District of Nevada
Press releases recorded for this federal judicial district.
Man Sentenced to Two Years in Prison for Conspiracy to Commit Tax Return Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A man was sentenced today to a total of 25 months in prison for his role in a $290,000 income tax return fraud conspiracy and for violation of his supervised release, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Walter Fabian Guzman, 39, of Pahrump, Nevada, previously pleaded guilty to one-count of conspiracy to defraud and one-count of violation under supervision. United States District Judge Kent J. Dawson also ordered him to pay restitution in the amount of $290,364 to the victims.
According to the plea agreement, Guzman admitted that, from January 1, 2010 to August 9, 2010, he conspired with co-defendants Felix Guzman and Judas Godina to defraud the IRS by submitting false income tax returns for customers. Guzman recruited customers by telling them that he could generate large returns on their individual income tax returns. In furtherance of the scheme, Guzman and others submitted false W-2 forms which reported additional income and withholdings, and Schedule E forms which falsely reported business losses.
The case was investigated by the IRS-Criminal Investigations. Assistant U.S. Attorney Kathryn Newman prosecuted the case.
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Former Las Vegas City Councilman Pleads Guilty to Wire FraudRead the Press Release
A former Las Vegas City Councilman pleaded guilty today to orchestrating a scheme to steal tens of thousands of dollars from his reelection campaign, announced Acting Assistant Attorney General John P. Cronan 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 Field Office.
Ricki Barlow, 46, of Las Vegas, Nevada, pleaded guilty to one count of wire fraud before U.S. District Judge Andrew P. Gordon of the District of Nevada. Sentencing is set for May 31.
“Rather than serving the community he was elected to represent, Ricki Barlow abused his position of trust and concocted a scheme to line his own pockets,” said Acting Assistant Attorney General Cronan. “Corruption at any level of the government harms the community by undermining the public’s confidence in their elected leaders and government. Because the effects of corruption are so corrosive, the Justice Department and our law enforcement partners are committed to vigorously investigating and prosecuting official corruption wherever it exists.”
“No one, including elected officials, is above the law,” said U.S. Attorney Elieson. “The defendant violated his oath of office and the public’s trust for his personal gain. The U.S. Attorney’s Office is committed to protecting the community and to the vigorous prosecution of all who seek to personally enrich themselves at the public’s expense.”
“The public trust must be something that is cherished by all who serve in positions of public office,” said Special Agent in Charge Rouse. “Sadly, Mr. Barlow abused his position for personal gain. The FBI will continue to root out public corruption where it exists. If you are in the community and are aware of an elected or appointed official engaging in illegal conduct, I encourage you to notify the FBI or U.S. Attorney’s Office.”
According to admissions made in connection with his guilty plea, Barlow was a candidate for re-election to the Las Vegas City Council in 2015, for which Barlow solicited donations from members of the Las Vegas community to his campaign, Ricki Barlow for City Council. According to Barlow’s admissions, the campaign treasurer managed the campaign finances through a bank account independent of Barlow, but Barlow maintained ultimate authority over the spending of campaign funds, including how much to pay campaign vendors. In order to secretly divert campaign funds to himself, Barlow admitted to orchestrating a kickback scheme whereby he hired friends and associates to work as campaign vendors, submit inflated invoices at his direction, and then kick back to Barlow approximately half of their campaign paychecks, typically in the form of cash. Barlow admitted to secretly diverting $49,125 in campaign funds for his own personal use and benefit through the kickback scheme.
Barlow also admitted to accepting an additional $17,000 in cash campaign contributions that he never reported to his campaign treasurer or transmitted to the campaign. Instead, Barlow admitted that he diverted the campaign contributions for his own personal use.
To conceal the scheme to steal campaign funds, Barlow admitted to causing his campaign to submit false campaign finance reports to the Nevada Secretary of State.
The FBI investigated the case. Trial Attorney Ryan J. Ellersick of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Daniel R. Schiess of the District of Nevada are prosecuting the case.
Former Las Vegas City Councilman Pleads Guilty to Wire FraudRead the Press Release
LAS VEGAS, Nev. – A former Las Vegas City Councilman pleaded guilty today to orchestrating a scheme to steal tens of thousands of dollars from his reelection campaign, announced Acting Assistant Attorney General John P. Cronan 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 Field Office.
Ricki Barlow, 46, of Las Vegas, Nevada, pleaded guilty to one count of wire fraud before U.S. District Judge Andrew P. Gordon of the District of Nevada. Sentencing is set for May 31, 2018.
“Rather than serving the community he was elected to represent, Ricki Barlow abused his position of trust and concocted a scheme to line his own pockets,” said Acting Assistant Attorney General Cronan. “Corruption at any level of the government harms the community by undermining the public’s confidence in their elected leaders and government. Because the effects of corruption are so corrosive, the Justice Department and our law enforcement partners are committed to vigorously investigating and prosecuting official corruption wherever it exists.”
“No one, including elected officials, is above the law,” said U.S. Attorney Elieson. “The defendant violated his oath of office and the public’s trust for his personal gain. The U.S. Attorney’s Office is committed to protecting the community and to the vigorous prosecution of all who seek to personally enrich themselves at the public’s expense.”
“The public trust must be something that is cherished by all who serve in positions of public office,” said Special Agent in Charge Rouse. “Sadly, Mr. Barlow abused his position for personal gain. The FBI will continue to root out public corruption where it exists. If you are in the community and are aware of an elected or appointed official engaging in illegal conduct, I encourage you to notify the FBI or U.S. Attorney’s Office.”
According to admissions made in connection with his guilty plea, Barlow was a candidate for re-election to the Las Vegas City Council in 2015, for which Barlow solicited donations from members of the Las Vegas community to his campaign, Ricki Barlow for City Council. According to Barlow’s admissions, the campaign treasurer managed the campaign finances through a bank account independent of Barlow, but Barlow maintained ultimate authority over the spending of campaign funds, including how much to pay campaign vendors. In order to secretly divert campaign funds to himself, Barlow admitted to orchestrating a kickback scheme whereby he hired friends and associates to work as campaign vendors, submit inflated invoices at his direction, and then kick back to Barlow approximately half of their campaign paychecks, typically in the form of cash. Barlow admitted to secretly diverting $49,125 in campaign funds for his own personal use and benefit through the kickback scheme.
Barlow also admitted to accepting an additional $17,000 in cash campaign contributions that he never reported to his campaign treasurer or transmitted to the campaign. Instead, Barlow admitted that he diverted the campaign contributions for his own personal use.
To conceal the scheme to steal campaign funds, Barlow admitted to causing his campaign to submit false campaign finance reports to the Nevada Secretary of State.
The FBI investigated the case. Trial Attorney Ryan J. Ellersick of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Daniel R. Schiess of the District of Nevada are prosecuting the case.
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Las Vegas Man Sentenced to More Than 12 Years in Prison for Receipt of Child PornographyRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man who was found guilty by a jury for receiving over 100 child pornography photos and 100 videos was sentenced today to 150 months in prison, announced U.S. Attorney Dayle Elieson for the District of Nevada, Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division, and Sheriff Joseph Lombardo for the Las Vegas Metropolitan Police Department.
Frankie Allen Peraza, 39, was convicted last year of one-count of receipt of child pornography. In addition to the prison term, Peraza was sentenced to lifetime supervision and is required to register as a sex offender under the Sex Offender Registration and Notification Act. United States District Judge Andrew P. Gordon presided over the four-day jury trial and sentencing hearing.
According to the indictment and other court documents, in March 2013, a detective with the Las Vegas Metropolitan Police Department, in an undercover capacity, used a peer-to-peer file-sharing program and identified an IP address as advertising for sharing numerous file names indicative of child pornography. During an interview with Peraza, the IP address owner, he admitted that he downloaded child pornography. After a forensic examination, law enforcement found 110 photos and 110 videos of child pornography on devices belonging to Peraza.
The case was a joint investigation by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Elham Roohani and Alexandra Michael prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
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Las Vegas Man Sentenced to 10 Years in Prison for Possession of A Stolen FirearmRead the Press Release
LAS VEGAS, Nev. – A convicted felon who carried a stolen 9mm handgun into an Alcoholics Anonymous meeting, then aimed the gun at a police officer was sentenced today to a total of 120 months in prison, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Marcus Richard Thomas, 36, of Las Vegas, was sentenced today after previously pleading guilty to one-count of possession of a stolen firearm. United States District Judge Jennifer A. Dorsey presided over the sentencing hearing.
According to the plea agreement, Thomas admitted that, on March 31, 2017, he brought a stolen Glock 9mm firearm to an Alcoholics Anonymous meeting. When approached by law enforcement, Thomas aimed the firearm at the police officer, who in turn fired at Thomas, striking him. Thomas admitted that he knew the firearm was stolen.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Phillip N. Smith Jr. prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions 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, Attorney General Sessions announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.
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Justice Department Coordinates Nationwide Elder Fraud Sweep of More Than 250 DefendantsRead the Press Release
WASHINGTON – Attorney General Jeff Sessions and law enforcement partners announced today the largest coordinated sweep of elder fraud cases in history. The cases involve more than two hundred and fifty defendants from around the globe who victimized more than a million Americans, most of whom were elderly. The cases include criminal, civil, and forfeiture actions across more than 50 federal districts. Of the defendants, 200 were charged criminally. In each case, offenders engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused losses of more than half a billion dollars. The Department coordinated its announcement with the FTC and state Attorneys General, who independently filed numerous cases targeting elder frauds within the sweep period.
Attorney General Sessions was joined in the announcement by FBI Acting Deputy Director David Bowdich; Chief Postal Inspector Guy Cottrell; FTC Acting Chairman Maureen Ohlhausen; and Kansas Attorney General and President of the National Association of Attorneys General Derek Schmidt.
“The Justice Department and its partners are taking unprecedented, coordinated action to protect elderly Americans from financial threats, both foreign and domestic,” said Attorney General Sessions. “Today’s actions send a clear message: we will hold perpetrators of elder fraud schemes accountable wherever they are. When criminals steal the hard-earned life savings of older Americans, we will respond with all the tools at the Department’s disposal – criminal prosecutions to punish offenders, civil injunctions to shut the schemes down, and asset forfeiture to take back ill-gotten gains. Today is only the beginning. I have directed Department prosecutors to coordinate with both domestic law enforcement partners and foreign counterparts to stop these criminals from exploiting our seniors.”
The actions charged a variety of fraud schemes, ranging from mass mailing, telemarketing and investment frauds to individual incidences of identity theft and theft by guardians. A number of cases involved transnational criminal organizations that defrauded hundreds of thousands of elderly victims, while others involved a single relative or fiduciary who took advantage of an individual victim. The schemes charged in these cases caused losses to more than a million victims.
“Winners. That’s what so many of the people who received these solicitations in the mail thought they were. But they’re not. They are victims of scams that Postal Inspectors have seen and investigated for decades. In fact, some of the same operators we encountered 20 years ago are back. But so are we. Yesterday, Postal Inspectors around the country executed search warrants on 14 locations that some of these same operators used to run their scams. We’re letting the American public know – and especially our vulnerable older Americans – that Postal Inspectors are working hard to protect them and ensure their confidence in the U.S. Mail,” said Chief Postal Inspector Cottrell.
“Over the last year, the FBI has initiated more than 200 financial crimes cases involving elderly victims who were devastated financially, emotionally, mentally and physically. Picking up the pieces of these fraud schemes can be equally as traumatizing for the caregivers of these elderly victims,” said Acting Deputy Director Bowdich. “The FBI reminds seniors and their caregivers to be vigilant. If any person believes they are the victim of, or have knowledge of fraud involving an elderly person, regardless of the loss amount, they should report it to the FBI.”
Actions against the Mass-mailing Fraud Industry
As part of the initiative, the Department’s Consumer Protection Branch, working with the U.S. Attorney’s Office for the Eastern District of New York and others, brought numerous cases this past week in a coordinated strike against more than 43 mass-mailing fraud operators, including criminal charges against six individuals. In addition, law enforcement agents executed 14 premises search warrants from Las Vegas to south Florida, served numerous asset seizure warrants, and coordinated with the Vancouver Police in Canada, who executed over 20 warrants, including search warrants on business premises.
“The defendants targeted elderly and vulnerable consumers both in the United States and abroad, using U.S. addresses and the U.S. mails to try to legitimize their fraudulent schemes,” said U.S. Attorney for the Eastern District of New York Richard P. Donoghue. “They sold false promises of life-changing prizes that never came true. We will pursue the perpetrators of these mail schemes wherever they are located, and hold them accountable.”
These recently filed cases particularly targeted transnational criminal actors who collectively defrauded at least a million victims out of hundreds of millions of dollars. Indeed, just one of the schemes prosecuted criminally by the Consumer Protection Branch operated from 14 foreign countries to cost American victims more than $30 million. Click here for map showing a transnational, single fraud scheme.
Mass-mailing fraud inflicts hundreds of millions of dollars in losses to elderly U.S. victims each year. Department prosecutors and U.S. Postal Inspectors have taken a comprehensive approach to combatting this fraud, disrupting and prosecuting individuals who manage the schemes, artists who draft the fraudulent solicitations, list brokers who supply victim lists, and individuals who collect victim payments. Click here for fact-sheet with cases on mass-mailing fraud.
Actions against other elder fraud schemes
Prosecutors across the country from the Criminal Division’s Fraud Section, the Consumer Protection Branch and the U.S. Attorney’s Offices have heeded the call to focus resources on elder fraud cases. Over 50 U.S. Attorney’s Offices and Department Components filed elder fraud cases in the last year. Some examples of the elder financial exploitation prosecuted by the Department include:
- “Lottery phone scams,” in which callers convince seniors that a large fee or taxes must be paid before one can receive lottery winnings;
- “Grandparent scams,” which convince seniors that their grandchildren have been arrested and need bail money;
- “Romance scams,” which lull victims to believe that their online paramour needs funds for a U.S. visit or some other purpose;
- “IRS imposter schemes,” which defraud victims by posing as IRS agents and claiming that victims owe back taxes;
- “Guardianship schemes,” which siphon seniors’ financial resources into the bank accounts of deceitful relatives or guardians.
