District of Nevada
Press releases recorded for this federal judicial district.
Fourth Prison Sentence Handed Down in Gun Store Burglary CaseRead the Press Release
LAS VEGAS, Nevada – The last of four men convicted of burglarizing and stealing 21 firearms from a Henderson, Nev. gun store in August 2011, was sentenced today to 2½ years in prison and three years of supervised release, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
The case was investigated by ATF, with the assistance of the Las Vegas Metropolitan Police Department Gang Crimes Bureau, the Henderson Police Department, and the North Las Vegas Police Department. The case was screened through the Southern Nevada Project Safe Neighborhoods Task Force, a team of federal and local law enforcement officers and prosecutors who meet on a regular basis to discuss arrests involving guns and explosives. Project Safe Neighborhoods, also known as PSN, is a Department of Justice initiative and a nationwide commitment to reduce gun and gang crime in America. The prosecution was handled by Assistant United States Attorney Phillip N. Smith, Jr.
Demario F. Edwards, 24, of North Las Vegas, who pleaded guilty in October 2013 to possession of a stolen firearm and theft from a federal firearms licensee, was sentenced by U.S. District Judge Kent J. Dawson. Three co-defendants charged in the case, Victor Williams, 21, Daryl Galtney, 25, and Frank Freeman, 27, also pleaded guilty and were sentenced last year to 37 months, 63 months, and 100 months in prison, respectively.
“Many of these stolen firearms end up in the hands of criminals, who later commit crimes of violence,” said U.S. Attorney Bogden. “It is important to send a message to persons who steal firearms in burglaries and robberies that there are strong federal laws prohibiting this type of conduct and we will use them to keep the community safe.”
According to the court records, on Aug. 13, 2011, at approximately 3:30 a.m., one of the defendants drove a stolen Crown Victoria through the front entrance of a gun store in Henderson. Video surveillance shows a vehicle crashing through the window of the store and the defendants then entering the store. Once inside, the defendants broke a glass display case and began stealing multiple firearms. The defendants exited the store with 21 stolen handguns, and drove away in a separate vehicle, leaving the Crown Victoria inside the store. Beginning in September 2011, investigators started recovering firearms that were stolen in the burglary, some of which were recovered in the Las Vegas area during searches of various residences and following a robbery and a homicide. One of the guns, a .45 caliber handgun, was found in Edwards’ apartment in September 2011 when Nevada Probation and Parole Officers were conducting a compliance check. As a result, Edwards pleaded guilty in a separate federal case to felon in possession of a firearm and was sentenced to two years in prison which will run concurrent to today’s sentence.Man Pleads Guilty to Transporting 16-Year-Old Girl from California to Nevada to Work as ProstituteRead the Press Release
LAS VEGAS, Nev. – A northern California man pleaded guilty today to transporting a minor female from San Jose, Calif., to Las Vegas, Nev., to work as a prostitute during May 2013, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Andrew West, 27, of Hayward, Calif., who was indicted on May 29, 2013, pleaded guilty to one count of transportation of a minor for prostitution, and is scheduled to be sentenced on April 30, 2014, by U.S. District Judge James C. Mahan. West faces a mandatory minimum of 10 years in prison and a $250,000 fine, and will have to register as a sex offender.
“We must use maximum resources to prevent our children and youth from becoming victims to sex trafficking,” said United States Attorney Bogden. “The kids who fall victim to pimps are typically physically and emotional abused and scarred for life, and we will work with our local, state and federal law enforcement partners to ensure that these child exploiters who bring kids across state lines for prostitution purposes are prosecuted.”
According to the plea agreement, in early 2013, a 16-year-old female began working as a prostitute for West in Stockton and San Jose, Calif. On May 3, 2013, West, the 16-year-old girl, and others traveled in several vehicles from San Jose to Las Vegas. The 16-year-old traveled in West’s Lexus automobile, but West told the girl that he could not ride in the vehicle with her until after they arrived in Nevada, because if he were arrested he would get into more trouble for crossing state lines with her because of her age. They arrived in Las Vegas the next day, and West, 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.
The case was investigated the FBI and Las Vegas Metropolitan Police Department, as part of the Innocence Lost Task Force. The case is 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.Las Vegas Woman Sentenced to 57 Months in Prison for Unemployment, Housing and Social Security Fraud SchemesRead the Press Release
LAS VEGAS, Nev. – A woman who pleaded guilty to stealing over $400,000 from the unemployment system, public housing authority, and Social Security Administration, was sentenced today to 57 months in prison, three years of supervised release, and ordered to pay $477,466 in restitution, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Teresa Ann Towns, 50, who pleaded guilty in October 2013 to three counts of theft of government money, was sentenced by Senior U.S. District Judge Lloyd D. George. Towns was indicted and arrested in June 2013, and has been in custody since that time.
“Stealing from government benefits programs is a serious crime with serious consequences,” said U.S. Attorney Bogden. “Besides protecting our citizens from terrorist threats, white collar fraud is a top priority of the U.S. Department of Justice, and considerable resources are being utilized to investigate and prosecute this type of crime.”
Between 2005 and 2013, Towns, who also uses the aliases C. or T. Moorehead, C. or S. Grayson, and V. Johnson, established multiple business entities in Nevada and submitted false wage reports for fictitious employees to the Nevada Department of Employment, Training and Rehabilitation, which is the state agency responsible for distributing unemployment benefits that are partially funded by the federal government. Unemployment benefits were then disbursed on debit cards in the names of the fictitious employees and sent to addresses accessible to Towns. Towns used the debit cards to obtain cash from ATM machines and to convert the funds to her own use and the use of others. The loss to the federal and state unemployment system was approximately $322,682.In March 2001, Towns fraudulently obtained a public housing unit from the Southern Nevada Housing Authority using a false identity and other fraudulent information. The Housing Authority is funded through the U.S. Department of Housing and Urban Development. From 2005 to 2013, Towns failed to report her income on annual re-certifications which would have made her ineligible for the housing benefits. In May 2007, Towns also fraudulently obtained Section 8 Housing from the Southern Nevada Housing Authority using false income and household composition information. Towns failed to report in the original application and in annual re-certifications that she already had a public housing unit and was receiving unemployment income, and that she had an unauthorized adult and minor residing in the housing for several years. The loss to the Southern Nevada Housing Authority because of the fraud was approximately $114,000.
In October 2009, Towns applied for and fraudulently received child insurance benefits from the Social Security Administration. Towns falsely represented that the child lived with her in Las Vegas, and that she would use the benefits for the child or would place them into savings for the child. Between 2009 and 2012, Towns fraudulently obtained approximately $40,656 in child insurance benefits from the Social Security Administration.
In 1991, Towns was convicted in California of grand theft for using multiple aliases to obtain welfare benefits and was sentenced to two years in prison.
The case was investigated by the U.S. Department of Labor Office of Inspector General, U.S. Department of Housing and Urban Development Office of Inspector General, and the Social Security Administration Office of Inspector General, and prosecuted by Assistant U.S. Attorney J. Gregory Damm.
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. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Attorney Pleads Guilty to Laundering Client Fraud MoniesRead the Press Release
LAS VEGAS, Nev. – A Las Vegas attorney pleaded guilty today to assisting a client launder approximately $2.25 million that had been obtained fraudulently in an online investment scheme, in which over 1,400 persons lost $16 million, announced the United States Attorney’s Office for the District of Nevada.
R. Christopher Reade, 43, of North Las Vegas, pleaded guilty to one count of accessory after the fact to laundering of monetary instruments. Reade faces up to 10 years in prison and a $1,125,000 fine, and is scheduled to be sentenced on May 2, 2014.
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. 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 more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Men Plead Guilty to Transporting Teenage Girls from California to Nevada to Work as ProstitutesRead the Press Release
LAS VEGAS, Nev. – Two California men pleaded guilty today to felony sex trafficking crimes 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.
Ray Darnell Webb, 19, and Seagram Joshua Miller, 21, both of Hayward, Calif., who were arrested and indicted in May 2013, pleaded guilty to one count of coercion and enticement, and are scheduled to be sentenced on April 29, 2014, by U.S. District Judge Kent J. Dawson. The men face up to 20 years in prison and a $250,000 fine, and will have to register as sex offenders.
“We must work together as a community to prevent children from getting involved with sex trafficking,” said United States Attorney Bogden. “The pimps who scour the streets, schools, and online communities preying on boys and girls are predators and we will work with our local, state and federal law enforcement partners to ensure that they are prosecuted.”
According to their 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.Former Loan Officer Sentenced to 6 1/2 Years in Prison for Investment Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A former loan officer from Henderson, Nev., who convinced at least 16 victims to give him money for a high yield investment scheme involving the foreign currency exchange market, was sentenced today to 6½ years in prison, five years of supervised release, and ordered to pay over $830,000 in restitution for his guilty pleas to federal fraud and money laundering charges, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Kamalu Gonzales, 47, was sentenced by U.S. District Judge Gloria M. Navarro, and was permitted to self-report to federal prison by April 17, 2014. Gonzales pleaded guilty in August 2013 to two counts of mail fraud, six counts of wire fraud, and two counts of money laundering.
“Prosecuting persons who commit financial fraud crimes is a top priority of the U.S. Attorney’s Office in Nevada,” said U.S. Attorney Bogden. “Many of these persons target elderly and other vulnerable victims. If someone promises you an investment opportunity with unusually high rates of return, it is likely that the opportunity is fraudulent and that you will lose your money.”
During 2007, Gonzales worked as a loan officer for Meridias Capital in Henderson. Gonzales helped persons refinance their homes, and placed false information in the loan applications so the individuals could obtain refinancing and cash to which they would not have otherwise been entitled. Gonzales also told individuals that he was a successful investor and trader in the foreign currency exchange market. Gonzales recruited individuals to invest with him in the market, telling them that they could earn high rates of return on their investments in a short period of time. Some of the victims wired money to Gonzales, and others borrowed money from their retirement funds or lines of credit. Gonzales also convinced some of the persons who refinanced their houses to give him some of the cash they received from refinancing for his investment fraud scheme. None of the victims agreed to pay Gonzales any commissions or fees, or agreed that he could use their investments for personal or business expenses or to pay other investors.In order to continue the scheme and to keep victims from discovering the crime, Gonzales lied to the victims repeatedly and told them their investments were doing well. As a result of the lies, some victims gave Gonzales more money to invest. Gonzales also made payments to some of the victims using monies he received from other victims.
Gonzales received approximately $1 million total from at least 16 victims in 2007 and 2008. Gonzales did not invest the victims’ funds as promised and diverted approximately $410,000 for his own personal purposes.
The case was investigated by the FBI, IRS Criminal Investigation, and the Henderson Police Department, and prosecuted by Assistant U.S. Attorneys Kathryn C. Newman and Kimberly M. Frayn.
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. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Two Men Charged in Las Vegas with Biofuels Fraud SchemeRead the Press Release
WASHINGTON – Two men have been indicted by a federal grand jury in Las Vegas for offenses involving the federal renewable fuel program that allegedly netted them more than $37 million, announced the Justice Department’s Environment and Natural Resources Division, Criminal Division, and the U.S. Attorney’s Office for the District of Nevada. The 57-count indictment against James Jariv, 63, of Las Vegas, and Nathan Stoliar, 64, of Australia, includes allegations of conspiracy, wire fraud, false statements under the Clean Air Act, obstruction of justice and conspiracy to engage in money laundering.
The indictment was unsealed late Wednesday following Jariv’s initial appearance in federal court in Las Vegas, which followed his arrest on Tuesday. Stoliar resides in Australia.
The Energy Independence and Security Act of 2007 created a number of federally-funded programs that provided monetary incentives for the production of biodiesel and to encourage biodiesel use in the United States. Biodiesel producers and importers could generate and attach credits known as “renewable identification numbers” or RINs to biodiesel they produced or imported. Because certain companies need RINs to comply with regulatory obligations, RINs have significant market value. In addition, in order to create an incentive for biodiesel in the United States to be used in the United States, anyone who exports biodiesel is required to obtain these valuable RINs and provide them to EPA. The market price charged for exported biodiesel therefore includes the value an exporter is required to later spend to acquire these RINs.
The indictment alleges that beginning around June of 2009, the two defendants, James Jariv and Nathan Stoliar, operated and controlled a company -- City Farm Biofuel in Vancouver, British Columbia, Canada -- that held itself out as a producer of biodiesel from “feedstocks” such as animal fat and vegetable oils. Jariv also operated and controlled a company based in Las Vegas, Nevada, called Global E Marketing. The government alleges that these defendants claimed to produce biodiesel at the City Farm facility, claimed to import and sell biodiesel to Global E Marketing, and then generated and sold RINs based upon this claimed production, sale and importation. In reality, little to no biodiesel produced at City Farm was ever imported and sold to Global E Marketing as claimed. The indictment alleges that the defendants’ scheme allowed them to generate approximately $7 million in RINs that were fraudulent, which were then sold to companies that needed to obtain them.
