District of Nevada

-Nevada Highway Patrol Found Methamphetamine and Heroin in Truck During Traffic Stop-

            RENO, Nev. – A Washington State man appeared before a federal magistrate judge this afternoon to answer federal drug distribution charges after a Nevada Highway Patrol Officer found 26 pounds of methamphetamine and six pounds of heroin in the tractor-trailer he was driving on U.S. Highway 6 in White Pine County, Nev., announced Daniel G. Bogden, United States Attorney for the District of Nevada. 

            Victor H. Orozco, 38, of Grandview, Wash., is charged in a two-count federal indictment dated May 1, 2013, with possession with intent to distribute methamphetamine and possession with intent to distribute heroin.  He pleaded not guilty today before U.S. Magistrate Judge Valerie P. Cooke and was detained pending trial. If convicted on either count, he faces at least 10 years and a maximum of life in prison, and a $10 million fine.  

            Orozco, who was driving a tractor trailer containing watermelons, was pulled over by a Nevada Highway Patrol Officer on April 27, 2013, pursuant to a commercial vehicle inspection.  Orozco consented to a search of the tractor trailer, and the Highway Patrol Officer discovered the methamphetamine and heroin wrapped in plastic under the sleeping compartment of the tractor in a large, black duffel bag. 

This case is being prosecuted by Assistant U.S. Attorney James E. Keller, in coordination with White Pine County District Attorney Kelly Brown, and investigated by the Nevada Department of Public Safety, the Nevada Department of Investigations, and the United States Drug Enforcement Administration.

            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, Nev. – Federal charges were unsealed today against six individuals, including three Californians, for unlawfully operating a marijuana dispensary in Las Vegas and unlawfully distributing marijuana, announced Daniel G. Bogden, United States Attorney for the District of Nevada. 

Randy Ruley Phillips, 42, of Las Vegas, Nev.; Jaclyn Mikie Sumarnkant, aka “Turtle,” 27, of Alhambra, Calif.; Quy Nguyen, aka “Gabe”, 28, of San Diego, Calif.; Randy Allen Kim, aka “Kevin,” 24, of Las Vegas, Nev.; Andrew Yim, 24, of Las Vegas, Nev.; and Michael Minh Quang Dinh, 37, of Garden Grove, Calif., are charged in an indictment dated April 23, 1013.  The indictment was unsealed today at the initial court hearing for defendants Randy Phillips and Michael Dinh.  Defendants Phillips, Nguyen, Kim, Yim, and Dinh have already made initial appearances in court and were released on personal recognizance bonds pending trial.  

Each defendant is charged with conspiracy to distribute marijuana, conspiracy to distribute THC distribution of marijuana, conspiracy to possess with marijuana with the intent to distribute, possession of marijuana with the intent to distribute, conspiracy to possess THC with the intent to distribute, possession of THC with the intent to distribute, conspiracy to maintain drug-involved premises, and maintaining drug-involved premises.  Defendants Sumarnkant, Nguyen, Kim, and Yim face additional distribution of marijuana charges.  

According to the indictment, beginning on about July 27, 2011, and continuing to Sept. 25, 2012, the defendants maintained the Alternative Solutions Marijuana Dispensary located at 6985 W. Sahara Avenue, Suite 110, in Las Vegas, Nev. for the purpose of distributing marijuana and THC. Marijuana dispensaries are not recognized under Nevada law, and it is illegal to sell marijuana in Nevada.  

 If convicted, they face up to twenty years in prison and fines of up to $1,000,000.

The investigation is being conducted as part of the Organized Crime Drug Enforcement Task Force (OCDETF) and the Nevada High Intensity Drug Trafficking Area (HIDTA) program.  The case is being prosecuted by Assistant U.S. Attorney Amber M. Craig.

The public is reminded that an indictment contains only charges and is not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

LAS VEGAS - - Following a 13-day jury trial, a home builder was convicted by a jury today of embezzlement crimes for converting, misappropriating and stealing from a federal housing grant program during 2004, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

William Aubrey, 69, of Mesquite, Nevada, was convicted of two counts of conversion of money and funds from a tribal organization, and is scheduled to be sentenced on Aug. 7, 2013, by U.S. District Judge Kent J. Dawson.  Aubrey faces up to five years in prison and a $250,000 fine on each count.

“The Navajo Nation counted on the monies stolen by the defendant to provide housing for its members,” said U.S. Attorney Bogden. “This defendant stole from the tribe and from the American people, and used the monies to finance an extravagant lifestyle.”

            According to the court records and the evidence introduced at trial, 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.  The Navajo Housing Authority was an official Navajo Nation entity authorized to receive and administer federal housing funds which were awarded annually by the U.S. Department of Housing and Urban Development (HUD).  The Navajo Nation receives an average of $90 million from HUD annually in grant funds.  

A Navajo Nation non-profit corporation, the Fort Defiance Housing Corporation, was responsible for the development of safe and affordable housing on the Navajo Nation lands.  Fort Defiance was also a sub-grantee for the HUD grant funds. 

Beginning in 1996 and continuing to 2004, Fort Defiance contracted with a private housing development company, Lodgebuilder, to develop the housing projects.  Lodgebuilder is owned and operated by William Aubrey.  Lodgebuilder and Aubrey managed several housing development projects for Fort Defiance from approximately 2000 to 2004.  HUD funds, which were supposed to be used to pay vendors, subcontractors and expenses at the housing developments, were converted by Aubrey for his own personal use and used for gambling, 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.

