District of Nevada
Press releases recorded for this federal judicial district.
Department of Justice Awards $2.1 Million in Grants to Three Nevada Agencies to Prevent School ViolenceRead the Press Release
LAS VEGAS, Nev. – Daniel G. Bogden, United States Attorney for Nevada, in conjunction with the U.S. Department of Justice Office of Community Oriented Policing Services (COPS), is pleased to announce that on Monday, Sept. 29, the U.S. Department of Justice awarded three grants totaling $2,125,000 to the North Las Vegas Police Department, the City of Elko, and the Elko County Sheriff’s Office for the hiring of 17 law enforcement officers.
The Justice Department announced the funding awards to the three agencies under the COPS Hiring Program, which provides funds directly to law enforcement agencies to hire or re-hire career law enforcement officers, and to increase their community policing capacity and crime prevention efforts. The program provides salaries and benefits for officer and deputy hires for three years. Grantees for the 2014 hiring program were selected based on their fiscal needs, local crime rates, and community policing plans.
“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “Funding from this year’s program will allow many cities and counties to apply new sworn personnel to issues related to violent crime, property crime, and school safety.”
Nearly $124 million in grants was awarded nationally under the hiring program, including the $2.1 million for the District of Nevada. Of that, $1.6 million was awarded to the North Las Vegas Police Department for the hiring of 13 officers, $375,000 was awarded to the Elko County Sheriff’s Office for the hiring of three officers, and $125,000 was awarded to the City of Elko for the hiring of one officer.
“The Department of Justice continues to support the efforts of law enforcement in Nevada,” said U.S. Attorney Bogden. “This program is specifically designed to advance public safety through community policing, including the hiring of school police officers or school resource officers. Bullying, stalking and other interpersonal crimes affect our children at an alarming rate, making these positions more important than ever.”
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For the entire list of grantees and additional information about the 2014 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
Las Vegas Urologist Convicted of Unlawful Re-Use of Needle Guides During Prostate ProceduresRead the Press Release
LAS VEGAS, Nev. – Las Vegas urologist, Michael Stanley Kaplan, 59, was convicted by a federal jury today of conspiracy to commit adulteration for re-using single use needle guides during prostate procedures, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
“Dr. Kaplan made a decision to re-use needle guides in a manner that caused them to be adulterated for the purpose of enriching himself,” said U.S. Attorney Bogden. “He also concealed from his patients that they were undergoing procedures with re-used needle guides. Such conduct is a felony when performed with the intent to defraud or mislead. This case underscores our commitment to holding accountable those medical professionals who would endanger patients for their own personal profit.”
At the time of the offense, Dr. Kaplan operated Green Valley Urology. According to the evidence presented at trial, Kaplan re-used single-use plastic needle guides during prostate procedures, causing a significant health risk to his patients. The packaging on each needle guide clearly warned that they should not be used more than once, but Dr. Kaplan instructed his staff and permitted his staff to re-use them three to five times prior to disposal. Between about Dec. 15, 2010, and March 11, 2011, Dr. Kaplan performed approximately 120 procedures requiring a needle guide but used less than 10 guides during that period.
Dr. Kaplan was acquitted of making false representations to Food and Drug Administration (FDA) investigators regarding the duration of his re-use of the needle guides.
Dr. Kaplan is released on a personal recognizance bond and is scheduled to be sentenced on Jan. 30, 2015. He faces up to five years in prison and a fine of up to $250,000.
The case was investigated by the FDA Office of Criminal Investigations and prosecuted by Assistant U.S. Attorney Crane M. Pomerantz and Special Assistant U.S. Attorney Peter J. Leininger.Henderson, Nev. Man Sentenced to Two Years in Prison for Aiming Laser Pointer at Police HelicopterRead the Press Release
LAS VEGAS, Nev. - A Henderson, Nev. man was sentenced today to two years in prison for aiming a laser pointer at a Las Vegas Metropolitan Police Department (LVMPD) helicopter on six occasions earlier this year, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
James David Zipf, 30, pleaded guilty in June to one count of aiming a laser pointer at an aircraft, and was sentenced by U.S. District Judge Miranda M. Du. Zipf was permitted to self-report to federal prison by December 30, and must also serve three years of supervised release and undergo mental health and substance abuse treatment.
Zipf admitted that just after midnight on Jan. 30, 2014, he aimed a blue laser four times at the LVMPD helicopter from the second story window of the Green Valley neighborhood house where he lived. Zipf also admitted that on Feb. 3, 2014, at about 9:00 p.m., he pointed the blue laser light two times at a LVMPD helicopter causing one of the flight officers to experience a severe headache. Zipf was convicted in 2011 in Phoenix, Ariz. of pointing a similar blue laser at a police helicopter there.
“In 2012, it became a federal felony offense to knowingly target an aircraft with a laser,” said U.S. Attorney Bogden. “This activity is extremely dangerous, and can disorient and temporarily blind a pilot. If you have information about a lasing incident or see someone pointing a laser at an aircraft, call your local FBI field office or dial 911.”
Since the FBI and the Federal Aviation Administration (FAA) began tracking laser strikes in 2005, statistics reflect a more than 1,100 percent increase in the deliberate targeting of aircraft by people with handheld lasers. In 2013, there were 3,960 laser illumination incidents reported by pilots to the FAA. This is an average of 10.8 incidents every night.
The case was investigated by the FBI and LVMPD, and prosecuted by Assistant U.S. Attorney Roger Yang.Former Clark County Family Court Judge Steven Jones and Four Co-Defendants Plead Guilty to Investment Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – Clark County Family Court Judge Steven E. Jones and four co-defendants pleaded guilty today to conspiracy charges for defrauding over 22 people of millions in an investment fraud scheme involving bogus water rights and real estate transactions, announced U.S. Attorney Daniel G. Bogden for the District of Nevada and Laura Bucheit, Special Agent in Charge of the FBI for Nevada. As part of his plea agreement with the government, Jones agreed to step down from the bench and surrender his law license to the State Bar of Nevada.
Jones, 56, Thomas A. Cecrle, Jr., 57, and Terry J. Wolfe, 59, of Henderson, Nev., and Mark L. Hansen, 56, of Corvallis, Ore., pleaded guilty before U.S. District Judge Jennifer A. Dorsey to one count of conspiracy to commit wire fraud. Also in connection with the same fraud scheme, Constance C. Fenton, 70, of Gig Harbor, Wash., pleaded guilty to one count of conspiracy to commit money laundering. They each face up to 20 years in prison, $250,000 in fines, and mandatory restitution, and are scheduled to be sentenced on Jan. 26, 2015. A sixth defendant charged in the scheme, Ashlee M. Martin, 30, of Las Vegas, Nev., pleaded guilty on Aug. 11 to conspiracy to commit money laundering, and is scheduled to be sentenced in August 2015.
“This prosecution was the result of a long, thorough, and resource-intensive investigation and should serve as a vivid reminder that public officials who use their offices as a means to commit a crime of whatever nature will be pursued vigorously and prosecuted to the utmost rigor of the law,” said U.S. Attorney Bogden. “Defendant Jones knowingly used his office to lull victims into a false sense of security about investments he knew were scams. No one is above the law, especially a person holding the office of judge.”
"These guilty pleas serve as evidence to the public that the FBI, working with our law enforcement partners and the U.S. Attorney’s Office, will continue to ensure that no one is above the law, and when public corruption is identified, it will be aggressively investigated and prosecuted,” said Special Agent in Charge Bucheit.
According to the plea memoranda, defendants lured victims into a fraud scheme by falsely telling them that Cecrle worked as a contractor for the U.S. Department of Homeland Security, purchasing and selling water rights worth millions of dollars as part of a secret government program. The co-conspirators then solicited money by falsely claiming that Cecrle needed short-term cash loans to complete his phantom water deals, loans he promised to repay in short order along with a very large return. Cecrle and his co-conspirators concocted a similar story involving a land deal on the Las Vegas Strip where Cecrle needed short-term loans to supposedly close a deal with Sir Richard Branson. In truth, however, Cecrle held no position with the federal government and there were no land or water rights deals.
Using his office as an elected state court judge, defendant Jones knowingly vouched for Cecrle and the legitimacy of the deals to potential investors when he knew the deals were, in fact, scams. According to the plea memorandum, Jones continued to further the conspiracy by receiving money from a victim in the parking lot of the Family Division Courthouse, meeting with at least one potential investor in his chambers and elsewhere in the courthouse to discuss the investment, obtaining an “Own Recognizance” bond to release Cecrle from custody after he was arrested for bad checks he had passed to a victim, and opening and maintaining a joint checking account with Cecrle, through which flowed over $260,000 in illegal proceeds. During the entire conspiracy, which lasted from about September 2002 to October 2012, the defendants defrauded at least 22 victims of more than $2.6 million, money they quickly converted to their own use.The case was investigated by the FBI and prosecuted by First Assistant U.S. Attorney Steven W. Myhre and Assistant U.S. Attorney Daniel R. Schiess of the U.S. Attorney’s Office for the District of Nevada.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.com.
Former Las Vegas Doctor Sentenced to over 3 1/2 Years in Prison for Selling Prescription Painkillers to Undercover DEA AgentRead the Press Release
LAS VEGAS, Nev. – Former Las Vegas physician Vinay Bararia, 44, was sentenced today to 44 months in prison and three years of supervised release for unlawfully selling hydrocodone and oxycodone to an undercover DEA agent in a hospital parking lot, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
“Stopping the unlawful distribution of prescription painkillers has been a top priority for our office,” said U.S. Attorney Bogden. “The days of persons being able to easily acquire these dangerous drugs from corrupt doctors and pharmacists are coming to an end.”
The sentence was imposed by U.S. District Judge Jennifer Dorsey, who also ordered Bararia to forfeit approximately $50,000 in cash and the 2007 Jaguar vehicle he used to distribute the drugs, and increased his sentence for abusing his position of trust as a doctor.
Judge Dorsey denied Bararia’s request for a reduced sentence based on arguments by his attorneys that he had diminished mental capacity, extenuating family circumstances, or that he acted aberrantly when he committed the crime.
Bararia was originally charged in March 2012, and pleaded guilty on Dec. 18, 2013, to one count of distribution of a controlled substance. According to the guilty plea agreement, on July 20, 2011, Bararia unlawfully sold 500 hydrocodone pills for $1125 to a DEA undercover agent in the parking lot of Centennial Hills Hospital. Bararia’s sentence included other relevant conduct, including the unlawful distribution of approximately 3,600 oxycodone pills between July 28 and Nov. 8, 2011, and the possession of 2,038 oxycodone pills that were recovered from his vehicle on March 1, 2012, when he was arrested in the parking lot of the hospital.
Bararia has been in federal custody since November 2012, as a result of repeated violations of his conditions of release. He surrendered his license to practice medicine in Nevada in March 2013.
This case was investigated by the DEA and prosecuted by Assistant U.S. Attorneys Susan Cushman and Robert Knief.
Former Advertising Department Employee for Las Vegas Casino Company Pleads Guilty to Tax EvasionRead the Press Release
LAS VEGAS, Nev. – Anthony M. Cirulli, a former employee of a Las Vegas casino company, pleaded guilty today before U.S. District Judge Gloria M. Navarro to one count of tax evasion, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
“Individuals are required to pay federal taxes on income, even if acquired unethically,” said U.S. Attorney Bogden. “If you do not pay the taxes, you risk an investigation by the IRS and criminal prosecution.”
According to the plea agreement, from about 2005 to 2008, Cirulli was employed as a production manager in the corporate advertising department of the casino company. Part of his job involved reviewing bids for printing contracts and deciding which printing companies would be awarded the contracts. For the 2007 tax year, Cirulli willfully filed a false individual income tax return, which omitted and failed to report income that he received during his employment at the company. Cirulli hid the unreported income in two different nominee bank accounts which conducted no actual business activity. The potential tax loss to the U.S.Treasury as a result of Cirulli’s conduct is approximately $350,000.
Cirulli is scheduled to be sentenced on Dec. 18, and faces up to five years prison, three years of supervised release, and a fine of up to $250,000.
The case was investigated by IRS Criminal Investigation and prosecuted by Trial Attorney Christopher Maietta of the Justice Department’s Tax Division and Assistant U.S. Attorney Nicholas Dickinson.
Las Vegas Lawyer Pleads Guilty to Failing to File Tax ReturnsRead the Press Release
LAS VEGAS, Nev. – A local lawyer who served as U.S. Attorney for Nevada from 1975 to 1977, pleaded guilty today to failing to file federal individual and corporate income tax returns from 2006 to 2010, and agreed to pay restitution to the IRS of approximately $290,000, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
“Regardless of one’s occupation, job title or position, everyone is responsible for filing and paying taxes on all of their income,” said United States Attorney Bogden. “It is important that American taxpayers understand and feel confident that everyone is playing by the same rules in filing and paying their taxes.”
Lawrence J. Semenza, II, pleaded guilty before U.S. District Judge James C. Mahan to three misdemeanor counts of willful failure to file a tax return. According to the guilty plea agreement, Semenza operated his law practice in Las Vegas as a subchapter C personal service corporation. For the years 2006 through 2010, Semenza individually had taxable income of approximately $655,000, and the corporation had taxable income of approximately $345,000, but Semenza failed to file individual or corporate income tax returns for those years, and failed to pay the tax due and owing to the IRS, totaling about $290,000.Semenza is scheduled to be sentenced on Dec. 3, 2014. The maximum penalty for each count is one year in prison and a fine of not more than $100,000.
The case is being investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorneys Eric Johnson and Nicholas D. Dickinson.Las Vegas Lawyer Pleads Guilty to Failing to File Tax ReturnsRead the Press Release
LAS VEGAS, Nev. – A local lawyer who served as U.S. Attorney for Nevada from 1975 to 1977, pleaded guilty today to failing to file federal individual and corporate income tax returns from 2006 to 2010, and agreed to pay restitution to the IRS of approximately $290,000, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
“Regardless of one’s occupation, job title or position, everyone is responsible for filing and paying taxes on all of their income,” said United States Attorney Bogden. “It is important that American taxpayers understand and feel confident that everyone is playing by the same rules in filing and paying their taxes.”
Lawrence J. Semenza, II, pleaded guilty before U.S. District Judge James C. Mahan to three misdemeanor counts of willful failure to file a tax return. According to the guilty plea agreement, Semenza operated his law practice in Las Vegas as a subchapter C personal service corporation. For the years 2006 through 2010, Semenza individually had taxable income of approximately $655,000, and the corporation had taxable income of approximately $345,000, but Semenza failed to file individual or corporate income tax returns for those years, and failed to pay the tax due and owing to the IRS, totaling about $290,000.Semenza is scheduled to be sentenced on Dec. 3, 2014. The maximum penalty for each count is one year in prison and a fine of not more than $100,000.
