau of Justice Statistics for 2019 show a drop in crime and serious victimization for the third year in a row. However, a number of cities are experiencing conspicuous countertrends. Today’s grants will bolster crime-fighting efforts in those communities and in jurisdictions throughout the United States.
“Violence has become a tragic reality in too many of America’s communities,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “Working with officials across the Trump Administration and with thousands of state, local and tribal crime-fighters across the country, the Department of Justice is leading the response to this urgent challenge. OJP is pleased to make these resources available to support innovative, tested and diverse solutions to violent crime.”
“Driving down violent crime rates to improve public safety has been one of our office’s top priorities,” said U.S. Attorney Trutanich. “These funds will continue to make our Nevada communities even safer, as our law enforcement partners deploy the new resources provided by Office of Justice Programs.”
Of the more than $458 million awarded nationwide, OJP’s Bureau of Justice Assistance made 1,094 grants totaling more than $369 million to support a broad range of initiatives, including efforts in enforcement, prosecution, adjudication, detention and rehabilitation.
OJP’s Office of Juvenile Justice and Delinquency Prevention awarded more than $10 million across 24 jurisdictions to intervene in and suppress youth gang activity as well as $1 million to the Institute for Intergovernmental Research to continue operating the National Gang Center. OJP’s National Institute of Justice awarded $7.8 million to fund research and evaluation on the prevention and reduction of violent crime. OJP’s Bureau of Justice Statistics provided more than $69 million to strengthen the quality and accessibility of records within the National Instant Criminal Background Check System.
The following organizations received funding:
• Clark County received $400,000
• Nevada Department of Public Safety received $720,508
• Nevada Department of Public Safety, Office of Criminal Justice Assistance received $836,700
For a complete list of individual grant programs, award amounts, and jurisdictions that will receive funding, click here. More information about OJP and its components can be found at www.ojp.gov.
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Two Men Indicted for Allegedly Operating Multimillion Dollar Sports Betting Pyramid Scheme in Las VegasRead the Press Release
LAS VEGAS, Nev. – Two Las Vegas residents made their initial court appearances in U.S. District Court on Friday for charges in connection with a multimillion dollar investment fraud scheme, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI.
A federal grand jury returned a 14 count indictment on Tuesday, charging John Frank Thomas III, 75, and Thomas Joseph Becker, 72, both of Las Vegas, with one count of conspiracy to commit wire fraud and 13 counts of wire fraud. Thomas is also known as “John Frank,” “Johnathan West,” “John Frank Rodgers,” “John Marshall,” and “John Edwards.” Following their arrests on Friday, Thomas and Becker made their initial appearances before U.S. Magistrate Judge Nancy J. Koppe, who scheduled a jury trial for January 4, 2021.
“Nevada has earned a worldwide reputation as the gold standard in gaming integrity,” said U.S. Attorney Trutanich. “Our office will continue working with our law enforcement partners and the gaming industry, including the FBI, to maintain Nevada’s reputation — which reflects the efforts of hardworking Nevadans across our state — by investigating and prosecuting violations of the law, and by helping enhance compliance programs.”
“The men and women of the FBI work hard every day to identify and apprehend those responsible for taking advantage of trusting citizens who were swindled out of their investments," said Special Agent in Charge Rouse.
According to allegations in the indictment, from September 2010 to August 2019, Thomas and Becker maintained — and advertised to investors as supposed investment funds — the following entities: Sports Psychometrics; Vegas Basketball Club; Vegas Football Club; Einstein Sports Advisory; Quantum Sports Advisory; Wellington Sports Club; and Welscorp, Inc. Thomas and Becker made false representations to investors that they would use their sports betting skills and strategy to make sports bets with the investors’ money:
- For example, Thomas and Becker told investors that their “‘special insights’ and ahead-of-the-curve strategies… can generate an Average-Profit-Per-Bet of +140% per $100 bet… and possibly as high as +180% or plus $180 per $100 bet. In essence, unlimited riches.”
- Similarly, they advertised a “perfect investment opportunity,” offering “quick access to funds – funds that can be withdrawn by wire or transfer in only one day” and “exceptionally high yield – we achieved a +10.75% ROI per betting day during 2014 Football Season.”
Thomas and Becker also allegedly misrepresented to investors that their accounts were multiplying in value due to successful sports betting, when in fact no such betting occurred. And when investors tried to cash out their investments, Thomas and Becker ignored their calls and emails, and made various excuses for why they could not distribute the money, ranging from purported medical reasons to issues with banks and sportsbooks. To the extent any investors were paid out, those payments came from money deposited by other investors, rather than successful sports bets.
Thomas and Becker induced more than 600 individuals to deposit money —from less than $10,000 to over $500,000 — into their purported investment funds, for a total of at least $29 million. The estimated loss amount to investors is alleged to be at least $9 million dollars. Thomas and Becker spent investors’ funds on personal expenses, including dining, housing, home improvement, and transportation.
The statutory penalty per count for conspiracy to commit wire fraud and wire fraud is 20 years in prison, as well as a fine of either $250,000 or twice the gross gain or gross loss resulting from the offense.
An indictment merely alleges that crimes have been committed. Every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI. Assistant U.S. Attorney Simon F. Kung is prosecuting the case.
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Boulder City Man Indicted for Assaulting Significant Other at Lake MeadRead the Press Release
LAS VEGAS, Nev. – A Boulder City resident made his initial appearance in federal court yesterday for allegedly assaulting his significant other at the Lake Mead National Recreation Area, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada.
Michael David Thompson, 66, of Boulder City, is charged with one count of felony assault resulting in substantial bodily injury to a spouse or intimate partner. U.S. Magistrate Judge Nancy Koppe ordered Thompson to be detained in federal custody pending a jury trial scheduled to begin on December 1, 2020.
“There is no place whatsoever in our communities for violence against a spouse or intimate partner,” said U.S. Attorney Trutanich. “Following the launch of Project Veronica, our office has been making a renewed push to hold domestic violence offenders accountable — particularly during the pandemic, when many victims are isolated with abusers.”
According to court documents, in September 2020, at the Boulder Beach Campground within the Lake Mead National Recreation Area, Thompson allegedly struck the victim and placed his hands around her neck, causing her to yell and state “he is going to kill me.” The victim’s nose and orbital bone around an eye were fractured. National Park Service Rangers responded and observed facial bruising, two black eyes, lacerations to both lips, and additional bruising on the victim’s body.
Thompson faces a statutory maximum sentence of five years in prison and a $250,000 fine. He also faces a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the National Park Service.
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U.S. Attorney's Office Announces Nearly $2.5 Million in Justice Department Grants to Combat Addiction CrisisRead the Press Release
LAS VEGAS, Nev. – U.S. Attorney Nicholas A. Trutanich today announced awards of $2,463,568 in Department of Justice grants to fight drug abuse and addiction in the District of Nevada. The grants were awarded by the Department’s Office of Justice Programs (OJP) and are part of more than $341 million going to communities nationwide.
“The addiction crisis has taken an enormous toll on America’s families and communities, eroding public health, threatening public safety and claiming tens of thousands of lives year after year,” said Attorney General William P. Barr. “Through comprehensive measures taken by this administration, we have been able to curtail the opioid epidemic, but new and powerful drugs are presenting exceptional challenges that we must be prepared to meet. The Justice Department’s substantial investments in enforcement, response, and treatment will help us overcome these challenges and work towards freeing Americans from abuse and addiction.”
Illegal drugs and illicit drug use have claimed the lives of nearly 400,000 Americans since the turn of the century. Powerful synthetic opioids like fentanyl are exacting an enormous toll on families and communities, and an emergence in the use of methamphetamines and other psychostimulants is drawing drug traffickers and driving up overdose rates. Three years ago, President Trump declared a Public Health Emergency and initiated a whole-of-government approach dedicated to ending this national tragedy. The Department of Justice has invested unprecedented levels of funding in combating the addiction crisis. The awards announced today build on those earlier investments.
“If we hope to defeat an enemy as powerful, persistent and adaptable as illicit drugs, we must be at least as determined and versatile, focusing our ingenuity and resources on curbing abuse and fighting addiction,” said OJP’s Principal Deputy Assistant Attorney General Katharine T. Sullivan. “These grants will enable criminal justice officials and substance abuse, mental health and other medical professionals to pool their assets and bring the full weight of our public safety and treatment systems down on this epidemic that has already caused so much harm.”
“During the pandemic and corresponding restrictions, Nevada has seen an increase in drug overdose deaths,” said U.S. Attorney Trutanich. “By providing these additional grants, the Department of Justice is reinforcing its commitment to end opioid abuse and addiction. We are grateful to the Office of Justice Programs for its support in the fight to end the opioid epidemic, both in Nevada and across the country.”
Funding is made available through OJP’s Bureau of Justice Assistance, National Institute of Justice, Office for Victims of Crime and Office of Juvenile Justice and Delinquency Prevention.
The following organizations received funding:
- Reno Municipal Court received $899,839
- Justice Court, Las Vegas Township received $180,450
- Nevada State Board of Pharmacy received $781,761
- Nevada Department of Public Safety received $339,089
- Reno Municipal Court Community Court received $183,042
- Justice Court, Las Vegas Township received $79,387
For a complete list of individual grant programs, award amounts, and jurisdictions that will receive funding, click here. More information about OJP and its components can be found at www.ojp.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years
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Two Brothers from California Charged with Trafficking 100 Pounds of Methamphetamine to Las VegasRead the Press Release
LAS VEGAS, Nev. – Two brothers made their initial appearances in federal court on Friday for allegedly transporting 100 pounds of methamphetamine from Los Angeles to Las Vegas, announced U.S. Attorney Nicholas A. Trutanich.
Huy Ngoc Tran, aka “Tony,” 37, and Sinh Van Tran, aka “Paul,” 34, both of Riverside, California, are charged with one count of possession with intent to distribute a controlled substance – methamphetamine. Both defendants appeared before U.S. Magistrate Judge Daniel J. Albregts, who scheduled a preliminary hearing on October 30, 2020.
As alleged in the criminal complaint, on October 14, 2020, Huy Ngoc Tran and Sinh Van Tran were arrested in the parking lot of a Las Vegas hotel and casino after delivering 100 pounds of methamphetamine for $300,000. The brothers had also agreed to deliver an AR-15 type rifle and a shotgun.
During the search of the brothers’ vehicle, in addition to methamphetamine, law enforcement found an AR-15 style rifle, a Norinco SKS rifle with a sling and bayonet, a scoped Ruger Mini-14, and a double barrel 12 gauge shotgun.
Huy Ngoc Tran and Sinh Van Tran each face a maximum statutory penalty of life imprisonment and a $10,000,000 fine.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case is the product of a joint investigation by the FBI, North Las Vegas Police Department, the Nevada Highway Patrol, and the Nevada Gaming and Control Board.
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Press Release Relating to November 2020 General ElectionRead the Press Release
LAS VEGAS, Nev. – U.S. Attorney Nicholas A. Trutanich announced today that Assistant U.S. Attorney (AUSA) Jamie Mickelson will lead the efforts of their Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 3, 2020 general election. AUSA Mickelson has been appointed to serve as the District Election Officer (DEO) for the District of Nevada and, in that capacity, is responsible for overseeing the District’s handling of complaints of election fraud and voting rights concerns in consultation with Justice Department Headquarters in Washington.
U.S. Attorney Trutanich said: “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will always act appropriately to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open through election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights concerns during the voting period that ends on November 3, 2020, and to ensure that such complaints are directed to the appropriate authorities, U.S. Attorney Trutanich stated that AUSA/DEO Mickelson will be on duty in this District while the polls are open. She can be reached by the public at (702) 388-6336.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (702) 385-1281.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/ .
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
U.S. Attorney Trutanich said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available to the U.S. Attorney’s Office, the FBI, or the Civil Rights Division.”
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Ten Defendants Charged for Unemployment Insurance FraudRead the Press Release
LAS VEGAS, Nev. – Ten individuals have been charged in the District of Nevada for their alleged roles in unemployment insurance fraud schemes, including charges for conspiracy, mail fraud, identity theft, and unlawful possession and use of fraudulently obtained unemployment debit cards.
U.S. Attorney Nicholas A. Trutanich of the District of Nevada; Special Agent-in-Charge Quentin Heiden of the U.S. Department of Labor Office of Inspector General (DOL-OIG), Los Angeles Region; Executive Special Agent-in-Charge John D. Masters of the U.S. Postal Service Office of Inspector General (USPS-OIG), Office of Investigations, Western Area Field Office; Special Agent-in-Charge Brian Spellacy of the U.S. Secret Service, Las Vegas Field Office; and Special Agent-in-Charge Aaron C. Rouse of the FBI, Las Vegas Field Office made the announcement.
“On behalf of the U.S. Attorney’s Office, we’re grateful for our law enforcement partners’ hard work and coordination in bringing to justice those who have taken unemployment funds —intended to help Nevadans who lost their jobs due to the pandemic — for their own illegal gain,” said U.S. Attorney Trutanich. “We will continue devoting the resources and skills to investigating and stopping fraudsters from stealing taxpayer dollars meant for out-of-work Nevadans.”
“These charges demonstrate the Office of Inspector General’s commitment to combating fraud against the Unemployment Insurance program, which has become increasingly prevalent amid the pandemic. We will continue to work with our law enforcement and state workforce agency partners to pursue individuals who seek to undermine the integrity of the Unemployment Insurance program,” said Quentin Heiden, Special Agent-in-Charge, Los Angeles Region, U.S. Department of Labor Office of Inspector General.
“Today’s indictment of Ms. Jasmine Black sends a clear message that Mail Fraud, Identity Theft, and Obstruction of U.S. Mail, committed by a Postal Service employee, carries very serious consequences. The public we serve can rest assured that the Postal Service OIG, U.S. Attorney’s Office, and our partner law enforcement agencies remain committed to safeguarding the integrity of the U.S. Mail and ensuring the accountability and integrity of U.S. Postal Service employees,” said John Masters, Executive Special Agent-in-Charge, U.S. Postal Service Office of Inspector General (USPS-OIG), Office of Investigations, Western Area Field Office.
