District of Nevada
Press releases recorded for this federal judicial district.
Genesis Healthcare Inc. Agrees to Pay Federal Government $53.6 Million to Resolve False Claims Act Allegations Relating to the Provision of Medically Unnecessary Rehabilitation Therapy and Hospice ServicesRead the Press Release
LAS VEGAS, Nev. - The Justice Department announced today that Genesis Healthcare Inc. (Genesis) will pay the federal government $53,639,288.04, including interest, to settle six federal lawsuits and investigations alleging that companies and facilities acquired by Genesis violated the False Claims Act by causing the submission of false claims to government health care programs for medically unnecessary therapy and hospice services, and grossly substandard nursing care. Genesis, headquartered in Kennett Square, Pennsylvania, owns and operates through its subsidiaries skilled nursing facilities, assisted/senior living facilities, and a rehabilitation therapy business.
“We will continue to hold health care providers accountable if they bill for unnecessary or substandard services or treatment,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Today’s settlement demonstrates our unwavering commitment to protect federal health care programs against unscrupulous providers.”
This settlement resolves four sets of allegations. First, the settlement resolves allegations that from April 1, 2010 through March 31, 2013, Skilled Healthcare Group Inc. (SKG) and its subsidiaries, Skilled Healthcare LLC (Skilled LLC) and Creekside Hospice II LLC, knowingly submitted or caused to be submitted false claims to Medicare for services performed at the Creekside Hospice facility in Las Vegas, Nevada by: (1) billing for hospice services for patients who were not terminally ill and so were not eligible for the Medicare hospice benefit and (2) billing inappropriately for certain physician evaluation management services.
Second, this settlement resolves allegations that from Jan. 1, 2005 through Dec. 31, 2013, SKG and its subsidiaries, Skilled LLC and Hallmark Rehabilitation GP LLC, knowingly submitted or caused to be submitted false claims to Medicare, TRICARE, and Medicaid at certain facilities by providing therapy to certain patients longer than medically necessary, and/or billing for more therapy minutes than the patients actually received. The settlement also resolves allegations that those companies fraudulently assigned patients a higher Resource Utilization Group (RUG) level than necessary. Medicare reimburses skilled nursing facilities based on a patient’s RUG level, which is supposed to be determined by the amount of skilled therapy required by the patient.
Third, this settlement resolves allegations that from Jan. 1, 2008, through Sept. 27, 2013, Sun Healthcare Group Inc., SunDance Rehabilitation Agency Inc., and SunDance Rehabilitation Corp. knowingly submitted or caused the submission of false claims to Medicare Part B by billing for outpatient therapy services provided in the State of Georgia that were (1) not medically necessary or (2) unskilled in nature.
Finally, this settlement resolves allegations that between Sept. 1, 2003 and Jan. 3, 2010, Skilled LLC submitted false claims to the Medicare and Medi-Cal programs at certain of its nursing homes for services that were grossly substandard and/or worthless and therefore ineligible for payment. More specifically, the settlement resolves allegations that Skilled LLC violated certain essential requirements that nursing homes are required to meet to participate in and receive reimbursements from government healthcare programs and failed to provide sufficient nurse staffing to meet residents’ needs.
SKG and its subsidiaries were acquired by Genesis after the conduct at issue in this settlement. Sun Healthcare Group Inc., SunDance Rehabilitation Agency Inc. and SunDance Rehabilitation Corp. were acquired by Genesis in December 2012.
“Safeguarding federal health care programs and patients is a priority,” said Acting U.S. Attorney Steven W. Myhre for the District of Nevada. “Today’s settlement is an example of the U.S. Attorney’s Office’s commitment to holding medical providers accountable for fraudulent billing of medically unnecessary treatments and services. We are committed to protecting federal health care programs, including Medicare, TRICARE, and Medicaid, which are funded by taxpayer dollars.”
“We are committed to protecting the federal health care programs and the patients who are enrolled in them,” said U.S. Attorney Brian J. Stretch for the Northern District of California. “We will continue to vigorously pursue companies and individuals who provide care that is grossly deficient or unnecessary.”
“Health care providers that falsify claims for unauthorized or unnecessary services steal precious taxpayer dollars, and we will aggressively seek to recover those funds for the program that needs them,” said U. S. Attorney John Horn for the Northern District of Georgia.
“It’s disturbing when health care companies bill Medicare and Medicaid to care for vulnerable patients, but provide grossly substandard care and medically unnecessary services just to boost company profits,” said Special Agent in Charge Steven J. Ryan of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “We will continue to crack down on medical providers who betray the public’s trust and the needs of vulnerable patients through fraudulent billing and irresponsible practices.”
“At a time when the cost of healthcare weighs heavy on many taxpayers, it is imperative that people who illegally bill our healthcare system are held accountable and forced to pay restitution,” said FBI Atlanta Special Agent in Charge David J. LeValley. “This case is an example of how committed the FBI and its partners are to keeping healthcare providers from abusing the system.”
The settlement, which was based on the company’s ability to pay, resolves allegations originally brought in lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act by Joanne Cretney-Tsosie, Jennifer Deaton, Kimberley Green, Camaren Hampton, Teresa McAree, Terri West, and Brian Wilson, former employees of companies acquired by Genesis. The act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. The government may intervene and file its own complaint in such a lawsuit. The whistleblowers will receive a combined $9.67 million as their share of the recovery in this case.
This matter was handled by the Civil Division’s Commercial Litigation Branch; the U.S. Attorneys’ Offices for the Northern District of California, the Northern District of Georgia, the Western District of Missouri, and the District of Nevada and HHS-OIG.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
The cases are docketed as United States, ex rel. Cretney-Tsosie v. Creekside Hospice II, LLC, Case No. 2:13-cv-167-HDM (D. Nev.); United States ex rel. McAree v. SunDance Rehabilitation Corp., Case No. 1:12-CV-4244 (N.D. Ga.); United States, ex rel. West v. Skilled Healthcare Group Inc., et. al., Case No. 11-02658-ED (N.D. Cal.); United States ex rel. Deaton v. Skilled Healthcare Group, Inc. et al., Case No. 4:14-cv-00219 (W.D. Mo.); and United States ex rel. Wilson v. Skilled Healthcare Group, Inc. et al., Case No. 14-cv-860 (W.D. Mo.).
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Nevada Business Owner Convicted of Evading Payment of Employment Taxes and PenaltiesRead the Press Release
A Las Vegas, Nevada business owner was convicted yesterday by a federal jury of tax evasion, 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.
According to the evidence presented at trial, Maria Larkin, 55, owned and operated Five Star Home Health Care Inc. (Five Star). Larkin was responsible for collecting, accounting for, and paying over income, social security, and Medicare tax withheld from her employees’ wages. From 2004 through 2009, Larkin did not pay over the employment taxes she withheld. The Internal Revenue Service (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.
Sentencing is scheduled for Sept. 13, 2017. Larkin faces a statutory maximum sentence of five years in prison, a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Myhre commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney John Mulcahy of the Tax Division and Assistant U.S. Attorney Alexandra Michael, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Nevada Business Owner Convicted of Evading Payment of Employment Taxes and PenaltiesRead the Press Release
LAS VEGAS, Nev. – A Las Vegas, Nevada business owner was convicted on Tuesday by a federal jury of tax evasion, 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.
According to the evidence presented at trial, Maria Larkin, 55, owned and operated Five Star Home Health Care Inc. (Five Star). Larkin was responsible for collecting, accounting for, and paying over income, social security, and Medicare tax withheld from her employees’ wages. From 2004 through 2009, Larkin did not pay over the employment taxes she withheld. The Internal Revenue Service (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.
Sentencing is scheduled for Sept. 13, 2017. Larkin faces a statutory maximum sentence of five years in prison, a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Myhre commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney John Mulcahy of the Tax Division and Assistant U.S. Attorney Alexandra 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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Three Men Sentenced for Multiple Cell Phone Store Armed RobberiesRead the Press Release
LAS VEGAS, Nev. – Three men from Las Vegas were sentenced on Tuesday to federal prison for their roles in a string of armed robberies of cell phone stores, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Fred Oaxaca, 20; Martin Garcia, 20; and Luis Cuevas, 22, were sentenced to 120 months, 120 months, and 85 months, respectively, by U.S. District Judge Richard F. Boulware II. Another defendant, Marcus Hammon, 22, was sentenced to 105 months by U.S. District Judge Kent J. Dawson on March 28, 2017.
On Dec. 13, 2016, Hammon pleaded guilty to one count of interference with commerce by robbery and one count of use of a firearm during and in relation to a crime of violence. On Dec. 15, 2016, Oaxaca pleaded guilty to three counts of interference with commerce by robbery and one count of use of a firearm during and in relation to a crime of violence; Garcia pleaded guilty to two counts of interference with commerce by robbery and one count of use of a firearm during and in relation to a crime of violence; and Cuevas pleaded guilty to one count of interference with commerce by robbery and one count of use of a firearm during and in relation to a crime of violence.
According to their individual plea agreements, on Feb. 16 and 25, 2016, Oaxaca, Garcia, and Cuevas committed a robbery of an AT&T store and a Verizon Wireless store. Hammon also participated in the Feb. 25, 2016 Verizon Wireless store robbery. During the course of the robberies, Oaxaca, Garcia, and Hammon brandished firearms and at gunpoint ordered the employees and customers to go to the rear of the store and to lay face down on the ground. They stole cell phones, electronics, and cash from the store and fled the scene in a vehicle being driven by Cuevas, who had remained outside.
In addition, Oaxaca admitted that, on Feb. 12 and 18, 2016, he and other co-conspirators committed robberies of two T-Mobile stores. During the course of the robberies, Oaxaca brandished a firearm and at gunpoint ordered the employees to go to the rear of the store and to lay face down on the ground. A co-conspirator then used a zip-tie to secure the employees’ hands behind their back. They stole cell phones, electronics, and cash from the store. In addition, the defendants admitted that the total loss attributed to all of the store robberies was in excess of $95,000, but less than $500,000.
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. The case was prosecuted by Assistant U.S. Attorney Phillip N. Smith Jr.
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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Former Las Vegas Strip Club Owner Pleads Guilty to Evading More Than $1.7 Million in Employment TaxesRead the Press Release
LAS VEGAS, Nev. – The former owner of a Las Vegas, Nevada strip club pleaded guilty today in U.S. District Court in the District of Nevada to evading 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.
According to documents filed with the court, Frederick John Rizzolo, 58, of Las Vegas, the former owner of The Crazy Horse Too, evaded paying more than $1.7 million in employment taxes that he owed for 2000 through 2002. 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 Too 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 lied to an IRS collections attorney, falsely stating that he had no income or assets and no ability to pay the taxes owed.
Sentencing is scheduled for Sept. 15, 2017. If the court accepts the parties’ agreement, Rizzolo will be sentenced to a period of 24 months in prison and will be ordered 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 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 Prison for Breaking and Entering into U.S. Postal Service Vehicle and Theft of MailRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was sentenced on Tuesday by U.S. District Judge Robert C. Jones to 18 months in prison for breaking and entering into a U.S. Postal Service vehicle and stealing mail from the vehicle, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Javier Encinas, 30, pleaded guilty on March 1, 2017, to one count of breaking or entering carrier facilities and one count of theft or receipt of stolen mail.
According to the plea agreement, on April 19, 2016, Encinas used a crow bar to break and enter into a locked U.S. Postal Service vehicle and steal trays of mail and 23 parcels. On April 20, 2016, Encinas was stopped by law enforcement in a stolen car. Inside that car law enforcement officers found approximately 471 items of stolen mail. During an interview with law enforcement, Encinas admitted to breaking into the back of the postal vehicle using a crow bar and stealing the mail.