The indictment also alleges that, beginning around the same time period and continuing through Dec. 31, 2013, the defendants, using their company MJ Biodfuels, bought over 23 million gallons of RIN-less biodiesel that had been blended with small amounts of petroleum diesel, known as B99, from companies in the United States. The defendants sold some of this biodiesel to purchasers in the United States, claiming it was pure biodiesel, known as B100, produced at the City Farm facility and imported into the United States. By claiming this biodiesel was B100 and not RIN-less B99, the defendants were able to claim the fuel was eligible to be used to generate credits and incentives, and were able to sell the fuel for significantly more than they otherwise would have been able. The defendants also exported the RIN-less B99 they bought in the United States to Canada. The defendants then sold the biodiesel in Canada, and conspired not to acquire and provide RINs for these exports to the United States as they were required to do, but instead to keep the money they received from the sales for themselves. The indictment alleges that, in doing so, the defendants failed to give to the United States RINs worth in excess of $30 million, keeping this money for themselves instead.
The indictment alleges that the defendants created false records and made false statements to conceal their fraudulent claims of biodiesel production, importation, sale and fraudulent RIN generation. Finally, the indictment alleges that the defendants engaged in a conspiracy to launder the proceeds of their crimes, utilizing foreign banking institutions and complex financial transactions to conceal the illegal nature of the funds they received, and to attempt to protect these funds from government enforcement. Today the United States also seized and restrained the assets contained in a number bank accounts utilized by the defendants, as well as several pieces of real and personal property in Las Vegas, Nevada.
An indictment is only a charge and is not evidence of guilt. All defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
The collaborative investigation that led to today’s arrest and seizures was the result of work by the EPA’s Criminal Investigation Division and the FBI, with assistance from the United States Secret Service and the Department of Homeland Security.
The case is being prosecuted by Senior Trial Attorney Wayne D. Hettenbach of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division, Assistant U.S. Attorneys Crane M. Pomerantz and Daniel D. Hollingsworth of the U.S. Attorney’s Office in Nevada, and Trial Attorney 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.Nevada U. S. Attorney’s Office Collects $18 Million in 2013Read the Press Release
LAS VEGAS, Nev. – U.S. Attorney Daniel G. Bogden announced today that the Nevada U.S. Attorney’s Office collected $18 million in Fiscal Year (FY) 2013 related to criminal, civil and asset forfeiture actions. Of this amount, $10.5 million was collected in criminal actions, $1.6 million was collected in civil actions, and $5.9 million was collected in criminal and civil forfeitures.
Additionally, the District of Nevada worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1.9 million in cases pursued jointly with these offices. This additional shared amount was collected in civil actions.“The collection of monetary penalties in federal litigation is a critical aspect of our work that frequently gets overlooked,” said U.S. Attorney Bogden. “These collections are used to help crime victims and for a variety of other law enforcement purposes. Our FY 2013 collections exceeded our total appropriated budget for our office by almost three times.”
Attorney General Eric Holder announced today that nationally the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.“The Department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the taxpayer,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
An example of a recent case in which the U.S. Attorney’s Office for the District of Nevada collected a significant amount of money is United States v. Richard Young. Young, of Lewistown, Montana, was convicted following a jury trial in March 2011 of various fraud offenses including conspiracy to commit wire fraud, wire fraud, money laundering, and securities fraud. Young deceived more than 1,400 persons into investing more than $16 million in a fraudulent securities trading business which was nothing more than an elaborate Ponzi scheme. Young was sentenced in December 2011 to 25 years in prison and ordered to pay $13.3 million to the victims. Young’s sentence also included a forfeiture order by which multiple items of real and personal property were forfeited to the United States, including tractor-trailers, several homes and business properties in Lewistown, bank accounts holding over $500,000, and multiple cars, tools, furnishings, and business equipment. The forfeited properties were liquidated and yielded approximately $1.12 million. Pending approval from the Department of Justice Asset Forfeiture and Money Laundering Section, those monies will be used to pay the victims of Mr. Young’s crimes in partial satisfaction of the restitution order.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs. Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.Mastermind of $15 Million Mortgage Fraud Scheme Sentenced to Just over 11 Years in PrisonRead the Press Release
LAS VEGAS, Nev. – The mastermind of a Las Vegas mortgage fraud scheme that caused approximately $15 million in losses to the lenders and financial institutions, has been sentenced to just over 11 years in federal prison for his guilty pleas to conspiracy and fraud charges, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Lloyd Gardley, 60, currently in federal custody in Pahrump, Nev., was sentenced on Wednesday, Dec. 18, 2013, by U.S. District Judge Gloria M. Navarro. Gardley pleaded guilty in August 2012 to one count of conspiracy to commit bank fraud, mail fraud and wire fraud, one count of bank fraud, and two counts of mail fraud. He will also have to serve five years of supervised release following his release from prison and pay over $1.4 million in restitution.
“Gardley is one of two individuals who were sentenced to prison this week for committing mortgage fraud in Nevada,” said U.S. Attorney Bogden. “Unfortunately, these crimes are not victimless and the damage to the community is lasting. The mortgage fraud scheme artificially inflated home values that, in turn, raised purchase prices of comparable homes, forcing innocent homebuyers to pay well above true market value for their homes. Since 2008 when the FBI and our office made mortgage fraud prosecutions a priority, we have investigated, charged and convicted hundreds of persons for federal mortgage fraud crimes and most of them are now serving time in federal prison.”
Ten persons were charged and convicted in the scheme which occurred between 2005 and 2007 and involved the use of straw buyers and the submission of fraudulent paperwork in order to obtain mortgage loans. Lloyd Gardley was considered to be the leader of the conspiracy and recruited others into the scheme, including loan officers, real estate agents, an escrow agent, and an accountant. Once the mortgage loans were approved, the defendants caused money from the loan transactions to be disbursed to their own use and benefit. The defendants typically rented the homes and re-sold them for a profit, using the same scheme. They then defaulted on the loans, causing approximately $15 million in losses to the lenders. The evidence showed that the defendants used the fraudulent scheme to purchase 30 homes in Las Vegas between 2005 and 2007. The total value of the mortgages was approximately $35 million. Some of the homes were “flipped” or sold twice within short periods of time.
The case was investigated by the U.S. Postal Inspection Service and prosecuted by Assistant U.S. Attorneys Sarah E. Griswold and Brian D. Pugh.
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. Attorney’s Offices and state and local partners, it is 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.Former Loan Officer Sentenced to 11 Years in Prison for Mortgage Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A Billings, Mont. man who worked as a loan officer in Las Vegas during 2006 and 2007 was sentenced today to 11 years in prison, five years of supervised release and ordered to pay over $2.2 million in restitution for his fraud and identity theft convictions related to a mortgage fraud scheme, announced Daniel G. Bogden, United States Attorney for the District of Nevada and Mythili Raman, Acting Assistant Attorney General for the Justice Department’s Criminal Division.
Nicholas Lindsey, 40, was sentenced by Senior U.S. District Judge Lloyd D. George. Lindsay was convicted by a federal jury in April of nine counts of wire fraud and one count of aggravated identity theft.
“Many innocent homeowners in Nevada have suffered because of this type of crime involving fraudulent residential mortgage transactions,” said U.S. Attorney Bogden. “Unfortunately, these crimes are not victimless and the damage to the community is lasting. Since 2008, when the FBI and our office made mortgage fraud prosecutions a priority, we have investigated, charged and convicted hundreds of persons for federal mortgage fraud crimes and most of them are now serving time in federal prison.”
According to the indictment and evidence presented to the jury during the trial, from about May to September 2006, Lindsey, who worked as a loan officer for Clear Mortgage and Signature Mortgage, recruited straw buyers to participate in what he described as a lucrative real estate investment opportunity by purchasing five homes in the Las Vegas area. Evidence at trial demonstrated that Lindsey secured over $3 million in mortgage loans by knowingly causing to be placed in the straw buyers’ mortgage loan applications false information concerning the buyers’ income, assets and intent to occupy the homes. Once the mortgages were approved, Lindsey fraudulently diverted to his bank account a portion of the proceeds disbursed from escrow and used these funds for his own benefit. Lindsey realized additional profits by living in or renting out properties in the buyers’ names.
In addition to the five homes of which the buyers were aware, Lindsey stole two buyers’ identities and used their personal information to purchase three additional properties in their names. The evidence established that Lindsey leased two of these properties and collected rental income and used the third as his own personal residence. After collecting profits, Lindsey stopped making the mortgage payments on the properties and allowed all eight homes to default in the borrowers’ names, causing an estimated loss to lenders of $1.6 million. At sentencing, the court also found that Lindsey used his position as a loan officer to commit fraud in relation to five additional properties, causing additional losses of $703,005 for a total loss of approximately $2.3 million.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Christina Brown and Trial Attorney Brian Young of the Criminal Division’s Fraud Section.
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. Attorney’s Offices and state and local partners, it is 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.Reno Man Charged with Conspiring to Provide Material Support to Terrorism Groups in India and PakistanRead the Press Release
RENO, Nev. – A Reno man has been charged with providing material support to terrorism groups in India and Pakistan in order to intimidate the Indian government and to harm persons that were not supporting their cause, announced Daniel G. Bogden, United States Attorney for the District of Nevada, John Carlin, Acting Assistant Attorney General for National Security, and Laura A. Bucheit, Special Agent in Charge of the FBI for Nevada.
“A thorough investigation and cooperation among agencies led to these charges,” said U.S. Attorney Bogden. “We believe that this arrest has disrupted plans for a potential terrorist attack and has exposed the persons who were involved in the planning of these crimes.”
Balwinder Singh, aka Jhajj, aka, Happy, aka Possi, aka Baljit Singh, 39, of Reno, is charged in an indictment with one count of conspiracy to murder, kidnap, and maim persons in a foreign country, one count of conspiracy to provide material support to terrorists, one count of making a false statement on an immigration document, two counts of use of an immigration document procured by fraud, and one count of unlawful production of an identification document. Singh was arrested on Tuesday, Dec. 17, 2013, in Reno, and is scheduled to appear before a United States Magistrate Judge in the near future for an initial appearance and arraignment and plea.
“After an extensive investigation, the FBI-led Joint Terrorism Task Force (JTTF) of Northern Nevada has disrupted a potential terrorist attack directed against an ally of the United States,” said FBI Special Agent in Charge Bucheit. “We will continue to act thoroughly and decisively, with our international partners, to prevent acts of terrorism on U.S. soil or, as in this case, on that of an ally. This investigation demonstrates the importance and success of law enforcement coordination and collaboration here and around the world.”
According to the indictment, Singh was a citizen of India who fled to the United States and claimed asylum. Singh lived in the United States where he eventually obtained a permanent resident card from the United States. The indictment alleges that Singh is a member of two terrorist organizations, Babbar Khalsa International (BKI) and Khalistan Zindabad Force (KZF), whose members aim to establish an independent Sikh state in part of the Punjab region of India known as Khalistan. These groups engage in bombings, kidnappings and murders in India to intimidate and compel the Indian government to create the state of Khalistan. These groups also target for assassination persons they consider traitors to the Sikh religion and government officials who they consider responsible for atrocities against the Sikhs.
The indictment alleges that the object of the conspiracy was to advance the goals of BKI and KZF by raising money and obtaining weapons to support acts of terrorism in India. It is alleged that the conspiracy began on a date unknown but no later than Nov. 30, 1997. It is alleged that Singh used a false identity and obtained false identification documents in the United States so that he could travel back to India without being apprehended by the Indian authorities. It is alleged that Singh communicated with other coconspirators by telephone while he was in the United States to discuss acts of terrorism to be carried out in India. It is alleged that Singh sent money from Reno, Nev., to co-conspirators in India for the purchase of weapons that would be provided to members of the BKI and KZF to support acts of terrorism in India. It is alleged that Singh traveled from the United States to Pakistan, India, and other countries to meet with coconspirators to assist in the planning of terrorism in India, and that Singh provided advice to coconspirators about how to carry out acts of terrorism.
If convicted, Singh faces up to life in prison and fines of up to $250,000 on each count.
The case is being investigated by the FBI-led Joint Terrorism Task Force in northern Nevada, and prosecuted by Assistant U.S. Attorneys Sue Fahami and Brian L. Sullivan, and Trial Attorney Mara M. Kohn of the U.S. Department of Justice Counterterrorism Section.
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.Las Vegas Physician Charged with Unlawfully Prescribing Large Quantities of OxycodoneRead the Press Release
LAS VEGAS, Nev. – A Las Vegas physician has been indicted by a federal grand jury on charges that he unlawfully prescribed large quantities of Oxycodone and other highly addictive prescription drugs, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Victor Bruce M.D., 48, of Las Vegas, is charged in a criminal indictment dated Dec. 11, 2013, with one count of conspiracy to distribute a controlled substance. Bruce was arrested in Las Vegas this morning and is scheduled to appear before United States Magistrate Judge Nancy J. Koppe, at 3:00 p.m. for an initial appearance and arraignment and plea.
“Our office will continue working aggressively with our federal, state and local law enforcement partners to attack the growing problem of prescription drug abuse,” said U.S. Attorney Bogden. “Our federal and local law enforcement partners will continue to prioritize these unlawful prescription drug distribution cases and continue working to shut down dangerous unlawful “pill mill” operations.”
According to the indictment, Bruce is a physician licensed to practice medicine in Nevada. Bruce maintains a medical practice known as Swan Lake Medical Center at 3330 South Hualapai Way on the west side of Las Vegas, and represents himself to be a specialist in pain management. It is alleged that beginning at a date unknown and continuing to around November 2013, Bruce prescribed large quantities of oxycodone and other highly prescription drugs without medical necessity and knowing that they were going to be illegally diverted. Bruce allegedly conspired with local drug dealers to distribute the drugs in and around Las Vegas to customers who abused them.