“The US Secret Service will continue to work with law enforcement and private partners to prioritize the investigative work required to combat a new wave of COVID-19 related fraud,” said Brian Spellacy, Special Agent-in-Charge, U.S. Secret Service, Las Vegas Field Office.
"Unfortunately the victims of these crimes are the unemployed citizens who are relying on these benefits to take care of their families; feeding them and keeping a roof over their heads. The FBI will continue working with our law enforcement partners to stop those who gain financially at the expense of taxpayers," said Aaron C. Rouse, Special Agent-in-Charge, FBI, Las Vegas Field Office.
According to the six federal criminal complaints announced today:
- Jasmine-Royshell Kanisha Black (32, of Las Vegas, Nevada) is charged with one count of conspiracy to commit mail fraud, one count of aggravated identity theft, and one count of obstruction of mail. As alleged in the complaint, Black was employed as a U.S. Postal Service mail carrier and assisted Vincent Okoye — previously charged in a federal indictment — with his scheme to fraudulently obtain unemployment benefits from the Nevada Department of Employment, Training & Rehabilitation (DETR) and the Arizona Department of Employment Services (DES). Black used her position as a mail carrier to help Okoye find straw addresses to which fraudulently obtained debit cards could be sent. She then intercepted and delivered those cards to Okoye in person. Debit cards recovered from a search of Okoye’s residence, car, and person had been approved for at least $460,000 in benefits by DETR and DES.
- Delashaun Dean (31, of Austin, Texas) is charged with one count of possession of counterfeit and unauthorized access devices and one count of identity theft. As alleged in the complaint, on October 3 and 5, 2020, Dean possessed at least 15 California Employment Development Department (EDD) debit cards containing unemployment insurance benefits issued in other people’s names. The debit cards in Dean’s possession had been approved for at least $220,000 in benefits by EDD.
- Kenneth Greenland (39, of Northridge, California) Brittany Griesel (37, of Santa Cruz, California), and Paul Naeger (37, of Spring, Texas) are each charged with one count of conspiracy to effect illegal transactions with access devices and one count of aggravated identity theft. In addition, Greenland and Griesel are charged with one count of illegal transactions with access devices. As alleged in the complaint, during a traffic stop in Las Vegas on August 8, 2020, law enforcement officers recovered eight EDD debit cards in other peoples’ names and $45,000 in cash in a car driven by Greenland in which Griesel was a passenger. According to bank records, Greenland and Griesel used those EDD debit cards at ATMs in Las Vegas and California, while Naeger used one of the debit cards found in the car to make calls while he was incarcerated in Texas. The debit cards recovered during the traffic stop had been approved for at least $250,000 in benefits by EDD.
- Joseph Holmes (21, of Fort Lauderdale, Florida) and Emelio Rochester (24, of Tallahassee, Florida) are each charged with one count of conspiracy to possess counterfeit and unauthorized access devices and one count of aggravated identity theft. As alleged in the complaint, during a traffic stop in Las Vegas on September 28, 2020, Holmes and Rochester possessed at least 17 EDD debit cards issued in the names of other people. During a search of a car Rochester was driving in which Holmes was a passenger, officers recovered almost $90,000 in cash. The debit cards recovered during the traffic stop had been approved for at least $385,000 in benefits by EDD.
- Antwine D. Hunter (33, of Las Vegas, Nevada) is charged with one count of mail fraud and one count of aggravated identity theft. As alleged in the complaint, on September 28, 2020, while executing a search warrant at Hunter’s residence, law enforcement officers recovered at least eight DETR debit cards and at least 15 identification cards in other people’s names. The debit cards recovered during the search had been approved for at least $215,000 in benefits by DETR.
- Keheir Jordan Parker (24, of Victorville, California) and Robert Barber (24, of Lawrenceville, Georgia) are each charged with one count of conspiracy to effectuate illegal transaction with an access device and one count of aggravated identity theft. As alleged in the complaint, during a traffic stop in Las Vegas on September 11, 2020, law enforcement officers recovered 12 EDD debit cards issued in other peoples’ names, along with ATM receipts showing use of the debit cards in Las Vegas and California to make withdrawals totaling $6,400. Officers also located more than $10,000 in cash on Parker, on Barber, and in the car. The debit cards recovered during the traffic stop had been approved for at least $150,000 in benefits by EDD.
A total of five of these defendants are in custody, three of which are currently in state custody at Clark County Detention Center on state charges. Two other defendants have made arrangements through their attorneys to self-surrender tomorrow morning. Black, Greenland, and Griesel are expected to make their initial court appearances in U.S. District Court in Las Vegas on October 16, 2020, all before U.S. Magistrate Judge Daniel J. Albregts. Naeger made his initial court appearance today in U.S. District Court in the Southern District of Texas. Dean, Rochester, and Hunter are currently in custody at Clark County Detention Center and will make their initial appearances in U.S. District Court in Las Vegas at a date to be determined later.
The minimum statutory penalty for aggravated identity theft is two years in prison. The maximum statutory penalty for mail fraud is 20 years in prison; for possession of counterfeit and unauthorized access devices, 10 years in prison; for illegal transactions with an access device, 15 years in prison; and for obstruction of mail, five years in prison. The maximum fine for each of these charges is $250,000. The minimum and maximum statutory sentences are prescribed by Congress and are provided here for informational purposes only.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
These cases are the products of investigations by the DOL-OIG, USPS-OIG, and U.S. Secret Service, with assistance from the Las Vegas Metropolitan Police Department, the FBI, the U.S. Postal Inspection Service, and the Nevada Attorney General’s Office. These cases are being prosecuted by Assistant U.S. Attorney Jim Fang.
Anyone with information about allegations of attempted fraud involving COVID-19 should please report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For information about COVID-19 fraud, visit the Department of Justice’s website at https://www.justice.gov/coronavirus and the National Unemployment Fraud Consumer Protection Guide at /media/1093226/dl?inline for prevention tips.
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Fugitive Charged with Leading Multimillion Dollar Fraud Scheme, Falsifying Evidence, and Tax CrimesRead the Press Release
LAS VEGAS, Nev. – An American citizen was charged in two indictments unsealed this week for his alleged participation in an investment fraud scheme in which he allegedly misappropriated $6.1 million in investor-funds, manufactured evidence to mislead an investigation by the Securities and Exchange Commission (SEC) and concealed the proceeds of his fraudulent scheme from the IRS.
Mykalai Kontilai, aka Michael Contile, 51, formerly of Las Vegas, Nevada and New York, New York, was charged by sealed grand jury indictment on June 3, 2020, in the District of Nevada with one count of securities fraud, six counts of wire fraud, six counts of laundering of money instruments, one count of money transaction in property derived from specified unlawful activity, and four counts of willful failure to file tax returns. Kontilai was also charged by sealed grand jury indictment on March 10, 2020, in the District of Colorado with one count of conspiracy to obstruct proceedings, two counts of obstruction of proceedings, one count of tampering with documents, and two counts of false statements. Arrest warrants have been issued, however, Kontilai is believed to have traveled to Russia to avoid prosecution. The FBI has also released a
“Wanted” poster to facilitate his arrest.The
District of Nevada indictment alleges that from 2012 through 2018, Kontilai lured investors into giving him money to start an e-commerce auction business. The indictment further alleges Kontilai falsely told investors that he invested millions of dollars of his own money in the business and was not taking “a dime of salary.” According to the filing, Kontilai led bank officials to believe that money he withdrew was for business purposes when in fact it was for himself. On one occasion alone he allegedly withdrew $770,000 in cash from a company bank account, not to purchase inventory for the company, but for his personal use. He also allegedly used investor funds to purchase a Cadillac with the vanity tag, “MYKALAI,” and to pay for private school tuition and rent on luxury homes throughout the country. Kontilai is also charged with failing to file tax returns for tax years 2015 through 2018 when he was engaged in this scheme.The
District of Colorado indictment alleges that Kontilai covered up his theft by providing false testimony, and altering and manufacturing documents in an SEC investigation. Among other things, Kontilai is alleged to have tampered with a bank statement to substantiate his testimony that he loaned the company five million dollars and was justified in taking investor money to pay himself back. The altered bank statement showed the company’s account with a balance of $4,999,065, when the actual balance at the time was $935.An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the Las Vegas Field Offices of the FBI and IRS Criminal Investigation Division with assistance from the Washington and New York Field Offices of the FBI. Trial Attorney Emily Scruggs of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Tony Lopez of the U.S. Attorney’s Office for the District of Nevada are prosecuting the case. The U.S. Attorney’s Office for the District of Colorado, the Justice Department’s Tax Division, and the Justice Department’s Office of International Affairs also provided assistance.
The Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country.
Individuals who believe that they may be a victim in this case should contact the FBI’s Las Vegas Field Office.
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U.S. Attorney's Office Announces More Than $1.6 Million in Grants to Improve Services for Crime Victims in NevadaRead the Press Release
LAS VEGAS, Nev. – U.S. Attorney Nicholas A. Trutanich today announced $1,617,954 in Department of Justice grants to improve services for crime victims in the District of Nevada. The grants, awarded by the Department’s Office of Justice Programs, are part of over $144 million distributed to enhance the district's response to victims of crime throughout the United States.
“The Department of Justice is steadfast in its commitment to protecting public safety and bringing justice to those who have been victimized,” said Attorney General William P. Barr. “The investments we are making today will support service providers as they work to secure the legal rights of victims and put survivors of criminal acts on the road to recovery.”
“These grants will help keep survivors safe and provide additional resources for victim service providers in Nevada,” said U.S. Attorney Trutanich. “We appreciate the Department of Justice’s continued determination to assist victims and their families.”
“As lockdowns and lawlessness fuel crime in America’s homes and communities, more people are vulnerable to victimization and those who have been victimized face new hurdles,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “The Office of Justice Programs is committed to giving our victim service partners the tools they need to better serve their clients and protect victims’ rights.”
The awards made to organizations in the District of Nevada will advance the use of technology, improve community preparedness and law enforcement training and provide emergency and transitional shelter to assist victims of crime. Programs will also support victims of child abuse and fund research projects related to perpetrators and victims of elder abuse. Approximately $64.3 million was awarded under Office for Victims of Crime grant programs; over $54.1 million was awarded under Office of Juvenile Justice and Delinquency Prevention programs; over $19.9 million was awarded under Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking grant programs; and nearly $5.7 million was awarded under two National Institute of Justice grant programs.
The following organizations received funding:
Awardee
Award Amount
Washoe County Sheriff’s Office
$397,309
State of Nevada Division of Child and Family Services
$334,389
Shoshone-Paiute Tribes of the Duck Valley Indian Reservation
$390,575
Nevada Department of Public Safety
$345,681
Te-Moak Tribe of Western Shoshone
$150,000
More information about OJP and its components can be found at www.ojp.gov.
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DOJ Charges More Than 14,200 Defendants with Firearms-Related Crimes in FY20Read the Press Release
LAS VEGAS, Nev. – Today, the Department of Justice announced it has charged more than 14,200 defendants with firearms-related crimes during Fiscal Year (FY) 2020, despite the challenges of COVID 19 and its impact on the criminal justice process.
These cases have been a Department priority since November 2019 when Attorney General William P. Barr announced his commitment to investigating, prosecuting, and combatting gun crimes as a critical part of the Department’s anti-violent crime strategy. These firearms-related charges are the result of the critical law enforcement partnership between United States Attorneys’ Offices and the Bureau of Alcohol, Tobacco, Firearms and Explosives, led by Acting Director Regina Lombardo, who has made firearms-related investigations a priority.
“The number one priority of government is to keep its citizens safe,” said Attorney General Barr. “By preventing firearms from falling into the hands of individuals who are prohibited from having them, we can stop violent crime before it happens. Violating federal firearms laws is a serious crime and offenders face serious consequences. The Department of Justice is committed to investigating and prosecuting individuals, who illegally buy, sell, use, or possess firearms. Reducing gun violence requires a coordinated effort, and we could not have charged more than 14,000 individuals with firearms-related crimes without the hard work of the dedicated law enforcement professionals at the ATF, our U.S. Attorneys’ Offices across the country, and especially all of our state and local law enforcement partners.”
“Protecting the public from violent crime involving firearms is at the core of ATF’s mission,” commented ATF Acting Director Regina Lombardo. “Every day the men and women of ATF pursue and investigate those who use firearms to commit violent crimes in our communities, many of whom are prohibited from possessing firearms from previous convictions. ATF, in collaboration with the U.S. Attorneys’ Offices across the nation, is committed to bringing these offenders to justice for their egregious and violent criminal acts.”
“Project Guardian — along with Project Safe Neighborhoods and our recent initiative, Project Veronica — is a cornerstone of our office’s violent crime reduction strategy,” said U.S. Attorney Trutanich. “To reduce gun violence in Nevada, we will continue prosecuting those who use firearms during a drug trafficking or violent crime offense; felons, domestic abusers, and others prohibited from possessing firearms and ammunition; and those who knowingly buy guns for prohibited persons.”
“Protecting the public is at the forefront of ATF’s mission,” said Special Agent in Charge Patrick Gorman, San Francisco Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “In November 2019, the United States Attorney General announced the launch of the Project Guardian initiative. The initiative focuses on ATF’s central role to combat gun violence. Project Guardian leverages three long-standing pillars of ATF’s comprehensive violent crime reduction strategy, which are the close collaboration between ATF, the U.S. Attorney’s Offices and our law enforcement partners, as well as vigorous prosecution of federal firearms laws and the robust use of crime gun intelligence. Since the start of the Project Guardian initiative, the San Francisco Field Division has worked diligently with our partners to reduce gun violence in our local communities and will continue to advocate the comprehensive use of our National Integrated Ballistic Information Network (NIBIN), firearm tracing and Crime Gun Intelligence Centers by our local, state, and federal partners. We will also continue to deploy our investigative resources strategically and stay intensely focused on our core mission of investigating violent criminals and the firearm traffickers and straw purchasers that arm them.”
