District of Nevada
Press releases recorded for this federal judicial district.
Former Las Vegas Illusionist Sentenced to 20 Years in Prison for Possession, Receipt, and Distribution of Child PornographyRead the Press Release
LAS VEGAS, Nev. – Former Las Vegas illusionist Jan Rouven Fuechtener was sentenced today to 240 months in federal prison and ordered to pay a $500,000 fine for possession, receipt, and distribution of more than 9,000 images and videos of child pornography, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Field Office. Due to this conviction, Fuechtener will be deported from the United States after serving his sentence, and will be barred from returning for any purpose.
“Today’s sentencing is another example of law enforcement’s steadfast commitment to this office’s Project Safe Childhood initiative,” said U.S. Attorney Trutanich. “Federal law enforcement, along with the U.S. Attorney’s Office, will aggressively investigate and prosecute those that exploit children. The lengthy prison sentence imposed vindicates the victims of this defendant’s crimes and sends the message that justice was done.”
“We have no greater duty than to protect the most vulnerable among us, and the men and women of the FBI will continue to relentlessly pursue those who seek to harm our children,” said Special Agent in Charge Rouse. “Every time child pornography is viewed on the internet a child is revictimized.”
Fuechtener, who used an online alias of Lars Schmidt, 40, a citizen of Germany, pleaded guilty on Nov. 17, 2016, during his bench trial for the criminal charges. Instead of proceeding with sentencing, he filed a motion to withdraw his guilty plea on June 22, 2017. Over the course of a five-day evidentiary hearing, Fuechtener’s former attorneys testified that they had advised him of details of the plea agreement, including potential penalties and consequences of the plea. At the hearing, Fuechtener personally testified and called a fellow inmate, who is also charged with child pornography offenses, to testify on his behalf. The Court believed the testimony of Fuechtener’s former attorneys and denied the motion to withdraw on June 15, 2018.
In his plea agreement, Fuechtener admitted that he shared numerous child pornography files on GigaTribe, a peer-to-peer file sharing program. During the execution of a search warrant of Fuechtener’s residence, law enforcement found over 9,000 images and videos depicting children engaging in sexually explicit conduct. These files were found on nine devices collected from all over Fuechtener’s home. Fuechtener further admitted that he used the Skype username “larusa22” to engage in chats to distribute child pornography by sharing his GigaTribe “Lars45” folder in exchange for watching a father sexually assault his daughter, and that he used Grindr to chat with others about coordinating to drug and sexually molest a young boy.
The investigation was conducted by the FBI. Assistant U.S. Attorneys Elham Roohani and Lisa Cartier-Giroux prosecuted the case.
To report an incident involving the possession, distribution, receipt, or production of child pornography, contact the National Center for Missing & Exploited Children by phone at 1-800-843-5678 or online at www.cybertipline.com.
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, please visit www.justice.gov/psc.
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Leader of Timeshare Resale Fraud Scam Targeting Elderly Victims Sentenced to Five Years in Prison for $3.37 Million in LossesRead the Press Release
LAS VEGAS, Nev. – The leader of a large-scale timeshare resale scam was sentenced today to 63 months in federal prison for defrauding more than 1,000 victims, many of them elderly, out of more than $3.3 million, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
“Today’s sentence demonstrates law enforcement’s commitment to protecting vulnerable elder populations in Nevada,” said U.S. Attorney Trutanich. “Elder fraud and exploitation can have a crippling effect on victims, and federal prosecutors will pursue financial fraudsters who exploit our most vulnerable for personal and financial gain.”
Daniel Martin Boyar, aka “Wolf,” 64, of Orlando, Florida, previously pleaded guilty to conspiracy to commit mail fraud and wire fraud, two counts of mail fraud, and two counts of wire fraud. In addition to the prison term, U.S. District Judge James C. Mahan sentenced Boyar to three years of supervised release and ordered him to pay $3.37 million in restitution to the victims of the fraud scheme.
Between October 2010 to April 2012, Boyar, the admitted leader of the scheme, and his 20 co-conspirators devised and participated in a telemarketing scam to defraud more than 1,000 timeshare owners out of more than $3.3 million dollars. Using stolen data to identify timeshare owners, the defendants promised to sell the timeshares in return for the owner paying in advance half of the costs associated with the purported sales. There were no buyers and the timeshare sales never occurred. This is a common criminal telemarketing scheme known as “the buyer’s pitch.” Boyar was directly responsible for more than $3.3 million in losses to the victims.
The scam operated out of Orlando, Florida, under numerous business names including Holiday Advertising, First Capital Financial Services Corporation, Professional Concepts LLC, TeleTeton Corporation, Redline Funding LLC, Great West Funding Incorporated, Equity Financial Services LLC, Beneficial Business Solutions, Eastern Enterprises LLC, Vacation Funding Partners LP, Property, People, Travel, and Community Funding Corporation, using fake front companies in various cities across the United States, including Las Vegas, Nevada. Boyar and his co-conspirators would use false identities and lease temporary office spaces around the country. This allowed them to establish front companies using inactive companies which made the scam appear legitimate. Using voice-over-internet phone systems, they spoofed telephone numbers that made it appear that they were calling from the location of the fake front company. Callers in the scheme pretended to be in the distant office, using the internet to track the weather and local news in the location of the fake front company and inviting victims to view the leased building on mapping websites. The conspirators created websites with materially false and misleading information to include customer testimonials, company officers, and press releases.
Twenty of Boyar’s co-conspirators were charged and have pleaded guilty for their involvement in this fraud scheme. Six, in addition to Boyar, have been sentenced. The remainder await sentencing.
The case was investigated by the FBI, the U.S. Postal Inspection Service, and the Florida Department of Agriculture and Consumer Services. Assistant U.S. Attorney Dan Cowhig prosecuted the case.
Consumers should use caution when previously unknown telemarketers offer unsolicited services. It is relatively easy for scam artists to create the appearance of legitimacy for a fraudulent business front by manipulating information available through the Internet. Fraudsters frequently are able to buy or steal information related to their intended victims that the victim believed was confidential, helping the fraudster trick the victim into believing the fraudster is part of a legitimate business.
Elder fraud complaints may be filed with the Federal Trade Commission at www.ftccomplaintassistant.gov or at 1-877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime at www.ovc.gov. Additional elder justice resources, training, and outreach materials can be found at the Elder Justice Website at www.elderjustice.gov.
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Las Vegas Photographer Pleads Guilty to Multi-State Child Sexual Exploitation ConspiracyRead the Press Release
LAS VEGAS, Nev. – A Las Vegas photographer who posed as a professional modeling photographer and alternative sports sponsor to lure children on the promise of sponsorships pleaded guilty today in federal court in connection to a child sexual exploitation conspiracy, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Field Office.
William Clyde Thompson, 58, of Las Vegas, pleaded guilty to child exploitation enterprise, sexual exploitation of a child, conspiracy to produce child pornography, distribution of child pornography, conspiracy to distribute child pornography, and possession of child pornography. He was indicted in September 2013 in Nevada and in 2015 in Arizona. United States District Judge Jennifer A. Dorsey scheduled a sentencing hearing for May 28, 2019.
According to admissions contained in the binding plea agreement, in November 2011, Thompson took sexually explicit photos and videos of a 10-year-old boy. He later introduced the victim, who was a skateboarder, to a potential sponsor. In November 2012, the victim’s mother made a report to the Las Vegas Metropolitan Police Department after the potential sponsor informed her that he believed her child was being sexually exploited. Later that month during the execution of search warrants, multiple digital devices belonging to Thompson were seized from his residence and studio. A forensic examination of the devices revealed over 10,000 files of child sexual exploitation photos and videos.
In January 2013, Thompson was arrested in Nevada on child pornography charges and the state court ordered him released on house arrest. However, Thompson cut off his ankle bracelet and fled the Las Vegas area. He was later indicted on federal charges in September 2013.
While on the run from law enforcement, Thompson contacted at least six boys in the spring and summer of 2014 at the Needles California Skate Park. He identified himself as “Tony Bailor” and “Jason Brock” and told the boys he was a “scooter sponsor.” He and others provided the boys with gifts to induce their compliance and to recruit other minors to be part of the “team” that he claimed he wanted to sponsor. In reality, Thompson and others recruited the “team” with the intention to produce child pornography and to sexually abuse the boys.
Thompson convinced the boys to travel without their parents to his Mohave Valley, Arizona, residence for photo shoots on several occasions. He told the boys they would be paid for the photos and that he would resell the photos online through a website. He told them that prospective buyers had requested specific boys, poses, and clothing in the creation of the pornographic depictions. The boys complied with Thompson’s requests because of the money, alcohol, and marijuana he provided them. Over a six-month period, Thompson produced over 20,000 images and videos depicting sexually explicit content of the children.
Thompson and a co-conspirator created multiple websites to distribute the child pornography he created. Thompson would post sample child pornography photos on one of the websites and when someone purchased the photos based on the sample, he would send the purchaser a hyperlink to the child pornography files on a cloud-based service.
In January 2015, Thompson was arrested during a traffic stop in Mohave Valley, Arizona. At the time of his arrest, law enforcement recovered digital devices belonging to Thompson that contained over one million images and ranged from child erotica to child pornography of several victims.
Both parties jointly recommended Thompson be sentenced to 354 months in prison with a lifetime term of supervised release. As part of the plea agreement, he agreed to pay full restitution to his victims.
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Christopher Burton and Elham Roohani are prosecuting the case.
If you have information regarding William Clyde Thompson, you are urged to contact the nearest FBI field office or local law enforcement. To remain anonymous, call Crime Stoppers at (702) 385-5555 or visit www.crimestoppersofnv.com, or contact the National Center for Missing & Exploited Children (NCMEC) by calling the 24-hour hotline at 1-800-THE-LOST (1-800-843-5678) or by making a report at www.cybertipline.com.
This case was brought as part of Project Safe Childhood, a nationwide initiative 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 Woman Sentenced and Ordered to Pay Nearly $14 Million in Restitution Related to Small Business Grant Schemes Targeting the Elderly and Committing Health Care FraudRead the Press Release
LAS VEGAS, Nev. – A Las Vegas woman was sentenced yesterday to 34 months in federal prison and ordered to pay more than $13.9 million in restitution to victims in connection with a series of grant fraud schemes, announced U.S. Attorney District Nicholas A. Trutanich for the District of Nevada. The woman’s fraud schemes targeted small business owners, many of them elderly, and a separate Medicare and insurance fraud scheme.
Lorraine Riddiough, aka Lorraine Ann Mader, 70, of Las Vegas, was also sentenced to five years of supervised release by U.S. District Judge Andrew P. Gordon. The sentencing combined four separate cases. Riddiough pleaded guilty last year to four counts of conspiracy to commit mail and wire fraud, two counts of wire fraud, and one count each of health care fraud and theft of government property.
From October 2009 to Spring 2013, Riddiough and others conspired to defraud small business owners by falsely telling the business owners that they qualified for grants, which Riddiough and others promised to secure for the business owners for a fee, usually between $2,500 and $7,000. Riddiough and the others did not provide the promised services or obtain grants for the small business owners. After scamming the initial $2,500 to $7,000 from the victim, Riddiough and the others often told the victims that grants had been approved, but that additional steps and fees were needed to access that grant. More than 25 victims suffered significant financial hardship as a result of the losses from the advance-fee telemarketing scheme. Riddiough herself directly obtained approximately $444,224 from the victims.
Riddiough admitted that after the telemarketing schemes were shut down by law enforcement intervention in 2014, she faked medical conditions, ailments, and injuries related to a minor, low-speed car accident to steal Medicaid benefits and funds from the Government Employees’ Insurance Company (GEICO). She filed a series of false claims related to the traffic accident and made a series of fake medical complaints including her inability to work and drive her car due to her injuries. She received treatment and medication for the non-existent injuries she falsely claimed.
The cases were investigated by the FBI. Assistant U.S. Attorney Dan Cowhig prosecuted the cases.
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Nevada U.S. Attorney's Office Collects over $7.2 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2018Read the Press Release
LAS VEGAS, Nev. – United States Attorney Nicholas A. Trutanich announced today that the District of Nevada collected $7,219,564 in criminal and civil actions in Fiscal Year 2018. Of this amount, $4,090,476 was collected in criminal actions and $3,129,088 was collected in civil actions.
The District of Nevada also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $11,949,827 in cases pursued jointly by these offices.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending September 30, 2018. The $14,839,821,650 in collections in fiscal year 2018 is nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.
“The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. The money that we are able to recover for victims and this country as a whole is a direct result of their hard work,” Director James A. Crowell, IV, Executive Office for U.S. Attorneys.