Many of these cases illustrate how an elderly American can lose his or her life savings to a duplicitous relative, guardian, or stranger who gains the victim’s trust. The devastating effects these cases have on victims and their families, both financially and psychologically, make prosecuting elder fraud a key Department priority.
Public Education
The Department has partnered with Senior Corps, a national service program administered by the federal agency the Corporation for National and Community Service, to educate seniors and prevent further victimization. The Senior Corps program engages more than 245,000 older adults in intensive service each year, who in turn, serve more than 840,000 additional seniors, including 332,000 veterans.
Using its vast network operating in more than 30,000 locations, Senior Corps volunteers will communicate about elder fraud to potential victims across the country and will use their skills, knowledge and experience to educate their peers and caregivers about the most prolific types of schemes and how to avoid them. Click here for information on Senior Corps' efforts to reduce elder fraud.
Coordination with state officials
Kansas Attorney General Schmidt highlighted the cases filed by state Attorneys General targeting elder frauds within in the sweep period, and he emphasized efforts at the state level to combat elder abuse and protect seniors from fraud and exploitation. He encouraged all of the state Attorneys General to devote enforcement and public education resources to preventing financial exploitation of senior citizens.
Coordination with foreign law enforcement
Exceptional assistance from foreign law enforcement partners amplified the effectiveness of the Department’s initiative. The sweep announced today benefited greatly from the work of the International Mass-Marketing Fraud Working Group (IMMFWG), a network of civil and criminal law enforcement agencies from Australia, Belgium, Canada, Europol, the Netherlands, Nigeria, Norway, Spain, the United Kingdom and the United States. The IMMFWG is co-chaired by the U.S. Department of Justice and FTC, and law enforcement in the United Kingdom, and serves as a model for international cooperation against specific threats that endanger the financial well-being of each member country’s residents. Attorney General Sessions expressed gratitude for the outstanding efforts of the working group, including law enforcement action taken as part of the sweep by the Vancouver Police Department in Canada to halt mass mailing schemes that defrauded hundreds of thousands of elderly victims worldwide.
Elder fraud complaints
Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
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Jury Convicts Man of Bank RobberyRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man who was wanted by law enforcement in the District of Arizona for escaping from a Bureau of Prisons facility was found guilty by a jury yesterday of bank robbery, announced U.S. Attorney Dayle Elieson for the District of Nevada.
After a two-day trial, Richard Lee Canterbury, 68, was convicted of one-count of bank robbery. United States District Judge Kent J. Dawson presided over the trial. Sentencing is scheduled for May 30, 2018.
According to the indictment, on March 16, 2016, Canterbury entered a Nevada State Bank on Southern Highlands Parkway wearing a gray “fisherman” style hat, dark glasses, and a blue and white striped long sleeve shirt under a gray zip up vest, carrying a blue zip top bank bag. He approached a teller and showed a handwritten note which stated: “This Is A Robbery No Tricks Loose Bills Only Cooperate No One Gets Hurt Otherwise Everyone Dies.” The teller complied and placed approximately $1,901 and a GPS tracking device into the bag. Canterbury left the bank.
Soon after, using information from the GPS tracker and the description provided by the bank teller, officers with the Las Vegas Metropolitan Police Department located and stopped Canterbury’s vehicle. Officers located the stolen bank cash, the blue zip top bank bag, the handwritten note, and the tracker in his vehicle. Canterbury was still wearing the clothes that he wore during the robbery. He was arrested and taken into custody. Canterbury was serving a 46 month federal sentence for Felon in Possession of Firearms at the time when he escaped from the facility on January 27, 2016.
At the time of sentencing, Canterbury faces the statutory maximum penalty of 20 years in prison and a $250,000 fine.
The case was investigated by the FBI. Assistant U.S. Attorneys Lisa Cartier-Giroux and Jared L. Grimmer are prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions 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, Attorney General Sessions announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.
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North Las Vegas Man Indicted for Unlawful Possession of Pipe BombRead the Press Release
LAS VEGAS, Nev. – A previously convicted felon was charged today for possession of a 12-inch pipe bomb that was found in a North Las Vegas house, announced U.S. Attorney Dayle Elieson of the District of Nevada.
Christopher Michael Robinson, 46, of North Las Vegas, is charged with one-count of unlawful possession of a destructive device and one-count of felon in possession of a firearm. His initial appearance in court is scheduled for March 1, 2018, before U.S. Magistrate Judge Nancy J. Koppe.
According to the indictment and criminal complaint, on January 11, 2018, North Las Vegas Police Department officers requested assistance from the Las Vegas Metropolitan Police Department, the Las Vegas Fire & Rescue, and the FBI related to a pipe bomb in a 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.” Bomb technicians used a robot to remove a 12-inch pipe bomb from the house. After inspection, it was determined that the pipe contained match heads, a pyrotechnic powder, and BB pellets (for fragmentation). 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.
In addition to the current possession of a destructive device charge, Robinson is charged with being a former felon in possession of a destructive device after multiple prior felony convictions in Clark County, Nevada, and Hawaii.
If convicted, Robinson will face the statutory maximum penalty of 10 years in prison and a $250,000 fine per each count.
The case is a joint investigation by the FBI, the North Las Vegas Police Department, the Las Vegas Metropolitan Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Phillip N. Smith Jr. is prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions 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, Attorney General Sessions announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.
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Nevada Return Preparer Pleads Guilty to Filing More Than $2.7 Million in Fraudulent Tax ReturnsRead the Press Release
A Las Vegas, Nevada, tax return preparer pleaded guilty today to filing fraudulent 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, 62, prepared fraudulent income tax returns for clients through a business known as A.R. Financial LLC and later AJRC Tax Services, in Las Vegas, Nevada. Ronquillo included false items on her clients’ tax returns, including bogus charitable contributions, capital losses, and unreimbursed employee expenses—such as meals and transportation expenses, as well as claimed inflated refunds to which her clients were not entitled. Ronquillo admitted that she caused a tax loss of more than $2.7 million.
U.S. District Court Judge Andrew P. Gordon scheduled sentencing for May 17. Ronquillo faces a statutory maximum sentence of three years in prison for each count, as well as a period of supervised release, restitution and monetary penalties.
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.
dditional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Nevada Return Preparer Pleads Guilty to Filing More Than $2.7 Million in Fraudulent Tax ReturnsRead the Press Release
LAS VEGAS, Nev. – A Las Vegas, Nevada, tax return preparer pleaded guilty today to filing fraudulent 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, 62, prepared fraudulent income tax returns for clients through a business known as A.R. Financial LLC and later AJRC Tax Services, in Las Vegas, Nevada. Ronquillo included false items on her clients’ tax returns, including bogus charitable contributions, capital losses, and unreimbursed employee expenses—such as meals and transportation expenses, as well as claimed inflated refunds to which her clients were not entitled. Ronquillo admitted that she caused a tax loss of more than $2.7 million.
U.S. District Court Judge Andrew P. Gordon scheduled sentencing for May 17. Ronquillo faces a statutory maximum sentence of three years in prison for each count, as well as a period of supervised release, restitution and monetary penalties.
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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Man Sentenced to Eight Years in Prison for Conspiracy to Distribute Ecstasy and MethamphetamineRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was sentenced today to 97 months in prison for his role in a conspiracy to distribute 7,000 pills of MDMA, a synthetic drug commonly known as Ecstasy, and methamphetamine, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Jordan Raeshaun Cambridge, 26, pleaded guilty on Sept. 6, 2017, to one count of conspiracy to distribute MDMA and methamphetamine. In addition to the prison term, U.S. District Judge Kent J. Dawson sentenced him to four years of supervised release.
According to the plea agreement, Cambridge admitted that he joined a conspiracy with others to distribute MDMA and methamphetamine for financial gain. He sold approximately 7,000 MDMA pills for $21,000. At the time of his arrest during a drug transaction, Cambridge had approximately 5,600 transformer-shaped MDMA pills and 1.5 grams of marijuana in his possession. During the execution of a search warrant of Cambridge’s residence in North Las Vegas, law enforcement found 4,997 MDMA pills, 267 grams of MDMA residue, 221.9 grams of methamphetamine, 201.4 grams of marijuana, a Rossi .38 caliber revolver, and a Raikal semi-automatic .380 handgun.
The case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Brandon Jaroch.
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Las Vegas Doctor Arrested and Charged with 29-Counts of Unlawful Distribution of Fentanyl and Health Care FraudRead the Press Release
LAS VEGAS, Nev. – A pain management doctor practicing in Las Vegas was arrested today and charged with 29-counts of unlawful distribution of fentanyl and for committing health care fraud, announced Attorney General Jeff Sessions, U.S. Attorney Dayle Elieson of the District of Nevada, Assistant Special Agent in Charge Dan Neill for the DEA’s Las Vegas field office, Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division, and Special Agent in Charge Christian J. Schrank for the Office of Inspector General of the U.S. Department of Health and Human Services Office Los Angeles Region.
Dr. Steven A. Holper, 66, is charged in an indictment with seven-counts of distribution of Fentanyl, a controlled substance, and 22-counts of providing a false statement relating to a health benefit program.
Fentanyl is a powerful synthetic opioid painkiller that is 100 times more potent than morphine and 40 to 60 times more potent than 100% pure heroin. Fentanyl is available in various forms, including Subsys. Subsys is only available through the Transmucosal Immediate-Release Fentanyl (TIRF) Risk Evaluation and Mitigation Strategy (REMS) Access program. The only FDA-approved indication for TIRF medicines are for use to manage breakthrough pain in adults with cancer. Dr. Holper routinely prescribed Subsys for his patients without cancer.
According to allegations contained in the indictment, which was unsealed today, from about July 19, 2015 through March 12, 2016, Holper allegedly prescribed Subsys to a patient without a legitimate medical purpose and outside the usual course of professional practice. The indictment further alleges that, from about November 21, 2013 through March 24, 2017, Holper knowingly made false statements to Medicare and private health insurance companies. Dr. Holper prescribed Subsys for patients without cancer and falsely represented 22 patients were cancer patients with breakthrough cancer pain, who were opioid tolerant and eligible for Subsys.
"Our great country has never before seen the levels of addiction and overdose deaths that we are suffering today. Sadly, some trusted medical professionals like doctors, nurses, and pharmacists have chosen to violate their oaths and exploit this crisis for cash—with devastating consequences. Our goals at the Department of Justice for 2018 are to reduce the number of opioid prescriptions, the number of overdose deaths, and violent crime—which is often drug-related. That's why I created the Opioid Fraud and Abuse Detection Unit and sent 12 top prosecutors to opioid hotspots around the country: to help us find the medical fraudsters who are flooding our streets with drugs. These prosecutors are already issuing indictments from Pittsburgh to Las Vegas. I want to thank the DEA, FBI, the Department of Health and Human Services, and the Henderson, Nevada Police Department, and Assistant U.S. Attorney Kilby Macfadden for their hard work on this case. I am convinced that these efforts make drugs less available on the streets, send a message to criminals, and ultimately make our communities much safer," said Attorney General Sessions.
“This indictment is another example of the U.S. Attorney’s Office commitment to hold doctors accountable when they violate federal laws designed to protect the health and safety of patients. The U.S. Attorney’s Office will continue to work with law enforcement partners to safeguard the public from prescription drug and opioid abuse and to ensure medical doctors are prioritizing patients’ health above their personal financial gain,” said U.S. Attorney Elieson.
“The individual arrested today wholly neglected the public’s trust - he violated the Hippocratic Oath that all healthcare professionals vow to uphold when the respect of the profession is bestowed upon them,” said Assistant Special Agent in Charge Neill. “Deliberately prescribing addictive and dangerous opioids outside the course of legitimate medical practice is drug dealing, and DEA is committed to holding drug dealers accountable.”
“The accessibility of fentanyl and other deadly drugs are a threat to our communities,” said Special Agent in Charge Rouse. “Each and every day, the FBI and our partners in Nevada are working hard targeting distributors, who are consciously contributing to the appalling opioid crisis that is inflicting mayhem in neighborhoods all over the state of Nevada.”
“Dr. Holper is charged with needlessly prescribing one of the deadliest forms of opioids and defrauding U.S. taxpayers,” said Special Agent in Charge Schrank. “With our law enforcement partners we will continue our fight to bring these suspected criminals to justice and protect our communities.”
The statutory maximum penalty for distribution of a controlled substance is 20 years in prison and the maximum penalty for health care fraud is 10 years in prison.
An indictment merely alleges that crimes have been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The case is being investigated by the Drug Enforcement Administration, Federal Bureau of Investigation, 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, hydrocodone, etc., by doctors and pharmacies, call the DEA at 1-877-RX-Abuse (792-2873). 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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California Man Sentenced to 151 Months in Prison for Conspiracy to Commit Arson and ExtortionRead the Press Release
LAS VEGAS, Nev. – A California man who was convicted of conspiracy to burn down a local business and extortion was sentenced Thursday to 151 months in prison, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Joel Kenneth Ausbie, 53, of Fontana, California, was previously found guilty by a jury of one-count of conspiracy to commit arson and one-count of committing extortion by force or threat of injury. United States District Judge James C. Mahan presided over the three-day jury trial and the sentencing hearing.
According to the superseding indictment and other court documents, Ausbie recruited and paid co-defendant Joseph A. Strickland to discharge a firearm into Ausbie’s estranged common law wife’s parents’ home. He wanted to compel his estranged wife to return money that he believed belonged to him. Ausbie could not locate his estranged wife who was in hiding, and instead targeted her family members to obtain payment.