Of the more than 14,200 cases charged, over 130 cases have been brought by the District of Nevada, announced U.S. Attorney Trutanich.
Under federal law, it is illegal to possess a firearm if you fall into one of nine prohibited categories including being a felon, illegal alien, or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to illegally purchase - firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, is also a federal offense. The Department is committed to prosecuting these firearms offenses as well as using all modern technologies available to law enforcement such as the National Integrated Ballistic Information Network, known as NIBIN, to promote gun crime intelligence. Keeping illegal firearms out of the hands of violent criminals will continue to be a priority of the Department of Justice and we will use all appropriate, available means to keep the law-abiding people of this country safe from gun crime.
For more information on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atf-form-4473.
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U.S. Attorney's Office Announces Grant of Nearly $500,000 to Assist Offenders Returning to Communities in NevadaRead the Press Release
LAS VEGAS, Nev. – U.S. Attorney Nicholas A. Trutanich today announced a Department of Justice grant of nearly $500,000 to reduce recidivism among adults and juvenile offenders returning to their communities in Nevada after confinement. The grant, awarded by the Department’s Office of Justice Programs, is part of more than $92 million in funding to support reentry efforts throughout the United States.
This award represents the President’s and the Department of Justice’s commitment to assisting people in America’s prisons and detention facilities who have earned the opportunity to take their places back in society.
“Former offenders are ultimately responsible for their own successes and failures, but our criminal and juvenile justice systems have an important role to play in preparing them for the obstacles that lie before them,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “I’m very pleased to make these resources available to help them get back on their feet and contribute to the prosperity of their communities and the betterment of our nation.”
“This grant will help offenders successfully reenter our Nevada communities,” said U.S. Attorney Trutanich. “We appreciate the Department’s Office of Justice Programs’ commitment to reducing recidivism and helping individuals break out of the cycle of repeated offenses, both in Nevada and across the country.”
The reentry and recidivism reduction grants awarded will help communities develop and implement comprehensive strategies to address the challenges posed by reentry and recidivism; support reentry services for detained juveniles and incarcerated parents with children under the age of 18; and support research and evaluation programs to advance understanding about reoffending.
Through the Bureau of Justice Assistance’s Adult Reentry and Employment Strategic Planning Program, more than $4.7 million has been awarded to 11 recipients to develop a strategic plan for integrating correctional and employment programming. In Nevada, the Department of Corrections received $499,835 in grant funds.
For a complete list of individual grant programs, award amounts, and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/reentryfactsheet.pdf. More information about OJP and its components can be found at www.ojp.gov.
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Man Indicted for Impersonating Federal Law Enforcement Officer During A Protest in Downtown Las VegasRead the Press Release
LAS VEGAS Nev. — A man made his initial appearance in federal court today for impersonating a law enforcement officer during a May 2020 protest relating to the death of George Floyd, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Patrick Gorman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Zachary Sanns, 28, of New Jersey, is charged with one count of false personation of an officer or employee of the United States. U.S. Magistrate Judge Cam Ferenbach scheduled a jury trial before U.S. District Judge James C. Mahan on November 30, 2020.
According to court documents, during a protest in downtown Las Vegas on May 30, 2020, Sanns — who is not a sworn law enforcement officer — wore: (a) a tactical vest with magazine pouches and tactical patches identifying him as a federal law enforcement officer; (b) a ballistic helmet with night-vision goggles; (c) a gun belt with a pistol with an extended magazine; and (d) a Taser. In addition, Sanns had an AR-15 style rifle with an optic magnifier.
Throughout the course of the evening, the protest became boisterous, including towards officers. Sanns pretended to be a Special Agent of the Department of Homeland Security Investigations, an employee of the State Department, and a Department of Defense contractor. Further, Sanns falsely stated that he was a federal law enforcement officer and a federal agent, and sought to assist the Las Vegas Metropolitan Police Department’s response to civil unrest.
Sanns faces a statutory maximum sentence of three years in prison and a $250,000 fine. He also faces a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is the product of an investigation by the ATF. Assistant U.S. Attorney Christopher Burton is prosecuting the case.
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Arizona Man Pleads Guilty to Sexually Assaulting A Woman on the Fort Mohave Indian Reservation in LaughlinRead the Press Release
LAS VEGAS, Nev. — An Arizona resident pleaded guilty yesterday to sexually assaulting a woman on the Fort Mohave Indian Reservation in Laughlin, announced United States Attorney Nicholas A. Trutanich for the District of Nevada.
Richard Hernandez, 25, of Fort Mohave, Ariz., pleaded guilty before U.S. District Judge Richard Boulware II to one count of aggravated sexual abuse. A sentencing hearing has been scheduled on January 14, 2021.
“Native American women have experienced unacceptably high rates of violence, including sexual assaults and physical attacks,” said U.S. Attorney Trutanich. “Our office will continue supporting and working closely with our tribal partners to bring perpetrators to justice, and increase public safety at all tribal communities within our district.”
According to court documents and admissions made in court by Hernandez, on or about September 24, 2018, he hit a woman with his fists to coerce her to engage in a sexual act with him. As a result of the assault, the victim suffered multiple facial abrasions and contusions, ear pain, bleeding to the head, and loss of consciousness with a concussion, all of which required medical treatment at a hospital.
Hernandez faces a maximum statutory penalty of life in prison and a $250,000 fine. The sentencing of a defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case was the product of an investigation by the FBI and Fort Mohave Tribal Police Department. Assistant U.S. Attorneys Bianca Pucci and Penelope Brady are prosecuting the case.
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U.S. Attorney Trutanich Announces $886,256 in Grants to Help the District of Nevada Track Sex Offenders and Protect Young AthletesRead the Press Release
LAS VEGAS, Nev. – U.S. Attorney Nicholas A. Trutanich today announced $886,256 in Department of Justice grants to develop and improve systems to register and track sex offenders in the District of Nevada. Awarded by the Department’s Office of Justice Programs, these grants help states, U.S. territories, and tribal communities register and track sex offenders and enable them to meet the requirements of the Sex Offender Registration and Notification Act (SORNA). Funds will also help maintain the Dru Sjodin National Sex Offender Public Website.
“Citizens are better protected from sexual violence when jurisdictions follow SORNA’s standards,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “The Office of Justice Programs is committed to giving state, territory and tribal officials the resources they need to register and track sex offenders and prevent known threats in one community from posing new dangers to others.”
“These new grants will improve public safety in our district and across the country, helping law enforcement track sex offenders as they move into and out of Nevada,” said U.S. Attorney Trutanich. “Our office and our law enforcement partners are grateful to the Office of Justice Programs for continuing to provide resources for us to better serve our communities.”
OJP’s Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking (SMART Office) is awarding approximately $16 million to jurisdictions across the country to develop and enhance programs designed to implement the provisions of SORNA. The SMART Office is awarding almost $800,000 to provide training and technical assistance to jurisdictions implementing SORNA standards. The U.S. Center for SafeSport will receive the $2.3 million Keep Young Athletes Safe grant to continue developing a comprehensive training and prevention program to prevent abuse in the athletic programs of the U.S. Olympic & Paralympic Committee and related sports organizations. The SMART Office will award nearly $1 million to the Institute for Intergovernmental Research to support maintenance, operations and technological improvements for the Dru Sjodin National Sex Offender Public Website, NSOPW.gov, which links state, territorial and tribal public registry websites and allows the public to search for registered sex offenders on a national scale.
“Our mission at the SMART Office is to help our state, tribal and territorial partners register and provide notification to the public of sex offenders within their jurisdictions,” said Kendel Ehrlich, Director of the SMART Office. “We will continue to provide both law enforcement and the public with the tools they need to better inform and protect their communities and themselves.”
The following organizations received funding:
• Nevada Department of Public Safety received $345,681
• Shoshone-Paiute Tribes of the Duck Valley Indian Reservation received $390,575
• Te-Moak Tribe of Western Shoshone received $150,000
More information about OJP and its components can be found at www.ojp.gov.
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Alleged Bank Robbery Crew Member Arrested and Indicted for Bank Robbery in Carson CityRead the Press Release
RENO, Nev. — An alleged member of a bank robbery crew, who was wanted by law enforcement for a bank robbery in Carson City, made his initial appearance yesterday in Reno federal court, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
Antron Dwayne Mouton, 29, of Houston, Texas, is alleged to be a member of a bank robbery crew that traveled to Nevada to rob ATMs. He was indicted by a grand jury in June 2020, with one count of conspiracy to commit bank robbery and one count of bank robbery. Mouton absconded from authorities and remained a fugitive until his arrest on July 31, 2020 in Sealy, Texas, by the FBI’s Criminal Apprehension Team.
According to the indictment, on July 29, 2019, Mouton and two co-conspirators drove behind a worker who was servicing an ATM in Carson City. They intimidated and ordered the worker to move away from the ATM. Mouton and his co-conspirators then stole the money in the ATM and drove away.
Mouton faces a statutory maximum sentence of 20 years in prison and a $250,000 fine. He also faces a period of supervised release and restitution.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is the product of an investigation by the FBI and Carson City Sheriff’s Office. Assistant U.S. Attorney Megan Rachow is prosecuting the case.
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Las Vegas Man Sentenced to Prison for Fraudulent Tax Return SchemeRead the Press Release
A Las Vegas, Nevada, man was sentenced to 70 months in prison for conspiracy to commit mail and wire fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman, U.S. Attorney Nicholas A. Trutanich for the District of Nevada, and Internal Revenue Service-Criminal Investigation Special Agent in Charge Tara Sullivan.
On Aug. 22, 2018, a federal jury in Las Vegas found Terry Williamson guilty of conspiracy to commit mail and wire fraud, in violation of 18 U.S.C. § 1349.
The evidence at trial proved that Williamson played a leading role in a mail and wire fraud conspiracy from January 2009 through April 2011. As part of the scheme, Williamson’s co-conspirators filed false tax returns with the IRS to fraudulently obtain tax refunds. They used the names and social security numbers of deceased taxpayers in order to facilitate the fraud.
To handle the fraudulently obtained refund checks, Williamson opened a bank account using the business name Refund and Rebates Management Inc. (Refund and Rebates). After Williamson or his compatriots deposited the refund checks into the Refund and Rebates bank account, Williamson transferred large amounts of cash to his personal account and to the accounts of his co-conspirators, and used the remaining funds in the account for his own personal enrichment, including a $60,000 fully loaded pick-up truck. More than 480 fraudulent tax refund checks totaling almost $2 million were deposited into Williamson’s account.
In addition to the term of imprisonment imposed, U.S. District Judge Miranda Du ordered Williamson to serve one year of supervised release.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorney Sarah Kiewlicz of the Tax Division and AUSA John Mulcahy (former Tax Division Trial Attorney), who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Las Vegas Man Sentenced to Prison for Fraudulent Tax Return SchemeRead the Press Release
LAS VEGAS, Nev. – A Las Vegas, Nevada, man was sentenced to 70 months in prison for conspiracy to commit mail and wire fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman, U.S. Attorney Nicholas A. Trutanich for the District of Nevada, and Internal Revenue Service-Criminal Investigation Special Agent in Charge Tara Sullivan.
On Aug. 22, 2018, a federal jury in Las Vegas found Terry Williamson guilty of conspiracy to commit mail and wire fraud, in violation of 18 U.S.C. § 1349.
The evidence at trial proved that Williamson played a leading role in a mail and wire fraud conspiracy from January 2009 through April 2011. As part of the scheme, Williamson’s co-conspirators filed false tax returns with the IRS to fraudulently obtain tax refunds. They used the names and social security numbers of deceased taxpayers in order to facilitate the fraud.
To handle the fraudulently obtained refund checks, Williamson opened a bank account using the business name Refund and Rebates Management Inc. (Refund and Rebates). After Williamson or his compatriots deposited the refund checks into the Refund and Rebates bank account, Williamson transferred large amounts of cash to his personal account and to the accounts of his co-conspirators, and used the remaining funds in the account for his own personal enrichment, including a $60,000 fully loaded pick-up truck. More than 480 fraudulent tax refund checks totaling almost $2 million were deposited into Williamson’s account.
In addition to the term of imprisonment imposed, U.S. District Judge Miranda Du ordered Williamson to serve one year of supervised release.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorney Sarah Kiewlicz of the Tax Division and AUSA John Mulcahy (former Tax Division Trial Attorney), who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Las Vegas Man Sentenced to Eight Years in Prison for Trading Child Pornography over Instant Messaging ApplicationRead the Press Release
LAS VEGAS, Nev. — A Las Vegas resident who admitted to receiving and distributing child pornography over Kik Messenger with other users was sentenced today by U.S. District Judge James C. Mahan to eight years in federal prison to be followed by lifetime supervised release, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
Dustin Randall, 25, pleaded guilty in December 2019 to one count of receipt of child pornography and one count of distribution of child pornography. In addition to the terms of imprisonment and supervised release, Randall will be required to register as a sex offender and comply with all requirements under the Sex Offender Registration and Notification Act, as well as follow applicable registration requirements imposed by state law.
According to court documents, between June 10 and 12, 2017, Randall — using Kik user account “dustinwr31” — traded numerous child pornography files with another Kik user, “funnseeker24.” Funnseeker24 sent Randall five cloud storage links containing hundreds of images and videos of child pornography, and Randall sent Funnseeker24 two links containing over a hundred files of child pornography.