LAS VEGAS, Nev. – Following a three-day jury trial, a man who was employed as the head softball coach at Silverado High School in Henderson, Nev., has been convicted of multiple counts of child sex exploitation for causing the production of child pornography and exchanging sexually explicit text messages and photographs with a minor girl, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
           
            Albert Silva Hernandez, Jr., 44, of Las Vegas, was convicted on Wednesday, April 24, 2013, of eight counts of sexual exploitation of a minor.  He faces 15 years minimum and 30 years maximum in prison, and a fine of up to $250,000 on each count.  Hernandez is in custody and is scheduled to be sentenced on Aug. 5, 2013, at 10:00 a.m. before U.S. District Judge James C. Mahan.

            According to the indictment and the 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 December 25, 2011, January 29, February 1, and February 2, 2012.

The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Clark County School District Police.  It is being 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.

LAS VEGAS, Nev. – Las Vegas attorney Paul Wommer was found guilty this afternoon of tax and money structuring charges following a three-day bench trial before U.S. District Judge Gloria M. Navarro, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

Wommer, 60, of Las Vegas, was convicted of three counts of structuring financial transactions, one count of tax evasion, and one count of making and subscribing a false tax return, statement or other document. 

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. 

Wommer is scheduled to be sentenced on August 1, 2013.   He faces up to 10 years in prison and a $500,000 fine on each structuring count, up to five years in prison and a $250,0000 fine on the tax evasion count, and up to three years in prison and a $250,000 fine on the false return count, and

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.

LAS VEGAS, Nev. – The owners of several liquor stores on the Las Vegas Strip have been charged with federal felony tax crimes for failing to report approximately $4 million in income from their stores on their federal individual and corporate tax returns, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

Ramzi Suliman and Jeffrey Nowak, are charged in a criminal indictment dated April 10, 2013, with one count of conspiracy to defraud the United States, three counts of assisting in filing false corporate tax returns, and four counts of attempting to evade and defeat tax. They have been summoned to appear for an initial hearing and arraignment on April 18, 2013, at 3:00 p.m. before U.S. Magistrate Judge Carl W. Hoffman.  If convicted, they face up to five years in prison on each of the conspiracy and tax evasion counts and up to three years in prison on each false tax return count, and fines of up to $250,000 on each count.

According to the indictment, from about 2006 to present, Suliman and Nowak owned and operated three liquor stores in Las Vegas, Super Liquor South Strip at 3999 S. Las Vegas Boulevard, Super Liquor Mid Strip at 2301 S. Las Vegas Boulevard, and Super Liquor McCarran Village at 384 E. Tropicana Avenue. Suliman and Nowak allegedly diverted receipts from the stores to their own use by presenting false books and records to the corporate accountant for use in preparing corporate and individual tax returns for the businesses and the defendants. 

From about 2006 to 2009, Suliman and Nowak allegedly maintained multiple sets of accounting records for the Super Liquor South Strip store, one which was accurate, and one which was false, and another which compared the two. Suliman and Nowak allegedly skimmed some of the cash they received from the Super Liquor South Strip store and agreed not to report it the IRS. Suliman and Nowak omitted the skimmed cash from the accounting records that they provided to their accountant for the preparation of their tax returns.  Nowak was primarily responsible for keeping the accounting records, and Suliman was aware of and consented to the skim and occasionally made entries in the records.  In total, Suliman and Nowak allegedly failed to report gross receipts and sales from the Super Liquor South Strip store of approximately $4 million for the tax years 2006 through 2009. 

The case is being investigated by IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney 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.

RENO, Nev. – A woman who fraudulently obtained a $228,000 home equity loan in her father and mother-in-law’s names by forging their signature and the signatures of others, has been sentenced to 81 months in prison and ordered to pay $228,000 in restitution for her guilty pleas to identity theft and money laundering charges, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

            Tandy Anne Kertanis, 33, of Reno, Nev., was sentenced on Thursday, April 11, 2013, by U.S. District Judge Larry R. Hicks.  Kertanis pleaded guilty on Aug. 20, 2012, to one count of money laundering and one count of aggravated identity theft. 

            According to the court records, on about June 19, 2007, Kertanis called Wells Fargo Bank and identified herself as Joann L. Kertanis and applied for a home equity loan in the names of Robert P. Kertanis and Joann L. Kertanis, her father and mother-in-law.  Neither Robert nor Joann Kertanis was aware of the application, nor did they authorize Tandy Kertanis to apply for the loan. In late June 2007, Tandy Kertanis returned a package of loan documents to Wells Fargo. The documents contained the forged signatures of Joann L. Kertanis and/or Robert P. Kertanis, as well as forged signatures of a notary public and the defendant’s mother.  The defendant submitted updated loan request documents on July 3, 2007, again containing the forged signatures of her father and mother-in-law, as well as the forged signature of the notary public, her mother, and a Reno attorney with whom she had consulted on a prior occasion. On about July 6, 2007, Wells Fargo Bank approved the home equity loan and electronically deposited $228,000 into the defendant’s U.S. Bank account in Reno.

            On July 10, 2007, Tandy Kertanis allegedly transferred $180,000 from her U.S. Bank checking account into a money market account in the name of her husband at Linsco/Private Ledger in Reno. On July 13, 2007, Kertanis allegedly purchased a Toyota truck at Reno Toyota for $33,534, using the home equity loan monies she unlawfully obtained from Wells Fargo.  

            On Feb. 22, 2012, while Kertanis was awaiting trial in this case, her attorney filed a motion to continue the trial alleging that Kertanis’ young child was suffering from several serious health problems.  Attached to the motion were letters from four medical specialists in Reno and California.  These medical specialists were contacted and stated that the letters were false and that the young child was not suffering from any serious disease.

Kertanis is free on a personal recognizance bond and must self-report to federal prison on June 10, 2013. 

The case was investigated by the FBI and IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Brian L. Sullivan.

