District of Nevada

LAS VEGAS, Nev. – A Las Vegas resident pleaded guilty today to aggravated identity theft, wire fraud, theft of government property, and access device fraud, relating to a stolen identity tax fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

According to court documents and statements made in court, Josiah Ntekume was involved in a scheme to file false tax returns using stolen identities in order to obtain tax refunds. Coconspirators provided Ntekume with names, addresses, dates of birth, and social security numbers, and Ntekume used these stolen identities to establish prepaid debit card accounts.  The coconspirators then caused fraudulently obtained federal tax refunds to be deposited into those accounts.

When Ntekume was arrested on March 13, 2012, he had in his backpack approximately 250 prepaid debit cards in others people’s names on which more than more than $200,000 in fraudulent tax refunds had been loaded. The backpack also contained several pages of paper listing stolen identities for nearly 200 individuals that were used either to file false tax returns or to establish additional prepaid debit cards. 

Sentencing is scheduled for March 4, 2020. At sentencing, Ntekume faces a statutory maximum sentence of up to 20 years in prison on the wire fraud count, as well as up to 10 years in prison on each count of theft of government property and fraud in connection with access devices. He also faces a mandatory minimum of two years for aggravated identity theft. In addition to a prison sentence, Ntekume faces a maximum period of three years supervised release, as well as restitution and monetary penalties.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Thomas W. Flynn, Stephen K. Moulton, and Arthur Ewenczyk 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, Nev. – The Department of Justice today announced that it has awarded more than $376 million in grant funding to enhance state, local and tribal law enforcement operations and reinforce public safety efforts in jurisdictions across the United States. Nearly $6.5 million will support public safety activities in Nevada. The awards were made by the Department’s Office of Justice Programs.

“Crime and violence hold families, friends and neighborhoods hostage, and they rip communities apart,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “These programs help restore the health and safety of crime-ravaged communities by supporting prevention activities, aiding in the apprehension and prosecution of perpetrators, facilitating appropriate sentencing and adjudication, and providing communities and their residents the means for recovery and healing.”

The awards announced today support an array of crime-fighting initiatives, including the quarter-billion dollar Edward Byrne Justice Assistance Grants Program, which funds public safety efforts in 929 state, local and tribal jurisdictions. Funding also supports sex offender registration and notification, law enforcement-based victim services, the testing of sexual assault kits, and programs designed to address youth with sexual behavioral problems. Other awards will focus on wrongful convictions, intellectual property enforcement, innovative prosecution strategies and the safety and effectiveness of corrections systems.

“Today’s grant awards exemplify the Department of Justice’s commitment to resourcing crime-fighting and victim services assistance in Nevada,” said U.S. Attorney Nicholas A. Trutanich for the District of Nevada. “These grants will fund a broad range of programs. One award in particular will provide additional resources to further Nevada’s incredible accomplishments on its sexual assault kit initiative.”

The following awards were made to organizations in the District of Nevada:

BJA Edward Byrne Justice Assistance Grant Program

The program supports a broad range of state and local criminal justice initiatives and reduces existing gaps in service that impact violent crime, crime victims, enforcement, prosecution, adjudication, detention, and rehabilitation. District of Nevada recipients included:

Joint Application for Washoe County Law Enforcement Agencies

City of Reno

$159,075

FY 19 Local JAG Program

City of Carson City

$12,558

North Las Vegas Closed-Circuit Television Project and Ultra Software Application

City of North Las Vegas Police Department

$166,798

FY 19 Local JAG Program

Henderson Police Department

$40,005

Clark County Joint FY 19 JAG Project

Clark County, Nevada

$992,213

Nevada FY 19 State JAG

Nevada Department of Public Safety

$2,165,007

 

BJA National Sexual Assault Kit Initiative

The initiative supports the Department’s criminal justice priorities of reducing violent crime and supporting law enforcement officers and prosecutors by: providing jurisdictions with resources to address sexual assault kits not submitted to a forensic laboratory for testing; improving investigation and prosecution in connection with evidence and cases; and providing sites with resources to collect DNA samples. The Nevada Office of the Attorney General received a grant under this initiative in the amount of $2 million.

BJA Implementing the Prison Rape Elimination Act Standards, Protecting Inmates, and Safeguarding Communities Program

This program supports projects designed to prevent, detect, and respond to sexual abuse and sexual harassment in confinement facilities, and to achieve and maintain compliance with the Prison Rape Elimination Act standards. The Nevada Division of Child and Family Services received a grant under this program in the amount of $154,125.

OVC Law Enforcement-Based Victim Specialist Program

The program provides funding to develop and enhance crime victim specialist programs within law enforcement agencies to better support victims through the criminal justice process. The grants support connecting victims with community-based direct victim services programs. The Reno Police Department received a grant under this program in the amount of $280,777.

SMART Adam Walsh Act Implementation Grant Program:

The program provides funding to states, jurisdictions, U.S. territories and tribal communities to be used to help meet the requirements of the Sex Offender Registration and Notification Act, Title I of the Adam Walsh Child Protection and Safety Act. The Nevada Department of Public Safety and Board of Regents of the University of Nevada, Las Vegas, received grants of approximately $500,000 under this program.

For more information about OJP awards, visit the OJP Awards Data webpage.

The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training and technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.

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LAS VEGAS, Nev. – Attorney General William P. Barr and Department of Justice leadership today announced the recipients of the Third Annual Attorney General’s Award for Distinguished Service in Policing, recognizing the exceptional work of 19 law enforcement officers and deputies from 12 jurisdictions across the country.

Officer Phalon McFate of the Las Vegas Metropolitan Police Department developed Project Daybreak, an initiative used to address violent crime-hot spots in downtown Las Vegas neighborhoods. Since it started, Project Daybreak has significantly contributed to decreasing violent crime – down by 50 percent in these neighborhoods. Through positive police interactions, Officer McFate was able to create and enhance transparency and build trust in these neighborhoods. The success of Project Daybreak is a direct result of Officer McFate’s passion and commitment to her community.

“Honoring and supporting the work of law enforcement of­ficers and deputies is a top priority for the Trump Administration, and today is an opportunity for me to personally express my gratitude and commitment to those who risk their lives daily to protect our communities,” said Attorney General Barr. “The Attorney General’s Award for Distinguished Service in Policing honors exceptional police officers and the vital public service they provide. The brave men and women in law enforcement are engaged in an unrelenting and often unacknowledged fight to keep our communities safe each and every day. It is an honor to thank them for their service.”

“This recognition supports the exceptional work and commitment displayed by law enforcement to serve and protect our communities,” said U.S. Attorney Nicholas A. Trutanich for the District of Nevada. “The U.S. Attorney’s Office fully supports and is grateful for strong partnerships with law enforcement as we continue to reduce violent crime, build trust in our communities, and make our communities safer places to live.”

President Donald J. Trump established clear directives for the Department of Justice – with three Executive Orders – demonstrating his strong support of the law enforcement community. These Executive Orders commit the Department to working in tandem with state and local law enforcement to restore the rule of law, reduce violent crime, dismantle criminal gangs, and combat the growing drug epidemic. Today the Department of Justice continues to support the President’s directive to honor law enforcement officers by announcing the third annual Attorney General’s Award for Distinguished Service in Policing.

The Attorney General’s Award recognizes individual state, local, and tribal sworn rank-and-file police officers and deputies for exceptional efforts in policing. The awarded officers and deputies have demonstrated active engagement with the community in one of three areas: criminal investigations, field operations or innovations in community policing. The Department received nominations for 414 individuals ranging from state police departments, to local police, to campus public safety agencies. This award highlights the work that troopers, officers and deputies do to prevent, intervene in, and respond to crime and public safety issues.

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LAS VEGAS, Nev. – After a three-day trial, a federal jury found James Williams, Jr., 29, guilty of making a false statement during the purchase of a firearm, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Ray Roundtree of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) for the San Francisco Field Division.

“I am proud to announce Nevada’s first conviction under Project Guardian—our new gun violence reduction initiative,” said U.S. Attorney Trutanich. “Lying to a licensed firearms dealer and buying a gun for someone else is a serious offense. My office will continue to work closely with ATF and local law enforcement to prosecute these crimes.”

“Public safety is at the forefront of ATF’s mission,” said Special Agent in Charge Roundtree. “Our focus is removing crime guns from our communities. To reiterate what ATF Acting Director Regina Lombardo said, the focus of Project Guardian is to enhance our crime gun intelligence. This enhancement will encompass identifying, investigating and prosecuting those involved in the straw purchases of firearms, lying on federal firearms transaction forms, and those subject to the mental health prohibition of possessing firearms. We are very happy to announce Nevada’s first Project Guardian conviction with the U.S. Attorney’s Office and the Las Vegas Metropolitan Police Department.”

According to court documents and evidence presented at trial, between May 2017 and May 2018, Williams purchased 35 firearms, mostly pistols, and many of the same make and model, from various Las Vegas firearms dealers. In May 2018, when purchasing one of those firearms, Williams made a false statement to a licensed firearms dealer regarding his residential address in Las Vegas, Nevada. At trial, his former roommate testified that Williams had not lived at that address for over a year at the time he made the false statement. The jury at trial found Williams guilty of falsely stating his address in the Firearms Transaction Record form that he completed when he purchased the firearm and acquitted him of illegal acquisition of a firearm for one set of those purchases. 

The case was the product of an investigation by the ATF, with the assistance of the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Jared Grimmer and Tony Lopez prosecuted the case.

Williams is scheduled to be sentenced by U.S. District Chief Judge Miranda M. Du on January 29, 2020. Williams faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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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LAS VEGAS, Nev. – Attorney General William P. Barr today launched a national strategy to address missing and murdered Native Americans. The Missing and Murdered Indigenous Persons (MMIP) Initiative places MMIP coordinators in 11 U.S. Attorney’s offices, including the District of Nevada, who will develop protocols for a more coordinated law enforcement response on missing and murdered cases. The plan also calls for the deployment of the FBI’s most advanced response capabilities when needed, improved data collection and analysis, and training to support local response efforts.

“American Indian and Alaska Native people suffer from unacceptable and disproportionately high levels of violence, which can have lasting impacts on families and communities. Native American women face particularly high rates of violence, with at least half suffering sexual or intimate-partner violence in their lifetime. Too many of these families have experienced the loss of loved ones who went missing or were murdered,” said Attorney General William P. Barr. “This important initiative will further strengthen the federal, state, and tribal law enforcement response to these continuing problems.”

“The FBI recognizes the violence that tribal communities face and is fully committed to working with our federal, state, local, and tribal law enforcement partners to provide support to those impacted by these crimes,” said FBI Director Christopher Wray. “We are dedicated to delivering justice and to the FBI’s mission to protect all the people we serve. We reaffirm our focus on allocating resources to serve Native American needs.”

“Our Native American communities in Nevada are full of families and friends – all of whom live lives of meaning. But too often those lives are terrorized by violence, or worse, cut short,” said U.S. Attorney Nicholas A. Trutanich for the District of Nevada. “In the last 12 months alone, our office has charged four homicides on tribal lands. We are dedicated to ensuring the victims of these crimes get justice. And, with the addition of a new MMIP Coordinator position, we reaffirm our commitment to prevent violent crime on tribal land before it happens.”

“We are very pleased that the U.S. Attorney General is establishing a position in Nevada to work with tribes in addressing this crisis of Missing and Murdered Indigenous Persons,” said Chairman Arlen D. Melendez of the Reno-Sparks Indian Colony. “It shows progress in better communication between federal, state, local, and tribal law enforcement to solve these crimes. Our mission is to bring the missing home and support the families of the murdered through their grief.”

The strategy has three parts:

Establish MMIP coordinators: The Department of Justice is investing an initial $1.5 million to hire 11 MMIP coordinators in 11 states to serve with all U.S. Attorney’s offices in those states, and others who request assistance. The states are Alaska, Arizona, Montana, Oklahoma, Michigan, Utah, Nevada, Minnesota, Oregon, New Mexico, and Washington state. MMIP coordinators will work closely with federal, tribal, state and local agencies to develop common protocols and procedure for responding to reports of missing or murdered indigenous people.  The first MMIP coordinator is already on board in Montana.