The case was investigated by the U.S. Postal Service and prosecuted by Assistant U.S. Attorney Alexandra Michael.
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Sacramento Woman Sentenced for Making Counterfeit CurrencyRead the Press Release
RENO, Nev. – A California woman was sentenced today by U.S. District Judge Miranda M. Du to 15 months in prison for making counterfeit $100 bills, then spending the counterfeit money at businesses in Northern Nevada, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Yvonne Geneal Flores, 38, of Sacramento, Calif., pleaded guilty on Feb. 15, 2017, to one count of making counterfeit currency. Co-defendant Thomas Michael Morla, 42, pleaded guilty to making counterfeit currency and was sentenced on Oct. 31, 2016, to serve 18 months in prison.
According to the plea agreement, from Oct. 7, 2015 to May 5, 2016, Flores and Morla manufactured counterfeit $100 bills and spent the counterfeit money at various businesses in Reno, Sparks, and Carson City. In May 2016, law enforcement arrested Flores and Morla for possession of an embezzled rental car in Carson City. At the time of Morla’s arrest, he was in possession of counterfeit money. During the execution of a search warrant of Morla and Flores’ hotel room, law enforcement found equipment and supplies used to manufacture the counterfeit currency. Law enforcement collected approximately $50,000 in counterfeit $100 bills from businesses that can be attributed to Flores and Morla based on the similarities of the fraudulent notes.
The case was investigated by the U.S. Secret Service and the Carson City Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Brian L. Sullivan.
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Las Vegas Man Sentenced for Coercion and Enticement of Two Girls to Travel from Oregon to Nevada to Work as ProstitutesRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was sentenced today to 75 months in prison for coercing and enticing two girls to travel from Oregon to Nevada to work as prostitutes, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Anthony Antonio Lewis, 20, pleaded guilty on March 7, 2017, to one count of coercion and enticement. Co-defendant Johnny Le Andrew Hudson, 19, pleaded guilty on Feb. 2, 2017, to coercion and enticement, and he was sentenced on May 2, 2017, to 87 months in prison. United States District Judge Andrew P. Gordon presided over both of the sentencing hearings.
According to the plea agreement, Lewis admitted that, from Jan. 22 to 27, 2016, he coerced and enticed two minor girls to travel from Oregon to California and to Nevada to engage in prostitution. Lewis told one of the girls that by working as a prostitute she would be able to buy her own car, and that when she returned to Oregon, she would be able to get her own place to live. He advertised the girl through backpage.com, a website known for prostitution advertisements. The girl would give the money obtained through prostitution committed in California and Nevada to Hudson and Lewis.
The case was investigated by the FBI. The case was prosecuted by Assistant U.S. Attorneys Elham Roohani and Christopher Burton.
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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New Hampshire Man Sentenced to over Seven Years in Prison for Conspiracy to Commit an Offense Against the United States and Interstate Travel in Aid of Extortion During 2014 Armed Standoff in Bunkerville, NevadaRead the Press Release
LAS VEGAS, Nev. – A New Hampshire man who conspired with Cliven Bundy and others during an April 2014 armed standoff over Bundy’s trespassing cattle on public lands was sentenced today to 87 months in prison.
Acting United States Attorney Steven W. Myhre for the District of Nevada, Special Agent in Charge Aaron C. Rouse for the FBI Las Vegas Division, and Acting Director Michael D. Nedd of the Bureau of Land Management made the announcement.
Gerald A. DeLemus, 62, of Rochester, N.H., pleaded guilty on Aug. 25, 2016, to one count of conspiracy to commit an offense against the United States and one count of interstate travel in aid of extortion. In addition to the prison term, United States District Chief Judge Gloria M. Navarro sentenced DeLemus to three years of supervised release.
According to the plea agreement, on or about April 8, 2014, during a telephone conversation with co-defendant Cliven Bundy, DeLemus agreed to assist Bundy by bringing firearms and other gunmen from New Hampshire to Nevada to support Bundy. DeLemus admitted that when he travelled to Nevada, he joined in a conspiracy with Bundy and others to display force and aggression in order to influence federal law enforcement, thereby impeding or interfering with law enforcement’s official duties. On April 12, 2014, in furtherance of the conspiracy, at least one member of the conspiracy assaulted federal law enforcement officers by brandishing a firearm while the officers were performing impoundment operations in order to intimidate the officers and to instill in them fear and apprehension of immediate bodily injury or death. The armed assault forced the federal law enforcement officers to relinquish their custody of the impounded cattle to Bundy and members of the conspiracy.
DeLemus further admitted that, from April 13, 2014, and for weeks thereafter, in furtherance of the conspiracy, he provided personal security to Bundy and other conspirators, organized and led other gunmen in conducting patrols and manning security checkpoints, called for others to travel to Bunkerville, as a show of force in support of Bundy, and displayed firearms and made public statements to show and threaten force in order to influence a public officer.
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 Nicholas D. Dickinson and Nadia J. Ahmed, and Special Assistant U.S. Attorney Erin M. Creegan.
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Las Vegas Man Pleads Guilty to Stealing over $85,000 in Section 8 Housing Assistance BenefitsRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man pleaded guilty today for stealing more than $85,000 in public housing benefits over a six-year period and for providing false statements to a government agency, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Abdallah D. Hamey, 57, pleaded guilty before U.S. District Chief Judge Gloria M. Navarro to one count of theft of government property and five counts of false statement to a government agency.
According to the plea agreement, from August 2009 to April 2015, Hamey stole more than $85,000 in Section 8 public housing benefits. On at least seven applications for public housing assistance, Hamey falsely claimed that he held no bank accounts and possessed minimal assets. In fact, he owned and operated several businesses registered in his children’s names and controlled several business and personal bank accounts that together received approximately $1.7 million in deposits during the time he applied for public housing assistance. Based on the fraudulent applications, Hamey received Section 8 housing assistance to rent a house. During the same time he received housing assistance benefits, Hamey paid rent on four other houses in the Las Vegas area. In addition, he admitted to making five false statements to HUD officials.
Sentencing is scheduled for Aug. 18, 2017. Hamey faces the statutory maximum penalty of 10 years in prison and a $250,000 fine for the theft of government property charge and the statutory maximum penalty of five years in prison and a $250,000 fine for the false statement to a government agency charge.
The case is being investigated by the FBI, the U.S. Housing and Urban Development’s Office of the Inspector General (HUD-OIG), and the U.S. Secret Service. The case is being prosecuted by Assistant U.S. Attorney Dan Cowhig.
To report suspected fraud in a HUD program, call the HUD-OIG Hotline at 1-800-347-3735 (Toll-Free) or e-mail [email protected].
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Man Pleads Guilty to Coin and Jewelry Store Armed RobberyRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man pleaded guilty today to robbing a coin and jewelry store while pointing a gun at the elderly store owner and a customer, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Noah Patrick Fields, 22, pleaded guilty to one count each of interference with commerce by robbery and use of a firearm during and in relation to a crime of violence. United States District Judge James C. Mahan accepted the guilty plea and scheduled sentencing for Aug. 24, 2017.
According to admissions made in connection with his plea agreement, on Oct. 14, 2016, Fields and a co-conspirator robbed a coin and jewelry store at gunpoint. Fields admitted that he held a customer and the 90-year-old store owner at gunpoint while his co-conspirator stole $3,500 in cash and approximately $42,424 worth of valuable coins and silver and gold bullion from the front display case.
At the time of sentencing, Fields faces a maximum penalty of 20 years in prison and a $250,000 fine for interference with commerce by robbery and a mandatory minimum penalty of seven years in prison up to life in prison and a $250,000 fine for use of a firearm during and in relation to a crime of violence.
The case is being investigated by the FBI and the Las Vegas Metropolitan Police Department. The case is being prosecuted by Assistant U.S. Attorney Kilby Macfadden.
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Jury Convicts North Las Vegas Felon for Illegal Possession of A FirearmRead the Press Release
LAS VEGAS, Nev. – A North Las Vegas man was found guilty by a jury on Tuesday for a federal firearms violation, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Tajh Dion Weatherspoon, 27, was found guilty of one count of felon in possession of a firearm and shortly thereafter 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.
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.
United States District Judge Howard D. McKibben presided over the jury trial and scheduled sentencing for Sept. 19, 2017. At the time of sentencing, Weatherspoon faces a statutory maximum penalty of 20 years in prison.
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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Husband Sentenced to 10 Years in Prison for Stabbing Wife to Death on Fort McDermitt Indian ReservationRead the Press Release
RENO, Nev. – A member of the Fort McDermitt Paiute-Shoshone Tribe of Nevada and Oregon was sentenced on Monday to 120 months in prison for his conviction for voluntary manslaughter in his wife’s death at their home on the Fort McDermitt Indian Reservation, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada. His wife was a member of the Te-Moak Tribe of the Western Shoshone.
Following a six-day jury trial, Nelson Ray McKee, 45, was found guilty of voluntary manslaughter. According to the indictment, on Dec. 31, 2014, McKee stabbed his wife in the chest which resulted in her death. United States District Judge Robert C. Jones presided over the jury trial and sentencing hearing.
The case was investigated by the Bureau of Indian Affairs, Humboldt County Sheriff’s Office, and FBI. The case was prosecuted by Assistant U.S. Attorneys Shannon M. Bryant and Carla B. Higginbotham.
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Las Vegas Man Sentenced to 13 Years in Prison for Three Armed Commercial RobberiesRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was sentenced to 156 months in prison for robbing three businesses and for brandishing a firearm during the robberies, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Oscar Hernandez-Lopez, 24, pleaded guilty to one count of conspiracy to interfere with commerce by robbery, one count of brandishing a firearm during a crime of violence and three counts of interfering with commerce by robbery. In addition to the prison term, U.S. District Judge Jennifer A. Dorsey sentenced Hernandez-Lopez to five years of supervised release and to pay a criminal money judgment in the amount of $1,500.
According to the plea agreement, from Dec. 19, 2014 to about Jan. 7, 2015, Hernandez-Lopez conspired with others to rob various stores in Las Vegas. On Dec. 21, 2014, he entered a Speedee mart, produced a firearm and demanded money from an employee and a customer. On Jan. 5, 2015, he entered a Boost Mobile Store, produced a firearm and demanded money. On Jan. 7, 2015, Hernandez-Lopez, dressed in a black hoodie, a black ski mask, and gloves, ran inside a Metro PCS store, jumped over the counter, pointed a handgun at an employee and said, “give me all the money.” Shortly after the Metro PCS robbery, Las Vegas Metropolitan Police Department officers stopped the vehicle Hernandez was driving and observed in plain view clothing that was consistent with those worn during the robberies. A search warrant was executed on the vehicle. During that time, Hernandez-Lopez admitted to participating in various robberies of local stores.
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. The case was prosecuted by Assistant U.S. Attorney Alexandra Michael.
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Las Vegas Man Pleads Guilty to Committing Two Armed Robberies in the Same WeekRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man who committed two armed robberies in the Las Vegas Valley in the same week pleaded guilty today, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Walid H. Abdulla, 65, pleaded guilty to one count each of bank robbery and interference with commerce by robbery. United States District Judge Howard D. McKibben accepted the guilty plea and scheduled sentencing for Sept. 19, 2017.
According to admissions made in his plea agreement, on Jan. 30, 2017, Abdulla approached a clerk at a CVS Pharmacy 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. Then, on February 6, Abdulla entered a Nevada State Bank 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. Abdulla was identified as the robber by the victims of his crimes, 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 is being investigated by the FBI and the Las Vegas Metropolitan Police Department. The case is being prosecuted by Assistant U.S. Attorney Kilby Macfadden.