The case is being investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorneys Eric Johnson and Nicholas D. Dickinson.U.S. Attorney’s Office Hosts 18th Annual Native American Conference in RenoRead the Press Release
RENO, Nev. – United States Attorney Daniel G. Bogden this week welcomed members of the Nevada Native American community network to the 18th Annual Native American Conference being held Aug. 25 through Aug. 27, 2014, at the Grand Sierra Resort in Reno. Attendees include members of tribal government, tribal law enforcement, social workers, court personnel, and others.
“I take great pride in our work with Nevada Native American Tribes and in handling Indian Country matters,” said U.S. Attorney Bogden. “Our annual conference is one method we use to strengthen collaboration with our tribal partners. This year’s conference, entitled “Working Together for Hope, Healing and Justice,” is intended to assist us in protecting our most precious resource – our children.”
U.S. Attorney Bogden is assisted at the conference by his Criminal Chief Eric Johnson, Reno Branch Chief Sue Fahami, Assistant U.S. Attorney and tribal liaison Shannon Bryant, Assistant U.S. Attorney Carla Higginbotham, his victim witness staff, and law enforcement representatives from the FBI and Bureau of Indian Affairs. Funding and additional assistance for the conference was provided by the U.S. Department of Justice Office for Victims of Crime. The agenda includes classes and speakers on a wide variety of subjects such as crisis response, bullying, child and youth sex abuse, interviewing child victims, child trafficking, Indian Country jurisdiction, and case studies in Indian Country.
The Department of Justice released yesterday its second report to Congress entitled Indian Country Investigations and Prosecutions, which provides a range of enforcement statistics required under the Tribal Law and Order Act of 2010, as well as information about the progress of the Attorney General’s initiatives to reduce violent crime and strengthen tribal justice systems. For further information, see http://www.justice.gov/opa/pr/2014/August/14-ag-902.html
Nevada is home to 26 federally recognized Native American Tribes located on 31 reservations and colonies. For more information on the U.S. Attorney’s work with Nevada Indian tribes, visit http://www.justice.gov/usao/nv/programs_tribal.html.Nevada Prosecutor and Homeland Security Investigations Special Agent Receive Awards for Their Work on Cybercrime CaseRead the Press Release
LAS VEGAS, Nev. – Assistant United States Attorney (AUSA) Kimberly Frayn of the U.S. Attorney’s Office for the District of Nevada and Special Agent Michael P. Adams of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Las Vegas, received awards today in Phoenix, Ariz., from the International Association of Financial Crimes Investigators for the investigation and prosecution of members of a highly sophisticated international cybercrime organization known as “Carder.su,” announced Daniel G. Bogden, United States Attorney for the District of Nevada and Michael Harris, Assistant Special Agent in Charge for HSI Las Vegas.
AUSA Frayn received the William D. Neumann Prosecutor of the Year Award for her efforts as the primary prosecutor in the Nevada case, known as, “Operation Open Market.” The Award acknowledges prosecutors who have shown exceptional diligence, cooperation and tenacity, and who have made significant contributions to financial fraud prevention.
Special Agent Adams received the Cyber Investigations Contributor of the Year award for his efforts as the case agent in Operation Open Market. The Award acknowledges Agent Adams’ cyber investigative skills which significantly aided in the apprehension, arrest and prosecution of the suspects.
“It pleases me that AUSA Frayn and Special Agent Adams have been recognized by an international association for their superior work and efforts in fighting financial fraud,” said U.S. Attorney Bogden. “The investigation and prosecution of a cybercrime case requires special skills and expertise, as well as diligence and tenaciousness of character. AUSA Frayn and Special Agent Adams have all of those qualities combined, which has led to successful court cases and convictions.”
“These awards are richly deserved and reflect the extraordinary amount of work both the agent and prosecutor invested in this complex and far-reaching case,” said Assistant Special Agent in Charge Michael Harris. “There’s no question their collaborative efforts are in large measure responsible for the successful outcome of this investigation. For prosecutors and investigators, seeing career criminals like the defendants in this case brought to justice is its own reward, but having those efforts recognized in such a public way makes the outcome even more gratifying.”
Special Agent Adams assumed the identity as a member of the Carder.su organization when it was in its infancy. The investigation determined that its members or “carders,” were involved in large scale trafficking of compromised credit card account data and counterfeit identifications and credit cards, as well as money laundering, narcotics trafficking, and various types of computer crime. The organization operated an internet web portal called a forum, where members could purchase the illicitly obtained data and share knowledge of various fraud schemes. A second forum was also created to vet incoming new members. The forums were generally hosted within the former Soviet Union and the upper echelon of the organization resides within the former Soviet Union. It was estimated that in July 2011, there were over 5,500 members of the organization. Members of the organization had different roles, including moderators who directed other members in carrying out activities; reviewers who examined and tested products, services, and contraband; vendors who advertised and sold products, services and contraband; and members. Members were required to successfully complete a number of security features designed to protect the organization from infiltration by law enforcement or members of rival criminal organizations.
Operation Open Market resulted in federal criminal charges against 56 individuals. The defendants are charged with conspiracy to participate in a racketeer influenced corrupt organization, trafficking in compromised credit card account data and counterfeit identifications, money laundering, narcotics trafficking, and computer crimes. To date, 25 individuals have been convicted, and the rest are either fugitives or are pending trial in Las Vegas.
The International Association of Financial Crimes Investigators (IAFCI) is a non-profit organization with over 4,000 members whose mission is to identify and prevent financial crimes utilizing new technologies and investigative techniques. The Association has 40 Chapters worldwide.California “Vendor” in Identity Theft and Credit Card Fraud Organization Sentenced to More Than Eight Years in PrisonRead the Press Release
WASHINGTON – A northern California man who served as an information and document vendor in the identity theft and credit card fraud ring known as “Carder.su” was sentenced yesterday to serve 100 months in federal prison. He was further ordered to pay approximately $50.5 million in restitution.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada and Assistant Special Agent in Charge Michael Harris of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE HSI) in Las Vegas made the announcement. U.S. District Judge Andrew P. Gordon of the District of Nevada imposed the sentence.
“Carder.su is a criminal organization, and we used the same mob-busting laws and investigative techniques we’ve used with other organized crime networks to dismantle the fraud ring,” said Assistant Attorney General Caldwell. “The new face of organized crime is largely cyber-based, and this case demonstrates the department’s ability to pursue members of these organizations wherever we find them.”
“The structure of the Carder.su organization was sophisticated and designed to prevent attack by rival organizations and to avoid detection by law enforcement,” said U.S. Attorney Bogden. “Its members had defined roles and were responsible for the theft of over $50 million. We are working diligently with our law enforcement partners to ensure that the people who commit these high-tech crimes are put out of business.”
“As this multi-year sentence makes clear, individuals like this defendant who traffic in stolen identities and compromised credit card information should expect to face the full weight of the law,” said HSI Assistant Special Agent in Charge Harris. “This type of fraud has reached epidemic proportions and the economic fallout from these crimes affects us all. HSI will continue to work closely with its law enforcement partners to see that those involved are brought to justice.”
Makyl Haggerty, aka “Wave” and “G5,” 24, of Oakland, Calif., admitted in his plea agreement that in December 2009, he became associated with the Carder.su organization, a criminal enterprise whose members trafficked in compromised credit card account data and counterfeit identifications, and committed money laundering, narcotics trafficking, and various types of computer crime. Specifically, Haggerty operated as a vendor on the organization’s websites using the “Wave” and “G5” nicknames, and sold approximately 1,000 counterfeit identification documents and counterfeit credit cards to other Carder.su members. Haggerty manufactured and sold counterfeit driver’s licenses for at least 15 states and British Columbia.
Fifty-six individuals were charged in four separate indictments in Operation Open Market, which targeted the Carder.su organization. To date, 25 individuals have been convicted and the rest are either fugitives or are pending trial. Haggerty pleaded guilty in February to one count of participation in a racketeer influenced corrupt organization.
The cases were investigated by HSI and the U.S. Secret Service, and are being prosecuted by Trial Attorney Jonathan Ophardt of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Kimberly M. Frayn and Andrew W. Duncan of the District of Nevada.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.com.U.S. Attorney Daniel Bogden and Other Federal Law Enforcement Agency Reps Tour Northern Nevada Indian LandsRead the Press Release
LAS VEGAS, Nev. – U.S. Attorney Daniel G. Bogden and other federal law enforcement representatives last week held meetings with leaders and representatives of 21 northern Nevada Indian tribes, and conducted tours of their reservations, announced United States Attorney Daniel G. Bogden.
“We strive each year to improve communication and coordination with our tribal partners,” said U.S. Attorney Bogden. “There is no quick fix to the public safety problems the tribes face, but my office, as well as the FBI, Bureau of Indian Affairs, DEA and other federal agencies, are committed to fighting crime and promoting justice on Nevada Indian lands.”
The four-day trip, which U.S. Attorney Bogden has been conducting on an annual basis for the last several years, is part of a national effort to establish regular and meaningful consultation and collaboration with tribal officials. U.S. Attorney Bogden was joined on this year’s trip by his Criminal Chief, Eric Johnson, and Reno Branch Chief, Sue Fahami, as well as the Assistant Special Agent in Charge of the Bureau of Indian Affairs (BIA) for District III, Selanhongva McDonald, BIA Special Agent Molly Hernandez, BIA Supervisory Special Agent Clifford C. Serawop, DEA Resident Agent in Charge Jerry Miller, and FBI Special Agents Brian Keeney, Michael Spitzer, and David Elkington.
The tribal consultation meetings were conducted from Monday, July 28 through Thursday, July 31, 2014, and included discussions about tribal issues, investigations, victim advocacy, training, outreach, public safety, and violence against women.
The group visited the Washoe Tribe of Nevada and California; the Carson Colony, Dresslerville, and Stewart Community Councils; Yerington, Walker River and Summit Lake Paiute Tribes; Reno-Sparks Indian Colony; Pyramid Lake Paiute Tribe; Fallon Paiute Tribe; Duckwater Sho-Pai Tribe; Ely Shoshone Tribe; Wells Band Council; Duck Valley Sho-Pai Tribe; South Fork Band Council; Elko Band Council; Elko Te-Moak Tribe; Battle Mountain Band Council; Winnemucca Colony Council; Fort McDermitt Paiute Shoshone Tribe; and Lovelock Paiute Tribe. The group plans to visit the remaining Nevada tribes and reservations later this year.
In addition to the tribal lands consultation tour each year, the Nevada U.S. Attorney’s Office holds a state-wide Native American Conference. This year’s conference, entitled “Working Together for Hope, Healing and Justice” is the 18th State-Wide Native American Conference and will be held Aug. 25 through Aug. 27, 2014, at the Grand Sierra Resort in Reno, Nev. The conference is open to tribal chairs, administrators and tribal members, social and health care workers, law enforcement, court personnel, and others who might benefit learning from a number of topics and issues impacting the tribes.
Nevada is home to 26 federally recognized Native American Tribes located on 31 reservations and colonies. For more information on the U.S. Attorney’s work with Nevada Indian tribes, visit http://www.justice.gov/usao/nv/programs_tribal.html.U.S. Attorney Daniel Bogden and Other Federal Law Enforcement Agency Reps Tour Northern Nevada Indian LandsRead the Press Release
LAS VEGAS, Nev. – U.S. Attorney Daniel G. Bogden and other federal law enforcement representatives last week held meetings with leaders and representatives of 21 northern Nevada Indian tribes, and conducted tours of their reservations, announced United States Attorney Daniel G. Bogden.
“We strive each year to improve communication and coordination with our tribal partners,” said U.S. Attorney Bogden. “There is no quick fix to the public safety problems the tribes face, but my office, as well as the FBI, Bureau of Indian Affairs, DEA and other federal agencies, are committed to fighting crime and promoting justice on Nevada Indian lands.”
The four-day trip, which U.S. Attorney Bogden has been conducting on an annual basis for the last several years, is part of a national effort to establish regular and meaningful consultation and collaboration with tribal officials. U.S. Attorney Bogden was joined on this year’s trip by his Criminal Chief, Eric Johnson, and Reno Branch Chief, Sue Fahami, as well as the Assistant Special Agent in Charge of the Bureau of Indian Affairs (BIA) for District III, Selanhongva McDonald, BIA Special Agent Molly Hernandez, BIA Supervisory Special Agent Clifford C. Serawop, DEA Resident Agent in Charge Jerry Miller, and FBI Special Agents Brian Keeney, Michael Spitzer, and David Elkington.
The tribal consultation meetings were conducted from Monday, July 28 through Thursday, July 31, 2014, and included discussions about tribal issues, investigations, victim advocacy, training, outreach, public safety, and violence against women.
The group visited the Washoe Tribe of Nevada and California; the Carson Colony, Dresslerville, and Stewart Community Councils; Yerington, Walker River and Summit Lake Paiute Tribes; Reno-Sparks Indian Colony; Pyramid Lake Paiute Tribe; Fallon Paiute Tribe; Duckwater Sho-Pai Tribe; Ely Shoshone Tribe; Wells Band Council; Duck Valley Sho-Pai Tribe; South Fork Band Council; Elko Band Council; Elko Te-Moak Tribe; Battle Mountain Band Council; Winnemucca Colony Council; Fort McDermitt Paiute Shoshone Tribe; and Lovelock Paiute Tribe. The group plans to visit the remaining Nevada tribes and reservations later this year.
In addition to the tribal lands consultation tour each year, the Nevada U.S. Attorney’s Office holds a state-wide Native American Conference. This year’s conference, entitled “Working Together for Hope, Healing and Justice” is the 18th State-Wide Native American Conference and will be held Aug. 25 through Aug. 27, 2014, at the Grand Sierra Resort in Reno, Nev. The conference is open to tribal chairs, administrators and tribal members, social and health care workers, law enforcement, court personnel, and others who might benefit learning from a number of topics and issues impacting the tribes.
Nevada is home to 26 federally recognized Native American Tribes located on 31 reservations and colonies. For more information on the U.S. Attorney’s work with Nevada Indian tribes, visit http://www.justice.gov/usao/nv/programs_tribal.html.Las Vegas Man Receives Federal Prison Sentence for Falsifying Vehicle Emissions Test RecordsRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was sentenced today to six months in prison, three years of supervised release, and six months of home confinement for falsifying vehicle emission test results for over 1,000 vehicles, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Henry Alberto Batista, 30, was sentenced by Senior U.S. District Judge Lloyd D. George, and he was permitted to self-surrender to prison by Oct. 3, 2014. Batista pleaded guilty in March to one count of making a false statement to a government agency. Batista’s brother, Luis Batista, also pleaded guilty to making a false statement to a government agency, and was sentenced in May to time served and three years of supervised release. Luis Batista served approximately seven months in prison and is now on home confinement.