Specialized FBI Rapid Deployment Teams: The strategy will bring needed tools and resources to law enforcement. Upon request by a tribal, state, or local law enforcement agency the FBI will provide expert assistance based upon the circumstances of a missing indigenous persons case.  FBI resources and personnel which may be activated to assist with cases include: Child Abduction Rapid Deployment (CARD) teams, Cellular Analysis Support Teams, Evidence Response Teams, Cyber Agents for timely analysis of digital evidence/social media, Victim Services Division Response Teams, and others. MMIP coordinators will assist in developing protocols.

Comprehensive Data Analysis: The department will perform in-depth analysis of federally supported databases and analyze data collection practices to identify opportunities to improve missing persons data and share the results of this analysis with our partners in this effort.

More broadly, the MMIP Initiative will involve a coordinated effort by more than 50 U.S. Attorneys on the Attorney General’s Native American Issues Subcommittee (NAIS), the FBI, and the Office of Tribal Justice, with support from the Office of Justice Programs (OJP) and the Office on Violence Against Women (OVW).

Today’s announcement follows the August NAIS meeting in New Mexico and OVW listening session in Michigan, where Missing and Murdered Indigenous Persons and violence against women in Indian country were prevalent topics of discussion by U.S. Attorneys, OVW officials, and tribal representatives.

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LAS VEGAS, Nev. – A federal grand jury returned an indictment charging Latonia Smith, 25, of Las Vegas, with five counts of sending threatening communications through the U.S. Mail, U.S. Attorney Nicholas A. Trutanich for the District of Nevada announced.

According to court filings, Smith is alleged to have sent anonymous threatening letters between September 30, 2018, and October 1, 2019 to her mother’s former supervisor and to attorneys and staff defending a lawsuit filed against her mother’s former employer. As an example, one of the letters threatened: “your throat will be slit you will be recorded as the blood spills from your neck and just as you gasp to take your final undeserving breath three bullets will be placed right through your skull.”

Smith was arrested on November 1, 2019, in connection with the charges and is presently detained awaiting arraignment.

This case was the product of an investigation by the U.S. Postal Inspection Service with assistance from the Las Vegas Metropolitan Police Department and the Reno Police Department. The case is being prosecuted by Assistant United States Attorney Steven Myhre.

Smith faces a maximum sentence of 25 years, if convicted on all counts. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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 beyond a reasonable doubt in a court of law.

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RENO, Nev. – After a six-day trial, a federal jury found Eric Romero-Lobato, 39, guilty of conspiracy to commit interference with commerce by robbery, attempted interference with commerce by robbery, discharge of a firearm during a crime of violence and felon in possession of a firearm related to a March 4, 2018 attempted robbery of a restaurant in Sparks, announced United States Attorney Nicholas A. Trutanich for the District of Nevada.

United States District Judge Larry R. Hicks presided over the trial and scheduled a sentencing hearing on March 31, 2020. The maximum penalty is life imprisonment with a mandatory minimum term of imprisonment of 10 years.

According to court documents and evidence presented at trial, Romero-Lobato, armed with a 9mm semi-automatic pistol, attempted to rob a Restaurant in Sparks, Nevada with another man.  During the attempted robbery, he fired a shot inside the restaurant. Romero-Lobato was not apprehended until May 14, 2018, when police responded to a report of an armed carjacking in Reno.  Romero-Lobato led the police on a high speed chase before wrecking the car he stole. When police apprehended Romero-Lobato, they recovered a 9mm semi-automatic pistol.  Through forensics, the firearm was determined to be the same firearm discharged in the robbery attempt. The attempted robbery case was investigated by the Sparks Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

Earlier, in July 2019, a separate jury found Romero-Lobato guilty of one count of carjacking, one count of use of a firearm during and in relation to a crime of violence, and one count of felon in possession of a firearm for the May 14, 2018 carjacking incident.

Romero-Lobato is in custody and is awaiting a jury trial on a separate indictment, which charges that Romero-Lobato is not a United States citizen and illegally reentered the United States.  The case is being investigated by the Department of Homeland Security.  The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Assistant United States Attorneys Megan Rachow and Penelope Brady prosecuted the case.

This case was brought as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.

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LAS VEGAS, Nev. – Douglas Haig, 57, of Mesa, Arizona, pleaded guilty today to engaging in the business of manufacturing ammunition without a license, U.S. Attorney Nicholas A. Trutanich for the District of Nevada, Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division, and Special Agent in Charge Ray Roundtree of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announced.

According to court documents, from about July 2016 to about October 19, 2017, Haig operated an unlicensed ammunition manufacturing business known as Specialized Military Ammunition (SMA). SMA’s manufacturing was conducted in a workshop located in Haig’s Arizona residence. Haig maintained a website for SMA through which he advertised and sold ammunition that he manufactured. He promoted and sold ammunition he manufactured at gun shows in Arizona and other states. He traveled to at least one gun show in Nevada where he sold ammunition he manufactured, and, on multiple occasions, he shipped ammunition that he manufactured to customers in Nevada. Haig operated the ammunition manufacturing business despite knowing that federal firearms law required a license for such activity.

The case arose out of the joint investigation by the FBI and ATF with assistance from the Department of Treasury’s Alcohol and Tobacco Tax and Trade Bureau (TTB) and the Internal Revenue Service – Criminal Investigation, of the October 1, 2017, mass shooting at the Route 91 Harvest music festival in Las Vegas. The Cybercrime Lab within the Department of Justice’s Computer Crime and Intellectual Property Section also provided important assistance to the investigation and prosecution of the case. Assistant U.S. Attorneys Patrick Burns and Tony Lopez are prosecuting the case.

Haig is scheduled to be sentenced by U.S. District Judge James C. Mahan on February 19, 2020. He faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

A federal grand jury returned an indictment charging Haig on August 22, 2018.

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LAS VEGAS, Nev. – Six Las Vegas, Nevada area residents were charged with running a fraudulent mass-mailing scheme that tricked hundreds of thousands of consumers into paying more than $10 million in fees for falsely promised cash prizes, the Department of Justice has announced.

The unsealed indictment charges Mario Castro, 51, Jose Salud Castro, 70, Salvador Castro, 53, Miguel Castro, 55, Jose Luis Mendez, 45, and Andrea Burrow, 49, with mail fraud and conspiracy to commit mail fraud.  The indictment, secured by the Department’s Consumer Protection Branch and the U.S. Attorney’s Office for the District of Nevada, also charges Salvador Castro with making a false statement to investigators.  U.S. Postal Inspectors arrested five of the defendants last night. The sixth, Jose Salud Castro, turned himself into authorities this morning.

According to the indictment, the defendants’ prize-notification scheme led victims, many of whom were elderly and vulnerable, to believe that they could pay a small $20 or $30 fee to claim a large cash prize.  The indictment alleged that none of the victims who submitted fees ever received a large cash prize.

“The Department will pursue and prosecute those who defraud elderly or vulnerable consumers,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We have alleged that these defendants perpetrated a cruel hoax on their victims and relentlessly targeted many with repeated fraudulent mailings.”

The indictment asserts that the defendants operated the scheme from 2010 to February 2018, when postal inspectors executed multiple search warrants and the Department of Justice obtained a court order shutting down the fraudulent mail operation.  Mario Castro, Jose Salud Castro, Salvador Castro, Miguel Castro, and Jose Luis Mendez allegedly worked at the printing and mailing businesses that sent the fraudulent mail and shared the profits from the fraudulent prize notices.  The remaining defendant, Andrea Burrow, opened victim return mail, sorted cash and other payments, and entered data from the victims’ responses into a database that the scheme used to target past victims with more fraudulent mail, according to the indictment.

The defendants are alleged to have ignored multiple cease and desist orders from the United States Postal Service that prohibited their mailing companies from sending fraudulent mail.  The defendants responded by changing the names of their companies and using straw owners to hide their continuing fraud. 

Three of the defendants’ co-conspirators – Patti Kern, Edgar Del Rio, and Sean O’Connor – pleaded guilty to conspiracy to commit mail fraud earlier this year.

“It will be a priority of this office to dismantle organizations like this one that prey on the elderly and vulnerable,” said U.S. Attorney Nicholas Trutanich for the District of Nevada. “We will continue to investigate and prosecute these large-scale frauds that operate in Nevada and across the country.”

“Many people who received these solicitations in the mail thought they were winners, but they were not.  In fact, they were victims of scams exploiting the vulnerable.  For many years, the U.S. Postal Inspection Service has been at the forefront of protecting consumers from fraud.  The consequences of this type of financial fraud scheme are far reaching and damaging.  Anyone who engages in such conduct should know they will not go undetected and will be held accountable,” said Inspector in Charge Delany De Leon-Colon of U.S. Postal Inspection Service’s Criminal Investigations Group at National Headquarters. 

The mail fraud and conspiracy charges each carry a statutory maximum sentence of 20 years in prison.  The false statement charge carries a statutory maximum sentence of five years in prison.  Each charge also carries a statutory maximum fine of $250,000 or twice the gross gain or gross loss from the offense.

An indictment is an accusation by a federal grand jury and is not evidence of guilt.  The defendants should be presumed innocent unless and until proven guilty.

The U.S. Postal Inspection Service investigated the case.  The case is being prosecuted by Trial Attorneys Timothy Finley and Daniel Zytnick of the Department of Justice’s Consumer Protection Branch and Assistant U.S. Attorney Nicholas Dickinson of the District of Nevada. 

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, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 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.  Additional information on the Department of Justice’s efforts to combat elder fraud is at: https://www.justice.gov/civil/consumer-protection-branch/elder-fraud.

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LAS VEGAS, Nev. – Today, Attorney General William P. Barr announced the launch of Project Guardian, a new initiative designed to reduce gun violence and enforce federal firearms laws across the country. Specifically, Project Guardian focuses on investigating, prosecuting, and preventing gun crimes.

Reducing gun violence and enforcing federal firearms laws have always been among the Department’s highest priorities. In order to develop a new and robust effort to promote and ensure public safety, the Department reviewed and adapted some of the successes of past strategies to curb gun violence. Project Guardian draws on the Department’s earlier achievements, such as the “Triggerlock” program, and it serves as a complementary effort to the success of Project Safe Neighborhoods (PSN). In addition, the initiative emphasizes the importance of using all modern technologies available to law enforcement to promote gun crime intelligence.

“Gun crime remains a pervasive problem in too many communities across America. Today, the Department of Justice is redoubling its commitment to tackling this issue through the launch of Project Guardian,” said Attorney General William P. Barr. “Building on the success of past programs like Triggerlock, Project Guardian will strengthen our efforts to reduce gun violence by allowing the federal government and our state and local partners to better target offenders who use guns in crimes and those who try to buy guns illegally.”

“Project Guardian’s focus is to reduce the threat of gun violence in our communities,” said U.S. Attorney Nicholas A. Trutanich for the District of Nevada. “It builds on our past crime reduction successes and ensures the department’s prosecutorial resources make the maximum impact on public safety.”

“ATF has a long history of strong partnerships in the law enforcement community,” said Acting Director Regina Lombardo. “Make no mistake, the women and men of ATF remain steadfast to our core mission of getting crime guns off of our streets. ATF and U.S. Attorneys nationwide will leverage these partnerships even further through enhanced community outreach initiatives and coordination with local, state, and tribal law enforcement and prosecutors to cut the pipeline of crime guns from those violent individuals who seek to terrorize our communities. Project Guardian will enhance ATF’s Crime Gun Intelligence, to include identifying, investigating and prosecuting those involved in the straw purchases of firearms, lying on federal firearms transaction forms, and those subject to the mental health prohibition of possessing firearms.” 

Project Guardian’s implementation is based on five principles:

1. Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.

 

1. Enforcing the Background Check System. United States Attorneys, in consultation with the Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in their district, will create new, or review existing, guidelines for intake and prosecution of federal cases involving false statements (including lie-and-try, lie-and-buy, and straw purchasers) made during the acquisition or attempted acquisition of firearms from Federal Firearms Licensees.