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Las Vegas Man Sentenced to over 13 Years in Prison for Conspiracy to Travel for Sex with Minors and Possession of Child PornographyRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man, who conspired to travel to Michigan for sex with two minors and who was in possession of approximately 6,000 images of child pornography and approximately 300 videos of child pornography, was sentenced today to 160 months in prison, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Bryon Quackenbush, 43, pleaded guilty to one count each of conspiracy to travel with the intent to engage in illicit sexual contact and possession of child pornography. United States District Judge Kent J. Dawson presided over the sentencing hearing.
According to admissions made in the plea agreement, Quackenbush chatted extensively over the internet with co-defendant Robert Norwood-Charlier, who was under investigation for production, distribution, and possession of child pornography, and co-defendant Ryan Lively about pedophilia and their membership in “Guardians,” a fantasy-universe group that discusses “mind control’ over others. They also shared sexually explicit images and videos of children with each other. During an interview with law enforcement, Quackenbush admitted that he traveled to Kalamazoo, Mich., knowing Norwood-Charlier both produce child pornography and perform sexual acts on children. Furthermore, Quackenbush admitted that he received copies of videos from Norwood-Charlier of children being sexually exploited. During a search warrant of Quackenbush’s residence, law enforcement seized computers and numerous electronic devices. A forensic evaluation found approximately 6,000 images and approximately 300 videos of minors engaged in sexually explicit conduct.
The case was investigated by the FBI and the Internet Crimes Against Children Task Force; and prosecuted by Assistant U.S. Attorney Cristina D. Silva.
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 Pleads Guilty to Investment Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man who falsely represented himself to be a successful securities trader and investor pleaded guilty today to stealing monies as part of an investment fraud scheme, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Sean Christopher Sladek, 40, pleaded guilty to one count of wire fraud. United States District Judge Jennifer A. Dorsey scheduled sentencing for Aug. 14, 2017. At the time of sentencing, Sladek faces a maximum of 20 years in prison.
According to the plea agreement, Sladek admitted that he falsely and with intent to defraud represented himself as a successful securities trader and investor. In fact, he was not a successful securities trader or investor. On or about May 9, 2013, he caused and intended to cause a victim in California to transfer $100,000 to him. He told the victim that the monies would generate positive returns through trading, securities transactions, and/or investment in securities. Sladek did not generate positive returns and had no intent to do so.
Furthermore, Sladek agreed to make restitution in the amount of $1,427,923, for losses caused by his criminal investment fraud scheme, and he agreed to pay a criminal forfeiture money judgment in the amount of $2,638,143.
The case is being investigated by the FBI, and prosecuted by Assistant U.S. Attorney Jared Grimmer.
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Reno Man Indicted for Sexual Exploitation of an Infant and Distribution of Child PornographyRead the Press Release
RENO, Nev. – A Reno man was indicted on Wednesday for the sexual exploitation of an infant and distribution of child pornography, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Derrick Joseph Rady, 35, was charged with one count each of sexual exploitation of a minor and distribution of child pornography. If convicted, the mandatory minimum sentence for sexual exploitation of a minor is 15 years and a maximum of 30 years, and the mandatory minimum sentence for distribution of child pornography is five years and a maximum of 20 years.
As alleged in the indictment, on or about Jan. 27, 2017, Rady used an approximately one-year-old infant to engage in sexually explicit conduct for the purpose of producing and distributing child pornography. According to the complaint, Facebook and Google both reported possible child pornography on their sites to the National Center for Missing and Exploited Children. During the execution of a search warrant at Rady’s residence, the Northern Nevada Child Exploitation Task Force seized multiple electronic devices containing child pornography and a mobile phone that was later identified as the device used to create the child pornography.
“It is a high priority of the FBI to protect the most vulnerable in our society: our children,” said Aaron C. Rouse, FBI Las Vegas Special Agent in Charge. “Every time child pornography is viewed on the internet it re-victimizes a child.”
The case is being 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 case is being prosecuted by Assistant U.S. Attorney Shannon M. Bryant.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
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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Five-Time Felon Sentenced to 20 Years for Possession of A Firearm and AmmunitionRead the Press Release
LAS VEGAS, Nev. – A five-time felon was sentenced today by United States District Judge Kent J. Dawson to 235 months in prison for possession of a firearm and possession of ammunition, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Following a jury trial in October 2016, Mario Jacob Sapp, 40, of Las Vegas, was found guilty of one count each of felon in possession of a firearm and felon in possession of ammunition. At the time of trial, Sapp had five prior felony convictions, including two prior convictions for being a felon in possession of a firearm, a conviction for battery with a deadly weapon resulting in substantial bodily harm, and a conviction for conspiring to manufacture methamphetamine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Las Vegas Metropolitan Police Department. The case was prosecuted by Assistant U.S. Attorneys Phillip N. Smith, Jr. 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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Las Vegas Man Sentenced to over Seven Years in Prison for Telemarketing Scam Targeting ElderlyRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was sentenced today to 88 months in prison for targeting the elderly as part of a telemarking scam that resulted in the loss of nearly $1.2 million, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Willie James Montgomery, 43, pleaded guilty to one count of conspiracy to commit wire or mail fraud before U.S. District Judge James C. Mahan on Oct. 25, 2016.
According to the plea agreement, from Nov. 24, 2008 to Sept. 5, 2013, Montgomery admitted that he conspired with others to obtain “lead sheets.” A lead sheet identifies persons who had previously entered sweepstakes, lotteries, or other prize-drawing contests, and thus were susceptible to misrepresentations regarding potentially winning a prize, sweepstakes, or lottery. Montgomery and others falsely portrayed themselves as being an official of a lottery or sweepstakes committee or an official of the IRS and told the victims that they had won a prize or lottery, and, in order to receive the prize, they must first send payments in the form of checks, money orders, wire transfers, or cash. Montgomery knew that the victims had not won a prize or lottery and instead kept these advance payments for his own purposes. In order to conceal the scheme, Montgomery and others would direct the victims to send the money to individuals referred to as “runners,” i.e., people who would receive the money wires, cash, checks or money orders and then provide the criminal proceeds to Montgomery and his other co-conspirators. Montgomery further admitted that he and his co-conspirators made calls to at least 66 victims in at least 22 states. Through this scheme, he and his co-conspirators were able to obtain at least 56 MoneyGram wire transfers, totaling approximately $96,983, and 181 Western Union money wires, totaling at least $366,238. In total, the scheme caused losses to victims in the amount of approximately $1.2 million.
The case was investigated by the U.S. Treasury Inspector General for Tax Administration and the United States Postal Inspection Service. The case was prosecuted by Assistant U.S. Attorney Patrick Burns.
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Las Vegas Sports Betting Personality Indicted for Misuse of Social Security Numbers and Concealing Taxable WinningsRead the Press Release
LAS VEGAS, Nev. – David Nakama Oancea, aka “Vegas Dave,” 40, of Las Vegas, a Las Vegas sports betting personality, was indicted on Wednesday by a federal grand jury, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
The indictment charges Oancea with nine counts of misuse of Social Security Numbers and 10 counts of causing false currency transaction reports to be filed based on the false Social Security Numbers.
As alleged in the indictment, Oancea placed sports bets for himself and others at casinos and sports books. He opened player accounts by providing the casinos and sports books with social security numbers assigned to others or to no one, but represented to the casinos that the social security numbers were his. When Oancea placed bets or collected winnings of more than $10,000, he caused the casinos and sports books to prepare and submit false Currency Transaction Reports containing false and fraudulent social security numbers. It is further alleged that Oancea caused casinos and sports books to prepare and file at least 137 false Currency Transaction Reports. The indictment seeks forfeiture of $551,318.20 from Oancea.
The case is being investigated by the Las Vegas Financial Crimes Task Force consisting of members of the IRS-Criminal Investigations, the Nevada Attorney General’s Office, the Henderson Police Department, and the Nevada Gaming Control Board. The case is being prosecuted by Assistant U.S. Attorney Kilby Macfadden.
Husband and Wife Tax Preparers Indicted for Conspiracy to Prepare False Federal Income Tax ReturnsRead the Press Release
RENO, Nev. – Two tax return preparers were charged on Wednesday with conspiring to defraud the United States and preparing false federal income tax returns, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Thomas Michael Bidegary, 66, and Ginger A. Bidegary, 56, both of Winnemucca, Nev., are each charged with one count of conspiracy to defraud the United States. In addition, Thomas is charged with seven counts of aiding and assisting in the preparation of false federal income tax returns, and Ginger is charged with three counts of aiding and assisting in the preparation of false federal income tax returns.
According to the indictment, Thomas Bidegary is a former IRS employee who operated Winnemucca Tax and Bookkeeping Service, a tax preparation business, located in Winnemucca, Nevada. He and his wife, Ginger, were involved in the preparation of federal income tax returns. As alleged, the Bidegary’s conspired with each other to prepare and file false and fraudulent individual income tax returns. Beginning in at least 2009 and continuing through 2014, the Bidegary’s advised clients that by making small monetary “investments” into various businesses the Bidegary’s owned, the clients could decrease their annual taxable income and increase their tax refunds. As part of the scheme, in instances when clients provided “investment” funds, the Bidegary’s would prepare false tax forms for the corresponding tax year that included large fictitious business losses in order to reduce the client’s taxable income and obtain a larger refund than what the client was entitled to receive.
If convicted, the Bidegary’s face a statutory maximum sentence of five years in prison for conspiracy and three years for each count of preparing false tax returns. They also face a term of supervised release, restitution, and monetary penalties.
The case is being investigated by the IRS-Criminal Investigations. The case is being prosecuted by Assistant U.S. Attorney Carla Higginbotham.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
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Nevada Tax Return Preparer Indicted for Filing False Tax ReturnsRead the Press Release
A Las Vegas, Nevada return preparer was indicted today for filing false tax returns, 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.
According to the indictment, from 2010 through 2011, Ofelia Ronquillo prepared income tax returns through a business known as A.R. Financial LLC and later AJRC Tax Services, in Las Vegas. The indictment alleges that Ronquillo included false items on her clients’ tax returns to include bogus charitable contributions, education expenses and unreimbursed employee expenses – such as mileage, meals and other transportation expenses, as well as claimed inflated refunds to which they were not entitled.
An indictment merely alleges that crimes have been committed. Defendants are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, 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.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Myhre 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.
Nevada Tax Return Preparer Indicted for Preparing False Tax ReturnsRead the Press Release
LAS VEGAS, Nev. – A Las Vegas, Nevada return preparer was indicted today for preparing false tax returns, 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.
According to the indictment, from 2010 through 2011, Ofelia Ronquillo prepared income tax returns through a business known as A.R. Financial LLC and later AJRC Tax Services, in Las Vegas. The indictment alleges that Ronquillo included false items on her clients’ tax returns to include charitable contributions, education expenses and unreimbursed employee expenses – such as mileage, meals and other transportation expenses, and claimed inflated refunds to which they were not entitled.
An indictment merely alleges that crimes have been committed. Defendants are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, 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.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Myhre 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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Children's Ski School Employee Charged with Child Exploitation and Possession of Child PornographyRead the Press Release
RENO, Nev. – An employee at a children’s ski school at a ski resort in South Lake Tahoe, Calif., was charged today with child exploitation and possession of child pornography, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Stephan L. DeGraffenreid, 26, of Gardnerville, Nev., was charged with one count of sexual exploitation of a child, two counts of attempted sexual exploitation of a child, and one count of possession of child pornography. If convicted, the mandatory statutory minimum penalty is 15 years in prison for each of the sexual exploitation and attempted sexual exploitation charges.