On October 20, 2015, at approximately 1:00 a.m., following Ausbie’s orders, Strickland went to the parents’ home and shot a revolver six times into the occupied residence. He then threw vice grips into a window with a note attached demanding that Ausbie’s estranged wife return the money to Ausbie. The note read: “…This is a warning! Ima touch everything you love in a vicious way! Return that money or continue to rest easy with your families’ blood on you hands… Give me my money! Ima kill kill kill and kill.”
Ausbie and co-defendant Calvin Robinson subsequently sent a series of text messages to the parents threatening that if the money was not returned to Ausbie, then they would be killed. Ausbie then recruited Strickland to set fire to the parents’ business, Las Vegas Kettle Corn & Special Events, LLC, in Henderson. Robinson provided Strickland with directions and a note for him to tape to the front window of the business after setting the fire. The note read: “I still don’t have my money. This is the last warning! Next time someone is going to be dead.”
On October 30, 2015, Strickland set fire to the business as directed and left the note. The business was heavily damaged by the fire and was permanently closed. Ausbie recruited Strickland to set another fire to the parents’ second store location at the Downtown Container Park on Fremont Street. However, law enforcement arrested Ausbie prior to him arranging payment for the arson, and, as a result, that arson did not occur.
Robinson, 42, of Pomona, Calif., pleaded guilty and was sentenced to 108 months in prison. Strickland, 35, pleaded guilty and was sentenced to 30 months in prison.
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Lisa Cartier-Giroux and Cristina D. Silva prosecuted the case.
To report a tip about suspicious arson activity contact the Bureau of Alcohol, Tobacco, Firearms and Explosives at 1-888-ATF-FIRE (283-3473) or visit www.reportit.com.
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Thirty-six Defendants Indicted for Alleged Roles in Transnational Criminal Organization Responsible for More than $530 Million in Losses from CybercrimesRead the Press Release
A federal indictment was unsealed today charging 36 individuals for their alleged roles in the Infraud Organization, an Internet-based cybercriminal enterprise engaged in the large-scale acquisition, sale, and dissemination of stolen identities, compromised debit and credit cards, personally identifiable information, financial and banking information, computer malware, and other contraband.
Following the return of a nine-count superseding indictment by a Las Vegas, Nevada, grand jury alleging racketeering conspiracy and other crimes, federal, state, local, and international law enforcement authorities arrested 13 defendants from the United States and six countries: Australia, the United Kingdom, France, Italy, Kosovo and Serbia.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Dayle Elieson of the District of Nevada, and Acting Executive Associate Director Derek N. Benner of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) made the announcement.
“Today’s indictment and arrests mark one of the largest cyberfraud enterprise prosecutions ever undertaken by the Department of Justice,” said Acting Assistant Attorney General Cronan. “As alleged in the indictment, Infraud operated like a business to facilitate cyberfraud on a global scale. Its members allegedly caused more than $530 million in actual losses to consumers, businesses, and financial institutions alike—and it is alleged that the losses they intended to cause amounted to more than $2.2 billion. The Department of Justice refuses to allow these cybercriminals to use the perceived anonymity of the Internet as a shield for their crimes. We are committed to working closely with our international counterparts to identify, investigate, and bring to justice the perpetrators of these crimes, wherever in the world they operate.”
“The U.S. Attorney’s Office is steadfastly committed to protecting America’s national and economic security,” said U.S. Attorney Elieson. “Criminals cannot hide behind their computer screens. We are working vigilantly with American and international law enforcement partners to identify and disrupt transnational cybercrime organizations, such as the Infraud Organization.”
“Criminal cyber organizations like Infraud threaten not just U.S. citizens but people in every corner of the globe,” said HSI Acting Executive Associate Director Benner. “The actions of computer hackers and identity thieves not only harm countless innocent Americans, but the threat they pose to our financial system and global commerce cannot be overstated. The criminals involved in such schemes may think they can escape detection by hiding behind their computer screens here and overseas, but as this case shows, cyberspace is not a refuge from justice. HSI will continue working with our law enforcement partners in this country and around the world to aggressively target cyber thieves to ensure the perpetrators face the full weight of the law.”
According to the indictment, the Infraud Organization was created in October 2010 by Svyatoslav Bondarenko aka “Obnon,” aka “Rector,” aka “Helkern,” 34, of Ukraine, to promote and grow interest in the Infraud Organization as the premier destination for carding—purchasing retail items with counterfeit or stolen credit card information—on the Internet. Under the slogan, “In Fraud We Trust,” the organization directed traffic and potential purchasers to the automated vending sites of its members, which served as online conduits to traffic in stolen means of identification, stolen financial and banking information, malware, and other illicit goods. It also provided an escrow service to facilitate illicit digital currency transactions among its members and employed screening protocols that purported to ensure only high quality vendors of stolen cards, personally identifiable information, and other contraband were permitted to advertise to members.
According to the indictment, Infraud members held defined roles within the organization’s hierarchy. “Administrators” managed day-to-day operation of and strategic planning for the organization, approved and monitored membership, and meted out punishments and rewards to members. “Super Moderators” oversaw and administered specific subject-matter areas within their expertise. “Moderators” moderated one or two specific sub-forums within their areas of subject-matter expertise. “Vendors” sold illicit products and services to Infraud members. Finally, “VIP Members” and “Members” used the Infraud forum to gather information and to facilitate their criminal activities. As of March 2017, there were 10,901 registered members of the Infraud Organization.
During the course of its seven-year history, the Infraud Organization inflicted approximately $2.2 billion in intended losses, and more than $530 million in actual losses, on a wide swath of financial institutions, merchants, and private individuals, and would have continued to do so for the foreseeable future if left unchecked.
The defendants indicted for their alleged roles in the Infraud Organization’s transnational racketeering conspiracy include:
- Svyatoslav Bondarkeno of Ukraine;
- Amjad Ali aka “Amjad Ali Chaudary,” aka “RedruMZ,” aka “Amjad Chaudary,” 35, of Pakistan;
- Roland Patrick N’Djimbi Tchikaya aka “Darker,” aka “dark3r.cvv,” 37, of France;
- Miroslav Kovacevic aka “Goldjunge,” 32, of Serbia;
- Frederick Thomas aka “Mosto,” aka “1stunna,” aka “Bestssn,” 37, of Alabama;
- Osama Abdelhamed aka “MrShrnofr,” aka “DrOsama,” aka “DrOsama1,” 27, of Egypt;
- Besart Hoxha aka “Pizza,” 25, of Kosovo;
- Raihan Ahmed aka “Chan,” aka “Cyber Hacker,” aka “Mae Tony,” aka “Tony,” 26, of Bangladesh;
- Andrey Sergeevich Novak aka “Unicc,” aka “Faaxxx,” aka “Faxtrod” of the Russian Federation;
- Valerian Chiochiu aka “Onassis,” aka “Flagler,” aka “Socrate,” aka “Eclessiastes,” 28, of Moldova;
- John Doe #8 aka “Aimless88;”
- Gennaro Fioretti aka “DannyLogort,” aka “Genny Fioretti,” 56, of Italy;
- Edgar Rojas aka “Edgar Andres Viloria Rojas,” aka “Guapo,” aka “Guapo1988,” aka “Onlyshop,” 27, of Australia;
- John Telusma aka “John Westley Telusma,” aka “Peterelliot,” aka “Pete,” aka “Pette,” 33, of Brooklyn, New York;
- Rami Fawaz aka “Rami Imad Fawaz,” aka “Validshop,” aka “Th3d,” aka “Zatcher,” aka “Darkeyes,” 26, of Ivory Coast;
- Muhammad Shiraz aka “Moviestar,” aka “Leslie” of Pakistan;
- Jose Gamboa aka “Jose Gamboa-Soto,” aka “Rafael Garcia,” aka “Rafael101,” aka “Memberplex2006” aka “Knowledge,” 29, of Los Angeles, California;
- Alexey Klimenko aka “Grandhost,” 34, of Ukraine;
- Edward Lavoile aka “Eddie Lavoie,” aka “Skizo,” aka “Eddy Lavoile,” 29, of Canada;
- Anthony Nnamdi Okeakpu aka “Aslike1,” aka “Aslike,” aka “Moneymafia,” aka “Shilonng,” 29, of the United Kingdom;
- Pius Sushil Wilson aka “FDIC,” aka “TheRealGuru,” aka “TheRealGuruNYC,” aka “RealGuru,” aka “Po1son,” aka “1nfection,” aka “1nfected,” 31, of Flushing, New York;
- Muhammad Khan aka “CoolJ2,” aka “CoolJ,” aka “Secureroot,” aka “Secureroot1,” aka “Secureroot2,” aka “Mohammed Khan,” 41, of Pakistan;
- John Doe #7 aka “Muad’Dib;”
- John Doe #1 aka “Carlitos,” aka “TonyMontana;”
- David Jonathan Vargas aka “Cashmoneyinc,” aka “Avb,” aka “Poony,” aka “Renegade11,” aka “DvdSVrgs,” 33, of San Diego, California;
- John Doe #2;
- Marko Leopard aka “Leopardmk,” 28, of Macedonia;
- John Doe #4 aka “Best4Best,” aka “Wazo,” aka “Modmod,” aka “Alone1,” aka“Shadow,” aka “Banderas,” aka “Banadoura;”
- Liridon Musliu aka “Ccstore,” aka “Bowl,” aka “Hulk,” 26, of Kosovo;
- John Doe #5 aka “Deputat,” aka “Zo0mer;”
- Mena Mouries Abd El-Malak aka “Mina Morris,” aka “Source,” aka “Mena2341,” aka “MenaSex,” 34, of Egypt; and
- John Doe #6 aka “Goldenshop,”aka “Malov.”
In addition, Novak and “Goldenshop” are charged with three counts each and “Deputat” and Musliu one count each of possession of 15 or more counterfeit and unauthorized access devices.
The superseding indictment is the result of an investigation conducted by the Las Vegas Office of Homeland Security Investigations; the Henderson, Nevada, Police Department; the Criminal Division’s Organized Crime and Gang Section; and the U.S. Attorney’s Office for the District of Nevada.
The international operation to dismantle the Infraud Organization would have been impossible without the significant efforts and timely cooperation of the Justice Department’s Office of International Affairs and International Organized Crime Intelligence and Operations Center; Interpol Rome; Interpol Tirana; the Italian National Police (Postal and Communications Police); the Australian Federal Police and the International Crime Cooperation Central Authority, Australian Government Attorney-General’s Department; the U.S. Diplomatic Security Service, Regional Security Office at U.S. Embassy Tirana, Albania; the City of London Police, DCPCU; the French Ministry of Justice, the Paris Prosecutor, L’Office Central de Lutte contre la Criminalité liée aux Technologies de l’Information et de la Communication; the judicial and police authorities of the Grand Duchy of Luxembourg; the Directorate for Organized Crime Investigation, Sector for Cyber Crime Investigation; the Basic Prosecution Office Pristina, Kosovo; and the Ministry of Justice of the Republic of Kosova, Department for International Legal Cooperation and the Special Prosecution Office for High-Tech Crime of the Republic of Serbia.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Trial Attorneys Kelly Pearson and Chimaobim Nwachukwu of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Chad W. McHenry of the District of Nevada are prosecuting the case.
Thirty-Six Defendants Indicted for Alleged Roles in Transnational Criminal Organization Responsible for More Than $530 Million in Losses from CybercrimesRead the Press Release
LAS VEGAS, Nev. – A federal indictment was unsealed today charging 36 individuals for their alleged roles in the Infraud Organization, an Internet-based cybercriminal enterprise engaged in the large-scale acquisition, sale, and dissemination of stolen identities, compromised debit and credit cards, personally identifiable information, financial and banking information, computer malware, and other contraband.
Following the return of a nine-count superseding indictment by a Las Vegas, Nevada, grand jury alleging racketeering conspiracy and other crimes, federal, state, local, and international law enforcement authorities arrested 13 defendants from the United States and six countries: Australia, the United Kingdom, France, Italy, Kosovo and Serbia.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Dayle Elieson of the District of Nevada, and Acting Executive Associate Director Derek N. Benner of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) made the announcement.
“Today’s indictment and arrests mark one of the largest cyberfraud enterprise prosecutions ever undertaken by the Department of Justice,” said Acting Assistant Attorney General Cronan. “As alleged in the indictment, Infraud operated like a business to facilitate cyberfraud on a global scale. Its members allegedly caused more than $530 million in actual losses to consumers, businesses, and financial institutions alike—and it is alleged that the losses they intended to cause amounted to more than $2.2 billion. The Department of Justice refuses to allow these cybercriminals to use the perceived anonymity of the Internet as a shield for their crimes. We are committed to working closely with our international counterparts to identify, investigate, and bring to justice the perpetrators of these crimes, wherever in the world they operate.”
“The U.S. Attorney’s Office is steadfastly committed to protecting America’s national and economic security,” said U.S. Attorney Elieson. “Criminals cannot hide behind their computer screens. We are working vigilantly with American and international law enforcement partners to identify and disrupt transnational cybercrime organizations, such as the Infraud Organization.”
“Criminal cyber organizations like Infraud threaten not just U.S. citizens but people in every corner of the globe,” said HSI Acting Executive Associate Director Benner. “The actions of computer hackers and identity thieves not only harm countless innocent Americans, but the threat they pose to our financial system and global commerce cannot be overstated. The criminals involved in such schemes may think they can escape detection by hiding behind their computer screens here and overseas, but as this case shows, cyberspace is not a refuge from justice. HSI will continue working with our law enforcement partners in this country and around the world to aggressively target cyber thieves to ensure the perpetrators face the full weight of the law.”