The charges resulted from an investigation by the FBI's Internet Crimes Against Children Task Force and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Bianca Pucci and Christopher Burton prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
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DOJ Charges 500+ Domestic Violence-Related Firearm Cases in FY20Read the Press Release
LAS VEGAS, Nev. – Today, the Department of Justice announced it has charged more than 500 domestic violence cases involving firearms during Fiscal Year (FY) 2020. A Department priority since 2019 when Attorney General William P. Barr created the Department of Justice’s first ever-Domestic Violence Working Group, these charges are the result of the critical law enforcement partnership between United States Attorneys’ Offices and the Bureau of Alcohol, Tobacco, Firearms and Explosives, led by Acting Director Regina Lombardo, who has made domestic violence firearms-related investigations a priority.
“Keeping firearms out of the hands of dangerous criminal offenders is one of the Department of Justice’s top priorities,” said Attorney General Barr. “This is especially important when it comes to individuals with prior domestic violence convictions. The statistics are clear that when domestic violence offenders have access to guns, their partners and their families are at much greater risk of falling victim to gun violence. In fact, in some communities across America, roughly half of the homicides are related to domestic violence. The Department of Justice is committed to keeping guns out of the hands of those who are prohibited from having them, and we will continue investigating and prosecuting all domestic violence firearms related crimes.”
“According to the CDC, data suggests that about one in six homicide victims are killed by an intimate partner,” said ATF Acting Director Lombardo. “Nearly half of female homicide victims in the U.S. are killed by a current or former male intimate partner. ATF is committed to aggressively pursuing prohibited possession of firearms due to domestic violence convictions and certain protective orders. It is another way we prevent violent gun crime within our communities.”
Over the past year, the U.S. Attorney’s Office for the District of Nevada has charged 32 firearms cases related to domestic violence, announced U.S. Attorney Nicholas A. Trutanich. Those cases encompass matters where federal firearms charges arose from the defendant’s arrest during a domestic violence incident, cases where the defendant previously had been convicted of a domestic violence offense and/or was subject to a domestic violence protective order, and matters in which the charging document references domestic violence in the defendant’s criminal history.
“With appreciation for additional resources provided by the Department of Justice, our office is making a renewed push to prosecute domestic violence offenders who illegally possess guns,” said U.S. Attorney Trutanich. “I am honored to represent the District of Nevada on the Domestic Violence Working Group, and prioritize these critical cases through Project Veronica. Along with our law enforcement partners, our combined efforts are targeted to preventing domestic violence fatalities, as well as holding accountable individuals who are prohibited from possessing firearms.”
Under federal law, individuals with domestic violence misdemeanor and felony convictions, as well as individuals subject to domestic violence protective orders, are prohibited from possessing firearms. The data shows that offenders with domestic violence in their past pose a high risk of homicide. In fact, domestic violence abusers with a gun in the home are five times more likely to kill their partners.
The Working Group, chaired by U.S. Attorney Erin Nealy Cox, of the Northern District of Texas, disseminates legal guidance on keeping guns out of the hands of domestic violence abusers using three federal statutes:
- 18 USC § 922 (g)(1), felon in possession of a firearm
- 18 USC § 922 (g)(9), possession of a firearm by a prohibited person (misdemeanor crime of domestic violence)
- 18 USC § 922 (g)(8), possession of a firearm while subject to a domestic violence protective order
Based on the Working Group’s guidance, in FY 2020, U.S. Attorneys’ Offices nationwide brought 337 domestic violence felon-in-possession charges, 54 possession while subject to a protective order charges, and 142 possession by a prohibited person charges.
For more information on domestic violence or to get help, visit the National Domestic Violence Hotline website or call 1-800-799-SAFE (7233).
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U.S. Attorney's Office Announces Partnership with Special Inspector General for Pandemic RecoveryRead the Press Release
LAS VEGAS, Nev. – U.S. Attorney Nicholas A. Trutanich and Special Inspector General for Pandemic Recovery Brian D. Miller announced today that the U.S. Attorney’s Office for the District of Nevada has entered into a Memorandum of Understanding (MOU) with the Office of the Special Inspector General for Pandemic Recovery (SIGPR).
“This partnership with SIGPR will help our district continue to carry out the critical work of stopping those who would take advantage of the $2.2 trillion CARES Act,” said U.S. Attorney Trutanich. “We look forward to working closely with SIGPR to, among other things, prosecute fraudsters who are preying on vulnerable individuals during these difficult times and hold accountable fraudulent profiteers.”
“This relationship is a critical step in protecting taxpayer dollars,” said Special Inspector General for Pandemic Recovery Brian D. Miller. “We join U.S. Attorney Nicholas Trutanich and his team to fight fraud, waste, and abuse involving taxpayer dollars appropriated by Congress in response to the pandemic. We will hold accountable and bring to justice those who improperly take or use such money, which is meant to support the Nation’s economic health and recovery.”
The purpose and mission of the MOU is to develop a cooperative effort to investigate and prosecute matters involving the making, purchase, management, and sale of loans, loan guarantees, and other investments made by the Secretary of the Treasury under the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020, and the management by the Secretary of the Treasury of any program established under the CARES Act, in order to achieve just results while using all criminal and civil resources efficiently.
The MOU outlines four objectives: (1) To provide a coordinated response to CARES Act funding fraud, with an emphasis on organized criminal activity, as well as criminal and civil fraud affecting federal money, vulnerable victims, and fraud recidivists; (2) To facilitate legal process, case intake, and swift prosecution of CARES Act-related fraud; (3) To link and associate isolated CARES Act-related complaints with larger schemes and related unlawful activity; and (4) To deter future CARES Act funding fraud through an enhanced awareness of successful criminal prosecution and civil enforcement against individuals and companies involved in CARES-related financial fraud.
Two Assistant U.S. Attorneys — one from the Criminal Division and one from the Civil Division — will serve as liaisons to the partnership between SIGPR and the U.S. Attorney’s Office. These AUSAs will be direct points of contact for case-related inquiries from SIGPR.
The MOU also calls for the U.S. Attorney’s Office to create a streamlined, accelerated process for SIGPR investigations to obtain needed preliminary legal process, including grand jury subpoenas and court orders, subpoenas, and civil investigative demands.
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Northern California Man Sentenced to Prison for Receipt and Distribution of over 1,000 Images of Child PornographyRead the Press Release
LAS VEGAS, Nev. — A northern California man was sentenced today to seven years and six months in prison, to be followed by lifetime supervision, for receiving and distributing more than 1,000 images of child pornography, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
Cody Nathan Patterson, 32, of northern California, resided in Henderson, Nev., at the time of the offense. In March 2020, he pleaded guilty to one count of receipt and distribution of child pornography before U.S. District Judge Andrew P. Gordon, who sentenced Patterson today. In addition to imprisonment and supervised release, Patterson was ordered to pay $89,000 in restitution to victims. Under the Sex Offender Registration Notification Act, Patterson is also required to register as a sex offender.
According to court documents, between May 2013 and November 2015, Patterson distributed and received nearly 1,200 images of child pornography using Skype. In November 2015, Skype reported to the National Center for Missing and Exploited Children (NCMEC) that a user — subsequently identified by investigators as Patterson — uploaded images depicting child pornography. When executing search warrants at Patterson’s residence and vehicle, law enforcement seized electronic devices. Those devices contained more than 10,000 images and videos of child pornography, some of which included sadistic and masochistic content.
The investigation was conducted by the Henderson Police Department and the FBI’s Internet Crimes Against Children Task Force. Assistant U.S. Attorney Jessica Oliva prosecuted the case.
To report child sexual abuse and exploitation, please contact the NCMEC at 1-800-THE-LOST (1-800-843-5678) or online at https://report.cybertip.org/.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
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Five-Time Convicted Felon Sentenced to Prison for Unlawful Possession of A FirearmRead the Press Release
LAS VEGAS, Nev. — A five-time convicted felon was sentenced Monday to three years and four months in prison for unlawful possession of a firearm and threatening his girlfriend’s life with the firearm, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Patrick Gorman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“Working closely with our law enforcement partners, one of our office’s top priorities is reducing the threat of gun violence in our communities by prosecuting felons who illegally possess firearms,” said U.S. Attorney Trutanich. “This case helps illustrate the impact that the Department of Justice seeks to achieve through Project Veronica, which is providing new resources to curb domestic and sexual violence in Nevada, including gun crimes.”
Bryson Lamar Williams, a 34 year old from Las Vegas, pleaded guilty on June 24, 2020, to one count of felon in possession of a firearm. In addition to the term of imprisonment, U.S. District Judge Jennifer A. Dorsey sentenced Williams to three years of supervised release. Williams is prohibited from possessing a firearm because of his prior felony convictions for Attempted Grand Larceny Auto; Possession of a Controlled Substance; Attempted Possession of Stolen Property; Possession of a Firearm by an Ex-Felon; and Attempted Ownership or Possession of a Firearm by a Prohibited Person.
According to court documents, on October 12, 2019, Williams entered his girlfriend’s apartment, where she lived with her two children. Williams retrieved a .40 caliber pistol he had been storing in the closet. He exited the apartment, fired several shots in the parking lot of the apartment complex, and then re-entered the residence to reload the firearm. While in the apartment, he threatened his girlfriend with the firearm, stole her phone, and stated: “If you let anyone know, or call the police then you already know what’s gonna’ happen and everyone’s gonna’ get killed.” Williams attempted to flee and, shortly afterwards, Las Vegas Metropolitan Police Department officers arrested him.
This case resulted from an investigation by the ATF with assistance from the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Daniel Clarkson prosecuted the case.
This case was brought as part of Project Veronica, an initiative that the Department of Justice and the U.S. Attorney’s Office for the District of Nevada launched in August 2020. Project Veronica brings together law enforcement agencies, tribes, victims of domestic violence, and local and state government within Nevada to curb domestic violence and sexual violence. Project Veronica is named in honor of a local victim of domestic violence named Veronica Caldwell. In 2015, Veronica lost her life at the hands of her husband, who also shot and killed Veronica’s daughter Yvonne and her daughter’s boyfriend.
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Supervisor of Drug Testing Facility Who Took Bribes to Falsify over 100 Drug Tests Sentenced to over Four Years in Federal PrisonRead the Press Release
LAS VEGAS, Nev. — Billy Joe West, 57, of Las Vegas, was sentenced today to four years and nine months in federal prison for soliciting and accepting bribes from convicted felons on federal supervised release in exchange for concealing their positive and missed drug tests, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada.
“In addition to violating federal law, the defendant’s breach of the public’s trust subverted the recovery and rehabilitation of many individuals undergoing court-ordered substance abuse treatment,” said U.S. Attorney Trutanich. “This reinforces why employees of federal contractors must put the public interest over their self interests.”
West pleaded guilty on June 1, 2020, to one count of prevention of communication of supervised release and probation violation. In addition to the term of imprisonment, U.S. District Judge Jennifer A. Dorsey sentenced West to three years of supervised release.
According to court documents and West’s admissions, his scheme caused over 100 false records to be made and reported to the U.S. Probation Office. West was a supervisor at WestCare Nevada, Inc., a federally contracted drug testing facility that conducted, among other services, court-ordered urinalysis drug testing of supervisees who are on federal probation and supervised release. West’s responsibilities included administering urinalysis drug testing.
Between June 21, 2018, and March 19, 2020, West misused his position as a supervisor and misled U.S. Probation Officers through a scheme to solicit and accept bribes from supervisees, in exchange for reporting false negative drug tests to the U.S. Probation Office. As a result of those false negative reports, probation officers were deceived into believing that certain supervisees were complying with court-ordered terms of their supervised release. But the supervisees had in fact violated terms of their supervised release by either missing mandatory drug tests or testing positive for controlled substances. Following West’s arrest in March 2020, the number of “no-shows” and positive drug test results that WestCare reported to the U.S. Probation Office increased.
This case was the product of an investigation by the FBI. Assistant U.S. Attorney Jessica Oliva prosecuted the case.
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Five Individuals Face Federal Charges for Damaging U.S. Courthouse During May 30, 2020 Protest in Las VegasRead the Press Release
LAS VEGAS, Nev. — U.S. Attorney Nicholas A. Trutanich for the District of Nevada, Special Agent in Charge Aaron C. Rouse for the Federal Bureau of Investigation (FBI), U.S. Marshal Gary Schofield, and Sheriff Joseph Lombardo of the Las Vegas Metropolitan Police Department (LVMPD) announced today that five individuals are facing federal charges for causing damage to the Foley Federal Building and U.S. Courthouse on May 30, 2020.
“Agitators at the May 30 protest in downtown Las Vegas allegedly damaged a federal courthouse and threatened to attack a law enforcement officer,” said U.S. Attorney Trutanich. “These cases should reinforce that our office will protect lawful First Amendment activity — while also upholding the rule of law by prosecuting those who would incite and escalate violence, vandalism, and destruction.”
“The FBI’s mission is to uphold the Constitution, which includes freedom of speech and the right to assemble,” said Special Agent in Charge Rouse. “A line was crossed in what was intended to be a peaceful protest in Las Vegas and federal property was destroyed as a result of the alleged actions of these subjects. We will continue working with our federal, state and local partners to ensure that those that destroy parts of our city are held accountable."
“The United States Marshals have protected the Federal Judiciary since 1789. This investigation is part of a joint effort by many agencies,” said Marshal Schofield. “These arrests ensure that the community continues to have unfettered access to Justice.”
Alejandro
Avalos (28), Alexander Kostan (21), Reginald Lewis (19), Kelton K. Simon (34), and Jeanette R. Wallace (24), all of Las Vegas, have been each charged in separate criminal complaints with one count of depredation against property of the United States.As alleged in court documents, on the evening of May 30, 2020, a protest in front of the federal buildings in downtown Las Vegas following the May 25th death of George Floyd in Minneapolis, MN became boisterous. Fireworks were set off, walls were spray painted with obscenities and graffiti, and small bushes were lit on fire. Several individuals went to the east entrance of the Foley Federal Building and U.S. Courthouse (FFB), threw paint on the windows, and kicked and struck the windows with objects. According to an off-duty Federal Protective Service Protection Security Officer who was stationed inside the FFB that night, the crowd could see him inside the building and he could hear persons saying, “Get him!” and “Get the cop!”