“The Batista cases are a continuation of the District of Nevada’s efforts to prevent emissions fraud,” said U.S. Attorney Bogden. “Ten individuals were convicted of this type of offense in Nevada between 2010 and 2012. We will continue to work with the EPA and our other law enforcement partners to protect the public and the environment.”
"Complete and accurate tests of vehicle emissions are necessary to reduce harmful air pollutants," said Jay M. Green, Special Agent in Charge of EPA's criminal enforcement program in Nevada. "The violations in this case took place in Clark County, Nev., which has been designated a 'serious' nonattainment area for carbon monoxide from vehicle emissions. Violators who submit false reports or incorrect data undermine EPA's commitment to protecting clean air for all Americans.”
According to the plea agreement, Batista was a licensed Nevada emissions inspector. Between July 2009 and Dec. 19, 2012, while he was working for a company in Las Vegas that was licensed by the Nevada Department of Motor Vehicles (DMV) to conduct emissions testing, he knowingly made false material statements, representations, or certifications in approximately 1600 records. Batista falsified emissions certificates for vehicles that could not pass the emissions tests by using substitute vehicles that would pass the test or by using a computer programmed emulator to deceive the emissions analyzer into accepting data for the vehicle that could not pass the test.
The cases became a priority in 2008 when the DMV hired a contractor to build a vehicle identification database to find possible emissions testing fraud. DMV discovered that in 2008 alone, there were over 4,000 false vehicle emissions certificates issued in Las Vegas. The Database allows investigators to check the vehicle identification number that the emissions tester enters against the vehicle actually tested. The Clean Air Act requires Las Vegas and the surrounding Clark County, as part of their State Implementation Plan, to have emissions testing because the area is in serious non-attainment for carbon monoxide and ozone. The Batista case presented new challenges to Nevada DMV because of the sophisticated technology used by the Batistas which allowed them to use computer software to simulate the presence of a real vehicle and transmit false information to the emissions analyzer equipment.
The case was investigated by the EPA, Nevada DMV, and FBI. The case was prosecuted by Assistant United States Attorney Roger Yang and Senior Trial Attorney J. Ronald Sutcliffe of the Justice Department’s Environmental Crimes Section.
Accountant Sentenced to 57 Months in Prison for Mortgage Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A California accountant was sentenced today to 57 months in federal prison and ordered to pay approximately $1.1 million in restitution for her role in a mortgage fraud scheme in southern Nevada, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Carmen Denise Mosley, 44, of Granada Hills, Calif., was sentenced by Senior U.S. District Judge Kent J. Dawson. Mosley was convicted by a jury on May 6, 2014, of one count of conspiracy to commit bank and wire fraud and two counts of bank fraud. She was permitted to self-report to prison by Nov. 3, 2014.
“As we have seen time and time again, the persons who committed mortgage fraud in Nevada were primarily employed in the housing and mortgage loan industry,” said U.S. Attorney Bogden. “They used special skills to commit these crimes, which are still impacting the Nevada economy today.”
According to the court records and evidence introduced at trial, from about November 2006 to November 2007, Mosley, a certified public accountant, and co-defendant Zulfiya Karimova, 33, of, Cupertino, California, a loan officer, conspired to obtain mortgage loans from financial institutions by causing materially false information to be placed in the buyers’ mortgage loan applications and supporting documentation. Using this scheme, Mosley and Karimova obtained money and property from the financial institutions by causing money from the loans to be disbursed to them at closing for their own use and benefit. Karimova caused buyers to apply for mortgage loans and caused their applications to contain false information about their income and assets. Mosley provided fraudulent tax documents to support the fraudulent representations in the applications concerning the buyers’ income. Mosley and Karimova caused the financial institutions to loan money to fund the purchase of three homes in the Las Vegas area during 2006 and 2007. The buyers defaulted on the loans, causing more than $1 million in losses to the lenders.
Karimova pleaded guilty prior to trial to conspiracy to commit bank and wire fraud, and bank fraud, and is scheduled to be sentenced on Aug. 20, 2014.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorneys Sarah E. Griswold and Kathryn C. Newman.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Man Charged with Las Vegas Casino RobberyRead the Press Release
LAS VEGAS, Nev. – Federal charges have been filed against a man for robbing a Las Vegas bank on July 22 and a Las Vegas casino cashier’s cage on July 25, 2014, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
John Doe, also identified as Scott Carmitchel, is charged in a criminal complaint with one count of armed bank robbery and one count of interference with commerce by robbery, and is scheduled for an initial appearance at 3:00 p.m. on Thursday, July 31, 2014, before U.S. Magistrate Judge Peggy A. Leen.According to the complaint, at about 8:55 a.m. on July 22, 2014, the defendant allegedly entered a bank on E. Tropicana Boulevard and used a gun with an orange tip to rob a teller. Three days later, on July 25, 2014, at about 8:15 p.m., the defendant allegedly approached the main cashier cage at the casino and used a gun with an orange tip to rob a teller. An investigation led to the apprehension of the defendant on July 27, 2014, in a room at another casino in Las Vegas. Law enforcement investigators recovered a large amount of money and a 6mm BB gun with an orange tip from the hotel room.
The case is being investigated by the FBI and Las Vegas Metropolitan Police Department, and is being prosecuted by Assistant United States Attorney Robert A. Knief.
The public is reminded that a criminal complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.Las Vegas Street Gang Member Pleads Guilty to Racketeering and Drug ChargesRead the Press Release
LAS VEGAS, Nev. On the second day of his federal jury trial, a Las Vegas Playboy Bloods street gang member pleaded guilty to racketeering and drug charges, announced U.S. Attorney Daniel G. Bogden of the District of Nevada and Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division.
“We will use federal resources to prosecute street gang members who commit cowardly and horrible crimes in our community,” said U.S. Attorney Bogden. “I commend the many law enforcement officers who worked on this investigation and assisted us in ensuring a conviction in this case.”
Markette Tillman, 31, pleaded guilty to one count of RICO conspiracy and one count of possession with intent to distribute cocaine base, and is scheduled to be sentenced by U.S. District Judge Kent J. Dawson on Oct. 28, 2014. Tillman faces up to 20 years in prison on each count, as well as fines of up to $1 million. The jury trial began yesterday, July 28, 2014, and the government had called seven witnesses to testify. Tillman is the remaining gang member to be convicted out of 10 charged in a RICO indictment filed in 2008.
According to the guilty plea agreement and evidence produced at trial, the Bloods are a nationally-known criminal street gang whose members engage in drug trafficking and acts of violence. The Playboy Bloods is a local “set” or affiliate of the Bloods, with local control and operation within the Las Vegas metropolitan area. The Playboy Bloods operate primarily in the Sherman Gardens Annex, a public housing complex, located at the corner of Doolittle and H Streets in Las Vegas, and commonly called the “Jets.” On or about Jan. 20, 2004, Tillman aided and abetted the murder of a security guard at the Jets. The guard approached Tillman and several other Playboy Bloods and told them to leave the property. An argument ensued, and the guard rode away on his bicycle to get help. One of the Playboy Bloods fired a gun at the guard, hitting him two times and killing him. Tillman admitted that he aided and abetted the murder of the guard and acted deliberately and intentionally with extreme disregard for human life. Tillman further admitted that he agreed with other members of the Playboy Bloods to manufacture and distribute narcotics, primarily crack cocaine, and to operate drug houses within the Playboy Bloods’ turf. Tillman specifically admitted to distributing in excess of 280 grams of crack cocaine. Tillman also admitted that he distributed crack cocaine to another person on about Jan. 3, 2007, at one of the drug houses.
Nine other defendants who have been convicted and sentenced, as follows:
- Jacorey Taylor, aka “Mo-B,” 31, convicted by a jury of engaging in a racketeering conspiracy, committing violent crimes in aid of racketeering activity, using a firearm during a crime of violence, participating in a drug conspiracy, and possessing crack cocaine with the intent to distribute and sentenced to life in prison Oct. 21, 12013.
- Steven Booth, aka “Stevie-P,” 27, pleaded guilty to RICO conspiracy involving two murders and was sentenced to 20 years in prison on April 10, 2013
- Reginald Dunlap, aka “Bowlie,” 30, pleaded guilty to RICO conspiracy involving one murder and was sentenced to 20 years in prison on April 9, 2013
- Demichael Burks, aka “Mikey P,” 29, pleaded guilty to RICO conspiracy and was sentenced to 6½ years in prison on Dec. 3, 2010
- Anthony Mabry, aka “Akim Slim,” 43, pleaded guilty to RICO conspiracy and was sentenced to 14 years in prison on Oct. 20, 2010
- Delvin Ward, aka “D-Luv,” 37, pleaded guilty to RICO conspiracy and was sentenced to 11 years in prison on Sept. 17, 2010
- Terrence Thomas, aka “Seven,” 40, pleaded guilty to drug conspiracy and was sentenced to 10 years in prison on June 16, 2010
- Sebastian Wigg, aka “Rock,” 36, pleaded guilty to drug conspiracy and was sentenced to five years in prison on March 29, 2010
- Fred Nix, aka “June P,” 36, pleaded guilty to drug conspiracy and was sentenced to five years in prison on March 29, 2010
Las Vegas Man Sentenced to 12+ Years in Federal Prison for Possessing Firearms and Dealing CocaineRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man well-known to local police because of his lengthy criminal history and street gang affiliations, was sentenced today to 155 months in federal prison and five years of supervised release, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Ryan Walton, aka Ryan McLemore, 32, of Las Vegas, was sentenced by U.S. District Judge Andrew P. Gordon. Walton pleaded guilty on April 23, 2014, to three counts of possession of a firearm by a convicted felon, two counts of possession of cocaine with intent to distribute, and one count of use or possession of a firearm in relation to a drug trafficking offense. Walton, who has been connected to the Las Vegas street gang known as the Gerson Park Kingsmen, has had four drug convictions, four firearm-related convictions, and three violent crime convictions in Clark County, Nev. since 2001.
“This case is an excellent example of how we are working together with our federal and local law enforcement partners and the District Attorney’s Office to identify dangerous and recidivist felons,” said U.S. Attorney Bogden. “Despite numerous, previous felony convictions, the defendant continued to endanger the community by possessing firearms in connection with violence and drug dealing. Thanks to our Project Safe Neighborhoods program partnerships and the Safe Streets Task Force, this defendant will no longer be a threat to our community.”
According to the defendant’s guilty plea agreement, three of the counts of conviction resulted from an incident on Sept. 26, 2007, when Las Vegas Metropolitan Police Department (LVMPD) detectives executed a search warrant at his residence and found cocaine, drug paraphernalia, and a rifle. Two more counts of conviction resulted from incidents on Dec. 22 and Dec. 27, 2010, in which LVMPD detectives and Nevada Division of Parole and Probation Officers executed a search of the vehicle Walton drove, and found two semi-automatic handguns and several loaded extended ammunition magazines, body armor, cocaine, marijuana, and drug distribution paraphernalia. The last count of conviction resulted from an incident on Aug. 8, 2012, when North Las Vegas Police Department Officers made contact with Walton as he was driving with a suspended license, and found two semi-automatic handguns in the vehicle, both of which had been reported as stolen.
This case was investigated by the FBI, the Las Vegas Metropolitan Police Department and the North Las Vegas Police Department, as part of the Safe Streets Task Force and Project Safe Neighborhoods program. The case was prosecuted by Assistant U.S. Attorney Cristina D. Silva.Australian Man Pleads Guilty in Las Vegas to Biofuels Fraud SchemeRead the Press Release
WASHINGTON – Nathan Stoliar, 64, of Australia, pleaded guilty in federal court in Las Vegas today to five felonies for his role in multiple schemes, worth in excess of $41 million, to generate fraudulent biodiesel credits and to export biodiesel without providing biodiesel credits to the United States as required by law.
Stoliar and another defendant had been charged in January 2014 in a 57-count indictment alleging conspiracy, wire fraud, false statements under the Clean Air Act, obstruction of justice and conspiracy to engage in money laundering. Following his indictment, Stoliar’s arrest was sought by the United States. Located in Poland, Stoliar returned in early February to the United States to surrender for arrest. Stoliar pleaded guilty Tuesday to one count of conspiracy, one count of conspiracy to engage in money laundering, two counts of wire fraud and one count of making false statements under the Clean Air Act. Stoliar is required by the plea to forfeit $4 million and pay $1 million in restitution. He faces a maximum sentence of 20 years in prison and a $500,000 fine for each count of conspiracy to engage in money laundering and wire fraud, five years in prison and a $250,000 fine for conspiracy, and two years in prison and a $250,000 fine for making false statements under the Clean Air Act.
“Stoliar and his co-conspirator perpetrated a massive fraud against a renewable fuels program created to protect our nation’s energy security and independence,” said Sam Hirsch, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “The Justice Department will continue to pursue fraudsters at home and abroad and protect the integrity of federal programs as it protects the environment.”
“By rooting out fraud, EPA is committed to achieving the environmental goals that Congress envisioned when it created the Renewable Fuel Standard,” said Cynthia Giles, the U.S. Environmental Protection Agency’s (EPA) Assistant Administrator for Enforcement and Compliance Assurance. “This case, like other recent ones, supports legitimate businesses and makes clear to potential violators that EPA and its partners will fight to protect the program’s integrity.”
“With this guilty plea, the defendant admitted that he participated in a conspiracy to defraud the United States government, specifically the EPA, and that he personally gained more than $7 million from the scheme,” said Dan Bogden, U.S. Attorney for the District of Nevada. “These types of schemes are complex and require an enormous expenditure of resources to investigate and prosecute. Because of the tremendous work of the investigators and prosecutors on this case, we were also able to seize and forfeit from the defendant millions of dollars from bank accounts, as well as real property in Nevada and California, jewelry and other assets.”
The Energy Independence and Security Act of 2007 created a number of federally-funded programs that provided monetary incentives for the production and use of renewable fuels such as biodiesel in the United States. Biodiesel producers and importers can generate and attach credits known as “renewable identification numbers,” or RINs. to the gallons of biodiesel they produce or import. Because certain companies (such as companies that sell transportation fuel in the United States) need RINs to comply with regulatory obligations, RINs have significant market value. They are routinely bought and sold in the marketplace. In addition, to ensure that RINs are generated for renewable fuel used only in the United States, and in order to create an incentive for biodiesel in the United States to be used here, anyone who exports biodiesel is required to obtain these valuable RINs for all exported gallons and provide the RINs to EPA.