“We are fully committed to seeking justice for victims of crime, and we will use all available tools and resources to collect restitution and fines,” said U.S. Attorney Trutanich. “The more than $7.2 million recovered in fiscal year 2018 by our office is a testament to the efforts by dedicated Assistant U.S. Attorneys and staff, especially the office’s Financial Litigation Unit, who collects funds on behalf of victims and the federal treasury. I thank our staff for their persistence and hard work in the successful recovery of civil and criminal funds.”
Major case highlights include:
- Cardiovascular and Thoracic Surgeons of Nevada, Inc. paid $1.5 million to resolve allegations related to its potential liability under the False Claims Act. The Las Vegas medical practice, whose principal physician was Dr. Bashir Chowdhry, billed federal healthcare programs, including Medicare and the U.S. Department of Veterans Affairs, for surgical services not actually provided to its cardiac patients, and also billing for more expensive surgical and evaluation and management services than those actually provided to its patients.
- Concord Treatment Center, d/b/a Desert Hope Treatment Center, was audited by the DEA, which found that a Desert Hope employee had ordered and diverted 1,900 dosage units of Schedule II-IV controlled substances, and that Desert Hope had failed to maintain proper records for 12 Schedule II-IV controlled substances. Desert Hope paid a $250,000 civil penalty, surrendered the DEA registration for its internal pharmacy, and retained a subcontractor to manage its internal pharmacy in the future.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
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Two Men Arrested and Charged for Possession of Dozens of Firearms Including Machine Guns and Silencers Stolen at SHOT Show in Las VegasRead the Press Release
LAS VEGAS, Nev. – Two men made their initial appearances in federal court yesterday on charges related to the possession of 65 firearms, including machine guns, and silencers, stolen at a Las Vegas gun show last month, announced U.S. 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, and Eduardo Limon, 28, both of Las Vegas, were each charged with possession of a stolen firearm and possession of an unregistered firearm. Foster is also charged with theft of a firearm from a Federal Firearms Licensee (FFL) and unlawful possession of a machine gun. United States Magistrate Judge Nancy Koppe set a preliminary hearing for both defendants for February 27, 2019.
As alleged in the criminal complaint, from January 20 to 29, 2019, a total of 65 firearms and suppressors, also known as “silencers,” were stolen from the business inventory of three separate FFLs at the 2019 Shooting, Hunting, and Outdoor Trade (SHOT) Show in Las Vegas. The SHOT Show, held annually at a Las Vegas convention center, requires FFLs to either disable or remove the firing pins from all displayed firearms. Based on these circumstances, ATF issued an alert to FFLs to be on the lookout for weapons missing firing pins.
On February 10, a FFL alerted ATF about two men who inquired about purchasing a firing pin for an AR-style firearm. ATF was able to identify Foster and Limon from surveillance footage.
On February 11, law enforcement executed a search warrant at Foster’s apartment where they recovered 56 firearms, machine guns, and silencers. The next day, a search warrant was executed at Limon’s residence and law enforcement recovered an additional 10 firearms and silencers. One of the recovered pistols had a clamp attached to a security cable, which was still attached to the trigger guard.
If convicted, the maximum statutory penalty is 10 years in prison for each count and a $250,000 fine.
The charges contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty in a court of law.
The case was investigated by the ATF San Francisco Field Division’s Las Vegas Field Office and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Phillip N. Smith Jr. is prosecuting the case.
To report a tip about stolen firearms contact the ATF at 1-888-ATF-TIPS (1-888-283-3473).
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Northern Nevada Woman Pleads Guilty to Stabbing Elderly Man on Indian ReservationRead the Press Release
RENO, Nev. – A member of the Te-Moak of the Western Shoshone pleaded guilty today to stabbing an elderly man multiple times, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
Jean Angela Ortega, aka Angel Jim, 41, pleaded guilty to assault resulting in serious bodily injury. She is an enrolled member of the Te-Moak Tribe of the Western Shoshone. United States District Judge Howard D. McKibben scheduled sentencing for May 29, 2019.
According to court documents, on February 1, 2018, an officer with the Bureau of Indian Affairs responded to a possible stabbing incident at a house within the territorial boundaries of the Elko Indian Colony for the Te-Moak Tribe of Western Shoshone, in Elko, Nevada. Upon arriving at the house, the officer found a 78-year-old man on the floor bleeding from multiple stab wounds. He was transported to the North Eastern Nevada Regional Hospital and later flown by an emergency medical helicopter to Salt Lake City, Utah, for further treatment, including surgery. Ortega admitted that she assaulted and stabbed the victim in the abdomen, arm, and back.
Ortega faces the maximum statutory penalty of 10 years in prison and a $250,000 fine.
The case was investigated by the Bureau of Indian Affairs and FBI. Assistant U.S. Attorney Sue Fahami is prosecuting this case.
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Las Vegas Man Sentenced to Eight Years in Prison for Soliciting and Receiving Sexually Explicit Photos from Autistic Minor VictimRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man who repeatedly played the game of “truth or dare” with an autistic girl to entice her to send him sexually explicit photos was sentenced to eight years in federal prison to be followed by lifetime supervised release, announced U.S. Attorney District Nicholas A. Trutanich for the District of Nevada.
“The defendant in this case exploited a vulnerable victim with special needs,” said U.S. Attorney Trutanich. “The Department of Justice’s Project Safe Childhood initiative brings together a network of law enforcement partners to protect children from those who would exploit their vulnerabilities and my office will continue to support the cause of keeping children in Nevada safe.”
Fredy Hernandez-Gomez, 32, previously pleaded guilty to receipt of child pornography before U.S. District Judge Kent J. Dawson.
Hernandez-Gomez admitted that in April 2017, he began exchanging text messages with his friend’s autistic 13-year-old girl daughter. He and the girl would “dare” each other to do various things and he used the “dares” to induce her to comply and to reduce the risk that she would tell her parents. On May 5, 2017, he texted the girl to send him photos of herself telling her to “be daring,” and “don’t be shy.” They continued to exchange sexually explicit text messages. When the girl sent sexually explicit photos of herself, Hernandez-Gomez texted “I like them” and then “Erase it.” The girl’s parents subsequently discovered the text messages and made a report to the police. During an interview with law enforcement, Hernandez-Gomez admitted to sending the victim text messages and asking her to send him sexually explicit photos of herself. Hernandez-Gomez admitted to receiving the sexually explicit photos he requested.
During the investigation, the minor victim reported that Hernandez-Gomez also sexually abused her. Hernandez-Gomez subsequently was charged with and pleaded guilty in Clark County District Court to one count of attempted sexual assault. On January 3, 2019, Hernandez-Gomez was sentenced in connection with that case to eight to 20 years in prison.
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Christopher Burton 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 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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Nevada Salesman, His Domestic Partner, and Reno Businessman Indicted for Conspiring to Defraud the IRSRead the Press Release
On Feb. 7, 2019, a federal grand jury returned an indictment charging Saud Alessa, Jeffrey Bowen, and Jackie Hayes, with conspiring to defraud the Internal Revenue Service (IRS), and additionally charged Alessa with tax evasion and filing false tax returns, announced Principle Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney Nicholas A. Trutanich for the District of Nevada.
According to the indictment, Bowen was the President and owner of a vacuum cleaner distributing company in Reno, Nevada. Alessa worked for Bowen’s company on sales teams from 1998 to 2006. During those years, Alessa allegedly accrued over $200,000 in unpaid federal income tax. In 2006, the IRS began attempting to collect Alessa’s outstanding tax liabilities. Alessa allegedly did not voluntarily pay any of his outstanding debt to the IRS, and in 2013, Alessa filed a bankruptcy petition reporting that he owed a federal tax debt of $503,821 to the IRS.
The indictment charges that between 2010 and 2013 Alessa, Alessa’s longtime domestic partner Hayes, and Bowen conspired to conceal Alessa’s business activity and income from the IRS. Alessa’s commissions and other earned income earned were allegedly recorded in Bowen’s company’s books in Hayes’s name and paid to Hayes instead of Alessa. Alessa, Bowen, and Hayes allegedly filed fraudulent documents with the IRS that disguised the commissions and other income earned by Alessa as income earned by Hayes. In order to further the scheme, the co-conspirators allegedly made false and misleading statements to the IRS, the United States Bankruptcy Court, and the United States Trustee’s office to convince the authorities that Alessa had no business activity and no source of income that could be used to pay Alessa’s outstanding tax debt to the IRS.
The indictment also charges Alessa individually with evading the payment of taxes, penalties and interest due and owing to the IRS for tax years 1998 through 2007, and with filing false income tax returns for 2012 and 2013.
If convicted, Alessa, Bowen, and Hayes each face a maximum sentence of five years in prison on the conspiracy counts. Alessa faces an additional five years in prison on the tax evasion count and an additional three years in prison on each false return count. Alessa, Bowen, and Hayes also face a period of supervised release and monetary penalties.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
IRS-Criminal Investigation investigated the case. Trial Attorneys Christopher Strauss and Michael Landman, both of the Tax Division, along with Assistant United States Attorney Sue Fahami, are prosecuting the case.
Nevada Salesman, His Domestic Partner, and Reno Businessman Indicted for Conspiring to Defraud the IRSRead the Press Release
RENO, Nev. - On Feb. 7, 2019, a federal grand jury returned an indictment charging Saud Alessa, Jeffrey Bowen, and Jackie Hayes, with conspiring to defraud the Internal Revenue Service (IRS), and additionally charged Alessa with tax evasion and filing false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney Nicholas A. Trutanich for the District of Nevada.
According to the indictment, Bowen was the President and owner of a vacuum cleaner distributing company in Reno, Nevada. Alessa worked for Bowen’s company on sales teams from 1998 to 2006. During those years, Alessa allegedly accrued over $200,000 in unpaid federal income tax. In 2006, the IRS began attempting to collect Alessa’s outstanding tax liabilities. Alessa allegedly did not voluntarily pay any of his outstanding debt to the IRS, and in 2013, Alessa filed a bankruptcy petition reporting that he owed a federal tax debt of $503,821, to the IRS.
The indictment charges that between 2010 and 2013 Alessa, Alessa’s longtime domestic partner Hayes, and Bowen conspired to conceal Alessa’s business activity and income from the IRS. Alessa’s commissions and other earned income earned were allegedly recorded in Bowen’s company’s books in Hayes’s name and paid to Hayes instead of Alessa. Alessa, Bowen, and Hayes allegedly filed fraudulent documents with the IRS that disguised the commissions and other income earned by Alessa as income earned by Hayes. In order to further the scheme, the co-conspirators allegedly made false and misleading statements to the IRS, the United States Bankruptcy Court, and the United States Trustee’s office to convince the authorities that Alessa had no business activity and no source of income that could be used to pay Alessa’s outstanding tax debt to the IRS.
The indictment also charges Alessa individually with evading the payment of taxes, penalties and interest due and owing to the IRS for tax years 1998 through 2007, and with filing false income tax returns for 2012 and 2013.
If convicted, Alessa, Bowen, and Hayes each face a maximum sentence of five years in prison on the conspiracy counts. Alessa faces an additional five years in prison on the tax evasion count and an additional three years in prison on each false return count. Alessa, Bowen, and Hayes also face a period of supervised release and monetary penalties.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
IRS-Criminal Investigation investigated the case. Trial Attorneys Christopher Strauss and Michael Landman, both of the Tax Division, along with Assistant United State Attorney Sue Fahami are prosecuting the case.
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Las Vegas Man Sentenced to 18 Years in Prison for Distribution of Child PornographyRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man who uploaded child pornography to an instant messaging site was sentenced yesterday to 18 years and one month in federal prison to be followed by a lifetime term of supervised release, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division.
Steven Wilson, 35, of Las Vegas, previously pleaded guilty to distribution of child pornography and was sentenced by U.S. District Judge Kent J. Dawson.
In November 2016, Wilson uploaded seven images of child pornography to the Yahoo! messenger application. Law enforcement determined the images were uploaded at an apartment belonging to Wilson. A search warrant was executed at his residence. He admitted to law enforcement that he possessed and distributed child pornography in chat rooms, as well as through Yahoo! messenger. A forensic examination of devices belonging to Wilson revealed over 750 images and videos of child pornography, including 44 images and videos depicting infants and toddlers and numerous images depicting violence.
During the investigation, a minor victim reported that Wilson had sexually abused her. Wilson subsequently was charged with and pleaded guilty in Clark County District Court to one count of attempted sexual assault. On January 29, 2019, Wilson was sentenced in connection with that case to five to 15 years in prison.
The case was investigated by the FBI. Assistant U.S. Attorney Christopher Burton prosecuted the case.
If you have information regarding possible child sexual exploitation, make a report to the National Center for Missing and Exploited Children (NCMEC) by calling the 24-hour hotline at 1-800-THE-LOST (1-800-843-5678) or by making a report at www.cybertipline.com.