If convicted, Dr. Bruce faces up to 20 years in prison and a fine of up to $1 million.
This case is being 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 Silva.
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.
In order to address the growing problem of prescription drug abuse in Nevada, the Nevada HIDTA, along with the United States Attorney’s Office and other law enforcement partners, are holding a training summit on prescription drug abuse at the South Point Hotel in Las Vegas on Dec. 16 and Dec. 17, 2013. The summit will be a collaboration of professionals from local, state and federal agencies, academia, clinicians, treatment providers, counselors, educators, state and national leaders, and advocates impacted by prescription drug abuse.Reno Attorney Sentenced for Felony Immigration CrimeRead the Press Release
RENO, Nev. – A Reno attorney was sentenced today to three years of probation and ordered to pay a $3,000 fine for his guilty plea to a felony immigration crime, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Robert J. Fry, 63, of Reno, was sentenced by U.S. District Judge Larry R. Hicks. Fry pleaded guilty in April to one count of harboring an alien.
“A lawyer has an obligation to maintain the highest standards of ethical conduct,” said U.S. Attorney Bogden. “When the lawyer fails to do so, respect and confidence in the law can be destroyed. It is therefore important that we use our federal resources to investigate and prosecute persons who compromise the profession and our laws.”
Fry and co-defendant Nelia Bayani, aka Nelia Ramirez, were originally indicted on May 30, 2012, and charged with conspiracy to commit marriage fraud, harboring an alien, marriage fraud and wire fraud. According to the indictment, Bayani, a citizen of the Phillipines, was involved in a romantic relationship with Fry. Bayani, with the assistance of Fry entered into a fraudulent marriage with an American citizen so that Bayani, who had overstayed her visitor’s visa, could lawfully remain in the United States.
Bayani pleaded guilty in April 2013 to the misdemeanor offense of avoidance of examination or inspection of an alien, and was sentenced on Sept. 10, 2013, to five years of probation and 200 hours of community work service.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Office of the Inspector General for the U.S. Department of Veteran’s Affairs Office, and prosecuted by Assistant United States Attorney Megan Rachow.Three Northern Nevada Men Sentenced to Prison for Child Pornography CrimesRead the Press Release
RENO, Nev. – Three men from the northern Nevada area have been sentenced to lengthy prison sentences for their guilty pleas to child pornography crimes, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Matthew Kevin Cowee, 41, of Sparks, and Jarrod Allen Pounds, 28, of Gardnerville, were sentenced on Monday, Dec. 10, 2013, to 97 months and 110 months in prison, respectively, and Byron Trent Davis, 48, of Reno, was sentenced today to 63 months in prison.
“As these cases demonstrate, federal and local law enforcement will work together to put child predators behind bars,” said United States Attorney Daniel G. Bogden. “These lengthy prison sentences should serve as a warning to other child predators. We are looking for you, and we will find you, arrest you and ensure that you are prosecuted to the fullest extent of the law.”
Cowee pleaded guilty in August to receipt of child pornography. Cowee possessed over 15,000 images and 200 videos containing child pornography on his computer and computer hard drives. Pounds pleaded guilty in September to possession of child pornography. Pounds possessed approximately 7,500 images and 40 videos of child pornography on his laptop computer and external computer hard drives. Davis pleaded guilty in August to possession by accessing with the intent to view child pornography. Davis accessed and viewed approximately 100 videos and 100 images of child pornography on his desktop computer. The images possessed and or viewed by the defendants included depictions of prepubescent children engaged in sexually explicit conduct, including sadistic and masochistic conduct.
Following release from prison, Cowee and Pounds will be placed on lifetime supervised release. Davis will be placed on supervised release for 15 years. All three will be required to register as convicted sex offenders.
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.
The cases were investigated by the Northern Nevada Internet Crimes Against Children Task Force, which includes the FBI, Homeland Security Investigations, the Nevada Attorney General’s Office, and the Washoe County Sheriff’s Office. The cases were prosecuted by Assistant United States Attorney Carla Higginbotham.
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 CriminalMan Who Bought and Sold Stolen Personal Information Online Convicted of Participating in Racketeering OrganizationRead the Press Release
LAS VEGAS, Nev. – The first defendant to go to trial in “Operation Open Market,” an investigation of a sophisticated cybercrime organization that operated a world-wide online market place for stolen personal and financial information, was convicted today by a federal jury in Las Vegas, announced Daniel G. Bogden, United States Attorney for the District of Nevada and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
David Ray Camez, 22, of Phoenix, Ariz., was convicted of one count of participating in a racketeer influenced corrupt organization and one count of conspiracy to participate in a racketeer influenced corrupt organization. Camez is scheduled to be sentenced on April 10, 2014, and faces up to 20 years in prison on each count and fines of up to $250,000. The trial began on Nov. 18, 2013.
“It is difficult to fathom the enormity and complexity of the Carder.su racketeering organization and its far-reaching tentacles across international borders,” said U.S. Attorney Bogden. “The Internet has provided sophisticated international criminals access to the United States and its citizens, and the ability and means to harm us. It has given new definition to reaching out and touching someone. This verdict and our charges against other members of this criminal organization demonstrate that we are likewise reaching out and touching them with our federal criminal justice system.”
“The actions of these computer hackers and identity thieves have harmed countless innocent Americans and seriously compromised our financial system and global commerce,” said Michael Harris, Assistant Special Agent in Charge of Homeland Security Investigations in Las Vegas. “These criminals may think they can escape detection by hiding behind their computer screens here and overseas, but as this verdict demonstrates, cyberspace is not a refuge from American justice.”
Camez was one of 39 charged in an indictment returned in January 2012. Five others have pleaded guilty, seven are scheduled for trial in February 2014, and the rest are fugitives. There were also 16 other defendants charged in the scheme in three separate indictments. Most of those defendants are also scheduled to go to trial in February.
The target of the investigation was an organization which called itself “Carder.su.” Investigation of the Carder.su organization began in March 2007, after the United States Secret Service, operating in conjunction with Homeland Security Investigations and other federal, state and local law enforcement agencies who participate in the Southwestern Identity Theft and Fraud Task Force (SWIFT), began investigating a pattern of credit and debit card fraud. A special agent initiated an undercover investigation called Open Market and assumed the identity as a member of the organization when it was in its infancy.
The investigation determined that members of the Carder.su organization, known as “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.
It was determined that 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. Camez became a member of the organization under the name “Bad Man” on June 22, 2008. Camez also used the name “doctorsex.” During 2009 and 2010, the undercover special agent had multiple contacts with Camez in which Camez purchased counterfeit Nevada and Arizona driver’s licenses. Investigators also intercepted and seized a package shipped to Camez from Pakistan which contained counterfeit credit and gift cards. During a search of Camez’ home in Phoenix in May 2010, agents recovered counterfeit credit cards, equipment used to manufacture counterfeit credit cards, counterfeit U.S. currency, and counterfeit identification documents. A search of Camez’ computer revealed software used to encode counterfeit credit cards and stolen identity information.
In addition to the U.S. Secret Service, Homeland Security Investigations and members of the SWIFT Task Force in Las Vegas, NASA’s Jet Propulsion Laboratory, Computer Crimes Division, also provided assistance in the investigation. The case was 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.
This law enforcement action is sponsored 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.
Men Convicted of Conspiring to Obstruct the IRSRead the Press Release
RENO, Nev. – Two men have been convicted by a federal jury in Reno of conspiring to defraud the United States by obstructing the IRS in its assessment and collection of income taxes, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Bret Ogilvie, 50, of Reno, Nev., and Linwood Tracy, 73, of Fallon, Nev., who were indicted in November 2012, were convicted on Wednesday, Dec. 4, 2013, of one count of conspiracy to defraud. Ogilvie was also convicted of one count of corrupt interference with tax administration and five counts of presenting false claims to the IRS. The trial began on Monday, Dec. 2, 2013, and was presided over by U.S. District Judge Larry R. Hicks.
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 defendants face up to five years in prison and a $250,000 fine on the conspiracy charge. Ogilvie also faces up to three years in prison on the interference charge and up to five years in prison on each false claims count, as well as fines of $250,000 on each count. Tracy and Ogilvie are scheduled to be sentenced in Reno on March 3 and March 24, 2013, respectively.
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.
The case was investigated by IRS Criminal Investigation, and is being prosecuted by Assistant U.S. Attorneys Ronald C. Rachow and Michael W. Large.Man Who Stole Expensive Jewelry and Sold It to Las Vegas Shops Sentenced to Two Years in PrisonRead the Press Release
LAS VEGAS – A man who stole hundreds of thousands of dollars of expensive jewelry from persons at golf courses and sold it at trade shows, jewelry stores and pawn shops, has been sentenced to two years in prison, three years of supervised release, and ordered to pay $300,895 in restitution, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Jeffrey Cochran, 47, of Las Vegas, was sentenced on Monday, Nov. 25, 2013, by U.S. District Judge Jennifer A. Dorsey. Cochran pleaded guilty in July to two counts of possession and sale of stolen goods. He must self-report to prison by Feb. 25, 2014.
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department Special Investigations Section, and was part of a federal and local law enforcement effort to combat organized retail theft. The case was prosecuted by Assistant United States Attorney Christina M. Brown.
From about Sept. 15, 2010, to March 10, 2012, Cochran stole expensive jewelry, particularly Tag Heuer and Rolex watches, from individuals at golf courses in other states and transported the goods to Las Vegas for sale at jewelry and pawn stores. Cochran also stole jewelry from individuals at golf courses in Las Vegas and transported the stolen jewelry to other states to sell at trade shows and jewelry and pawn stores.Former Real Estate Agents Plead Guilty to Bank FraudRead the Press Release
LAS VEGAS, Nev. – A husband and wife who worked as real estate agents in southern Nevada have pleaded guilty to bank fraud charges in connection with several residential short sale transactions that resulted in over $350,000 in losses to Wells Fargo and Freddie Mac, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Cynthia Hosbrook, 41, and Robert Hosbrook, 52, both of Henderson, Nev., pleaded guilty before U.S. District Judge Jennifer A. Dorsey to one count of bank fraud. They face up 30 years in prison and a fine of up to $1 million, as well as mandatory restitution. Sentencing for both defendants is scheduled for March 3, 2014, at 10:00 a.m.
According to their guilty plea agreements, Cynthia Hosbrook had been an active real estate salesperson in Nevada since April 17, 2000, and Robert Hosbrook was licensed as a real estate salesperson in Nevada from Oct. 20, 2009, to Oct. 31, 2010. In 2010, the Hosbrooks engaged in a short-sale fraud scheme involving the sale of their personal residence to Cynthia Hosbrook’s mother. The Hosbrook’s defrauded Wells Fargo Bank and the Federal Home Loan Mortgage Corporation (Freddie Mac) by falsely representing that the short sale was due to personal hardship, that the transaction was an arm’s length transaction, that the sellers and buyers were not family members, and that the seller would not remain in the property subsequent to the sale. In fact, the Hosbrooks made a cash sale of the residence to Cynthia Hosbrook’s mother, and then continued to reside in the home after the sale even though they were not suffering from a personal hardship. The scheme resulted in a loss to Wells Fargo Bank and Freddie Mac of approximately $173,559. The Hosbrooks were also involved in two other fraudulent short-sale fraud transactions involving homes in Las Vegas and North Las Vegas during 2008 and 2009.
The case was investigated by the Federal Housing Finance Agency Office of the Inspector General, and is being prosecuted by Assistant U.S. Attorney J. Gregory Damm.
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. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Las Vegas Man Sentenced to 14 Years in Prison for Receiving and Possessing Child PornographyRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man who possessed over 1,400 images of child pornography on his home computers, has been sentenced to 14 years in prison and lifetime supervised release, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Steven Byington, 69, who was convicted by a jury on June 20, 2013, of one count of receipt of child pornography and one count of possession of child pornography, was sentenced on Thursday, Nov. 21, 2013, by U.S. District Judge Gloria M. Navarro.
“The penalties for this type of crime are very high, particularly when large amounts of pornography are received,” said U.S. Attorney Bogden. “We will aggressively prosecute the persons who victimize children through these horrible crimes.”
According to court records and evidence introduced at trial, in May 2010, Special Agents with Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) determined that Byington had made child pornography available for download through an Internet file sharing site. Agents executed a federal search warrant at Byington’s home in Las Vegas on Nov. 16, 2010, and seized four computers, external hard drives, and computer storage devices. A forensic analysis determined that the computers and equipment contained over 1,400 images, including 13 videos, of child pornography. The pornography included depictions of prepubescent minors, bondage, bestiality, and adult sexual penetration of minors.
The investigation was conducted by ICE-HSI and prosecuted by Assistant United States Attorneys Susan Cushman and Daniel R. Schiess.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
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 internetGoldfield, Nev. Man Sentenced to Two Years in Prison for Unlawful Possession and Attempted Purchase of FirearmsRead the Press Release
LAS VEGAS, Nev. – A long-time resident of Goldfield, Nev. was sentenced today to two years in federal prison and three years of supervised release for improperly possessing and attempting to purchase firearms, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Michael Rippie, 67, was sentenced by U.S. District Judge Gloria M. Navarro. Rippie was convicted by a jury on Aug. 9, 2013, of possession of a firearm by a person previously found to be a mental defective and committed to a mental institution and making false statements to acquire firearms. Rippie, who was arrested and charged in April 2013, had been released pending trial with special conditions and was residing in Pahrump with his former wife. Rippie was placed in federal custody immediately following sentencing.