Stoliar admitted that beginning around September of 2009, he and co-defendant James Jariv operated and controlled a company -- City Farm Biofuel in Vancouver, British Columbia, Canada -- that represented itself as a producer of biodiesel from “feedstocks” such as animal fat and vegetable oils. Stoliar and Jariv also formed a company called Canada Feedstock Supply – that represented itself as City Farm’s supplier of feedstocks necessary to produce biodiesel. Jariv operated and controlled a company based in Las Vegas called Global E Marketing (GEM). Using these three and other closely-held companies, Stoliar and his codefendants claimed to produce biodiesel at the City Farm facility and to import and sell biodiesel to GEM, and then generated and sold RINs based upon this claimed production, sale and importation. In reality, no biodiesel produced at City Farm was ever imported and sold to GEM as claimed. Stoliar and his codefendants used GEM to claim to blend the biodiesel with petroleum diesel, allowing them to sell the RINs separately from any actual biodiesel. Using this scheme, Stoliar and his co-defendants falsely claimed to import, purchase and blend more than 4.2 million gallons of biodiesel. They then sold the RINs, and fraudulently generated more than $7 million.
The indictment also alleges that, beginning around the same time period and continuing through Dec. 31, 2013, Stoliar and Jariv, using their company MJ Biodfuel, bought over 23 million gallons of RIN-less biodiesel that had been blended with small amounts of petroleum diesel to form B-99. The defendants bought the B-99 from unrelated companies in the United States, and this B-99 had been used by other companies to generate and separate RINs from the fuel. Because B-99 cannot be used to again generate a RIN, and because it cannot be used for other tax-related incentives, B-99 sells for substantially less than 100 percent biodiesel (known as B-100). Stoliar sold some of this biodiesel to purchasers in the United States, claiming it was B-100 produced at the City Farm facility and imported into the United States. By claiming this biodiesel was B-100 and not RIN-less B-99, Stoliar marketed the fuel as eligible to be used by purchasers to generate credits and incentives, and Stoliar was able to sell the fuel for as much as $2.30 per gallon more than he otherwise would have been able.
Stoliar and his co-defendants also exported significant amounts of the RIN-less B-99 they bought in the United States to Canada. Stoliar then sold the biodiesel in Canada, and conspired with his co-defendants to not acquire and provide RINs to the United States for these exports as they were required to do by law. In doing so, Stoliar and Jariv failed to give to the United States RINs worth in excess of $34 million, keeping this money for themselves instead.
Finally, Stoliar and Jariv conspired to launder the proceeds of their crimes, utilizing foreign banking institutions and complex financial transactions to promote their illegal schemes and distribute the proceeds of their crimes. Accounts were utilized in Canada, Nevada and Australia, and transactions between the defendants’ closely-held companies were described as other legitimate transactions involving biodiesel, when in reality they were not.
Sentencing for Stoliar has been set for is Oct. 30, 2014 in Las Vegas, Nevada. The investigation that led to today’s plea was the result of collaborative work by the EPA’s Criminal Investigation Division and the FBI, with assistance from the United States Secret Service, the Internal Revenue Service-Criminal Investigations and the Department of Homeland Security.
The case is being prosecuted by Assistant Chief Wayne D. Hettenbach of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division, Assistant U.S. Attorney’s Crane M. Pomerantz and Daniel D. Hollingsworth of the U.S. Attorney’s Office in Nevada, and Assistant Deputy Chief Darrin L. McCullough of the Justice Department’s Criminal Division, Asset Forfeiture and Money Laundering Section, with the assistance of the Justice Department’s Office of International Affairs and the United States Attorney’s Office for the Southern District of Texas.Strip Liquor Store Owner Pleads Guilty to Conspiracy to Defraud the IRSRead the Press Release
LAS VEGAS, Nev. – The owner of several liquor stores on the Las Vegas Strip has pleaded guilty to conspiring to defraud the IRS for failing to report income that was skimmed from the businesses, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Ramzi Suliman pleaded guilty on July 14, 2014, to one count of conspiracy to defraud the United States. Suliman faces up to five years in prison and up to a $250,000 fine, and is scheduled to be sentenced by U.S. District Judge Lloyd D. George on Jan. 12, 2015.
Suliman and co-defendant Jeffrey Nowak were originally charged in a criminal indictment dated April 10, 2013, with one count of conspiracy to defraud the United States, three counts of assisting in filing false corporate tax returns, and four counts of attempting to evade and defeat tax. Nowak’s case is pending, and he is currently scheduled for trial beginning Dec. 3, 2014.
According to Suliman’s guilty plea memorandum, from about 2006 to present, Suliman and Nowak owned and operated three liquor stores in Las Vegas, Super Liquor South Strip at 3999 S. Las Vegas Boulevard, Super Liquor Mid Strip at 2301 S. Las Vegas Boulevard, and Super Liquor McCarran Village at 384 E. Tropicana Avenue. Suliman stated in his plea agreement that he and Nowak diverted cash receipts from the stores to their own use by presenting false books and records to the corporate accountant for use in preparing corporate and individual tax returns for the businesses and the defendants.
From about 2006 to 2009, Suliman admitted that he and Nowak maintained multiple sets of accounting records for their liquor stores, and that they skimmed some of the cash received from one of the stores and agreed not to report it the IRS. Suliman reported that they omitted the skimmed cash from the accounting records that were provided to the accountant for the preparation of their tax returns. Suliman admitted that he was aware of and consented to the skim and occasionally made entries in the records. Suliman admitted that his participation in the conspiracy to defraud the IRS resulted in a tax loss to the government of $200,000 to $400,000 for the years 2006 to 2009.
The case is being investigated by IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Kathryn C. Newman.Las Vegas, Nev. Attorney Sentenced to Prison for Laundering Client Fraud MoniesRead the Press Release
LAS VEGAS, Nev. – A Las Vegas attorney was sentenced to 366 days in prison today for assisting a client launder approximately $2.25 million that had been obtained fraudulently in an online investment scheme, announced the United States Attorney’s Office for the District of Nevada.
R. Christopher Reade, 43, of North Las Vegas, was sentenced by U.S. District Judge Kent J. Dawson, who allowed Reade to self-report to federal prison by Oct. 17, 2014. Reade pleaded guilty in January to one count of accessory after the fact to laundering of monetary instruments.
“Reade’s conduct was not a “one-off” act spawned by the unfortunate coupling of naïveté and necessity,” said First Assistant U.S. Attorney Steven W. Myhre. “It was a knowing, calculated, and sophisticated course and pattern of conduct motivated by greed and engaged in over time. Reade knew that his conduct was wrong and that it ran contrary to his professional obligations as an attorney and would hurt others.”Reade was a licensed attorney in Las Vegas and practiced business law. His client, Rick Young, owned and operated a Nevada corporation known as Global One Group, LLC, a web-based company which purported to train others how to trade in the foreign currency exchange market, or FOREX. Young advertised that he was an experienced and highly successful trader in the FOREX market, who for a fee would teach persons his winning trading strategies and techniques. Young solicited persons to become members of Global One which would allow them access to his web-based live training seminars. Young claimed that he had developed an automated trading program that traded according to his strategies simply by “flipping a switch.” Young enticed members into providing money for “loans” to Global One and told them that they would be able to earn high yield returns on their investments. In actuality, the automated trading program did not exist in the form that Young represented and Young was running an elaborate Ponzi scheme in which proceeds from the member loans were diverted to Young his own use. From about 2006 to 2008, Young derived approximately $16 million in proceeds from the scheme.
Beginning in February 2007, Reade represented Young and Global One in connection with business litigation and transactions. In March 2007, Young intended to use Global One loan monies to purchase a FOREX brokerage company named Trend. To disguise the source and ownership of the illegal proceeds, Young authorized Reade to create and control a holding corporation called Way FX Corp. In April 2007, Young transferred approximately $2.25 million from Global One accounts to the Way FX bank account controlled by Reade, and Reade signed an agreement to purchase Trend. On August 21, 2007, Reade received $75,000 from Global One for his services related to Way FX and the purchase of Trend.
From about May 2007 to August 2007, in connection with an investigation by the National Futures Association about the ownership and funding of Trend, Reade falsely told investigators that he was unaware who owned Global One or how Global One raised money, and that the funds used to purchase Trend came from his personal contributions and not from Global One. Reade knew that his statements were false and that Young had committed the offense of money laundering. Reade also knew that he had assisted Young in order to hinder or prevent the investigation of Young in connection with the money laundering.
In March 2011, Young was convicted by a federal jury in the District of Nevada of conspiracy, fraud and money laundering charges. In December 2011, he was sentenced to 25 years in prison and ordered to pay $13.3 million in restitution.
The case was investigated by the FBI and IRS Criminal Investigation, and prosecuted by First Assistant United States Attorney Steven W. Myhre and Assistant United States Attorney James E. Keller.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Man Who Received over $3 Million Selling Unregistered Diamond Mine Stock Sentenced to Four Years in PrisonRead the Press Release
LAS VEGAS, Nev. – A former Las Vegas resident who made over $3 million from selling unregistered penny stock in a purported diamond mine company known as CMKM, has been sentenced to four years in prison, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Marco Glisson, 59, formerly of Las Vegas, but most recently of Miami, Fla., was sentenced on July 10, 2014, by U.S. District Judge Larry R. Hicks. Glisson pleaded guilty on Jan. 15, 2014, to conspiracy to offer and sell unregistered securities and tax evasion. Judge Hicks denied Glisson’s request for a self-surrender to prison, and ordered him into federal custody at the end of the sentencing hearing.
According to Glisson’s plea agreement, Glisson, who was not a registered broker or dealer of securities, conspired with others to purchase and sell CMKM, Inc. penny stock after the U.S. Securities and Exchange Commission (SEC) permanently revoked CMKM’s trading privileges. Beginning in about December 2005, Glisson, and his conspirators used a transfer agent/company known as Global Stock Transfer LLC to cancel CMKM’s stock certificates that were held in the names of other co-conspirators and reissue them to Glisson. Glisson marketed the stock in internet chat rooms under the name “Deli dog” or Deli,” and also used the mail and other resources to offer and sell it. As Glisson sold the shares of CMKM stock, the stock transfer company would cancel them and reissue them to the purchasers. From December 2005 to May 2006, Glisson sold billions of shares of CMKM stock to at least 65 different persons in the United States and Canada. In June 2006, the SEC contacted Glisson and told him that it was illegal to publicly offer and sell unregistered securities. Glisson stopped selling the CMKM stock for a few months, but in September 2006, he resumed offering and selling the CMKM stock and continued selling it until April 2007. Glisson’s sales of billions of unregistered shares of CMKM stock from 2006 to 2007 yielded him more than $1.7 million.
Glisson failed to pay the federal income taxes he owed for 2006 and 2007, and instead took affirmative acts to hide the income, such as placing money in bank accounts under the name of his wife and others and using cash. As a result, Glisson owes over $400,000 in back taxes to the IRS for 2006 and 2007.
Ten co-conspirators were also charged in a separate case pending in the District Court for the District of Nevada. Five are pending trial, one pleaded guilty and is awaiting sentencing, one is a fugitive, one is awaiting extradition, one is deceased, and the charges against another were dismissed.
The case is being investigated by the FBI and IRS Criminal Investigation, and prosecuted by Assistant U.S. Attorneys Kathryn Newman and Andrew Duncan.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Former Chief Operating Officer of Nevada Endoscopy Center Pleads Guilty to Medicare/Medicaid Fraud Billing SchemeRead the Press Release
LAS VEGAS, Nev. – The former chief operating officer of a defunct Nevada endoscopy center, pleaded guilty today to conspiring with the former owner/physician of the center, Dipak Desai, to defraud Medicare, Medicaid and other private health insurance companies by inflating and overcharging for anesthesia services it provided, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Tonya Rushing, 46, of Las Vegas, pleaded guilty before U.S. District Judge Larry R. Hicks to one count of conspiracy to commit health care fraud, and is scheduled to be sentenced on Sept. 25, 2014, at 1:00 p.m. Rushing faces up to five years in prison and a $250,000 fine.
“Those perpetrating Medicare and Medicaid fraud cheat both taxpayers and vulnerable patients,” said U.S. Attorney Bogden. “We will hold criminals accountable and will seek to recover stolen dollars in each case of healthcare fraud we prosecute.”
According to the guilty plea agreement, between about January 2005 and February 2008, Desai and Rushing conspired to overcharge Medicare, Medicaid, and other private health insurance companies at the Endoscopy Center of Southern Nevada by significantly overstating the amount of time the certified registered nurse anesthetists spent with patients on a given procedure. Desai and Rushing created a separate company, Healthcare Business Solutions, owned by Rushing, to handle the billing for the anesthesia services. This company received approximately nine percent of all money collected for anesthesia services rendered at the endoscopy center. Desai and Rushing imposed intense pressure on the endoscopy center employees to schedule and treat as many patients as possible in a day, and instructed the nurse anesthetists to overstate in their records the amount of time they spent on the anesthesia procedures. Desai and Rushing also instructed the office staff to rely on the false anesthesia records when preparing the claims for reimbursement which were sent to Medicare, Medicaid and the insurance companies. The plea agreement states that Rushing received approximately $1.3 million as her share of the inflated anesthesia billing scheme.
Co-defendant Desai is currently being evaluated for his competency to face trial.
This case was investigated by the FBI, Office of the Nevada Attorney General, Health and Human Services Office of Inspector General, Department of Labor Office of Inspector General, Food and Drug Administration Office of Criminal Investigations, and the United States Postal Inspection Service, and prosecuted by Assistant U.S. Attorney Crane M. Pomerantz and Mark N. Kemberling, who was designated as a Special Assistant U.S. Attorney on this case and is Chief Deputy Nevada Attorney General.According to a recent report by the Inspector General for the U.S. Department of Health and Human Services, for every dollar the Departments of Justice and Health and Human Services have spent fighting health care fraud, they have returned an average of nearly eight dollars to the U.S. Treasury, the Medicare Trust Fund and others. To learn more or to report Medicare fraud, go to http://www.stopmedicarefraud.gov/
Former Strip Club Owner Rick Rizzolo Charged with Felony Tax EvasionRead the Press Release
LAS VEGAS, Nev. – Former Las Vegas strip club owner Rick Rizzolo was indicted by the federal grand jury today on charges that he attempted to evade over $2.5 million in employment and income taxes, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Rizzolo is charged with two counts of attempt to evade and defeat the payment of tax. Special Agents with IRS Criminal Investigation arrested him this afternoon, and he will be scheduled for an initial appearance and arraignment before a United States Magistrate Judge tomorrow. If convicted, Rizzolo faces up to five years in prison and up to a $250,000 fine on each count.