This case was brought as part of Project Safe Childhood, a nationwide initiative 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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Florida Woman Sentenced to Prison for $1.3 Million Mail Fraud Scheme Involving False Claims of Veterans Affairs SettlementRead the Press Release
LAS VEGAS, Nev. – A Florida resident was sentenced Tuesday to 27 months in federal prison and three years’ supervised release for committing a $1.3 million mail fraud scheme, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
Maria Jesus Luciano, 67, of Tampa, Florida, previously of Las Vegas, pleaded guilty without the benefit of a plea agreement to 11 counts of mail fraud. In addition to the prison term, U.S. District Judge Andrew P. Gordon ordered her to pay $1,292,748 in restitution.
According to court documents, Luciano resided in Las Vegas in 2010 and 2011. During that time period, Luciano befriended 48-year-old James McMillan. After relocating to Tampa in 2011, Luciano fraudulently represented to McMillan that she had a pending settlement award from the U.S. Department of Veterans Affairs and that she would share the settlement award with McMillan if he provided her money to pay fees, interest, and other costs related to obtaining the settlement award. In fact, although she served briefly in the U.S. Army and received some benefits from the U.S. Department of Veterans Affairs for a non-military service related disability, Luciano was not entitled to any large monetary award or settlement.
In July 2013, Luciano mailed McMillan a fake promissory note granting him an interest in the purported settlement award. McMillan in turn used his position as a controller at a large real estate investment business to embezzle and steal approximately $1.3 million from the business and its investors. He mailed Luciano numerous envelopes and packages containing the stolen money, which Luciano used for gambling and personal expenses.
On May 2, 2017, McMillan pleaded guilty to wire fraud in a separate case and is pending sentencing before U.S. District Judge Gordon.
The case was investigated by the FBI with assistance from the Offices of Inspectors General for the U.S. Department of Housing and Urban Development and the U.S. Department of Veterans Affairs. Assistant U.S. Attorney Patrick Burns prosecuted the case.
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Northern Nevada Hospital Physician Pleads Guilty to Unlawful Distribution of Opioid PrescriptionsRead the Press Release
RENO, Nev. – The Vice Chief of Staff for Humboldt County General Hospital in Winnemucca, Nevada, pleaded guilty Tuesday to illegally writing prescriptions for dangerous and addictive narcotics, such as the opioids Oxycodone and Hydrocodone, without a medical purpose, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada.
“Federal law enforcement in Nevada is helping to stem the rising tide of illicit prescriptions in the state,” said U.S. Attorney Trutanich. “We remain committed to investigating and prosecuting doctors who abuse their position of trust and fuel the opioid epidemic.”
Dr. Shouping Li, 57, of Winnemucca, pleaded guilty to distribution of a controlled substance, specifically Oxycodone and Hydrocodone. He is a licensed physician specializing in family medicine with a concentration in cardiovascular disease. United States District Judge Miranda Du accepted the guilty plea.
Dr. Li admitted that between August 2015 and February 2018, he prescribed Oxycodone and Hydrocodone, both opioid pain medications, to 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.
At the June 10, 2019, sentencing hearing, Dr. Li faces the maximum penalty of 20 years in prison and a fine of $1,000,000.
The case is being 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 U.S. Attorney Sue Fahami is prosecuting 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, call the DEA at 1-877-RX-Abuse (792-2873) or contact the FBI at tips.fbi.gov.
For information about the harmful effects of illicit drug use, visit www.JustThinkTwice.com for teens and www.GetSmartAboutDrugs.com for parents, educators, and caregivers.
The Opioid Fraud and Abuse Detection Unit is a program that utilizes data to help combat the devastating opioid crisis. The District of Nevada was selected as one of 12 districts nationally to participate in the pilot program. Since its formation, more than seven doctors and medical professionals have been prosecuted in the District of Nevada. The District of Nevada has assigned an experienced prosecutor that focuses solely on investigating and prosecuting health care fraud related to medical professionals who prescribe opioids, that unlawfully divert of dispense prescription opioids for illegitimate purposes.
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Las Vegas Man Sentenced to 12 Years in Prison for Receipt of Child PornographyRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was sentenced today for receiving and distributing over 400 images and 22 videos of child pornography, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division.
Adam Burley, 26, was sentenced to 144 months in federal prison and lifetime supervised release by U.S. District Judge Kent J. Dawson. He previously pleaded guilty to receipt or distribution of child pornography.
In July 2016, Burley uploaded eight photos of child pornography from his cell phone to the website Chatango. Law enforcement determined the images were uploaded from Burley’s apartment. During the execution of a search warrant at his apartment, he admitted to law enforcement that he uploaded child pornography to the website and he received child pornography on his phone. A forensic examination of his phone revealed over 400 sexually explicit images and videos.
The case was investigated by the FBI. Assistant U.S. Attorney Christopher Burton prosecuted the case.
If you have information regarding possible child sexual exploitation, make a report to the National Center for Missing and Exploited Children (NCMEC) by calling the 24-hour hotline at 1-800-THE-LOST (1-800-843-5678) or by making a report at www.cybertipline.com.
This case was brought as part of Project Safe Childhood, a nationwide initiative 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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Drug Traffickers Sentenced to A Total of 16 Years in PrisonRead the Press Release
RENO, Nev. – Two drug traffickers were sentenced today to a total of 16 years in federal prison after a traffic stop in Carson City for speeding led to the discovery of large quantities of methamphetamine and heroin in their car, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI.
“Those who deal highly addictive drugs, like methamphetamine and heroin, prey on the addictions of others and damage communities,” said U.S. Attorney Trutanich. “We were able to successfully prosecute this case thanks to our strong law enforcement partnerships.”
“Drug traffickers will continue to be the focus of the FBI’s Northern Nevada Safe Streets Gang Task Force because no one in our community should have to live in fear of the activity that drug trafficking brings to their neighborhoods,” said Special Agent in Charge Rouse.
Danny Lyle Jensen II, 39, and Kimberly Lopes, 37, both of Henderson, were sentenced to 130 months and 63 months, respectively, and five years of supervised release by U.S. District Judge Howard D. McKibben. They previously pleaded guilty to conspiracy to possess with intent to distribute and to distribute at least 500 grams of methamphetamine.
On December 6, 2017, a deputy with the Carson City Sheriff’s Office observed a car speeding and attempted to conduct a traffic stop of the vehicle. During the traffic stop, the deputy noticed Jensen and Lopes’ hands were shaking as they looked for the vehicle registration and insurance, they avoided eye contact, and they provided different cities when asked about their destination. The deputy noticed in plain view a spoon in the passenger door compartment and a roll of shrink wrap in the back seat, both are items often associated with drug use and classified as drug paraphernalia. During a search of the vehicle with a drug detection K9, a total of two kilograms of methamphetamine and a half pound of heroin were discovered concealed in packages in the interior firewall of the trunk.
The case was investigated by the FBI and the Carson City Sheriff’s Office. Assistant U.S. Attorney Jim Keller prosecuted the case.
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Project Safe Neighborhoods Prosecution Results in Significant Prison Sentence for Felon in Unlawful Possession of A Stolen FirearmRead the Press Release
LAS VEGAS, Nev. – A felon who shot a person with a loaded stolen semi-automatic pistol was sentenced today to a total of 57 months in federal prison, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI.
“DOJ’s Project Safe Neighborhoods Program is designed to take guns off our streets and make our communities safer,” said U.S. Attorney Trutanich. “This case demonstrates the dangers of local police work and importance of strong local and federal partnerships to protect the citizens of Nevada. Law enforcement will work together to enforce gun laws.”
“Today’s sentencing is yet another example of the result that comes from strong law enforcement partnerships,” said Special Agent in Charge Rouse. “The Criminal Apprehension Team (CAT) is a FBI-led, multijurisdictional task force consisting of the FBI, Las Vegas Metropolitan Police Department, Henderson Police Department, and North Las Vegas Police Department, that targets the most violent fugitives.”
Steven Lamar Reed, 28, of Las Vegas, previously pleaded guilty to one count of felon in possession of a firearm. He has prior felony convictions in California including robbery and felon in possession of a firearm. In addition to the prison term, U.S. District Judge Kent J. Dawson sentenced him to three years of supervised release.
On April 11, 2017, members of the FBI’s CAT attempted to arrest Reed for his involvement in an earlier shooting. He also had an arrest warrant for a felony parole violation in California. When officers identified themselves and approached Reed at an apartment complex, he immediately fled, leading officers on a lengthy foot chase. Before climbing a wall in an attempt to evade arrest, a .45 caliber pistol fell from his waistband and the pistol was secured by law enforcement. This firearm had been previously stolen in a residential burglary and was used by Reed in the earlier shooting. Reed was taken into custody by law enforcement.
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Phillip N. Smith Jr. and Elham Roohani 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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Northern Nevada Tax Return Preparer Sentenced to Five Years in Prison for Tax Fraud Conspiracy and Theft of Elder Client's MoneyRead the Press Release
RENO, Nev. – A Winnemucca tax preparer was sentenced today to a total of five years in federal prison for his role in a tax return conspiracy, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Tara Sullivan for the IRS-Criminal Investigation.
“As tax season approaches, today’s sentence serves as a reminder that preparing or filing false tax returns is crime,” said U.S. Attorney Trutanich. “Our office will continue to work closely with the IRS to pursue justice when individuals attempt to evade tax obligations.”
“Mr. Bidegary used his knowledge as a former IRS employee to steal from his clients and the government,” said SAC Sullivan. “Mr. Bidegary does not represent the integrity of IRS employees and IRS-Criminal Investigation will continue to prosecute cases that bring harm to both the community and the government.”
Thomas Michael Bidegary, 67, a former IRS employee who co-owned Winnemucca Tax and Bookkeeping Service, a tax preparation and bookkeeping services business, previously pleaded guilty to conspiracy to commit tax fraud and theft of government money, related to two separate criminal indictments. In addition to the prison term, U.S. District Judge Robert C. Jones sentenced Bidegary to three years of supervised release.
Bidegary conspired with a co-defendant to prepare and file fraudulent individual income tax returns on behalf of clients. Beginning in at least 2009 and continuing through December 2014, he advised clients that by making small “investments” into various businesses he owned, the clients could decrease their annual taxable income and increase their tax refunds. As part of the scheme, after receiving checks from clients, Bidegary would prepare false tax forms for the corresponding tax year that included large fictitious business losses in order to reduce the client’s taxable income and obtain a larger refund than what the client was entitled to receive. As a result of the false tax returns, he caused a tax loss of approximately $259,880.
In a separate criminal case filed against Bidegary, he prepared and filed an unauthorized tax return on behalf of an elderly woman in Battle Mountain, Nevada. After receiving the $12,500 tax refund, he deposited the check into a bank account which was then converted for his own personal use.
The case was investigated by the IRS-Criminal Investigation. The case was prosecuted by Assistant U.S. Attorney Sue Fahami.
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North Las Vegas Man Sentenced to 10 Years in Prison for Distributing Child Pornography on Social Media SiteRead the Press Release
LAS VEGAS, Nev. – A North Las Vegas resident was sentenced to 10 years in federal prison for distributing images of child pornography to his Tumblr account, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada.
Johne Lewis Owens II, 43, of North Las Vegas, previously pleaded guilty to one count of distribution of child pornography. In addition to the prison term, U.S. District Judge Jennifer A. Dorsey ordered a lifetime term of supervised release.
Between November 2015 and May 2016, Owens admitted that he uploaded numerous images of child pornography to his Tumblr account. On May 14, 2017, Owens’ wife saw sexually explicit and sexual abuse photos of him and a child on his Tumblr account. His wife alerted law enforcement and filed a report. A search warrant on Owens’ Tumblr account revealed his account is “open” and may be viewed by the public. He confessed to taking photos and videos of sex acts with the child, then uploading them onto his Tumblr account thereby distributing the images over the internet.
The case was investigated by the FBI and the North Las Vegas Police Department. Assistant U.S. Attorney Elham Roohani prosecuted the case.
If you have information regarding the sexual exploitation of children, contact the National Center for Missing & Exploited Children Cyber Tipline 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 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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Former Las Vegas Valley Water District Employee Sentenced to Four Years in Prison for $6.7 Million Ink/Toner Cartridge Scheme and Tax EvasionRead the Press Release
LAS VEGAS, Nev. – Jennifer J. McCain-Bray, aka JJ McCain, was sentenced today to 51 months in federal prison for committing mail fraud and tax evasion as part of a scheme to defraud the Las Vegas Valley Water District (LVVWD) of over $6.7 million, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada, Special Agent in Charge Aaron C. Rouse for the FBI, and Special Agent in Charge Tara Sullivan for the IRS-Criminal Investigation.
“Public service is a public trust,” said U.S. Attorney Trutanich. “Today’s sentencing demonstrates this office’s commitment to investigate and prosecute individuals who violate that trust by misusing their authority to benefit themselves at the expense of the community.”