Additional police units arrived at the FFB and the crowd was ultimately dispersed. The cost of repairing and cleaning up the damage done to the FFB was estimated to be about $71,335.72.
With respect to the five individuals facing federal charges:
- Footage captured by surveillance cameras at the FFB, as well as social media videos, show Avalos striking the building’s windows with a blue metal bar, and breaking at least one window.
- Kostan repeatedly kicked the FFB’s windows.
- Simon repeatedly threw what appears to be a metal object, in the shape of the letter “N,” at the FFB windows. Metal letters that had been attached to the FFB’s exterior were torn off by the crowd.
- Wallace picked up and threw what appeared to be rocks and a paint can at FFB windows.
- Lewis repeatedly kicked FFB windows and doors.
Avalos, Kostan, Lewis, Simon, and Wallace have all been arraigned in federal court. If convicted, each defendant faces a statutory maximum penalty of 10 years in prison and a $250,000 fine. The sentencing of a defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
A criminal complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt. Every defendant is presumed innocent unless and until proven guilty in a court of law.
These five cases are the product of an investigation by the FBI's Las Vegas Violent Crimes Task Force and LVMPD. Assistant U.S. Attorneys Lisa Cartier-Giroux and Kimberly Sokolich are prosecuting the cases.
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Montana Broker Sentenced to Prison for Multimillion-Dollar Investment-Fraud SchemeRead the Press Release
A Montana man was sentenced to 87 months in prison Tuesday for his role in a multimillion-dollar international investment-fraud conspiracy.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Field Office made the announcement.
Sean Finn, 51, of Whitefish, Montana, was sentenced by U.S. District Judge Kent J. Dawson of the District of Nevada. Judge Dawson also ordered Finn to pay $6,075,000 in restitution and to forfeit $830,000. On Feb. 4, 2020, after a one-week trial, Finn was convicted by a jury of one count of conspiracy to commit securities fraud and wire fraud, four counts of wire fraud, and four counts of securities fraud. He was acquitted of one count of wire fraud.
According to the evidence presented at trial, Finn conspired with others in the United States and Switzerland to promote investments and loan instruments that he knew to be fictitious. Finn and his co-conspirators told victims that, for an up-front payment ranging from $100,000 to $1 million, a Swiss company known as Malom Group AG (Malom), whose name stood for “Make A Lot Of Money,” would provide access to lucrative investment opportunities and substantial cash loans.
The evidence showed that to effectuate this scheme, the defendant and his co-conspirators provided victims with fabricated bank documents purporting to show that Malom held hundreds of millions of dollars in overseas bank accounts, as well as documents falsely stating that Malom had previously closed similar deals. The evidence showed that when victims wired their money into an escrow account controlled by the co-conspirators, the money was released and disbursed to, among others, Finn for his own personal use. The evidence further showed that shortly before he was indicted in 2013, Finn fled to Canada, where he was arrested in 2014 and ultimately extradited back to the United States in 2018. According to the evidence presented at trial, losses to the victims from the scheme totaled more than $3.8 million.
Finn was charged together with five other defendants. Two of these defendants, Anthony Brandel and James Warras, were found guilty of conspiracy and multiple counts of wire fraud and securities fraud following a jury trial in 2015. Brandel and Warras were each sentenced on Aug. 3, 2016 to 87 months in prison, followed by three years of supervised release. A third defendant, Joseph Micelli, pleaded guilty to conspiracy to commit wire fraud and securities fraud in 2015 and was sentenced on Feb. 23, 2016 to 60 months in prison, followed by three years of supervised release. The other two defendants, Martin Schlaepfer and Hans-Jurg Lips, remain at large outside the United States. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Las Vegas Field Office investigated the case. Assistant Deputy Chief Anna G. Kaminska and Trial Attorney Blake C. Goebel of the Criminal Division’s Fraud Section prosecuted the case with assistance from the Justice Department’s Office of International Affairs and the U.S. Attorney’s Office for the District of Nevada. Deputy Chief Brian Young of the Fraud Section previously handled the prosecution. The Securities and Exchange Commission’s Enforcement Division, which conducted a parallel civil-enforcement investigation, as well as the Royal Canadian Mounted Police, also provided valuable assistance.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Montana Broker Sentenced to Prison for Multimillion-Dollar Investment-Fraud SchemeRead the Press Release
WASHINGTON – A Montana man was sentenced to 87 months in prison Tuesday for his role in a multimillion-dollar international investment-fraud conspiracy.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Field Office made the announcement.
Sean Finn, 51, of Whitefish, Montana, was sentenced by U.S. District Judge Kent J. Dawson of the District of Nevada. Judge Dawson also ordered Finn to pay $6,075,000 in restitution and to forfeit $830,000. On Feb. 4, 2020, after a one-week trial, Finn was convicted by a jury of one count of conspiracy to commit securities fraud and wire fraud, four counts of wire fraud, and four counts of securities fraud. He was acquitted of one count of wire fraud.
According to the evidence presented at trial, Finn conspired with others in the United States and Switzerland to promote investments and loan instruments that he knew to be fictitious. Finn and his co-conspirators told victims that, for an up-front payment ranging from $100,000 to $1 million, a Swiss company known as Malom Group AG (Malom), whose name stood for “Make A Lot Of Money,” would provide access to lucrative investment opportunities and substantial cash loans.
The evidence showed that to effectuate this scheme, the defendant and his co-conspirators provided victims with fabricated bank documents purporting to show that Malom held hundreds of millions of dollars in overseas bank accounts, as well as documents falsely stating that Malom had previously closed similar deals. The evidence showed that when victims wired their money into an escrow account controlled by the co-conspirators, the money was released and disbursed to, among others, Finn for his own personal use. The evidence further showed that shortly before he was indicted in 2013, Finn fled to Canada, where he was arrested in 2014 and ultimately extradited back to the United States in 2018. According to the evidence presented at trial, losses to the victims from the scheme totaled more than $3.8 million.
Finn was charged together with five other defendants. Two of these defendants, Anthony Brandel and James Warras, were found guilty of conspiracy and multiple counts of wire fraud and securities fraud following a jury trial in 2015. Brandel and Warras were each sentenced on Aug. 3, 2016 to 87 months in prison, followed by three years of supervised release. A third defendant, Joseph Micelli, pleaded guilty to conspiracy to commit wire fraud and securities fraud in 2015 and was sentenced on Feb. 23, 2016 to 60 months in prison, followed by three years of supervised release. The other two defendants, Martin Schlaepfer and Hans-Jurg Lips, remain at large outside the United States. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Las Vegas Field Office investigated the case. Assistant Deputy Chief Anna G. Kaminska and Trial Attorney Blake C. Goebel of the Criminal Division’s Fraud Section prosecuted the case with assistance from the Justice Department’s Office of International Affairs and the U.S. Attorney’s Office for the District of Nevada. Deputy Chief Brian Young of the Fraud Section previously handled the prosecution. The Securities and Exchange Commission’s Enforcement Division, which conducted a parallel civil-enforcement investigation, as well as the Royal Canadian Mounted Police, also provided valuable assistance.
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Argentine Citizen Sentenced to 35 Years in Prison for Child Sexual Exploitation and Distribution of Child Pornography over the Dark WebRead the Press Release
LAS VEGAS, Nev. – Andres Rafael Viola, 36, an Argentine citizen residing in Las Vegas, was sentenced today to 35 years in federal prison for repeatedly sexually assaulting a child, producing images of the sexual abuse, and possessing hundreds of images and videos of child sexual assault, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada, Special Agent in Charge Francisco Burrola for Homeland Security Investigations (HSI), and Sheriff Joseph Lombardo of the Las Vegas Metropolitan Police Department (LVMPD).
Viola pleaded guilty in February 2020 to sexual exploitation of children and possession of child pornography. In addition to imprisonment, U.S. District Judge Richard F. Boulware II sentenced Viola to a lifetime term of supervised release. Under the Sex Offender Registration and Notification Act (SORNA), Viola must register as a sex offender. Viola’s sentence also includes a $10,000 assessment pursuant to the Justice of Victims of Trafficking Act.
According to court documents, in May 2019, the National Center for Missing and Exploited Children (NCMEC) received a report from Yahoo, Inc. indicating that a user received child pornography sent by Viola, who was using the dark web Tor network to distribute images of child sexual assault.
On June 7, 2019, federal law enforcement arrested Viola at his Las Vegas residence. Law enforcement determined that Viola had supervisory control over a child victim. A forensic examination of electronic devices that were seized from Viola’s home revealed nearly 350 child pornography images and video, including Viola’s sexual exploitation of the child victim and a curated collection of child pornography from other victims. Viola had used the dark web to distribute, trade, and share the child sexual assault materials he created of the child victim.
For the hands-on offenses related to the child victim, Viola pleaded guilty in Nevada state court to one count of Sexual Assault of a Child under the Age of 14.
This case was the product of an investigation by HSI and the LVMPD. Assistant U.S. Attorneys Bianca Pucci and Elham Roohani prosecuted the case.
To report child sexual abuse and exploitation, contact the NCMEC at 1-800-THE-LOST (1-800-843-5678) or online at https://report.cybertip.org/.
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 U.S. Attorney’s Offices and the Department of Justice’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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U.S. Attorney Nicholas A. Trutanich Announces $500,000 Award to Improve School SafetyRead the Press Release
LAS VEGAS, Nev. – U.S. Attorney Nicholas A. Trutanich for the District of Nevada announced today that the Clark County School District Police Department received $500,000 from the Department of Justice’s Office of Community Oriented Policing Services (COPS Office) School Violence Prevention Program (SVPP). Nationally, the COPS Office SVPP awarded nearly $50 million in school safety funding. SVPP provides up to 75% funding for school safety measures in and around primary and secondary schools and school grounds.
“On behalf of our communities, we appreciate this grant from the COPS Office to help the Clark County School District safeguard our children and schools,” said U.S. Attorney Trutanich. “These funds are a significant step towards keeping children in Clark County and across the country out of harm’s way.”
“With the new school year underway, the safety of our nation’s students remains paramount,” said COPS Office Director Phil Keith. “Although this school year may look different at the start, now is the ideal time to make preparations to enhance school safety for when all of our children are back in the classroom.”
The Students, Teachers, and Officers Preventing School Violence Act of 2018 (STOP School Violence Act of 2018) gave the COPS Office authority to provide awards directly to states, units of local government, Indian tribes, and public agencies (such as school districts and law enforcement agencies) to improve security at schools and on school grounds in the jurisdiction of the grantee through evidence-based school safety programs. The award announced today can be used for coordination with law enforcement; training for local law enforcement officers to prevent student violence; metal detectors, locks, lighting, and other deterrent measures; technology for expedited notification of local law enforcement during an emergency; and other measures that provide a significant improvement in security. The full list of SVPP awards can be found here: https://cops.usdoj.gov/pdf/2020AwardDocs/svpp/Award_List.pdf.
In addition to the school safety grants announced today, the COPS Office School Safety Working Group, which is composed of representatives from eight national law enforcement organizations, has identified 10 essential actions that can be taken by schools, school districts, and law enforcement agencies to help prevent critical incidents involving the loss of life or injuries in our nation's schools and to respond rapidly and effectively when incidents do occur. The Ten Essential Actions to Improve School Safety are applicable to school shootings as well as to other areas of school safety, including natural disasters and traumatic events such as student suicide. Adopting policies and practices based on the recommendations in this publication can help make school communities safer and save lives.
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The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of more than 134,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Manufacturers of “Spice” Sentenced for Operating a Continuing Criminal Enterprise and Other CrimesRead the Press Release
Two defendants were sentenced Wednesday to 20 years each in federal prison for crimes committed in connection with the manufacture of synthetic cannabinoid products (commonly referred to as “spice”), operating a continuing criminal enterprise, manufacturing and distributing controlled substance analogues, wire fraud, mail fraud, money laundering, maintaining a drug premises, and possession of a listed chemical with the intent to manufacture a controlled substance.
On July 3, 2019, following a ten-day federal jury trial in Las Vegas, Nevada, Charles Burton Ritchie, 49, of Park City, Utah, and Benjamin Galecki, 46, of Pensacola, Florida, were found guilty of 24 counts, including operating a continuing criminal enterprise, manufacturing and possessing with the intent to distribute controlled substance analogues, and money laundering, among other related charges.
“Charles Burton Ritchie and Benjamin Galecki operated a nationwide criminal enterprise, selling dangerous drugs worth millions of dollars that contained illegal ingredients imported from China,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “These sentences demonstrate the department’s commitment to aggressively pursuing criminals who seek to circumvent U.S. drug laws by selling dangerous drugs that threaten the health of our communities across the nation.”
“Our office appreciates the opportunity to work closely with our law enforcement partners and the national Organized Crime Drug Enforcement Task Forces to dismantle this illegal drug-manufacturing operation,” said U.S. Attorney Nicholas A. Trutanich of the District of Nevada. “Our joint efforts have helped curb the flow of spice into communities across the country.”
“Working collaboratively with our justice partners to rid our communities of spice and other toxic cannabinoid products helps save lives,” said Assistant Special Agent in Charge Dan Neill of the U.S. Drug Enforcement Administration's Las Vegas Field Office. “Disrupting this organization sends a clear message that we will not tolerate those who prey on our communities to further their criminal activity.”
“Ritchie and Galecki benefited greatly at the detriment of our community and others by putting illegal drugs on the streets and profiting from it,” said Special Agent in Charge Tara Sullivan, IRS Criminal Investigation. “IRS Criminal Investigation is proud to serve on the side of justice to clean up the streets.”