 

Particular emphasis is placed on individuals convicted of violent felonies or misdemeanor crimes of domestic violence, individuals subject to protective orders, and individuals who are fugitives where the underlying offense is a felony or misdemeanor crime of domestic violence; individuals suspected of involvement in criminal organizations or of providing firearms to criminal organizations; and individuals involved in repeat denials.

 

1. Improved Information Sharing. On a regular basis, and as often as practicable given current technical limitations, ATF will provide to state law enforcement fusion centers a report listing individuals for whom the National Instant Criminal Background Check System (NICS) has issued denials, including the basis for the denial, so that state and local law enforcement can take appropriate steps under their laws.

 

1. Coordinated Response to Mental Health Denials. Each United States Attorney will ensure that whenever there is federal case information regarding individuals who are prohibited from possessing a firearm under the mental health prohibition, such information continues to be entered timely and accurately into the United States Attorneys’ Offices’ case-management system for prompt submission to NICS. ATF should engage in additional outreach to state and local law enforcement on how to use this denial information to better assure public safety. 

 

Additionally, United States Attorneys will consult with relevant district stakeholders to assess feasibility of adopting disruption of early engagement programs to address mental-health-prohibited individuals who attempt to acquire a firearm. United States Attorneys should consider, when appropriate, recommending court-ordered mental health treatment for any sentences issued to individuals prohibited based on mental health.

1. Crime Gun Intelligence Coordination. Federal, state, local, and tribal prosecutors and law enforcement will work together to ensure effective use of the ATF’s Crime Gun Intelligence Centers (CGICs), and all related resources, to maximize the use of modern intelligence tools and technology. These tools can greatly enhance the speed and effectiveness in identifying trigger-pullers and finding their guns, but the success depends in large part on state, local, and tribal law enforcement partners sharing ballistic evidence and firearm recovery data with the ATF.

Federal law enforcement represents only about 15% of all law enforcement resources nationwide. Therefore, partnerships with state, local, and tribal law enforcement and the communities they serve are critical to addressing gun crime. The Department recognizes that sharing information with our state, local, and tribal law enforcement partners at every level will enhance public safety, and provide a greater depth of resources available to address gun crime on a national level.   

For more information on Project Guardian, see the Attorney General’s memorandum at: https://www.justice.gov/ag/project-guardian-memo-2019/download.

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LAS VEGAS, Nev. — Luis Angel Vicente Martir Gudiel, 27, of Arizona, was sentenced today by U.S. District Judge James C. Mahan to 11 years in federal prison to be followed by lifetime supervised release, U.S. Attorney Nicholas A. Trutanich announced. Gudiel will be deported after serving his sentence.

According to court documents, in 2016, Gudiel met a 14-year-old girl at church in Arizona and began a sexual relationship with her. The relationship ended when the victim’s family and church members learned of their relationship. In December 2017, Gudiel rekindled his sexual relationship with the victim and they communicated with each other via Snapchat and Facebook. From December 2017 to March 2018, Gudiel had sex with the victim more than 50 times. On March 4, 2018, when the victim was 15 years old, Gudiel picked her up from church and drove her home.After seeing the victim’s father outside the home, Gudiel told the victim that they were running away together and drove her to Las Vegas. When they arrived in Las Vegas, Gudiel received a call from the Phoenix Police Department looking for the victim. Through a collaborative effort between the Phoenix Police Department and the FBI, the victim was found in Las Vegas and returned safely to her family. Gudiel was arrested and officers obtained a search warrant for his cell phone. A forensic review of that phone showed child pornography videos of the victim that Gudiel had produced, transported, and possessed. Gudiel pleaded guilty in June 2019, to transportation of child pornography and possession of child pornography.

This case was the product of an investigation by the FBI. Assistant U.S. Attorney Elham Roohani prosecuted the case.

This investigation is 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 the U.S. Attorneys’ Offices and the 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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LAS VEGAS, Nev. – Steve Torres, 43, and Uriel Delgado, 37, both of Las Vegas, were sentenced today for selling large quantities of methamphetamine, U.S. Attorney Nicholas A. Trutanich for the District of Nevada announced.

According to court documents, between April and May 2018, Torres arranged and sold a total of 657 grams (approximately 1 ½ pounds) of methamphetamine to an undercover law enforcement officer. Co-defendants Jose Rosell and Uriel Delgado assisted Torres with two of the five sales. Torres, Delgado, and Rosell, were arrested after the fifth sale. Seventy-nine grams of methamphetamine were found during a later search of Torres’s vehicle and, during the arrest process, Rosell admitted to possessing methamphetamine in his home and consented to its search. A search of Rosell’s home produced 272 grams of methamphetamine, a .380 caliber firearm, and approximately $19,600.

Torres pleaded guilty in July 2019, and was sentenced to 96 months in prison; Delgado pleaded guilty in July 2019, and was sentenced to four years in prison; and Rosell pleaded guilty in December 2018, and was sentenced to five-and-a-half years in prison.

This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorneys Allison Reese and Christopher Lin prosecuted the case.

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LAS VEGAS, Nev. – Trixa Belloso Rivas, 55, of Las Vegas, was sentenced today to 14 months in federal prison and ordered to pay $2 million in restitution to the IRS, U.S. Attorney Nicholas A. Trutanich announced.

According to court documents, between August 2008 and May 2019, Rivas owned and operated BR Tax and Immigration Service, a tax preparation business in Las Vegas. As part of the conspiracy, Rivas’ co-conspirators obtained passports from citizens of foreign countries, such as Guatemala and El Salvador, that they could use to file fraudulent tax returns between $2,000 and $6,000. Over the course of about 34 months, Rivas assisted in filing at least 500 false tax returns in the names of more than 300 foreign citizens that caused the IRS to issue approximately $2,000,000 in fraudulent refunds.

This case was the product of an investigation by the IRS-Criminal Investigation. Assistant U.S. Attorney Tony Lopez prosecuted the case.

Rivas pleaded guilty in May 2019 to conspiracy to present false claims.

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LAS VEGAS, Nev. – Encompass Health Corp. (EHC), formerly known as HealthSouth Corporation, has agreed to pay the United States $4 million to settle allegations that an inpatient rehabilitation facility the company owned and operated in Nevada was improperly billing Medicare.

“This significant settlement demonstrates our continued commitment to protecting the Medicare program against fraud and abuse,” said U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

Encompass Health Rehabilitation Hospital of Henderson, LLC is owned by EHC, which operates an inpatient rehabilitation facility, formerly HealthSouth Henderson, Inc. (HHI). Kenneth Bowman was the Chief Executive Officer of HHI from approximately January 2010 through approximately March 2012.

The settlement resolves allegations that, from January 1, 2008 through December 31, 2012, HHI improperly assigned inaccurate and artificially low admission Functional Independence Measure scores on Patient Assessment Instrument forms to some of its patients. Given these allegations, the United States alleges that HHI submitted false claims to Medicare seeking and receiving greater reimbursement for its services for those patients than was warranted. 

The claims resolved by this settlement are allegations only, and there has been no determination of liability.

The matter was investigated by the Office of Inspector General (OIG-HHS) of the Department of Health and Human Services (HHS). Assistant U.S. Attorney Roger Wenthe litigated the case.

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LAS VEGAS, Nev. — Anderson Clayton Mariano Alcantara, 29, of Sorocaba, Brazil, was sentenced Monday to 97 months in prison, U.S. Attorney Nicholas A. Trutanich announced. 

According to court documents, from about January 1, 2013, to about January 3, 2017, Alcantara and others conspired to commit credit and debit card fraud by placing “skimmers” on automatic teller machines (ATM) and  cash-out transaction ticket dispensing terminals, such as Global Cash Advance (GCA) machines in order to steal account information. Alcantara and his co-conspirators set-up credit card forgery “laboratories” in residences and Las Vegas hotel rooms to manufacture counterfeit credit and debit cards. Equipment in the laboratories included counterfeit card production systems, thermal dye printers, card-encoding devices, embossing and foil tipping machines, and computer software for fabricating forged bankcards.

Alcantara and his co-conspirators used the counterfeit credit and debit cards at hotel casinos; nightclub;, high-end watch, jewelry, and fashion boutiques: electronic retailers; and ATMs in Las Vegas and in other cities around the country. The Alcantara group’s conspiracy touched Del Mar, California; Detroit, Michigan; New Orleans, Louisiana; Nassau County, New York; Biloxi, Mississippi; and Atlantic City, New Jersey. The co-conspirators obtained cash advances at casinos, and purchased expensive merchandise, including Rolex watches, high-end purses and handbags, and Apple iPhones. They resold the fraudulently obtained goods on the black market or through online marketplaces. Alcantara and his co-conspirators then laundered their ill-gotten proceeds through various bank accounts. These activities caused millions of dollars in losses to hotel-casino properties and other retail businesses.

This case was the product of a ten-month investigation by the FBI; the U.S. Department of State’s Diplomatic Security Service (DSS); the Las Vegas Metropolitan Police Department; and the Henderson Police Department. Assistant U.S. Attorney Patrick Burns prosecuted the case.

Alcantara pleaded guilty in September 2019, to conspiracy to commit fraud and related activity in connection with access devices; four counts of use or trafficking in unauthorized access device; four counts of aggravated identity theft; five counts of possession of access device-making equipment; two counts of production, use or trafficking of counterfeit access device; possession of fifteen or more counterfeit or unauthorized access devices; conspiracy to commit money laundering; and 18 counts of money laundering.

Alcantara is the 11th defendant to be sentenced in this case. Twenty-one individuals were charged in a 2017 indictment for their alleged roles in the conspiracy. To date, 12 defendants have pleaded guilty or have been sentenced. Co-defendants Fausto Teixeira Martins Neto and Felipe Augusto Vicale Martins are currently scheduled for a jury trial beginning in January 2020. The remaining seven indicted defendants are currently at large. The charges as to these defendants are allegations only and the defendants are presumed innocent unless and until proven guilty in a court of law.

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LAS VEGAS, Nev. – Today, the Office for Victims of Crime (OVC), a component of the Department’s Office of Justice Programs (OJP), released awards totaling more than $2.3 billion to state victim assistance and compensation programs, funding thousands of local victim assistance programs across the country, and providing millions in compensation to victims of crime. Ten awardees in Nevada will receive more than $43.7 million of these grant awards.

“Building on the historic amount of victim assistance and victim compensation funding awarded last year, these new awards have the potential to alter the landscape of the victims’ field, putting services and support within reach of every crime victim in America,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General of the Office of Justice Programs. “Backed by Attorney General William Barr, whose commitment to crime victims is second to none, we are proud to make these resources available to help meet the emotional, psychological and financial needs that victims face in the aftermath of crime.”

“This funding will help Nevada service providers and law enforcement provide the necessary assistance and compensation to survivors in need of critical service assistance during their road to recovery,” said U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

OVC’s flagship formula grant program is supported by the Crime Victims Fund (the Fund), which was established under the Victims of Crime Act (VOCA). The Fund supports a broad array of programs and services that help victims in the immediate aftermath of crime and continue to support them as they rebuild their lives. In FY18 alone, VOCA grants served over 6.3 million victims (a 24 percent increase over FY17) and paid more than $400 million in compensation claims. The Fund is financed by fines and penalties paid by convicted federal offenders and does not include tax dollars.

The vast majority of the over $2.3 billion in victim assistance funding goes to approximately 6,000 local direct service programs. These include children’s advocacy centers, domestic violence shelters, rape crisis centers, human trafficking and elder abuse programs, civil legal services, crime victims’ rights enforcement, as well as victim assistance positions in prosecutors’ offices and law enforcement departments.

State victim compensation programs will receive over $136 million to supplement the state funds that offset victims’ financial burdens resulting from crime. This compensation is vital to victims who face enormous financial setbacks stemming from medical fees, lost income, dependent care, funeral expenses, and other costs.

The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov. For a full database of OVC awardees, visit: https://www.ovc.gov/grants/grant_award_search.html.