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, Nev. – Following a six-day jury trial, Nicholas Lindsey, 40, of, Billings, Montana, was convicted today of nine counts of wire fraud and one count of aggravated identity theft for his role in a mortgage fraud scheme, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

“Many innocent homeowners in Nevada have suffered because of this type of crime involving fraudulent residential mortgage transactions,” said U.S. Attorney Bogden.  “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. 

Lindsey was ordered detained pending sentencing.  He is scheduled to be sentenced by Senior U.S. District Judge Lloyd D. George on July 22, 2013, at 9:00 a.m.  He faces up to 30 years in prison on each fraud count, as well as two years in prison on the aggravated identity theft count, which must be served consecutively to any prison term ordered on the fraud counts.  He also faces fines of up to $1 million on each count.            

The case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Christina Brown and Department of Justice Trial Attorney Brian Young.

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.

LAS VEGAS, Nev. – A Las Vegas air duct company and its owner/president were sentenced today to fines and probation for making false statements to federal investigators and for manufacturing and selling thousands of gallons of misbranded and diluted pesticide between 2005 and 2010,announced Daniel G. Bogden, United States Attorney for the District of Nevada.  A company engineer was also sentenced for his role in the offense.

“The defendants knowingly produced and sold a misbranded pesticide, misleading their customers and potentially endangering the public,” said U.S. Attorney Bogden. “We are committed to the prosecution of this type of federal crime and the significant risk it poses to human health.”

DPL Enterprises Inc. (dba Air Care Indoor Quality Specialists), located at 3868 East Post Road, was sentenced to two years of probation and ordered to pay an $80,000 fine.  The company must also establish within 30 days a plan to assure that it is operating in full compliance of all environmental and occupational safety regulations.  It pleaded guilty in December 2012 to one felony count of making a materially false statement and two misdemeanor counts of misbranding of a pesticide. 

Richard Papaleo, 75, of Las Vegas, Nev., the company’s president and owner, was sentenced to two years of probation and ordered to pay a $15,000 fine.  Papaleo pleaded guilty in December to one felony count of making a materially false statement and two misdemeanor counts of misbranding of a pesticide. 

Michael Stanovich, 67, of Henderson, Nev., an engineer who worked at the company since 1991, was sentenced to one year of probation.   Stanovich pleaded guilty in December 2012 to two misdemeanor counts of misbranding of a pesticide.

According to the court records, Air Care was in the business of manufacturing and selling air duct cleaning equipment, filters and various chemical compounds, and it also ran its own air duct cleaning and repair operation. Air Care purchased and sold to its customers a disinfectant pesticide known as Sporicidin. Air Care diluted it with 10 times the amount of water, and sold the fake Sporicidin with a forged label that claimed that it could kill various organisms, including HIV, Avian Flu, Salmonella, Staph and MRSA.  Neither the diluted pesticide nor the label was approved by the EPA as required.  Air Care and Papaleo had been warned by the maker of Sporicidin as far back as 1998 that the company must obtain EPA approval for its label and that misbranding was “illegal.”  Air Care admitted to selling approximately 6,312 gallons of the misbranded and diluted pesticide between 2005 and 2010.

"When people purchase a product, they expect it to be genuine and that it will do what it's supposed to do," said Jay M. Green, Special Agent in Charge of EPA's criminal program in Nevada.  "Not only did the defendants dilute and repackage a legitimate product, the product in this case was a disinfectant often used in hospitals and posed a significant risk to human health. Anyone who knowingly misuses a pesticide is committing a crime and like any other violator, he or she will be prosecuted."

The government’s investigation was initiated after EPA received complaints from the maker of Sporicidin.  EPA made an undercover purchase of the fake Sporicidin sold by Air Care, and EPA’s National Enforcement Investigations Center (NEIC) laboratory in Colorado found that it was diluted with water even though the fake label made by Air Care claimed it contained the original strength of the active ingredient.  When federal agents from the FBI and from EPA’s Criminal Investigations Division questioned Papaleo about whether his company was selling the diluted chemical, he denied it.  

EPA regulates pesticides under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA), which makes it a crime manufacture a pesticide in the United States without first being registered with the EPA and obtaining from the EPA a manufacturer establishment number.  Approved labels must be affixed to any container of the pesticide that is distributed or sold.  A pesticide is deemed “misbranded” if among other things the labeling is false or misleading.  Misbranding pesticides is a misdemeanor offense.

The case was investigated by EPA’s Criminal Investigation Division with assistance from the FBI.  The case was prosecuted by Assistant U.S. Attorney Kathryn C. Newman and Richard A. Udell, a Senior Trial Attorney with the Environmental Crimes Section of the U.S. Department of Justice.

 LAS VEGAS - - A man who was convicted in December 2012 of unlawfully possessing  firearms because he had been  previously convicted of a domestic violence offense, was sentenced today to 18 months in prison and three years of supervised release, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

            Isaiah Aljavar-Martell Perkins, 21, of North Las Vegas, was sentenced by Senior U.S. District Judge Lloyd D. George.  Perkins was convicted by a jury on Dec. 13, 2012, of two counts of prohibited person in possession of a firearm.

            “Under federal law, you are prohibited from possessing a firearm if you are a felon or a fugitive, if you use or are addicted to controlled substances, if you have been adjudicated as a mental defective, if you are unlawfully in the United States, if you have been dishonorably discharged from the military, if you are subject to a domestic violence restraining order, or if you have been convicted of a misdemeanor domestic violence offense,” said U.S. Attorney Bogden.  “These are all felony crimes, and we are committed to prosecuting persons who violate these laws.”