According to the indictment, the Infraud Organization was created in October 2010 by Svyatoslav Bondarenko aka “Obnon,” aka “Rector,” aka “Helkern,” 34, of Ukraine, to promote and grow interest in the Infraud Organization as the premier destination for carding—purchasing retail items with counterfeit or stolen credit card information—on the Internet. Under the slogan, “In Fraud We Trust,” the organization directed traffic and potential purchasers to the automated vending sites of its members, which served as online conduits to traffic in stolen means of identification, stolen financial and banking information, malware, and other illicit goods. It also provided an escrow service to facilitate illicit digital currency transactions among its members and employed screening protocols that purported to ensure only high quality vendors of stolen cards, personally identifiable information, and other contraband were permitted to advertise to members.
According to the indictment, Infraud members held defined roles within the organization’s hierarchy. “Administrators” managed day-to-day operation of and strategic planning for the organization, approved and monitored membership, and meted out punishments and rewards to members. “Super Moderators” oversaw and administered specific subject-matter areas within their expertise. “Moderators” moderated one or two specific sub-forums within their areas of subject-matter expertise. “Vendors” sold illicit products and services to Infraud members. Finally, “VIP Members” and “Members” used the Infraud forum to gather information and to facilitate their criminal activities. As of March 2017, there were 10,901 registered members of the Infraud Organization.
During the course of its seven-year history, the Infraud Organization inflicted approximately $2.2 billion in intended losses, and more than $530 million in actual losses, on a wide swath of financial institutions, merchants, and private individuals, and would have continued to do so for the foreseeable future if left unchecked.
The defendants indicted for their alleged roles in the Infraud Organization’s transnational racketeering conspiracy include:
- Svyatoslav Bondarenko of Ukraine;
- Amjad Ali aka “Amjad Ali Chaudary,” aka “RedruMZ,” aka “Amjad Chaudary,” 35, of Pakistan;
- Roland Patrick N’Djimbi Tchikaya aka “Darker,” aka “dark3r.cvv,” 37, of France;
- Miroslav Kovacevic aka “Goldjunge,” 32, of Serbia;
- Frederick Thomas aka “Mosto,” aka “1stunna,” aka “Bestssn,” 37, of Alabama;
- Osama Abdelhamed aka “MrShrnofr,” aka “DrOsama,” aka “DrOsama1,” 27, of Egypt;
- Besart Hoxha aka “Pizza,” 25, of Kosovo;
- Raihan Ahmed aka “Chan,” aka “Cyber Hacker,” aka “Mae Tony,” aka “Tony,” 26, of Bangladesh;
- Andrey Sergeevich Novak aka “Unicc,” aka “Faaxxx,” aka “Faxtrod” of the Russian Federation;
- Valerian Chiochiu aka “Onassis,” aka “Flagler,” aka “Socrate,” aka “Eclessiastes,” 28, of Moldova;
- John Doe #8 aka “Aimless88;”
- Gennaro Fioretti aka “DannyLogort,” aka “Genny Fioretti,” 56, of Italy;
- Edgar Rojas aka “Edgar Andres Viloria Rojas,” aka “Guapo,” aka “Guapo1988,” aka “Onlyshop,” 27, of Australia;
- John Telusma aka “John Westley Telusma,” aka “Peterelliot,” aka “Pete,” aka “Pette,” 33, of Brooklyn, New York;
- Rami Fawaz aka “Rami Imad Fawaz,” aka “Validshop,” aka “Th3d,” aka “Zatcher,” aka “Darkeyes,” 26, of Ivory Coast;
- Muhammad Shiraz aka “Moviestar,” aka “Leslie” of Pakistan;
- Jose Gamboa aka “Jose Gamboa-Soto,” aka “Rafael Garcia,” aka “Rafael101,” aka “Memberplex2006” aka “Knowledge,” 29, of Los Angeles, California;
- Alexey Klimenko aka “Grandhost,” 34, of Ukraine;
- Edward Lavoile aka “Eddie Lavoie,” aka “Skizo,” aka “Eddy Lavoile,” 29, of Canada;
- Anthony Nnamdi Okeakpu aka “Aslike1,” aka “Aslike,” aka “Moneymafia,” aka “Shilonng,” 29, of the United Kingdom;
- Pius Sushil Wilson aka “FDIC,” aka “TheRealGuru,” aka “TheRealGuruNYC,” aka “RealGuru,” aka “Po1son,” aka “1nfection,” aka “1nfected,” 31, of Flushing, New York;
- Muhammad Khan aka “CoolJ2,” aka “CoolJ,” aka “Secureroot,” aka “Secureroot1,” aka “Secureroot2,” aka “Mohammed Khan,” 41, of Pakistan;
- John Doe #7 aka “Muad’Dib;”
- John Doe #1 aka “Carlitos,” aka “TonyMontana;”
- David Jonathan Vargas aka “Cashmoneyinc,” aka “Avb,” aka “Poony,” aka “Renegade11,” aka “DvdSVrgs,” 33, of San Diego, California;
- John Doe #2;
- Marko Leopard aka “Leopardmk,” 28, of Macedonia;
- John Doe #4 aka “Best4Best,” aka “Wazo,” aka “Modmod,” aka “Alone1,” aka“Shadow,” aka “Banderas,” aka “Banadoura;”
- Liridon Musliu aka “Ccstore,” aka “Bowl,” aka “Hulk,” 26, of Kosovo;
- John Doe #5 aka “Deputat,” aka “Zo0mer;”
- Mena Mouries Abd El-Malak aka “Mina Morris,” aka “Source,” aka “Mena2341,” aka “MenaSex,” 34, of Egypt; and
- John Doe #6 aka “Goldenshop,”aka “Malov.”
In addition, Novak and “Goldenshop” are charged with three counts each and “Deputat” and Musliu one count each of possession of 15 or more counterfeit and unauthorized access devices.
The superseding indictment is the result of an investigation conducted by the Las Vegas Office of Homeland Security Investigations; the Henderson, Nevada, Police Department; the Criminal Division’s Organized Crime and Gang Section; and the U.S. Attorney’s Office for the District of Nevada.
The international operation to dismantle the Infraud Organization would have been impossible without the significant efforts and timely cooperation of the Justice Department’s Office of International Affairs and International Organized Crime Intelligence and Operations Center; Interpol Rome; Interpol Tirana; the Italian National Police (Postal and Communications Police); the Australian Federal Police and the International Crime Cooperation Central Authority, Australian Government Attorney-General’s Department; the U.S. Diplomatic Security Service, Regional Security Office at U.S. Embassy Tirana, Albania; the City of London Police, DCPCU; the French Ministry of Justice, the Paris Prosecutor, L’Office Central de Lutte contre la Criminalité liée aux Technologies de l’Information et de la Communication; the judicial and police authorities of the Grand Duchy of Luxembourg; the Directorate for Organized Crime Investigation, Sector for Cyber Crime Investigation; the Basic Prosecution Office Pristina, Kosovo; and the Ministry of Justice of the Republic of Kosova, Department for International Legal Cooperation and the Special Prosecution Office for High-Tech Crime of the Republic of Serbia.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Trial Attorneys Kelly Pearson and Chimaobim Nwachukwu of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Chad W. McHenry of the District of Nevada are prosecuting the case.
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Fort McDermitt Man Charged for Double Murder on Indian ReservationRead the Press Release
RENO, Nev. – A Fort McDermitt, Nevada, resident was charged today in federal court for allegedly murdering two individuals on the Fort McDermitt Indian Reservation, announced U.S. Attorney Dayle Elieson of the District of Nevada.
Stoney Prior, 40, a member of the Fort McDermitt Shoshone Paiute Tribe, was charged in a criminal complaint with two-counts of first-degree murder in Indian Country. A preliminary hearing is scheduled before U.S. District Magistrate Judge William G. Cobb on February 22, 2018.
According to allegations contained in the complaint, on January 31, 2018, Prior shot and killed two individuals in a residence. The first victim was shot in the head and neck with a shotgun and the second victim was shot in the arm, body, and head. Both victims were members of the Fort McDermitt Shoshone Paiute Tribe.
If convicted, the mandatory minimum sentence is life in prison.
The case is being investigated by the FBI and the Bureau of Indian Affairs with assistance from the Humboldt County Sheriff’s Office. Assistant U.S. Attorney Shannon M. Bryant is prosecuting the case.
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Arizona Man Charged for Selling Armor Piercing Ammunition to Las Vegas Route 91 Festival ShooterRead the Press Release
LAS VEGAS, Nev. – An Arizona man was charged in U.S. District Court in Phoenix today for the manufacture and sale of armor piercing ammunition without a license. He allegedly sold ammunition to Stephen Paddock, who was later identified as the perpetrator of the October 1, 2017 mass shooting in Las Vegas, announced United States Attorney Dayle Elieson of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division.
Douglas Haig, 55, of Mesa, Ariz., is charged in a criminal complaint with one-count of conspiracy to manufacture and sell armor piercing ammunition. He appeared this afternoon before U.S. District Court Magistrate Judge Michelle H. Burns and was released on a bond with conditions pending a status conference regarding scheduling of a preliminary hearing on Feb. 15 in Phoenix. If convicted, he faces the statutory maximum penalty of five years in prison, a $250,000 fine, or both.
According to the criminal complaint, Haig met with Paddock on more than one occasion. Paddock met Haig at his home in September of 2017 to purchase ammunition. Haig previously operated “Specialized Military Ammunition,” an Internet business selling high explosive armor piercing incendiary ammunition, armor piercing incendiary ammunition, and armor piercing ammunition. Business records reveal that Haig sold armor piercing ammunition throughout the U.S., including Nevada, Texas, Virginia, Wyoming, and South Carolina. Haig did not have a license to manufacture armor piercing ammunition.
During an interview, Haig told investigators that he reloads ammunition, but does not offer reloaded cartridges for sale to his customers and none of the ammunition recovered in Las Vegas crime scenes would have tool marks on them consistent with his reloading equipment. Reloaded ammunition refers to ammunition that is manufactured from component parts, including previously fired cartridge cases. Based on a forensic examination of rounds recovered in the shooter’s hotel rooms, Haig’s fingerprints were found on reloaded, unfired .308 caliber cartridges. Forensic examination also revealed that armor piercing ammunition recovered inside of the shooter’s rooms had tool marks consistent with Haig’s reloading equipment.
The public is reminded that a criminal complaint contains only a charge and is not evidence of guilt. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation is being conducted by the FBI’s Las Vegas Division with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Las Vegas Metropolitan Police Department. The case is being prosecuted by Assistant U.S. Attorneys Cristina D. Silva, Patrick Burns, and Nicholas D. Dickinson.
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Owner of Nevada Home Health Care Firm Sentenced to Prison for Employment Tax FraudRead the Press Release
A Las Vegas, Nevada, business owner was sentenced today to 12 months and one day in prison for evading payment of employment taxes and penalties, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Dayle Elieson of the District of Nevada.
Maria Larkin, 55, was convicted of tax evasion by a federal jury in Las Vegas in June. According to the evidence presented at trial, Larkin owned and operated Five Star Home Health Care Inc. (Five Star). Larkin was responsible for collecting and paying over income, social security, and Medicare tax withheld from her employees’ wages. From 2004 through 2009, Larkin did not pay over to the Internal Revenue Service the employment taxes she withheld. As a result, the IRS assessed trust fund recovery penalties (TFRPs) against Larkin for these years, which made her personally liable for the unpaid employment taxes.
Larkin concealed her assets and income to evade paying the TFRPs and to obstruct the IRS’s efforts to collect the outstanding taxes. She lied to the IRS regarding her ability to pay, changed the name of her business, placed her business in the name of a nominee, had her employees cash checks for her, and bought a home in the name of a nominee. In total, Larkin evaded more than $1.6 million in taxes.
In addition to the term of prison imposed, U.S. District Court Judge James C. Mahan ordered Larkin to serve three years of supervised release and to pay $1,153,633.50 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Elieson commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney John T. Mulcahy of the Tax Division and Assistant U.S. Attorney Alexandra M. Michael, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Owner of Nevada Home Health Care Firm Sentenced to Prison for Employment Tax FraudRead the Press Release
LAS VEGAS, Nev. – A Las Vegas, Nevada, business owner was sentenced today to 12 months and one day in prison for evading payment of employment taxes and penalties, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Dayle Elieson of the District of Nevada.
Maria Larkin, 55, was convicted of tax evasion by a federal jury in Las Vegas in June. According to the evidence presented at trial, Larkin owned and operated Five Star Home Health Care Inc. (Five Star). Larkin was responsible for collecting and paying over income, social security, and Medicare tax withheld from her employees’ wages. From 2004 through 2009, Larkin failed to pay over to the Internal Revenue Service (IRS) the employment taxes she withheld. As a result, the IRS assessed trust fund recovery penalties (TFRPs) against Larkin for these years, which made her personally liable for the unpaid employment taxes.
Larkin concealed her assets and income to evade paying the TFRPs and to obstruct the IRS’s efforts to collect the outstanding taxes. She lied to the IRS regarding her ability to pay, changed the name of her business, placed her business in the name of someone else, had her employees cash checks for her, and bought a home in the name of someone else. In total, Larkin evaded more than $1.6 million in taxes.
In addition to the term of prison imposed, U.S. District Court Judge James C. Mahan ordered Larkin to serve three years of supervised release and to pay $1,153,633.50 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Elieson commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney John T. Mulcahy of the Tax Division and Assistant U.S. Attorney Alexandra M. Michael, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Las Vegas Man Convicted of Receipt, Possession and Advertising of Child PornographyRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was found guilty by a jury today of three counts relating to child pornography possession, receipt, and advertising, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Following a four-day trial, James Scott Alva, 45, was found guilty of one count of receipt of child pornography, one count of possession of child pornography, and one count of advertising of child pornography. United States District Judge Robert C. Jones presided over the trial and scheduled sentencing for April 9, 2018. Alva faces the statutory maximum penalty of 30 years in prison and a $250,000 fine.