“Ms. McCain-Bray deceived the Las Vegas Valley Water District by stealing over $6.7 million through her calculated scheme that falsely represented purchases. She then used the ill-gotten gains to fund a lavish lifestyle,” said SAC Rouse. “The FBI will continue working with our partners to investigate fraud and hold individuals in a position of trust accountable when failing to comply with the law.”
“Ms. McCain-Bray stole from our community, using Nevada taxpayer money to enrich her own life and then lied to the IRS,” said SAC Sullivan. “IRS-Criminal Investigation will continue to hold government employees to the highest standard.”
McCain-Bray, 43, of Las Vegas, previously pleaded guilty to one count of mail fraud and one count of subscribing to a false tax return. In addition to the prison term, U.S. District Judge Kent J. Dawson ordered her to pay $6,715,531 as part of a criminal forfeiture money judgment.
McCain-Bray worked as a purchasing analyst for the LVVWD and she was responsible for transmitting orders and payments to vendors when particular products were requested from LVVWD departments and employees. She admitted that between January 1, 2007 to about December 7, 2015, she devised a scheme to defraud the LVVWD by falsely representing that purchases of ink and toner cartridges were for the LVVWD, when she knew that the products were actually purchased for a New Jersey company which received and then resold the cartridges for its own profit. McCain-Bray instructed the vendor to ship the ink and toner cartridges from California and other locations to her at her LVVWD office in Las Vegas. She then relabeled the packages and shipped them to the New Jersey company. In exchange, the New Jersey company transferred money to McCain-Bray’s personal PayPal account. Financial records indicate that McCain-Bray used the fraud proceeds for personal expenses and purchases, including extensive home remodeling and improvements, trips, gifts to family members and friends, and other lifestyle expenses. Between 2007 and 2015, McCain-Bray fraudulently purchased approximately $6.7 million in ink and toner cartridges with LVVWD funds.
McCain-Bray also failed to report her profits from the scheme on her personal tax returns for tax years 2011 to 2015. For those years, she failed to report a total of $2,339,156 in taxable income to the IRS.
The case was investigated by the FBI and the IRS-Criminal Investigation. Assistant U.S. Attorney Patrick Burns prosecuted the case.
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Las Vegas Man Convicted of Two Jewelry Store Armed RobberiesRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was convicted Wednesday by a federal jury of all criminal charges for his role in planning and participating in the armed robbery of two jewelry stores in the Las Vegas community in January 2017, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Brian Wright, 34, was found guilty of two counts of conspiracy to interference with commerce by robbery, two counts of interference with commerce by robbery, and two counts of brandishing a firearm during and in relation to a crime of violence. United States District Judge Jennifer Dorsey scheduled a sentencing hearing for March 18, 2019. Wright, who represented himself at trial, faces a maximum statutory penalty of 20 years in prison and a fine of $250,000 on each robbery count. He faces a mandatory minimum of seven years in prison and a fine of $250,000 on the first firearm count to run consecutive to all other counts and a mandatory minimum of 25 years in prison on the subsequent firearm count to run consecutive to all other counts.
During the six-day jury trial, prosecutors introduced evidence proving that Wright planned and recruited multiple gunmen and getaway drivers to rob the Jared Gallery of Jewelry, located at 2110 N. Rainbow Blvd., on January 3, 2017, and the MJ Christensen jewelry store, located at 8980 W. Charleston Blvd., on January 13, 2017. During the Jared’s robbery, Wright provided a firearm to co-conspirator Deandre Nakita Brown to use during the robbery. Brown and co-conspirator Aquail Harris entered the Jared pointing their firearms towards employees and customers. One of the store customers was a father with his one and three-year old children in the store. The gunmen disarmed the security guard and stole over $850,000 worth of jewelry and watches. They delivered the stolen merchandise to a separate getaway vehicle driven by co-conspirators Kendareen Hudson and Safiyyah Christopher. Wright utilized police scanner apps to monitor police radio traffic after the robbery and relayed this information to his co-conspirators. However, Las Vegas Metropolitan Police Department officers found the females’ vehicle with the stolen merchandise. They arrested the two females and recovered all of the jewelry.
Ten days later, on January 13, 2017, Wright planned and participated in the robbery of the MJ Christensen jewelry store. Again, Wright recruited others to help him carry out the robbery. He recruited co-conspirator Carl Whitley to procure a getaway car and driver and Brown to serve as a gunman. Wright obtained Whitley’s gun and provided it to Brown to use in the robbery. They stole over $700,000 worth of jewelry and watches. Wright again utilized police scanner apps to monitor police radio traffic after the robbery and relayed this information to his co-conspirators. An off-duty officer outside the jewelry store, however, observed the robber get into a vehicle driven by co-conspirator Randy Jerousek and followed this car to the Suncoast Casino. The vehicle was quickly located parked at the casino with the stolen merchandise in it.
Co-conspirators Harris, Christopher, Hudson, Jerousek, Whitley, and Brown all previously pleaded guilty for their involvement in the armed robberies. Sentencing for Brown is set for February 25, 2019, sentencing for Whitley is set for January 22, 2019, sentencing for Jerousek is set for February 7, 2019, and sentencing for Christopher is set for January 14, 2019.
Wright was convicted earlier this year of Assault on a Federal Officer in violation of Title 18, United States Code, Section 111(a)(1) and (b). A jury found Wright guilty of that offense after hearing evidence that Wright attempted to flee his residence while law enforcement was attempting to execute a search warrant. In his haste to flee, Wright rammed his car into a law enforcement vehicle that a Task Force Officer was standing next two, nearly striking the Officer. Sentencing is set in that case on January 15, 2019. Wright also represented himself during that trial.
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Lisa Cartier-Giroux, Alexandra Michael, and Nadia Ahmed are prosecuting the case.
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Reno Man Sentenced to Seven Years in Prison for Receipt of Child PornographyRead the Press Release
RENO, Nev. – A Reno man who actively sought babysitting opportunities with families with young girls so he could potentially exploit the children was sentenced Tuesday to 84 months in prison to be followed by a lifetime of supervised release, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Aaron M. Quackenbush, 27, previously pleaded guilty to receipt of child pornography. He will be required to register as a sex offender under the Sex Offender Registration and Notification Act. United States District Judge Robert C. Jones presided over the sentencing hearing.
An investigation revealed that two IP addresses associated with Quackenbush’s residence were downloading child pornography. Quackenbush was interviewed by law enforcement. During his interview, Quackenbush admitted that he had downloaded videos and photos of child pornography for 12 years. When investigators sought to execute a search warrant at his home, Quackenbush deleted the Twitter application and files containing the child pornography from his cellphone. Law enforcement was able to recover his Twitter conversations which revealed dialogue with others about pornographic photos of young girls, Quackenbush’s desire to babysit young girls, as well as videos and photos of child pornography totaling 5,710 images as calculated under the sentencing guidelines.
The case was investigated by the FBI, the Washoe County Sheriff’s Office, and the Northern Nevada Cyber Center Crimes Against Children Task Force. Assistant U.S. Attorney Jim Keller prosecuted the case.
If you have information regarding the sexual exploitation of children, contact the National Center for Missing & Exploited Children Cyber Tipline 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 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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Utah Felon Sentenced to 16 Years in Prison for Armed Carjacking of Elderly WomanRead the Press Release
RENO, Nev. – A felon was sentenced today to 192 months in federal prison for an armed carjacking in a casino parking garage last year, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Andrew Brigman, 29, of Layton, Utah, previously pleaded guilty to use of a firearm during and in relation to a crime of violence. He has prior felony convictions for attempted theft, aggravated assault, and theft and assault by a prisoner, all in Utah. In addition to the prison term, U.S. District Judge Miranda M. Du sentenced him to five years of supervised release.
On July 6, 2017, Brigman and a child approached an elderly woman as she exited her car in a casino parking garage in Sparks. He pointed a semiautomatic handgun at the woman and demanded she hand over her car, phone, and credit cards. She gave him the key fob for her car. Brigman did not know how to operate the car with the key fob, so she had to show him how to start the car. He and the child left in the stolen vehicle. In an attempt to locate Brigman and the child, Sparks Police Department sent out media releases with composite sketches and images of the stolen vehicle. An Amber alert was also issued for the child.
On July 14, the Sparks Police Department received a tip that identified Brigman as the possible suspect of the armed carjacking. A few days later, the stolen vehicle was stopped for a traffic violation in Alamosa County, Colo. Brigman, a woman, and her four children were in the vehicle. The child who accompanied Brigman during the armed carjacking was found safe in the car. During a search of the vehicle, a .38 semiautomatic pistol was found in the glove box.
The case was investigated by the Sparks Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Megan Rachow prosecuted the case.
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California Resident Sentenced to Five Years in Prison for ATM Skimming Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A California man who possessed and used over 500 fraudulent credit and debit cards throughout the Las Vegas Valley was sentenced Thursday to 60 months in prison, announced U.S. Attorney’s Office Dayle Elieson for the District of Nevada.
Khachatur Zakaryan, 37, of California, pleaded guilty without the benefit of a plea agreement to one count of possession of 15 or more counterfeit or unauthorized access devices, four counts of producing, using, or trafficking in a counterfeit access device, and four counts of aggravated identity theft. In addition to the prison term, U.S. District Judge Andrew P. Gordon ordered him to serve a three year term of supervised release.
In February 2017, Zakaryan and unnamed coconspirators possessed counterfeit prepaid and gift debit cards encoded with stolen account numbers and account information. He drove to multiple ATM machines throughout the Las Vegas Valley to fraudulently withdraw cash advances from the stolen bank accounts. He fraudulently conducted cash outs at ATM machines at different locations within a short amount of time.
During a search of Zakaryan’s van and hotel rooms, officers found a total of 521 fraudulent cards. At the time of his arrest, officers found an additional nine fraudulent cards in Zakaryan’s possession.
At the time of this offense, Zakaryan was on probation in a state felony case for similar conduct with counterfeit credit/debit cards.
Zakaryan still faces pending charges for ATM skimming and fraud crimes in the state of North Carolina during the same approximate time period.
The case was investigated by the FBI’s Las Vegas Cyber Crimes Task Force and the Henderson Police Department. Assistant U.S. Attorney Patrick Burns prosecuted the case.
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Reno Man Sentenced to over 13 Years in Prison for Conspiracy to Distribute Large Amounts of MethamphetamineRead the Press Release
RENO, Nev. – A Reno resident was sentenced today to 160 months in prison in connection to a methamphetamine distribution conspiracy, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Jose Efrain Larios Rivera, 37, previously pleaded guilty to one count of conspiracy to possess with intent to distribute at least 500 grams of methamphetamine. He has a prior felony drug conviction in Reno. In addition to the prison term, U.S. District Judge Howard D. McKibben sentenced Rivera to five years of supervised release.
Rivera admitted that he conspired with others to distribute large amounts of methamphetamine throughout the Reno area. He offered to sell methamphetamine for $5,000 per pound or $500 per ounce. The investigation revealed that law enforcement intercepted 3,082 grams of pure methamphetamine during a traffic stop on July 27, 2017. That load of narcotics was being driven by co-defendant Jose Bautistia-Miranda, Rivera’s cousin, and two others, from Los Angeles into Nevada. The trio were pulled over for a traffic violation during which the vehicle was searched and the methamphetamine was recovered.
The July seizure did not stop Rivera’s drug distribution. Less than a month later, in August 2017, Rivera and his “cousins” had agreed to transport one kilogram of heroin from Southern California to Reno. Rivera agreed to sell the kilogram of heroin to a buyer in Reno for $32,500. The defendant was arrested after he was stopped driving his truck traveling down Highway 395. He was traveling in tandem with another co-defendant, Leon Valdez, who was driving a separate car with the heroin. Rivera and Valdez were stopped when traveling to the arranged location for the negotiated sale. During the traffic stop on Valdez’s car, a K-9 alerted the deputy to the presence of drugs. A search of the load car revealed 915 grams of heroin. In the defendant’s truck, stopped in close vicinity of the load car on Highway 395, Rivera had a Taurus .45 pistol under the driver’s seat and a small amount of heroin in his pocket.
The case was investigated by the DEA and Washoe County Sheriff’s Office. Assistant U.S. Attorney Jim Keller prosecuted the case.
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Las Vegas Man Sentenced to Prison for Robbing Bank with A Fake BombRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man who told his apartment manager that he was going to rob a bank so he could pay his rent, and then robbed a bank with a fake bomb, was sentenced today to 46 months in prison and five years of supervised release, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Robert Lynn Dufloth, 65, pleaded guilty in January to robbing the Wells Fargo Bank located at 3800 Howard Hughes Parkway. United States District Judge Kent Dawson presided over the sentencing hearing.