            According to the court records and evidence introduced at trial, on Jan. 29, 2012, Perkins was pulled over by a Las Vegas Metropolitan Police Department (Metro) officer for a traffic violation and a .40 caliber handgun was found under the driver’s seat where Perkins had been sitting.  On July 11, 2012, Perkins was found to be in possession of another .40 caliber handgun that was discovered in the glove box of a vehicle he was driving. Perkins had been convicted of misdemeanor domestic battery in the North Las Vegas Municipal Court on March 3, 2011, and was prohibited under federal law from possessing the firearms. 

The case was investigated by the Las Vegas Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and prosecuted by Assistant U.S. Attorneys Phillip N. Smith, Jr. and Cristina Silva.

The case was brought under DOJ’s Project Safe Neighborhoods (PSN) initiative, a nationwide commitment to reduce gun and gang crime in America.

 RENO, Nev. – A man who sold an undercover detective stolen firearms, stolen explosives, and a stolen police officer’s badge, in exchange for methamphetamine and cash, has been sentenced to just over 16 years in federal prison, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

            Michael Alan Doiel, 44, currently in federal custody, but most recently a resident of Stagecoach, Nev., was sentenced by U.S. District Judge Howard D. McKibben on Wednesday, April 3, 2013, to 195 months in prison and five years of supervised release.  Doiel pleaded guilty on Dec. 20, 2012, to possession with intent to distribute 50 grams or more of methamphetamine and possession of stolen explosives that had been transported in interstate commerce. 

“As this sentence indicates, if you get caught selling stolen explosives and firearms, you face prosecution by the federal government and a very lengthy sentence of imprisonment with no parole,” said U.S. Attorney Bogden. “We will continue working proactively and aggressively with our local, state and federal law enforcement partners, to capture dangerous individuals who are committing this type of crime and in preventing guns and explosives from landing in the hands of criminals or persons with mental health problems.  I would like to thank the Reno Regional Street Enforcement Team and the Northern Nevada Project Safe Neighborhoods Task Force for their efforts in keeping our community safe.”

            According to court records, on Dec. 16, 2011, local police officers assigned to the Regional Street Enforcement Team (SET), a collaborative law enforcement unit comprised of officers from the Reno Police Department, Sparks Police Department, Washoe County Sheriff’s Office, and the University of Nevada Police Department, received information that Michael Doiel was attempting to sell stolen weapons and explosives material in exchange for methamphetamine and cash.  On that date, an undercover detective contacted Doiel and spoke to him about purchasing weapons and explosives. That afternoon, Doiel met the undercover detective at a Reno location and sold the detective four stolen firearms, including two handguns and two semi-automatic rifles, a package of stolen C4 explosive and a stolen police officer’s badge, in exchange for three ounces of methamphetamine and $1,500.  Doiel was taken into custody immediately after the transaction by other law enforcement officers who were monitoring the scene.          

            Doiel has three prior felony convictions, including possession of a controlled substance, attempted possession of stolen property and grand larceny.

The case was prosecuted by Assistant United States Attorney William R. Reed and investigated by the Reno Regional Street Enforcement Team. Additionally, the case was screened through the Northern 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.

LAS VEGAS, Nev. – Las Vegas bankruptcy attorney Randolph H. Goldberg pleaded guilty today to willful tax evasion for filing tax returns that significantly understated his taxable  income and for attempting to hide the income through the use of nominee bank accounts, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

Goldberg pleaded guilty before U.S. District Judge Gloria Navarro to one count of attempt to evade or defeat tax for the tax year 2008, and is scheduled to be sentenced on May 23, 2013, at 8:30 a.m.   

“Paying income tax is a solemn obligation of citizenship,” said U.S. Attorney Bogden.  “It is never a good idea to try to hide your income from the IRS, or falsify your tax returns. You will most likely be caught, convicted and sent to prison.”

“Those who are well versed in the law should profoundly know they are not above the law,” said Paul Camacho, Special Agent in Charge of IRS Criminal Investigation for Nevada.

According to the plea agreement, during 2008, Goldberg was a licensed attorney in Nevada and practiced in the area of bankruptcy law.  Goldberg’s law firm, Randolph Goldberg, Esq., was organized and incorporated under Subchapter S of the IRS Code, which made any income generated by the firm taxable individually to Goldberg.  In 2009, Goldberg willfully caused the filing of false and fraudulent federal tax returns for himself and the law firm, knowing that the returns contained false and fraudulent information and understated his true income in calendar year 2008. During 2008 and 2009, Goldberg also attempted to conceal the true income of his law firm by causing proceeds generated by the firm to be deposited directly into his personal bank account and to be deposited into a bank account held by a nominee corporation, separate from his law firm practice. 

Goldberg was originally charged in September 2012 with four counts of tax evasion, in addition to five counts of structuring financial transactions. The government will move to dismiss the other charges at sentencing. Under federal sentencing rules, the tax loss in the counts originally charged will be considered at sentencing. 

Goldberg faces up to five years in prison and a fine of up to $250,000. As part of his plea agreement, Goldberg will voluntarily suspend his license to practice law in Nevada for at least two years and pay full restitution to the IRS for all tax losses resulting from his evasion.

The case is being investigated by IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorneys Christina M. Brown and Steven W. Myhre.

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, Nev. – A member of an anti-government movement known as the “Sovereign Movement,” was sentenced today to 98 months in prison followed by three years of supervised release, and ordered to forfeit $1.29 million in assets and pay $95,782 in restitution for his conviction on conspiracy and money laundering crimes, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

            Shawn Rice, 50, of Seligman, Ariz., was sentenced by U.S. District Judge James C. Mahan.  Rice was convicted by a jury in July 2012 of one count of conspiracy to commit money laundering, 13 counts of money laundering, and four counts of failure to appear. 

            “Persons who commit financial crimes victimize organizations, government and the public,” said U.S. Attorney Bogden.  “Our office and our federal partners will work jointly with local and state law enforcement to ensure that these persons are caught and prosecuted.”