According to the indictment, Alva possessed and received images of child pornography. Furthermore, he made and published an advertisement offering to exchange, display, and distribute child pornography.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys Christopher Burton and Elham Roohani prosecuted the case.
The 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 Police Officer Sentenced to One Year in Prison for Use of Excessive Force During ArrestRead the Press Release
LAS VEGAS, Nev. – A former Las Vegas Metropolitan Police Department (LVMPD) officer was sentenced today by U.S. District Judge Richard Boulware II to 12 months in prison and one year of supervised release for his use of excessive force during an arrest of a woman in 2015, announced U.S. Attorney Dayle Elieson of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Office. He was also ordered to pay a $20,000 fine and complete 300 hours of community service after serving his term of imprisonment.
Richard Scavone, 51, pleaded guilty on Sept. 29, 2017, to one count of deprivation of rights under color of law. He was working as a LVMPD patrol officer when the incident occurred. After conducting its own investigation into Scavone’s conduct, LVMPD terminated his employment.
According to the plea agreement, Scavone, who wore a body-worn camera, admitted that, on Jan. 6, 2015, he assaulted a handcuffed woman in his custody outside a Hampton Inn Hotel on Tropicana Blvd. He admitted that during the interaction with A.O., and while A.O. was handcuffed, he: shoved A.O. to the ground; grabbed her around the neck with his hand and threw her to the ground; struck her in the forehead with an open palm; grabbed her by the head and slammed her face onto the hood of his patrol vehicle; grabbed her by the hair and slammed her face onto the hood of his patrol vehicle a second time; and slammed A.O. into the door of his patrol vehicle. Scavone admitted that he took those actions without legal justification and that he knew his actions were against the law.
This case was investigated by the FBI with the cooperation of the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Phillip N. Smith Jr. and Nicholas Dickinson of the District of Nevada and Trial Attorney Julia Gegenheimer of the Civil Rights Division of the Department of Justice prosecuted the case.
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Wellington, Nevada Man Sentenced to over 12 Years in Prison for Distribution of Child PornographyRead the Press Release
RENO, Nev. – A Wellington, Nevada resident was sentenced today to 151 months in prison for distribution of child pornography, announced Acting U.S. Attorney Steve W. Myhre for the District of Nevada.
Daniel O’Brien, 27, pleaded guilty on Sept. 14, 2017, to one count of distribution of child pornography. In addition to the prison term, U.S. District Judge Howard D. McKibben sentenced O’Brien to lifetime supervised release to follow his term of imprisonment.
According to the plea agreement, O’Brien admitted that he used his cell phone to send images and videos over the Internet of children engaged in sexually explicit acts. On Nov. 17, 2016, during the execution of search warrant of O’Brien’s residence, law enforcement found 172 images and 30 videos depicting child pornography on his cell phone and computer.
The case was investigated by the Northern Nevada Child Exploitation Task Force, which is comprised of members of the FBI, the Reno Police Department, the Washoe County Sheriff’s Office, and the Nevada Attorney General’s Office. The Douglas County Sheriff’s Office also assisted with the investigation. Assistant U.S. Attorney Shannon M. Bryant prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, visit www.usdoj.gov/psc.
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Attorney General Jeff Sessions Selects District of Nevada to Receive Two New Assistant United States Attorney Positions to Combat Violent CrimeRead the Press Release
LAS VEGAS, Nev. - Attorney General Jeff Sessions has selected the District of Nevada to receive two additional Assistant United States Attorneys to focus exclusively on violent crime. The District of Nevada was selected as one of 27 districts throughout the United States to receive additional resources for the fight against violent crime.
“Led by our 94 United States Attorney’s Offices, Project Safe Neighborhoods (PSN) task forces are hitting the streets across America to apprehend and bring violent criminals to justice. I have asked Congress for additional PSN funding next year because I believe nothing will be more effective at reducing violent crime,” said Attorney General Sessions. "Under this program, I am asking a great deal of our United States Attorneys. I am both empowering them and holding them accountable for results. To put them in the best position to impact and reduce violent crime, it is my privilege to announce today that through a re-allocation of resources, we will be enlisting and deploying 40 additional violent crime prosecutors across the United States."
“The U.S. Attorney’s Office will hire two new Assistant U.S. Attorneys to join our dedicated team in reducing violent crime in Nevada. The new prosecutors will work closely with law enforcement partner agencies to reduce violent crime and to remove dangerous offenders from our communities,” said Acting United States Attorney Steven W. Myhre.
More information on the locations of those 40 Assistant United States Attorneys and violent crime task forces is below:
AUSA Breakdown by District
Northern District of Alabama - 1
Eastern District of Arkansas - 1
Northern District of California - 2
Southern District of California - 1
District of Connecticut - 1
District of Columbia - 1
Central District of Illinois - 1
Northern District of Illinois - 3
Southern District of Indiana - 1
Eastern District of Louisiana - 1
District of Maryland - 3
Western District of Michigan - 1
Eastern District of Missouri - 2
Western District of Missouri - 1
District of Nevada - 2
District of New Mexico - 1
Eastern District of New York - 2
Western District of New York - 1
Northern District of Ohio - 2
Eastern District of Pennsylvania - 1
Middle District of Tennessee - 2
Western District of Tennessee - 2
Eastern District of Texas - 1
Northern District of Texas - 1
Southern District of Texas - 2
Western District of Texas - 1
Eastern District of Wisconsin – 2Project Safe Neighborhoods is a nationwide commitment by the Department of Justice to reduce gun and gang crime in America by networking local programs and providing these programs with additional tools necessary to be successful. For more information about Project Safe Neighborhoods, visit www.justice.gov/usao-nv.
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Attorney General Jeff Sessions Appoints Dayle Elieson as Interim United States AttorneyRead the Press Release
LAS VEGAS, Nev. – Attorney General Jeff Sessions today announced the appointment of Dayle Elieson as Interim United States Attorney pursuant to 28 U.S.C. § 546, which provides that “the Attorney General may appoint a United States Attorney for the district in which the office of United States Attorney is vacant.” This appointment will take effect on January 5, 2018.
“Dayle Elieson has served this Department for more than 15 years and has prosecuted criminals for more than 20 years,” said Attorney General Sessions. “At the federal level, she has successfully taken on fraudsters, money launderers, and terrorists. She is experienced, highly respected, and she will be an excellent leader as Interim U.S. Attorney for Nevada.”
Ms. Elieson has prosecuted cases at both the state and federal levels, having served as an Assistant District Attorney for Dallas County and Denton County, Texas, and as an Assistant United States Attorney for the Northern District of Texas. Ms. Elieson received her J.D. from Brigham Young University J. Reuben Clark Law School and her B.A. in English from the University of Texas at Austin.
Upon the appointment of Ms. Elieson as Interim United States Attorney, Acting United States Attorney Steven W. Myhre will resume his role as First Assistant United States Attorney.
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Las Vegas Man Sentenced to 10 Years in Prison for Bank RobberyRead the Press Release
LAS VEGAS, Nev. - A Las Vegas, Nevada man was sentenced today to 120 months in prison for robbing a bank located inside a grocery store, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Anthony Donnell Tyner, 40, previously pleaded guilty to one count of bank robbery. In addition to the prison term, U.S. District Judge Andrew P. Gordon sentenced Tyner to three years of supervised release to follow his term of imprisonment. Tyner is a former felon with previous bank robbery convictions.
According to the criminal complaint, on Nov. 18, 2016, Tyner, who wore a fake gray beard, entered the U.S. Bank located inside the Albertson’s at 10140 West Flamingo Rd. He handed the bank teller a demand note and threatened to shoot the teller. Tyner stole $493 from the bank.
The case was investigated by the Federal Bureau of Investigation and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Phillip N. Smith Jr. prosecuted the case.
This case was brought as part of Project Safe Neighborhoods, a nationwide commitment by the Department of Justice to reduce gun and gang crime in America by networking local programs that target gun and gun crime and providing these programs with additional tools necessary to be successful. For more information about Project Safe Neighborhoods, visit www.justice.gov/usao_nv.
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Henderson Man Sentenced to 18 Months in Prison for Selling Stolen U.S. Military Ammunition, Smoke Grenades and EquipmentRead the Press Release
LAS VEGAS, Nev. – A Henderson, Nevada man was sentenced today to 18 months in prison and two years supervised release for selling military-issued ammunition, smoke grenades, and other equipment stolen from the U.S. Air Force, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Temogen Tran Noguni, 38, was sentenced by U.S. District Chief Judge Gloria M. Navarro. He pleaded guilty on Aug. 18, 2017, to one count of unauthorized sale of property of the United States. Co-defendants Jonathan Owens, 27, a Staff Sergeant at Nellis Air Force Base Nevada, and Daniel Schwartz, 42, both previously pleaded guilty to criminal charges.
According to the plea agreement, Noguni admitted that, from August 2015 to November 2015, he purchased from Owens stolen smoke grenades; body armor plate carrier vests; a red dot optical rifle scope; a set of night vision binoculars and goggles; and military ammunition to include 9mm, 5.56x45mm, and .50 caliber cartridges, all from Nellis Air Force Base Nevada. The .50 caliber ammunition, which is not available for sale to the general public, is armor-piercing incendiary ammunition designed to pierce the shell of armored vehicles and explode inside. Noguni then listed the items for sale on the Internet.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Air Force Office of Special Investigations. Assistant U.S. Attorney Jared L. Grimmer prosecuted the case.
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Former Felon Convicted of Unlawful Possession of FirearmsRead the Press Release
LAS VEGAS, Nev. – A jury convicted a former felon Thursday of unlawful possession of one Heckler & Koch machine pistol and one Sig Sauer automatic rifle after multiple prior felony convictions in California, announced Acting U.S. Attorney Steve W. Myhre for the District of Nevada.
Following a three-day jury trial, Jack Benjamin Hessiani, 39, of Ventura, California, was found guilty of one count of felon in possession of a firearm. United States District Judge Larry R. Hicks presided over the trial and scheduled sentencing for March 22, 2018. At the time of sentencing, Hessiani faces the statutory maximum penalty of 10 years in prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Department of Labor Office of the Inspector General. Assistant U.S. Attorneys Phillip N. Smith Jr. and Alexandra Michael are prosecuting the case.
This case was brought as part of Project Safe Neighborhoods, a nationwide commitment by the Department of Justice to reduce gun and gang crime in America by networking local programs that target gun and gun crime and providing these programs with additional tools necessary to be successful. For more information about Project Safe Neighborhoods, visit www.justice.gov/usao-nv.
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Jury Convicts Man of Kidnapping Woman in Las VegasRead the Press Release
LAS VEGAS, Nev. – A Texas man was convicted by a jury Tuesday of kidnapping and driving a woman against her will from Nevada to New Mexico, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Jack William Morgan, 32, of Texas, was found guilty of one count of conspiracy to commit kidnapping and one count of kidnapping. United States District Judge Kent J. Dawson presided over the trial and scheduled sentencing for March 20, 2018. Morgan faces the statutory maximum penalty of life in prison and a $250,000 fine.
According to the indictment, on Jan. 30, 2017, Morgan and a co-defendant conspired together to use force and violence to kidnap a woman in Las Vegas. They abducted the woman, chained her to the floor of a vehicle, and drove her from Nevada to New Mexico. Law enforcement rescued the victim and arrested Morgan and his co-defendant in New Mexico.
The case is being investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys Susan Cushman and Kathryn Newman are prosecuting the case.
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Registered Child Sex Offender Sentenced to 15 Years in Prison for Receipt of Child PornographyRead the Press Release
LAS VEGAS, Nev. – A registered child sex offender was sentenced today by U.S. District Judge Jennifer A. Dorsey to 180 months in prison for receipt of child pornography, which was also a violation of his supervised release conditions, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Clayton Call, 64, of Las Vegas, pleaded guilty on July 25, 2017, to one count of receipt of child pornography. Call was previously convicted of receipt of child pornography and was sentenced to 72 months in prison and a lifetime of supervised release following his release.
According to the plea agreement, as a condition of the terms of his supervised release, a U.S. Probation Officer conducted an inspection of Call’s residence. During the inspection, the officer seized Call’s laptop after discovering that it contained child pornography. During a forensic analysis of the laptop, law enforcement found nearly 140 images and videos of child sexual exploitation.
The case was investigated by the FBI and the U.S. Probation Office. Assistant U.S. Attorney Phillip N. Smith Jr. prosecuted the case.
To report child sexual exploitation, contact the National Center for Missing and Exploited Children at 1-800-THE-LOST (1-800-843-5678) or the FBI’s Las Vegas Office at (702) 385-1281.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, visit www.usdoj.gov/psc.
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Las Vegas Man Sentenced to Five Years in Prison for Armored Vehicle and Gun Store RobberiesRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man who pleaded guilty to robbing an armored vehicle and stealing 18 firearms, including a silencer, from a gun store, was sentenced today to 63 months in prison, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Anthony Jovan Greene, 31, was sentenced by U.S. District Judge James C. Mahan. He pleaded guilty to one count of interference with commerce by robbery and one count of theft from a Federal Firearms Licensee.
According to the plea agreement, Greene admitted that on Oct. 5, 2012, both he and at least one other co-conspirator used baseball bats to rob approximately $210,889 from a Garda Cash Logistics armored truck at the Las Vegas Outlet Mall in downtown Las Vegas. Greene further admitted that on Sept. 8, 2016, he stole a total of 18 handguns, rifles, and a silencer from 2nd Amendment Gun shop at 4570 N. Rancho Drive in Las Vegas.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI, and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Phillip N. Smith Jr. prosecuted the case.