On January 10, Dufloth handed a bank teller a note that said he was robbing the bank and to give him the money “and no one will get hurt.” He then showed the teller a device with a red button in his hand and threatened to press the button, implying by gestures that the button was a trigger for an explosive device. The teller put approximately $536 in an envelope. Dufloth left the bank with the stolen money.
Officers with the Las Vegas Metropolitan Police Department reviewed video surveillance of the robbery and canvased the area. Officers quickly identified Dufloth and learned he was a long-time resident at a nearby weekly rental complex. The manager of the property reported that when she confronted Dufloth earlier about late rent, he told her not to worry, that he would rob a bank. Between the time of the robbery and when the officers arrived at the weekly rental complex, Dufloth had paid his rent in cash. On January 11, after Dufloth was identified as the robber in a photo line-up, officers executed a search warrant at his residence. During the search, the officers found and seized the device used during the bank robbery.
Dufloth has a total of 10 previous felony convictions dating back to 1972, including a prior robbery conviction in 1980.
The case was investigated by the FBI and Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Dan Cowhig prosecuted the case.
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Three Nevada Family Members Plead Guilty to Conspiring to Steal More Than $2 Million in Tax RefundsRead the Press Release
Three individuals in Las Vegas, Nevada, pleaded guilty this week to conspiring to steal more than $2 million in tax refunds from the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Dayle Elieson for the District of Nevada.
Chanh V. Trinh, Cannedy Trinh, and Elizabeth Trinh each pleaded guilty to one count of conspiring to defraud the United States by fraudulently obtaining the payment of income tax refunds. Chanh V. Trinh also pleaded guilty to one count of aggravated identity theft involving the use of his deceased brother’s identity.
According to documents filed with the court, Chanh V. Trinh, Cannedy Trinh, and Elizabeth Trinh, residents of Las Vegas, conspired to file federal corporate and individual income tax returns reporting false income tax withholdings and payments, which fraudulently caused the IRS to issue income tax refunds. The Trinhs filed the fraudulent returns in the names of fictitious business entities, their own names, and the names of other individuals, including a long-deceased family member. Chanh V. Trinh prepared and filed the returns. All three defendants deposited or cashed the fraudulently obtained refund checks using bank accounts and check-cashing businesses in Las Vegas. The defendants regularly concealed the funds by purchasing cashier’s checks, which they used to obtain gambling chips at Las Vegas casinos. The conspiracy resulted in false claims of more than $6 million, and more than $2 million in fraudulent refunds paid out by the IRS.
United States District Court Judge James C. Mahan scheduled sentencing for all three defendants for April 10, 2019. Chanh V. Trinh will be sentenced to 102 months in prison under his plea agreement, if accepted by the court. Cannedy Trinh will be sentenced to 24 months in prison under his plea agreement, if accepted by the court. Elizabeth Trinh faces a maximum sentence of 10 years in prison under her plea agreement. Each defendant also faces a period of supervised release, restitution and monetary penalties.
Principle Deputy Assistant Attorney General Zuckerman and U.S. Attorney Elieson thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Tax Division 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.
Three Nevada Family Members Plead Guilty to Conspiring to Steal More Than $2 Million in Tax RefundsRead the Press Release
LAS VEGAS, Nev. - Three individuals in Las Vegas, Nevada, pleaded guilty this week to conspiring to steal more than $2 million in tax refunds from the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Dayle Elieson for the District of Nevada.
Chanh V. Trinh, Cannedy Trinh, and Elizabeth Trinh each pleaded guilty to one count of conspiring to defraud the United States by fraudulently obtaining the payment of income tax refunds. Chanh V. Trinh also pleaded guilty to one count of aggravated identity theft involving the use of his deceased brother’s identity.
According to documents filed with the court, Chanh V. Trinh, Cannedy Trinh, and Elizabeth Trinh, residents of Las Vegas, conspired to file federal corporate and individual income tax returns reporting false income tax withholdings and payments, which fraudulently caused the IRS to issue income tax refunds. The Trinhs filed the fraudulent returns in the names of fictitious business entities, their own names, and the names of other individuals, including a long-deceased family member. Chanh V. Trinh prepared and filed the returns. All three defendants deposited or cashed the fraudulently obtained refund checks using bank accounts and check-cashing businesses in Las Vegas. The defendants regularly concealed the funds by purchasing cashier’s checks, which they used to obtain gambling chips at Las Vegas casinos. The conspiracy resulted in false claims of more than $6 million, and more than $2 million in fraudulent refunds paid out by the IRS.
United States District Court Judge James C. Mahan scheduled sentencing for all three defendants for April 10, 2019. Chanh V. Trinh will be sentenced to 102 months in prison under his plea agreement, if accepted by the court. Cannedy Trinh will be sentenced to 24 months in prison under his plea agreement, if accepted by the court. Elizabeth Trinh faces a maximum sentence of 10 years in prison under her plea agreement. Each defendant also faces a period of supervised release, restitution and monetary penalties.
Principle Deputy Assistant Attorney General Zuckerman and U.S. Attorney Elieson thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Tax Division 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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Nevada Pain Management Doctor Pleads Guilty to Unlawful Distribution of OpioidsRead the Press Release
LAS VEGAS, Nev. – A Las Vegas pain management doctor pleaded guilty Monday in federal court for unlawfully prescribing opioids, announced U.S. Attorney Dayle Elieson of the District of Nevada.
Dr. Steven A. Holper, 67, pleaded guilty to distribution of a controlled substance. He was indicted in February of this year. United States District Judge Jennifer A. Dorsey accepted the guilty plea. A sentencing hearing was scheduled for March 19, 2019. The statutory maximum penalty for distribution of a controlled substance is 20 years in prison and a $1,000,000 fine.
Holper, who has been a licensed physician in Nevada since 1990, admitted that between July 2015 and March 2016, he unlawfully prescribed Fentanyl, Oxycodone, and Hydrocodone to his patients outside the proper standard of care, and without a legitimate medical purpose. He routinely prescribed these highly addictive opioids to patients who did not have a medical necessity for the prescriptions. Holper’s actions contributed to the opioid epidemic in Nevada and elsewhere.
In 2016, there were 408 opioid-related deaths in Nevada, according to the Nevada Department of Health and Human Services. In 2016, Nevada’s per capita prescription rate for opioids was 87/100 residents. Nevada ranked as the sixth highest state for the number of milligrams of opioids distributed per adult, according to a DEA study.
The case was investigated by the DEA, the FBI, the Office of Inspector General of the U.S. Department of Health and Human Services, and the Henderson Police Department. Assistant U.S. Attorney Kilby Macfadden is prosecuting 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, call the DEA at 1-877-RX-Abuse (792-2873) or contact the FBI at tips.fbi.gov.
For information about the harmful effects of illicit drug use, visit www.JustThinkTwice.com for teens and www.GetSmartAboutDrugs.com for parents, educators, and caregivers.
The Opioid Fraud and Abuse Detection Unit is a program that utilizes data to help combat the devastating opioid crisis. The District of Nevada was selected as one of 12 districts nationally to participate in the pilot program. The District of Nevada has assigned an experienced prosecutor that focuses solely on investigating and prosecuting health care fraud related to medical professionals who prescribe opioids, that unlawfully divert of dispense prescription opioids for illegitimate purposes.
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Felon Sentenced to over Six Years in Prison for Unlawful Possession of A FirearmRead the Press Release
LAS VEGAS, Nev. – A felon who was convicted of unlawful possession of a firearm that was discovered during a traffic stop was sentenced to 75 months in prison, announced U.S. Attorney Dayle Elieson for the District of Nevada.
In August, a jury convicted Omar Qazi, 31, of Las Vegas, of felon in possession of a firearm. In addition to the prison term, U.S. District Judge Andrew P. Gordon sentenced Qazi to three years of supervised release.
According to court documents and evidence presented during the three-day jury trial, a Las Vegas Metropolitan Police Department officer stopped Qazi for a traffic violation near East Harmon Avenue and Koval Lane. During the search of his vehicle, the officer found a loaded Smith & Wesson .22 caliber revolver, methamphetamine, and marijuana. Qazi, who represented himself, has a prior felony conviction in Nevada for battery with substantial bodily harm and he is prohibited from possessing a firearm. As a pro se defendant, Qazi filed over 100 motions before the case was brought to trial.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Alexandra Michael and Patrick Burns 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 Pharmacist Sentenced to Prison for Health Care Fraud ConspiracyRead the Press Release
LAS VEGAS, Nev. – A Las Vegas pharmacist was sentenced Monday by U.S. District Judge Richard F. Boulware II, to 14 months in prison and three years of supervised release for conspiring with others to commit health care fraud, announced U.S. Attorney Dayle Elieson for the District of Nevada. As part of his sentence, he was ordered to pay $3,749,121 in restitution.
Nelson M. Mukuna, 41, previously pleaded guilty to conspiracy to commit health care fraud and structuring transactions to evade reporting requirements. He was the owner and operator of Atlas Specialty Pharmacy which concentrated in specialty drugs.
The conspiracy was in place between July 2016 to December 2017. It started when Mukuna became friends with Robert Harvey, who in turn introduced him to co-conspirator Alejandro Incera, an Advanced Practice Registered Nurse. In November 2016, Mukuna and Incera conspired and agreed that Mukuna would provide Incera with Xeomin, a form of Botox injection, in exchange for Incera’s patient referrals to Atlas Pharmacy for their prescriptions. As their business relationship developed, Incera referred more patients to Atlas. By January 2017, Mukuna started paying Incera $100 cash for each patient referral. Soon after, Mukuna approached other providers and offered cash for their patient referrals. In November 2016, Incera introduced Mukuna to co-conspirator Leslie Kalyn who started engaging in the same kickback referral scheme. In January 2017, Mukuna agreed to pay his co-conspirators $200 per patient referral. The approximate kickback payments totaled $175,000.
In an effort to conceal the kickback scheme, Mukuna structured cash withdrawals from his business bank account in order to avoid a Currency Transaction Report from being generated. Domestic financial institutions, like banks, are required to file transaction reports for cash transactions exceeding $10,000 in a single day.
As a result of this prosecution, Atlas Pharmacy has closed and Mukuna has surrendered his pharmacy and DEA licenses.
The case was investigated by the FBI, the Office of Inspector General of the U.S. Department of Health and Human Services, and the Nevada Attorney General’s Office Medicaid Fraud Control Unit. Assistant U.S. Attorney Kilby Macfadden prosecuted the case.
The Opioid Fraud and Abuse Detection Unit is a program that utilizes data to help combat the devastating opioid crisis. The District of Nevada was selected as one of 12 districts nationally to participate in the pilot program. The District of Nevada has assigned an experienced prosecutor that focuses solely on investigating and prosecuting health care fraud related to medical professionals who prescribe opioids, that unlawfully divert of dispense prescription opioids for illegitimate purposes.
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Justice Department Awards More Than $16.7 Million to Support Victims of Las Vegas ShootingRead the Press Release
LAS VEGAS, Nev. – The Justice Department today announced that the Office of Justice Programs’ (OJP) Office for Victims of Crime (OVC) awarded more than $16.7 million in Antiterrorism and Emergency Assistance Program (AEAP) funding to aid survivors of the Oct. 1, 2017, mass shooting in Las Vegas, Nevada. Acting Attorney General Matthew Whitaker and U.S. Attorney Dayle Elieson for the District of Nevada made the announcement.
Fifty-eight people were killed and more than 600 physically injured when a man opened fire on the Route 91 Harvest Festival, an open-air music venue, from a hotel room on the 32nd floor of the Mandalay Bay hotel and casino on the Las Vegas strip. When officers located the gunman and entered the room, he was found dead with self-inflicted wounds. In June, the Department awarded over $2 million to support first responders in the aftermath of the shooting. In addition, earlier this month the Department announced a new $8.7 million grant to provide multi-disciplinary, scenario-based active shooter training to first responders across the country.
“This Department of Justice stands with our first responders and victims of crime," Acting Attorney General Matthew Whitaker said. "We have already provided $3 million to cover expenses for state and local law enforcement in Las Vegas and in Clark County following last October's horrific mass shooting. Today we take the next step of providing more than $16 million for the victims of that tragedy and for the first responders who came to the scene, to help pay for counseling, therapy, rehabilitation, trauma recovery, and legal aid. While we cannot undo the harm that has been done, this Department of Justice is doing what we can to help Las Vegas heal."
“Victims are a priority of the Department of Justice," said U.S. Attorney Elieson. "Our mission includes supporting programs and services that help victims in the immediate aftermath of crime and as they rebuild their lives. The U.S. Attorney’s Office, as an integral part of the Department of Justice, shares the commitment to support the victims of the Route 91 Harvest Festival, as well as the victims’ families, law enforcement, medical personnel, and the hundreds of others who helped the Festival attendees. The $16.7 million grant announced today is more support to our community members and first responders needing additional counseling, therapy, vocational rehabilitation, and trauma recovery. We have compassion for those affected and gratitude for those who are helping them. Together, we are Vegas Stronger.”