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Award Title

Awardee

Amount

Solicitation Title

Reno Police Department FY 2019 Law Enforcement-Based Victim Specialist Program

Reno Police Department

$280,777

OVC FY 2019 Law Enforcement-Based Victim Specialist Program

Shoshone-Paiute Tribes Tribal Victim Services Program

Shoshone-Paiute Tribes of the Duck Valley Indian Reservation

$604,741

OVC FY 2019 Tribal Victim Services Set-Aside Program: OVC FY 2019 Tribal Victim Services Set-Aside Program: Purpose Area 1: Establishment of a New Victim Service Program

OVC FY 19 VOCA Assistance Formula

Nevada Department of Health and Human Services

$20,918,536

OVC FY 2019 VOCA Victim Assistance

Antiterrorism and Emergency Assistance Program for Crime Victim Compensation and/or Assistance

Nevada Department of Health and Human Services

$16,735,720

OVC FY 2019 Antiterrorism and Emergency Assistance Program (AEAP) for Crime Victim Compensation and Assistance

OVC FY 19 VOCA Compensation Formula

Nevada Dept of Administration

$2,252,000

OVC FY 2019 VOCA Victim Compensation

Reno-Sparks Indian Colony Victims Services Program

Reno Sparks Indian Colony

$459,786

OVC FY 2019 Tribal Victim Services Set-Aside Program: OVC FY 2019 Tribal Victim Services Set-Aside Program: Purpose Area 2: Coordination and Expansion of Existing Victim Service Program

Resources and Integration for Survivor Empowerment (R.I.S.E.)

The Rape Crisis Center DBA Community Action Against Rape

$889,015

OVC FY 2019 Direct Services to Support Victims of Human Trafficking: OVC FY 2019 Direct Services to Support Victims of Human Trafficking: PA1 Comprehensive Services for Victims of Human Trafficking

Southern Nevada Human Trafficking Services Project

Hookers For Jesus, Inc.

$530,190

OVC FY 2019 Direct Services to Support Victims of Human Trafficking: OVC FY 2019 Direct Services to Support Victims of Human Trafficking: PA1 Comprehensive Services for Victims of Human Trafficking

Awaken Housing Attainment Project Purpose Area 2: Specialized Services, Housing Services

Awaken, Inc.

$650,000

OVC FY 2019 Direct Services to Support Victims of Human Trafficking: OVC FY 2019 Direct Services to Support Victims of Human Trafficking: PA2 Specialized Services for Victims of Human Trafficking

Victim Assistance Academy of Nevada Enhancement and Expansion

State of Nevada Division of Child and Family Services

$394,920

OVC FY 2019 Discretionary Training and Technical Assistance Program for VOCA Victim Assistance Grantees

 

LAS VEGAS, Nev. – William Pamintuan Craig, 59, of Las Vegas, Nevada, pleaded guilty today to making and subscribing a false tax return, U.S. Attorney Nicholas A. Trutanich announced.

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 underreported his taxable income for tax years 2012 to 2017 by approximately $439,000 in total, causing $143,237 in tax loss. Furthermore, when preparing his clients’ tax returns, Craig purposely and fraudulently claimed sham “deductions” to which his clients were not entitled. Between 2012 and 2017, Craig caused at least $128,000 in tax loss by filing false returns on behalf of his clients.

This case was the product of an investigation by the IRS-Criminal Investigation. Assistant U.S. Attorney Tony Lopez is prosecuting the case.

Craig is scheduled to be sentenced by U.S. District Judge Andrew P. Gordon on January 23, 2020. Craig faces a maximum statutory penalty of three years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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LAS VEGAS, Nev. — William Etheridge, 56, pleaded guilty today to 11 counts of bank robbery, carjacking, and escape, U.S. Attorney Nicholas A. Trutanich announced. 

According to court documents, on May 18, 2017, Etheridge escaped from the Northwest Regional Reentry Center, a contracted correctional facility of the Federal Bureau of Prisons in Oregon, where he was in custody for a federal bank robbery conviction. Shortly after his escape, between June 2, 2017 and July 19, 2017, Etheridge robbed nine banks in Oregon and Washington, and attempted to rob another bank in Oregon.

On July 25, 2017, Etheridge, armed with a black pellet gun, stole $18,120 from a WestStar Credit Union in Las Vegas.  He then demanded a ride in one of the victim tellers’ cars. When none of the tellers volunteered to provide him with a ride, he told one of the tellers to leave the bank with him. Upon leaving the bank, Etheridge used force and violence to carjack a vehicle with two victims inside. At Etheridge’s request, the victims dropped him off at a motorcycle dealership in Las Vegas to purchase a motorcycle for use as a getaway vehicle. Shortly thereafter, law enforcement arrested Etheridge at the dealership.

This case was the product of an investigation by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Nicholas Dickinson is prosecuting the case.

Etheridge was investigated in three federal jurisdictions for his crimes, including the District of Nevada, the Western District of Washington, and the District of Oregon.

Etheridge is scheduled to be sentenced by U.S. District Judge Jennifer A. Dorsey on January 27, 2020.  Etheridge faces a maximum statutory penalty of 20 years in prison and a $250 fine for the bank robbery charge; 15 years in prison and a $250,000 fine for the carjacking charge; and five years in prison and a $250,000 fine for the escape charge. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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LAS VEGAS, Nev. – The U.S. Attorney’s Office and the DEA’s Las Vegas Division encourage Nevadans to participate in the 18th National Prescription Drug Take Back Day by dropping-off their expired, unused and unwanted medications on Saturday, October 26, from 10 a.m. to 2 p.m., at 19 collection sites.

“For the first time during Take Back Day, collection sites will accept vaping devices and cartridges – in addition to tablets, capsules, patches, and other medications in solid forms – at any of its drop-off locations,” said U.S. Attorney Nicholas A. Trutanich for the District of Nevada. “Take Back Day is the safest way to stop unused, expired prescription medications from being abused or diverted. I encourage Nevadans to clean out their medicine cabinets and nightstands, and take advantage of this free, anonymous service offered by DEA and community partners.”

“Often times prescription medications are misused or stolen from home medicine cabinets so this is a great way for the public to be a part of the solution and dispose of these potentially dangerous drugs in an environmentally safe manner,” said DEA Nevada Assistant Special Agent in Charge Daniel Neill.

Take Back Day addresses a crucial public safety and public health issue. According to the 2018 National Survey on Drug Use and Health, 9.9 million Americans misused controlled prescription drugs. The study showed that most of the abused prescription drugs were obtained from family and friends, often from the home medicine cabinet.

As a result of the past 17 Take Back Days nationwide, the DEA and its partners have collected and removed a total of nearly 12 million pounds (more than 5,900 tons) of expired, unused prescription medications.

You can find a collection site near you at www.DEATakeBack.com or by calling 1-800-882-9539.

For more information about the harms of opioids and youth vaping, visit: www.dea.gov, www.justthinktwice.gov, and www.GetSmartAboutDrugs.com.

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RENO, Nev. — Donte Jamar Smith, 41, of Reno, pleaded guilty today to felon in possession of a firearm, U.S. Attorney Nicholas A. Trutanich announced. 

According to court documents, Reno Police officers encountered Smith at a street intersection in Reno on July 27, 2019, asleep inside a running vehicle in a travel lane and smelling of alcohol. Upon exiting the vehicle, Smith became noncompliant with officers and during a search of his pants pocket, he was found in possession of a stolen .380 caliber semi-automatic firearm. Smith falsely informed the officers that he had been issued a concealed weapon permit. Smith is unable to lawfully possess firearms because he previously sustained three felony convictions in Clark County for offenses including Robbery with a Deadly Weapon, Burglary with use of a Deadly Weapon, and Ex-Felon in Possession of a Firearm. As Smith was escorted to a patrol vehicle, he attempted to flee on foot but was tackled and subdued.

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Megan Rachow is prosecuting the case.

Smith is scheduled to be sentenced by Chief U.S. District Judge Miranda Du on February 24, 2020. Smith faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case is part of Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. For more information about PSN, visit www.justice.gov/usao-nv.

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RENO, Nev. – On Monday, three Nevada men pleaded guilty to their participation in a 17-defendant drug trafficking distribution conspiracy that operated in the Reno area in 2018, announced United States Attorney Nicholas A. Trutanich. All 17 defendants now have pleaded guilty and await sentencing before Chief U.S. District Judge Mirada Du.

“Our office, through its vigorous implementation of the Project Safe Neighborhoods program, worked together with partner agencies to dismantle a large-scale drug trafficking organization in northern Nevada,” said U.S. Attorney Nicholas A. Trutanich for the District of Nevada. “We will continue to aggressively pursue traffickers who push poison into our communities.”

“The FBI is committed to working with our local partners in sophisticated investigations to reduce violence and drug trafficking throughout our state,” said Special Agent in Charge Aaron C. Rouse for the FBI. “This case underscores the impact of the FBI’s increased resources devoted to northern Nevada.”

The men who pleaded guilty on Monday are: Jose Vega, 34; Angel Diaz, 22; and Juan Baca, 45. The other defendants who pleaded guilty earlier this year are: Jose Valentin Mora, 37; Sandy Diaz Tavares, 35; Javier Chavez, 59; Shawn Curl, 36; Marcos Antonio Hernandez-Cisneros, 59; Roberto Mora-Mora, 53; Elizabeth Reyes-Delacerda, 27; Richard Rossall, 53; Ciara Hernandez, 19; Marco Antonio Ramirez, 37; Leon DeJesus Munera, 29; Kelsea Barbara Riley, 28; and Jorge Ayala-Chavez, 44, all of Reno. One defendant, Francisco Meza Recio, 32, of Simi Valley, California, remains a fugitive.

According to admissions and court documents, between January 25, 2018 to June 14, 2018, the defendants conspired with each other to possess and distribute large amounts of methamphetamine, cocaine, and heroin in the Reno area, and used their phones to further this drug trafficking conspiracy. On several occasions, Jose Valentin Mora, the conspiracy’s leader, arranged for four co-conspirators to drive to California to pick up a large amount of drugs to bring back to Mora in Reno. Mora maintained a trailer in Reno, where he kept the drugs before distributing them to others, including several co-conspirators. These co-conspirators redistributed the drugs to others in Reno.

According to court documents, much of the evidence establishing the existence of the drug trafficking conspiracy was obtained through Court-authorized interception of Mora’s cellular telephones and the execution by law enforcement agents of 25 search warrants for premises and vehicles. During the investigation, law enforcement agents recovered close to 20 pounds of methamphetamine and 18 firearms.

In a separate case, Jose Valentin Mora pleaded guilty to unlawfully possessing a firearm following an earlier felony conviction for drugs that made him ineligible to possess firearms. He faces a maximum statutory penalty of life in prison and a fine of $10,000,000 for his guilty plea in the drug trafficking conspiracy, and a maximum sentence of 10 years’ imprisonment and a $250,000 fine for his felon in possession case.

Mora’s codefendants, whose guilty pleas correspond to the various roles they played in this drug conspiracy, face a maximum penalty of between 4 years and life in prison.

The case was investigated by the FBI’s Safe Streets Task Force with significant assistance by the Reno Police Department, the Sparks Police Department, the Washoe County Sheriff’s Office, the Nevada Attorney General’s Office, and the Nevada Gaming Control Board. Assistant U.S. Attorneys James E. Keller and Andolyn Johnson are prosecuting the case.

This case is part of Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. For more information about PSN, visit www.justice.gov/usao-nv.

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A former Internal Revenue Service (IRS) employee and former attorney was sentenced yesterday to 32 months in prison in Las Vegas, Nevada, for tax evasion and obstructing the IRS, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Nicholas Trutanich for the District of Nevada. 

In May 2019, a jury convicted Craig Orrock, 72, of Salt Lake City, Utah, of evading the payment of federal income taxes and obstructing IRS efforts to collect those taxes.  Evidence at trial showed that Orrock filed tax returns for the years 1993 through 2015, but did not pay the income taxes reported as due on those returns. Orrock attempted to prevent the IRS from collecting the reported income taxes by using entities, bank accounts, and trusts in other names to hide his income and assets from IRS collection officers, filing frivolous bankruptcy petitions, and filing an offer-in-compromise falsely representing to the IRS that he had virtually no assets.  For example, Orrock used an entity known as Arville Properties LLC to conceal from the IRS his ownership of real property that he sold in 2007 for $1.5 million. In all, Orrock evaded the payment of over $500,000 in federal income taxes.