This case was brought as part of Project Safe Neighborhoods, a nationwide commitment by the Department of Justice to reduce gun and gang crime in America by networking local programs that target gun and gun crime and providing these programs with additional tools necessary to be successful. For more information about Project Safe Neighborhoods, visit www.justice.gov/usao-nv.
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Nevada Cardiologist Arrested for Unlawful Distribution of Prescription Opioids and Health Care FraudRead the Press Release
An Elko, Nevada, cardiologist was arrested yesterday on 39-charges of unlawful distribution of prescription opioids and Medicare and Medicaid fraud, announced Attorney General Jeff Sessions, Acting U.S. Attorney Steven W. Myhre for the District of Nevada, Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas office, Special Agent in Charge David J. Downing for the DEA’s Los Angeles field office, and Special Agent in Charge Christian Schrank for the Office of Inspector General of the U.S. Department of Health and Human Services Office Los Angeles Region.
Dr. Devendra I. Patel, aka Devendrakumar I. Patel, 58, of Elko, is charged with 36-counts of distribution of controlled substances such as oxycodone and hydrocodone, and three-counts of health care fraud. Patel is a cardiologist at his medical practice Northeastern Nevada Cardiology. The statutory maximum penalty for distribution of a controlled substance is 10 years in prison and the maximum penalty for health care fraud is 10 years in prison. He is scheduled to appear in federal court on Wednesday in Reno.
According to the 39-count indictment that was unsealed today, it is alleged that, from May 2014 to September 2017, Patel routinely prescribed fentanyl, hydrocodone, and oxycodone for his patients without a legitimate medical purpose and that he fraudulently billed Medicare and Medicaid for medical tests that he did not perform. The indictment alleges that Patel performed EKGs on his patients, so he could then order nuclear stress tests which he did not administer. He allegedly used a poorly calibrated machine and presented his patients with fraudulent X-Rays, in order to deceive his patients into thinking they had coronary issues that needed to be treated by him.
"Today we are facing the worst drug crisis in American history, with one American dying of a drug overdose every nine minutes," said Attorney General Sessions. "This summer, I ordered the creation of the Opioid Fraud and Abuse Detection Unit, which brings together data analysts and Assistant United States Attorneys from throughout the country to prosecute doctors engaged in opioid-related health care fraud. Additionally, I assigned a dozen of our top federal prosecutors to focus solely on this problem where the epidemic is at its worst. Prosecuting these cases help cut off the supply of drugs and stop addiction from spreading. These prosecutors are already delivering results, filing charges against doctors in Western Pennsylvania and Nevada. We will file many more charges in the months to come—because the Department of Justice will be relentless in hunting down drug dealers and turning the tide of this epidemic."
“Dr. Patel is the first person to be charged in Nevada since the formation of the Justice Department’s Opioid Fraud and Abuse Detection Unit,” said Acting U.S. Attorney Myhre.” The U.S. Attorney’s Office is committed to turning the tide of the prescription opioid epidemic that is plaguing our communities. We will continue to work with our law enforcement partners to investigate and prosecute individuals who contribute to this scourge.”
"Despite his physician's oath to do no harm, Dr. Patel recklessly prescribed opioids, for no legitimate medical purpose," stated FBI Special Agent in Charge Rouse. "The FBI is confident that today's arrest will send a message to other physicians that are prescribing opioids outside the scope of legitimate medical care. We are committed to using every tool in our arsenal to battle the opioid crisis in the state of Nevada."
“Our Country is in the midst of a devastating opioid crisis and DEA is using every resource available to identify the traffickers and facilitators fueling addiction in our communities,” said DEA Special Agent in Charge Downing. “Healthcare professionals who abuse the public’s trust and prescribe or dispense drugs purely for profit are drug dealers, and they’re going to be held accountable.”
“To combat this opioid epidemic, OIG will never hesitate to investigate health professionals more concerned with profits than patients,” said HHS-OIG Special Agent in Charge Schrank. “Inappropriately diagnosing patients and then prescribing medications is only compounded by the greed of sticking taxpayers with the bill.”
The case is being investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, Office of Inspector General of the U.S. Department of Health and Human Services, U.S. Secret Service, Elko Combined Narcotics Unit, Nevada Department of Public Safety, and the Elko County Sheriff’s Office. Assistant U.S. Attorneys Kilby Macfadden and Sue Fahami are prosecuting the case.
An indictment merely alleges that crimes have been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Over 64,000 Americans died from drug overdoses in 2016. The majority of these deaths can be attributed to opioids, including illicit fentanyl. 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.
Former Federal Official and Accountant Indicted in Bribery and Fraud ConspiracyRead the Press Release
LAS VEGAS, Nev. – A former official for the U.S. Bureau of Reclamation and an accountant for a private accounting firm were indicted today for their roles in a bribery scheme involving a government contract, announced Acting U.S. Attorney Steve W. Myhre for the District of Nevada.
Fredrick J. Leavitt, 46, and Dustin M. Lewis, 43, both of Henderson, Nevada, were each indicted with one count of honest services fraud conspiracy. In addition, Leavitt was charged with one count of solicitation and receipt of a bribe by a public official and Lewis was charged with solicitation and bribery of a public official. Leavitt was employed by the U.S. Bureau of Reclamation as Director of the Financial Management Office for the Lower Colorado Region, which includes the Hoover Dam. Lewis was employed by LL Bradford & Company (LL Bradford), an accounting and tax firm. Leavitt and Lewis are scheduled to have their initial appearance before U.S. Magistrate Judge Nancy J. Koppe on Dec. 21, 2017.
According to the allegations contained in the indictment, from February 2015 to February 2016, Lewis bribed and provided kickbacks to Leavitt in exchange for Leavitt, in his official position, steering a Southern California Public Power Authority (SCPPA) audit contract to LL Bradford. It is alleged that Leavitt and Lewis colluded over the preparation of LL Bradford’s bid submission, and Leavitt provided Lewis with inside information about the selection process. Leavitt used his position on the audit selection committee to score LL Bradford’s bid proposal as a “1,” the top rating. The indictment further alleges that after LL Bradford was selected as the winning bidder for the contract, Lewis transferred more than $200,000 to Leavitt. In January 2016, Leavitt went to work as a tax partner with LL Bradford. Finally, the indictment alleges criminal forfeiture against Leavitt in the amount of $201,250, including a 2016 Mercedes Benz CLS 63 AMG S-Model sports car, and criminal forfeiture in the amount of $704,002 as to Lewis.
The case is a joint investigation by the Federal Bureau of Investigation, IRS-Criminal Investigation, and the U.S. Department of Interior-Office of Inspector General. Acting U.S. Attorney Steven W. Myhre and Assistant U.S. Attorney Patrick Burns are prosecuting the case.
An indictment merely alleges that crimes have been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
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Nevada Cardiologist Arrested for Unlawful Distribution of Prescription Opioids and Health Care FraudRead the Press Release
RENO, Nev. – An Elko, Nevada cardiologist was arrested today on 39-charges of unlawful distribution of prescription opioids and Medicare and Medicaid fraud, announced Attorney General Jeff Sessions, Acting U.S. Attorney Steven W. Myhre for the District of Nevada, Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas office, Special Agent in Charge David J. Downing for the DEA’s Los Angeles field office, and Special Agent in Charge Christian Schrank for the Office of Inspector General of the U.S. Department of Health and Human Services Office Los Angeles Region.
Dr. Devendra I. Patel, aka Devendrakumar I. Patel, 58, of Elko, is charged with 36-counts of distribution of controlled substances such as oxycodone and hydrocodone, and three-counts of health care fraud. Patel is a cardiologist at his medical practice Northeastern Nevada Cardiology. The statutory maximum penalty for distribution of a controlled substance is 10 years in prison and the maximum penalty for health care fraud is 10 years in prison. He is scheduled to appear in federal court on Wednesday in Reno.
According to the 39-count indictment that was unsealed today, it is alleged that, from May 2014 to September 2017, Patel routinely prescribed fentanyl, hydrocodone, and oxycodone for his patients without a legitimate medical purpose and that he fraudulently billed Medicare and Medicaid for medical tests that he did not perform. The indictment alleges that Patel performed EKGs on his patients, so he could then order nuclear stress tests which he did not administer. He allegedly used a poorly calibrated machine and presented his patients with fraudulent X-Rays, in order to deceive his patients into thinking they had coronary issues that needed to be treated by him.
"Today we are facing the worst drug crisis in American history, with one American dying of a drug overdose every nine minutes," AG Sessions said. "This summer, I ordered the creation of the Opioid Fraud and Abuse Detection Unit, which brings together data analysts and Assistant United States Attorneys from throughout the country to prosecute doctors engaged in opioid-related health care fraud. Additionally, I assigned a dozen of our top federal prosecutors to focus solely on this problem where the epidemic is at its worst. Prosecuting these cases help cut off the supply of drugs and stop addiction from spreading. These prosecutors are already delivering results, filing charges against doctors in Western Pennsylvania and Nevada. We will file many more charges in the months to come—because the Department of Justice will be relentless in hunting down drug dealers and turning the tide of this epidemic."
“Dr. Patel is the first person to be charged in Nevada since the formation of the Justice Department’s Opioid Fraud and Abuse Detection Unit,” said Acting U.S. Attorney Myhre.” The U.S. Attorney’s Office is committed to turning the tide of the prescription opioid epidemic that is plaguing our communities. We will continue to work with our law enforcement partners to investigate and prosecute individuals who contribute to this scourge.”
"Despite his physician's oath to do no harm, Dr. Patel recklessly prescribed opioids, for no legitimate medical purpose," stated FBI SAC Rouse. "The FBI is confident that today's arrest will send a message to other physicians that are prescribing opioids outside the scope of legitimate medical care. We are committed to using every tool in our arsenal to battle the opioid crisis in the state of Nevada."
“Our Country is in the midst of a devastating opioid crisis and DEA is using every resource available to identify the traffickers and facilitators fueling addiction in our communities,” said DEA SAC Downing. “Healthcare professionals who abuse the public’s trust and prescribe or dispense drugs purely for profit are drug dealers, and they’re going to be held accountable.”
“To combat this opioid epidemic, OIG will never hesitate to investigate health professionals more concerned with profits than patients,” said HHS-OIG SAC Schrank. “Inappropriately diagnosing patients and then prescribing medications is only compounded by the greed of sticking taxpayers with the bill.”
The case is being investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, Office of Inspector General of the U.S. Department of Health and Human Services, U.S. Secret Service, Elko Combined Narcotics Unit, Nevada Department of Public Safety, and the Elko County Sheriff’s Office. Assistant U.S. Attorneys Kilby Macfadden and Sue Fahami are prosecuting the case.
An indictment merely alleges that crimes have been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Over 64,000 Americans died from drug overdoses in 2016. The majority of these deaths can be attributed to opioids, including illicit fentanyl. 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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Las Vegas Man Convicted of Enticement of A MinorRead the Press Release
LAS VEGAS, Nev. – A former family and marriage counselor was convicted by a jury Wednesday for soliciting a minor for sex, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Ian Alexander Pincombe, 49, of Las Vegas, was found guilty of one count of coercion and enticement, one count of possession of child pornography, and one count of receipt of child pornography. United States District Judge Jennifer A. Dorsey presided over the jury trial. Sentencing is set for March 5, 2018. Pincombe faces a minimum of 10 years and a maximum of life in prison, and a $250,000 fine.
According to the indictment and criminal complaint, on April 30, 2014, during an undercover operation, a law enforcement detective located an advertisement on Craigslist.com in which an individual, later identified as Pincombe, was seeking females for sex. The advertisement included a nude photograph. The undercover detective, posing as a 13-year-old girl, began communicating with Pincombe. Over the next two days, Pincombe exchanged sexually explicit emails and text messages with the girl, one of which included a sexually explicit photograph of himself. On May 2, 2014, law enforcement arrested Pincombe at a shopping center parking lot in Henderson where he had agreed to meet the girl for a sexual encounter. Pincombe was later charged with coercion and enticement, and the child pornography charges.
The case was investigated by the FBI, the Henderson Police Department, and the Internet Crimes Against Children Task Force. Assistant U.S. Attorneys Frank Coumou and Elham Roohani are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, visit www.usdoj.gov/psc.
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Las Vegas Couple Pleads Guilty to Violent Armed CarjackingsRead the Press Release
LAS VEGAS, Nev. – A Las Vegas couple pleaded guilty to two violent armed carjackings, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Former felon Uriah Zamir Crain, 28, of Las Vegas, pleaded guilty to carjacking, carjacking resulting in serious bodily injury, discharging a firearm during and in relation to a crime of violence, and felon in possession of a firearm. Nicole Elizabeth Nowak, 23, also of Las Vegas, pleaded guilty to carjacking, carjacking resulting in serious bodily injury, and brandishing a firearm during and in relation to a crime of violence. United States District Judge Richard F. Boulware II accepted their guilty pleas. Sentencing is scheduled for March 8, 2018.
According to the criminal complaint and their individual plea agreements, on June 22, 2017, after striking up a conversation with the victim at Hayat Liquor, Nowak asked the victim to drive her home and invited the victim into the house. Later that night at the house, Crain and another man hit the victim in the head with handguns, which resulted in injury, and stole the victim’s money, wallet, and Ford F-150 truck. Then, on June 25, Crain and Nowak committed a second carjacking. Crain shot the victim in the leg, which resulted in serious bodily injury, and Crain and Nowak then stole the victim’s Lincoln Navigator truck and other property belonging to the victim. At the time of his arrest, Crain had a Glock 9mm handgun and a 30-round Glock magazine in his possession.