The indictment alleges that beginning on about June 28, 2006, and continuing to May 31, 2011, Rizzolo allegedly attempted to evade the payment of approximately $1.7 million in employment taxes that he owed for 2000 to 2002, and $861,075 in income taxes he owed for 2006, by concealing and attempting to conceal from the IRS the nature, extent and location of his assets, by making false statements to IRS employees, and by placing funds and property in the names of nominees and beyond the reach of process.
The case is being investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorneys Phillip N. Smith, Jr. and Sarah E. Griswold.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Federal Jury Convicts Man for Luring Girl for Sex on Craigs ListRead the Press Release
LAS VEGAS, Nev. – Following a two-day jury trial, a local man was convicted today of using the internet to knowingly persuade, induce and entice a minor girl to engage in sexual activity with him during March 2013, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Sergio Torres, 34, of North Las Vegas, was convicted of one count of coercion and enticement and is scheduled to be sentenced on Oct. 6, 2014, at 10:30 a.m. Torres faces a minimum of 10 years in prison and a fine of up to $250,000 on each count.“As this case warns, there are predators lurking openly on the internet seeking children and minors for sex,” said U.S. Attorney Bogden. “Everyone, and particularly parents and teenagers, need to be especially careful when responding to online advertisements.”
According to the court records, on March 7, 2013, a Henderson Police Department detective working undercover and posing as a 14-year-old girl, responded to an advertisement on craigslist.com. The poster of the advertisement, later identified as Torres, stated he was a virgin and was seeking a girl to “take his virginity.” Over the next two weeks, the detective and Torres exchanged emails and texts, and Torres discussed plans and arrangements for a sexual encounter with the girl. On March 18, 2013, Torres texted that he had made a room reservation at Sunset Station for March 25, 2013, and that he had purchased lingerie and would meet the girl at a parking lot. On March 25, detectives arrested Torres when he arrived in the parking lot, and seized from him the telephone that he had used to text and call the detective, as well as a hotel room key, condoms, sexual lubricant, lingerie, and stockings in a small size.
The case was investigated by the Henderson Police Department, and is being prosecuted by Assistant United States Attorney Roger Yang and Special Assistant United States Attorney Allison Herr.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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, please visit www.usdoj.gov/psc. For more information about internet
safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Las Vegas, Nev. Montessori School Employee Charged with Federal Child Pornography CrimesRead the Press Release
LAS VEGAS, Nev. – A man who is employed at the Spring Valley Montessori School in Las Vegas appeared in federal court this afternoon on charges that he received and possessed child pornography, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
John-Benedict Galang Alcantara, 24, is charged in a criminal complaint with one count of receipt of child pornography and one count of possession of child pornography. Alcantara self-surrendered to federal authorities this morning, and had an initial appearance hearing at 3:00 p.m. before U.S. Magistrate Judge Cam Ferenbach, and was released on bond with special conditions. If convicted, Alcantara faces a minimum of five years and a maximum of 20 years in prison on the receipt charge and a maximum of 10 years in prison on the possession charge, as well as fines of up to $250,000 on each count.According to the criminal complaint, in April 2014, a Las Vegas Metropolitan Police Department detective assigned to the FBI’s Child Exploitation Task Force determined that child pornography images and videos were being shared online through an internet address traced to Alcantara’s residence in Las Vegas. One of the videos depicted a prepubescent female child having sex with an adult male. On June 29, 2014, a state court search warrant was executed at the residence and law enforcement authorities found cartoon images of child erotica hanging on the walls in the bedroom occupied by Alcantara. Law enforcement authorities seized several computers and related devices from the home containing numerous images of child pornography. Another search warrant was executed at the Montessori School where the defendant works in the area of computer support, and law enforcement authorities seized four more computers which were allegedly under Alcantara’s control. Authorities determined that efforts had been made to erase the hard drives of these computers; however, remnants of child pornography files were found on a least one of them.
The case is being investigated by the FBI and Las Vegas Metropolitan Police Department, and is being prosecuted by Special Assistant United States Attorney Allison Herr.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal
The public is reminded that a criminal complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
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, please visit www.usdoj.gov/psc. For more information about internet
safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Las Vegas Doctor Pleads Guilty to Drug Conspiracy Charges for Writing Unlawful Oxycodone PrescriptionsRead the Press Release
LAS VEGAS, Nev. – A Las Vegas physician pleaded guilty today to federal drug conspiracy charges for writing prescriptions for oxycodone for persons he did not see or treat, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Victor Bruce M.D., 49, of Las Vegas, pleaded guilty before U.S. District Judge Andrew P. Gordon to one count of conspiracy to distribute a controlled substance, and is scheduled to be sentenced on Oct. 9, 2014, at 9:00 a.m. Bruce faces up to 20 years in prison and a $1 million fine.
“We will continue to identify and prosecute these bad doctors who are using their medical licenses to illegally deal drugs,” said U.S. Attorney Bogden. “We will also recommend the imposition of lengthy sentences of imprisonment because these doctors are using their medical licenses and special skills to commit these drug crimes, fully knowing the harmful impact and effects of these addictive painkillers. This was simply a money making sham, and none of the prescriptions were being issued for a legitimate medical purpose or in the usual course of professional practice.”
According to the guilty plea agreement, Bruce, a Nevada-licensed physician, operates a medical practice known as Swan Lake Medical Center at 3330 South Hualapai Way in Las Vegas. Bruce represents himself to be a pain management specialist and is the only physician working at the practice. Beginning at a date unknown and continuing to around November 2013, Bruce and several co-conspirators, including Robert Wolfe, aka “old man,” Millicent Epino, Dylan DuBois, Jennifer Monge, and Jade Lepoma, conspired to distribute oxycodone. Wolfe would provide Bruce a list of names, and Bruce would write prescriptions for oxycodone for those names and give them to Wolfe. Bruce also created “dummy” medical records for those persons, to make it appear as if a legitimate patient encounter had taken place. On four occasions in June 2013, an undercover law enforcement officer purchased Bruce-written oxycodone prescriptions from Wolfe for $700 each. On each occasion, the undercover provided Wolfe or another co-conspirator with copies of Nevada driver’s licenses bearing the names of customers. Usually within a day, Wolfe or another co-conspirator would then provide the undercover with written prescriptions for oxycodone. Bruce knew he was writing prescriptions for controlled substances to customers he did not treat and who did not need the prescriptions. None of the prescriptions were issued for a legitimate medical purpose or in the usual course of profession practice.
Wolfe and several of the other co-conspirators are also charged in the drug conspiracy. Their cases are currently pending.
This case was investigated by the Nevada High Intensity Drug Trafficking Area (Nevada HIDTA) Pharm-Net Task Force, including the DEA, IRS Criminal Investigation, Las Vegas Metropolitan Police Department, Henderson Police Department, North Las Vegas Police Department, and the Nevada Division of Investigations, and prosecuted by Assistant U.S. Attorneys Crane M. Pomerantz and Cristina D. Silva.Nevada Man Sentenced to 9 Years in Prison in Synthetic Drug CaseRead the Press Release
RENO, Nev. – A northern Nevada man was sentenced this week to nine years in prison for distributing synthetic cannabinoids out of his convenience store business in Reno, and for storing large quantities of the substance for distribution in his home in Reno, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Iqbal Singh-Sidhu, 34, was sentenced on Monday, June 9, 2014, by U.S. District Judge Robert C. Jones. Singh-Sidhu was convicted by a federal jury in February 2014 of 16 counts of possession with the intent to distribute and distribution of controlled substances and controlled substance analogues intended for human consumption, and one count of maintaining a drug-involved premise. It was the first federal jury trial of its kind in Nevada involving synthetic cannabinoids, commonly referred to as “spice.”
“Synthetic drugs such as “spice” and “fake weed” are oftentimes more potent and dangerous than real marijuana and are being sold to an unwary public in convenience stores, head shops, gas stations and online,” said U.S. Attorney Bogden. “These synthetics are powerful substances that are typically sprayed indiscriminately on a base product to create ‘spice,’ and when consumed have caused hallucinations and dangerous levels of overdose. We are working diligently with our local, state and federal law enforcement partners to prosecute persons who callously and recklessly distribute them.”
According to the court records and evidence introduced at trial, on four separate occasions in September 2012, Singh-Sidhu knowingly and unlawfully distributed controlled substances, and analogues intended for human consumption, in violation of the Controlled Substances Act and the Controlled Substance Analogue Enforcement Act. The synthetic substances that he distributed over the course of these four occasions were labeled “Diablo,” “Hayze,” “White Rhino,” and “Smokin Dragon.”
On Feb. 5, 2013, agents executed federal search warrants at 1801 West 4th Street, in Reno, and at Singh-Sidhu’s residence at 3101 Platte River Drive, in Reno, and recovered hundreds of packages of various types of “spice” in ready to distribute packaging. The overall street value of the “spice” found at his business and home was approximately $20,000.
The synthetic drugs Singh-Sidhu sold, and later possessed with intent to distribute at his business and his home in February 2013, contained one or more of the controlled substances, JWH-018, JWH-073, JWH-081, and AM2201, and/or one or more of the analogues intended for human consumption, UR-144, XLR11, and 5-MeO-DALT. Synthetic drugs containing these substances have hallucinogenic effects on the central nervous system. The physiological effects these substances cause are stronger and more potent than those caused by marijuana.
Singh-Sidhu also unlawfully maintained the business of Grab n Go Food n Liquors for the purpose of distributing “spice” containing these controlled substances, and analogues intended for human consumption.
According to the Office of National Drug Control Policy, synthetic drugs are a rapidly emerging threat and there is an increasingly expanding array of synthetic drugs available. Use of synthetic drugs is alarmingly high, especially among young people. The contents and effects of synthetic drugs are unpredictable due to a constantly changing variety of chemicals used in manufacturing processes devoid of quality controls and government regulatory oversight. Health warnings have been issued by numerous public health authorities and poison control centers describing the adverse health effects associated with the use of synthetic drugs. The Administration has been working with federal, congressional, state, local, and non-governmental partners to put policies and legislation in place to combat this threat, and to educate people about the tremendous health risk posed by these substances. For more information on the risks and dangers of synthetic drugs, go to http://www.whitehouse.gov/ondcp/ondcp-fact-sheets/synthetic-drugs-k2-spice-bath-salts.
The case was prosecuted by Assistant U.S. Attorneys James E. Keller and Carla Higginbotham and investigated by the Drug Enforcement Administration (DEA), including its Office of Diversion Control, Drug and Chemical Evaluation Section, in Arlington, VirginiaShooting Range Owner Indicted for Illegal Firearms SalesRead the Press Release
RENO, Nev. – A federally-licensed firearms dealer and owner of an indoor shooting range in Reno, Nev., was indicted today by the federal grand jury on charges that he unlawfully sold multiple firearms, including guns with obliterated serial numbers and machine guns, to undercover ATF agents at his business in April and May 2014, announced Daniel G. Bogden, United States Attorney for the District of Nevada and Joseph M. Riehl, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“Federally licensed firearms dealers are entrusted to uphold federal laws pertaining to the importation, manufacture and sales of firearms,” said U.S. Attorney Bogden. “We will be especially vigilant in our investigations and prosecutions of firearm dealers who consciously choose to violate these laws.”
James David Harwin, 59, of Reno, is charged in a six-count federal indictment with one count of illegal sale by a federally licensed dealer to an out-of-state resident, one count of possession of a firearm with an obliterated, removed or altered serial number, three counts of transfer of a firearm in violation of the National Firearms Act, and one count of obliteration, alteration, or removal of the serial number of a firearm. Harwin, who was previously charged by criminal complaint, is currently in federal custody, and is scheduled for an arraignment and plea on June 12, 2014, at 3:00 p.m. If convicted, he faces up to five years in prison on the illegal sale charge and up to 10 years in prison on each of the other five counts, as well as fines of up to $250,000 on each count.
According to the allegations in the criminal complaint and indictment, James Harwin and Safe Shot LLC possessed a Federal Firearms License to manufacture and sell firearms. Safe Shot LLC did business as the Safe Shot Indoor Shooting Range, located at 9425 Double R Boulevard in Reno. On or about April 17, 2014, Harwin unlawfully sold four handguns to two undercover ATF agents who told Harwin they were residents of Sacramento, Calif. One of the handguns had an obliterated serial number. On May 2, 2014, Harwin sold a machine gun with an obliterated serial number to the undercover ATF agents, and on May 29, 2014, Harwin unlawfully sold a Street Sweeper shotgun and three machine guns to the undercover agents. Harwin removed the serial numbers on one of the machine guns in the presence of the undercover agents.
“ATF is charged with ensuring compliance of all applicable laws and regulations as it relates to licensed federal firearms dealers,” said Special Agent in Charge Riehl. “We will aggressively pursue those individuals, including federally licensed dealers who try to circumvent and violate the federal firearms laws, in an effort to protect the public and prevent unlawful machine guns and other firearms from getting into the hands of criminals.”
This case is being prosecuted by Assistant U.S. Attorney Megan Rachow and investigated by ATF.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.Federal Jury Convicts Man of String of Armed Robberies of Las Vegas Convenience Stores During 2013Read the Press Release
LAS VEGAS, Nev. – Following an 11-day federal jury trial, a man accused of robbing 13 convenience stores and a small casino in the Las Vegas area during 2013, was convicted today of all counts charged, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Abdul Howard, 48, of Las Vegas, was convicted of one count of felon in possession of a firearm, 14 counts of interference with commerce by robbery, and 12 counts of possession of a firearm during, in relation to, and in furtherance of a crime of violence. Howard is scheduled to be sentenced by U.S. District Judge Gloria M. Navarro on Nov. 6, 2014, at 9:00 a.m., and faces mandatory life in prison.
“Violent criminals such as Abdul Howard are a threat and danger to the entire community,” said U.S. Attorney Bogden. “We are pleased to be able to assist local law enforcement and use federal laws in these types of cases, which carry stiff mandatory minimum penalties and ensure that career criminals such as Mr. Howard are incarcerated for very long periods of time.”