According to court documents and evidence presented during trial, from March 21 to July 25, 2012, Ritchie and Galecki owned and managed Zencense Incenseworks, a company that (a) manufactured smokable synthetic cannabinoid products and (b) marketed and sold them as “potpourri,” “incense,” or “aromatherapy.” Ritchie and Galecki rented a warehouse in Las Vegas for the sole purpose of manufacturing these synthetic products, which contained the dangerous chemical XLR-11 — a controlled substance analogue. At the Las Vegas warehouse, a Zencense employee would mix XLR-11 with acetone and liquid flavoring, and then apply the chemical mixture to dried plant material. Next, the employee would mail the compounded mixture to Ritchie and Galecki in Pensacola, Florida, where other workers would place the spice into small retail bags.
The defendants sold their products — with suggestive brand names such as “Bizarro,” “Orgazmo,” “Headhunter,” and “Defcon 5 Total Annihilation” — to smoke shops across the United States. From June 1 to July 25, 2012, Ritchie and Galecki were responsible for manufacturing and distributing approximately 4,000 pounds of spice, and they made approximately $1.61 million selling XLR-11 spice manufactured in Nevada.
In two separate cases that were transferred to the District of Nevada, the defendants were each sentenced for money laundering and unlawful monetary transactions. Ritchie received nine years in federal prison for charges brought in the Southern District of Alabama and nine years in federal prison for charges brought in the Eastern District of Virginia. Galecki received eight years in federal prison for charges brought in the Southern District of Alabama and eight years in federal prison for charges brought in the Eastern District of Virginia. All sentences will run concurrent to each other. Additionally, the defendants were ordered to forfeit approximately $2.5 million as a result of their illegal enterprise in the District of Nevada.
This case was investigated by the IRS-Criminal Investigation, the DEA, and the Las Vegas Metropolitan Police Department. Trial Attorneys Cole Radovich and Acting Assistant Deputy Chief Jason Ruiz of the Criminal Division’s Narcotic and Dangerous Drug Section and Assistant U.S. Attorneys James Keller and Daniel Hollingsworth of the District of Nevada prosecuted the case. Assistant U.S. Attorney Deborah Griffin of the Southern District of Alabama and Assistant U.S. Attorneys Eric Hurt and Kevin Hudson of the Eastern District of Virginia prosecuted the separate cases that were transferred to the District of Nevada.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (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. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Las Vegas Resident Pleads Guilty to Fraudulently Obtaining Nearly $1.2 Million in Benefits from the Social Security Administration and Department of Veterans AffairsRead the Press Release
LAS VEGAS, Nev. — A Las Vegas resident pleaded guilty in federal court yesterday to fraudulently obtaining nearly $1.2 million in Social Security Administration (SSA) and Department of Veterans Affairs (VA) benefits, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
Javier Montano, 57, of Las Vegas, pleaded guilty to one count of theft of government funds. He is scheduled to be sentenced by U.S. District Judge Jennifer Dorsey on December 14, 2020.
According to court documents, Montano — who was the branch manager of a bank in Las Vegas — received information about two accounts with large balances and no activity:
- The first account (Account A) was held by a Las Vegas resident who was receiving SSA retirement benefits. The individual passed away in February 1997. The SSA was not notified about the individual’s death, and benefits continued to be paid into the account.
- The second account (Account B) was held by a Las Vegas resident who was receiving both SSA retirement benefits and VA benefits. The individual passed away in June 2011. Neither the SSA nor the VA was notified about the individual’s death, and benefits continued to accumulate in the account.
Through a bank computer, Montano ordered debit cards for both accounts, using them to withdraw cash — which he either spent or deposited into his personal bank account — and to make purchases for his personal use and benefit. In addition, Montano ordered and wrote checks (for his personal use) for Account B. Montano also used his authority as a branch manager to authorize a $35,000 cashier’s check from Account B. He then used the funds to buy a luxury car, which he has agreed to forfeit to the United States.
In total, between August 2015 and June 2020, Montano fraudulently obtained: (a) approximately $436,686.80 in SSA benefits to which he was not entitled; and (b) approximately $757,985.88 in VA benefits to which he was not entitled.
The statutory maximum penalty faced by Montano is 10 years in prison and a $250,000 fine. The sentencing of a defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case was the product of an investigation by the Social Security Administration, Office of Inspector General, and Department of Veterans Affairs, Office of Inspector General. Assistant U.S. Attorney Jamie Mickelson is prosecuting the case.
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- The first account (Account A) was held by a Las Vegas resident who was receiving SSA retirement benefits. The individual passed away in February 1997. The SSA was not notified about the individual’s death, and benefits continued to be paid into the account.
Reno Man Sentenced to Prison for Possessing Thousands of Images and Videos of Child Sexual AbuseRead the Press Release
RENO, Nev. – A Reno man was sentenced today to 5 years and 3 months in federal prison for possessing thousands of child sexual abuse images and videos, including prepubescent minors involved in sexually explicit conduct and sadistic and masochistic conduct, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
Daren Wayne Phillips, 51, pleaded guilty on June 5, 2019, to one count of possession of child pornography. In addition, Chief U.S. District Judge Miranda Du sentenced Phillips to 20 years of supervised release following the term of imprisonment. Under the Sex Offender Registration Notification Act, Phillips will also be required to register as a sex offender.
According to court documents, in April 2018, an individual presented Phillips’ laptop computer to law enforcement and reported finding child pornography on the computer. Investigators found child pornography on Phillips’ computer. Phillips admitted that, starting in 2016 to April 2018, he possessed on his computer: (a) 4,753 images and 538 videos of child pornography; and (b) an additional 17,036 images and 449 videos containing child erotica or nudity. Some of the images depicted prepubescent minors engaging in sexually explicit conduct, including sadistic and masochistic conduct.
The case was investigated by the Northern Nevada Child Exploitation Task Force, the Washoe County Sheriff’s Office, and the Nevada Attorney General’s Office. Assistant U.S. Attorneys James Keller and Andolyn Johnson prosecuted the case.
To report child sexual abuse and exploitation, please contact the National Center for Missing & Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or online at https://report.cybertip.org/.
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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
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Las Vegas Man Indicted for Illegal Possessions of 3-D Printed Glock Switches and Firearms SuppressorsRead the Press Release
LAS VEGAS, Nev. — A Las Vegas resident made his initial appearance in federal court on September 4, 2020 for illegally possessing machine guns and unregistered firearm suppressors, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada, Special Agent in Charge Frank Burrola for Homeland Security Investigations (HSI), Special Agent in Charge Patrick Gorman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Sheriff Joseph Lombardo of the Las Vegas Metropolitan Police Department (LVMPD).
Justin Pham, 30, of Las Vegas, was charged with one count of illegal possession of a machine gun and two counts of possession of a firearm not registered in the National Firearms Registration and Transfer Record. A jury trial has been scheduled before U.S. District Judge Jennifer A. Dorsey on November 3, 2020.
According to the indictment and arguments made in court, on or about August 15, 2020, Pham possessed three Glock semi-automatic firearms that he had modified to fire as fully automatic weapons without manual reloading. In addition, Pham possessed five firearm silencers that were not registered to him in the National Firearms Registration and Transfer Record.
As alleged, law enforcement became aware of Pham after an anonymous tipster reported that Pham had made threats that he was planning to commit a shooting. Pham also told the tipster that he had converted firearms into automatic weapons by using a 3-D printer. Law enforcement executed a search warrant on Pham’s home and vehicle. They located automatic weapons, which were Glock semi-automatic handguns that Pham converted into fully automatic firearms through Glock switches created from a 3-D printer. Additionally, law enforcement located the five suppressors, as well as numerous firearms and firearm parts, ammunition, and a 3-D printer.
Pham faces a statutory maximum sentence of: (a) ten years in prison and a $250,000 fine for the illegal possession of a machine gun charge; and (b) ten years in prison and a $250,000 fine for each count of possession of a firearm not registered in the National Firearms Registration and Transfer Record. In addition to imprisonment and monetary penalties, Pham also faces a period of supervised release and restitution.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is the product of a coordinated investigation by HSI, ATF, LVMPD, the Federal Bureau of Investigation, and the U.S. Postal Inspection Service. Assistant U.S. Attorney Stephanie Ihler is prosecuting the case.
The Clark County District Attorney’s Office has also filed charges on behalf of the State of Nevada against Pham.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the ATF when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
For more information about Project Guardian, visit https://www.justice.gov/opa/pr/attorney-general-william-p-barr-announces-launch-project-guardian-nationwide-strategic-plan.
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Two Reno Residents Sentenced for Possession of Child PornographyRead the Press Release
RENO, Nev. — Two Reno residents — who each pleaded guilty to possession of child pornography in separate cases — were sentenced today to federal prison, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada. Chief U.S. District Judge Miranda Du presided over both sentencing hearings.
U.S. v. Edward C. Wright
Edward C. Wright, 60, of Reno (Sun Valley), Nevada, was indicted in February 2019 and pleaded guilty to possession of child pornography in September 2020. Wright was sentenced to four years and nine months in federal prison, to be followed by lifetime supervised release.
According to court documents, in March 2018, detectives with the Regional Sex Offender Notification Unit began investigating Wright for failure to change his address as a sex offender. Wright is required to register as a sex offender due to a prior felony conviction in 2003 for possession of child pornography. Since 2003, Wright had three convictions for failure to register as a sex offender.
In January 2019, a forensic examination of Wright’s tablet revealed approximately 250 images of child sexual assault, including masochistic or sadistic material. The images were stored in a specialized application that disguises itself as a clock, and is designed to hide user files in a hidden vault.
U.S. v. Luis O. Rodriguez
Luis O. Rodriguez, 59, of Fallon, Nevada, was indicted in January 2019 and pleaded guilty to possession of child pornography in August 2019. Rodriguez was sentenced to three years in federal prison, to be followed by lifetime supervised release. In addition, Rodriguez was ordered to pay a total of $24,000 in restitution to eight victims.
According to court documents, between January 2017 and July 2018, law enforcement downloaded child pornography (via a peer-to-peer file sharing network) from an electronic device located at Rodriguez’s residence. During the execution of a search warrant at Rodriguez’s residence, law enforcement seized four electronic devices. A forensic examination of the seized devices revealed more than 150,000 images and videos of child sexual assault, including sadistic and masochistic conduct involving children under 12 years old.
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Under the Sex Offender Registration Notification Act, both Wright and Rodriguez are required to register as sex offenders.
These cases were investigated by members of the Internet Crimes Against Children Task Force (which includes Sparks Police Department, Washoe County Sheriff’s Office, Homeland Security Investigations, Federal Bureau of Investigation, Office of the Nevada Attorney General, Reno Police Department, Carson City Sheriff’s Office, and Lyon County Sheriff’s Office). Assistant U.S. Attorney Randy St. Clair prosecuted the cases.
These cases were 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 U.S. Attorney’s Offices and the Department of Justice’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Doctor Indicted for Unlawful Distribution of Opioid MedicationsRead the Press Release
LAS VEGAS, Nev. — A Las Vegas doctor made his initial appearance in federal court today for the unlawful distribution of opioid pain medications, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
Dr. William Alvear, 65, of Las Vegas, was charged by indictment with three counts of distribution of a controlled substance – Hydrocodone, and five counts of distribution of a controlled substance – Alprazolam. A jury trial is scheduled before U.S. District Judge Jennifer A. Dorsey on November 17, 2020.
According to allegations in the indictment, from March to May 2020, Alvear unlawfully distributed Hydrocodone and Alprazolam without a legitimate medical purpose and outside the usual course of professional practice. Hydrocodone, a Schedule II controlled substance, has a high potential for abuse and can lead to severe psychological or physical dependence. Alprazolam, common brand Xanax, is a Schedule IV controlled substance that also has the potential for abuse and can lead to limited psychological or physical dependence.
If convicted, Alvear faces a statutory maximum sentence is 20 years in prison and a $1,000,000 fine. The statutory sentence is prescribed by Congress and is provided here for informational purposes only.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Peter S. Levitt is prosecuting the case.
If you have a tip or information about illegal sales or distribution of prescription opioids by doctors and pharmacies, please call the Drug Enforcement Administration at 1-877-Rx-Abuse (877-792-2873).
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Russian National Indicted for Conspiracy to Introduce Malware into a Computer NetworkRead the Press Release
A federal grand jury in the District of Nevada returned an indictment today charging a Russian national for his role in a conspiracy to intentionally cause damage to a protected computer.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Nicholas A. Trutanich of the District of Nevada, and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Field Office made the announcement.
The indictment alleges that Egor Igorevich Kriuchkov, 27, a citizen of Russia, attempted to recruit an employee of a company located in Nevada, with the purpose of introducing malicious software into the company’s computer network, extracting data from the network, and thereafter extorting ransom money from the company under the threat of making the extracted data public.
According to the indictment, from about July 16, 2020, to about Aug. 22, 2020, Kriuchkov conspired with associates to recruit an employee to introduce malware into the computer network of the employee’s company.
The malware would purportedly provide Kriuchkov and his co-conspirators with access to the data within the computer system. After the malware was introduced, Kriuchkov and his co-conspirators would extract data from the network and then threaten to make the information public, unless the company paid their ransom demand.
Kriuchkov was arrested on Aug. 22, 2020, in Los Angeles, California and had his initial appearance before U.S. Magistrate Judge Alexander F. MacKinnon of the U.S. District Court in the Central District of California. Kriuchkov was detained pending trial and has not yet appeared in the District of Nevada.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The investigation was led by the FBI’s Las Vegas Field Office with assistance by the FBI’s Los Angeles and Sacramento Field Offices and the Washoe County (Nevada) Sheriff’s Office. The case is being prosecuted by Senior Counsel C.S. Heath and Trial Attorney Thomas Dettore of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Richard Casper of the District of Nevada.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Russian National Indicted for Conspiracy to Introduce Malware into A Computer NetworkRead the Press Release
WASHINGTON – A federal grand jury in the District of Nevada returned an indictment yesterday charging a Russian national for his role in a conspiracy to intentionally cause damage to a protected computer.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Nicholas A. Trutanich of the District of Nevada, and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Field Office made the announcement.