According to a criminal complaint, 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, law enforcement learned the iPod belonged to DeGraffenreid who was an employee at the Children’s Ski School. During the execution of a search warrant at his residence, officers located a thumb drive that contained explicit images of children in a Gardnerville, Nev., day care facility restroom. DeGraffenreid admitted to downloading and possessing the child pornography.
The case is being investigated by the FBI, the Washoe County Sheriff’s Office, and the El Dorado County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Shannon M. Bryant.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
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Pahrump Man Sentenced to Six Years for $35 Million Penny Stock Fraud SchemeRead the Press Release
Las Vegas, Nev. – One of the members involved in a penny stock fraud conspiracy that defrauded investors of over $35 million was sentenced today to 72 months in prison, announced Acting U.S. Attorney Steven W. Myhre.
Jeffrey Turino, 60, of Pahrump, was charged in an indictment with conspiracy to commit securities fraud and securities fraud in connection with a penny stock fraud scheme.
On Aug. 22, 2016, Turino pleaded guilty to conspiracy to commit securities fraud. According to the plea agreement, beginning in about 1997 continuing until about March 2010, Turino conspired with others to fraudulently issue, offer, and sell stock issued by corporate shells which they controlled, including World Wide Cannery and Distribution, Global Diamond Exchange, Inc., Equitable Mining Corporation, ODMA Oil and Gas, Inc. and Grand Entertainment and Music, Inc. Additionally, Turino and conspirators engaged in deceptive practices and issued misleading press releases to promote these companies and to give the impression that they were actively engaged in the importation and sale of products, when in truth, the companies were hollow shells that did not engage in regular or substantial business activities, did not produce any goods, services, or profits, and did not commercially import products as promoted in their news releases. According to the plea agreement, Turino and his conspirators fraudulently induced investors to purchase billions of unregistered shares of stock in the companies, which the conspirators had deceptively issued without requisite restrictions and disclosures. Although these penny stocks typically traded for less than one cent per share, the billions of shares of stock that the conspirators offered and sold in the public market yielded proceeds of more than $35 million, which was divided and distributed among Turino and the other conspirators.
In addition to the prison incarceration, U.S. District Judge Jennifer Dorsey sentenced Turino to five years of supervised release and ordered him to pay $35 million in restitution.
The case was investigated by the FBI and IRS-Criminal Investigation; and prosecuted by Assistant U.S. Attorney Kathryn Newman.
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Physician and Medical Assistant Convicted of Conspiracy to Distribute Large Quantities of Oxycodone for Non-Medical NecessityRead the Press Release
LAS VEGAS, Nev. – Dr. Henri Wetselaar, MD, 93, and David A. Litwin, 58, were found guilty of conspiracy to distribute and distribution of oxycodone and other controlled substances, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
According to the indictment, Wetselaar was a Nevada physician practicing as a specialist in pain management. Litwin was alleged to be his medical assistant.
According to the indictment, Wetselaar and Litwin conspired with each other and local drug dealers to distribute the prescription drugs in and around Las Vegas. Wetselaar prescribed large amounts of highly addictive prescription drugs, including oxycodone, hydrocodone, Xanax and Soma, to persons for no legitimate medical purpose.
Following a 10-week jury trial, Wetselaar and Litwin were found guilty of conspiracy to distribute controlled substances and distribution of controlled substances. In addition, Wetselaar was found guilty of money laundering and structuring of money transactions.
Sentencing is scheduled for June 21, 2017, before U.S. District Judge Kent Dawson. At the time of sentencing, Wetselaar and Litwin each face a mandatory prison sentence of 20 years in prison and a $1,000,000 fine.
The case was investigated by the Drug Enforcement Administration, the FBI, and Internal Revenue Service-Criminal Investigation; and prosecuted by Assistant U.S. Attorneys Cristina Silva and Andrew Duncan.
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Henderson Man Sentenced to 10 Years for Coercion and Enticement of A MinorRead the Press Release
LAS VEGAS, Nev. – A Henderson, Nevada man was sentenced by U.S. District Judge Andrew P. Gordon to 120 months in prison for coercion and enticement of a minor to engage in illegal sexual activity, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
On Nov. 9, 2016, following a two-day trial, Kenneth Gordon Wescott, 55, was convicted by a jury of one count of coercion and enticement of a minor. According to the indictment, on or about Dec. 12, 2013 and Jan. 4, 2014, Wescott knowingly coerced and enticed a minor to engage in sexual activity.
The case was investigated by the FBI and the Henderson Police Department; and prosecuted by Assistant U.S. Attorneys Kilby C. Macfadden, Cristina D. Silva, and Elham Roohani.
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 Pleads Guilty to Conspiracy to Commit $5.3 Million in Advance Fee Grant Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man pleaded guilty today to conspiracy to commit a nearly $5.3 million advance fee fraud scheme targeting small business owners seeking grant funding, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Gregory Villegas, 37, pleaded guilty to conspiracy to commit wire fraud. He was indicted by a superseding indictment on Jan. 13, 2016. Sentencing is scheduled for June 30, 2017, before U.S. District Chief Judge Gloria M. Navarro.
As part of the guilty plea agreement, Villegas admitted that, together with co-conspirators Christine Gagnon, Mickey Gines, and others, he defrauded at least 390 victims for a total approximate loss of $5,261,218, between March 1, 2008 and about May 2, 2012. According to the plea agreement, Villegas and conspirators ran an advance fee scheme to defraud small business owners by pretending to operate companies that would obtain grants for the small business owners from public and private sources. In truth, Villegas and conspirators never intended to pursue any grant funding for the victims. The sole purpose of the scam was to enrich Villegas and conspirators. The plea agreement states that Villegas and conspirators repeatedly solicited victims for additional money for goods and services, and made numerous false statements, including false promises of grant funding and excuses for delays in funding. Villegas admitted that he directed staff to use aliases and operated under multiple business names to avoid lawsuits, actions by consumer protection agencies, and apprehension by law enforcement.
At the time of sentencing, Villegas will face the statutory maximum penalty of 20 years in prison and a $250,000 fine. Gagnon pleaded guilty on Nov. 17, 2014, and awaits sentencing scheduled for April 14, 2017; and Gines pleaded guilty on Feb. 2, 2015, and awaits sentencing scheduled for June 22, 2017.
The case is being investigated by the FBI and U.S. Secret Service; and prosecuted by Assistant U.S. Attorney Dan Cowhig.
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Twenty-One Defendants Charged in Multimillion Dollar International Counterfeit Credit and Debit Card Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – Twenty-one individuals were charged in an indictment for their alleged roles and participation in an international multimillion dollar scheme to steal credit and debit card account information, manufacture counterfeit credit and debit cards, identity theft, and money laundering. The charges are the result of a ten-month investigation by local, state, and federal law enforcement and the Department of State.
United States Attorney Daniel G. Bogden of the District of Nevada; Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division; Special Agent in Charge Michael Bishop of the Diplomatic Security Service’s Los Angeles Field Office; Sheriff Joseph Lombardo of the Las Vegas Metropolitan Police Department; and Chief Patrick E. Moers of the Henderson Police Department made the announcement.
“The sophisticated multimillion dollar fraud scheme occurred in Las Vegas, multiple other states, and crossed international borders,” said U.S. Attorney Bogden. “These charges are another successful example of our commitment to working together with local, state, and federal law enforcement partners in the pursuit and prosecution of perpetrators who commit credit card fraud, identity theft, and money laundering.”
“These indictments demonstrate the unified commitment of law enforcement to stop those who target our community through the theft of our personal and financial data. Those who commit such acts should take notice that you will be caught,” said SAC Rouse of the FBI’s Las Vegas Division.
“The Diplomatic Security Service is firmly committed to working with the U.S. Department of Justice and our local law enforcement partners in Nevada to investigate and prosecute all allegations of criminal activity related to passport and visa fraud,” said SAC Bishop of the U.S. Department of State’s Diplomatic Security Service Los Angeles Field Office. “The strong relationship we enjoy with our federal and local law enforcement partners is vital towards ensuring the integrity of U.S. travel documents and protecting greater U.S. interests.”
According to the allegations in the 47-count indictment, from at least Jan. 1, 2013, to about Dec. 9, 2016, the defendants conspired to commit credit and debit card fraud by using “skimmers” placed on automatic teller machines (ATM), cash-out transaction ticket dispensing terminals, such as Global Cash Advance (GCA), and other means to obtain stolen account information. They set-up credit card forgery “laboratories” in residences and hotel rooms to manufacture counterfeit credit and debit cards. Equipment in the laboratories included counterfeit card production systems, thermal dye printers, foil tipping machines, card embossers, and card scanners and encoders.
It is further alleged that the defendants possessed and used the counterfeit credit and debit cards at hotel-casinos, high-end luxury watch, jewelry, and fashion boutiques, electronic retailers, and ATMs throughout Las Vegas, Nevada and in other cities and counties around the country, including: Del Mar, California, Detroit, Michigan, New Orleans, Louisiana, Nassau County, New York, Biloxi, Mississippi, and Atlantic City, New Jersey. They obtained GCA cash advances at casinos, and purchased expensive merchandise, including Rolex watches, ladies’ purses and handbags, and clothing. The purchases would be resold on the black market or online marketplaces. The approximate total loss is over $3.5 million in fraudulent retail purchases and cash advances and withdrawals at hotel-casino properties and other businesses.
In addition, the defendants allegedly possessed and used personal identification of other individuals. The defendants allegedly conspired to commit money laundering and made deposits into bank accounts with money obtained through the fraudulent credit and debit card scheme.
The indictment charges the defendants with conspiracy to commit fraud and related activity in connection with access devices; producing, using or trafficking in a counterfeit access device; using or trafficking in an unauthorized access device; possession of 15 or more counterfeit or unauthorized access devices; possession of access device-making equipment; aggravated identity theft; possession of counterfeit Visa, permit or other document; conspiracy to commit money laundering; and money laundering. The indictment charges the following 21 defendants:
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Lucas Coehlo Paiva Rego, 25
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Fausto Teixeira Martins Neto, 36
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Andre Araujo Rodrigues, 33
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Anderson Clayton Mariano Alcantara, 26
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Carlos Rodrigo Dos Santos Braga, 36
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Bruno Macedo Correia, 26
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Pedro Igor Alves Barbosa, 21
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Vitor Domingues Valentini Dos Reis, 25
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Bruno Dos Santos, 31
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Amysterdan Barbosa Da Silva, 34
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Alexander Lima De Souza, 38
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Francisco Rui De Alencar Mendes Filo, 26
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Davi Dias Fernandes, 26
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Shiro Noburo Naruse, 24
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Hugo Belmino Garces, 27
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Lorenzo Ramon Sala Moura, 39
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Marcelo Araujo, 34
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Henrique Ortolani De Souza Vila Real, 31
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Leonardo Augusto Oliveira Santos, 33
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Rogerio Belarmino Da Silva, 31
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Felipe Augusto Vecale Martins, 38
If convicted, the defendants face a maximum statutory penalty of 20 years in prison. In addition, they face fines in the amount of $250,000.
These charges are the result of cooperative, investigative efforts by the FBI, Department of State’s Diplomatic Security Service, Las Vegas Metropolitan Police Department, and Henderson Police Department. The case is being prosecuted by Assistant U.S. Attorney Patrick Burns.