“Federal laws prohibit certain individuals from prohibiting firearms, including felons, drug addicts, illegal aliens, persons convicted of domestic violence offenses or subject to restraining orders, and persons who have been previously adjudicated as a mental defective or committed to mental institution,” said U.S. Attorney Bogden. “Too many recent shooting incidents have demonstrated how dangerous firearms can be when they are in the hands of someone with a mental disorder. We will work with our local and federal law enforcement partners to ensure that persons who unlawfully possess firearms in violation of these laws are prosecuted federally.”
The case was investigated by ATF and prosecuted by Assistant United States Attorney Eric Johnson.
According to the court records, in 1971, Rippie was adjudicated not guilty by reason of insanity for a 1970 armed robbery in Colorado and was committed to a mental institution. On about Sept. 10, 2010, Rippie knowingly made a false written statement to a firearms dealer in Tonopah, Nev., in an attempt to purchase a long gun, stating that he had not been adjudicated a mental defective or committed to a mental institution. On April 10, 2013, Rippie was arrested at his home in Goldfield with 15 firearms, including two loaded semi-automatic assault-type rifles with extended 30-round clips and a loaded semi-automatic .40 caliber pistol. Rippie also possessed over 22,000 rounds of ammunition at his residence. Rippie was well-known to law enforcement and others in the Goldfield and Tonopah areas and had one conviction and 13 arrests over the last 48 years, including six involving firearms.Jewelry Store Owner Sentenced for Stolen Goods ChargeRead the Press Release
LAS VEGAS, Nev. – A Las Vegas jewelry store owner was sentenced today to two years in prison, three years of supervised release, and ordered to pay $196,000 in restitution for purchasing and selling luxury jewelry that he knew was stolen, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Nabil (”Bill”) Sakkab, 39, of Las Vegas, was sentenced by U.S. District Judge James C. Mahan. Sakkab pleaded guilty in July to two counts of receipt and sale of stolen goods. Sakkab was permitted to self-report to federal prison no later than Feb. 14, 2014.
“This case was prosecuted as part of a federal and local law enforcement effort to combat organized retail theft,” said U.S. Attorney Bogden. “Organized retail theft causes billions of dollars in losses to retailers annually. These losses are usually passed on to the consumers in the form of higher prices on goods, and states lose the tax revenue that would otherwise be generated from the sale of these goods by legitimate dealers.”
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department Special Investigations Section. The case was prosecuted by Assistant United States Attorney Christina M. Brown.
According to the court records, Sakkab was a partial owner of Red Rock Jewelers in Las Vegas. From about Sept, 20, 2011, to Feb. 3, 2012, Sakkab acted as a fence for stolen property by purchasing and selling luxury jewelry stolen by co-conspirator Jeffrey Cochran, who also pleaded guilty to stolen goods charges and is scheduled to be sentenced on Nov. 25, 2013. Most of the stolen items sold by Sakkab were high priced Rolex watches which had been stolen in other states and transported to Las Vegas. Sakkab resold the stolen jewelry at Red Rock Jewelers, and also sold it privately to third parties for personal gain. The amount of restitution ordered was reduced due to law enforcement’s successful recovery of one of the stolen watches.Man Sentenced to 10 Years in Prison for Arson at Las Vegas Children’s Autism FacilityRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man who attempted to destroy a local children’s autism learning facility with Molotov cocktails and gasoline, was sentenced today to 10 years in prison, three years of supervised release, and was also ordered to pay approximately $80,000 in restitution, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Samuel Powers, 24, was sentenced by U.S. District Judge Gloria M. Navarro. Powers pleaded guilty in July to one count of arson of property affecting interstate commerce and one count of possession of unregistered firearms, specifically Molotov cocktails.
“This was deliberate conduct that could have resulted in serious injury or loss of life, but for the very effective sprinkler systems in the building,” said U.S. Attorney Bogden. “Several buildings were damaged; sophisticated planning and means were used by the defendant to carry out his acts and we are very fortunate this did not result in serious injury or fatalities. Committing arson is never an appropriate way to resolve anger and conflict.”
"Some of the most dangerous criminals ATF investigates are those who use explosive devices to commit acts of violent crime by maliciously damaging property," said Bureau of Alcohol, Tobacco, Firearms and Explosives, Special Agent in Charge Joseph M. Riehl. "ATF will continue to target persons who put the public at risk through the illegal use of these horrific instruments of death and destruction."
According to the plea agreement and other Court pleadings, on April 15, 2013, Powers knowingly and maliciously damaged a building which housed several commercial businesses, including Sport Social, a facility that provides services to autistic children, located at 7055 Windy Street in Las Vegas. Powers forcibly entered Sport Social with three Molotov cocktails and a gasoline container, and poured gasoline and set multiple fires inside the business. The fires caused at least $80,000 in damage to the structure and its contents. Powers also possessed two additional unignited Molotov cocktails inside his vehicle at the scene of the fire, along with plastic gloves, a mask, and handwritten directions to the business. When Powers set the fires, he knew or had cause to believe that persons were inside a neighboring business, thereby creating a substantial risk of death or serious bodily injury to those persons.
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.
Justice Department Obtains $167,500 in Discrimination Settlement with Reno, Nev., Apartment ComplexRead the Press Release
WASHINGTON – The Justice Department announced today that the U.S. District Court of Nevada has approved a settlement in which the owners and operators of Rosewood Park Apartments, a 902 unit apartment complex in Reno, Nev., will pay $167,000 to resolve a lawsuit alleging discrimination against persons with disabilities who use assistance animals.
Under the agreement, the defendants in United States v. Rosewood Park LLC et al., will pay a total of $127,500 to a family that was not allowed to move into the complex because one of the members of the household used an assistance animal and to the Silver State Fair Housing Council, a non-profit Nevada organization that assisted the family and conducted testing to investigate the rental practices at Rosewood Park. The defendants will also pay an additional $25,000 to compensate any other persons harmed by the defendants’ discriminatory policies, who are identified through a process established by the agreement, and will pay $15,000 to the government in civil penalties. The agreement also requires that defendants adopt and maintain a new policy regarding assistance animals, provide non-discrimination training to their employees and agree to record keeping and monitoring requirements for the terms of the agreement. The agreement has been approved by the U.S. District Court of Nevada, and takes the form of a consent order that can be enforced by the court.
The department’s complaint had alleged that the owners, employees and management company of Rosewood Park Apartments violated the Fair Housing Act by limiting individuals with certain assistance animals to a particular section of Rosewood Park Apartments; subjecting such individuals to pet fees; requiring assistance animals to be licensed or certified; and barring companion or uncertified service dogs altogether. The case began when a family that had sought housing at Rosewood Park and the Silver State Fair Housing Council filed complaints with the Department of Housing and Urban Development (HUD). HUD investigated the complaint, issued a charge of discrimination and referred the matter to the Department of Justice.
“The Fair Housing Act ensures that persons with disabilities searching for a home are protected from discrimination,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “The Justice Department will continue to vigorously protect the civil rights of persons with disabilities in Nevada and across the country.”
“Persons who think they have been discriminated against in housing issues should not hesitate to file a report with HUD,” said U.S. Attorney Bogden. “The U.S. Attorney’s Office, as part of the U.S. Department of Justice, works with HUD to ensure that companies that are treating disabled persons unfairly are punished, and that they adopt policies to prevent further discrimination.”
“Assistance animals play a vital role in helping people with disabilities conduct everyday activities and fully enjoy their homes,” said Bryan Greene, HUD's Acting Assistant Secretary for Fair Housing and Equal Opportunity. “HUD and DOJ will continue to enforce the Fair Housing Act's protections and ensure that housing providers do not illegally limit assistance animals.”
Fighting illegal housing discrimination is a top priority of the Justice Department. The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability.
More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt/. Persons who believe they have experienced or witnessed unlawful housing discrimination may call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact HUD at 1-800-669-9777. More information about the Fair Housing Act can also be found at www.justice.gov/crt/housing/ or www.hud.gov/fairhousing.Man Sentenced to 15 Years in Prison for Transporting 16-Year-Old Girl from California to Reno for ProstitutionRead the Press Release
RENO, Nev. – A man who transported a 16-year-old girl from Sacramento, Calif., to Reno, Nev. in July 2010 for the purposes of prostitution, has been sentenced to 15 years in prison and lifetime supervised release, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Adam Scott, 27, of Fort McDermitt, Nev., was sentenced on Monday, Oct. 21, 2013, by U.S. District Judge Larry R. Hicks. Scott pleaded guilty on July 25, 2013, to one count of sex trafficking of a minor.
“Using undue influence and force to coerce a minor to engage in sex is despicable,” said U.S. Attorney Bogden. “Our law enforcement partners will continue to aggressively search out these sexual predators and our office will continue to aggressively prosecute these child exploitation cases to protect our community and our children.”
According to the court records, on July 31, 2010, Scott transported a 16-year-old girl from Sacramento to Reno for the purpose of using her for prostitution. Scott knew that the girl was not 18 years old. Scott refused to return the girl to Sacramento and maintained her in Reno until about Aug. 11, 2010. Scott used undue influence and force, including physical assault, in order to cause the girl to engage in commercial sex acts.
The investigation was conducted by the Innocence Lost Task Force made up of the FBI and the Reno Police Department’s Street Enforcement Team. 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."
Las Vegas Street Gang Member Sentenced to Life in Prison for Racketeering, Murder, Firearm, and Drug ChargesRead the Press Release
LAS VEGAS, Nev. A member of the Playboy Bloods street gang was sentenced today to life in prison for the retaliation murder of a man in November 2004 and the armed robbery of a Henderson, Nev. casino in 2002, announced U.S. Attorney Daniel G. Bogden of the District of Nevada and Acting Assistant Attorney General Mythili Raman 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.”
Jacorey Taylor, aka “Mo-B,” 31, who was convicted by a jury in May 2013, was sentenced by U.S. District Judge Robert C. Jones. Taylor was convicted of engaging in a racketeering (RICO) 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. He is the ninth gang member to be convicted out of 10 charged in a RICO indictment filed in 2008. The remaining defendant, Markette Tillman, 31, is awaiting trial.
Taylor and co-defendants Reginald Dunlap, aka “Bowlie,” and Steven Booth, aka “Stevie-P,” were convicted of participating in the murder of Billy Ray Thomas, who was shot multiple times in the back on the morning of Nov. 1, 2004, as he worked on a car in the parking lot of the Pecos Terrace Apartments while waiting to take his girlfriend to work. The defendants murdered Thomas due to their mistaken belief that Thomas was a member of a rival street gang. According to evidence presented at trial, two car loads of Playboy Bloods members and associates, including Taylor, Dunlap, Booth and others, drove through known Crip neighborhoods searching for rivals to retaliate against for the murder of Quaza Burns, a leader of the Playboy Bloods. The victim, Billy Ray Thomas, had no gang affiliation.
Evidence produced at trial also showed that on March 21, 2002, Taylor, armed with an AR-15 style assault rifle, and another man armed with an handgun entered the Klondike Casino in Henderson, forced their way behind the casino cage, and robbed the casino of over $7,000 in currency.
Dunlap and Booth pleaded guilty to racketeering conspiracy charges during Taylor’s trial and were each sentenced in April 2013 to 20 years in prison. There is no parole in the federal criminal justice system.
According to court documents 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. Other Bloods sets within the Las Vegas metropolitan area include the Piru Bloods and the West Coast Bloods. A subset of the Playboy Bloods is the Full Throttle Clique, a group made up of Playboy Bloods members who engage in acts of violence, including murder. According to evidence presented at trial, Taylor, Dunlap, and Booth were all members of the “Full Throttle Clique” of the Playboy Bloods. Taylor, along with other Playboy Bloods enterprise members, operated drug houses in the Sherman Gardens Annex (also known as “The Jets”) and the surrounding areas.
Eight other defendants who have been convicted and sentenced, as follows:
- Steven Booth, aka “Stevie-P,” 27, pleaded guilty to RICO conspiracy and was sentenced to 20 years in prison on April 10, 2013
- Reginald Dunlap, aka “Bowlie,” 30, pleaded guilty to RICO conspiracy 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
Former Turnberry Controller Sentenced to 37 Months in Prison for $6 Million EmbezzlementRead the Press Release
LAS VEGAS, Nev. – The former controller for the company that owned or developed the Residences at MGM, Town Square shopping center, Turnberry Place, Turnberry Towers, and the Stirling Club in Las Vegas, was sentenced today to 37 months in prison, three years of supervised release, and ordered to pay approximately $5.6 million in restitution, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Hope Ippoliti, 52, of Las Vegas, who pleaded guilty in March to conspiracy to commit wire fraud, was sentenced by U.S. District Judge Gloria M. Navarro. Ippoliti was permitted to self-report to federal prison by Jan. 14, 2014.
“This was a significant amount of money that was embezzled over an almost five-year period,” said U.S. Attorney Bogden. “Ms. Ippoliti victimized not only Turnberry Associates in the amount of $5.6 million, but caused irreparable harm and financial damage to the many victims and business entities employed and supported by Turnberry Associates.”