The funding, totaling $16,735,720, will assist victims of this incident, including ticket holders, concert staff, vendors, witnesses, law enforcement personnel, and other first responders. It also will support close family members, medical personnel, coroner’s staff, taxi drivers, and others who helped the concert attendees. The grant will defray the costs of counseling and therapy, vocational rehabilitation, and trauma recovery for victims and emergency responders. Funds will also help with legal aid and supplement the massive outlays incurred by the Nevada victim compensation program.
AEAP is a non-competitive solicitation specifically created to provide supplemental emergency and longer-term victim support to jurisdictions where a criminal mass violence or domestic terrorism incident occurred. OVC can award funding once local and state authorities have determined the costs associated with responding and have submitted a request for assistance.
For more information about AEAP, please visit: https://www.ovc.gov/AEAP/
The Office of Justice Programs, led by Principal Deputy Assistant Attorney General Matt M. Dummermuth, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP and its components can be found at: www.ojp.gov.
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Child Sex Crimes Offender Convicted for Possession, Receipt, and Distribution of Child PornographyRead the Press Release
LAS VEGAS, Nev. – A Las Vegas resident with an extensive criminal history of hands-on sex offenses against children was convicted by a jury Wednesday of possession, and receipt or distribution of child pornography, announced U.S. Attorney Dayle Elieson for the District of Nevada.
After a three-day jury trial, David Alan Cohen, 58, was found guilty of possession, and receipt or distribution of child pornography. He was previously arrested for a series of child sex offenses in New York and New Jersey. United States District Judge Andrew P. Gordon presided over the trial and set a sentencing hearing for March 7, 2019.
The investigation began after law enforcement received a Cybertip from the National Center for Missing and Exploited Children (NCMEC) that child pornography was uploaded onto ChatStep, an online chatroom. Law enforcement were able to obtain an address associated with the child pornography that was uploaded. As a result, law enforcement obtained and executed a search warrant at what later determined to be Cohen’s residence. Cohen was interviewed. He discussed his sexual proclivities, prior sex crimes, and admitted that he received child pornography files. A forensic examination of his computer and DVDs found inside the residence revealed files of child sexual exploitation. Eleven items were seized from the residence, resulting in the recovery of over 600 images and video of child pornography.
At the time of sentencing, because Cohen has a prior New York felony conviction for Second Degree Sodomy, he faces a mandatory minimum penalty of 15 years in prison. The maximum statutory penalty is 60 years in prison and a $500,000 fine.
The case was investigated by the FBI and Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Elham Roohani and Allison Reese are prosecuting the case.
If you have information regarding David Cohen, please contact the nearest FBI field office or local law enforcement. To remain anonymous, call Crime Stoppers at (702) 385-5555 or visit www.crimestoppersofnv.com, or contact the National Center for Missing & Exploited Children Cyber Tipline 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 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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President and CEO of Las Vegas Investment Company Convicted of $1.5 Billion Ponzi SchemeRead the Press Release
The former president and CEO of MRI International Inc. (MRI), a purported investment company and medical collections business located in Las Vegas, Nevada, and Tokyo, Japan, was convicted yesterday for his role in a $1.5 billion Ponzi scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Dayle Elieson of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division made the announcement.
After a five-week jury trial before Chief Judge Gloria Navarro of the U.S. District Court for the District of Nevada, Edwin Fujinaga, 72, of Las Vegas, was found guilty of eight counts of mail fraud, nine counts of wire fraud, and three counts of money laundering in connection with his Ponzi scheme. Sentencing is set for March 8, 2019. The jury returned the guilty verdict in under three hours.
Evidence presented during trial showed that from 2000 until 2013, Fujinaga fraudulently solicited over $1 billion in investments in MRI from over 10,000 Japanese residents, who wired their funds from Japan to bank accounts in Las Vegas under Fujinaga’s control. Fujinaga approved and disseminated marketing materials that promised investors that their funds would only be used for purchasing medical claims and that an escrow agent would ensure that MRI used investor funds for only that purpose. In truth, Fujinaga spent less than two percent of investor funds to purchase medical claims. Instead, Fujinaga used the vast majority of new investors’ funds to pay off old investors. He used the balance of investors’ funds for impermissible business and lavish personal expenses, such as a private jet; a mansion on a Las Vegas golf course; real estate in Beverly Hills, California wine country, and Hawaii; and luxury cars from Bentley, McLaren, and Bugatti. When the Japanese government revoked MRI’s license to market securities in April 2013, MRI owed its investors more than $1.5 billion.
The case was investigated by the FBI. The Criminal Division’s Office of International Affairs, the Securities and Exchange Commission, the Japanese Financial Services Agency, the Ministry of Justice of Japan and the Ministry of Foreign Affairs of Japan provided substantial assistance in this matter. The case is being prosecuted by Assistant Chief Albert Stieglitz, Trial Attorneys William Johnston and Danny Nguyen of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Tony Lopez of the District of Nevada.
President and CEO of Las Vegas Investment Company Convicted of $1.5 Billion Ponzi SchemeRead the Press Release
LAS VEGAS, Nev. – The former president and CEO of MRI International Inc. (MRI), a purported investment company and medical collections business located in Las Vegas, Nevada, and Tokyo, Japan, was convicted yesterday for his role in a $1.5 billion Ponzi scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Dayle Elieson of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division made the announcement.
After a five-week jury trial before Chief Judge Gloria Navarro of the U.S. District Court for the District of Nevada, Edwin Fujinaga, 72, of Las Vegas, was found guilty of eight counts of mail fraud, nine counts of wire fraud and three counts of money laundering in connection with his Ponzi scheme. Sentencing is set for March 8, 2019. The jury returned the guilty verdict in under three hours.
Evidence presented during trial showed that from 2000 until 2013, Fujinaga fraudulently solicited over $1 billion in investments in MRI from over 10,000 Japanese residents, who wired their funds from Japan to bank accounts in Las Vegas under Fujinaga’s control. Fujinaga approved and disseminated marketing materials that promised investors that their funds would only be used for purchasing medical claims and that an escrow agent would ensure that MRI used investor funds for only that purpose. In truth, Fujinaga spent less than two percent of investor funds to purchase medical claims. Instead, Fujinaga used the vast majority of new investors’ funds to pay off old investors. He used the balance of investors’ funds for impermissible business and lavish personal expenses, such as a private jet; a mansion on a Las Vegas golf course; real estate in Beverly Hills, California wine country, and Hawaii; and luxury cars from Bentley, McLaren and Bugatti. When the Japanese government revoked MRI’s license to market securities in April 2013, MRI owed its investors more than $1.5 billion.
The case was investigated by the FBI. The Criminal Division’s Office of International Affairs, the Securities and Exchange Commission, the Japanese Financial Services Agency, the Ministry of Justice of Japan and the Ministry of Foreign Affairs of Japan provided substantial assistance in this matter. The case is being prosecuted by Trial Attorneys William Johnston and Danny Nguyen of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Tony Lopez of the District of Nevada.
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Repeat Child Sex Offender Sentenced to 11 Years in Prison for Possession of Child PornographyRead the Press Release
LAS VEGAS, Nev. – A child sex offender residing in Las Vegas was sentenced Monday to 135 months in federal prison for possession of child pornography, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Randall Little, 63, pleaded guilty in August 2018, to one count of possession of child pornography. In addition to the prison term, U.S. District Judge James C. Mahan sentenced Little to lifetime supervision following his release from prison. He will also be required to register as a sex offender under the Sex Offender Registration and Notification Act (SORNA).
After receiving a Cybertip from the National Center for Missing and Exploited Children (NCMEC), law enforcement executed a search warrant at Little’s residence which yielded various electronic devices. When questioned by law enforcement, Little admitted that he possessed sexually explicit images of children and that he reads “intergenerational love stories” that describe romantic relationships between men and boys, and he confessed that he moderates at least 10 online communities where he and others share images of boys. A forensic examination of the recovered devices belonging to Little revealed he possessed over 600 images and videos of child pornography. He was previously convicted in June 2001, in Nevada, of five counts of possession of child pornography. Little faced additional penalties at sentencing because he was a repeat offender.
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 NCMEC’s CyberTipline 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 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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Nevada Cardiologist Pleads Guilty to Unlawful Distribution of Oxycodone and HydrocodoneRead the Press Release
RENO, Nev. – A northern Nevada cardiologist pleaded guilty today to distributing highly addictive prescription drugs Oxycodone and Hydrocodone to patients without a medical purpose, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Dr. Devendra I. Patel, aka Devendrakumar I. Patel, 59, of Elko, who owns and operates Northeastern Nevada Cardiology, was indicted by a grand jury in December 2017. United States District Judge Larry R. Hicks accepted the guilty plea.
The investigation revealed Patel contributed to the opioid epidemic by unlawfully prescribing opioids and other prescription narcotics to patients for financial gain. As part of his plea, Patel admitted that, between September 2015 and February 2016, he prescribed Oxycodone (such as OxyContin) and Hydrocodone (such as Norco) to patients without a legitimate medical purpose and outside the usual course of professional practice. These prescriptions were in direct violation of his duty as a long-term licensed medical doctor. His license was suspended upon his arrest in December 2017. Patel’s prescribing practices allowed him to see a high volume of patients and easily prescribe and sell the opioids, while not addressing any legitimate medical concerns of his patients.
Sentencing is scheduled for March 18, 2019. The statutory maximum penalty is 20 years in prison and a $1,000,000 fine.
The case was investigated by the FBI, DEA, Office of Inspector General of the U.S. Department of Health and Human Services, U.S. Secret Service, the Elko Combined Narcotics Unit, Elko Police Department, Elko County Sheriff’s Office, and the Nevada Department of Public Safety. Assistant U.S. Attorneys Kilby Macfadden and Sue Fahami are prosecuting the case.
According to the CDC, approximately 115 Americans die every day of an opioid-related overdose. In 2016, there were 408 opioid-related deaths in Nevada, according to the Nevada Department of Health and Human Services. In 2016, Nevada’s per capita prescription rate for opioids was 87/100 residents. Nevada ranked as the sixth highest state for the number of milligrams of opioids distributed per adult, according to a DEA study. From 2010 to 2016, opioid-related hospitalizations have increased by 136% in emergency room encounters and 84% in in-patient admissions. During this time-period, 85% of all opioid-related deaths in Nevada were deemed accidents, according to the National Institute on Drug Abuse Study for Nevada.
The Opioid Fraud and Abuse Detection unit is a program that utilizes data to help combat the devastating opioid crisis. The District of Nevada was selected as one of 12 districts nationally to participate in the pilot program. The District of Nevada has assigned an experienced prosecutor that focuses solely on investigating and prosecuting health care fraud related to medical professionals who prescribe opioids, that unlawfully divert of dispense prescription opioids for illegitimate purposes.
For information about the harmful effects of illicit drug use, visit www.JustThinkTwice.com for teens, and www.GetSmartAboutDrugs.com for parents, educators and caregivers. To report suspected opioid-related crimes, the public is encouraged to contact the DEA at www.deadiversion.usdoj.gov/tips_online.htm or the FBI at tips.fbi.gov.
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Henderson Woman Pleads Guilty to Distribution of Fentanyl Resulting in the Death of A PersonRead the Press Release
LAS VEGAS, Nev. – A Henderson woman pleaded guilty today to distributing fentanyl that resulted in the overdose death of a person in 2017, announced U.S. Attorney Dayle Elieson for the District of Nevada and Assistant Special Agent in Charge Daniel W. Neill for the DEA.
Tianna Christina Cordova, 35, pleaded guilty to one count of distribution of a controlled substance. She was charged by a superseding indictment in August, along with co-defendant Robert James Thornburg.
On June 21, 2018, law enforcement executed a search warrant at Cordova and Thornburg’s residence in Henderson. Law enforcement found varied amounts of oxycodone, hydrocodone, alprazolam, four firearms, and cash. She and Thornburg, neither of whom are doctors, conspired with each other to distribute oxycodone and amphetamine (Adderall) to individuals. Often Cordova would sell narcotics to individuals who contacted her via the internet, where she would post ads for sale using coded language for the availability of certain drugs. Cordova admitted that, on March 14, 2017, she unlawfully distributed a controlled substance in the form of prescription pills that contained fentanyl to an individual. That person ingested the pills which resulted in her death from multiple drug intoxication, namely from an overdose of fentanyl, acetyl fentanyl, and citalopram.
United States District Judge Richard F. Boulware II accepted the guilty plea and set a sentencing hearing for February 21, 2019. The maximum penalty is 20 years and a $1,000,000 fine.