In addition to the term of imprisonment, Orrock was ordered to pay $923,666.73 in restitution and to serve three years of supervised release.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorney Erin S. Mellen and Assistant U.S. Attorney Patrick Burns, who prosecuted the case.

LAS VEGAS, Nev. - A former Internal Revenue Service (IRS) employee and former attorney was sentenced Tuesday to 32 months in prison in Las Vegas, Nevada, for tax evasion and obstructing the IRS, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Nicholas A. Trutanich for the District of Nevada. 

In May 2019, a jury convicted Craig Orrock, 72, of Salt Lake City, Utah, of evading the payment of federal income taxes and obstructing IRS efforts to collect those taxes.  Evidence at trial showed that Orrock filed tax returns for the years 1993 through 2015, but did not pay the income taxes reported as due on those returns. Orrock attempted to prevent the IRS from collecting the reported income taxes by using entities, bank accounts, and trusts in other names to hide his income and assets from IRS collection officers, filing frivolous bankruptcy petitions, and filing an offer-in-compromise falsely representing to the IRS that he had virtually no assets.  For example, Orrock used an entity known as Arville Properties, LLC to conceal from the IRS his ownership of real property that he sold in 2007 for $1.5 million. In all, Orrock evaded the payment of over $500,000 in federal income taxes.

In addition to the term of imprisonment, Orrock was ordered to pay $923,666.73 in restitution and to serve three years of supervised release.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorney Erin S. Mellen and Assistant U.S. Attorney Patrick Burns, who prosecuted the case.

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LAS VEGAS, Nev. – Hip hop producer Jamal Rashid, commonly known as “Mally Mall,” pleaded guilty today in federal court to unlawfully owning and operating a prostitution business guised as escort businesses, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

Rashid, 44, pleaded guilty to one count of use of an interstate facility in aid of unlawful activity. U.S. District Judge Richard F. Boulware II, accepted the guilty plea and scheduled a sentencing hearing for January 21, 2020.

According to information contained in the plea agreement, between April 2002 and September 2014, Rashid owned, operated, and managed several businesses in Clark County, Nev., that purported to offer legal escort services. Rashid admitted that he carried on an unlawful prostitution business through these escort businesses. He routinely used or caused others to use cell phones and other means to cause women who worked at his escort businesses to conduct acts of prostitution in Clark County. In some instances, Rashid’s credit card was used to pay for the airfare and other travel-related expenses and he used various paid websites, such as Backpage and Eros, to advertise the women for prostitution purposes. Furthermore, Rashid induced and enticed numerous women to engage in prostitution.

The case was investigated by the FBI. Assistant U.S. Attorney Nicholas Dickinson is prosecuting the case.

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LAS VEGAS, Nev. – Today, the Department of Justice announced it has awarded more than $85.3 million to bolster school security — including funding to educate and train students and faculty — and support first responders who arrive on the scene of a school shooting or other violent incident.

“These federal resources will help to prevent school violence and give our students the support they need to learn, grow, and thrive,’ said Attorney General William P. Barr. “By training faculty, students and first responders, and by improving school security measures, we can make schools and their communities safer.”

“The DOJ’s latest grant award will help keep violence out of the classrooms and off campuses,” said U.S. Attorney Nicholas A. Trutanich for the District of Nevada. “We continue to work with our partners to improve school safety through violence prevention training and funding for improving school safety measures.”

The Carson City School District received a COPS’ School Violence Prevention Program grant award of $190,803 to prevent violence and support school safety measures including coordination with law enforcement; training for law enforcement; deterrent measures such as metal detectors, locks, and lighting; and notification technology. President Trump signed the STOP School Violence Act into law in March 2018, authorizing grants that are designed to improve threat assessments, train students and faculty to provide tips and leads, and prepare law enforcement officers and emergency professionals to respond to school shootings and other violent incidents. The grant programs are managed by OJP’s Bureau of Justice Assistance and the Justice Department’s Office of Community Oriented Policing Services.

The Bureau of Justice Assistance, within the Department’s Office of Justice Programs, and the Office of Community Oriented Policing Services manage the programs and administer the grants, which include funds to:

• Develop school threat assessment teams and pursue technological solutions to improve reporting of suspicious activity in and around schools;
• Implement or improve school safety measures, including coordination with law enforcement, as well as the use of metal detectors, locks, lighting and other deterrent measures;
• Train law enforcement to help deter student violence against others and themselves;
• Improve notification to first responders through implementation of technology that expedites emergency notifications;
• Develop and operate anonymous reporting systems to encourage safe reporting of potential school threats;
• Train school officials to intervene when mentally ill individuals threaten school safety; and
• Provide training and technical assistance to schools and other awardees in helping implement these programs.

For more details about these individual award programs, as well as listings of individual 2019 awardees, visit https://go.usa.gov/xVJuV.

Today’s award announcement comes after the Department of Justice announced more than $70 million to support school safety and $64 million to improve state criminal record systems last year. Of the 2018 award, Nevada received more than $500,000.

About the Office of Justice Programs:

The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.

About the Office of Community Oriented Policing Services:

The COPS Office is a federal agency 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 approximately 130,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.

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LAS VEGAS, Nev. – A Las Vegas man was sentenced Wednesday by U.S. District Chief Judge Miranda Du to a total of 17 ½ years in federal prison for sexually exploiting children and possessing more than 200 images and videos of child pornography, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

Danny Ray Salzer, 53, pleaded guilty in May 2019, to three counts of sexual exploitation of children and one count of possession of child pornography. Under the Sex Offender Registration and Notification Act, Salzer must register as a sex offender for life.

According to court documents, in August 2017, detectives with the Las Vegas Metropolitan Police Department responded to a call reporting concern that Salzer was sexually abusing children in the home. The detectives were given a tablet belonging to Salzer that contained sexually explicit images of the three children. During an interview, two of the children disclosed that Salzer had sexually abused them and their siblings. The third child was not interviewed. Later, in September 2017, Salzer was located living at a storage facility and admitted that the tablet turned over to law enforcement and cell phones left in the storage shed belonged to him. A forensic review of the seized devices revealed 214 images and 17 videos of child pornography of the three children and other known victims. In his plea agreement, Salzer acknowledged that the children he abused were under his care, custody or supervisory control.

The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Elham Roohani prosecuted the case.

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, Nev. – A Nevada business owner and operator was arraigned in federal court today on charges related to a fraud scheme that allegedly defrauded from investors over $5 million, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

“The U.S. Attorney’s Office is committed to prosecuting individuals who engage in acts of financial fraud,” said U.S. Attorney Trutanich. “The alleged scheme deceived more than 200 investors and caused a loss of more than $5 million.”

Robert Cortez Marshall, 39, was charged by a grand jury on October 16, 2019, in an indictment with five counts of wire fraud and five counts of money laundering. He was arrested today and arraigned before U.S. Magistrate Judge Elayna J. Youchah.

According to allegations contained in the indictment, between approximately January 2014 and April 2015, Marshall owned and operated R.B.J. Generational Weatlth Management LLC d/b/a Adz on Wheelz. Marshall devised a scheme to defraud victims by inducing them to invest in Adz on Wheelz based on false representations and omissions, such as claims that Adz on Wheelz owned and operated a fleet of luxury vehicles that could be customized for digital advertising, that investors would receive a guaranteed weekly royalty payment, and that Adz on Wheelz had earned millions of dollars of commitments from advertisers. Instead, Marshall operated Adz on Wheelz almost entirely as a Ponzi scheme, using money solicited from new investors to make the “royalty payments” owed to prior investors. Marshall also transferred investor funds to other accounts under his control and used investor money for his own personal expenses. Through this scheme, Marshall defrauded more than 200 investors who invested a total of more than $5 million in Adz on Wheelz.

A jury trial has been scheduled for December 17, 2019. If convicted, the maximum penalty is 150 years in prison, a three-year term of supervised release, and a fine of more than $10,000,000.

The charges are only allegations. The defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt in a court of law.

The case was investigated by the FBI and the U.S. Secret Service. Assistant U.S. Attorney Tony Lopez is prosecuting the case.

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LAS VEGAS, Nev. – A Las Vegas man who admitted to defrauding more than $1.8 million from victims of a business fraud scheme was sentenced today to eight years in federal prison and ordered to pay $1,715,475 in restitution, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

Jihad Anthony Zogheib, 53, pleaded guilty without a plea agreement in October 2018, to eight counts of wire fraud in connection to a fraud scheme. Zogheib was sentenced by U.S. District Judge Larry R. Hicks.

Zogheib admitted in court that, from about 2010 to about 2013, he devised a scheme to fraudulently obtain money from people falsely representing that he would use their money for business purposes. As part of the scheme, he influenced victims’ decisions by using forged business documents and fictitious emails from banks. Specifically, in February 2011, Zogheib falsely told one of his victims about forming a mobile crane company and a mobile crane leasing company. He claimed he had millions of dollars in an overseas account, but it was placed on a hold. After showing the victim a fictitious bank record showing millions of dollars on deposit, Zogheib’s dupe caused the victim into giving him $548,000 to fund the sham companies. From November 2010 to about August 2013, Zogheib defrauded two other victims by falsely claiming he was in the business of flipping real estate. He made false representations to the victims in order to receive hundreds of thousands of dollars for the nonexistent real estate investments. These two victims sent Zogheib a total of $1,307,475. Zogheib immediately used the ill-gotten proceeds to fund his gambling habit and high-end lifestyle.

The case was investigated by the FBI. Assistant U.S. Attorneys Patrick Burns and Steven Myhre prosecuted the case.

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LAS VEGAS, Nev. – A Las Vegas felon pleaded guilty in federal court Tuesday to stealing more than 200 firearms from a trailer belonging to a Federal Firearms Licensee, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Ray Roundtree for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

“Stolen firearms often end up in the hands of dangerous criminals to be used in violent crimes,” said U.S. Attorney Trutanich. “The quick work of our dedicated agents and officers stopped more than 200 stolen guns from flooding our communities. Their quick work undoubtedly saved lives.”

Samual Lane Donesing, 29, of Las Vegas, was indicted in August 2018, with one count of possession of stolen firearms and one count of felon in possession of a firearm. He has three prior felony convictions in Clark County including forgery, possession of a stolen vehicle, and grand larceny. Donesing pleaded guilty without the benefit of a plea agreement before U.S. District Judge Richard F. Boulware II.

According to court documents and Donesing’s in-court admissions, on July 31, 2018, he stole a truck and trailer belonging to a Federal Firearms Licensee parked at the Fiesta Henderson Casino. The trailer contained over 200 firearms along with ammunition and firearms accessories such as holsters and magazines. Donesing and co-defendant Jaemillah Eagans drove the trailer to Donesing’s home and unloaded the firearms into the residence. Hotel surveillance footage showed Donesing and Eagans driving away with the stolen truck, and law enforcement soon identified the defendants as suspects.

Sentencing has been scheduled for January 16, 2020. Donesing faces a maximum penalty of 10 years in prison and a $250,000 fine for each count.

Eagans, 27, awaits a jury trial set on January 27, 2020. Eagans is presumed innocent unless and until proven guilty beyond a reasonable doubt.

The case was investigated by the ATF with assistance from the Henderson Police Department and Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Linda Mott is prosecuting the case.

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William Waller Jr., a Las Vegas real estate broker and the owner of Burbank Holdings or Platinum Properties, was sentenced today to 78 months in prison for tax evasion and willful failure to file tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Tax Division and U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

“The vast majority of Americans work hard to file honest tax returns and pay their fair share of taxes every year,” said Principal Deputy Assistant Attorney General Zuckerman.  “Those who willfully evade taxes with false claims that the tax laws do not apply to them will be prosecuted and risk imprisonment, like William Waller’s sentence today.”

“Paying your taxes is not a choice, hiding your income in shell companies is not an option, and lying about those practices will not be tolerated as demonstrated by today’s sentencing,” said Chief Don Fort, IRS Criminal Investigation. 