An indictment is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Internet Business Owner Indicted for Selling Non-FDA Approved and Misbranded Versions of Botox and Juvederm Related ProductsRead the Press Release
LAS VEGAS, Nev. – The owner and operator of numerous beauty product websites was arrested and charged in a 25-count indictment for selling misbranded drugs and misbranded medical devices, announced U.S. Attorney Daniel G. Bogden for the District of Nevada and Special Agent in Charge William Conway for the FDA Office of Criminal Investigations’ Chicago Field Office.
“The Nevada U.S. Attorney’s Office is committed to protecting consumers and ensuring that products being sold at stores and online in the United States are safe and in accordance with federal law,” said U.S. Attorney Bogden. “We will continue to work with the FDA to ensure the publics’ health is not compromised.”
"U.S. consumers rely on the FDA to ensure that the medical products they use are safe and effective," said Special Agent in Charge Conway. "Our office will continue to pursue and bring to justice those who attempt to introduce illegal products into the U.S. marketplace."
Kelly Luanne Schaible, aka Kelly Reed, aka Heather Lane, 55, of Henderson, Nev., was charged with nine-counts of wire fraud, six-counts of mail fraud, four-counts of introduction of misbranded drugs into interstate commerce, five-counts of introduction of misbranded medical devices into interstate commerce, and one-count of destruction of evidence. Trial is scheduled for May 8, 2017.
According to the indictment, from 2009 to 2014, Schaible owned and operated AAE d/b/a Basics, Inc.; Basics, Inc.; and Basics Inc., Ltd. The companies’ websites sold various beauty products related to weight loss, hair loss, skin care, eyelashes, and wrinkle reduction.
The indictment alleges that Schaible knowingly marketed, sold, and distributed non-FDA approved prescription drugs containing Botulinum Toxin Type A, also known as Botox, and non-FDA approved prescription devices containing hyaluronic acid, also known as Juvederm related products. Schaible obtained these products from distributors in China and knew it was illegal to import such products into the United States. She made various representations that were intended to lead customers to believe that the products and devices she sold were equivalent to genuine Botox and Juvederm and that a customer could administer the products in a “do it yourself” fashion without a prescription. She mislabeled the products and shipped the misbranded drugs to customers throughout the United States and to other countries. Schaible sold approximately 9,500 units of misbranded prescription drugs containing Botulinum and received approximately $1.7 million in sales revenue. She also sold approximately 4,000 units of misbranded Juvederm products and received approximately $630,000 in sales revenue.
The indictment further alleges that after a search and seizure by FDA Special Agents, Schaible attempted to destroy a plastic bag containing vials of Botulinum for the purpose of preventing and impairing the investigation.
The maximum statutory penalty for wire fraud and mail fraud is up to 20 years in prison and a $250,000 fine; the maximum statutory penalty for introducing misbranded drugs and misbranded devices into interstate commerce is three years in prison and a $10,000 fine; and the maximum statutory penalty for destruction of evidence is five years in prison and a $250,000 fine.
The case is being investigated by the Food and Drug Administration-Office of Criminal Investigations; and prosecuted by Assistant U.S. Attorney Carla B. Higginbotham.
The public is reminded that an indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty in a court of law.
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Reno Man Sentenced to 15 Years for Conspiracy to Provide Material Support to TerroristsRead the Press Release
RENO, Nev.— Balwinder Singh, 41, was sentenced today by U.S. District Judge Larry R. Hicks to 180 months in prison for conspiracy to provide material support and resources to terrorists for a movement to create an independent Sikh state in the Punjab region of Indian, announced Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Daniel G. Bogden for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division.
“The JTTF investigation led to the discovery of a Reno resident who was a member of two terrorist groups and provided material support to intimidate the Indian government and to harm persons that were not supporting the terrorism groups’ cause,” said U.S. Attorney Bogden. “This case is an example of multi-law enforcement agencies working collaboratively together to protect the United States and our foreign allies from a terrorist act.”
“The sentence imposed today sends a clear message: Members of the FBI’s Joint Terrorism Task Force will work vigorously to uncover and stop any efforts to provide monetary or material support to organizations created to do murder,” said FBI SAC Rouse. “This investigation clearly highlights the magnitude and importance of the law enforcement community’s commitment to combatting terrorism and keeping our nation safe.”
Singh, aka Jhaji, aka Happy, aka Possi, aka Baljit Singh, is a citizen of India and a permanent U.S. resident. Singh pleaded guilty on Nov. 29, 2016.
According to court documents, between September 2013 and Dec. 17, 2013, Singh conspired with others to support terrorist attacks in India as part of a movement to create an independent Sikh state in the Punjab region of India. Singh agreed to provide material support by helping facilitate a co-conspirator’s travel to and within South Asia; to provide necessary funding; and to provide materials necessary to carry out the attack. On occasions, Singh traveled from Reno to California to meet a co-conspirator in person.
In October 2013, Singh and co-conspirators agreed that one co-conspirator would travel to India and commit a terror attack – likely an assassination or maiming of an Indian governmental official. The final target would be determined after the co-conspirator arrived in South Asia.
In November 2013, Singh purchased two sets of night vision goggles and a laptop computer. In December 2013, he provided these items to a co-conspirator who was going to carry out the planned terror attack. On Dec. 9, 2013, the co-conspirator attempted to board a flight from the San Francisco International Airport to Bangkok, Thailand in order to carry out the terror attack with the night vision goggles provided to him by Singh. United States law enforcement prevented the co-conspirator from boarding that flight. As a result, the planned terror attack never occurred. After these events, Singh and his co-conspirators continued to discuss and plan the terror attack in India until Singh’s arrest.
The case was investigated by the FBI-led Joint Terrorism Task Force in northern Nevada. The northern Nevada JTTF is comprised of the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Naval Criminal Investigative Service and Nevada Department of Investigation. In addition, ATF, U.S. Citizenship and Immigration Services, and the Washoe County Sheriff’s Office provided assistance in the investigation.
Assistant U.S. Attorneys Sue Fahami, Brian L. Sullivan, Carla Higginbotham, and Trial Attorney Mara M. Kohn of the National Security Division’s Counterterrorism Section prosecuted the case.
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Nevada Man Sentenced to 15 Years for Conspiracy to Provide Material Support to TerroristsRead the Press Release
Balwinder Singh, aka Jhaji, aka Happy, aka Possi, aka Baljit Singh, 42, of Reno, Nevada, was sentenced today to 15 years in federal prison for conspiracy to provide material support and resources to terrorists.
Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Daniel G. Bogden for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division made the announcement.
“The JTTF investigation led to the discovery of a Reno resident who was a member of two terrorist groups and provided material support to intimidate the Indian government and to harm persons that were not supporting the terrorism groups’ cause,” said U.S. Attorney Bogden. “This case is an example of multi-law enforcement agencies working collaboratively together to protect the United States and our foreign allies from a terrorist act.”
“The sentence imposed today sends a clear message: Members of the FBI’s Joint Terrorism Task Force will work vigorously to uncover and stop any efforts to provide monetary or material support to organizations created to do murder,” said Special Agent in Charge Rouse. “This investigation clearly highlights the magnitude and importance of the law enforcement community’s commitment to combatting terrorism and keeping our nation safe.”
Singh is a citizen of India and a U.S. permanent resident. Singh pleaded guilty on Nov. 29, 2016. He was charged on Dec. 18, 2013.
According to court documents, between September 2013 and Dec. 17, 2013, Singh conspired with others to support terrorist attacks in India as part of a movement to create an independent Sikh state in the Punjab region of India. Singh agreed to provide material support by helping facilitate a co-conspirator’s travel to and within South Asia; to provide necessary funding; and to provide materials necessary to carry out the attack. On occasions, Singh traveled from Reno to California to meet a co-conspirator in person.
In October 2013, Singh and co-conspirators agreed that one co-conspirator would travel to India and commit a terror attack – likely an assassination or maiming of an Indian governmental official. The final target would be determined after the co-conspirator arrived in South Asia.
In November 2013, Singh purchased two sets of night vision goggles and a laptop computer. In December 2013, he provided these items to a co-conspirator who was going to carry out the planned terror attack. On Dec. 9, 2013, the co-conspirator attempted to board a flight from the San Francisco International Airport to Bangkok, Thailand in order to carry out the terror attack. He had with him the night vision goggles provided to him by Singh. U.S. law enforcement prevented the co-conspirator from boarding that flight. As a result, the planned terror attack never occurred. After these events, Singh and his co-conspirators continued to discuss and plan the terror attack in India until Singh’s arrest.
This case was investigated by the FBI-led Joint Terrorism Task Force (JFFT) in northern Nevada. The northern Nevada JTTF is comprised of the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Naval Criminal Investigative Service and the Nevada Department of Investigation. The ATF, U.S. Citizenship and Immigration Services and the Washoe County Sheriff’s Office in Nevada also provided assistance in the investigation.
Assistant U.S. Attorneys Sue Fahami, Brian L. Sullivan and Carla Higginbotham of the District of Nevada, and Trial Attorney Mara M. Kohn of the National Security Division’s Counterterrorism Section prosecuted the case.
Nevada Liquor Store Owner Sentenced to Prison for Conspiring to Defraud the United States and Tax EvasionRead the Press Release
Jeffrey Nowak, a Las Vegas, Nevada liquor store owner was sentenced to serve 41 months in prison for conspiring to defraud the United States and tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Daniel G. Bogden for the District of Nevada.
According to the evidence introduced at trial and documents filed with the court, Nowak, 67, and Ramzi Suliman jointly owned and operated liquor stores in Las Vegas. At their first liquor store, Super Liquor Store South Strip, Nowak and Suliman skimmed cash receipts and maintained a double set of books in order to underreport income to the Internal Revenue Service (IRS). One set of books accurately reflected the store’s sales, while a second set of books fraudulently omitted nearly $4 million in cash receipts that had been actually received by the business. Nowak and Suliman provided the phony set of books to their accountant, causing him to create corporate tax returns that did not fully report the liquor store’s gross receipts and taxable income. Nowak and Suliman also caused their true personal income to be concealed on their individual income tax returns.
“Everyone is legally required to accurately report and pay taxes on their income – cash sales are not an opportunity to skirt this obligation,” said Acting Deputy Assistant Attorney General Goldberg. “Nowak’s prison sentence makes clear that taxpayers cannot hide behind a double set of books.”
“The defendant intentionally concealed the store’s income by conspiring to skim cash and keeping two sets of account books,” said U.S. Attorney Bogden. “As a result, he cheated the U.S. Treasury and taxpayers. The U.S. Attorney’s Office is committed to working together with the IRS to pursue and prosecute perpetrators who choose to violate tax laws for their own benefit. Financial fraud is a top priority.”
In addition to the term of prison imposed, Nowak was ordered to serve three years of supervised release and pay restitution to the IRS. Nowak was convicted in August 2016, of conspiring to defraud the United States, assisting in the filing of false corporate tax returns and tax evasion. Suliman pleaded guilty in July 2014 to conspiring with Nowak to defraud the United States and was sentenced on Jan. 18 to serve 12 months in prison, three years of supervised release and to pay $428,003 in restitution to the IRS.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Bogden commended special agents of IRS Criminal Investigation, who conducted the investigation and Assistant U.S. Attorney Kathryn C. Newman and Trial Attorney Eric C. Schmale of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Nevada Liquor Store Owner Sentenced to Prison for Conspiring to Defraud the United States and Tax EvasionRead the Press Release
LAS VEGAS, Nev.–Jeffrey Nowak, a Las Vegas, Nevada liquor store owner, was sentenced to serve 41 months in prison for conspiring to defraud the United States and tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Daniel G. Bogden for the District of Nevada.