Fentanyl is a synthetic opioid that is 80-100 times stronger than morphine and 50 times stronger than heroin. Street names include “China Girl,” “King Ivory,” and “Murder 8.” Fentanyl is added to heroin to increase its potency, or be disguised as highly potent heroin. Many users believe that they are purchasing heroin and actually don’t know that they are purchasing fentanyl – which often results in overdose deaths.
The case was investigated by the DEA, with assistance from the Clark County Coroner’s Office. Assistant U.S. Attorney Brandon C. Jaroch is prosecuting the case.
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Las Vegas Man Sentenced to Prison for Tax FraudRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was sentenced Thursday to 22 months in prison for evading to pay more than $3 million in taxes for his purported asset protection business and fraudulently concealing assets in a separate case, announced U.S. Attorney Dayle Elieson for the District of Nevada and Special Agent in Charge Tara Sullivan of the IRS-Criminal Investigation.
Richard C. Neiswonger, 67, previously pleaded guilty to one count of Conspiracy to Defraud the United States and two-counts of mail fraud. In a separate case, he pleaded guilty to Conspiracy to Commit Wire Fraud. In addition to the prison term, U.S. District Judge Jennifer A. Dorsey sentenced Neiswonger to pay $3,212,078 in restitution to the IRS.
From 1999 to mid-2006, Neiswonger, who was imprisoned, and his business partner, formed Asset Protection Group, Inc. (APG) in Nevada in late 1998. Neiswonger, along with his business partner and a certified public accountant, conspired to promote false and misleading business information. Consumers would purchase the APG “asset protection” program for typically $9,800 and become APG “consultants,” who would sell “asset protection” services to clients who wished to conceal assets from potential litigants and creditors, as well as government agencies. The service allowed clients to place funds in bank accounts in the name of nominee entities that could never be traced back to the clients themselves. In turn, APG “consultants” received a portion of the client’s fees. These nominee entity accounts and other fraudulent conveyances, such as so called “friendly liens,” were used to divert and hide income from the IRS. Over 70 APG clients using the APG system had collective IRS liabilities totaling approximately $14 million.
Neiswonger used clients’ funds for personal expenses to include credit card payments and payments on a Mercedes-Benz and Lexus.
In the separate case, Neiswonger, Neiswonger’s wife, and their attorney conspired to fraudulently convey approximately $1 million to the attorney so that it would be concealed from authorities.
The case was investigated by the IRS-Criminal Investigation. Assistant U.S. Attorney Patrick Burns prosecuted this case.
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Nevada Tax Return Preparer Sentenced to PrisonRead the Press Release
LAS VEGAS, Nev. - A Las Vegas tax return preparer was sentenced today to 37 months in prison for aiding and assisting in the filing of false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Dayle Elieson for the District of Nevada.
According to documents and information provided to the court, from 2009 through 2015, Ofelia Ronquillo prepared false income tax returns for clients of her business, A.R. Financial LLC and later AJRC Tax Services, in Las Vegas, Nevada. Ronquillo included multiple false items on her clients’ tax returns, including charitable contributions, capital loss deductions, energy tax credits, and unreimbursed employee expenses—such as business meals and transportation expenses. As a result, the returns reported that the clients owed thousands of dollars less in taxes than they would have owed without the false deductions and credits. As part of the plea agreement, Ronquillo admitted that the total tax loss resulting from her preparation and filing of false returns was more than $2.7 million.
In addition to the term of imprisonment, U.S. District Court Judge Andrew Gordon ordered Ronquillo to serve one year of supervised release and to pay restitution of $16,290.93.
“The Department of Justice will continue to hold tax return preparers, who willfully prepare and file fraudulent returns, accountable and to protect the United States Treasury from false refund claims,” said Principal Deputy Assistant Attorney General Zuckerman.
“Tax return preparers, who purposely prepare false tax returns to get high refunds are stealing directly from American taxpayers,” said Special Agent in Charge Tara Sullivan with IRS-CI. “Return preparer fraud is one of the top priorities for IRS-Criminal Investigation, and we will investigate these cases and prosecute those who steal from the American public.”
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Elieson commended special agents of Internal Revenue Service–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 and its enforcement efforts may be found on the division’s website.
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Las Vegas Man Sentenced to 17 Years in Prison for Armed Robbery of A Jewelry StoreRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man who was convicted of stealing more than $470,000 in cash and jewelry during an armed robbery was sentenced Thursday to 204 months in federal prison, announced U.S. Attorney Dayle Elieson for the District of Nevada.
After a four-day jury trial in March, Joshua Sadat Washington, 38, was convicted of 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 transportation of stolen goods. In addition to the prison term, U.S. District Judge Jennifer A. Dorsey ordered him to pay $334,791.51 in restitution.
The conviction was the result of an elaborate, but failed, robbery plot. The plot began on August 13, 2016, co-defendant Fedel Sakers, posing as a FedEx delivery driver with a package, entered Alfredo’s Jewelry in Las Vegas. Sakers pointed a gun at one employee, jumped over the display cases, and forced that employee and another employee to the floor. Washington entered the store and bound their hands with zip ties. During the robbery, Washington kept telling Sakers to “shoot those bitches,” referring to the victims. Washington dragged one of the victims by the hair and kicked her in the face when he became frustrated at the lack of money where he thought it should be. Washington placed the stolen jewelry and cash in garbage bags, then he and Sakers left the store.
Later on August 13, 2016, following the robbery, Washington mailed two packages containing the stolen jewelry to Miami, Florida. He addressed the packages to himself. A mail-carrier employee in Miami opened one package mistakenly believing it contained marijuana. When the employee noticed the package was filled with jewelry still containing price tags, he contacted law enforcement. Two days after the robbery additional packages were recovered in Miami in a storage locker rented by Washington. Washington mailed a third package two days after the robbery. Law enforcement arrested him when he attempted to collect the third package. A search of the vehicle Washington was driving at the time of his arrest revealed flight information showing he and Sakers flew from Las Vegas to Miami. A total of approximately $471,000 in cash and jewelry were stolen in the robbery.
Sakers was charged and pleaded guilty to interference with commerce by robbery and brandishing a firearm in furtherance of a crime of violence. He was sentenced to 16 years in prison and three years of supervised release.
The case was investigated by the FBI and Las Vegas Metropolitan Police Department.
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U.S. Attorney's Office and DEA Announce Significant Milestone During 16th National Prescription Take Back DayRead the Press Release
LAS VEGAS, Nev. – With the robust participation of Americans nationwide, the Drug Enforcement Administration (DEA) and its law enforcement partners have now surpassed its 10 million pound goal and collected nearly 11 million pounds of unused, unwanted, or expired prescription medications over the course of 16 successful DEA National Prescription Drug Take Back events. During the 16th semiannual event on October 27, DEA and federal, state, and local partners disposed of more than 900,000 pounds of prescription medications collected at nearly 6,000 sites across the country. Together with almost 5,000 local, state and federal partners, DEA collected and destroyed more than 457 tons of potentially dangerous leftover prescription drugs.
This brings the total amount of prescription drugs collected by DEA since the Fall of 2010 to 10,878,950 pounds, or 5439.5 tons.
Nevadans participating in Take Back Day turned in a total of 4,455 pounds of unwanted or expired prescription medications for safe and proper disposal at 24 sites throughout the state.
“The results of our most recent Take Back Day clearly demonstrate a need for this initiative as a tool in the fight against America’s opioid crisis,” said Acting Administrator Uttam Dhillon. “The success of this event is a direct reflection of DEA’s commitment to prevent drug addiction and overdose deaths in the U.S. Together, we are all helping to make a difference to keep our friends and families safe.”
“Take Back Day events continue to provide an opportunity for citizens to safely remove unused, unwanted, and expired prescription medications from their homes,” said U.S. Attorney Elieson. “Proper disposal of unused drugs saves lives and protects the environment. I am grateful to every Nevadan who cleaned out their medicine cabinets and to our law enforcement partners who participated.”
Nevada law enforcement agencies that participated during Take Back Day included: Carson City Sheriff’s Office; Washoe County Sheriff’s Office; Douglas County Sheriff’s Office; Reno Police Department; Sparks Police Department; University of Nevada, Reno Police Department; Fallon Police Department; Winnemucca Police Department; Las Vegas Metropolitan Police Department and the North Las Vegas Police Department.
National Prescription Drug Take Back Day events continue to remove opioids and other medicines from the nation’s homes, where they could be stolen and abused by family members and visitors, including children and teens.
DEA began putting on Take Back Day events when the public had no other way to appropriately dispose of their leftover painkillers and other potentially dangerous drugs. These events have been extremely successful not only in getting unused drugs out of the house, but also in raising awareness of their link to addiction and overdose deaths. Since DEA launched this program nine years ago, doctors are prescribing fewer painkillers; and law enforcement agencies, pharmacies, and others have installed permanent prescription drug drop boxes on-site, making drug disposal even more convenient.
Helping people to dispose of potentially harmful prescription drugs is just one way DEA is working to reduce the addiction and overdose deaths plaguing this country due to opioid medications.
Parents and teens are encouraged to educate themselves about the dangers of legal and illegal drugs by visiting DEA’s websites at www.justthinktwice.com and www.GetSmartAboutDrugs.com.
Complete results for DEA’s 16th National Prescription Drug Take Back Day are available at www.deatakeback.com. The next Take Back Day is April 27, 2019.
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Reno Man Convicted in Methamphetamine Trafficking ConspiracyRead the Press Release
RENO, Nev. – A jury convicted a Reno resident in connection to a drug trafficking conspiracy to distribute methamphetamine in the Reno and Sparks area, announced U.S. Attorney Dayle Elieson for the District of Nevada.
After a three-day trial, a jury convicted Edward Smith, aka “Smitty,” 53, of conspiracy to possess and distribute at least 50 grams of methamphetamine, illegal use of a communication facility, money laundering, distribution of at least 50 grams of methamphetamine, and distribution of at least five grams of methamphetamine.
As evidence elicited at trial revealed, Smith, an inmate at the Northern Nevada Correctional Center, arranged for his niece's ex-boyfriend, whom he referred to as his “nephew,” to sell methamphetamine to another inmate’s associate in the Reno community at a premium price. Specifically, in recorded prison calls from June 1, 2015, to July 24, 2015, Smith counseled his nephew about how to conduct the drug transactions with the associate. In these calls, he also told his nephew to send him a “whole one,” referencing an ounce of methamphetamine, “each time [the associate] comes.” His nephew distributed methamphetamine to the associate in Sparks, Nevada, with the last sale involving a pound of methamphetamine for $7,000. In subsequent calls, Smith discussed how to get methamphetamine to him in the prison and arranged a $1,500 wire transfer in another person’s name in order to facilitate that deal.
United States District Judge Howard D. McKibben scheduled a sentencing hearing for February 6, 2019. At the time of sentencing, Smith faces a minimum of 10 years in prison and a maximum of life imprisonment.
The Drug Enforcement Administration, with the assistance of the Nevada Department of Corrections, and the Washoe County Sheriff’s Office, investigated the case. Assistant U.S. Attorney James Keller is prosecuting the case.
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North Las Vegas Felon Pleads Guilty to Possession of A 12-Inch Pipe BombRead the Press Release
LAS VEGAS, Nev. – A felon who threatened to “blow up the house” pleaded guilty today to possession of a 12-inch pipe bomb, announced U.S. Attorney Dayle Elieson of the District of Nevada.
Christopher Michael Robinson, 46, of North Las Vegas, pleaded guilty to unlawful possession of a destructive device. He has multiple prior felony convictions in Clark County, Nevada, and Hawaii, including a previous conviction for possessing a pipe bomb.
On January 11, 2018, bomb technicians used a robot to remove a 12-inch pipe bomb from a North Las Vegas house. The house’s resident indicated that he had evicted Robinson for nonpayment of rent and that Robinson had in turn threatened to “blow up the house.” During an interview with law enforcement, Robinson admitted to constructing the pipe bomb and stated that he was currently on parole in Hawaii for previously manufacturing a pipe bomb.
United States District Judge Larry R. Hicks accepted the guilty pleas and scheduled a sentencing hearing for March 6, 2019. Robinson will face the statutory maximum penalty of 10 years in prison and a $250,000 fine.
The case is a joint investigation by the FBI, North Las Vegas Police Department, Las Vegas Metropolitan Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Las Vegas Fire & Rescue Bomb Squad. Assistant U.S. Attorneys Phillip N. Smith, Jr. and Linda Mott 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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Nevada District Court Permanently Enjoins 20 Defendants Connected to A Multi-Million Dollar Mail Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A federal court in Las Vegas, Nevada, permanently enjoined six individuals and 14 corporate entities from activities related to an alleged mail fraud scheme, the Department of Justice announced today.