According to the court records and evidence introduced at trial, Howard robbed 13 convenience stores and one casino in the Las Vegas area between Jan. 15, 2013, and April 16, 2013. Howard robbed most of the businesses late at night using a semi-automatic handgun which he used to threatened store employees and some customers. In some of the robberies, Howard pointed the handgun at an employee or stuck a gun into the employee’s body or head. In one instance, Howard fired a handgun at an employee, and in another, Howard shot an employee in the neck. Investigators dubbed Howard the “Cinched Hoodie Robber,” because he typically entered the businesses wearing a hooded sweatshirt with the hood “cinched” up around his face in an effort to conceal his identity.Howard has at least five prior felony convictions in New York, Florida, and Nevada related to robbery, burglary, cocaine distribution and sexually motivated coercion.
This case was investigated by the FBI, Las Vegas Metropolitan Police Department Robbery Section, and North Las Vegas Police Department, as part of the Safe Streets Task Force and Project Safe Neighborhoods program, and prosecuted by Assistant U.S. Attorneys Phillip N. Smith, Jr. and Cristina D. Silva.Sparks Man Sentenced in Sex Trafficking CaseRead the Press Release
RENO, Nev. – A Sparks, Nev. resident who was trading laptop computers for sex with minor girls, was sentenced today to five years in prison and 10 years of supervised release, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Shane Deric Bateman, 41, who pleaded guilty on March 3, 2014, to one count of attempted coercion and enticement of a minor for sex, was sentenced by U.S. District Judge Robert C. Jones. Bateman will also have to register as a sex offender.
“We will continue to work with our local and federal law enforcement partners to investigate and prosecute persons who exploit minors for sex,” said U.S. Attorney Bogden. “This includes using federal laws to pursue ‘johns’ or customers of prostitution.”
According to the court records, on Nov. 5, 2013, the Innocence Lost Task Force in Reno was involved in a sex trafficking investigation in which a 16-year-old female victim reported that she had sex with Shane Bateman in exchange for a laptop computer. The 16-year-old provided a Task Force detective with the laptop computer and her cell phone, which she said contained contact information for pimps or “johns.”
On Nov. 6, 2013, Bateman sent an unsolicited text to the 16-year-old’s cell phone indicating that he had another laptop with a built-in web camera which he would be willing to trade for sex with any other young girl that the 16-year-old knew. The detective began communicating with Bateman as if he were the 16-year-old, telling Bateman that “she” had another girl in mind for him and that “she” would have the other girl contact him. On Nov. 7, 2013, the detective, posing as a different 16-year-old named “Kylie,” engaged in text message conversations with Bateman about having sex with him in exchange for a laptop computer. Bateman agreed to meet Kylie that afternoon at a room at a Motel 6 in Reno, Nev. in order to engage in sexual activity in exchange for the laptop computer. When Bateman arrived at the motel room, he was arrested by detectives.
The investigation was conducted by the Innocence Lost Task Force, which is made up of the FBI and the Regional Street Enforcement Team, which includes the Reno Police Department, Sparks Police Department, FBI, and UNR Police Department. The case was prosecuted by Assistant United States Attorney Carla Higginbotham.
The case has been 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, please visit www.usdoj.gov/psc. For more information about internet
safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Defendant in “Operation Open Market” Sentenced for Committing New Financial Fraud Crimes While in Halfway HouseRead the Press Release
LAS VEGAS, Nev. – A defendant sentenced last week to over five years in prison in an online identity theft and credit card trafficking case, “Operation Open Market,” has been sentenced in a separate case to two more years in prison for committing identity theft and financial fraud crimes while he was in a Las Vegas halfway house, announced Daniel G. Bogden, United States Attorney for the District of Nevada, Acting Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, and Special Agent in Charge Claude Arnold of Homeland Security Investigations (HSI) in Los Angeles.
“Some defendants never learn,” said U.S. Attorney Bogden. “Lofton thought he could get away with continuing his criminal operation in the halfway house, but thanks to sophisticated law enforcement efforts, he will now be serving two more years in prison.”
Michael Lofton, aka “Killit” and “Lofeazy”, 36, of Las Vegas, was sentenced on May 28, 2014, by U.S. District Judge James C. Mahan to 24 months in prison, to run consecutively to the 63 months sentence of imprisonment he received on May 22, 2014. Lofton pleaded guilty in January to one count of aggravated identity theft, and admitted that he conspired with others to unlawfully use and traffic in access devices, such as debit and credit cards. Specifically, on Dec. 30, 2012, Lofton fraudulently obtained an iPad, iPad docking station, iPad case, and Kindle Fire HD by using an unauthorized credit account number. Lofton committed the crime while he was residing in a halfway house in Las Vegas awaiting trial in the Operation Open Market case.
In Operation Open Market, Lofton pleaded guilty to participating in a racketeer influenced corrupt organization, Carder.su, which trafficked in compromised credit card account data and counterfeit identifications, and committed money laundering, narcotics trafficking, and various types of computer crime. Fifty-six persons were charged in four separate indictments in Operation Open Market.
The cases were investigated by HSI and the U.S. Secret Service, and are being prosecuted by Assistant U.S. Attorneys Kimberly M. Frayn and Andrew W. Duncan, and Trial Attorney Jonathan Ophardt of the U.S. Department of Justice Organized Crime and Gang Section.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Man Who Committed Violent Carjacking at Las Vegas Apartment Complex Sentenced to 15 Years in Federal PrisonRead the Press Release
LAS VEGAS, Nev. – A man who violently assaulted a woman with a taser device at an apartment complex in Las Vegas and carjacked her vehicle, was sentenced this week to 15 years in federal prison and five years of supervised release, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Keith Michael Costa, 35, of Las Vegas, was sentenced on May 27, 2014, by U.S. District Judge Jennifer A. Dorsey. Costa pleaded guilty on March 20, 2014, to one count of carjacking resulting in serious bodily injury and one count of felon in possession of a firearm.
“When possible, we will use federal laws to prosecute recidivist offenders who are committing violent crimes in our Nevada communities,” said U.S. Attorney Bogden. “We work with our local police departments to regularly review violent crimes that occur in Nevada to determine whether they should be prosecuted federally.”
According to the court records, on July 2, 2013, Costa went to the office of an apartment complex on West Charleston Boulevard to inquire about renting several apartments. As Costa left the office, he encountered a female tenant and demanded her car keys. When she refused to turn them over, Costa pushed her to the ground and shocked her with the taser at least seven or eight times. Costa then tried to steal the victim’s 2009 Audi A4 sedan, but the keys were not in the car. The victim ran inside the office, and Costa chased after her and continued to attack her with the taser in the presence of the manager and another employee until she turned over the keys to her car. Costa then fled in the car. The victim, who was an exchange student from Thailand, had to be treated at the hospital for the injuries she sustained during the carjacking.
On July 23, 2013, a Las Vegas Metropolitan Police Department Officer stopped Costa in Las Vegas as he was driving a black BMW sedan with paper plates. Costa argued with the officer and fled in the BMW, leading the patrol officer and a backup unit on a high speed car chase on surface streets and on U.S.95. During the pursuit, Costa was driving over medians, going the opposite way in traffic, and traveling at speeds of up to 140 miles per hour. At one point, Costa almost struck a female pedestrian who was pushing a baby stroller. Costa was ultimately able to escape the police. Two days later, Las Vegas Metropolitan Police Department Officers located Costa at a motel on E. Tropicana and arrested him. Costa fought physically with police officers who were trying to arrest him, and reached for a firearm in his pant waistband, which turned out to be a stolen 9 millimeter handgun. Costa, who in 2002 had previously been convicted in Nevada of the federal felony offense of access device fraud, was prohibited from possessing the gun.
This case was investigated by the FBI and the Las Vegas Metropolitan Police Department, as part of the Safe Streets Task Force and Project Safe Neighborhoods program. The case was prosecuted by Assistant U.S. Attorney Phillip N. Smith, Jr.Man Sentenced to Eight Years in Prison for Transporting Teenage Girls from California to Nevada to Work as ProstitutesRead the Press Release
LAS VEGAS, Nev. – A California man has been sentenced to eight years in prison for inducing and enticing two minor girls to travel from Oakland, Calif., to Las Vegas, Nev., to work as prostitutes during April and May 2013, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Seagram Joshua Miller, 21, of Hayward, Calif., who pleaded guilty in January to one count of coercion and enticement of a minor, was sentenced on Tuesday, May 20, 2014, by U.S. District Judge Kent J. Dawson. Miller was also ordered to serve 10 years of supervised release following his release from prison, and he will have to register as a sex offender. Miller’s co-defendant, Ray Darnell Webb, 20, also pleaded guilty to one count of coercion and enticement, and was sentenced in April to eight years in prison.
“These sentences send a strong message that coercing a minor to work as a prostitute is a deplorable and shameful crime that will land you in prison for a long time,” said U.S. Attorney Bogden. “It is simply unacceptable for adults to take advantage of minors in such a way that forever will impact their lives. We are working with our community and law enforcement partners to arrest and prosecute the persons who commit these crimes.”
According to the court records plea agreements, in early 2013, Webb and Miller met one of the victims, a 12-year-old female, in Oakland, Calif. where she was working as a prostitute. Shortly thereafter, the 12-year-old began working as a prostitute for Webb and Miller, and provided the money she made working as a prostitute to them. In about April 2013, Miller met a 16-year-old female on Facebook, and she also began working as a prostitute for Miller and Webb. In April 2013, Miller, Webb, and the two minor girls, decided to travel to Las Vegas to make money. Before leaving, Webb and the 16-year-old girl posted an advertisement on MyRedbook.com so that they would have dates lined up when they arrived in Las Vegas. The advertisement contained photographs of the 16-year-old. On April 29, 2013, Webb, Miller, and the two minor girls, drove from Oakland to Las Vegas and stayed in a rented hotel room on Las Vegas Boulevard. Both girls worked as prostitutes on April 30 and in early May.
The cases were investigated the FBI and Las Vegas Metropolitan Police Department, as part of the Innocence Lost Task Force. The cases were prosecuted by Assistant United States Attorneys Nicholas D. Dickinson and Phillip N. Smith, Jr.The cases were brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit www.usdoj.gov/psc.Man Sentenced for Beauty Supply Store ArsonRead the Press Release
LAS VEGAS, Nev. – A local man who maliciously attempted to destroy a Las Vegas beauty supply store by fire and explosive devices, was sentenced today to five years in prison, three years of supervised release, and ordered to pay nearly $1.7 million in restitution, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Reynaldo Staana, 48, of Las Vegas, who pleaded guilty in February to one count of arson of property used in or affecting interstate commerce, was sentenced by U.S. District Judge James C. Mahan.
“Defendant Staana caused over $1 million in property damage and destruction,” said U.S. Attorney Bogden. “It is very fortunate that his dangerous actions did not also result in injury or the loss of human life.”
According to the court records filed in the case, Staana was an assistant manager at Beauty Supply Warehouse located at 3310 South Nellis Boulevard in Las Vegas, but was terminated from his position in August 2013. On about Sept. 8, 2013, Staana entered the business after hours without permission in order to commit theft of property, and while inside the business, intentionally and maliciously used fire to ignite a flammable liquid with intent to destroy the business. The fire caused more than $1 million in damage to structure and contents.
Staana has been in custody since his arrest in September 2013.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Clark County Fire Department, and the Las Vegas Metropolitan Police Department, and was prosecuted by Assistant U.S. Attorney Christina M. Brown.Men Convicted of Stealing Controlled Substances and Designer Goods from Las Vegas Warehouses and Delivery DriversRead the Press Release
LAS VEGAS, Nev. – Following a 10-day jury trial, three men who were breaking into warehouses and delivery vans in the Las Vegas area and stealing controlled substances and designer goods, and had planned to kidnap and rob a delivery driver, were convicted by a federal jury today of conspiracy, robbery, theft, firearm, and other charges, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
“The U.S. Department of Justice will work with our local law enforcement partners and use federal laws to prosecute persons who use guns and violence to commit robberies and thefts in our community,” said U.S. Attorney Bogden. “Not only were these defendants committing thefts and planning a violent robbery, but they were selling stolen controlled substances causing additional harm to the community.”
Julio De Armas Diaz, 54, Alexis Torres Simon, 45, and Alexander Del Valle Garcia, 41, all of Las Vegas, were all convicted of one count of conspiracy to interfere with commerce by robbery, one count of attempted interference with commerce by robbery, one count of possession of a firearm in furtherance of a crime of violence, and one count of conspiracy to commit theft from interstate shipment. Additionally, Garcia was convicted of one count of making a false statement to the FBI, Diaz was convicted of one count of making a false statement to the FBI and three counts of theft from interstate shipment, and Simon was convicted of one count of felon in possession of a firearm and three counts of theft from interstate shipment. They are in custody and are scheduled to be sentenced on Aug. 18, 2014, by U.S. District Judge Jennifer A. Dorsey.
According to the court records and evidence introduced at trial, beginning no later than about October 2012 and continuing to April 8, 2013, Diaz and Simon broke into warehouses, storage facilities, and delivery vans, and stole designer handbags and controlled substances and sold the goods for their own financial gain. The defendants broke into warehouses by cutting through warehouse doors, and broke into delivery vans and other vehicles that had been left unsupervised in commercial parking lots. Between April 4 and April 8, 2013, Diaz, Simon and Garcia conspired to kidnap and rob a delivery van driver with a firearm in order to obtain control and possession of the van containing controlled substances. On April 8, Garcia falsely told FBI agents that he was driving a friend to apply for a job the morning of his arrest and that gloves and duct tape found in the car he was driving belonged to the registered owner of the vehicle. On April 8, Diaz falsely told the FBI that he had no knowledge of a Beretta 9mm firearm recovered that day from the trunk of his vehicle, when he knew that the firearm had been placed in the trunk to be used that day in the planned robbery and theft of the van driver.
The defendants face up to 20 years in prison on each of the two robbery charges, up to five years in prison on the conspiracy to commit theft charge, and five years minimum mandatory, which must be served consecutively, on the firearm charge. Garcia and Diaz also face up to five years in prison for making a false statement to law enforcement. Diaz and Simon also face up to 15 years on each theft from interstate shipment charge, and Simon also faces up to 10 years in prison on the felon in possession charge. Each defendant also faces fines of up to $250,000 on each count.