According to court pleadings and evidence presented at trial, Waller sought to evade taxes by incorporating a shell entity, opening bank accounts in its name, and directing his income into those accounts rather than accounts in his own name.  He also dealt extensively in cash and reduced his equity in his home, the only asset he held in his own name, thereby making it an unattractive asset for the IRS to seize. 

Waller testified at trial that he believed that he was not required to file tax returns or pay taxes, but acknowledged that he was influenced by the teachings of several prominent tax defiers. These included one who had been convicted three times of tax fraud, and another who had been stripped of his CPA license. Waller also admitted to purchasing and watching tax defier courses, including one on how to beat criminal tax charges.  Following the defendant’s testimony and the conclusion of the trial, the jury returned guilty verdicts on March 18, 2019.

In addition to the term of imprisonment, U.S. District Court Judge James C. Mahan also ordered Waller to pay $1,459,535.70 in restitution to the IRS and serve three years of supervised release.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Christopher Magnani and Michael Landman of the Tax Division, who prosecuted the case, and Paralegal Specialist Saundra Burgess of the Tax Division, who assisted at trial. 

WASHINGTON – William Waller Jr., a Las Vegas real estate broker and the owner of Burbank Holdings or Platinum Properties, was sentenced today to 78 months in prison for tax evasion and willful failure to file tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Tax Division and United States Attorney Nicholas A. Trutanich for the District of Nevada.

“The vast majority of Americans work hard to file honest tax returns and pay their fair share of taxes every year,” said Principal Deputy Assistant Attorney General Zuckerman.  “Those who willfully evade taxes with false claims that the tax laws do not apply to them will be prosecuted and risk imprisonment, like William Waller’s sentence today.”

“Paying your taxes is not a choice, hiding your income in shell companies is not an option, and lying about those practices will not be tolerated as demonstrated by today’s sentencing,” said Chief Don Fort, IRS Criminal Investigation. 

According to court pleadings and evidence presented at trial, Waller sought to evade taxes by incorporating a shell entity, opening bank accounts in its name, and directing his income into those accounts rather than accounts in his own name.  He also dealt extensively in cash and reduced his equity in his home, the only asset he held in his own name, thereby making it an unattractive asset for the IRS to seize. 

Waller testified at trial that he believed that he was not required to file tax returns or pay taxes, but acknowledged that he was influenced by the teachings of several prominent tax defiers. These included one, who had been convicted three times of tax fraud, and another, who had been stripped of his CPA license. Waller also admitted to purchasing and watching tax defier courses, including one on how to beat criminal tax charges.  Following the defendant’s testimony and the conclusion of the trial, the jury returned guilty verdicts on March 18, 2019.

In addition to the term of imprisonment, U.S. District Court Judge James C. Mahan also ordered Waller to pay $1,459,535.70 in restitution to the IRS and serve three years of supervised release.

Principal Deputy Assistant Attorney General Zuckerman and United States Attorney Trutanich thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Christopher Magnani and Michael Landman of the Tax Division, who prosecuted the case, and Paralegal Specialist Saundra Burgess of the Tax Division, who assisted at trial.

LAS VEGAS, Nev. – A 56-year-old Las Vegas man convicted of possessing over 600 images of child sexual abuse was sentenced today by U.S. District Judge James C. Mahan to the statutory maximum of 20 years in federal prison to be followed by a lifetime of supervised release, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

Following a one-day bench trial in April 2019, Gilbert Davila Jr. was convicted of one count of possession of child pornography. At the time of the offense, Davila had been previously convicted in California of Unlawful Sexual Intercourse with a Minor and Lewd Acts Upon a Child Under 14.

According to court documents and facts presented during the bench trial, in August and October 2017, the National Center for Missing and Exploited Children (NCMEC) received a report from an online email service provider in reference to possible child pornography uploaded by a user. The report was sent to the Las Vegas Metropolitan Police Department’s Internet Crimes Against Children (ICAC) Task Force, who in turn obtained a search warrant for information regarding the user who had uploaded the child pornography. The search warrant revealed that the user account contained more than 600 images depicting child sexual exploitation and child abuse. A search warrant was also executed at Davila’s home. Davila was interviewed after execution of the warrant and explained that he had been looking at child pornography for approximately four to five years. He also stated that he performed a factory reset on his phone on the way to the interview to delete all images and videos of child pornography saved to his phone, and that he threw the phone battery and SIM card out of the car window.

The case was investigated by the FBI and Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Elham Roohani prosecuted the case.

If you have information regarding possible child sexual exploitation, you are urged to make a report to the National Center for Missing and Exploited Children at www.cybertipline.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 the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, visit www.usdoj.gov/psc.

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LAS VEGAS, Nev. - A Las Vegas, Nevada, tax return preparer pleaded guilty yesterday to multiple tax crimes, which caused a total tax loss of more than $3.4 million, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

Michael A. Sandoval pleaded guilty to one count of tax evasion, one count of aiding and assisting in the preparation and filing of a false tax return, and one count of making and subscribing a false tax return.

According to documents filed with the court, Sandoval provided payroll and tax preparation services for individuals and companies through his Las Vegas business Nevada Financial Solutions Inc. (NFS). Sandoval used NFS to commit multiple tax crimes. First, when two of his clients provided NFS with $471,178 in payments to be forwarded to the Internal Revenue Service (IRS) as money due for their quarterly employment taxes, Sandoval did not provide those payments to the IRS, but instead spent the funds for his personal benefit. Second, Sandoval filed and caused the filing of false individual income tax returns for a substantial number of clients by reporting fraudulent deductions, including false Schedule C business losses and charitable contribution and state and local tax deductions. These fraudulent deductions caused a tax loss of over $2.8 million. Lastly, Sandoval fraudulently understated his income from NFS on his individual income tax returns for the years 2010 through 2017, causing an additional tax loss of $100,138. In total, Sandoval caused a tax loss totaling $3,425,654.

Sentencing is scheduled for Jan. 9, 2020. Sandoval faces a statutory maximum of five years in prison on the tax evasion charge and three years in prison for each of the false tax return charges. Sandoval also faces a period of supervised release, restitution and monetary penalties.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Thomas W. Flynn and Eric C. Schmale of the Tax Division, who are prosecuting the case.

Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.

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LAS VEGAS, Nev. – A Las Vegas drug dealer was sentenced Monday to eight years and two months in federal prison for selling large quantities of Oxycodone, a Schedule II controlled substance, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

Earnest Rogers, 48, pleaded guilty on March 4, 2019, to one count of conspiracy to distribute a controlled substance. In addition to the prison term, U.S. District Judge Jennifer A. Dorsey sentenced Rogers to three years of supervised release.

According to court documents, Rogers admitted that, between August 2016 and April 2017, he and others agreed to obtain prescription pills, namely Oxycodone, from co-conspirators and resell those pills to others. He had multiple individuals who routinely contacted him to sell prescription pills they either obtained through a medical prescription or from someone else. Rogers received and sold more than 1,000 Oxycodone (30 mg) pills during the conspiracy.

Co-defendants Kary Watson, Jason West, Marcus Jones, Leslie Brass, Artavious Wright, Murray Newton, Jamal William, Richard Roberts, and John Phillips all pleaded guilty and have been sentenced or are awaiting sentencing. Damien Norris was convicted by a jury and is scheduled to be sentenced on October 15, 2019.

The case was investigated by the DEA.

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LAS VEGAS, Nev. – A Las Vegas felon was arraigned on an indictment in federal court yesterday before U.S. Magistrate Judge Brenda Weksler for robbing an adult novelty store at gunpoint, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

Comet Traye Russell, 42, was indicted by a federal grand jury on August 21, 2019, with one count of interference with commerce by robbery; one count of brandishing a firearm in furtherance of a crime of violence; and one count of felon in possession of a firearm.

According to the indictment, on June 11, 2019, Russell was armed with a 9mm handgun and robbed The Love Store located in North Las Vegas. Russell is a felon with a burglary conviction and is prohibited from possessing firearms.

A jury trial is scheduled for December 2, 2019. The maximum penalty Russell faces upon conviction of all three charges is life imprisonment and a $750,000.00 fine. An indictment is merely a charge and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt in a court of law.

The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Stephanie Ihler is prosecuting the case.

This case was brought as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.

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LAS VEGAS, Nev. – An active-duty United States Air Force Master Sergeant currently assigned to Nellis Air Force Base in Las Vegas was indicted by a federal grand jury on September 24, 2019, with federal firearm and drug trafficking charges, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

The indictment charges Michael Reimers, 39, of Las Vegas, with two counts of distribution of a controlled substance, one count of engaging in the business of dealing in firearms without a license, and one count of sale of a firearm to a prohibited person.

According to allegations in the indictment, from July 2019 to September 2019, Reimers sold cocaine and more than 50 grams of methamphetamine. In addition, he sold an AK-47 7.62mm caliber rifle, a .25 caliber handgun, and a 12 gauge shotgun without a license. The shotgun was sold to an illegal alien.

An indictment is merely an allegation, and 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 DEA, along with the Las Vegas Metropolitan Police Department and Henderson Police Department. Assistant U.S. Attorney Shaheen Torgley is prosecuting the case.

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LAS VEGAS, Nev. – A Las Vegas businessman who pleaded guilty to committing a $28 million tax fraud conspiracy was sentenced today to three years in federal prison, announced United States Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Tara Sullivan for the IRS-Criminal Investigation.

Ramon Desage, 69, was charged by a second superseding indictment on February 11, 2014. On August 31, 2018, Desage pleaded guilty to one count of conspiracy to defraud the United States as charged in the second superseding indictment.

Today, in addition to the prison term, United States District Judge Jennifer A. Dorsey ordered Desage to pay $28,221,767 in restitution to the IRS and sentenced him to three years of supervised release upon his release from prison.

Desage admitted as part of his plea that, from about January 1, 2006, through about October 20, 2010, he conspired with his bookkeeper, co-defendant Gary Parkinson, and tax preparer, co-defendant Peter Akaragian, to cause fraudulent federal income tax returns to be filed for himself and his entities for tax years 2006, 2007, 2008, and 2009. According to court documents, Desage omitted tens of millions of dollars in income from his returns and created false business deductions to further avoid paying his income taxes. The false deductions that Desage and his co-conspirators claimed in the returns reclassified personal expenses as business expenses. Thus, they claimed fraudulent deductions for luxury car purchases, houses, jewelry, repayment of millions in gambling debts, private plane air travel, home improvements, and lavish gifts for Desage’s girlfriends and acquaintances. Desage’s outstanding tax due was approximately $28.2 million for tax years 2006 through 2009.

Akaragian pleaded guilty and was sentenced in October 2018, and Parkinson is scheduled to begin a jury trial in January 2020.  The charges against Parkinson merely are allegations and he is presumed innocent unless and until proven guilty.

The case was investigated by IRS-Criminal Investigation. Assistant United States Attorney Patrick Burns prosecuted the case.  

LAS VEGAS, Nev. – On September 18, 2019, a federal grand jury returned an indictment  against a California-based landlord who buys, sells and rents buildings in Las Vegas, and the Las Vegas-based contractor who was working for the landlord. The criminal indictment charges the two men with violating the Clean Air Act by failing to remediate and remove asbestos from a downtown Las Vegas apartment complex before renovating it, endangering the health and welfare of the tenants living there at the time.

California real estate owner Bobby Babak Khalili, 52, and the Las Vegas contractor were charged with six-counts of Clean Air Act violations. Khalili, who is known by a number of aliases, was arrested in Los Angeles and arraigned on the indictment in U.S. District Court in the Central District of California on September 19, 2019. He was released on a $50,000 bond.

“Landlords must maintain their rental properties in a habitable condition and provide a safe place for tenants to reside–free from dangerous environmental toxins,” said United States Attorney Nicholas A. Trutanich for the District of Nevada. “The indictment demonstrates our office’s commitment to protecting the health and well-being of the environment in vulnerable communities in Las Vegas and throughout Nevada.”

“Exposure to asbestos is associated with lung cancer and other serious respiratory diseases,” said Special Agent in Charge Jay Green of EPA’s Criminal Investigation Division. “The indictment sends a clear signal that EPA and its law enforcement partners are committed to enforcing environmental laws that help protect our communities from illegal asbestos abatement.”