“The FBI deserves a lot of credit for bringing this case to fruition,” said Paul Camacho, Special Agent in Charge of IRS Criminal Investigation for Nevada.  “There was an element of greed to Mr. Rice’s crimes. As with most cases we see, it is greed that gets people in trouble.”

According to the evidence introduced at trial, from about March 2008 to March 2009, Rice and co-defendant Samuel Davis, 57, of Council, Idaho, laundered approximately $1.3 million of monies that they thought were from the theft and forgery of stolen official bank checks.  Rice and Davis laundered the monies through a nominee trust account controlled by Davis and through an account of a purported religious organization controlled by Rice.  Davis and Rice took approximately $74,000 and $22,000, respectively, in fees for their money laundering services. 

Rice and Davis were originally charged in March 2009.  Rice failed to make required court appearances in the case on March 8 and March 9, 2010, and was a fugitive for almost two years before he was re-arrested in December 2011.

Davis pleaded guilty and was sentenced in October 2011 to 57 months in prison.  Davis failed to self-report to federal prison, and was arrested in August 2012 in Stanley, South Dakota.  Davis was charged and convicted of violating his conditions of release and failing to self-surrender, and sentenced to an additional eight months in prison, consecutive to the 57 months imposed in October 2011. 

Davis and Rice are heavily involved in the “Sovereign Movement,” an extreme anti-government organization whose members attempt to disrupt and overthrow government and other forms of authority by using “paper terrorism” tactics, intimidation and harassment, and violence.  Members believe they do not have to pay taxes and believe the federal government deceived Americans into obtaining social security cards, driver’s licenses, car registrations, and wedding licenses, etc., and that if these contracts are revoked; persons are “sovereign citizens.” Members of the sovereign movement also believe that U.S. currency is invalid.  They widely use fictitious financial instruments such as fraudulent money orders, personal checks, and sight drafts, and participate in “redemption” schemes where the fictitious financial instruments are used to pay creditors.  Davis is a national leader of the movement, traveling nationwide to teach different theories and ideologies of the movement.  Rice allegedly claims that he is a lawyer and Rabbi, and uses his law school education and businesses to promote his sovereign ideas and to gain credibility in the community. 

            The case was investigated by the FBI-led Nevada Joint Terrorism Task Force, which also includes ATF, Henderson Police Department, IRS Criminal Investigation, Las Vegas Metropolitan Police Department, Nevada Department of Public Safety, North Las Vegas Police Department, and other federal, state and local law enforcement agencies in Nevada, Council, Idaho, and Flagstaff and Seligman, Arizona.

            The case is being prosecuted by Assistant U.S. Attorneys J. Gregory Damm and Nicholas D. Dickinson.

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, Nev. – A retired Henderson fireman convicted by a jury in October of five counts of willful tax evasion and one count of filing a false and fictitious tax return, has been sentenced to 21 months in prison, three years of supervised release, and ordered to pay the IRS $177,310 in restitution, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

            Dwight C. Jackson, 53, of Henderson, was sentenced on March 18, 2013, by Senior U.S. District Judge Philip M. Pro.  Jackson is released on a personal recognizance bond and must report to federal prison by July 24, 2013. 

            “If you knowingly cheat on your taxes, you will likely be convicted of a felony offense and will go to prison,” said U.S. Attorney Bogden.  “Cheating on your taxes is never a smart option - no matter who you are, your income level, your employer, your profession or your place of business.”

            From 2004 through 2008, Jackson was employed as a fireman with the City of Henderson and earned over $113,000 each year.  The approximate federal income tax he owed for those years was between $22,000 and $29,000.  Jackson willfully attempted to evade the federal taxes he owed by substantially understating his wages on his individual tax return, falsely claiming the earned income tax credit, untimely filing his returns for 2004 to 2006, submitting false W-4 forms with his employer claiming he was exempt from federal tax withholdings, and concealing his actual income from the IRS. For the year 2009, Jackson knowingly presented a false income tax return which contained a “corrected” W-2 form stating that he earned no wages in 2009 when he truth, he had earned $247,492 that year from the City of Henderson. 

According to the evidence presented by the government at trial, Jackson carried out his scheme with the help of a southern California man, James Mattatall, whom he met at a sovereign citizen’s meeting in Las Vegas and whom prepared Jackson’s tax returns.  Sovereign citizens take the position that they are answerable only to common law and are not subject to any statutes or proceedings at the federal, state or municipal levels.  Sovereign citizens do not recognize U.S. currency and believe most forms of taxation are illegitimate.

“For all of us in public service, we are profoundly aware that our salaries come from taxes,” said Paul Camacho, Special Agent in Charge of IRS Criminal Investigation in Nevada.   “It would be insulting to all the hard working Americans who paid these taxes for any of us to willfully evade paying our fair share.  This sentence is a strong message to anyone who chooses satisfying greed over duty.”  

The case was investigated by IRS Criminal Investigation 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.

RENO, Nev. – Two women have pleaded guilty to federal health care fraud and money laundering charges for defrauding the Nevada Medicaid program of approximately $1 million, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

Susan Hill, 65, of Las Vegas, and Cassandra Little, 48, of Reno, pleaded guilty on Wednesday, March 6, 2013, before U.S. District Judge Howard D. McKibben in Reno. Hill pleaded guilty to one count of health care fraud and one count of money laundering. Little pleaded guilty to 28 counts of health care fraud and 10 counts of money laundering.

“The U.S. Attorney’s Office and U.S. Department of Justice will vigorously prosecute persons who cheat and steal from federally-funded programs,” said U.S. Attorney Bogden. “Everyone suffers when programs designed to help persons in need are defrauded.”