Ippoliti worked as the Western Regional Controller for Turnberry West Realty, a subsidiary of Turnberry Associates, LLC. In that capacity, Ippoliti had signatory authority and access to certain Turnberry bank accounts. From about May 17, 2007, to about Jan. 12, 2012, Ippoliti and a co-defendant, Rocco Lazazzaro, conspired to steal from Turnberry Associates and its affiliates. Ippoliti created fund transfer requests containing false information that the funds were intended for business-related purposes when she and Lazazzaro actually intended to withdraw the funds for personal use. Ippoliti faxed or emailed the fund transfer requests from Nevada to Turnberry Associates in Florida to cause the transfer of funds into Bank of America accounts over which she had signatory authority. Ippoliti and Lazazzaro deposited and cashed checks and cashier’s checks drawn on Bank of America bank accounts belonging to Turnberry Associates and its affiliates. The total losses to Turnberry Associates and its affiliates were $5.6 million.
Lazazzaro, who had a lengthy criminal history, was sentenced on Aug. 22 to 51 months in prison.
The case was jointly investigated by the FBI and the United States Secret Service and is being prosecuted by Assistant U.S. Attorney Christina M. Brown.
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. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
U.S. Attorney Announces Hiring Grant to City of Reno for Law Enforcement and School Safety OfficersRead the Press Release
-Funds Will Hire School Resource Officers and Critical Law Enforcement Positions-
RENO, 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 today the U.S. Department of Justice awarded a grant of $750,000 to the City of Reno for the hiring of six law enforcement officers.
“In the wake of past tragedies, it's clear that we need to be willing to take all possible steps to ensure that our kids are safe when they go to school,” said Attorney General Eric Holder. “These critical investments represent the Justice Department's latest effort to strengthen key law enforcement capabilities, and to provide communities with the resources they need to protect our young people. Especially in a time of increased challenges and limited budgets, our top priority must always be the safety and well-being of our children.”
Overall the COPS Office funded awards to 263 cities and counties, aimed at creating 937 law enforcement positions. More than $125 million will be awarded nationally, including nearly $45 million to fund 356 new school resource officer positions.
“Keeping our children safe when they go to school is of critical importance and I am pleased to join the Attorney General and the COPS Office in announcing these grants which will help provide our communities with the resources needed to accomplish this vital mission,” said U.S. Attorney Bogden.“The COPS Office is pleased to assist local law enforcement agencies throughout the country address their most critical public safety issues,” said Joshua Ederheimer, Acting 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.”
The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides the salary and benefits for officer and deputy hires for three years.
Grantees for the 2013 hiring program were selected based on their fiscal needs, local crime rates, and their community policing plans. There was an additional focus this year on agencies requesting assistance in developing school safety programs that would include the hiring of a school resource officer. School resource officer positions funded by the COPS Office are sworn law enforcement positions that work within a school district or facility, interacting directly with school administrators and students.
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 2013 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.Las Vegas Escrow Officer Convicted in Mortgage Fraud ConspiracyRead the Press Release
LAS VEGAS, Nev. – Following a two-week jury trial, a Las Vegas real estate escrow officer was convicted today of conspiracy and fraud charges for her involvement in a mortgage fraud scheme that caused millions of dollars in losses to the lenders and financial institutions, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Theresa Marcianti, 60, of Las Vegas, was convicted of one count of conspiracy to commit bank, mail, and wire fraud, two counts of bank fraud, and one count of wire fraud, and is scheduled to be sentenced on Dec. 10, 2013, at 10:00 a.m. She faces up to 20 years in prison and a $250,000 fine on the conspiracy count, and up to 30 years in prison and a $1 million fine on each bank fraud and wire fraud count.
“Over the last five years, we have made the prosecution of mortgage fraud cases a priority,” said U.S. Attorney Bogden. “This type of fraud was a catalyst to the real estate crisis in Nevada. Punishing those criminals for their actions should send a strong message to others who are looking to profit from the misfortune of others.”
According to the indictment and evidence presented to the jury during the trial, from about 2003 to 2008, Marcianti, a real estate escrow officer who worked for Lawyer’s Title and National Alliance Title, conspired with others to trick lenders into making home loans through the use of false statements. The conspirators cheated lenders by using straw buyers to buy homes, submitting false information to lenders to make it appear that the straw buyers qualified for the loans, and taking a portion of the loans for their personal gain. Marcianti helped the co-conspirators submit the false information to the lenders to obtain the mortgage loans.
The conspirators in the scheme obtained control of approximately 227 properties which had a total purchase price of more than $100 million. The exact number of fraudulent transactions in which Marcianti was involved and the losses for which she is responsible will be determined at sentencing in December.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorneys Daniel R. Schiess and Kimberly M. Frayn.
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.Defendant in $15 Million Mortgage Fraud Conspiracy Convicted by Federal JuryRead the Press Release
LAS VEGAS, Nev. – Following a two-week jury trial, the 10th person charged in a Las Vegas mortgage fraud scheme that caused approximately $15 million in losses to the lenders and financial institutions, was convicted today of conspiracy and fraud charges, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Jabari L. Marshall, 36, of Las Vegas, was convicted of one count of conspiracy to commit mail fraud and wire fraud, and is scheduled to be sentenced on Jan. 9, 2014. He faces up to 20 years in prison and a $250,000 fine. Nine co-defendants pleaded guilty before trial. Eight of those are awaiting sentencing and one has been sentenced.
“The number of homes and dollar amount of the loans involved in this crime is staggering,” said U.S. Attorney Bogden. “All of the persons charged in this conspiracy have now been convicted and are facing significant prison sentences. As each of those convicted fraudsters can now attest, mortgage fraud is a very serious offense that will send you to prison.”According to the indictment and evidence presented to the jury during the trial, from about 2005 to 2007, the defendants were involved in a mortgage fraud scheme which involved the use of straw buyers and the submission of false information to financial institutions in order to obtain mortgage loans. Once the mortgage loans were approved, the defendants caused money from the loan transactions to be disbursed to their own use and benefit. The defendants typically rented the homes and re-sold them for a profit, using the same scheme. They then defaulted on the loans, causing approximately $15 million in losses to the lenders. 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 defendants included two loan officers, two real estate agents, an escrow assistant, an accountant, and an individual who provided false verifications of rent.
The evidence showed that the defendants 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. Some of the homes were “flipped” or sold twice within short periods of time.
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.Man Sentenced to 17½ Years in Prison in Phony Stem Cell CaseRead the Press Release
LAS VEGAS, Nev. – A man who conspired with a now-deceased Henderson pediatrician to take thousands of dollars from chronically ill patients for fraudulent stem cell implant procedures, was sentenced today to 17½ years in federal prison and ordered to pay approximately $1 million in restitution, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Alfred T. Sapse, 87, of Las Vegas, was sentenced by Senior U.S. District Judge Kent J. Dawson, and was immediately remanded to federal custody. Sapse was convicted by a jury in November 2012 of conspiracy to commit mail fraud and wire fraud, seven counts of mail fraud, and 11 counts of wire fraud. The co-defendant, Ralph M. Conti, M.D, of Henderson died several weeks following the conviction.
“Using purported medical practices and procedures to steal from vulnerable persons who are ill is disgusting and wrong,” said U.S. Attorney Bogden. “We will continue to use federal investigative and prosecutorial resources to ensure that persons who commit such crimes are held accountable and sent to prison.”
“Today’s sentence holds Mr. Sapse accountable for preying on patients who sought treatment for serious medical conditions, and demonstrates FDA’s commitment to protecting public health,” said Antoinette V. Henry, Special Agent in Charge, FDA Office of Criminal Investigations, Metro-Washington Field Office.
According to the superseding indictment and evidence introduced by the government at trial, from about January 2005 to current, Sapse, who purports to be a retired foreign physician but who has never been licensed to practice medicine in Nevada or any other state, convinced chronically ill patients to undergo experimental implant procedures and convinced investors to pay him large amounts of money without knowing the short- or long-term effects of the implant procedures he promoted. The procedures involved the implantation of portions of placental tissue into the abdomen of the patients for the treatment of their diseases. Sapse allegedly targeted extremely sick patients, by claiming that his “proprietary” procedure was especially effective for patients with multiple sclerosis, cerebral palsy and retinitis pigmentosa (a disease of the retina which can cause blindness.)
In the fall of 2005, Sapse hired Conti, a pediatrician in Henderson who had no prior stem cell training, to perform the procedures. At Sapse’sdirection, between approximately February 2006 and November 2006, Conti performed the implant procedure on approximately 34 patients in Las Vegas, knowing that it would not benefit the patients. During 2006, procedures performed by Dr. Conti resulted in the infection of at least two patients. In November 2006, the FDA sent Sapse and Conti a warning letter explaining that their procedure violated federal law, but after that date Conti performed at least one more implant and Sapse coordinated the implantation of a least two more patients.
Sapse and Conti made a number of misrepresentations to prospective patients and investors, including that the placental tissue used in the procedures was obtained only from Caesarian section births, so as to reduce the risk of passing infection, or otherwise to prevent “damage” to the placenta; that he had achieved “considerable success” with a procedure that was going to “revolutionize medicine as it is known today”; that wheelchair bound patients would “definitely walk again”; and that he subjected the placental tissue he obtained to a “proprietary process.”
Sapse failed to obtain any approvals from the FDA, as he knew he was required to do, prior to coordinating the implantation of placental cells in patients by Conti. Sapse and Conti made false representations to FDA regulatory investigators regarding their involvement in the scheme, conducted no meaningful follow-up with the patients who underwent the implant procedures, and concealed from patients and prospective patients the adverse effects suffered by previous patients.
In about February 2007, Sapse relocated his fraudulent scheme to Mexico and entered into an arrangement with a Mexican physician in Nuevo Progresso, Mexico, to perform his implant procedure. At Sapse’sdirection, the Mexican physician performed the implant procedure on approximately 100 patients between approximately February 2007 and May 2010 in Mexico.
Sapse received approximately $1 million from patients and investors, approximately $700,000 of which he spent on personal expenditures and for gambling at local casinos. Conti received in excess of $60,000 from the fraudulent procedures, all of which was in cash and none of which was reported on the accounting books of his medical practice. Sapse or Conti did not use any of the money for laboratory research, animal studies or human clinical studies relating to the short- and long-term effects of the implant procedures they were promoting.
This case was investigated by the FDA Office of Criminal Investigations and prosecuted by Assistant U.S. Attorney Crane M. Pomerantz and First Assistant U.S. Attorney Steven W. Myhre.Federal Jury Convicts Men of Las Vegas Home Invasion RobberyRead the Press Release
LAS VEGAS, Nev. – Following a nine-day jury trial, a federal jury has convicted two Arizona men of committing a home invasion robbery in North Las Vegas, Nev., during May 2012, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Joseph Andrade, 19, and Julian Gaytan, 20, both of Phoenix, Arizona, were convicted this afternoon of one count of conspiracy to travel in interstate commerce in furtherance of racketeering activity, two counts of brandishing a firearm in furtherance of a crime of violence, and one count of interstate travel in aid of racketeering activity.
They are scheduled to be sentenced on Dec. 19, 2013, and face up to five years in prison on the conspiracy charge, up to 20 years in prison on the interstate travel charge, and at least 32 consecutive years in prison on the brandishing charges, as well as fines of up to $1 million.
“This successful prosecution was part of our expanded Project Safe Neighborhood (PSN) program which focuses on violent robberies and other crimes involving the use of firearms by recidivist felons,” said U.S. Attorney Bogden. “This case should serve notice that persons who commit such violent criminal acts will be prosecuted, and when convicted, they will face the prospects of serving very lengthy prison sentences. I would like to thank our prosecution team and law enforcement partners for taking these violent criminals off our streets.”
According to the court records and evidence introduced at trial, on Saturday, May 19, 2012, Andrade, Gaytan, and two co-defendants, Perla Ramirez, 22, and David Duran, 30, also both from Phoenix, Ariz., drove from Phoenix to Las Vegas with the intent to commit a home invasion robbery at a designated residence in North Las Vegas. The defendants drove to the residence and caused one of the occupants to open the front door. The defendants entered the residence brandishing guns and ordered all seven of the occupants of the home to the floor. The defendants threatened to kill the occupants if they did not tell them where money and/or jewelry were located. The defendants ransacked the home in order to locate money or valuable property and stole cash, cellular telephones, jewelry and other property before exiting the residence and either fleeing on foot or returning to their vehicle. North Las Vegas Police Officers were dispatched to the scene at approximately 10:30 p.m. following a call from the occupant of a home across the street where one of the female minor victims had run and advised that men had broken into her house with guns.
Defendants Andrade and Ramirez were arrested outside the residence immediately following the robbery. Gaytan was arrested in Phoenix about six weeks following the robbery, and Duran, who fled the scene, has not yet been arrested and is a fugitive.
Ramirez pleaded guilty on Sept. 3, 2013, to conspiracy to travel in interstate commerce in furtherance of racketeering activity, and is scheduled to be sentenced on Dec. 5, 2013.