According to the evidence introduced at trial and documents filed with the court, Nowak, 67, and Ramzi Suliman jointly owned and operated liquor stores in Las Vegas. At their first liquor store, Super Liquor Store South Strip, Nowak and Suliman skimmed cash receipts and maintained a double set of books in order to underreport income to the Internal Revenue Service (IRS). One set of books accurately reflected the store’s sales, while a second set of books fraudulently omitted nearly $4 million in cash receipts that had been actually received by the business. Nowak and Suliman provided the phony set of books to their accountant, causing him to create corporate tax returns that did not fully report the liquor store’s gross receipts and taxable income. Nowak and Suliman also caused their true personal income to be concealed on their individual income tax returns.
“Everyone is legally required to accurately report and pay taxes on their income – cash sales are not an opportunity to skirt this obligation,” said Acting Deputy Assistant Attorney General Goldberg. “Nowak’s prison sentence makes clear that taxpayers cannot hide behind a double set of books. ”
“The defendant intentionally concealed the store’s income by conspiring to skim cash and keeping two sets of account books,” said U.S. Attorney Bogden. “As a result, he cheated the U.S. Treasury and taxpayers. The U.S. Attorney’s Office is committed to working together with the IRS to pursue and prosecute perpetrators who choose to violate tax laws for their own benefit. Financial fraud is a top priority.”
In addition to the term of prison imposed, Nowak was ordered to serve three years of supervised release and pay restitution to the IRS. Nowak was convicted in August 2016, of conspiring to defraud the United States, assisting in the filing of false corporate tax returns and tax evasion. Suliman pleaded guilty in July 2014 to conspiring with Nowak to defraud the United States and was sentenced on Jan. 18 to serve 12 months in prison, three years of supervised release and to pay $428,003 in restitution to the IRS.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Bogden commended special agents of IRS Criminal Investigation, who conducted the investigation and Assistant U.S. Attorney Kathryn C. Newman and Trial Attorney Eric C. Schmale of the Tax Division, 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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Father and Son Charged for Armed Robberies of Two Henderson Credit UnionsRead the Press Release
LAS VEGAS, Nev. – A father and son were indicted today in connection with the armed robberies committed at two Henderson credit unions, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
“The alleged armed robberies placed bank employees and customers at severe risk of imminent harm,” said U.S. Attorney Bogden. “We will continue to work with our law enforcement partners to ensure justice is brought to individuals who choose to steal from financial institutions in Nevada.”
Jeffrey Alan James, 51, and Jessy Stewart James, 22, both of Las Vegas, are each charged with one-count of Hobbs Act Robbery and one-count of bank robbery. Trial has been scheduled for May 9, 2017.
According to court documents, on Jan. 24, 2017, Jeffrey and Jessy James stole approximately $4,000 from a Silver State Schools Credit Union. Jeffrey James pointed a replica firearm at a bank teller’s head and demanded money. Jessy James placed a suitcase on the counter, and informed the teller that if she cooperated, she would not be shot.
It is further alleged that on Feb. 16, 2017, Jessy James stole approximately $4,207 from the America First Credit Union. He approached a bank teller with two large envelopes. One envelope had a demand note to the effect of “This is a robbery, not a joke” and the other envelope held a replica firearm with the barrel pointing at the bank teller through a hole in the paper. Jeffrey James waited outside of the credit union and acted as a getaway driver once Jessy James had completed the robbery.
The case is being investigated by the Henderson Police Department and the Federal Bureau of Investigation, and prosecuted by Assistant U.S. Attorney Patrick Burns.
An indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent until and unless proven guilty in a court of law.
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Former Church Treasurer Sentenced for Theft of Nearly $1.5 Million from Church, Wire Fraud and Tax FraudRead the Press Release
LAS VEGAS, Nev. – A former church treasurer was sentenced on Wednesday to four years in prison for stealing nearly $1.5 million from the church in a wire fraud scheme, and committing more than $500,000 in tax fraud, announced U.S. Attorney Daniel G. Bogden for the District of Nevada and Special Agent in Charge Tara Sullivan of the IRS Las Vegas Field Office.
Gregory J. Olson, 52, formerly of Las Vegas, now living in Ryder, North Dakota, pleaded guilty on May 9, 2016, to one count of wire fraud and four counts of tax fraud. United States District Judge Andrew Gordon presided over the hearing. Olson was charged by an indictment on Sept. 5, 2012.
“The defendant stole from the church and its members to satisfy his greed and he now faces a sentence of imprisonment for his calculated and callous actions,” said U.S. Attorney Bogden. “The U.S. Attorney’s Office and IRS will work together and aggressively pursue financial fraud and tax fraud schemes that ultimately cause harm to innocent victims and the U.S. Treasury.”
“To steal from a church which entrusted its finances to you is not only sad, it’s deplorable,” said Special Agent in Charge Sullivan. “IRS Criminal Investigation and the U.S. Attorney’s Office will continue to pursue those who cause financial harm through embezzlement and fraud.”
According to court documents, Olson stole more than $1,466,292 from the Calvary Lutheran Church also called the Amazing Grace Lutheran Church of Las Vegas between 2006 and 2009. Olson admitted that he defrauded the church through a long-lasting and wide-ranging scheme. Olson made unauthorized cash and check withdrawals from the church’s bank accounts, false claims for reimbursement for church expenses, unauthorized receipt of mortgage loan proceeds, and solicited loans from individual church congregation members. Olson’s fraud scheme bankrupted the church.
Olson also knowingly failed to report as income the money he had stolen from the church in his 2006, 2007, 2008, and 2009 tax returns. The total tax loss was $541,770.
The case was investigated by the IRS-Criminal Investigation and prosecuted by Assistant U.S. Attorneys Gregg Damm and Dan Cowhig.
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Sacramento Woman Pleads Guilty to Making Counterfeit CurrencyRead the Press Release
RENO, Nev. – A California woman pleaded guilty today to making counterfeit $100 bills and spending the money at businesses in Northern Nevada, announced U.S. Attorney Daniel G. Bogden for the District of Nevada. She faces the statutory maximum penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for June 5, 2017, before U.S. District Judge Miranda M. Du.
“It is a federal crime to make, forge, alter or counterfeit a Federal Reserve Note,” said U.S. Attorney Bogden. “Individuals who make counterfeit currency are attempting to cheat and cause damage to businesses and the U.S. economy. We will continue to protect the U.S. economy and seek prosecution of individuals who engage in counterfeiting currency.”
Yvonne Geneal Flores, 38, of Sacramento, Calif., was indicted on May 25, 2016. Co-defendant Thomas Michael Morla, 42, pleaded guilty to making counterfeit currency and was sentenced to serve 18 months in prison.
According to the plea agreement and court documents, from Oct. 7, 2015 to May 5, 2016, Flores and Morla manufactured and passed numerous counterfeit $100 bills at various businesses in Reno, Carson City, and Sparks. Law enforcement were alerted to the counterfeit bills after Hertz Rental Car filed a report about Morla in possession of an embezzled Mercedes in Carson City. At the time of his arrest, he was holding counterfeit money. Flores’s name was listed as one of the drivers on the Hertz rental contract and she too was arrested for possession of an embezzled vehicle. During the execution of a search warrant, law enforcement found over $6,000 in counterfeit bills, a laptop computer, scanner/printer, and other items Flores and Morla used to manufacture the counterfeit currency. The U.S. Secret Service has collected nearly $50,000 counterfeit $100 bills from businesses that can be attributed to Flores and Morla based on the similarities of the notes and the use of the same face and back plate numbers, and check letter/quadrant numbers.
The case was investigated by the U.S. Secret Service; and prosecuted by Assistant U.S. Attorney Brian L. Sullivan.
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Jury Convicts Man of Voluntary Manslaughter in Wife's Death on Fort McDermitt Indian ReservationRead the Press Release
RENO, Nev. – Following a six-day trial, a jury found a husband guilty of voluntary manslaughter in his wife’s death at their home on the Fort McDermitt Indian Reservation, announced U.S. Attorney Daniel G. Bogden for the District of Nevada. The man is a member of the Fort McDermitt Paiute-Shoshone Tribe of Nevada and Oregon and his wife was a member of the Te-Moak Tribe of the Western Shoshone.
“The defendant will be held accountable for this crime,” said U.S. Attorney Bogden. “I commend our local, tribal, and federal law enforcement partners and the Assistant U.S. Attorneys for working together collaboratively throughout the investigative and prosecution process and for their commitment in seeking justice for the victim.”
Nelson Ray McKee, 45, was indicted on Jan. 28, 2015. At the time of sentencing, he faces the statutory maximum penalty of 15 years in prison. Sentencing is scheduled for May 15, 2017, before U.S. District Judge Robert C. Jones.
According to testimony and evidence presented during the jury trial, on Dec. 31, 2014, McKee’s wife went to a neighbor’s house after being stabbed in the upper chest by McKee. The neighbors dialed 9-1-1. A BIA officer and Humboldt County Deputies arrived at the scene and went to locate McKee. They noticed blood drops in the snow around the property and on the front door of McKee’s residence. Upon entering the residence, law enforcement found McKee extremely intoxicated. They also found two kitchen knives on a table, bottles of whiskey, and small droplets of blood on the kitchen floor and on the front door frame. McKee was arrested that night after officers were alerted that the woman died from her injuries. The Washoe County Medical Examiner’s autopsy revealed that the knife penetrated 5 inches into the woman’s chest and directly into her heart.
The case was investigated by the Bureau of Indian Affairs, Humboldt County Sheriff’s Office, and FBI; and prosecuted by Assistant U.S. Attorneys Shannon M. Bryant and Carla B. Higginbotham.
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Snapchat Videos Lead to Gun Arrests and ChargesRead the Press Release
LAS VEGAS, Nev.–Three men, including two former felons, were arrested and face criminal charges after posting videos on Snapchat of themselves illegally shooting firearms which included a stolen firearm, announced U.S. Attorney Daniel G. Bogden of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI Las Vegas field office.
“The three defendants were arrested and charged with gun crimes. Criminals should take heed of these arrests. Law enforcement will utilize all resources at their disposal to protect citizens and to ensure safe Nevada communities for all to live in,” said U.S. Attorney Bogden.
“These arrests reflect the FBI's strong, collaborative partnership with the Las Vegas Metropolitan Police Department and our common goal of making our city safer. Those who seek to live the gang lifestyle or exploit others through human trafficking should take note of the unified effort of the law enforcement community to stop their despicable pursuits,” said SAC Rouse.
Peryoun Newman, 25, Shavonte Hill, 29, both of Las Vegas, were charged by a criminal complaint for felon in possession of firearms. Co-defendant, Jevontae Caldwell, 24, of Las Vegas, was charged with possession of a stolen firearm by the same complaint. Newman and Hill are former convicted felons. In 2013, Newman was convicted of conspiracy to commit robbery and pandering. In 2004, Hill was convicted of attempted murder with a deadly weapon and discharging a firearm into an occupied structure, and in 2010, in both federal and state court, he was found guilty for being a felon in possession of a firearm. It is illegal for a felon to possess a firearm.