The indictment alleges that Egor Igorevich Kriuchkov, 27, a citizen of Russia, attempted to recruit an employee of a company located in Nevada, with the purpose of introducing malicious software into the company’s computer network, extracting data from the network, and thereafter extorting ransom money from the company under the threat of making the extracted data public.
According to the indictment, from about July 16, 2020, to about Aug. 22, 2020, Kriuchkov conspired with associates to recruit an employee to introduce malware into the computer network of the employee’s company. The malware would purportedly provide Kriuchkov and his co-conspirators with access to the data within the computer system. After the malware was introduced, Kriuchkov and his co-conspirators would extract data from the network and then threaten to make the information public, unless the company paid their ransom demand.
If convicted, Kriuchkov faces a statutory maximum sentence of five years in prison and a $250,000 fine. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes only. Kriuchkov also faces a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The investigation was led by the FBI’s Las Vegas Field Office with assistance by the FBI’s Los Angeles and Sacramento Field Offices and the Washoe County (Nevada) Sheriff’s Office. The case is being prosecuted by Senior Counsel C.S. Heath and Trial Attorney Thomas Dettore of the Criminal Division’s Computer Crime and Intellectual Property Section, and Assistant U.S. Attorney Richard Casper of the District of Nevada.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Las Vegas Man Indicted for Falsifying Auto Collision Centers’ Tax ReturnsRead the Press Release
A federal grand jury in Las Vegas, Nevada, returned a superseding indictment today charging a Las Vegas man with conspiracy to defraud the IRS, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, U.S. Attorney Nicholas A. Trutanich for the District of Nevada, and Special Agent in Charge Tara Sullivan for the IRS-Criminal Investigation.
According to the superseding indictment, Lance K. Bradford conspired with others to prepare tax returns on behalf of several automotive collision centers falsely claiming that the centers and their owners incurred millions in deductible expenses. From 2013 through 2015, these false returns allegedly claimed more than $11 million in false deductions, resulting in significant underreporting of business income and taxes due to the IRS.
Bradford was previously charged with aiding and assisting in the filing of false individual, corporate, and partnership returns on behalf of other individuals and businesses.
If convicted, Bradford faces a maximum sentence of five years in prison for the conspiracy charge and three years in prison for each of the 29 counts of aiding and assisting the filing of a false tax return. Bradford also faces a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich commended special agents of IRS-Criminal Investigation and the Federal Bureau of Investigation, who conducted the investigation, and Trial Attorney Patrick Burns of the Tax Division and Assistant U.S. Attorney Steve Myhre, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Las Vegas Man Indicted for Falsifying Auto Collision Centers’ Tax ReturnsRead the Press Release
LAS VEGAS, Nev. - A federal grand jury in Las Vegas, Nevada, returned a superseding indictment today charging a Las Vegas man with conspiracy to defraud the IRS, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, U.S. Attorney Nicholas A. Trutanich for the District of Nevada, and Special Agent in Charge Tara Sullivan for the IRS-Criminal Investigation.
According to the superseding indictment, Lance K. Bradford conspired with others to prepare tax returns on behalf of several automotive collision centers falsely claiming that the centers and their owners incurred millions in deductible expenses. From 2013 through 2015, these false returns allegedly claimed more than $11 million in false deductions, resulting in significant underreporting of business income and taxes due to the IRS.
Bradford was previously charged with aiding and assisting in the filing of false individual, corporate, and partnership returns on behalf of other individuals and businesses.
If convicted, Bradford faces a maximum sentence of five years in prison for the conspiracy charge and three years in prison for each of the 29 counts of aiding and assisting the filing of a false tax return. Bradford also faces a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich commended special agents of IRS-Criminal Investigation and the Federal Bureau of Investigation, who conducted the investigation, and Trial Attorney Patrick Burns of the Tax Division and Assistant U.S. Attorney Steve Myhre, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Las Vegas Tax Preparer Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
LAS VEGAS, Nev. – A Las Vegas tax preparer was sentenced today by U.S. District Judge Andrew P. Gordon to 12 months and one day in federal prison, to be followed by one year of supervised release, for falsely inflating deductions in his clients’ tax returns and underreporting taxable income (and claiming false expenses) in his own tax returns, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Tara Sullivan of the IRS-Criminal Investigation. Collectively, the false tax returns caused approximately $265,000 in losses to the IRS.
William Pamintuan Craig, 60, pleaded guilty on October 28, 2019, to making and subscribing a false tax return. According to court documents, since at least 2012, Craig operated a tax return preparation business in Las Vegas. When preparing his own tax returns, Craig concealed the actual revenue from his tax preparation business and claimed false work expenses. He underreported his taxable income for tax years 2012 to 2017 by a total of approximately $439,000, causing $143,237 in tax loss to the IRS. Craig also fraudulently claimed false “deductions” in his clients’ tax returns. Between 2012 and 2017, Craig caused at least $128,000 in tax loss by filing false returns for his clients.
In addition to imprisonment and supervised release, the court also ordered Craig to pay $143,237 in restitution to the IRS.
This case was the product of an investigation by the IRS-Criminal Investigation. Assistant U.S. Attorney Tony Lopez prosecuted the case.
If you suspect a tax preparer or tax preparation business is not complying with the U.S. tax laws, complete and submit a Return Preparer Complaint form with the IRS. More information about reporting suspected tax fraud activity may be found at https://www.irs.gov/.
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Las Vegas Man Indicted for Scheme Targeting Church FundsRead the Press Release
LAS VEGAS, Nev. — Oluremi Akinleye, 40, of Las Vegas, made his initial appearance in federal court today for his role in a conspiracy to fraudulently obtain money from accounts held by members of the Pension Fund of the Christian Church and the Lutheran Church Extension Fund, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI.
A federal grand jury returned an indictment on August 25, 2020, which was unsealed today, charging Akinleye with one count of conspiracy to commit wire fraud, six counts of wire fraud, one count of possession of 15 or more counterfeit and unauthorized access devices, and three counts of aggravated identity theft. Akinleye was arrested on August 28, 2020. A jury trial has been set before U.S. District Judge Gloria M. Navarro on November 2, 2020.
According to court documents, from November 2017 to July 2018, Akinleye and his co-conspirators conspired to steal money from accounts held by members of the Pension Fund of the Christian Church and the Lutheran Church Extension Fund. Both funds provide financial services to members of the religious community, including ministers. As part of the scheme, Akinleye and his co-conspirators fraudulently obtained the names and personal identifying information of certain account holders. Akinleye then used that information to impersonate those individuals, making withdrawals and transfers from their accounts. Through this scheme, Akinleye and his co-conspirators attempted to fraudulently obtain over $400,000 from the two funds.
The statutory maximum sentence is 20 years in prison for conspiracy to commit wire fraud; 20 years in prison for each count of wire fraud; and 10 years in prison for possession of 15 or more counterfeit and unauthorized access devices. The statutory minimum for aggravated identity theft is two years in prison. In addition to imprisonment, Akinleye also faces a period of supervised release, restitution, monetary penalties, and asset forfeiture.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is the product of an investigation by the FBI. Assistant U.S. Attorney Simon F. Kung is prosecuting the case.
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Four Charged for Multi-Million Dollar Elder Fraud SchemesRead the Press Release
WASHINGTON - Four individuals responsible for mass-mailing fraud schemes were charged with allegedly defrauding thousands of elderly and vulnerable victims, the department announced today. Two U.S. individuals and two Canadian individuals were charged for their roles in operating the schemes, which collectively caused tens of millions of dollars in victim losses. Two defendants were charged in the Eastern District of New York and two defendants were charged in the District of Nevada.
“Fraud schemes are intolerable, especially those that harm our nation’s seniors,” said Acting Assistant Attorney General Ethan P. Davis of the Department of Justice’s Civil Division. “As Attorney General Barr made clear earlier this year when he announced record results in the 2020 Elder Fraud Sweep, the Department of Justice is committed to protecting seniors. These two cases illustrate that the Civil Division’s Consumer Protection Branch, together with partners at the Postal Inspection Service, will not stop until the scourge of elder fraud is defeated.”
“These charges demonstrate the Postal Inspection Service will relentlessly pursue these fraudulent schemes until they no longer arrive in your mailbox,” said Deputy Chief Inspector Craig Goldberg of the Postal Inspection Service. “Prize notices like these are mailed in an attempt to trick our elderly and vulnerable Americans, while the perpetrators attempt to hide their involvement around the corner or around the globe. We are committed, with the Department of Justice, to protect our older Americans.”
“These individuals mailed their fraudulent prize promotions to victims in blatant defiance of prior Postal Service consent orders and agreements that prohibited them from doing so. The fact that many of the victims were elderly and vulnerable makes the defendants’ conduct particularly egregious. The Postal Inspection Service will continue its efforts to protect the public from fraud schemes and bring the perpetrators of those schemes to justice,” said Inspector in Charge Philip R. Bartlett.
Two Long-Island Residents Indicted for Multi-Million Dollar Elder Fraud Scheme
An indictment unsealed today charges Long Island residents Sean Novis, 50, and Gary Denkberg, 57, with conspiracy to commit mail fraud and multiple mail fraud and wire fraud counts for running a fraudulent mass-mailing scheme that tricked thousands of consumers into paying fees for falsely promised prizes. Novis and Denkberg made their initial appearances in U.S. District Court for the Eastern District of New York after they were arrested by United States Postal Inspectors Monday morning.
The indictment alleges that, from January 2003 to September 2016, the defendants mailed hundreds of thousands of prize notices that represented that victims were specially chosen to receive a large cash prize and would receive the prize if they paid a small fee. Victims who paid the requested fee, however, did not receive the promised cash prize. Although the notices appeared to be personalized correspondence, they were merely mass-produced, boilerplate documents that were bulk mailed to recipients whose names and addresses were on mailing lists.
According to the indictment, Novis and Denkberg continued to operate their fraudulent mass-mailing scheme in violation of United States Postal Service cease-and-desist agreements and consent orders that they agreed to in 2012. The agreements and orders had permanently barred the defendants from mailing fraudulent prize notices.
Each charge in this case carries a statutory maximum sentence of twenty years in prison, and a statutory maximum fine of $250,000 or twice the gross gain or gross loss from the offense.
The United States Postal Inspection Service investigated the case. The case is being prosecuted by Trial Attorneys Artie DeCastro and Daniel Zytnick of the Department of Justice Civil Division’s Consumer Protection Branch. The Consumer Protection Branch thanks the U.S. Attorney’s Office for the Eastern District of New York for its assistance in this case.
Canadian Nationals Charged For Long-Running Elder Fraud Schemes
In a separate indictment filed on August 5 in the District of Nevada, Canadian nationals Alex Quaglia and Patrick Fraser were charged with mail fraud and conspiracy to commit mail fraud in connection with schemes to defraud consumers by sending deceptive mailing pieces that falsely promised large cash prizes in exchange for payment of a fee. Many of the victims were elderly. The solicitations were sent using fictitious names and were designed to deceive recipients into believing that they had won hundreds of thousands or millions of dollars. To claim their winnings recipients were directed to pay a small fee. In fact, there was no cash prize sent to victims, and Quaglia, Fraser and their co-conspirators pocketed the money sent by victims.
“As alleged in the indictment, victims in Nevada, across the country, and around the world were defrauded of money in connection with the defendants’ schemes,” said U.S. Attorney Nicholas A. Trutanich for the District of Nevada. “Working with our Postal Inspectors and other law enforcement partners, we will identify, investigate, and prosecute criminals – both foreign and domestic – who prey on our seniors and other vulnerable Nevada residents. These fraud schemes can happen to anyone.”
The scheme allegedly caused millions of dollars in losses to thousands of victims. Quaglia was charged with one conspiracy to commit mail fraud count and seven counts of mail fraud. Quaglia’s scheme is alleged to have begun as early as 2000. Fraser was charged with conspiracy to commit mail fraud with Quaglia and with a separate conspiracy charge related to a similar scheme he orchestrated after breaking away from Quaglia’s operation in 2015. Fraser was also charged with six counts of mail fraud. Each charge of the indictment carries a statutory maximum sentence of twenty years in prison along with a statutory maximum fine of $250,000 or twice the gross gain or gross loss from the offense.
The United States Postal Inspection Service investigated the case. The case is being prosecuted by Trial Attorneys Matt Lash and Yolanda McCray Jones of the Department of Justice Civil Division’s Consumer Protection Branch with substantial assistance from Assistant U.S. Attorney Nicholas Dickinson from the U.S. Attorney’s Office for the District of Nevada. The Criminal Division’s Office of International Affairs has also provided critical support.
An indictment is an accusation by a federal grand jury and is not evidence of guilt. The defendant should be presumed innocent unless and until proven guilty.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, in March 2020, the department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide elder fraud sweep. The department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 7 days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
For more information about the Consumer Protection Branch, visit its website at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorneys’ Offices for the Eastern District of New York and District of Nevada visit their websites at www.justice.gov/usao-edny and www.justice.gov/usao-nv.
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Las Vegas Man Sentenced for Setting Two Fires at the Drew Las Vegas That Resulted in Millions of Dollars in DamageRead the Press Release
LAS VEGAS, Nev. – Andrew Joseph Sanders, 28, of Las Vegas, was sentenced on Friday, August 28, by Chief U.S. District Judge Miranda Du to five years in federal prison for lighting two separate fires at The Drew Las Vegas, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Patrick Gorman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
According to court documents, on March 1, 2018, Sanders trespassed onto the property of The Drew Las Vegas, a resort and casino that was under construction. While on the property, Sanders recorded himself on his cell phone and also narrated. In one video, Sanders stated: “and I lit a fire to this [expletive]. I’m just bored, you know?”