The investigation was conducted by the North Las Vegas Police Department and FBI, as part of the Safe Streets Task Force and PSN program. It was prosecuted by Assistant United States Attorneys Cristina D. Silva and Phillip N. Smith, Jr.Nevada Tribes Receive $1.8 Million in Grants from U.S. Department of JusticeRead the Press Release
LAS VEGAS, Nev. – Two northern Nevada Indian tribes will receive over $1.8 million in U.S. Department of Justice grants to assist them enhance law enforcement practices and sustain crime prevention and intervention efforts, announced Nevada’s U.S. Attorney, Daniel G. Bogden. The Nevada tribes were included in an announcement made yesterday by the U.S. Department of Justice as part of its ongoing initiative to increase engagement, coordination and action on public safety in tribal communities. The announcement stated that 192 grants totaling over $90 million were made to more than 110 American Indian and Alaska Native nations.
“I am very pleased that Nevada tribes have received this much needed financial assistance from the Department of Justice,” said U.S. Attorney Bogden. “Over the last several years, representatives from my office, federal law enforcement, and I have visited and consulted with all of our Nevada tribes concerning the law enforcement and safety issues they face on their tribal lands. It has brought a better understanding of how we can better serve and support our tribal partners.”
Nevada tribes receiving awards are the Pyramid Lake Paiute Tribe and the Washoe Tribe of Nevada and California. Each of these tribes received a grant for public safety and community policing and for the violence against women tribal governments program. More information on the awards is available at www.justice.gov/tribal/docs/ctas-award-list-2013.pdf.
The awards are made through the department’s Coordinated Tribal Assistance Solicitation (CTAS), a single application for tribal-specific grant programs. The department developed CTAS through its Office of Community Oriented Policing, Office of Justice Programs and Office on Violence against Women, and administered the first round of consolidated grants in September 2010. Over the past four years, it has awarded 989 grants totaling more than $437 million. Information about the consolidated solicitation is available at www.justice.gov/tribal/. A fact sheet on CTAS is available at www.justice.gov/tribal/ctas2013/ctas-factsheet.pdf.Man Sentenced to 24 Years in Prison for Distribution of Methamphetamine in Reno AreaRead the Press Release
RENO, Nev. - A California man who led a group of individuals selling methamphetamine in the Reno area, has been sentenced to 24 years in prison and five years of supervised release for his conviction on federal drug trafficking charges, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Antonio Casares-Cuevas, 30, of San Jose, Calif., was sentenced on Thursday, Sept. 12, 2013, by Senior U.S. District Judge Larry R. Hicks. Casares-Cuevas pleaded guilty in May 2013, to conspiracy to possess with the intent to distribute at least 500 grams of methamphetamine.
According to the court filings, Casares-Cuevas lived in San Jose, Calif. and made frequent trips to Reno, Nev. where he supplied persons with methamphetamine for distribution. Co-defendants Mario Perez, Javier Zaragoza, and Tony Berliner lived in Reno and either distributed methamphetamine or arranged methamphetamine transactions for Casares-Cuevas.
On Jan. 5, Feb. 22, and March 7, 2012, at Casares-Cuevas’ direction, Perez and Zaragoza sold a total of about 5½ ounces of methamphetamine to a person in Reno, who, unbeknownst to them, was a confidential source working with the DEA. The government then obtained a court order authorizing a wiretap of Casares-Cuevas’ cellular telephone. Intercepted calls revealed Casares-Cuevas’ arrangement to pick up a supply of methamphetamine from co-defendant Armando Romero at his residence in Sacramento, Calif. on April 4, 2012. On April 4, 2012, Casares-Cuevas picked up the methamphetamine and was later pulled over by California Highway Patrol Officers as he was driving on Highway 99 near the Sacramento and San Joaquin County line. The officers recovered almost two pounds of pure methamphetamine from his vehicle.
Also on April 4, 2012, agents executed a federal search warrant at Casares-Cuevas’ home in San Jose, where Casares-Cuevas resided with co-defendant Leonela Urbina, and recovered more than six ounces of methamphetamine from a shed and $13,738 in cash from his bedroom. Federal search warrants were also executed at two homes in Reno where Zaragoza and Perez resided, and from those homes, agents recovered over five more ounces of methamphetamine. A state search warrant was executed at Romero’s residence, where officers recovered approximately 1½ pounds of pure methamphetamine.
Co-defendants Armando Romero, Mario Perez, Javier Zaragoza, Leonela Urbina, and Tony Berliner, also pleaded guilty to drug trafficking charges and were sentenced to prison terms of between three and 10 years.
The case was prosecuted by Assistant U.S. Attorney James E. Keller and investigated by the Drug Enforcement Administration (DEA).Man Pleads Guilty to Possessing and Making ExplosivesRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man pleaded guilty today to unlawfully possessing and making explosives at his home in Las Vegas, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Steven Fernandes, 19, pleaded guilty before U.S. District Judge Andrew P. Gordon to one count of possession of an unregistered firearm. Sentencing is scheduled for Dec. 18, 2013, at 9:00 a.m. Fernandes, who is in federal custody on the charges, faces up to 10 years in prison and a fine of up to $250,000.
According to the plea agreement, before and up to Sept. 13, 2012, Fernandes possessed at his home explosive parts and devices which were not registered with the National Firearms Registration and Transfer Record. On about Sept. 10, 2012, Fernandes also transported explosive materials in Nevada, Utah, and Arizona and detonated destructive devices in the Arizona desert.
According to other court records, from January to September 2012, several individuals reported to the FBI that Fernandes believed he was a sniper and commanding officer of a militia which was preparing to go to war with the government or an invading country. Fernandes had bragged that he possessed firearms and a large amount of ammunition and could walk into a restaurant filled with people and kill as many people as he wanted. Fernandes bragged that he was trained in the building of homemade explosives including chlorine bombs, and had made and possessed numerous pipe bombs.
Federal law enforcement agents arrested Fernandes on Sept. 13, 2012, after they observed him drive away from his residence with a shotgun in his vehicle. During a search of Fernandes’ vehicle they found a loaded Mossberg Model 500 12-gauge shotgun containing 10 rounds of ammunition. They also found at least 44 more rounds of shotgun ammunition in the vehicle. The agents also executed a federal search warrant at Fernandes’ home on Sept. 13, 2012, and recovered firearms, explosive devices, and a number of substances and tools that could be used in the building of explosive and noxious gas releasing devices, including napalm, ammonium and sodium sulfate, sulfur, cannon fuses. Additionally, they recovered two inert hand grenades, five rifles, four handguns, and thousands of rounds of ammunition, and instructive materials for making explosive devices.
This case was investigated by the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Clark County Fire Department, and the Las Vegas Metropolitan Police Department, and is being prosecuted by Assistant U.S. Attorney Nicholas D. Dickinson.Three Las Vegans Charged with Telemarketing Fraud in Association with Promising Grants to Small Business OwnersRead the Press Release
LAS VEGAS, Nev. – Three Las Vegas residents have been indicted by the federal grand jury for allegedly defrauding almost 400 persons of over $5 million in connection with a grant funding telemarketing scheme, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Gregory Villegas, aka Ray Matsui, aka Ray Mathis, 34; Christine M. Gagnon, aka Lisa Foster, aka Crystal Waters, 33; and Mickey Gines, 40, all of Las Vegas, are each charged with one count of conspiracy to commit wire fraud in connection with telemarketing, and 31 counts of wire fraud. They were arrested in Las Vegas this morning and are scheduled to make initial appearances in court today before United States Magistrate Judge George Foley, Jr. at 2:30 p.m.According to the court records, Villegas owned and controlled Executive Solutions, Inc. in addition to Business Funding Services Enterprises; BFS Enterprises; Global Business Funding, Inc.; The Grant People; USA Grant Team; USA Grants; National Financial Advisors; US Filing Services, Inc.; US Filings Service, Inc.; USFS, Inc.; Echoe, Inc.; Worldwide Asset Management; Corporate Capital Team; Business Acumen; and Kuff Ltd.
These companies were allegedly involved in the business of grant funding. Gagnon and Gines were officers in some of the companies and were also listed as employees in other grant funding companies that they or Villegas owned or controlled. Beginning in about March 2008 and continuing through May 2, 2012, Villegas, Gagnon, Gines and others engaged in a telemarketing scheme to defraud persons of their money, including at least 10 victims over the age of 55. The defendants employed sales staff to place telemarketing calls and operate websites for the purpose of soliciting fees from small business owners who wished to obtain private and government grants. The defendants and staff allegedly used high pressure sales and lulling tactics and made many types of false statements to customers concerning their ability to deliver grants, when the defendants knew that their true intent was to obtain as much money as possible from the customers, rather than assist them in obtaining grants, and knew that none of their customers had ever received a grant.
In order to avoid lawsuits and detection by law enforcement, the defendants operated their companies under multiple and evolving names and directed their staff to use aliases which they routinely changed in communications with the customers. When the grants failed to materialize, the defendants and staff falsely represented to customers that they were only collecting money for other companies or that delays in funding were caused by circumstances beyond the defendants’ control. In some instances, the defendants agreed to provide partial refunds to customers and fraudulently required the customers to sign release forms stating that the defendants had not engaged in any wrongdoing.
The indictment alleges that through this scheme, the defendants victimized approximately 390 persons throughout the United States, 10 of whom were over the age of 55, and obtained approximately $5.2 million in fraudulently obtained funds.
If convicted, they face up to 30 years in prison on the conspiracy count, plus up to 10 consecutive years for telemarketing to 10 or more persons over the age of 55, and up to 30 years in prison on each wire fraud count, as well as fines of up to $250,000 per count.The case was investigated by the United States Secret Service and FBI and is being prosecuted by Assistant U.S. Attorney Christina M. Brown.
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. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
An indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to fair trials at which the government has the burden of proving guilt beyond a reasonable doubt.Iowa Couple and Nevada CPA Indicted on Charges of Conspiring to Defraud the IRSRead the Press Release
LAS VEGAS, Nev. - A couple from Iowa and a Nevada accountant were charged today with conspiring to defraud the IRS of over $700,000 through a scheme in which they allegedly used nominee corporations and nominee bank accounts to hide their income and other assets, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Darlene Taylor McCord and James Bert McCord, of Iowa City, Iowa, and Wendell Leroy Waite, of Las Vegas, are charged with one count of conspiracy to defraud the United States. Waite is also charged with one count of income tax evasion and four counts of aiding in the preparation and filing of false and fraudulent federal tax returns. Darlene and James McCord are also charged with four counts of making and subscribing false and fraudulent federal individual and corporate tax returns, one count of making a false financial condition statement, and nine counts of attempting to evade or defeat the payment of their federal taxes, penalties and interest.
The defendants are scheduled to make initial appearances before a federal magistrate judge in Las Vegas on Thursday, Sept. 19, 2013, at 3:00 p.m. If convicted, they face up to five years in prison and a $250,000 fine on the conspiracy and tax evasion charges, and up to three years in prison and a $250,000 fine on the false or fraudulent tax return charges.
According to the indictment, Darlene and James McCord were the owner of several Nevada corporations, TOB Management, Inc. Que 1, Inc., and HTR Group, Inc. Waite was a licensed Certified Public Accountant in Nevada, California, and Utah, who resided and worked in Nevada.
On June 23, 2003, the McCords allegedly owed the IRS approximately $197,420 in personal income taxes, and owed an additional IRS Trust Fund Recovery Penalty of approximately $547,788. From approximately May 2004 through February 2008, the McCords received personal income of over $2.7 million. Waite was associated with the Asset Protection Group, Inc., (APG) whose primarily function was to offer services to individuals who were trying to hide their assets from creditors, including the IRS, through the use of nominee corporations, nominee bank checking accounts, and “friendly liens” designed to create the illusion that a person’s assets were encumbered by liens. Beginning in about November 2004, the McCords deposited about $2.7 million into an APG bank escrow account and/or into one of their corporate accounts, allegedly for the purpose of hiding the money from the IRS. In about February 2005, APG allegedly referred the McCords to Waite for accounting and tax purposes and over the next two years, Waite filed multiple fraudulent federal tax returns for the McCord’s and their nominee corporations concealing their true income and assets.
The case is being investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney J. Gregory Damm.Builder Sentenced to Prison for Embezzling from Federal Housing ProgramRead the Press Release
LAS VEGAS - - A home builder was sentenced today by U.S. District Judge Kent J. Dawson to 51 months in prison and three years of supervised release for embezzling from a federal housing grant program that was to be used to build affordable housing for the Navajo people near Chilchinbeto, Arizona, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
William Aubrey, 71, of Mesquite, Nevada, was convicted by a jury in May of two counts of taking and converting money and funds belonging to a tribal organization. A hearing to decide the amount of restitution Aubrey must pay will be held on Oct. 15, 2013. Aubrey is to report to federal prison on Jan. 3, 2014.
“Persons who steal from federal programs cheat the recipients of those programs as well as the American taxpayer,” said U.S. Attorney Bogden. “As the prosecution of this case demonstrates, persons who steal from federal programs such as HUD or Medicare, will be prosecuted and when convicted face severe penalties.”
The Navajo Nation is a federally recognized sovereign Indian Tribe whose borders encompass a large portion of Arizona and extend into New Mexico and Utah. According to court records and the evidence introduced at trial, Fort Defiance Housing Corporation was a Navajo Nation non-profit corporation entrusted by the Navajo Housing Authority to manage federal housing funds granted to the Navajo Nation. Fort Defiance Housing Corporation contracted with a Lodgebuilder, a for-profit construction company owned and operated by Aubrey, to oversee the construction of several housing developments including the project near Chilchinbeto. Fort Defiance Housing Corporation also empowered Aubrey to manage the federal housing funds granted to that non-profit corporation for purposes of paying subcontractors, suppliers and other construction expenses. Aubrey mismanaged and failed to account for those grant funds. Aubrey transferred the housing grant funds into his own personal account and misused a substantial portion of the funds to pay his own gambling debts and other personal expenses.