According to the criminal complaint, on Jan. 27, 2017, during the course of an investigation into a criminal street gang and human trafficking, law enforcement observed a live Snapchat video that depicted Newman, a self-proclaimed “Wood” street gang member involved in illegal activities, holding and firing a semi-automatic Draco pistol in an indoor shooting range with Hill, Caldwell, and others. In the Snapchat videos, the defendants discussed what kind of firearms they had in their possession and were shooting. Las Vegas Metropolitan Police Department officers and detectives arrived at the indoor shooting range and observed the defendants placing a cardboard box into a vehicle’s trunk, then driving to an apartment. Newman, Hill, and Caldwell were arrested for probable cause. At the time of arrest, Caldwell had a 9mm semi-automatic EEA SAR Arms in his pants pocket and a .45 caliber semi-automatic handgun in a bag he discarded while attempting to escape apprehension. The .45 caliber was reported as stolen in Mesa, Arizona. During the execution of a search warrant of their vehicle and apartment, law enforcement found a .40 caliber semi-automatic Glock 23; a Draco 7.62X39mm pistol; a Master Piece Arm 9mm pistol with a 3” barrel; and a .40 caliber Glock 27, magazine wells, and ammunition.
The case is being investigated by the FBI and Las Vegas Metropolitan Police Department; and prosecuted by Assistant U.S. Attorney Cristina D. Silva.
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North Las Vegas Man Sentenced to 10 Years for Possession of A Stolen FirearmRead the Press Release
LAS VEGAS, Nev. – A North Las Vegas man was sentenced today to 120 months in prison for possession of a stolen firearm, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
“The defendant threatened and pointed a stolen firearm at another person,” said U.S. Attorney Bogden. “He received the statutory maximum penalty for this crime. We will continue to work with all our Las Vegas law enforcement partners to ensure community members are protected and that justice is served in all matters.”
Vandemere Gipson, 39, pleaded guilty on Nov. 7, 2016, to the criminal charge and was indicted on Nov. 19, 2014. United States District Chief Judge Gloria M. Navarro presided over the sentencing hearing.
According to the plea agreement, on Oct. 13, 2014, at Gipson’s request, he and two women drove to a Quick Check Mart, AM/PM convenience store, and other locations. The driver told Gipson that she was not a taxi service. At that time, Gipson reached under his left leg, pulled out a Smith and Wesson 9-mm handgun that he had been sitting on, racked the firearm, which loaded a live round into the chamber of the firearm, pointed the firearm at the driver and yelled, “Bitch, I will take your last breath! I will kill your ass!” The other woman exited the car and Gipson followed her outside. At this time, the driver noticed that Gipson left the firearm on the seat, so she drove away and secured the firearm. On Oct. 24, 2014, Gipson was arrested by the North Las Vegas Police Department. He admitted to owning and possessing the stolen firearm.
The case was investigated by North Las Vegas Police Department; and prosecuted by Assistant U.S. Attorneys Alexandra Michael and Phillip Smith Jr.
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Henderson Man Sentenced to over 10 Years for Possession of Child PornographyRead the Press Release
LAS VEGAS, Nev.–A Henderson, Nev., man was sentenced Thursday to 123 months in prison for possession of more than 600 images of child pornography, announced U.S. Attorney Daniel G. Bogden of the District of Nevada. As part of the sentencing, U.S. District Judge Lloyd D. George required the defendant to register as a sex offender.
“This case is a successful example of partnerships among a business, a nonprofit organization, and law enforcement in identifying, apprehending, and prosecuting a child sex predator,” said U.S. Attorney Bogden. “The child victims suffer for years following the exploitation. We will continue to use our combined resources to protect children from these heinous crimes.”
Daniel Robert Wardlaw, 23, pleaded guilty on Aug. 2, 2016, to possession of child pornography. He was charged on June 11, 2014. At the time of the crimes, Wardlaw was on state probation following a conviction for possession of child pornography.
According to admissions made in connection with his plea, in December 2013 and February 2014, the National Center for Missing and Exploited Children (NCMEC) received a tip from Instagram of suspected child pornography after Wardlaw uploaded images to the social networking site. The NCMEC forwarded the tips to law enforcement. During the execution of a search warrant of Wardlaw’s residence, law enforcement found more images of child pornography on computers, a Dropbox account, and an iPod. Law enforcement found evidence that Wardlaw exchanged child pornography with others and used his Dropbox account to store the images and videos. Wardlaw admitted that he possessed more than 600 images and videos of child pornography.
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.
The case was investigated by the FBI; and prosecuted by Assistant U.S. Attorney Cristina D. Silva.
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Reno Man Sentenced to Prison for Making A Threat Against the President of the United StatesRead the Press Release
RENO, Nev. – A Reno man was sentenced today by U.S. District Judge Howard D. McKibben to 36 months in prison and three years of supervised release for making a threat against the President of the United States, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
“The U.S. Attorney’s Office takes all threats against the President of the United States seriously, and we will work with our law enforcement partners to bring those who make such threats to justice,” said U.S. Attorney Bogden.
Steven Eugene Ford, aka Job Ford, aka Eleazar Melchizedek, 51, was convicted by a jury on Nov. 16, 2016. He was charged by an indictment on March 9, 2016.
According to court documents, on or about March 1, 2016, Ford made a threat to take the life of the President of the United States. He told a White House telephone operator that “I’m going to kill that president. I hate him.” During an interview with law enforcement, Ford admitted to making the threats.
The case was investigated by the U.S. Secret Service; and prosecuted by Assistant U.S. Attorney Brian L. Sullivan.
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Man Sentenced for 2014 Convenience Store RobberiesRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was sentenced today by U.S. District Judge Kent J. Dawson to 51 months in prison for three convenience store robberies in 2014, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Eddie Junior Rodriguez, 46, pleaded guilty on Aug. 2, 2016, to three counts of interference with commerce by robbery.
“The defendant was brazen and robbed three convenience stores in less than two hours,” said U.S. Attorney Bogden. “Working with the FBI and our law enforcement partners, the U.S. Attorney’s Office is committed to reducing violent crime in Nevada and keeping our communities safe.”
According to court documents, Rodriguez admitted that on Dec. 23, 2014, at approximately 3:30 a.m., he entered a Speedee Mart, pointed a knife at an employee and demanded money. Approximately 30 minutes later, at another Speedee Mart location, Rodriguez brandished a knife and demanded money. The third robbery occurred shortly before 5:00 a.m. at Snackers where he demanded money.
The case was investigated by the FBI; and prosecuted by Assistant U.S. Attorney Alexandra Michael.
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Man Pleads Guilty to $3.2 Million Business Loan Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man pleaded guilty Tuesday for his participation in a $3.2 million scheme to fraudulently obtain money from victims seeking business loans, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Ronald Gene Morgan, 62, was indicted on Oct. 8, 2014. He faces 20 years in prison and a $250,000 fine. Sentencing has been scheduled for May 23, 2017, before U.S. District Judge James. C. Mahan.
“The U.S. Attorney’s Office is committed to assisting victims who were preyed upon and who are paying the consequences of this defendant’s greed,” said U.S. Attorney Bogden. “Together with our law enforcement partners, we will continue to identify, apprehend and prosecute these fraudsters who devise schemes to cheat innocent victims out of their much needed money.”
According to the plea agreement, from March 2009 to April 2011, Morgan, along with others, operated Argent Asset Management and Argent Securities, an Illinois-incorporated company and a Florida-incorporated company, respectively. Morgan admitted that he falsely promised victims in Las Vegas and elsewhere that he would provide business loans by using Argent assets to acquire bank-issued bonds at a discount and re-sell the bonds at face value to an investor, thereby producing hundreds of millions of dollars. Morgan admitted he lulled the victims by creating and sending false communications and documents depicting escrow account balances containing millions of dollars held on behalf of the clients. He knew that no such funds were held in escrow. He required victims to pay substantial fees in advance of obtaining the loans and told the victims that their funds would be held in escrow, would be refunded if the loans were not obtained, and would be used to obtain the loans. He knew that Argent Securities had no assets. Morgan used the fees paid by victims for his own personal use and to recruit other victims, and to repay portions of other victims fees in order to conceal the scheme. Morgan admitted the fraudulent scheme caused victims to lose about $3.23 million. He admitted that he is responsible for more than $550,000 and less than $1.5 million in loss.
The case is being investigated by the FBI; and prosecuted by Assistant U.S. Attorney Kathryn Newman and Nicholas D. Dickinson.
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Former Ford Dealership Manager Pleads Guilty to Prescription Drug Distribution ChargesRead the Press Release
RENO, Nev. – Richard Winston West II, aka Richie West, former manager of the Jones-West Ford dealership in Reno, Nev., pleaded guilty today to prescription drug conspiracy and possession with intent to distribute oxycodone, announced U.S. Attorney Daniel G. Bogden of the District of Nevada, Special Agent in Charge Steve Corner of the DEA’s Los Angeles field office, and Special Agent in Charge Aaron C. Rouse of the Las Vegas field office. At the time of sentencing, West faces up to 20 years in prison for his plea of guilty to the conspiracy charge. Sentencing is set for May 8, 2017.
“Prescription drug abuse is a major public health and public safety issue. Nevada citizens should be concerned and be aware of its dangerous impact and effects,” said U.S. Attorney Bogden. “We are fighting collaboratively with our law enforcement partners pursuing dirty doctors and illicit pill mills to ensure that our communities remain safe and that we bring wrongdoers to justice and stem the rising tide of prescription drug abuse.”
“While the immediate impact on the Reno community is profound, sadly this case is representative of the broader national threat we face in prescription opioid misuse and addiction,” said SAC Comer. “Torn communities, broken homes and lost lives demonstrate vividly the fight we are engaged in, and DEA will continue to combat these horrors by identifying, investigating and arresting those responsible for the illicit distribution of controlled pharmaceutical drugs.”
“The successful investigation of this case is through the extraordinary and dedicated work by the FBI and our federal, state, and local law enforcement partners. This case shows the seriousness the FBI places on the upward trend of opioid addiction supported by the unscrupulous acts of the very people who should be looking out for their patients’ best interests. This is not the end of this problem, but the community should know that the FBI will be steadfast in our resolve to stem the tide in Nevada,” said SAC Rouse.
West, 40, was one of nine defendants charged on May 11, 2016, with conspiracy to distribute and possess with intent to distribute controlled substances, including oxycodone. According to admissions made in the plea agreement, beginning in November 2012 and continuing to April 2016, West conspired with co-defendant Dr. Robert Gene Rand, a Nevada physician who operated Rand Family Care in Reno, and others to illegally distribute and possess with intent to distribute prescription controlled substances, including oxycodone. At relevant times of the conspiracy, West obtained oxycodone prescriptions from Rand not for a legitimate medical purpose and ultimately distributed at least 500 oxycodone pills in 30 milligram dosages to others. In addition, West arranged the distribution of oxycodone via text messages to co-defendants, each of whom were at one time or another employees of the vehicle dealership. West referred several of the co-defendants to Rand to obtain prescriptions for painkillers, some of which were prescribed and obtained for neither a legitimate medical purpose nor in the usual course of medical practice. At the time of West’s arrest, he possessed a Sig Sauer pistol in furtherance of the conspiracy to distribute and possessed with intent to distribute controlled substances.
Co-defendants Rand, 53, Omar Ahsan Ahmad, 31, Joshua Ross Green, 34, Clint Mitchell Bloodworth, 40, Kathleen Griffin, 43, Alan Russel Martinez, 59, and Braden Kyle Riley, 40, all of Reno, and Ryan Daniel Smith, 40, of Carson City, were each charged in the same conspiracy. Rand is also charged with one count of distribution of oxycodone resulting in death and one count of distribution of fentanyl. Jury trial is set for April 25, 2017, before U.S. District Judge Miranda M. Du.
According to the Centers for Disease Control and Prevention (CDC), almost two million Americans abused or were dependent on prescription opioids in 2014. Every day, more than 1,000 people are treated in emergency departments for misusing prescription opioids. Overdoses involving opioids killed more than 33,000 people in 2015, more than any year on record, and over one-half of those deaths were from prescription opioids. For information on opioid overdose and how you can manage pain without prescription drugs, go to http://www.cdc.gov/drugoverdose/opioids/index.html.