“The acceptance of guilt by Ms. Hill and Ms. Little is the first step prior to them facing sentencing for these crimes,” said Nevada Attorney General Catherine Cortez Masto. “This office will make a strong argument at sentencing to ensure that justice is served. The fraud perpetrated by both Ms. Hill and by Ms. Little spanned a number of years and involved Medicaid monies being paid out for services not provided.”

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 $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 no services from Hill or Little, and none of the services billed by Hill/Little from January 2007 to January 2011 were ever provided. Using this scheme, Hill and Little unlawfully received approximately $1 million from Medicaid for services they did not provide.

Hill and Little face up to 10 years in prison and a $250,000 fine on the health care fraud charges and up to 20 years in prison and a $500,000 fine on the money laundering charges. They are scheduled to be sentenced on July 23, 2013, beginning at 9:30 a.m. in Reno.

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.

LAS VEGAS, Nev. – A man who owned and operated two now-defunct mortgage industry businesses in the Las Vegas area, his wife, and an escrow officer, were indicted by a federal grand jury today on conspiracy and bank fraud charges in relation to an $83 million mortgage fraud scheme, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

“We continue to work with our law enforcement partners on the investigation and prosecution of mortgage fraud in Nevada,” said U.S. Attorney Bogden. “Since the inception of our mortgage fraud program in the spring of 2008 and through the end of 2012, about 213 persons have been charged with federal mortgage fraud crimes in Nevada. Most of those individuals were convicted and are in prison.”

Derrick Phelps, 44, former owner of Investors Realty and Enterprise Mortgage Services in Henderson, and his wife, Cynthia Phelps, 34, both of Katy, Texas, and Linda Mack, 49, of North Las Vegas, are charged with one count of conspiracy to commit bank fraud, mail fraud and wire fraud and seven counts of bank fraud. They are scheduled to make an initial appearance before U.S. Magistrate Judge Foley on Friday, March 22, 2013, at 3:00 p.m. to answer the charges. If convicted, they face up to 30 years in prison for each count and fines of up to $1,000,000 per count.

According to the indictment, from about January 2003 to November 2006, the defendants devised a scheme to defraud federally insured financial institutions through the use of straw buyers, inflated housing values and false mortgage applications. The defendants solicited straw buyers with good credit ratings to purchase homes in the Las Vegas area. The defendants made offers to purchase the homes above the sellers’ asking prices. In some instances, the defendants caused straw buyers to purchase multiple houses at or about the same time, so that the purchases would not show up on their credit report and the lenders would not be aware of the other purchases. The defendants then caused false information to be placed in the straw buyer’s mortgage loan application and other documentation concerning the buyer’s income and intent to occupy the home. Once the loans were approved, the defendants caused the sellers to agree that part of the excess funds be redirected to the buyers under the pretense of making upgrades and repairs to the properties. The defendants intentionally concealed from the financial institutions the fact that they were receiving part of the loan disbursements for their own use and benefit. The defendants defaulted on the mortgage loans which caused the properties to go into foreclosure. Using this scheme, the defendants purchased approximately 233 properties and caused losses to the financial institutions greater than $30 million.

The case is being investigated by the United States Postal Inspection Service, and is being prosecuted by Assistant U.S. Attorneys Sarah E. Griswold and Brian 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. 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.

An indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

LAS VEGAS, Nev. – A former mail sorter for the U.S. Postal Service in Las Vegas was sentenced today to two years in federal prison after he was caught stealing items from the mail, including credit and debit card information, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

Jerome Harvey, 34, of Las Vegas, who pleaded guilty in November 2012, to one count of aggravated identity theft, was sentenced by Senior U.S. District Judge Kent J. Dawson to a mandatory two year prison term, one year of supervised release, and ordered to pay $5,951 in restitution.

According to the plea agreement, between May and July 2011, Harvey worked as a casual employee sorting mail for the U.S. Postal Service in Las Vegas. In that capacity, he stole items from the mail, including credit and debit cards and personal identification numbers. Harvey stole the information of 12 individuals, and used it to gain access to their financial accounts and to obtain other things of value. The total amount of actual loss associated with the thefts was $5,951.

Harvey is free on a personal recognizance bond, and was permitted to self-report to federal prison by June 7, 2013.

The case was investigated by the United States Postal Inspection Service, and is being prosecuted by Assistant U.S. Attorney Christina M. Brown.

This case was handled in connection with the President's Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.

LAS VEGAS, Nev. – A man who fraudulently enticed persons to give him almost $2 million for the development of a local commercial real estate project that never materialized, was sentenced today to 21 months in federal prison and ordered to pay $1.8 million in restitution, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

Jean Marc Eljwaidi, aka Jean Marc Joveidi, 44, of Las Vegas, was sentenced by U.S. District Judge James C. Mahan. Eljwaidi pleaded guilty in November to one count of wire fraud.

From approximately November 2008 to June 2009, Eljwaidi obtained funds from investors for the development of a commercial real estate project at Interstate 215 and Russell Road in Las Vegas. In November 2008, Eljwaidi knew that the project could not be completed, but nevertheless enticed persons to continue to invest in the project. Ejwaidi provided the victim investors with promissory notes stating that he would use their investments to develop the project and that he would return their investments within a few months with an approximately 25 to 75 percent profit. In actuality, Eljwaidi knew that he would use the funds to pay his personal expenses and to maintain his affluent lifestyle, and to pay extension fees to keep the land from foreclosure. When the time came to pay the victim investors, Eljwaidi delayed repayment by soliciting more money from the investors or by repaying them with nominal amounts, or by avoiding them. As a result, the victim investors were never repaid or repaid nominal sums. The loss to the victim investors was approximately $1.8 million.

Eljwaidi was permitted to self-report to federal prison by June 3, 2013.

The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Roger Yang.

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.