The case was investigated by the Office of Inspector General for U.S. Housing and Urban Development and prosecuted by Assistant U.S. Attorneys Timothy S. Vasquez 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. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.U.S. Department of Justice Awards $6 Million to State of Nevada to Assist Crime VictimsRead the Press Release
LAS VEGAS, Nev. – Daniel G. Bogden, United States Attorney for Nevada, is pleased to announce that today the U.S. Department of Justice awarded $6 million from the 2013 Crime Victims Fund to the State of Nevada for victim compensation and assistance programs. Victim assistance funds in the amount of $3,954,131, and victim compensation funds in the amount of $2,054,000, have been awarded to the State of Nevada Departments of Health and Human Services and Administration to provide support and services to thousands of victims throughout the state.
Since the Crime Victims Fund was established in 1986, crime victims across Nevada have received services and economic assistance totaling over $80 million , said U.S. Attorney Bogden. “The United States Attorney’s Office is pleased to support both the collection efforts for the Crime Victims Fund, which provides these program dollars, and the allocation of these resources to help Nevada’s crime victims.”
Crime victim assistance funds are competitively awarded by the State to local community-based organizations that provide direct services to crime victims. Funding is provided to domestic violence shelters, rape crisis centers, child abuse victims programs and other initiatives that provide counseling, advocacy or emergency transportation to victims. Nevada can also use these funds for sexual assault programs or victim service units in law enforcement agencies, prosecutors offices and social service agencies.
Nevada’s compensation program receives annual grants equal to 60 percent of its total payout to crime victims in a previous year. Compensation programs work similarly to private insurance, providing reimbursement to, or on behalf of, crime victims for expenses such as medical costs, mental health counseling, funeral and burial costs, and lost wages, as a result of being a crime victim.
The Crime Victims Fund is supported primarily by fines paid by federal criminal offenders – not taxpayers. These fines are collected by United States Attorney’s Offices, the United States Courts, and the Federal Bureau of Prisons. Fines collected in one year are deposited into the Fund and are available for grant awards the following year. The USA Patriot Act of 2001 also allowed private gifts, donations and bequests to the Crime Victims Fund. Over 90 percent of Fund deposits are distributed annually by the Department of Justice to states and territories to support state victim compensation and victim assistance programs. Remaining funds are used for training and technical assistance, national demonstration projects and to improve handling of child abuse cases in Indian communities. In addition, these funds support victim witness coordinator and advocate positions for U.S. Attorney Offices, victim specialist positions in the FBI and a federal victim notification system. More information on Nevada’s victim compensation and victim assistance efforts is available from the State of Nevada Department of Administration Victims of Crimes Program at (702) 486-2740 in southern Nevada or (775) 688-2900 in northern Nevada, or the State of Nevada Department of Health and Human Services, Division of Child and Family Services, at (775) 684-4400. Questions may also be directed to OJP’s Office of Communications at (202) 307-0703.Las Vegas Lawyer Sentenced to over Seven Years in Prison for Mortgage Fraud CrimesRead the Press Release
LAS VEGAS, Nev. – Las Vegas lawyer Gerry Zobrist was sentenced today to 87 months in prison for his involvement in a mortgage fraud scheme that caused over $30 million in losses to lenders, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
“Mortgage fraud contributed to the decimation of real property values in Nevada,” said U.S. Attorney Bogden. “Since 2008, we have been working vigilantly with our law enforcement partners to investigate and prosecute these fraudsters. Hundreds of individuals have been convicted, including lawyers, real estate agents, real estate brokers, loan officers, loan processors, and others who participated in these schemes and most of them are now serving time in federal prison.”
Zobrist, 43, of Las Vegas, was sentenced by U.S. District Judge James C. Mahan. Judge Mahan also ordered Zobrist to pay approximately $31 million in restitution and to serve five years of supervised release. Zobrist pleaded guilty in January to one count of conspiracy to commit bank fraud and wire fraud. He was allowed to self-report to federal prison by Dec. 6, 2013.
According to the plea agreement, from about June 2006 to May 2008, Zobrist and unnamed coconspirators solicited and paid persons with good credit ratings to serve as straw buyers to purchase homes in the Las Vegas area on behalf of Zobrist and the coconspirators. Zobrist and the coconspirators made offers to purchase the homes, and the sellers agreed to disburse part of the sales proceeds to real estate companies, coconspirators and third party entities controlled by Zobrist and the coconspirators under the pretense that the proceeds constituted attorney’s fees, marketing fees, commissions, and other fees. Zobrist and the coconspirators caused to be completed and submitted mortgage loan applications and supporting documents in the name of the straw buyers, which contained false and fraudulent information concerning the straw buyers’ income, assets, liabilities, intended occupancy status, and other things. Zobrist and the coconspirators also caused to be submitted to the lenders documents containing false information about the source of the down payments, value of the homes, and intended disbursements to Zobrist, the coconspirators, and straw buyers. Using this fraudulent scheme, Zobrist and the coconspirators purchased 144 homes and obtained mortgage loans for more than $53 million. Zobrist and the coconspirators defaulted on the mortgage loans causing the homes to go into foreclosure, and caused the financial institutions to suffer losses of at least $30 million.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorneys Daniel R. Schiess and Sarah E. Griswold.
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. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Man Who Took Sexually Explicit Photographs of 7-Year-Old and Posted Them Online Sentenced to 20 Years in PrisonRead the Press Release
RENO, Nev. – A man who took pornographic photographs of a seven-year-old relative and posted them on an Internet file sharing site, has been sentenced to 20 years in prison and lifetime supervised release, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Gregorio Evaristo Sarabia-Garcia, 31, of Sparks, Nev., was sentenced on Tuesday, Sept. 3, 2013, by U.S. District Judge Miranda M. Du. Sarabia-Garcia pleaded guilty on June 3, 2013, to one count of production of child pornography and one count of receipt of child pornography.
“The safety and well-being of our children is a top priority for the Department of Justice and our office,” said U.S. Attorney Bogden. “Our law enforcement partners will continue to aggressively search out these sexual predators and our office will continue to aggressively prosecute these child exploitation cases to protect our community and our children.”
According to the court records, between March 27 and April 26, 2012, an investigator with the Internet Crimes Against Children (ICAC) Task Force in Reno conducted an online undercover operation on an Internet file sharing network in an effort to identify individuals who were advertising, possessing, and distributing child pornography in northern Nevada. The investigator determined that Sarabia-Garcia, who lived in an apartment in Sparks, had placed numerous images of child pornography on the file sharing network. Investigators obtained and executed search warrants for several computers that Sarabia-Garcia possessed at his apartment, and found pornographic photographs of a seven-year-old relative of Sarabia-Garcia, as well as over 150 additional images of child pornography which Sarabia-Garcia had received from the Internet. These images depicted prepubescent minors engaged in sexually explicit conduct, including some files that depicted sadistic and masochistic conduct. Sarabia-Garcia admitted to investigators that he had taken the photographs of his relative with his cellular telephone and transferred them to his computer.
The investigation was conducted by U.S. Immigration and Customs Enforcement, with the assistance of the Internet Crimes Against Children Task Force. 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."Financial Advisor Pleads Guilty to Investment Fraud SchemeRead the Press Release
RENO, Nev. – A former financial advisor with Bank of America has pleaded guilty to fraud and tax evasion charges for defrauding six persons of over $2 million during 2010 and 2011, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Gary H. Lane, 60, of Reno, pleaded guilty on Tuesday, Sept. 3, 2013, before Chief U.S. District Judge Robert C. Jones to 12 counts of mail fraud and five counts of attempt to evade or defeat tax. Lane is scheduled to be sentenced on Dec. 16, 2013, at 9:30 a.m., and faces up to 20 years in prison for each mail fraud count and up to five years in prison on each tax count, as well as fines of up to $250,000 per count.
According to the indictment, Lane was employed as a financial advisor by Bank of America Investment Services, which later merged with Merrill Lynch, until March 2011. 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 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, the indictment alleges that Lane defrauded approximately six victims 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 is being 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.Turnberry Embezzler Sentenced to over Four Years in PrisonRead the Press Release
LAS VEGAS, Nev. – A man who conspired with a former controller to embezzle millions from the company that owned or developed the Residences at MGM, Town Square shopping center, Turnberry Place, Turnberry Towers, and the Stirling Club in Las Vegas, was sentenced today to 51 months in prison, three years of supervised release, and ordered to pay approximately $3.7 million in restitution, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Rocco Lazazzaro, 55, of Las Vegas, was sentenced by U.S. District Judge Gloria M. Navarro. Lazazzaro pleaded guilty in May to conspiracy to commit wire fraud. According to his guilty plea agreement, from about May 17, 2007, to about Jan. 12, 2012, Lazazzaro and Hope Ippoliti, 51, the former controller for Turnberry Associates, conspired to steal more than $3.7 million dollars from Turnberry and its affiliates.
“Through this embezzlement scheme, Mr. Lazazzaro and Ms. Ippoliti victimized not only Turnberry Associates in the amount of $5.6 million, but caused irreparable harm and financial damage to the many victims and business entities employed and supported by Turnberry Associates,” said United States Attorney Bogden. “It is truly sad that the greed and self-indulgent criminal conduct of Mr. Lazazzaro continues to result in harm to so many other innocent victims.”
Ippoliti created fund transfer requests containing false information that the funds were intended for business-related purposes when she and Lazazzaro actually intended to withdraw the funds for personal use. Ippoliti faxed or emailed the fund transfer requests from Nevada to Turnberry Associates in Florida to cause the transfer of funds into Bank of America accounts over which she had signatory authority. Ippoliti and Lazazzaro deposited and cashed checks and cashier’s checks drawn on Bank of America bank accounts belonging to Turnberry Associates and its affiliates.
The total losses to Turnberry Associates and its affiliates are a total of $5.6 million. According to Lazazzaro’s guilty plea agreement, he was directly involved in causing approximately $3.7 million of those losses. The sentencing memorandum filed by the government states that Lazazzaro used the stolen monies for gambling and drug use.
Lazarro has four prior felony convictions and numerous misdemeanor convictions, many of which involved violence or threats of violence against others through the use or threatened use of fire, knives, or blunt objects. In 1986, while on probation for a 1980 felony grand theft conviction, he was convicted of committing five robberies in addition to vicious assaults and was sentenced to 10 to 20 years in prison. He was discharged from parole one year before committing the Turnberry embezzlement crimes.
Ippoliti pleaded guilty in March to conspiracy to commit wire fraud resulting in total losses of $5.6 million dollars, and is scheduled to be sentenced on Sept. 19, 2013, at 9:00 a.m. before U.S. District Judge Gloria M. Navarro.
The case was jointly investigated by the FBI and the United States Secret Service and is being prosecuted by Assistant U.S. Attorney Christina M. Brown.
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. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Las Vegas Attorney Paul Wommer Sentenced to over Three Years in Prison for Structuring Bank Deposits and Tax CrimesRead the Press Release
LAS VEGAS, Nev. – Las Vegas attorney Paul Wommer was sentenced this morning by U.S. District Judge Gloria M. Navarro to 41 months in federal prison for making structured bank deposits to hide money from the IRS, evading income taxes, and filing a false tax return, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Wommer, 60, of Las Vegas, was found guilty in April following a bench trial. Wommer was also sentenced to three years of supervised release, and ordered to pay a $7,500 fine and forfeit any proceeds of his crimes. Judge Navarro also found that Wommer’s testimony at trial was not credible and increased his prison sentence for obstruction of justice. Wommer was permitted to self-report to federal prison by Nov. 20, 2013.
“Mr. Wommer is the second attorney in the last three months in Nevada to be convicted and sentenced to prison for trying to hide money from the IRS,” said U.S. Attorney Bogden. “If you do not pay taxes on your income and conceal the income from the IRS, the penalties are severe when you are caught.”
According to the court records and evidence introduced at trial, between June 30 and July 15, 2010, Wommer made or assisted in 15 structured deposits totaling $138,700 for the purpose of evading bank reporting requirements. These deposits were made as part of a pattern of illegal activity involving more than $100,000 during a 12-month time period. During that same time period, Wommer willfully attempted to evade federal income taxes in the amount of $13,020 by concealing and attempting to conceal his assets, by making false statements to the IRS, and by placing funds and property in the names of nominees.
The case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Andrew W. 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. 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 more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Former Loan Officer Pleads Guilty to Stealing $400,000 from Victims in Investment Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A former loan officer from Henderson, Nev., who convinced over 30 victims to give him money for a high yield investment scheme involving the foreign currency exchange market, has pleaded guilty to federal fraud and money laundering charges, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Kamalu Gonzales, 47, pleaded guilty on Monday, Aug. 12, 2013, before U.S. District Judge Gloria M. Navarro to two counts of mail fraud, six counts of wire fraud, and two counts of money laundering. Gonzales is scheduled to be sentenced on Nov. 14, 2013, and faces up to 30 years in prison and a $1 million fine on each of the fraud charges and up to 10 years in prison and a $250,000 fine on each of the money laundering charges.