This case was investigated by the FBI and the Las Vegas Metropolitan Police Department, and prosecuted by Assistant U.S. Attorneys Christina M. Brown and Daniel R. Schiess.Las Vegas Man Charged with Enticing Minor to Have SexRead the Press Release
LAS VEGAS, Nev. – A Las Vegas, Nevada man who works as a family and marriage counselor, appeared in federal court today following his arrest on charges that he solicited a minor for sex, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Ian Alexander Pincombe, 45, is charged in a criminal complaint with coercion and enticement of a minor. Pincombe appeared this afternoon before U.S. Magistrate Judge Carl W. Hoffman and was detained pending a preliminary hearing on May 21, 2014. If convicted, Pincombe faces a minimum of 10 years to life in prison, and a $250,000 fine.According to the criminal complaint, on April 30, 2014, a Henderson Police Department Detective initiated an undercover operation regarding using technology to lure a minor. The detective located an advertisement on Craigslist.com in which an individual, later identified as Pincombe, was seeking females for sex and had included a nude photograph. The undercover detective, posing as a 13-year-old girl, began communicating with Pincombe. Over the next two days, Pincombe allegedly exchanged sexually explicit emails and text messages with the girl, one of which included a sexually explicit photograph of himself. On May 2, 2014, Pincombe was arrested by Henderson Police Department Officers at a shopping center parking lot in Henderson where he had agreed to meet the girl for a sexual encounter.
The case is being investigated by the FBI, the Henderson Police Department, and the Internet Crimes Against Children Task Force, and is being prosecuted by Special Assistant United States Attorney Allison Herr and Assistant United States Attorney Cristina D. Silva.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal
The public is reminded that a criminal complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
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, please visit www.usdoj.gov/psc. For more information about internet
safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Accountant Convicted in Mortgage Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – Following a five-day jury trial, a licensed accountant was convicted today of conspiracy and fraud charges for participating in a mortgage fraud scheme in southern Nevada and causing approximately $1.6 million in losses to federally insured financial institutions, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Carmen Denise Mosley, 43, of Granada Hills, Calif., was convicted of one count of conspiracy to commit bank fraud and wire fraud, and two counts of bank fraud. Mosley is scheduled to be sentenced on Aug. 5, 2014, and faces up to 30 years in prison and a $1 million fine on each count.
“Over the last six years, hundreds of persons who worked in the housing and mortgage industry in southern Nevada have been prosecuted and convicted of mortgage fraud crimes,” said U.S. Attorney Bogden. “This type of fraud has a long-lasting effect on the state economy and the perpetrators deserve to be convicted and punished.”
According to the court records and evidence introduced at trial, from about November 2006 to November 2007, Mosley, a certified public accountant, and co-defendant Zulfiya Karimova, 33, of, Cupertino, California, a loan officer, conspired to obtain mortgage loans from financial institutions by causing materially false information to be placed in the buyers’ mortgage loan applications and supporting documentation. Using this scheme, Mosley and Karimova obtained money and property from the financial institutions by causing money from the loans to be disbursed to them at closing for their own use and benefit. Karimova caused buyers to apply for mortgage loans and caused their applications to contain false information about their income and assets. Mosley provided fraudulent tax documents to support the fraudulent representations in the applications concerning the buyers’ income. Mosley and Karimova caused the financial institutions to loan money to fund the purchase of three homes in the Las Vegas area during 2006 and 2007. The buyers defaulted on the loans, causing approximately $1.6 million in losses to the lenders.
Karimova pleaded guilty prior to trial to conspiracy to commit bank fraud and wire fraud, and bank fraud, and is scheduled to be sentenced on May 27, 2014.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorneys Sarah E. Griswold and Kathryn C. Newman.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Carson City Man Sentenced for Child Pornography CrimesRead the Press Release
RENO, Nev. – A man who used a tiny, hidden video recorder to make over 200 sexually explicit video tape recordings of two female victims who were taking showers and using the restroom at his home in Carson City, Nev., was sentenced today to 19 years in prison, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Marcus Gabriel Henderson, 34, who pleaded guilty in January to one count attempted production of child pornography and one count of transportation of child pornography, was sentenced by U.S. District Judge Larry R. Hicks. Henderson was also placed on lifetime supervised release and must register as a convicted sex offender.“The sharing of child pornography over the internet results in repeated re-victimization and can negatively affect a victim for the rest of his or her life,” said U.S. Attorney Bogden. “The persons who produce these images and trade them with other persons deserve significant sentences of imprisonment.”
According to the court records, on July 31, 2013, a federal search warrant was executed at Henderson’s residence after he was identified as a target in an undercover child pornography investigation. During the execution of the warrant, one of the investigators located a device in a bathroom which appeared to be an AC adaptor. The adaptor was actually a covert video recording device containing a pinhole camera and media card. A forensic examination of the media card revealed that it contained approximately 277 video clips, each about one minute in length, which appeared to have been taken in the toilet and shower areas of one or more bathrooms. The camera had been positioned to capture nude images of two different female victims, one of whom was 13 years old at the time. Henderson admitted that he created the videos to elicit a sexual response from the viewer of the videos and that he intended to distribute them to internet users in exchange for something of value. After recording some of the video clips, Henderson traveled from Nevada to South Dakota and distributed or sent via email some of the videos he produced. In addition to the hidden camera, investigators recovered during the search, an additional 1200 images and 10 videos of child pornography from computers and digital devices that Henderson used. Some of the files depicted prepubescent children and sadistic and masochistic conduct.
“For most people, criminal acts against children are impossible to comprehend,” said Kyle Burns, resident agent in charge of HSI Reno. “For a child who has been tricked and sexually exploited by someone they trusted, the physical and emotional scars will be with them forever. As this sentence makes unmistakably clear, child sex predators will be caught, prosecuted, and meted the justice they deserve for their despicable actions.”
The case was investigated by HSI and the Northern Nevada Internet Crimes Against Children Task Force, and prosecuted by Assistant United States Attorney Carla B. Higginbotham.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal
safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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, please visit www.usdoj.gov/psc. For more information about internetCalifornia Men Sentenced to Prison for Transporting Minor Girls from California to Nevada to Work as ProstitutesRead the Press Release
LAS VEGAS, Nev. – Two men were sentenced to prison today for transporting minor girls from the northern California area to Las Vegas, Nev., in 2013 to work as prostitutes, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
In separate unrelated cases, Andrew West, 27, of Hayward, Calif., was sentenced by U.S. District Judge James C. Mahan to eight years in prison and 20 years of supervised release. West pleaded guilty in January to one count of transportation of a minor for prostitution. Ray Darnell Webb, 20, also of Hayward, Calif., was sentenced by U.S. District Judge Kent J. Dawson to eight years in prison and 10 years of supervised release. Webb pleaded guilty in January to one count of coercion and enticement. Both men will also have to register as sex offenders when they are released from prison.
“Transporting minors across state lines to work as prostitutes is a federal felony crime with serious penalties,” said U.S. Attorney Bogden. “We are working with our federal, state and local law enforcement and community partners to ensure that the persons who commit these types of crimes are prosecuted.”
According to the court records in West’s case, on May 3, 2013, West and a 16-year-old girl victim and others, traveled in several vehicles from San Jose, Calif., to Las Vegas. The next day, West and the 16-year-old girl, and another male, checked into a motel on the Boulder Highway. West told the girl to make money (by committing sex acts) to pay for the room. The girl walked the Boulder Highway in search of dates, and solicited separate dates with four men who she took back to the motel room. The girl earned a total of $260, part of which was provided to West after each date. The girl was arrested on May 4, 2013, when she attempted to solicit a date from an undercover Las Vegas Metropolitan Police Department Officer in the motel parking lot.
According to the court records in Webb’s case, in early 2013, Webb and a co-defendant, Seagram Miller, met one of the victims, a 12-year-old female, in Oakland, Calif. where she was working as a prostitute. Shortly thereafter, the 12-year-old began working as a prostitute for Webb and Miller, and provided the money she made working as a prostitute to them. In about April 2013, Miller met a 16-year-old female on Facebook, and she also began working as a prostitute for Miller and Webb. In April 2013, Miller, Webb, and the two minor girls, decided to travel to Las Vegas to make money. Before leaving, Webb and the 16-year-old girl posted an advertisement on MyRedbook.com so that they would have dates lined up when they arrived in Las Vegas. The advertisement contained photographs of the 16-year-old. On April 29, 2013, Webb, Miller, and the two minor girls drove from Oakland to Las Vegas and stayed in a rented hotel room on Las Vegas Boulevard. Both girls worked as prostitutes on April 30 and in early May.
Miller also pleaded guilty and is scheduled to be sentenced on May 20, 2014.
The cases were investigated the FBI and Las Vegas Metropolitan Police Department, as part of the Innocence Lost Task Force. The cases are being prosecuted by Assistant United States Attorneys Nicholas D. Dickinson and Phillip N. Smith, Jr.The case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit www.usdoj.gov/psc.Man Sentenced to 30 Years in Prison for Brutal Manslaughter of Another Man on Nevada Indian Colony in December 2011Read the Press Release
RENO, Nev. – A man who killed another man with a shotgun on the Battle Mountain Indian Colony in Lander County, Nev., in December 2011 was sentenced on April 21, 2014, to 30 years in federal prison, announced United States Attorney Daniel G. Bogden.
Daniel James Draper, 48, who was convicted by a jury in January 2014 of voluntary manslaughter and use of a firearm during a crime of violence causing death, was sentenced by U.S. District Judge Robert C. Jones. The sentence was the maximum allowed under federal law for those offenses.
“The 30-year prison sentence imposed against defendant Draper cannot bring Linford Dick back or undo any of the violent criminal acts inflicted upon him,” said United States Attorney Bogden. “Hopefully, the verdicts and sentence provides some measure of justice to the victim, his family, and the Battle Mountain Indian Colony community. We will continue our outreach and law enforcement efforts in an attempt to make our tribal communities safe.”
The case was investigated by the FBI, the Bureau of Indian Affairs, the Lander County Sheriff’s Office, and the Battle Mountain Indian Colony Police Department, and prosecuted by Assistant United States Attorneys Megan Rachow and William R. Reed
According to the court records, on Dec. 20, 2011, at approximately 1:00 a.m., Draper smashed a front window and entered a home on the Indian Colony, and shot and killed the victim, Linford Dick. Draper also used the shotgun to strike and beat the victim in the head. Two other women and a child were in the home at the time.Las Vegas Man Sentenced to 20 Years in Prison for Mortgage Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A local man who was convicted by a jury in September 2013 of conspiracy to commit mail and wire fraud for his involvement in a scheme to obtain $35 million in fraudulent mortgage loans, was sentenced today to 20 years in prison, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Jabari L. Marshall, 36, of Las Vegas, was sentenced by U.S. District Judge Gloria M. Navarro. Marshall was also ordered to pay approximately $250,000 in restitution and to forfeit up to $6.1 million in assets that were gained as a result of the crimes. Marshall has been in custody since his arrest in January 2012, and has a lengthy criminal history, including two prior federal convictions in Nevada for bank fraud/check fraud type crimes. Marshall was also on federal supervised release when he committed this crime.
“Since 2008, hundreds of persons have been prosecuted by the Nevada United States Attorney’s Office for this type of crime,” said U.S. Attorney Bogden. “By now, the message should be clear that if you get convicted of committing a mortgage fraud offense, you will spend a significant time in federal prison.”
From about 2005 to 2007, Marshall and nine co-conspirators obtained mortgage loans through the use of straw buyers and by submitting false and fraudulent loan applications to federally insured financial institutions. Once the mortgage loans were approved, the conspirators caused money from the loan transactions to be disbursed to their own use and benefit. The conspirators typically rented the homes and re-sold them for a profit, using the same scheme. Some of the homes were “flipped” or sold twice within short periods of time. The conspirators then defaulted on the loans, causing approximately $15 million in losses to the lenders. The conspirators used this fraudulent scheme to purchase 30 homes in Las Vegas between 2005 and 2007. The total value of the mortgages was approximately $35 million.Defendant Lloyd Gardley was considered to be the leader of the conspiracy. Lloyd Gardley, Candis Gardley, and Marshall recruited straw buyers, loan officers and others into the scheme. Marshall also provided false Social Security numbers and false documents for some of the loans. The other conspirators included two loan officers, two real estate agents, an escrow assistant, an accountant, and an individual who provided false verifications of rent. All nine co-conspirators were convicted and have been sentenced.
The case was investigated by the United States Postal Inspection Service and prosecuted by Assistant U.S. Attorneys Brian Pugh and Sarah E. Griswold.
This case was handled in connection with the President's Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.Men Sentenced for Conspiring to Obstruct the IRSRead the Press Release
RENO, Nev. – Two men who were convicted by a federal jury in Reno of conspiring to obstruct the IRS, were sentenced today to terms of imprisonment, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Bret Ogilvie, 50, of Reno, Nev., was sentenced to five years in prison, three years of supervised release, and ordered to pay $315,286 in restitution. Linwood Tracy, 73, of Fallon, Nev., was sentenced to nine months in prison and three years of supervised release. They were each convicted of one count of conspiracy to defraud, and Ogilvie was also convicted of one count of corrupt interference with tax administration and five counts of presenting false claims to the IRS. U.S. District Court Judge Larry R. Hicks imposed the sentences.
"When criminals cheat the IRS, they steal from all taxpayers,” said U.S. Attorney Bogden. “We hope that prosecutions like this one will deter others from impeding, obstructing and threatening the IRS in their collection work."
According to the court records, from about Feb. 22 to Nov. 18, 2008, Ogilvie and Tracy conspired to impede and obstruct the IRS in their collection of income taxes by a number of means, including threatening to sue the IRS for $10 million if the IRS did not remove a tax lien on Ogilvie’s residence, by contacting businesses and telling them not to comply with IRS levies against Ogilvie, by setting up a corporation and transferring compensation that Ogilvie earned through his plumbing company to the corporate bank account in an attempt to evade taxes, by threatening to sue employees of the IRS, and by filing a frivolous lawsuit against IRS personnel in Washoe County. Between Dec. 8 and Dec. 10, 2008, and on March 30, 2011, Ogilvie also presented false claims to the IRS for income tax refunds the tax years 2006 through 2010 totaling approximately $3.9 million. Ogilvie made the claims by preparing and causing to be prepared an IRS form indicating he held a Power of Attorney for the Bret Ogilvie Trust.
The case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Ronald C. Rachow.
This case was handled in connection with the President's Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.Man Sentenced to Almost Five Years in Prison for Las Vegas, Nev. Mortgage Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A Henderson, Nevada man has been sentenced to 57 months in prison and ordered to pay $834,000 in restitution for his role in a mortgage fraud scheme that caused over $1 million in losses to federally insured financial institutions, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Lance Kellow, 37, was sentenced on Friday, March 7, 2014, by U.S. District Judge Gloria M. Navarro. Kellow was convicted by a jury in March 2013 of one count of conspiracy to commit mail and wire fraud, three counts of wire fraud, and one count of bank fraud.