In a complaint filed in February 2018, the United States alleged that the defendants mailed thousands of fraudulent solicitations each week. The solicitations purported to inform recipients that they had won large cash or prize packages, but needed to pay a fee to claim the winnings. The solicitations were styled as individual notices and stressed to recipients that they must return the requested fee quickly. According to the complaint, some of the solicitations contained what appeared to be handwritten notes congratulating the recipients on their good fortune, while others reassured recipients that the letters were not a scam. Individuals who sent the requested fees did not receive the expected prizes. The complaint alleged that the Las Vegas-based scheme defrauded consumers out of more than $10 million.
“Consumers should be able to open their mail without encountering false promises of wealth,” said Assistant Attorney General Joseph H. Hunt for the Department of Justice’s Civil Division. “The Department has and will continue to relentlessly pursue schemes like this one.”
“Some of these defendants constantly changed their schemes in attempts to stay one step ahead of the law,” said Delany DeLeon-Colon, Inspector in Charge for the U.S. Postal Inspection Service. “These results make clear that we will peel back the layers, find the individuals behind these schemes, and hold them to account.”
The complaint alleged that defendant Patti Kern orchestrated the activities of the other individual defendants, all of whom live in the Las Vegas area. The complaint alleged that defendants Edgar Del Rio, Sean O’Connor, and Epifanio Castro printed the solicitations; defendant Andrea Burrow opened and processed victim responses; and defendant Stephen Fennell managed the scheme’s lists of recipients. The solicitations were mailed under a plethora of company names, including 11 of the entities named as corporate defendants in the complaint.
The district court entered a default judgment against 11 defendants today and previously entered consent decrees against the nine other defendants named in the complaint. Those orders prohibit the defendants from mailing solicitations like those identified in the complaint, as well as from engaging in activities related to such mailings, including receiving, handling, or opening any victim mail responding to solicitations and using or benefiting from lists of victims who previously responded to solicitations. Additionally, the orders authorize the U.S. Postal Inspection Service to open mail that was detained by law enforcement and return payments to the scheme’s victims.
The matter was handled by Trial Attorney Jacqueline Blaesi-Freed of the Civil Division’s Consumer Protection Branch, in coordination with the United States Attorney’s Office for the District of Nevada and the United States Postal Inspection Service. Additional information on the original enforcement actions and Department of Justice’s efforts to combat elder fraud is at: https://www.justice.gov/opa/pr/justice-department-coordinates-nationwide-elder-fraud-sweep-more-250-defendants.
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U.S. Attorney Appoints District Election Officer to Lead District's Election Day ProgramRead the Press Release
LAS VEGAS, Nev. – United States Attorney Dayle Elieson announced today that Assistant United States Attorney (AUSA) Allison Reese has been appointed to serve as the District Election Officer (DEO) for the District of Nevada, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington. As DEO, AUSA Reese will lead the District’s efforts in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 6, 2018, general elections.
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
“Few things are more important than a citizen’s right to cast a ballot on Election Day without fear of interference or discrimination. Nevadans can be confident that the U.S. Attorney’s Office will work to protect the integrity of the election process,” said U.S. Attorney Elieson.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to make their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, U.S. Attorney Elieson stated that AUSA/DEO Reese will be working hand-in-hand with the FBI in this District while the polls are open. If there are complaints or concerns about Election Day, the public should contact the FBI who will have special agents in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The FBI Las Vegas field office can be reached at (702) 385-1281 or at TIPS.FBI.GOV.
United States Attorney Elieson said, “Ensuring free and fair elections depends in part on the electorate’s cooperation. Those who have information about discrimination or election fraud should immediately contact the U.S. Attorney’s Office or the FBI.”
Complaints about possible violations of the federal voting rights laws can also be made to the Civil Rights Division’s Voting Section in Washington, DC, by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
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Father and Son Sentenced to Prison for Armed Robbery Spree in 2017Read the Press Release
LAS VEGAS, Nev. – A father and son who stole nearly $10,000 during eight armed robberies, including two credit unions, in 2017, were sentenced today to federal prison, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Jeffrey Alan James, 53, and his son, Jessy Stewart James, 24, both of Las Vegas, each pleaded guilty in April to seven counts of Hobbs Act Robbery and one count of Bank Robbery. Jeffrey James was sentenced to 15 years in prison and Jessy James was sentenced to two years in prison. In addition to the prison term, U.S. District Judge Richard F. Boulware II, sentenced each defendant to five years of supervised release.
From January 19, 2017, to February 16, 2017, the father-son duo robbed six smoke shops and two credit unions at gunpoint. They stole a total of approximately $10,000 and Marlboro cigarettes. During the Silver State Schools Credit Union robbery, Jeffrey James pointed a BB gun revolver in the direction of a teller’s head. Meanwhile, Jessy James placed a suitcase on the counter and told another teller that if she followed their instructions she would not get shot. They stole approximately $4,000. The final robbery occurred at the America First Credit Union where Jessy James threatened a teller with a BB gun and presented a note that read, “This is a robbery, not a joke.” Jeffrey James acted as a getaway driver. They stole approximately $4,207.
Jeffrey James has previously been convicted in the District of Nevada for committing a string of bank and credit union robberies in Las Vegas. In a separate case, he was also previously convicted in state court in Las Vegas, Nevada, for committing a gunpoint robbery of a bar.
The case was investigated by the Henderson Police Department, the Las Vegas Metropolitan Police Department, and the FBI. Assistant U.S. Attorney Patrick Burns prosecuted the case.
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Las Vegas Man Pleads Guilty to Nearly $2 Million Business Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man pleaded guilty today to defrauding $1,855,475 from victims of a business fraud scheme, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Jihad Anthony Zogheib, 52, pleaded guilty without the benefit of a plea agreement to eight counts of wire fraud in connection to a fraud scheme. United States District Judge Andrew P. Gordon accepted the guilty pleas and scheduled a sentencing hearing on January 15, 2019, before U.S. District Judge Larry R. Hicks.
Zogheib admitted that, from about 2010, to about 2013, he devised a scheme to fraudulently obtain money from people by making false representations to them 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, he made false representations to a victim 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. He provided the victim with a fictitious bank record showing millions of dollars on deposit. Zogheib caused the victim to give him $548,000 to fund the companies. From November 2010 to about August 2013, Zogheib defrauded two 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 combined total $1,307,475. Zogheib immediately used the victims’ investment monies to fund his gambling habit and high-end lifestyle.
At the time of sentencing, the maximum penalty is 20 years in prison and a $250,000 fine. In addition, Zogheib faces a criminal forfeiture money judgment of $815,475.
The case was investigated by the FBI. Assistant U.S. Attorneys Patrick Burns and Steven Myhre are prosecuting the case.
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Indian Springs Man Sentenced for Violation of Endangered Species Act and Destruction of Property at Death Valley's Devils HoleRead the Press Release
LAS VEGAS, Nev. – An Indian Springs, Nevada, felon who fired a shotgun at the Devils Hole gate padlock, destroyed a surveillance camera and equipment, then harmed pupfish, an endangered species, was sentenced by U.S. District Judge Andrew P. Gordon today to 12 months and a day in prison and three years of supervised release, announced U.S. Attorney Dayle Elieson for the District of Nevada and Superintendent Mike Reynolds for Death Valley National Park.
Trenton Sargent, 28, pleaded guilty in July to one count of violation of the Endangered Species Act, one count of destruction of United States property, and one count of felon in possession of a firearm. He is a felon who is prohibited from possessing firearms and ammunition.
Devils Hole, a detached unit of Death Valley National Park, is located in Amargosa Valley, Nye County, Nevada, within a 40-acre parcel of National Park Service land surrounded by the Ash Meadows National Wildlife Refuge. Devils Hole is the only location in the world where Devils Hole pupfish exist in the wild. The pupfish is a Nevada state and federally listed endangered species. The Endangered Species Act was enacted to provide a program for the conservation of endangered and threatened species. In the spring of 2016, Devils Hole contained just 115 observable pupfish.
Sargent admitted that, on April 30, 2016, he and co-defendants Edgar Reyes and Steven Schwinkendorf, rammed their ATV into the fence surrounding Devils Hole, severely damaging the gate. Then, Sargent fired a Mossbert 500 shotgun at the padlock on the gate. After their attempts to open the gate were unsuccessful, the men scaled the fence. Once in the enclosed area, they destroyed a sensor center for cameras and equipment for the area, and destroyed a video surveillance camera belonging to the National Park Service. Then, Sargent stepped into the water onto the Devils Hole shallow shelf. In doing so, he smashed pupfish eggs and larvae pupfish during the peak spawning season for pupfish, who lay their eggs on the shallow shelf.
Reyes, 37, of North Las Vegas, and Schwinkendorf, 31, of Pahrump, previously pleaded guilty to destruction of government property and violation of the Endangered Species Act. They were each sentenced to one year probation.
The investigation was conducted by the National Park Service, the U.S. Fish and Wildlife Service, and the Nye County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Tony Lopez.
To learn more about the Devils Hole pupfish and recovery actions, go to www.nps.gov/deva/learn/nature/devils-hole.htm.
To report a suspicious or criminal activity in a national park site, call the National Park Service tip line at 1-888-653-0009 or visit https://www.nps.gov. For more information on the Department of Justice’s wildlife protection efforts, visit https://www.justice.gov/enrd.
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Doctor Sentenced to Prison for Role in Conspiracy to Distribute Hydrocodone and Oxycodone Without A Medical PurposeRead the Press Release
LAS VEGAS, Nev. – A Las Vegas, Nevada, doctor was sentenced today to 12 months and one day in prison for his role in a prescription drug conspiracy to distribute hydrocodone and oxycodone by allowing his co-conspirators to write illegal opioid prescriptions using his pre-signed prescription pad.
United States Attorney Dayle Elieson for the District of Nevada, Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Office, and Special Agent in Charge Christian J. Schrank for the Office of Inspector General of the U.S. Department of Health and Human Services, Los Angeles Region made the announcement.
Dr. Horace Paul Guerra IV, a former managing partner of Incera LLC, pleaded guilty in July to one count of conspiracy to distribute controlled substances. United States District Judge James C. Mahan presided over the sentencing hearing. As part of his sentence, Guerra surrendered his Nevada medical license.
Between January 1, 2018 to about May 3, 2018, Guerra conspired with his Incera LLC partners, Robert D. Harvey and Alejandro Incera, to distribute hydrocodone and oxycodone. As part of the conspiracy, he allowed his co-conspirators to use Incera LLC prescription pads to write illegal opioid prescriptions for patients he did not see and without a legitimate medical purpose. The pre-signed prescription pads included Guerra’s name, signature, and DEA number.
Both Harvey and Incera pleaded guilty in October, and are scheduled to be sentenced on January 10, 2019.
The case was investigated by the FBI, the Office of Inspector General of the U.S. Department of Health and Human Services, and the Nevada Attorney General’s Office Medicaid Fraud Control Unit. Assistant U.S. Attorney Kilby Macfadden prosecuted the case.
The Opioid Fraud and Abuse Detection Unit is a program that utilizes data to help combat the devastating opioid crisis. The District of Nevada was selected as one of 12 districts nationally to participate in the pilot program. The District of Nevada has assigned an experienced prosecutor that focuses solely on investigating and prosecuting health care fraud related to medical professionals who prescribe opioids, that unlawfully divert of dispense prescription opioids for illegitimate purposes.
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Felon Sentenced to 10 Years in Prison for Unlawful Possession of A Firearm and Ammunition After Threatening to Shoot A WomanRead the Press Release
LAS VEGAS, Nev. – A Las Vegas felon who was convicted in July of unlawful possession of a firearm and ammunition after threatening to shoot a woman during an altercation was sentenced today to 120 months in federal prison to be followed by three years of supervised release, announced U.S. Attorney Dayle Elieson for the District of Nevada and Special Agent in Charge Ray Roundtree for the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jacqueline Moore, 38, was found guilty by a jury of one count of felon in possession of a firearm and one count of felon in possession of ammunition. United States District Judge Kent J. Dawson presided over the three-day trial and sentencing hearing.
On October 27, 2017, Moore got into an altercation with a woman at a barbeque near “B” Street and Monroe Street in Las Vegas. The woman left the barbeque and Moore followed her to the Elk’s Lodge parking lot located at 600 West Owens Avenue. Moore confronted the woman and broke her car window and a tail light. She also threatened to shoot the woman. After Moore fled the scene, an eyewitness called the police who took her into custody a short time later. Officers found a .25 caliber pistol and a single round of .25 caliber ammunition in her purse and vehicle. Moore is prohibited from possessing a firearm and ammunition due to her prior felony convictions in Clark County for assault with a deadly weapon and attempted battery with substantial bodily harm.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Allison Reese and Phillip N. Smith, Jr. prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s 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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