According to the court records, from approximately 2007 to 2008, Gonzales told individuals that he was a successful investor and trader in the foreign currency exchange market. Gonzales recruited individuals to invest with him in the market, telling them that they could earn high rates of return on their investments in a short period of time. Some of the victims wired money to Gonzales, and others borrowed money from their retirement fund, line of credit, or refinanced their houses in order to invest with him.
During 2007, Gonzales worked as a loan officer for Meridias Capital in Henderson, Nev. Gonzales helped persons refinance their homes, and placed false information in the loan applications so the individuals could obtain refinancing and cash to which they would not have otherwise been entitled. Gonzales convinced these individuals to give him some of the cash they received from refinancing for his investment fraud scheme. None of the victims agreed to pay Gonzales any commissions or fees, or agreed that he could use their investments for personal or business expenses or to pay other investors.
In order to continue the scheme and to keep victims from discovering the crime, Gonzales lied to the victims repeatedly and told them their investments were doing well. As a result of the lies, some victims gave Gonzales more money to invest. Gonzales also made payments to some of the victims using monies he received from other victims.
Gonzales received approximately $1 million total from over 30 victims in 2007 and 2008. Gonzales did not invest the victims’ funds as promised and diverted approximately $410,000 for his own personal purposes.
Gonzales is free on a personal recognizance bond pending sentencing.
The case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorneys Kathryn C. Newman and Kimberly M. Frayn.
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. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Former High School Softball Coach Sentenced to over 23 Years in Prison for Child Pornography ConvictionRead the Press Release
LAS VEGAS, Nev. – A former softball coach at Silverado High School in Henderson, Nev., has been sentenced to 284 months in federal prison and lifetime supervised release for his convictions for having sexual relations with one of the female players and using his cellular telephone camera to photograph the sexual acts, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Albert Silva Hernandez, Jr., 44, of Las Vegas, was sentenced on Monday, Aug. 5, 2013, by U.S. District Judge James C. Mahan. Hernandez was convicted by a jury in April of eight counts of sexual exploitation of a minor.“Together with our investigative partners, we have been aggressively investigating and prosecuting persons who exploit minors for sexual purposes and use technology to further victimize these children,” said U.S. Attorney Bogden. “If you commit such crimes, you face very serious consequences and a lengthy prison sentence.”
According to the indictment and evidence introduced at trial, Hernandez, a softball coach for Silverado High School and for a competitive club team, had sexual relations with one of his 17-year-old players, and photographed the sexual acts with his cellular telephone camera and sent the images to the girl. Hernandez also had the girl photograph herself naked and send those images to him by her cellular telephone. The pornographic images were produced and the text messages were exchanged between Hernandez and the victim, on Dec. 25, 2011, Jan. 29, Feb. 1, and Feb. 2, 2012.
“As this sentence makes unmistakably clear, child sex predators will receive the justice they are due for their despicable actions,” said Michael Harris, Assistant Special Agent in Charge of Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in Las Vegas. “We will continue to aggressively target those who prey upon and sexually exploit our children. We owe it to the young victims in these cases, who will carry the emotional and physical scars of these crimes for the rest of their lives.”
The case was investigated by ICE-HSI and the Clark County School District Police. It was prosecuted by Assistant United States Attorneys Susan Cushman and Roger Yang.
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."
Carson City Man Arrested on Child Pornography ChargesRead the Press Release
RENO, Nev. – A Carson City, Nev. man has been arrested on child pornography charges for secretly videotaping female victims in the bathrooms of his residence, and is scheduled to appear before a federal magistrate judge this afternoon, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Marcus Gabriel Henderson, 33, was arrested by Special Agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) yesterday, July 31, 2013, at his residence in Carson City. Henderson is charged in a criminal complaint with production and attempted production of child pornography, and will have an initial court hearing at 3:00 p.m. today before U.S. Magistrate Judge Robert A. McQuaid, Jr. If convicted, Henderson faces 15 to 30 years in prison, and a $250,000 fine.According to the criminal complaint, ICE-HSI agents executed a federal search warrant at Henderson’s residence on Wednesday, July 31, 2013, in connection to an ongoing child pornography investigation. Inside a bathroom allegedly used by Henderson, the agents found a covert video recording device and digital media card hidden within an AC adaptor box. Examination of the media card revealed that it contained approximately 277 video clips that 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. The complaint alleges that the purpose of the videos was to create a sexual response for the viewer of the videos.
The case is being investigated by ICE-HSI and the Northern Nevada Internet Crimes Against Children Task Force, and is being 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 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."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.
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Jewelry Store Owner Pleads Guilty to Buying and Selling Stolen GoodsRead the Press Release
LAS VEGAS – A Las Vegas jewelry store owner pleaded guilty today to receiving and selling stolen goods totaling about $196,500, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Nabil Sakkab, 39, of Las Vegas, pleaded guilty before U.S. District Judge James C. Mahan to two counts of receipt and sale of stolen goods, and is scheduled to be sentenced on Oct. 28, 2013, at 10:30 a.m. Sakkab faces up to 10 years in prison and a $250,000 fine on each count.
“According to a December 2012 report prepared for Congress, organized retail crime exposes the United States to economic, public health, and domestic security dangers,” said U.S. Attorney Bogden. “Estimates of the losses to retailers range from $15 billion to $37 billion annually. Additionally, consumers end up paying for the losses in the form of higher prices on goods, and states lose the tax revenue that would otherwise be generated from the sale of these goods by legitimate retailers.”
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department Special Investigations Section, and was part of a federal and local law enforcement effort to combat organized retail theft. The case is being prosecuted by Assistant United States Attorney Christina M. Brown.
According to the plea agreement, from about Sept. 20, 2011, to Feb. 3, 2012, Sakkab knowingly purchased stolen jewelry from an individual at a Las Vegas jewelry store Sakkab previously co-owned. The goods included Rolex and Tag Heuer watches stolen in other states and transported to Las Vegas prior to Sakkab’s purchase. Sakkab resold the stolen jewelry at the store and privately to third parties for personal gain. The parties agreed that the loss to the victims of the thefts is $196,500.California Man Sentenced to 5½ Years in Prison for Nevada Mortgage Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A California man who orchestrated a double escrow mortgage fraud scheme involving eight houses in the Las Vegas, Nev. area, has been sentenced to 5½ years in federal prison, three years of supervised release, and ordered to pay over $3.5 million in restitution, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
George Anderson, 55, of Copperopolis, Calif., was sentenced on Thursday, July 25, 2013, by Senior U.S. District Judge Roger L. Hunt. Anderson was indicted in March 2011 and pleaded guilty in April 2013 to one count of conspiracy to commit wire fraud.
“During the mid- to late 2000’s, thousands of fraudulent residential mortgage transactions in Nevada caused financial hardships for many innocent homeowners and hundreds of millions of dollars of loss to financial institutions and investors,” said U.S. Attorney Bogden. “We made this type of fraud a priority and through the end of 2012, had prosecuted 213 persons, most of who were convicted and sent to prison.”
According to the plea agreement, in about 2005, Anderson solicited four straw buyers to buy seven houses in Henderson, Nev. and one house in Las Vegas, with the understanding that Anderson would control the houses and later re-sell them at a profit. Anderson solicited a co-defendant, Andrew Swan, 38, of Heyworth, Ill., to buy the houses from the straw buyers at inflated prices in exchange for Swan receiving a portion of the profit from each sale. Swan then recruited a relative to purchase several of the homes again at further inflated prices. False information was submitted to the lenders and to the escrow company in order to receive the loans and to cause disbursement of the loan proceeds to Swan’s company, Creative Capital Group, and Anderson’s company, Anderson Financial Group. Approximately $54,000 to $86,000 from the sale of each home was dispersed to Creative Capital Group; approximately $67,000 to $164,000 from the sale of each home was dispersed to Anderson Financial Group; and approximately $19,000 to $69,000 was dispersed to each original straw buyer. The majority of the mortgage payments for the homes were not paid and the homes went into foreclosure. At least 16 mortgage loans totaling approximately $6.5 million were obtained as part of the conspiracy to defraud, and the financial institutions suffered a loss of approximately $3.5 million.
The co-defendant Swan also pleaded guilty, and was sentenced in June to 30 months in prison and ordered to pay $3.5 million in restitution.
Anderson and Swan are currently released on bond and must self-report to federal prison by Oct. 25, 2013, and Aug. 16, 2013, respectively.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorneys Sarah E. Griswold and Brian Pugh.
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. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Man Pleads Guilty to Attempting to Destroy Las Vegas Children’s Autism Facility by ArsonRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man has pleaded guilty to maliciously attempting to destroy a local children’s autism learning facility by fire and explosive devices, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Samuel Powers, 24, pleaded guilty on Tuesday, July 23, 2013, before U.S. District Judge Gloria M. Navarro to one count of arson of property and one count of possession of unregistered firearms, specifically Molotov cocktails. Sentencing is scheduled for Nov. 1, 2013, at 10:30 a.m. Powers, who is in federal custody on the charges, faces five to 20 years in prison on the arson charge and not more than 10 years in prison on the firearms charge, as well as a fine of up to $250,000 on each count. The government and the defendant agreed to a binding recommendation of a sentence of 10 years in prison.
According to the plea agreement, on April 15, 2013, Powers knowingly and maliciously damaged a building which housed several commercial businesses, including Sport Social, an autism facility, located at 7055 Windy Street in Las Vegas. Powers forcibly entered Sport Social with three Molotov cocktails and a gasoline container, and poured gasoline and set multiple fires inside the business. The fires caused at least $50,000 in damage to the structure and its contents. Powers also possessed two more unignited Molotov cocktails inside his vehicle at the scene of the fire. When Powers set the fires, he knew or had cause to believe that persons were inside a neighboring business, thereby creating a substantial risk of death or serious bodily injury to those persons.
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.Two Women Sentenced for Nevada Medicaid Fraud SchemeRead the Press Release
RENO, Nev. – Two women were sentenced today for their guilty pleas to federal health care fraud charges after they defrauded the Nevada Medicaid program of approximately $1 million, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Cassandra Little, 49, of Reno, was sentenced to 33 months in prison, three years of supervised release, and ordered to pay $81,400 in restitution. Little pleaded guilty in March to 28 counts of health care fraud and 10 counts of money laundering.
Susan Hill, 66, of Las Vegas, was sentenced to 18 months in prison, three years of supervised release, and ordered to pay $81,400 in restitution. Hill pleaded guilty in March to one count of health care fraud and one count of money laundering.
Senior U.S. District Judge Howard D. McKibben in Reno sentenced both women, and allowed them to self-report to federal prison by Oct. 15, 2013.
“As this case demonstrates, health care fraud is a serious criminal offense with serious consequences that can land you in federal prison,” said U.S. Attorney Bogden. “The U.S. Department of Justice is committed to investigating and prosecuting persons who commit this type of crime.”
“Our attorneys and investigators work closely with our partners to find Medicaid violators and prosecute them to the fullest extent of the law for cheating the system,” said Nevada Attorney General Catherine Cortez Masto. “We hope today's prison sentence and combined restitution of approximately $81,000 sends a strong message to others who may consider stealing from taxpayers. We will not tolerate those that take advantage of the system."
According to the court records, from about January 2007 to January 2011, Hill and Little defrauded the Nevada Medicaid program of approximately $1 million by fraudulently billing for expensive therapy-related services such as psychosocial rehabilitation and basic skills training which were never provided. To execute their scheme, Hill and Little formed a company, the Hill/Little LLC, and entered into a contract with Nevada Medicaid to provide health care services to children who were eligible for Medicaid. Hill was the president of the LLC. Little, a PhD and licensed social worker, was to provide the clinical services to the children. Hill and Little then created a program to obtain aid for the parents of the children who were eligible to receive the Medicaid funding; however, the program was not authorized or allowed under their Medicaid contract with the state. Hill recruited parents and guardians to provide services to their own children following minimal training provided by Hill/Little LLC. The services were nothing more than what parents normally do without reimbursement. Hill/Little LLC then billed Medicaid approximately $8,000 per month for each child, using a billing code which was only authorized for services that could have been provided by Little, the licensed social worker. Hill/Little kept $5,000 per month for each child and paid each parent/guardian approximately $3,000. The parents/guardians reported that their children received little or no services from Hill or Little, and none of the services billed by Hill/Little from January 2007 to January 2011 were ever properly provided or authorized under Medicaid rules. Using this scheme, Hill and Little unlawfully received approximately $1 million from Medicaid for services they did not provide.
The case was investigated by the State of Nevada Medicaid Fraud Control Unit, the State of Nevada Attorney General’s Office, and IRS Criminal Investigation, and is being prosecuted by Assistant U.S. Attorney Ronald C. Rachow and Senior Deputy Attorney General Andrew Schulke, designated as a Special Assistant U.S. Attorney, with assistance from the Nevada Attorney General’s Office.
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.
If you suspect that Medicaid Fraud may be occurring, complete and submit this form http://ag.nv.gov/uploadedFiles/agnvgov/Content/Complaints/Medicaid_Complaint_Form_Print_Handwrite.pdf,
and mail it to the Office of the Attorney General, Medicaid Fraud Control Unit (MFCU), 100 North Carson Street, Carson City, NV 89701. You can also call the Nevada MFCU at 775-684-1191, 702- 486-3187 or the toll free number at 1-800-266-8688.