The Clean Air Act authorized the EPA to establish “work practice standards” that must be followed to ensure the safe and proper handling and removal of asbestos during renovations. Asbestos is a group of naturally occurring minerals made up of microscopic bundles of fibers. Asbestos can cause life-threatening illnesses, and has been defined by Congress as a hazardous air pollutant.

In 2016, Khalili and his family owned the 16-unit “11th & Bonneville Apartments” in downtown Las Vegas. On March 30, 2016, air quality specialists with the Clark County Department of Air Quality saw a 40-cubic yard dumpster containing regulated asbestos-containing material (RACM) at the apartment building. They documented RACM debris and residue in the dumpster, in several apartment units, and in common areas. From March 2016 through April 11, 2016, the defendants failed to inspect the apartments and failed to remove and remediate RACM prior to starting renovation. During the renovation, half of the building’s 16 units were occupied. The indictment alleges that the defendants failed to provide written notice to EPA and Clark County Department of Air Quality before starting removal and renovation work. After removal of the RACM, they failed to properly handle the RACM.

An indictment is merely a charge and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt in a court of law. The maximum penalty the defendants face on each count is five years of imprisonment and a fine of $250,000.

The case was investigated by the EPA.

To report a possible violation of environmental laws and regulations, make a report to the EPA at https://echo.epa.gov/report-environmental-violations.

LAS VEGAS, Nev. – Attorney General William P. Barr today announced the appointment of Nicholas A. Trutanich, U.S. Attorney for the District of Nevada, along with eight other U.S. Attorneys, to serve on the Attorney General’s Advisory Committee (AGAC). The following eight U.S. Attorneys were also named to serve on the AGAC: David Anderson, Northern District of California; Scott Brady, Western District of Pennsylvania; Maria Chapa Lopez, Middle District of Florida; Halsey Frank, District of Maine; Erica MacDonald, District of Minnesota; Christina Nolan, District of Vermont; Zach Terwilliger, Eastern District of Virginia; and Tom Kirsch, Northern District of Indiana.

“I am pleased to appoint these nine outstanding U.S. Attorneys to this key advisory committee. I am confident that they will serve with distinction,” Attorney General William P. Barr said. “The U.S. Attorneys who comprise the Attorney General’s Advisory Committee play a critical role in carrying out the Department of Justice’s important work, including its efforts to reduce violent crime, combat the opioid crisis, protect the most vulnerable, and enforce the rule of law.”

The AGAC represents the voice of the U.S. Attorneys and provides advice and counsel to the Attorney General on policy, management, and operational issues impacting the 93 U.S. Attorneys’ Offices across the nation.

The bios of all U.S. Attorneys are available here.

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LAS VEGAS, Nev. – A trade show worker who pleaded guilty to stealing 65 firearms (including machine guns and silencers) from the 2019 Shooting, Hunting, and Outdoor Trade (SHOT) show in Las Vegas was sentenced today to two years in federal prison followed by two years of supervised release, announced United States Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Ray Roundtree of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

Jamikko Foster, 27, of Las Vegas, pleaded guilty in June 2019, to one count of theft of a firearm from a Federal Firearms Licensee (FFL) and one count of unlawful possession of a machine gun. United States District Judge Richard F. Boulware II presided over the sentencing hearing.

Foster admitted that, from January 20 to 29, 2019, he stole 65 firearms and suppressors (known as “silencers”) from four separate FFLs at the SHOT show. Among the 65 stolen firearms were 18 handguns, six rifles, three machine guns, one short barreled rifle, and 35 suppressors. On February 11, 2019, after the investigation identified Foster as one of the suspects in the theft, police obtained and executed search warrants for Foster’s residence and vehicle. During the execution of the warrants, all the stolen firearms (and all but two suppressors) were recovered.

Co-defendant Eduardo Limon, 28, pleaded guilty to the charges and is scheduled to be sentenced on October 24, 2019.

The case was investigated by ATF’s Las Vegas Field Office and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Peter S. Levitt prosecuted the case.

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LAS VEGAS, Nev. - A grand jury in Las Vegas returned a superseding indictment today charging a tax return preparer with preparing and filing false tax returns, aggravated identity theft, and wire fraud announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, United States Attorney Nicholas Trutanich for the District of Nevada, and Special Agent in Charge Tara Sullivan for the IRS-Criminal Investigation.

According to the indictment, King Isaac Umoren, was the owner and operator of Universal Tax Services, a Las Vegas tax preparation business. From 2014 to 2016, Umoren allegedly used his employees’ preparer tax identification numbers without their consent in order to prepare fraudulent income tax returns for his clients. The indictment also alleges that Umoren charged his clients hidden fees in addition to his tax preparation fee without their knowledge or consent.

If convicted, Umoren faces a maximum sentence of five years in prison on each of the false return counts, a maximum sentence of 20 years on each of the wire fraud counts, and a statutory mandatory sentence of two years on each of the aggravated identity theft counts. He also faces a period of supervised release, restitution, and monetary penalties.

An indictment merely alleges that a crime has been committed, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

Principal Deputy Assistant Attorney General Zuckerman and United States Attorney Trutanich commended special agents of IRS-Criminal Investigation and the Treasury Inspector General for Tax Administration (TIGTA), who conducted the investigation, and Trial Attorney Sarah Kiewlicz and Assistant United States Attorney Patrick Burns, who are prosecuting the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website at www.justice.gov/tax.

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A grand jury in Las Vegas, Nevada, returned a superseding indictment today charging a tax return preparer with preparing and filing false tax returns, aggravated identity theft, and wire fraud announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

According to the indictment, King Isaac Umoren, was the owner and operator of Universal Tax Services, a Las Vegas tax preparation business. From 2014 to 2016, Umoren allegedly used his employees’ preparer tax identification numbers without their consent in order to prepare fraudulent income tax returns for his clients. The indictment also alleges that Umoren charged his clients’ hidden fees in addition to his tax preparation fee without their knowledge or consent. 

If convicted, Umoren faces a maximum sentence of five years in prison on each of the false return counts, a maximum sentence of 20 years on each of the wire fraud counts, and a statutory mandatory sentence of two years on each of the aggravated identity theft counts. He also faces a period of supervised release, restitution, and monetary penalties.

An indictment merely alleges that a crime has been committed, and 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 TIGTA, who conducted the investigation, and Trial Attorney Sarah Kiewlicz and AUSA Patrick Burns, 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, Nev. – A man who pleaded guilty to his involvement in a multimillion dollar international counterfeit credit card fraud and money laundering conspiracy was sentenced today to 97 months in federal prison to be followed by three years of supervised release, announced United States Attorney Nicholas A. Trutanich for the District of Nevada.

Bruno Macedo Correia, 29, pleaded guilty in July 2019, to conspiracy to commit fraud and related activity in connection with access devices and conspiracy to commit money laundering. In addition to imprisonment, United States District Judge Jennifer A. Dorsey ordered Correia to pay restitution in the amount of $2,288,180.97. The Court also imposed a $5,000,000 criminal forfeiture money judgment, and ordered 196 items of property and U.S. currency forfeited.

Correia admitted that, from January 2013 to about January 2017, he conspired with others to commit credit and debit card fraud by using “skimmers” placed on automatic teller machines (ATMs), Global Cash Advance (GCA) machines, and other means to obtain stolen account information. The group also obtained stolen credit card information through the use of malware and point of sale intrusions. Correia and his co-conspirators set-up credit card forgery “laboratories” in residences and hotel rooms to manufacture counterfeit credit and debit cards. They used the counterfeit credit and debit cards to obtain cash withdrawals from ATMs and GCA machines located in Nevada and elsewhere and also to purchase high-end merchandise including luxury watches, jewelry, and clothing at hotel-casinos and businesses in Las Vegas, Nevada and other cities throughout the United States, including: Del Mar, California; Detroit, Michigan; New Orleans, Louisiana; Nassau County, New York; Biloxi, Mississippi; and Atlantic City, New Jersey. The group laundered the fraud proceeds and resold the fraudulently obtained retail items on the black market or online marketplaces.

Twenty-one individuals were charged in a 2017 indictment for their alleged roles in the conspiracy. To date, 12 defendants have pleaded guilty or have been sentenced. Co-defendants Fausto Teixeira Martins Neto and Felipe Augusto Vicale Martins are currently scheduled for a jury trial beginning in January 2020. The remaining seven indicted defendants are currently at large. The charges as to these defendants are allegations only and the defendants are presumed innocent unless and until proven guilty in a court of law.

The case was investigated by the FBI, the Las Vegas Metropolitan Police Department, the Department of State’s Diplomatic Security Service, and the Henderson Police Department. Assistant United States Attorney Patrick Burns is prosecuting the case.

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LAS VEGAS, Nev. – Jayson Michael Babbitt, 35, of Las Vegas, was charged today by criminal complaint with engaging in the business of dealing in firearms without a license, illegal possession of a machine gun, and making a machine gun in violation of the National Firearms Act, announced United States Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Ray Roundtree of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).  Babbitt made an initial appearance on the complaint this afternoon before United States Magistrate Judge Elayna J. Youchah.

According to the allegations contained in the complaint, beginning on or about June 2019 and continuing through September 2019, Babbitt illegally manufactured AR-15 style fully automatic rifles and offered them for purchase in the Las Vegas area. In July 2019, during a controlled purchase, Babbitt sold two fully automatic rifles, one short barrel and one long barrel, for $4,200 to an undercover buyer. Babbitt claimed to have manufactured the machine guns himself in his home with a “jig” using 80% lower receivers, blocks of aluminum, and M-16 machine gun parts to finish the firearms. Babbitt referred to the guns as “Ghost Guns” since the firearms did not have serial numbers so the firearms “would not exist in the eyes of the ATF.”  Babbitt also showed the undercover buyer a video of himself test firing the firearms. On September 3, 2019, Babbitt sold an undercover buyer an additional three AR-15 style machine guns for $6,000.00. Babbitt told the undercover buyer that he planned on buying a machine that would allow him to make the gun parts easier and quicker. Babbitt was taken into custody by law enforcement after the September 3, 2019 sale. Babbitt admitted to manufacturing the machine guns he sold at his residence. A search warrant was executed at Babbitt’s residence where the “jig” was located as well as parts used in the manufacture of firearms. ATF Firearms Technology Criminal Branch tested the machine guns purchased in July 2019 and found that the firearms are operable and meet the definition of a “machine gun” under the federal National Firearms Act, Title 26, United States Code Section 5845(b). 

A complaint contains merely allegations and the defendant is presumed innocent until and unless proven guilty in a court of law.

The case is being investigated by the ATF. Assistant United States Attorneys Lisa Cartier Giroux and Stephanie Ihler are prosecuting the case.

This case was brought as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.

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RENO, Nev. – A Reno resident who was on parole when he downloaded over two thousand images and videos of child pornography was sentenced today to 6 ½ years in federal prison, announced United States Attorney Nicholas A. Trutanich for the District of Nevada.

David Guilmette, 37, pleaded guilty in March 2018, to one count of receipt of child pornography. Guilmette has a felony conviction for attempted sexual assault of a child. In addition to the prison term, United States District Chief Judge Miranda Du sentenced Guilmette to lifetime supervised release. He will also be required to register as a sex offender under the Sex Offender Registration and Notification Act (SORNA).

According to court documents, in October 2017, Reno Police Department officers responded to a complaint from a witness that reported seeing Guilmette looking at child pornography on a laptop computer. During an interview with law enforcement, Guilmette admitted to searching for and downloading child pornography. Officers obtained a search warrant to seize the laptop, thumb drive, and a mobile phone. A forensic examination of Guilmette’s laptop and thumb drive revealed approximately 850 images and 115 videos depicting children engaging in sexually explicit conduct, some masochistic and sadistic in nature. An additional 1,240 images and seven videos were located from deleted files.

The case was investigated by the FBI and the ICAC Task Force consisting of Washoe County Sherriff’s Office, Nevada Attorney General’s Office, Department of Homeland Security Investigations, Reno Police Department and Sparks Police Department. Assistant United States Attorneys Sue Fahami and Andolyn Johnson prosecuted the case.