At the time of sentencing, the statutory maximum penalty for carjacking is 15 years in prison and a $250,000 fine; the maximum penalty for carjacking resulting in serious bodily injury is 25 years in prison and a $250,000 fine; the minimum penalty for discharging a firearm during and in relation to a crime of violence is 10 years in prison with a maximum penalty of up to life in prison; the minimum penalty for brandishing a firearm during and in relation to a crime of violence is seven years in prison with a maximum penalty of up to life in prison; and the maximum penalty for felon in possession of a firearm is 10 years in prison and a $250,000 fine.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Phillip N. Smith Jr. and Alexandra Michael are prosecuting the case.
This case was brought as part of Project Safe Neighborhoods, a nationwide commitment by the Department of Justice to reduce gun and gang crime in America by networking local programs that target gun and gun crime and providing these programs with additional tools necessary to be successful. For more information about Project Safe Neighborhoods, visit www.justice.gov/usao-nv.
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Man Sentenced to over 6 1/2 Years in Prison for Committing Two Armed Robberies One Week ApartRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was sentenced today to 67 months in prison and three years supervised release in connection with two armed robberies committed one week apart, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Walid H. Abdulla, 65, pleaded guilty to one count of bank robbery and one count of interference with commerce by robbery. United States District Judge Howard D. McKibben presided over the sentencing hearing.
According to the plea agreement, Abdulla admitted that he committed two armed robberies in the Las Vegas Valley. On Jan. 30, 2017, he approached a clerk at a CVS Pharmacy at 8116 S. Las Vegas Blvd. with his gaming ticket from the pharmacy’s slot machine area and demanded the money from the cash register. He showed the clerk what appeared to be a semi-automatic handgun in his waistband and told the clerk to put the money inside a bag, stating, “you won’t get hurt if you just hurry.” Abdulla fled with $1,210 in cash. Abdulla further admitted that on February 6, he entered a Nevada State Bank at 3780 E. Flamingo and presented a robbery note demanding money from the vault. He showed the bank teller what appeared to be a semi-automatic handgun and fled with $5,000 in cash. Victims later identified Abdulla as the robber, he was observed by video surveillance at each robbery, and a forensic examination identified his fingerprint on the slot machine he used at the CVS.
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. The case was prosecuted by Assistant U.S. Attorney Kilby Macfadden.
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Former Felon Sentenced to 10 Years in Prison for Illegal Possession of FirearmsRead the Press Release
LAS VEGAS, Nev. – A former felon who was convicted for federal firearms violations was sentenced today to 120 months in prison, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Tajh Dion Weatherspoon, 28, was found guilty in May of one count of felon in possession of a firearm and he pleaded guilty to a second count of felon in possession of a firearm. Weatherspoon had two prior felony convictions, including attempted burglary and felon in possession of a firearm. In addition to the term of imprisonment, United States District Judge Howard D. McKibben imposed a three year term of supervised release.
According to the superseding indictment, Weatherspoon was in possession of a Glock 19 handgun on June 15, 2016, and a Glock 21 handgun on Dec. 22, 2016. The Court severed the two counts and ordered that the trials proceed one after the other, beginning May 15, 2017. After the jury convicted Weatherspoon of possessing the Glock 19 handgun, he declined to proceed to trial on the count charging possession of the Glock 21 handgun and instead pleaded guilty without the benefit of a plea agreement.
The case was investigated by the FBI, ATF, the Las Vegas Metropolitan Police Department, and the North Las Vegas Police Department. The case was prosecuted by Assistant U.S. Attorneys Tony Lopez and Patrick Burns.
This case was brought as part of Project Safe Neighborhoods, a nationwide commitment by the Department of Justice to reduce gun and gang crime in America by networking local programs that target gun and gun crime and providing these programs with additional tools necessary to be successful. For more information about Project Safe Neighborhoods, visit www.justice.gov/usao-nv.
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Henderson Man Sentenced to over Eight Years in Prison for Possession of Child PornographyRead the Press Release
LAS VEGAS, Nev. – A Henderson, Nevada man who pleaded guilty to possession of approximately 900 photos and videos of child pornography was sentenced Thursday by U.S. District Judge James C. Mahan to 97 months in prison and lifetime supervised release, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Brian Christopher Fisher, 43, pleaded guilty to one count of possession of child pornography. According to the plea agreement, during an online peer-to-peer child pornography investigation, law enforcement downloaded child pornography files from computers belonging to Fisher. Law enforcement officers then obtained and executed a search warrant for Fisher’s residence. Fisher admitted that he viewed, downloaded, and possessed approximately 732 photos and 169 videos of children performing sex acts with men and women, animals, and other juveniles.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI). Assistant U.S. Attorney Elham Roohani prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, visit www.usdoj.gov/psc.
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Florida Man Pleads Guilty to Committing $3.3 Million Telemarketing Scam Targeting Elderly VictimsRead the Press Release
LAS VEGAS, Nev. – An Orlando, Florida resident pleaded guilty today for his role in a telemarketing scheme to defraud more than 1,000 victims, many of them elderly, of more than $3.3 million, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Daniel Martin Boyar, aka “Wolf,” 62, of Orlando, Fla., pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud; two counts of mail fraud; and two counts of wire fraud. United States District Judge James C. Mahan accepted his guilty plea. Sentencing is scheduled for May 22, 2018. The statutory maximum penalty is 20 years in prison and a $250,000 fine. In addition, Boyar faces restitution in an amount not to exceed $3.5 million to the victims.
According to admissions made in connection with his guilty plea, from October 2010 to April 2012, Boyar, the leader of the scheme, together with his co-conspirators devised and participated in a telemarketing scheme to cheat timeshare owners out of money by promising to sell their timeshares in return for the owners paying in advance a portion of the closing costs associated with the purported sales. There were no buyers. The timeshare sales were never arranged and never occurred. This is a criminal scheme commonly known as the “buyer’s pitch,” an advance-fee scam. The scam operated under numerous business names including Holiday Advertising, Professional Concepts LLC, TeleTeton Corporation, Redline Funding LLC, Great West Funding Incorporated, Equity Financial Services LLC, and First Capital Financial Services Corporation, moving their business front from state to state and changing the name approximately every 90 days. The conspirators also created websites with false and misleading information to include customer testimonials, company officers, and press releases. Boyar and his co-conspirators used wire communications and mail carrier services to carry out the scheme.
The case is being investigated by the FBI and the U.S. Postal Inspection Service. Assistant U.S. Attorney Dan Cowhig is prosecuting 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.
For information about the Department of Justice’s elder justice initiative, visit http://www.usdoj.gov/elderjustice. The website is a “one-stop shop” for prosecutors, researchers, practitioners, victims and families looking for resources to identify, report and prosecute elder abuse and financial exploitation, including common fraud schemes perpetrated against seniors.
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Russian Cyber-Criminal Sentenced to 14 Years in Prison for Role in Organized Cybercrime Ring Responsible for $50 Million in Online Identity Theft and $9 Million Bank Fraud ConspiracyRead the Press Release
LAS VEGAS, Nev. - A Russian cyber-criminal was sentenced today to 14 years in prison for his role in a $50 million cyberfraud ring and for defrauding banks of $9 million through a hacking scheme.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Steven W. Myhre of the District of Nevada, U.S. Attorney Byung J. Pak of the Northern District of Georgia, Assistant Special Agent in Charge Michael Harris of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE HSI), Special Agent in Charge Brian Spellacy of the U.S. Secret Service in Las Vegas, and FBI Special Agent in Charge David J. LeValley in Atlanta made the announcement.
Roman Valeryevich Seleznev, aka Track2, Bulba and Ncux, 33, was sentenced by U.S. District Judge Steve C. Jones of the Northern District of Georgia to serve 168 months in prison for one count of participation in a racketeering enterprise pursuant to an indictment returned in the District of Nevada, and to 168 months in prison for one count of conspiracy to commit bank fraud pursuant to an indictment returned in the Northern District of Georgia, with the sentences to run concurrent to one another. In both cases, Seleznev was ordered three years of supervised release to run concurrently. He was also ordered restitution in the amount of $50,893,166.35 in the Nevada case and $2,178,349 in the Georgia case. Seleznev pleaded guilty to the charges on Sept. 7.
In connection with his guilty plea in the Nevada case, Seleznev admitted that he became associated with the Carder.su organization, an identity theft and credit card fraud ring, in January 2009. According to Seleznev’s admissions in his plea agreement, Carder.su was an Internet-based, international criminal enterprise whose members trafficked in compromised credit card account data and counterfeit identifications and committed identity theft, bank fraud, and computer crimes. Seleznev admitted that the group tried to protect the anonymity and the security of the enterprise from both rival organizations and law enforcement. For example, members communicated through various secure and encrypted forums, such as chatrooms, private messaging systems, encrypted email, proxies and encrypted virtual private networks. Gaining membership in the group required the recommendation of two current members in good standing.
Seleznev further admitted that he sold compromised credit card account data and other personal identifying information to fellow Carder.su members. The defendant sold members such a large volume of product that he created an automated website, which he advertised on the Carder.su organization’s websites. His automated website allowed members to log into and purchase stolen credit card account data. The defendant’s website had a simple interface that allowed members to search for the particular type of credit card information they wanted to buy, add the number of accounts they wished to purchase to their “shopping cart” and upon check out, download the purchased credit card information. Payment of funds was automatically deducted from an established account funded through L.R., an online digital currency payment system.
Seleznev further admitted that he sold each account number for approximately $20. The Carder.su organization’s criminal activities resulted in loss to its victims of at least $50,893,166.35.
In connection with his guilty plea in the Northern District of Georgia case, Seleznev admitted that he acted as a “casher” who worked with hackers to coordinate a scheme to defraud an Atlanta-based company that processed credit and debit card transactions on behalf of financial institutions. Seleznev admitted that pursuant to the scheme, in November 2008, hackers infiltrated the company’s computer systems and accessed 45.5 million debit card numbers, certain of which they used to fraudulently withdraw over $9.4 million from 2,100 ATMs in 280 cities around the world in less than 12 hours.
Fifty-five individuals were charged in four separate indictments in Operation Open Market, which targeted the Carder.su organization. To date, 33 individuals have been convicted and the rest are either fugitives or are pending trial.
The cases were investigated by HSI, the U.S. Secret Service, and FBI. The Nevada case was prosecuted by Trial Attorney Catherine K. Dick of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Kimberly M. Frayn of the District of Nevada. The Northern District of Georgia case was prosecuted by Assistant U.S. Attorney Kamal Ghali of the Northern District of Georgia.
Seleznev is also a defendant in a wire fraud and computer hacking case brought by the Department of Justice in the U.S. District Court for the Western District of Washington. On Aug. 25, 2016, a federal jury convicted Seleznev of 38 counts related to his role in a scheme to hack into point-of-sale computers to steal and sell credit card numbers to the criminal underworld. On April 21, Seleznev was sentenced to 27 years in prison for those crimes, which will run concurrent to his sentences today.
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Gardnerville Man Sentenced to 15 Years in Prison for Sexual Exploitation of A MinorRead the Press Release
RENO, Nev. – A former employee at a Lake Tahoe children’s ski school was sentenced today to 15 years in prison for child sexual exploitation, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Stephan L. DeGraffenreid, 27, of Gardnerville, Nev., pleaded guilty to one count of sexual exploitation of a minor and two counts of attempted sexual exploitation of a minor. United States District Judge Howard D. McKibben also sentenced DeGraffenreid to lifetime supervised release.
According to the criminal complaint and plea agreement, law enforcement discovered child pornography on an Apple iPod Touch that was found at the Children’s Ski School at Heavenly Ski Resort. During the investigation, it was discovered the iPod belonged to DeGraffenreid who was a former employee at the ski school. During the execution of a search warrant at DeGraffenreid’s residence, officers with the Northern Nevada Online Child Exploitation Task Force located a thumb drive that contained explicit images of children in a childcare facility restroom in Gardnerville. DeGraffenreid admitted to taking the sexually explicit photos of the children found on the thumb drive.
The case was investigated by the Northern Nevada Child Exploitation Task Force, which is comprised of members of the FBI, the Reno Police Department, the Washoe County Sheriff’s Office, and the Nevada Attorney General’s Office. The Douglas County Sheriff’s Office and the El Dorado County Sheriff’s Office also assisted with the investigation. Assistant U.S. Attorney Shannon M. Bryant prosecuted the case.
To report child sexual exploitation, contact the National Center for Missing and Exploited Children at 1-800-THE-LOST (1-800-843-5678) or the FBI’s Las Vegas Office at (702) 385-1281.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, visit www.usdoj.gov/psc.
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Former Felon Sentenced to Nine Years in Prison for Possession of A Firearm After Ramming into Police VehiclesRead the Press Release
RENO, Nev. – A former felon who illegally possessed a firearm and rammed into three police vehicles to avoid apprehension was sentenced today to 108 months in prison, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Kyle Howe, 31, of Reno, pleaded guilty to one count of felon in possession of a firearm. In addition to the prison term, U.S. District Judge Larry R. Hicks sentenced him to three years of supervised release.
According to the plea agreement, Howe admitted that, on Nov. 29, 2016, in an attempt to flee apprehension on an outstanding warrant, he rammed into a police vehicle then sped away. Then the next day, Howe rammed two police vehicles as Regional Crime Suppression Unit detectives attempted to arrest him. Law enforcement were able to remove him from his vehicle and arrest him. At the time of his arrest, a Smith & Wesson 9mm semiautomatic pistol, a switchblade, and approximately 4.5 grams of methamphetamine were found in his possession.
The case was investigated by the Regional Crime Suppression Unit and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Megan Rachow prosecuted the case.
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Reno Doctor Sentenced to 10 Years in Prison for Involuntary Manslaughter of Patient and Unlawful Distribution of Large Quantities of Prescription DrugsRead the Press Release
RENO, Nev. – Dr. Robert Gene Rand, a Reno physician who operated Rand Family Care, was sentenced today to 10 years in prison for involuntary manslaughter of a patient and unlawful distribution of oxycodone, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Rand, 54, was sentenced by U.S. District Judge Miranda M. Du. In addition to the prison term, Rand was ordered to pay $11,960 in restitution and a $25,000 fine. He was also sentenced to three years of supervised release.