RENO, Nev. – A former financial advisor with Bank of America who was indicted in August 2012 on felony mail fraud and tax evasion charges, is scheduled to make an initial appearance in federal court today to answer charges that he defrauded six persons of over $2 million from 2010 to 2011 in an investment fraud scheme, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

Gary H. Lane, 59, of Reno, is scheduled to appear at 3:00 p.m. today before U.S. Magistrate Judge Valerie P. Cooke for an initial appearance and arraignment. Lane is charged with 12 counts of mail fraud and five counts of attempt to evade or defeat tax. Lane has been in state custody on an unrelated matter, and thus was unable to make an appearance on the federal charges until today.

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.

If convicted, Lane 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.

The case is being 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.

An indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

LAS VEGAS, Nev. – Following a nine-day jury trial, Lance Kellow, 36, of, Henderson, Nev., was convicted today of one count of conspiracy to commit mail and wire fraud, three counts of wire fraud and one count of bank fraud for committing mortgage fraud crimes that caused losses to federally insured financial institutions of over $1 million, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

According to the indictment and evidence presented to the jury during the trial, Kellow, an experienced loan officer in the mortgage lending industry in southern Nevada, used his experience and knowledge to commit mortgage fraud and profit. On four different occasions, Kellow and his brothers lied to mortgage lenders in order to get real estate and money for their own use. Beginning in January and April 2007, Kellow and his brothers, Jason and Vince Kellow, conspired to sell their houses to their cousin, who was not qualified to buy them, for a significant profit. Kellow and his brothers completed and sent lenders loan applications which contained false statements about their cousin’s employment, income, intent to occupy the property, assets, and financial liabilities. To help their cousin qualify for loans, the brothers deposited cash in his account, paid down his debt, and arranged for false verifications of employment and income, all without informing the lenders. They also omitted other property purchases and mortgage loans from their cousin’s loan applications. As a result of the false statements in the loan applications, lenders made loans to their cousin they otherwise would not have made enabling him to buy the properties. The Kellow brothers received over $500,000 in cash from these sales. Lance Kellow personally received over $100,000. Because their cousin was not financially qualified to buy the properties, he was unable to pay the mortgages and they went into foreclosure. The total loss to the banks on the homes exceeds $1 million.

Kellow is free on a personal recognizance bond and is scheduled to be sentenced by U.S. District Judge Gloria M. Navarro on May 31, 2013. He faces up to 30 years in prison and fines of up to $1 million on each count.

Vinson Kellow pleaded guilty to wire fraud in January 2012. Jason Kellow pleaded guilty to conspiracy to commit bank fraud in August 2010. Sentencing dates for both will be scheduled in the near future.

The case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorneys Kathryn C. Newman and Christina Brown.

This case was handled in connection with the President's Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.

LAS VEGAS, Nev. – Following a six-day jury trial, Brent Edward Lovett, 50, of Henderson, Nev., was convicted today of bank fraud for making false statements to a federally insured credit union to obtain a $7.5 million commercial real estate loan, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

According to the indictment and evidence presented to the jury during the trial, during 2006, Lovett devised a scheme to defraud Lockheed Federal Credit Union by fraudulently obtaining a commercial real estate loan from which he would skim part of the loan proceeds for himself. Lovett controlled Bay Resorts International, which leased two commercial buildings at 2400 N. Tenaya Way in Las Vegas. From about May to June 2006, Lovett caused Bay Resorts to purchase the buildings for $6 million. Lovett caused Bay Resorts to sell the buildings for $10 million to another company he controlled, Equity Resource, Inc. Lovett caused Equity Resource to apply for a commercial real estate loan with Lockheed Federal Credit Union to purchase the buildings, and in the application and supporting documents, Lovett made false statements and omissions regarding Bay Resorts, Equity Resource, and the sales history of the buildings. Based on those false statements, Lockheed Federal Credit Union made a loan to Equity Resource for $7.5 million. Lovett obtained approximately $1.3 million from the proceeds of the sale of the buildings to Equity Resource. Lovett then allowed the buildings to go into foreclosure and kept the balance of the proceeds for himself.

Lovett is free on a personal recognizance bond and is scheduled to be sentenced by Senior U.S. District Judge Roger L. Hunt on May 29, 2013. He faces up to 30 years in prison and a $1 million fine.

The case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorneys Sarah E. Griswold and Brian 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. 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.

LAS VEGAS, Nev. – Federal felony drug charges have been filed against six men and one woman for growing marijuana in homes in Henderson and Las Vegas, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

Bruce Rogat, 64, Daniel Pinsonault, 57, Mark Pinsonault, 49, Ezekiel Parraz, 30, and Eli Pinsonault, 81, all of Henderson, Nev., and Jeremy Greene-Lewis, 31, and Candice Blackwell, 29, of Las Vegas, were indicted on Feb. 5, 2013, and charged with conspiracy to manufacture marijuana. The defendants are also charged variously with other drug crimes, including maintaining drug-involved premises, manufacture of a controlled substance, and possession of a controlled substance with intent to distribute, including marijuana, THC, and psilocybin.

All of the defendants, except Rogat, were arrested in Las Vegas last Thursday evening, Feb. 7, and made initial appearances before a federal magistrate judge on Friday, Feb. 8, and were released pending trial, currently set for April 9, 2013. Rogat was summoned, and is scheduled for an initial appearance and arraignment on Feb. 28, 2013, at 3:00 p.m.

According to the indictment, beginning on about Aug. 25, 2011, and continuing to Nov. 30, 2012, the defendants conspired to manufacture at least 100 marijuana plants. Three homes are alleged to have been used as marijuana grow houses - 815 Sun Bridge Lane, in Henderson; 7330 Flintstone Street in Las Vegas, and 325 New Hope Drive, in Henderson. The total number of marijuana plants involved is not specified in the indictment, other than it is over 100. The total amount of marijuana that was possessed for the purpose of distribution is alleged to be over 20 kilograms.