The case is being investigated by the Northern Nevada Unified Drug and Gang Enforcement Task Force, which includes the DEA, FBI, IRS Criminal Investigation, ICE-HSI, ATF, 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 is being by prosecuted by Assistant U.S. Attorneys James Keller, Sue Fahami, and Shannon Bryant.
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Mexican Citizen Travelling in Las Vegas Sentenced to 10 Years for Possession of HeroinRead the Press Release
LAS VEGAS, Nev. – A Mexican citizen who was stopped for a traffic violation and subsequently found with heroin concealed in his vehicle was sentenced today to 120 months in prison, announced United States Attorney Daniel G. Bogden of the District of Nevada.
“The defendant concealed the heroin in different locations in his vehicle including a bean bag chair. Along with the work of our law enforcement partners, the U.S. Attorney’s Office is committed to preventing illegal drugs hitting our streets,” said U.S. Attorney Bogden.
According to court documents, in April 2015, Jesus Antonio Diaz-Flores, 37, was stopped for a traffic violation on I-15, near mile marker 60, by a Nevada Highway Patrol Trooper. Following Diaz-Flores’s consent to search the vehicle, a narcotics detector dog alerted the trooper who recovered five bundles containing a brownish-black tar-like substance hidden inside PVC pipe and a bean bag chair in the vehicle. The bundles were sent to the Las Vegas Metropolitan Police Department lab where the contents tested positive for heroin and weighed 2494.90 grams or approximately 5.5 pounds. Diaz-Flores admitted that he knew he was transporting heroin and that the heroin would later be distributed to other individuals.
Diaz-Flores was charged on April 21, 2015, and he pleaded guilty on July 11, 2016.
The case was investigated by the Drug Enforcement Administration and the Nevada Highway Patrol; and prosecuted by Assistant U.S. Attorney Susan Cushman.
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Las Vegas Man Sentenced to Life in Prison for Murdering Drug Supplier During 2013 Marijuana TransactionRead the Press Release
LAS VEGAS, Nev. – Louis Matthews, 35, was sentenced today to life in prison for drug and firearm crimes that resulted in the death of a man during a drug deal at a North Las Vegas apartment in November 2013, announced U.S. Attorney Daniel G. Bogden of the District of Nevada and Special Agent in Charge Jill Snyder of the ATF. United States District Judge James C. Mahan also sentenced Matthews to 10 additional years in prison and five years of supervised release.
“Our United States Attorney’s Office and all our law enforcement partners remain vigilant in efforts to identify violent crime and we will continue to combat it head on to keep our communities safe. As in this case, we will work with our law enforcement partners to address and prevent violent crime issues. We remain committed to pursuing justice for all victims,” said U.S. Attorney Bogden.
“This case is an example of the hard work the Las Vegas Metropolitan Police Department, North Las Vegas Police Department and ATF agents do on a daily basis to protect the public from armed drug traffickers who threaten our neighborhoods,” said ATF Special Agent in Charge Jill Snyder. “At ATF, our goal is to protect our communities from violent criminals, criminal organizations, the illegal use and trafficking of firearms, the illegal use and storage of explosives, acts of arson and bombings, acts of terrorism, and the illegal diversion of alcohol and tobacco products. One of the ways ATF is able to do that is through the successful partnerships we have with other agencies.”
Following a seven-day trial, Matthews was convicted by a jury on Oct. 12, 2016, of one count of conspiracy to possess marijuana with intent to distribute and one count of using a firearm during and in relation to a drug trafficking crime resulting in death.
According to the court records, on Nov. 30, 2013, Matthews and John Thomas III arrived at an apartment on East Cheyenne Avenue in North Las Vegas to participate in a deal to purchase 20 pounds of marijuana from the deceased victim, Luciano Madrigal-Herrera. Also present at the apartment were Julio Nunez and Angel Juarez. The victim showed some of the marijuana to Matthews for inspection, and then went back outside to retrieve the rest. Matthews also left the apartment, stating he was going to get his friend, Thomas, as well as money for the marijuana. The three men returned to the apartment, and then Thomas and Matthews each produced handguns and repeatedly shot the victim during an attempt to rob him of the marijuana, causing his death. The defendants took the marijuana and attempted to flee with it. Nunez, in an attempt to prevent Matthews and Thomas from fleeing with the marijuana, shot at both of them with a sawed-off shotgun, striking both Thomas and his vehicle. Thomas and Matthews were ultimately able to escape the scene. Thomas was apprehended later the same night by the North Las Vegas Police Department after officers discovered that his gunshot-riddled vehicle had been left behind at the scene parked in front of the apartment where Madrigal-Herrera had been killed. Matthews was charged after the ensuing investigation led to his identity as the second suspect.
Three co-defendants were also charged in the scheme. John Thomas III, 25, of Las Vegas, pleaded guilty to conspiracy to possess marijuana with intent to distribute and using a firearm during and in relation to a drug trafficking crime resulting in death, and is awaiting sentencing. Julio Nunez, 28, of Las Vegas, pleaded guilty to one count of conspiracy to possess marijuana with intent to distribute and one count of discharging a firearm during and in relation to a drug trafficking crime and was sentenced to 42 months in prison and five years of supervised release. Angel Juarez, 29, of North Las Vegas, is awaiting trial.
This case was investigated by ATF, the Las Vegas Metropolitan Police Department, and North Las Vegas Police Department. The case was prosecuted by Assistant U.S. Attorneys Phillip N. Smith Jr. and Alexandra M. Michael.
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Carson City Man Sentenced to Eight Years for Distribution of MethamphetamineRead the Press Release
RENO, Nev. – A Carson City, Nev., man was sentenced Monday to eight years in prison for distributing methamphetamine, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Saul Cisneros, 33, was sentenced by U.S. District Judge Robert C. Jones, who also ordered Cisneros to 24 months consecutive on his supervised release violation. Cisneros pleaded guilty on Sept. 26, 2016, to conspiracy to distribute at least five grams of actual methamphetamine. He was indicted in a superseding indictment on June 10, 2015. Co-defendant Lisa Rose Jones, 37, of Carson City, pleaded guilty on March 29, 2016, and was sentenced to 18 months in prison.
According to court documents, in April 2015, a DEA confidential source called Cisneros to order an ounce of methamphetamine. They met at an apartment complex in Carson City where Cisneros and Jones directed the confidential source to an apartment. While in the apartment, Cisneros told the confidential source that he only had a half ounce of methamphetamine, and that the other half was on its way, and that the confidential source would need to return to the apartment for it. Jones placed a plastic bag of methamphetamine on the bed and the confidential source put $300 on the bed, which Cisneros took. The bag contained 13.3 grams of actual methamphetamine.
Seven other defendants were charged in federal district court arising out of this coordinated law enforcement investigation into methamphetamine distribution in the Lyon County and Carson City areas of Nevada. Michael Perez, 38, of Dayton, Nev., and Sergio David Perez, 33, of Carson City, Nev., were charged with conspiracy to distribute methamphetamine. Michael Perez was sentenced to 168 months on Aug. 8, 2016, and Sergio David Perez was sentenced to 97 months on Aug. 22, 2016 by U.S. District Judge Robert C. Jones. Juan Alvarez, 40, of Carson City, Nev., and Yuritsi Marquez, 35, of Carson City, Nev., pleaded guilty to possession with intent to distribute at least 50 grams of methamphetamine on November 16, 2016, and is awaiting sentencing. Marquez was sentenced to 366 days in prison on January 31, 2017. Angelo Tello, 31, of Carson City, Nev., and Lorena Tello, 25, Dayton, Nev., the paramours of Michael and Sergio David Perez, pleaded guilty to money laundering relating to the distribution of methamphetamine. Julio Contreras, 26, of Long Beach, CA, pleaded guilty to conspiracy to commit money laundering. Lorena Tello was sentenced to 366 days’ imprisonment. Angelo Tello and Julio Contreras are awaiting sentencing.
This case was a joint investigation by the DEA, Lyon County Sheriff’s Office, Tri-County Narcotics Enforcement Task Force, and the Tri-County Gang Unit; and prosecuted by Assistant U.S. Attorney James E. Keller.
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Man Who Was Arrested During "Operation Protect the Powerless" Sentenced to 13 Years for Transporting Two Girls from Nevada to California to Work as ProstitutesRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man arrested in 2014 as part of “Operation Protect the Powerless,” a joint law enforcement operation to catch child predators in southern Nevada, was sentenced today by U.S. District Judge Andrew P. Gordon to 156 months in prison and lifetime supervised release, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
“The defendant and his co-defendant exploited two minor girls for their financial benefit by forcing the girls to travel from Nevada to California to work as child prostitutes,” said U.S. Attorney Bogden. “This case is a prime example of successful state and nationwide efforts by multi-agencies and our law enforcement partners to identify and prosecute sexual predators. We remain committed to protecting children from sexual exploitation and abuse.”
Sha-Ron Haines, 20, was convicted by a jury on Aug. 25, 2015, of one count of conspiracy to commit sex trafficking of a child, one count of sex trafficking of a child, one count of conspiracy to transport a minor for prostitution or other illegal sexual activity, and one count of transportation of a minor for prostitution. Haines and co-defendant Tyral Edward King, 21, were indicted by a federal grand jury on Aug. 6, 2014. King pleaded guilty on Aug. 14, 2015, to one count of transportation of an individual for the purpose of prostitution, and was sentenced on March 1, 2016, to 30 months in prison.
According to court records, the investigation commenced on June 24, 2014, when a Clark County probation officer notified a Las Vegas Metropolitan Police Department officer that a 15-year-old girl might be involved in prostitution. Further investigation revealed that in May 2014, Haines and King had driven the 15-year-old girl and a 17-year-old girl, from Las Vegas to Pomona, Calif. and Los Angeles, Calif., with the intent that they engage in prostitution. King’s name and credit card were used to purchase online advertisements on an internet site commonly used by prostitutes and pimps called, “Backpage,” to set up prostitution dates for the minors in California. In May, the girls then engaged in prostitution acts in California, and all of the money they earned was turned over to Haines and King. On May 22, 2014, the 17-year-old girl was arrested by an undercover Los Angeles police officer who had responded to one of the advertisements on “Backpage,” and had met her at a hotel for sex. The 15-year-old girl later returned home to Las Vegas on a bus.
In a separate pending federal case, Haines is charged with assaulting a Southern Nevada federal detention center officer on Feb. 9, 2015, by using his fist to strike the officer in the face, jaw and ear four times. The case is currently scheduled for trial on May 9, 2017.
Operation Protect the Powerless was organized and led by the Project Safe Childhood (PSC) Task Force in southern Nevada, and targeted child traffickers, persons who were coercing and enticing minors for sex, child pornographers, child molesters and child rapists. Members of the PSC Task Force include the FBI, the U.S. Immigration Customs Enforcement Homeland Security Investigations (ICE-HSI), the Las Vegas Metropolitan Police Department, Henderson Police Department, Clark County D.A.’s Office, and the U.S. Marshals Service. Operation Protect the Powerless occurred from June 1 to Dec. 31, 2014, and resulted in the prosecution and conviction of 219 persons, the execution of 100 search warrants, and the recovery of over 500,000 images and 2,700 videos of child rape and pornography. The surge also resulted in prosecutions being handled jointly by the U.S. Attorney’s Office and Clark County District Attorney’s Office, and resulted in distinct charges in federal and state court.
The case was prosecuted by Assistant U.S. Attorneys Lisa C. Cartier-Giroux and Susan Cushman.
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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