According to the plea agreement, Rand admitted that he acted with gross negligence by prescribing an excessive amount of oxycodone to a patient in reckless regard for the patient’s life. Despite warnings by another doctor and the patient’s mother, the patient’s history and the patient being hospitalized, Rand continued to prescribe oxycodone to the patient which lead to the patient’s overdose and death in October 2015. Rand also admitted that, from March 2011 to April 2016, he prescribed a total of 23,645 oxycodone 30 mg pills without a legitimate medical purpose to a second patient. In addition to oxycodone, Rand prescribed the second patient Percocet, hydrocodone, fentanyl, as well as other substances, such as carisoprodol and alprazolam. The second patient did not undergo any toxicology tests and Rand allowed another person to pick-up the oxycodone prescriptions for the patient. Rand also warned the patient at one time that his prescriptions would no longer be filled by the pharmacies.
Rand and eight others, including Richard Winston West II, aka “Richie West,” the former manager of the Jones-West Ford dealership, were indicted on May 11, 2016, with federal prescription drug distribution charges. Co-defendants West, 40; Omar Ahsan Ahmad, 32; Joshua Ross Green, 34; Clint Mitchell Bloodworth, 41; Kathleen Griffin, 43; Alan Russel Martinez, 61; and Braden Kyle Riley, 40, all of Reno; and Ryan Daniel Smith, 40, of Carson City, all have pleaded guilty for their involvement in the prescription drug conspiracy and are awaiting sentencing.
This case was investigated by the DEA, FBI, IRS Criminal Investigation, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Enforcement, Reno Police Department, Washoe County Sheriff’s Office, Carson City Sheriff’s Office, Susanville, California Police Department, Nevada Department of Corrections, Nevada Gaming Control, Nevada Department of Public Safety, Lyon County Sheriff’s Office, and the State of Nevada Division of Welfare, Office of Investigations and Recovery. The case was prosecuted by Assistant U.S. Attorney James E. Keller.
Nearly two million Americans abused or were dependent on prescription opioids in 2014, according to the Centers for Disease Control and Prevention (CDC). Overdoses involving opioids killed more than 28,000 people in 2014, and over one-half of those deaths were from prescription opioids. In 2016, more than 64,000 Americans died from drug overdoses including illicit drugs and prescription opioids - nearly double in a decade. For information on opioid overdose and how someone can manage pain without prescription drugs, go to http://www.cdc.gov/drugoverdose/opioids/index.html.
If you have a tip or information about illegal sales or distribution of prescription opioids, including oxycodone, hydrocodone, etc., by doctors and pharmacies call the DEA at 1-877-RX-Abuse (1-877-792-2873).
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Arizona Man Pleads Guilty to Conspiracy to Impede or Injure A Federal Officer During 2014 Armed Standoff in BunkervilleRead the Press Release
LAS VEGAS, Nev. – An Arizona man pleaded guilty today in U.S. District Court in Las Vegas to conspiracy to impede or injure a federal officer during a federal impoundment operation of Cliven Bundy’s trespassing cattle in the Bunkerville, Nevada area in 2014.
Acting U.S. Attorney Steven W. Myhre for the District of Nevada, Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division, and Director William Woody for the Bureau of Land Management’s Office of Law Enforcement made the announcement.
Micah L. McGuire, 32, of Chandler, Ariz., pleaded guilty before U.S. District Chief Judge Gloria M. Navarro. Sentencing is scheduled for Feb. 16, 2018. McGuire faces the statutory maximum penalty of six years in prison and a $250,000 fine.
According to the plea agreement, McGuire knew that Cliven Bundy and his sons, Ryan, Ammon, Dave, and Mel, Ryan Payne, and others associated with them, planned to thwart, impede and interfere with the impoundment operations. He knowingly entered into a conspiracy with his co-defendants and others to impede federal law enforcement officers through a show of force and intimidation in order to prevent the officers from performing their duties in relation to the impoundment and to induce them to leave the area. McGuire furthered the conspiracy by serving on a personal security detail for Cliven Bundy; and entering the Toquop wash, a closed area where law enforcement officers were conducting their duties, with a firearm on April 12, 2014.
The case was investigated by the FBI and BLM. The case was prosecuted by Acting U.S. Attorney Steven W. Myhre, Assistant U.S. Attorneys Nadia J. Ahmed and Daniel R. Schiess, and Special Assistant U.S. Attorney Erin M. Creegan.
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Former Retirement Center Business Manager Sentenced to Nearly Three Years in Prison for Stealing More Than $190,000 from Elderly ResidentRead the Press Release
RENO, Nev. – A former Business Manager for the Reno Valley Retirement Center was sentenced today to 33 months in prison for stealing from an elderly resident’s bank account, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Angela Diane Fischer, 52, of Fernley, Nevada, pleaded guilty to one count of mail fraud. In addition to the prison term, U.S. District Judge Miranda M. Du sentenced Fischer to three years supervised release and ordered her to pay restitution to the victim in the amount of $190,231.26.
Fischer admitted that from Dec. 24, 2014 to June 3, 2016, she fraudulently obtained $190,231.26 from an elderly man’s bank account for her personal benefit. She changed the password for the man’s online banking account, so she could access and set-up automatic payments from his bank account to pay his rent at the Reno Valley Retirement Center. As part of the scheme, she fraudulently sent approximately 37 checks to herself and transferred money from the man’s savings account to checking account in order to conceal the money that she was taking without his permission. Furthermore, Fischer continued to withdraw money from the man’s account after she was terminated from the Reno Valley Retirement Center in June 2015.
The case was investigated by the Reno Police Department with assistance from the FBI. Assistant U.S. Attorney Megan Rachow prosecuted the case.
For more information about the Department of Justice’s efforts to prevent and combat elder abuse, visit the Elder Justice Initiative website at https://www.justice.gov/elderjustice. If you or someone you know is a victim of elder abuse, call the Victim Connect hotline at 1-855-4VICTIM (1-855-484-2846).
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Man Sentenced to Five Years in Prison for Failure to Register as A Sex OffenderRead the Press Release
LAS VEGAS, Nev. – A convicted sex offender who failed to register as a sex offender when he moved to the Las Vegas area was sentenced to 60 months in prison today, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Charles Elmer Roush, 79, pleaded guilty to one count of violation of the Sex Offender Registration and Notification Act (SORNA). In addition to the prison term, U.S. District Judge Larry R. Hicks sentenced Roush to lifetime of supervised release.
According to the plea agreement, Roush admitted that he failed to register with the Las Vegas Metropolitan Police Department or any local jurisdiction when he relocated to the Las Vegas area. In 1985, Roush was convicted in El Paso County, Colo., of inducing a minor to engage in sexually explicit conduct and mailing visual depiction of minors engaged in sexually explicit conduct. As a result of the conviction, Roush was required under SORNA to register and to update his registration in each jurisdiction he resides and is employed.
The case was investigated by the Nevada Parole and Probation and U.S. Marshals Service. Assistant U.S. Attorney Elham Roohani prosecuted the case.
To report a non-compliant or unregistered sex offender, contact the U.S. Marshals Service National Sex Offender Targeting Center at [email protected].
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Three Hawaii Residents Sentenced to Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
RENO, Nev. – Three individuals were sentenced Monday for their roles in a multi-state conspiracy to distribute methamphetamine, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Devon Kealiiaukai Kauwe, 35, of Waianae, Hawaii; Joseph Novit Fua, aka “Joey Boy,” 29, and Rhonda Pualani Wong-Fernandez, 30, both of Honolulu, were sentenced to 130 months, 135 months, and 41 months in prison, respectively, by U.S. District Judge Larry R. Hicks. Kauwe and Fua each pleaded guilty to one count of conspiracy to possess with intent to distribute and one count of distribution of at least 50 grams of methamphetamine and Wong-Fernandez pleaded guilty to conspiracy to distribute and possess with intent to distribute methamphetamine.
According to their individual plea agreements, from April 2014 to May 2014, Kauwe, Fua, and Wong-Fernandez conspired to possess and distribute at least 50 grams of methamphetamine. To further the conspiracy, Kauwe agreed to sell seven pounds of methamphetamine for $102,000 to a buyer who was an undercover agent. Kauwe contacted Fua to help him obtain the drugs. Fua and co-conspirators arranged for and acquired a total of 17 pounds, seven pounds were for Kauwe and 10 pounds were for Fua, of methamphetamine. Fua and Wong-Fernandez obtained the 17 pounds of methamphetamine from co-conspirators in the Los Angeles area. Kauwe and co-conspirator Jeromy Perez received seven pounds of methamphetamine from Fua and Wong-Fernandez. Kauwe and Perez drove with the drugs from California to Reno. Fua and Wong-Fernandez drove with ten pounds to Denver where Fua used a co-conspirator to get the concealed methamphetamine around airport security. In Reno, Perez delivered the methamphetamine to co-defendant Shane Kelly McPherson, who then delivered the drugs to the undercover agent in a casino parking lot. On May 5, 2014, during the drug transaction, law enforcement arrested McPherson, Perez, and Kauwe.
The investigation was conducted by the DEA and Assistant U.S. Attorney James E. Keller prosecuted the case.
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Former Las Vegas Strip Club Owner Sentenced to Prison for Evading More Than $1.7 Million in Employment TaxesRead the Press Release
The former owner of a Las Vegas strip club was sentenced today to 24 months in prison for evading payment of more than $1.7 million in employment taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Frederick John Rizzolo, of Las Vegas, the former owner of The Crazy Horse Too, pleaded guilty in June, to attempt to evade and defeat the payment of employment taxes that he owed for 2000 through 2002.
According to documents filed with the court, Rizzolo paid The Crazy Horse Too’s floormen, bouncers, bartenders and shift managers in cash, but failed to provide accurate records of these payments to the Club’s bookkeepers. As a result, Rizzolo caused false employment tax returns to be filed with the Internal Revenue Service (IRS), which underreported wages paid and thus the taxes due. In 2006, Rizzolo admitted this conduct and pleaded guilty to conspiring to defraud the United States. Following his plea, however, Rizzolo took affirmative steps to conceal his assets and income to thwart the IRS from collecting the delinquent taxes that he owed. For example, Rizzolo directed $900,000 that he received from the sale of The Crazy Horse Club, in Philadelphia, to an offshore bank account in the Cook Islands. He also withdrew $50,000 from a bank account, writing a check to a third party, who in turn provided the money back to Rizzolo, thereby avoiding an IRS levy and seizure of the funds. Additionally, Rizzolo falsely stated to the IRS that he had no income or assets and no ability to pay the taxes owed.
In addition to the term of imprisonment imposed, U.S. District Chief Judge Gloria M. Navarro ordered Rizzolo to serve six months of supervised release and to pay restitution in the amount of $2,637,290 to the IRS.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Myhre thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Phillip N. Smith Jr. and Trial Attorney Rebecca J. Sable of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Former Las Vegas Strip Club Owner Sentenced to Prison for Evading More Than $1.7 Million in Employment TaxesRead the Press Release
LAS VEGAS, NEV. – The former owner of a Las Vegas strip club was sentenced today to 24 months in prison for evading payment of more than $1.7 million in employment taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Frederick John Rizzolo, of Las Vegas, the former owner of The Crazy Horse Too, pleaded guilty in June, to attempt to evade and defeat the payment of employment taxes that he owed for 2000 through 2002.
According to documents filed with the court, Rizzolo paid The Crazy Horse Too’s floormen, bouncers, bartenders and shift managers in cash, but failed to provide accurate records of these payments to the Club’s bookkeepers. As a result, Rizzolo caused false employment tax returns to be filed with the Internal Revenue Service (IRS), which underreported wages paid and thus the taxes due. In 2006, Rizzolo admitted this conduct and pleaded guilty to conspiring to defraud the United States. Following his plea, however, Rizzolo took affirmative steps to conceal his assets and income to thwart the IRS from collecting the delinquent taxes that he owed. For example, Rizzolo directed $900,000 that he received from the sale of The Crazy Horse Club, in Philadelphia, to an offshore bank account in the Cook Islands. He also withdrew $50,000 from a bank account, writing a check to a third party, who in turn provided the money back to Rizzolo, thereby avoiding an IRS levy and seizure of the funds. Additionally, Rizzolo falsely stated to the IRS that he had no income or assets and no ability to pay the taxes owed.
In addition to the term of imprisonment imposed, U.S. District Chief Judge Gloria M. Navarro ordered Rizzolo to serve six months of supervised release and to pay restitution in the amount of $2,637,290 to the IRS.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Myhre thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Phillip N. Smith Jr. and Trial Attorney Rebecca J. Sable of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
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Man Sentenced to 6 1/2 Years in Prison for Illegal Marijuana Grow Operations at Two Las Vegas HousesRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was sentenced Wednesday to 78 months in prison for maintaining two Las Vegas houses that he converted into illegal indoor marijuana grow operations, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Jian Guo Han, 66, was convicted by a jury in July of one count of conspiracy to manufacture marijuana and one count of manufacturing marijuana. United States District Judge James C. Mahan presided over the jury trial and sentencing hearing.
According to documents filed with the court, during an investigation into a concerned citizen’s report, law enforcement observed unlawful modifications to a house that were indicative of an indoor marijuana grow operation. During the execution of a search warrant, police discovered over 500 marijuana plants and evidence which led law enforcement to a second house. This house was also converted into an indoor marijuana grow operation and had three rooms dedicated to growing marijuana. A total of 342 marijuana plants and 210 marijuana clones, or cuttings from a mature cannabis plant, were found at the second house.
The investigation was conducted by the Las Vegas Metropolitan Police Department.
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