Sanders set two separate fires inside a building, approximately 200 yards apart from one another. After setting the fires and while attempting to flee, Sanders “squared off” in a fighting stance with two firefighters who responded from the Clark County Fire Department. The firefighters had to subdue Sanders and convince him to stop fighting. As a result, those two firefighters were delayed in supplying water to their colleagues inside the building. The fires set by Sanders caused millions of dollars in damage.
Sanders pleaded guilty to one count of arson in October 2019. In addition to the term of imprisonment, he was sentenced to three years of supervised release. The court will determine defendant’s obligation to pay restitution and any amount owing at a later date.
The case is a product of an investigation by the ATF and Clark County Fire Department. Assistant U.S. Attorney Jessica Oliva prosecuted the case.
Anonymous tips may be submitted to ATF through the ReportIt mobile app or by calling the ATF Tip Line at 1-888-ATF-TIPS.
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Nevada Man Charged with Using COVID-Relief Funds to Buy HouseRead the Press Release
A Nevada man has been arrested in connection with allegations that he fraudulently obtained approximately $500,000 from the Paycheck Protection Program (PPP) loan and the Economic Injury Disaster Loan (EIDL) program, and then laundered the funds through friends and family in order to buy a house.
Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Nicholas A. Trutanich of the District of Nevada, Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Field Office, Special Agent in Charge Tara Sullivan of the IRS-Criminal Investigation (IRS-CI) Las Vegas Field Office, and Special Agent in Charge Weston King of the Small Business Administration’s Office of the Inspector General (SBA-OIG) made the announcement.
Brandon Casutt, 49, of Henderson, Nevada, is charged in a criminal complaint in the District of Nevada, unsealed Tuesday, with making false statements to a financial institution, wire fraud, bank fraud, concealment money laundering, and engaging in unlawful monetary transactions. He was arrested on Friday and made his initial appearance Tuesday afternoon before U.S. Magistrate Judge Elayna J. Youchah in Las Vegas.
The complaint alleges that Casutt perpetrated a scheme to submit fraudulent EIDL applications to the SBA and PPP loan applications to federally insured banks. The SBA guarantees the loans for COVID-19 relief through the PPP under the Coronavirus Aid, Relief and Economic Security (CARES) Act. The CARES Act also authorizes the SBA to provide an EIDL of up to $2 million to eligible small businesses experiencing financial disruption due to the COVID-19 pandemic.
Two of these fraudulent applications received funding: (1) a PPP loan for approximately $350,000 in the name of a business called Sky DeSign; and (2) an EIDL for approximately $150,000 in the name of a charity called Skyler’s C.F. Foundation, which is supposedly devoted to raising awareness about cystic fibrosis. The loan applications indicated that each entity had numerous employees, significant payroll expenses, and substantial revenue. According to the complaint, neither entity has employees nor pays any wages. And Skyler’s C.F. Foundation had nowhere near the $600,000 revenue in 2019 that Casutt listed on the entity’s EIDL application.
According to the complaint, Casutt laundered the PPP funds by writing checks to 23 different people — friends, family members, associates, and himself — each in the amount of $8,330 with “back pay” and “pandemic pay” in the checks’ memo lines. Casutt then had the funds diverted to a bank account in the name of Skyler’s C.F. Foundation and used them, along with the EIDL funds, to purchase a $400,000 house in Henderson, into which he and his family moved at the end of June 2020.
The CARES Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used as the same purpose as the PPP funds.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI, IRS-CI, and SBA-OIG investigated the case. Assistant Chief William E. Johnston of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jamie Mickelson of the U.S. Attorney’s Office for the District of Nevada are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Nevada Man Charged with Using COVID-Relief Funds to Buy HouseRead the Press Release
LAS VEGAS, Nev. – A Nevada man has been arrested in connection with allegations that he fraudulently obtained approximately $500,000 from the Paycheck Protection Program (PPP) loan and the Economic Injury Disaster Loan (EIDL) program, and then laundered the funds through friends and family in order to buy a house.
Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Nicholas A. Trutanich of the District of Nevada, Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Field Office, Special Agent in Charge Tara Sullivan of the IRS-Criminal Investigation (IRS-CI) Las Vegas Field Office, and Special Agent in Charge Weston King of the Small Business Administration’s Office of the Inspector General (SBA-OIG) made the announcement.
Brandon Casutt, 49, of Henderson, Nevada, is charged in a criminal complaint in the District of Nevada, unsealed Tuesday, with making false statements to a financial institution, wire fraud, bank fraud, concealment money laundering, and engaging in unlawful monetary transactions. He was arrested on Friday and made his initial appearance Tuesday afternoon before U.S. Magistrate Judge Elayna J. Youchah in Las Vegas.
The complaint alleges that Casutt perpetrated a scheme to submit fraudulent EIDL applications to the SBA and PPP loan applications to federally insured banks. The SBA guarantees the loans for COVID-19 relief through the PPP under the Coronavirus Aid, Relief and Economic Security (CARES) Act. The CARES Act also authorizes the SBA to provide an EIDL of up to $2 million to eligible small businesses experiencing financial disruption due to the COVID-19 pandemic.
Two of these fraudulent applications received funding: (1) a PPP loan for approximately $350,000 in the name of a business called Sky DeSign; and (2) an EIDL for approximately $150,000 in the name of a charity called Skyler’s C.F. Foundation, which is supposedly devoted to raising awareness about cystic fibrosis. The loan applications indicated that each entity had numerous employees, significant payroll expenses, and substantial revenue. According to the complaint, neither entity has employees nor pays any wages. And Skyler’s C.F. Foundation had nowhere near the $600,000 revenue in 2019 that Casutt listed on the entity’s EIDL application.
According to the complaint, Casutt laundered the PPP funds by writing checks to 23 different people — friends, family members, associates, and himself — each in the amount of $8,330 with “back pay” and “pandemic pay” in the checks’ memo lines. Casutt then had the funds diverted to a bank account in the name of Skyler’s C.F. Foundation and used them, along with the EIDL funds, to purchase a $400,000 house in Henderson, into which he and his family moved at the end of June 2020.
The CARES Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used as the same purpose as the PPP funds.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI, IRS-CI, and SBA-OIG investigated the case. Assistant Chief William E. Johnston of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jamie Mickelson of the U.S. Attorney’s Office for the District of Nevada are prosecuting the case.
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Russian National Arrested for Conspiracy to Introduce Malware into a Nevada Company's Computer NetworkRead the Press Release
A Russian national made his initial appearance in federal court Monday for his role in a conspiracy to recruit an employee of a company to introduce malicious software into the company’s computer network, extract data from the network, and extort ransom money from the company.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Field Office made the announcement.
Egor Igorevich Kriuchkov, 27, a citizen of Russia, was charged in a complaint with one count of conspiracy to intentionally cause damage to a protected computer. He was arrested on Aug. 22, 2020, in Los Angeles and had his initial appearance before U.S. Magistrate Judge Alexander F. MacKinnon in U.S. District Court in Los Angeles, California, who ordered Kriuchkov detained pending trial.
According to the complaint and statements made in court, from about July 15, 2020 to about Aug. 22, 2020, Kriuchkov conspired with associates to recruit an employee of a company to introduce malware – i.e., malicious software programs designed to damage or do other unwanted actions on a computer system – into the company’s computer network. The malware would supposedly provide Kriuchkov and his co-conspirators with access to the company’s system. After the malware was introduced, Kriuchkov and his co-conspirators would extract data from the network and then threaten to make the information public, unless the company paid their ransom demand.
Kriuchkov entered the United States using his Russian passport and a tourist visa. He contacted and met with the employee numerous times to discuss the conspiracy. Kriuchkov promised to pay the employee $1 million after the malware was introduced. In furtherance of the conspiracy, Kriuchkov provided the employee with a burner phone, and instructed him to leave the burner phone in airplane mode until after the money was transferred.
After being contacted by the FBI, Kriuchkov drove overnight from Reno, Nevada, to Los Angeles. Kriuchkov asked an acquaintance to purchase an airline ticket for him in an attempt to fly out of the country.
The charges and allegations contained in a complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The investigation was led by the FBI’s Las Vegas Field Office with assistance from the FBI’s Los Angeles Field Office; the FBI’s Sacramento Field Office; the Washoe County Sheriff’s Office; and the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS). Assistant U.S. Attorney Richard Casper and C.S. Heath, Senior Counsel of CCIPS, are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Russian National Arrested for Conspiracy to Introduce Malware into A Nevada Company's Computer NetworkRead the Press Release
RENO, Nev. — A Russian national made his initial appearance in federal court yesterday for his role in a conspiracy to recruit an employee of a company to introduce malicious software into the company’s computer network, extract data from the network, and extort ransom money from the company, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI.
“As Nevada’s economy diversifies and evolves into a center for technological innovation, our office will continue to prioritize protecting trade secrets and other confidential information belonging to U.S. businesses,” said U.S. Attorney Trutanich. “Working with our law enforcement partners, we are committed to holding accountable anyone who plots to use malicious cyber tactics to harm American consumers and companies.”
“In this matter, the FBI was once again able to intervene before any damage could occur,” said Special Agent in Charge Rouse. “We will continue to aggressively pursue any person or entity that attempts to inflict damage to American business or enterprise, no matter who or where.”
Egor Igorevich Kriuchkov, 27, a citizen of Russia, was charged in a
complaint with one count of conspiracy to intentionally cause damage to a protected computer. He was arrested on August 22, 2020, in Los Angeles and had his initial appearance before U.S. Magistrate Judge Alexander F. MacKinnon in U.S. District Court in Los Angeles, who ordered Kriuchkov detained pending trial.According to the complaint and statements made in court, from about July 15, 2020 to about August 22, 2020, Kriuchkov conspired with associates to recruit an employee of a company to introduce malware — i.e., malicious software programs designed to damage or do other unwanted actions on a computer system — into the company’s computer network. The malware would supposedly provide Kriuchkov and his co-conspirators with access to the company’s system. After the malware was introduced, Kriuchkov and his co-conspirators would extract data from the network and then threaten to make the information public, unless the company paid their ransom demand.
Kriuchkov entered the United States using his Russian passport and a tourist visa. He contacted and met with the employee numerous times to discuss the conspiracy. Kriuchkov promised to pay the employee $1 million dollars after the malware was introduced. In furtherance of the conspiracy, Kriuchkov provided the employee with a burner phone, and instructed him to leave the burner phone in airplane mode until after the money was transferred.
After being contacted by the FBI, Kriuchkov drove overnight from Reno to Los Angeles. Kriuchkov asked an acquaintance to purchase an airline ticket for him in an attempt to fly out of the country.
Kriuchkov faces a statutory maximum sentence of five years in prison and a $250,000 fine. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes only.
A criminal complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt. The defendant is presumed innocent unless and until proven guilty in a court of law.
The investigation was led by the FBI’s Las Vegas Field Office with assistance by the FBI Los Angeles Field Office; the FBI Sacramento Field Office; the Washoe County Sheriff’s Office; and the Criminal Division’s Computer Crimes and Intellectual Property Section (CCIPS). Assistant U.S. Attorney Richard Casper and Candina Heath, Senior Counsel of CCIPS, are prosecuting the case.
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Las Vegas Man Sentenced to Prison for Distributing FentanylRead the Press Release
LAS VEGAS, Nev. — Tanoo Senethavilay, 37, of Las Vegas, Nevada was sentenced today by Chief U.S. District Judge Miranda Du to four years and nine months in prison, to be followed by three years of supervised release, for conspiracy to distribute fentanyl — a powerful synthetic opioid — in Las Vegas, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI.
Senethavilay pleaded guilty on December 18, 2019, to conspiracy to distribute a controlled substance. Following today’s hearing, Senethavilay was remanded to the custody of the U.S. Marshals Service.
According to court documents, from August 2017 to September 2017, Senethavilay conspired to and did distribute 208 grams (approximately a half-pound) of fentanyl in exchange for cash. He has prior convictions for robbery, felon in possession of a firearm, attempted grand larceny, unlawful carry of a concealed weapon, and driving under the influence of alcohol.
Fentanyl is a synthetic opioid that is 80-100 times stronger than morphine, and is commonly added to heroin to increase its potency. Street names include “China Girl,” “King Ivory,” and “Murder 8.” Fentanyl poses a high risk of death not only to users, but also to law enforcement since the drug may be ingested, inhaled, or absorbed through the skin. A few milligrams, which is equivalent to a few grains of table salt, may be deadly. Users may believe that they are purchasing heroin without knowing that they are actually purchasing fentanyl – which often results in overdose deaths.
The charges resulted from a joint investigation by the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Nevada Gaming Control Board.
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Reno Man Indicted and Arrested for Passport FraudRead the Press Release
RENO, Nev. — A Reno resident made his initial appearance in federal court today before U.S. Magistrate Judge William G. Cobb on a charge for using a U.S. passport that was obtained by making a false statement, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Matthew J. Perlman of the U.S. Department of State’s Diplomatic Security Service (DSS), San Francisco Field Office.
On Thursday, August 20, a federal grand jury returned an indictment charging Ludy Will Dial Jr, aka “Russel Van Wyck” and “Russell Van Wyck,” 69, with one count of use of passport secured through a false statement. He was arrested yesterday. A jury trial has been scheduled before U.S. District Judge Howard D. McKibben on October 19, 2020.
According to the indictment, on or about July 8, 2015, Dial Jr. used a U.S. passport that was issued due to a false statement made in the application. Specifically, the application stated that the person in the passport photo was named Russel Van Wyck, when in fact the person was Dial Jr. In addition, Dial Jr. used that passport to obtain a Nevada Driver’s License.
Dial Jr. faces a statutory maximum sentence of 10 years in prison and a $250,000 fine, as well as a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that a crime has been committed. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is the product of an investigation by DSS. Assistant U.S. Attorney Peter Walkingshaw is prosecuting the case.
If you are aware of fraud associated with a U.S. passport, please email [email protected] or contact your nearest DSS field office.
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