“Hundreds of persons have now been convicted and sentenced to prison for committing fraud in the lending and housing industries in southern Nevada,” said U.S. Attorney Bogden. “Since 2008, we have worked diligently with our federal, state and local law enforcement partners to prosecute federally the most egregious cases of this type of fraud.”
Lance Kellow, an experienced loan officer and licensed mortgage broker in southern Nevada, used his experience and knowledge to commit mortgage fraud for profit. On four different occasions, Lance Kellow and his brothers, Jason and Vince Kellow, lied to mortgage lenders in order to get real estate and money for their own use.
Beginning in January 2007, the brothers conspired to sell their houses to their cousin, who was not qualified to buy them, for a significant profit. The brothers placed false information about their cousin’s employment and finances in mortgage loan applications, and helped him qualify for the loans by depositing cash in his bank account and omitting and paying down his debt, all without informing the lenders. As a result of the false statements in the loan applications, the lenders made loans to the cousin that they would not have otherwise made. Using this scheme, the Kellow brothers received over $500,000 in cash from these sales. The cousin then defaulted on the mortgages, causing losses to the banks in excess of $1 million.
Lance Kellow was permitted to self-report to federal prison by June 5, 2014.
Jason Kellow pleaded guilty to conspiracy to commit bank fraud, and was sentenced in March 2013 to 33 months in prison and ordered to pay $1 million in restitution. Vinson Kellow pleaded guilty to wire fraud and was sentenced in April 2013 to seven months in prison.
The case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorneys Kathryn C. Newman and Christina Brown.
This case was handled in connection with the President's Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
Pimp Who Was Using 16-Year-Old Girl as Prostitute in Reno, Nev., Sentenced to 10 Years in PrisonRead the Press Release
RENO, Nev. – A California man who recruited and used a 16-year-old girl to work as a prostitute, was sentenced today to a mandatory minimum of 10 years in federal prison, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Carlos Rodriguez Navarrette, aka Carlos Alberto Navarrette, aka DJ Junior, 23, of Los Angeles, Calif., who pleaded guilty in November 2013 to one count of sex trafficking of a minor, was sentenced by U.S. District Judge Miranda M. Du. Following his release from prison, Navarrette will also be placed on lifetime supervised release and must register as a sex offender.
“According to the defendant’s own admissions, he knew the victim was a minor, but he recruited and enticed her to work for him anyway,” said U.S. Attorney Bogden. “The U.S. Department of Justice will use tough federal laws to prosecute you if you knowingly disregard the fact that you are using a minor to engage in commercial sex acts.”
According to the plea agreement, on June 11, 2013, Navarrette met the 16-year-old girl at a casino in Reno and recruited her to work as a prostitute. Navarrette posted a prostitution advertisement on the website “myredbook.com,” which included photos of the 16-year-old. From about June 11 to June 13, 2013, Navarrette paid for hotel rooms and food for the girl, and arranged for her to engage in approximately four to five commercial sex acts. After the 16-year-old engaged in the sex acts, she was required to provide the money she earned to Navarrette.
Investigators with the FBI’s Innocence Lost Task Force came across the website advertisement while they were attempting to locate a woman who had been reported missing in California, as the telephone number in the advertisement was the same as the missing woman’s. An undercover investigator made arrangements to meet the girl at a Reno motel for sex. When the investigator arrived at the motel, Navarrette and an adult female directed the investigator to the 16-year-old girl, who was lying on the bed partially undressed.
The investigation was conducted by the Innocence Lost Task Force, which is made up of the FBI and the Regional Street Enforcement Team, which includes the Reno Police Department, Sparks Police Department, FBI, and UNR Police Department. The case was prosecuted by Assistant United States Attorney Carla Higginbotham.
The case has been 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, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Henderson, Nev. Man Charged with Aiming Laser Pointer at Police HelicopterRead the Press Release
LAS VEGAS, Nev. - A Henderson, Nev. man has been indicted by the federal grand jury for aiming a laser pointer at a Las Vegas Metropolitan Police Department (LVMPD) helicopter on six occasions during January and February 2014, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
James David Zipf, 30, is charged with six counts of aiming a laser pointer at an aircraft on Jan. 30, Jan. 31, Feb. 3, Feb. 7, Feb. 8, and Feb. 12, 2014, and is scheduled to appear before United States Magistrate Judge Nancy J. Koppe, at 3:00 p.m. today for an initial appearance and arraignment and plea. If convicted, Zipf faces up to five years in prison and a fine of up to $250,000 on each count.
“Congress enacted a new federal statute in 2012 dealing with laser strikes, which makes it a felony to knowingly target an aircraft with a laser,” said U.S. Attorney Bogden. “We have partnered with our local, state and federal law enforcement agencies to catch individuals who are engaging in this dangerous behavior, which can disorient and temporarily blind a pilot. If you have information about a lasing incident or see someone pointing a laser at an aircraft, call your local FBI field office or dial 911.
Since the FBI and the Federal Aviation Administration (FAA) began tracking laser strikes in 2005, statistics reflect a more than 1,100 percent increase in the deliberate targeting of aircraft by people with handheld lasers. In 2013, there were a total of 3,960 laser strikes reported—an average of almost 11 incidents per day.
This case is being investigated by the FBI and LVMPD, and prosecuted by Assistant U.S. Attorney Roger Yang.The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Man Pleads Guilty to Swindling Millions from Investors in Golf Course SchemeRead the Press Release
RENO, Nev. – A man who fraudulently convinced 11 persons to loan him a total of $3.6 million for the purchase of a golf course near Gardnerville, Nev., pleaded guilty today to 24 federal felony charges, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Scott H. Summerhays, 55, formerly of the South Lake Tahoe area, but currently in custody in Reno, pleaded guilty during the first day of trial to 14 counts of wire fraud, seven counts of money laundering, two counts of identity theft, and one count of aggravated identity theft. Summerhays, who was indicted in February 2012, faces over 30 years in prison and fines of up to $5.7 million, and is scheduled to be sentenced on May 29, 2014, at 10:00 a.m. by U.S. District Judge Larry R. Hicks.
“This is the second person to be convicted or sentenced of federal investment fraud charges in the northern Nevada area this week,” said U.S. Attorney Bogden. “In both cases, the defendants led their victims to believe that they were legitimate businessmen and used fraudulent documents to support their scheme. If you are considering a financial arrangement with someone, be sure to check the veracity of any documents they provide you, as fraudulent documents are common and easy to create.”
According to the court records, during 2008 to 2010, Summerhays represented to potential investors that he was purchasing the Genoa Lakes Golf Club located west of Gardnerville, Nev. for $17 million and needed a short term loan to complete the deal because his own money was tied up in a trust. Summerhays also represented to the potential investors that he solicited funds for oil and gas investments in Texas and owned over $30 million in Berkshire, Las Vegas Sands and MGM stocks. Summerhays showed some of the investors a fraudulent investment account statement. Summerhays also claimed that he was in partnership with Las Vegas Sands owner Sheldon Aldelson, and showed potential investors a partnership agreement containing the forged signature of Adelson. In reality, Summerhays had no investment portfolio, and Adelson never heard of Summerhays or had any partnerships with him. Using this scheme, Summerhays was able to convince 11 persons to loan him money for the golf course, totaling approximately $3.6 million. None of the investors were repaid and they lost all of the money they loaned Summerhays.
The case was investigated by the FBI and IRS Criminal Investigation, and prosecuted by Assistant U.S. Attorneys Ronald C. Rachow and Megan Rachow.
This case was handled in connection with the President's Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.Financial Advisor Sentenced to 10 Years in Prison for Investment Fraud SchemeRead the Press Release
RENO, Nev. – A former bank financial advisor in Reno who defrauded six persons of over $2 million during 2010 and 2011, has been sentenced to 10 years in prison, five years of supervised release and ordered to pay restitution to the victims, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Gary H. Lane, 60, of Reno, who pleaded guilty in September 2013 to 12 counts of mail fraud and five counts of attempt to evade or defeat tax, was sentenced on Monday, Feb. 10, 2014, by U.S. District Judge Robert C. Jones.
“Beware of persons who offer better interest rates than traditional sources,” said U.S. Attorney Bogden. “They prey on the elderly and unsophisticated and will use numerous methods to steal your money. If you do not know if an investment opportunity is legitimate, it is always better to investigate the person or company first before turning over any money to them.”
Lane was employed until March 2011 as a financial advisor with Bank of America Investment Services, which later merged with Merrill Lynch. During the course of Lane’s employment, he allegedly developed a scheme to entice persons to invest monies with him through the use of an E-Trade account rather than through normal bank procedures. Lane allegedly looked for investors who were elderly or lacked investing experience and who had a desire for high returns and aversion to risk. Lane told the investors that their funds would be invested in U.S. Treasury Bonds which would pay better than six percent interest and would mature in two years. Lane corroborated the trades by creating false confirmations and distributing them to the victims by mail. After receiving the monies from the victims, Lane gave them to his spouse who mailed them to her E-Trade account. The monies were then withdrawn at Lane’s direction for his own use or to pay other investors. In actuality, Lane never purchased any U.S. Treasury Bonds with the victims’ monies. In fact, there were never any United States Treasury Bonds that existed with a rate of return of greater than six percent and a maturity period of less than two years.
Using this scheme, Lane defrauded approximately six persons of over $2 million between January 2010 and March 2011. Lane also allegedly filed false and fraudulent individual tax returns for the years 2006 through 2010, substantially understating his income and tax due and owing to the IRS.
The case was investigated by the FBI, IRS Criminal Investigation and the Nevada Secretary of State Securities Division, and prosecuted by Assistant U.S. Attorney Ronald C. Rachow.
This case was handled in connection with the President's Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.Northern Nevada Man Convicted of Distributing Synthetic DrugsRead the Press Release
RENO, Nev. – In the first federal jury trial of its kind in Nevada involving synthetic drugs commonly referred to as “spice,” a Reno, Nevada man has been convicted of multiple counts related to the distribution and possession of the dangerous substances, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Iqbal Singh-Sidhu, 33, was convicted on Thursday, Feb. 6, 2014, of 16 counts of possession with intent to distribute or distribution of controlled substances, and controlled substance analogues intended for human consumption, and one count of maintaining a drug-involved premise as to his business. Singh-Sidhu was originally charged and arrested in March 2013, and the jury trial started on Monday.
“Purchasing and using these compounds is extremely dangerous and can be equated to playing Russian roulette,” said U.S. Attorney Bogden. “The chemicals used to make the drugs are continually altered and the substance you get one day will not be the same one you get the next day. Persons, including youth, are increasingly ingesting these dangerous combinations of chemicals. We are working diligently with our local, state and federal law enforcement partners to investigate these cases, and will use federal laws to prosecute persons who recklessly distribute these substances.”
According to the court records and evidence introduced at trial, on four separate occasions in September 2012, Singh-Sidhu knowingly and unlawfully distributed controlled substances, and analogues intended for human consumption, in violation of the Controlled Substances Act and the Controlled Substance Analogue Enforcement Act. The spice he distributed over the course of these four occasions was labeled “Diablo,” “Hayze,” “White Rhino,” and “Smokin Dragon.”
On Feb. 5, 2013, federal search warrants were executed at his business, Grab n Go Food n Liquors, located at 1801 West 4th Street, in Reno, and at his residence located at 3101 Platte River Drive, in Reno. Dozens of packages of several varieties of “spice” were found at his business, and three boxes and a garbage bag containing hundreds of packages of various types of “spice” were recovered at his home. The overall street value of the “spice” recovered at these premises containing controlled substances or analogues intended for human consumption was approximately $20,000.
The synthetic drugs Singh-Sidhu sold, and later possessed with intent to distribute at his business and his home in February 2013, contained one or more of the controlled substances, JWH-018, JWH-073, JWH-081, and AM2201, and/or one or more of the analogues intended for human consumption, UR-144, XLR11, and 5-MeO-DALT. Synthetic drugs containing these substances have hallucinogenic effects on the central nervous system. The physiological effects these substances cause are stronger and more potent than those caused by marijuana.
Singh-Sidhu also unlawfully maintained the business of Grab n Go Food n Liquors for the purpose of distributing “spice” with these controlled substances, and analogues intended for human consumption.
Singh-Sidhu faces up to 20 years in prison and a $1 million fine on each count, except for the maintaining a drug-involved premises count, which carries a maximum fine of $500,000. Singh-Sidhu is scheduled to be sentenced in Reno on June 9, 2014, at 2:00 p.m. by U.S. District Judge Robert C. Jones.
According to the Office of National Drug Control Policy, synthetic drugs are a rapidly emerging threat and there is an increasingly expanding array of synthetic drugs available. Use of synthetic drugs is alarmingly high, especially among young people. The contents and effects of synthetic drugs are unpredictable due to a constantly changing variety of chemicals used in manufacturing processes devoid of quality controls and government regulatory oversight. Health warnings have been issued by numerous public health authorities and poison control centers describing the adverse health effects associated with the use of synthetic drugs. The Administration has been working with federal, congressional, state, local, and non-governmental partners to put policies and legislation in place to combat this threat, and to educate people about the tremendous health risk posed by these substances. For more information on the risks and dangers of synthetic drugs, go to http://www.whitehouse.gov/ondcp/ondcp-fact-sheets/synthetic-drugs-k2-spice-bath-salts.
The case was prosecuted by Assistant U.S. Attorneys James E. Keller and Carla Higginbotham and investigated by the Drug Enforcement Administration (DEA), including its Office of Diversion Control, Drug and Chemical Evaluation Section, in Arlington, Virginia.
Man Pleads Guilty to Attempting to Destroy Beauty Supply Store by ArsonRead the Press Release
LAS VEGAS, Nev. – A man pleaded guilty today to maliciously attempting to destroy a local beauty supply store by fire and explosive devices, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Reynaldo Staana, 48, of Las Vegas, pleaded guilty before U.S. District Judge James C. Mahan to one count of arson of property used in or affecting interstate commerce. Sentencing is scheduled for May 6, 2014, at 10:00 a.m. Staana, who is in federal custody on the charges, faces a mandatory minimum of five years in prison and a maximum of 20 years in prison, as well as a fine of up to $250,000.
According to the court records filed in the case, Staana had been an assistant manager at Beauty Supply Warehouse located at 3310 South Nellis Boulevard in Las Vegas but was terminated from his position in August 2013. On about Sept. 8, 2013, Staana entered the business after hours without permission in order to commit theft of property, and while inside the business, intentionally and maliciously used fire to ignite a flammable liquid with intent to destroy the business. The fire caused more than $1 million in damage to structure and contents.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Clark County Fire Department, and the Las Vegas Metropolitan Police Department, and was prosecuted by Assistant U.S. Attorney Christina M. Brown.