If you have information regarding possible child sexual exploitation, you are urged to make a report to the National Center for Missing and Exploited Children at www.cybertipline.org or to contact local authorities.

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, Nev. – Nevada United States Attorney Nicholas Trutanich met this week with fellow members of the Attorney General’s Advisory Subcommittee on Native American Issues (NAIS) in Santa Ana Pueblo, New Mexico, in order to discuss public safety and law enforcement issues that impact Native American and Alaska Native communities.

During the three-day annual meeting, the NAIS engaged with tribal leaders and developed strategies and best practices to address missing and murdered indigenous people, drug trafficking, needed law enforcement resources, and safeguarding children from sexual abuse in Indian country.

The most common crimes investigated in Indian country include child sexual abuse, violent assaults, and adult sexual assaults, followed by homicide, other forms of child abuse, drug, and property crimes. According to a 2016 study funded by the National Institute of Justice, more than 80 percent of American Indian and Alaska Native adults have experienced some form of violence in their lifetime, and more than half of all American Indian and Alaska Native women have experienced violence from an intimate partner. Native women and girls suffer a high rate of violence, including murder.

“United States Attorneys nationwide are committed to improving public safety in Indian country and rural Alaska. The work of Attorney General Barr’s Native American Issues Subcommittee is focused on reducing violent crime, improving law enforcement resources, and combating the distribution of methamphetamine and opioids,” said US Attorney Shores, Chair of the NAIS. “The disproportionate rates of violence affecting Native American and Alaska Native women is particularly troubling to me. With Attorney General Barr’s leadership, we will continue working with tribal leaders to find solutions to the epidemic of violence against indigenous women.”

“The U.S. Attorney’s Office reaffirms its commitment to working with tribal, local, state, and federal law enforcement agencies to improve the safety and security of Native American communities,” said U.S. Attorney Trutanich. “Prosecutors are working every day to bring violent offenders to justice and to reduce and prevent crime. In addition, through the Department of Justice’s grant programs, we are helping communities become safer and providing victims with a full range of services and support.” 

Panel discussions focused on the Indian Arts and Crafts Act and preserving Native American cultural patrimony. The Indian Arts and Crafts Act of 1990 is a truth-in-advertising law that prohibits misrepresentation in the marketing of Indian arts and crafts products within the United States. It is illegal to offer or display for sale, or sell any art or craft product in a manner that falsely suggests it is Indian produced, an Indian product, or the product of a particular Indian or Indian tribe or Indian arts and crafts organization, resident within the United States. 

U.S. Attorney John Anderson of the District of New Mexico hosted the three-day conference.

The NAIS consists of 53 U.S. Attorneys serving in districts that include Indian Country or one or more federally recognized tribes and makes policy recommendations to the Attorney General. The NAIS has identified four priority areas: 1) Violent crime 2) Law enforcement resources 3) Drug trafficking and substance abuse, and 4) White collar crime. It is the longest standing subcommittee to the Attorney General’s Advisory Committee and helps develop, shape, and otherwise implement justice policies affecting Native Americans and Alaska Natives. U.S. Attorney Trent Shores of the Northern District of Oklahoma is the subcommittee Chair. U.S. Attorney Kurt Alme of the District of Montana is the Vice Chair.

In fiscal year 2018, the Department of Justice awarded $113 million in grant awards to improve public safety, serve victims of crime, combat violence against women, and support youth programs, to 134 Indian tribes and Alaska Native villages. In addition, the Department awarded a total of 154 grants totaling $88 million as part of the first-ever Tribal Victim Service Set-Aside program; these awards were supported by the Crime Victims Fund, a repository of federal criminal fines, fees, and special assessments. The awards will help tribes develop, expand and improve services to victims of crime by providing funding, programming and technical assistance. Even more funding will be available – up to $168 million – under the set-aside this year. 

In July 2019, the Department announced a new tool giving tribal governments the ability to input data directly and gain access to the FBI’s National Sex Offender Registry (NSOR) using the Tribe and Territory Sex Offender Registry System (TTSORS). TTSORS is a fully functioning registry system that complies with Sex Offender Registration and Notification Act requirements. The system connection will be available to all tribal governments already participating in the Tribal Access Program (TAP), which allows information sharing between tribal and federal government criminal information systems. TAP has been instrumental in assisting tribes with ongoing implementation of SORNA. In fiscal year 2019, the department expanded TAP to 25 more tribes, for a total of more than 70 participating tribes across the country.

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LAS VEGAS, Nev. – A federal Grand Jury returned a 28 count indictment yesterday against a Las Vegas businessman for aiding in the preparation of false tax returns, announced United States Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Tara Sullivan for the IRS-Criminal Investigation.

As alleged in the indictment, Lance K. Bradford, 52, a CPA and majority owner of tax and audit firm, L.L. Bradford CPAs, aided and assisted in the preparation of false and fraudulent individual income tax returns for Tax Years 2012, 2013, and 2014. Those false tax returns are alleged to have claimed false deductions for millions of dollars in cost of goods sold, consulting fees, and omitted gross receipts. The returns were filed on behalf of seven individual taxpayers and their associated corporate and partnership entities.

Bradford is scheduled to be arraigned before United States Magistrate Judge Elayna J. Youchah on September 3, 2019. The maximum penalty is three years in prison and a $100,000 fine per count.

An indictment contains merely allegations and the defendant is presumed innocent until and unless proven guilty in a court of law.

The case was investigated by the IRS-Criminal Investigation. Assistant United States Attorneys Patrick Burns and Steven Myhre are prosecuting the case.

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RENO, Nev. – A doctor and nurse were charged in a 15 count indictment alleging they conspired to prescribe opioids not in the usual course of professional practice, announced United States Attorney Nicholas A. Trutanich for the District of Nevada and Assistant Special Agent in Charge Daniel W. Neill of the DEA.

Dr. Gary Ridenour, 71, of Fallon, and Derek Braddix, 36, of Sparks, were charged with one count of conspiracy to distribute controlled substances and one count of maintaining a drug-involved premises. In addition, Dr. Ridenour was charged with six counts of distribution of schedule II, III, IV substances hydrocodone, Tylenol with codeine, and alprazolam. Braddix was charged with four counts of distribution of Hydrocodone and three counts of distribution of Alprazolam. Dr. Ridenour was detained yesterday until September 4, when his detention hearing will continue. Braddix is on conditions of pretrial release.

As alleged in the indictment, from 2016 to February 2019, Dr. Ridenour and Braddix conspired to prescribe and did prescribe Hydrocodone, Tylenol with Codeine, Alprazolam, and Carisoprodol, all without a legitimate medical purpose and not in the usual course of professional practice. Furthermore, they maintained a medical practice along Reno Highway in Fallon, Nevada when they unlawfully prescribed these substances. 

In an unrelated indictment, Dr. Ridenour was also charged for unlawful possession of a .22 caliber rifle, a .17 caliber rifle, a .45 caliber pistol, and a 7.62 caliber rifle after having a prior felony conviction in Nevada.

An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The unlawful opioid distribution conspiracy case was investigated by the DEA and the unlawful possession of firearms case was investigated by the FBI. Assistant United States Attorney James Keller is prosecuting these cases.

If you have a tip or information about illegal sales or distribution of prescription opioids by doctors and pharmacies, call the DEA at 1-877-RX-Abuse (792-2873).

The Opioid Fraud and Abuse Detection Unit is a program that utilizes data to identify and prosecute individuals that are contributing to the prescription opioid epidemic. Since 2017, when the Department of Justice funded a dedicated opioid prosecutor in the District of Nevada, the United States Attorney’s Office has prosecuted about 12 opioid-related cases and charged about 24 defendants.

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LAS VEGAS, Nev. – An enrolled member of the Ely Shoshone Tribe was indicted by a federal grand jury charging him with the murder of a three-year-old girl.

“Violent crime against women and children on tribal land is a significant priority for the Department of Justice,” said United States Attorney Nicholas A. Trutanich for the District of Nevada. “I am proud to be part of an organization that does its very best to protect vulnerable victims.”

“One of the reasons that the Las Vegas Division augmented our resources in Northern Nevada was to amplify and strengthen our existing partnerships with our local and tribal partners,” said Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Field Office. “This complex investigation underscored the success of these efforts.”

Colon Jackson, 28, was arrested last week Friday in White Pine County, Nev. His detention hearing is scheduled to be continued to August 29, before United States Magistrate Judge Carla Baldwin Carry. Jackson is charged with one count of murder in the first degree. A trial date has been set for October 22, 2019. If convicted, the maximum penalty is life in prison.

According to the indictment and facts presented at the detention hearing, on January 9, 2019, the 3-year-old girl went to day care and was later picked-up by her mother and taken home so Jackson could care for her while her mother was at work. After the victim’s mother returned to work, Jackson called her to tell her that the girl was unconscious. The mother came home and took the child to the emergency room in Ely. The girl was then flown from Ely to Salt Lake City and died shortly thereafter. As alleged, Jackson abused the girl resulting in a significant head injury causing her death.

The charge is merely an allegation and the defendant is presumed innocent unless and until proven guilty in a court of law.

The case was investigated by the FBI. Assistant United States Attorneys Penelope Brady and Sue Fahami are prosecuting the case.

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RENO, Nev. – A northern Nevada doctor specializing in family medicine was sentenced today to one year and one day in federal prison and ordered to pay a $125,000 fine for overprescribing highly addictive pain pills Oxycodone and Hydrocodone not for a legitimate medical purpose, announced United States Attorney Nicholas A. Trutanich for the District of Nevada, Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Field Office, and Special Agent in Charge Timothy B. DeFrancesca for the Office of Inspector General of the United States Department of Health and Human Services.

“Today’s sentencing is a reminder of our unwavering commitment to hold dirty doctors accountable for feeding into the addiction of their patients,” said U.S. Attorney Trutanich. “We will continue to aggressively pursue medical professionals who disregard their oath to do no harm.”

“The accessibility of deadly drugs are a threat to our communities,” said Special Agent in Charge Rouse. “Each and every day, the FBI and our partners in Nevada are working hard targeting distributors, who illegally contribute to the opioid crisis that continues to devastate communities all over the state of Nevada.” 

Dr. Shouping Li, 57, the former Vice Chief of Staff for Humboldt County General Hospital in Winnemucca, Nev., pleaded guilty in February 2019, to distribution of a controlled substance, specifically Oxycodone and Hydrocodone. In addition to the imprisonment, United States District Judge Miranda Du sentenced Dr. Li to three years of supervised release.

According to court documents, the investigation into Dr. Li, who specialized in family medicine with a concentration in cardiovascular disease, began in March 2018, after the FBI received reports of several deaths related to opioid pain medication overdoses and allegations that Dr. Li may have illicitly been prescribing narcotics not for a legitimate medical purpose. Dr. Li admitted that, between August 2015 and February 2018, he prescribed Oxycodone and Hydrocodone at a high dosage rate to his patients outside the usual course of his professional practice and without a legitimate medical purpose. He further admitted that several of his patients passed away while he actively attended to them.

The case was investigated by the FBI, Tri-County Drug Enforcement Team, Nevada Department of Public Safety, Humboldt County Sheriff's Office, Winnemucca Police Department, Elko Combined Narcotics Unit, Elko Police Department, Elko County Sheriff's Office, and the Office of Inspector General of the U.S. Department of Health and Human Services. Assistant United States Attorney Sue Fahami and Assistant Chief Kilby MacFadden from the Department of Justice Fraud Section prosecuted the case.

If you have a tip or information about illegal sales or distribution of prescription opioids, including Fentanyl, Oxycodone, and Hydrocodone by doctors and pharmacies, contact the FBI at tips.fbi.gov.

The Opioid Fraud and Abuse Detection Unit is a program that utilizes data to identify and prosecute individuals that are contributing to the prescription opioid epidemic. Since 2017, when the Department of Justice funded a dedicated opioid prosecutor in the District of Nevada, the United States Attorney’s Office has prosecuted about 12 opioid-related cases and charged about 24 defendants. 

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