If convicted, the defendants face five to 40 years in prison and a fine of up to $5 million.

This case is being investigated by the DEA, the Las Vegas Metropolitan Police Department, and the Henderson Police Department, and prosecuted by Assistant U.S. Attorney Kimberly M. Frayn.

The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

Las Vegas, Nev. – An alleged pimp from the Reno area has been indicted by the federal grand jury on a sex trafficking charge for transporting a 15-year-old girl from Bakersfield, Calif. to Reno, Nev. to work as a prostitute, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

Vernon McCullum III, aka “Fifth,” 20, of Reno, was indicted on Wednesday, Jan. 23, 2013, and is charged with one count of illegal transportation of a minor for prostitution or other illegal sexual activity. If convicted, McCullum faces a minimum of 10 years to life in prison and up to a $250,000 fine. McCullum is scheduled to appear before a federal magistrate judge in Reno today at 3:00 p.m. for an arraignment and plea.

According to the indictment and criminal complaint, on Jan. 10, 2013, the Bakersfield, California Police Department received a report of a missing 15-year-old girl and opened an investigation. The investigation revealed that an advertisement had been posted on the internet website “Myredbook.com” stating that an individual using the name “Babyfaith” was available for prostitution services. The telephone number listed in the advertisement was that of the missing girl. The investigation further revealed that two days earlier, on Jan. 8, 2013, in Bakersfield, the 15-year-old girl was introduced to McCullum by a female acquaintance who had been working for McCullum as a prostitute. On Jan. 9, 2013, McCullum drove the 15-year-old and the other female to a hotel room in Reno and directed the female acquaintance to take nude pictures of the 15-year-old, which were then uploaded onto the Myredbook.com website. Following the posting of the advertisement on the website, the 15-year-old engaged in prostitution at McCullum’s direction, and was required to provide proceeds of the prostitution activity to the female acquaintance who provided it to McCullum.

The case is being investigated by the Bakersfield Police Department and the Reno Police Department Street Enforcement Team, which includes the Sparks Police Department and Washoe County Sheriff’s Office, and the FBI, as part of their Innocence Lost Task Force. It is being prosecuted by Assistant United States Attorney Carla B. Higginbotham.

An indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

Las Vegas, Nev. – A former resident of Las Vegas who defrauded 17 individuals of almost $1.5 million in an investment fraud and marketing scheme involving early mortgage payoffs, was sentenced today to just over eight years in prison for his guilty pleas to fraud and tax evasion charges, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

“Mr. Maharaj repeatedly solicited victims through fraud and deception knowing that they would never receive the monetary rewards he pitched,” said U.S. Attorney Bogden. “Although he tried to avoid facing the reality of a conviction by fleeing to Fiji and causing the United States to extradite him, he was eventually brought to justice and will spend much of the next decade behind bars.”

Aneal Maharaj, 65, currently in custody, was sentenced by U.S. District Judge James C. Mahan to 100 months in prison, five years of supervised release, and ordered to pay $1,473,111 in restitution. Maharaj received a greater sentence because of the significant loss amount and number of victims, and because he obstructed justice by failing to appear for trial in the case and fled to Fiji to avoid prosecution. Maharaj pleaded guilty on Oct. 18, 2012, to one count of mail fraud, two counts of wire fraud, one count of tax evasion, six counts of bank fraud, and one count of making a false declaration in a bankruptcy petition.

Beginning in about 1990 and continuing to about October 2004, Maharaj operated a multi-level marketing program from Las Vegas wherein he promised persons that they could pay off a 30-year mortgage in five years or less by investing and becoming franchise owners in a business he called “PowerNet Marketing Systems,” and a “home loan plan” he called Systematic Mortgage Amortization Reduction Technology (SMART). The system required the investors to recruit additional persons into the program, which Maharaj told them would entitle them to substantial commissions and income. Maharaj knew that no individual had ever paid off a 30-year mortgage in five years or less using the SMART plan, and that he had no intention of paying the commissions and income to the participants. At least 17 individuals each invested a minimum of $25,000 and up to $500,000 with Maharaj to become franchise owners in his fraudulent marketing program. The plea agreement states that Maharaj convinced one victim to sign over his interest in his $100,000 life insurance benefit.

Maharaj was originally charged in September 2005 with mail fraud and wire fraud. Additional charges were filed against Maharaj in October 2008, including structuring cash transactions, money laundering, tax evasion, bank fraud and making a false declaration in relation to a bankruptcy proceeding. Shortly thereafter, the government filed a motion requesting the court to detain Maharaj pending trial, alleging that Maharaj was committing new crimes while on pretrial release including engaging in the same conduct for which he was originally indicted. The court did not immediately detain Maharaj, and set a hearing on the matter. Maharaj fled to Fiji and failed to appear at the hearing. In February 2009, the U.S. Department of Justice began extradition proceedings. Maharaj fought extradition for more than two years, but on Nov. 15, 2011, he was extradited to Las Vegas to face the charges.

Maharaj has not filed a tax return since at least 1995, and admitted in his guilty plea that from 1995 to about October 2004, he kept a substantial portion of the payments that the victims made to “Powernet” for his own use and benefit and did not pay taxes on the income. Maharaj used the proceeds of the fraud scheme to purchase homes in Las Vegas and Henderson between December 2003 and August 2004. Maharaj financed the homes through Countrywide Home Loans and caused false and fraudulent information to be included in the home loan applications concerning his employment, income, assets and liabilities. Maharaj also filed for bankruptcy and made false statements in his petition concerning ownership of the homes.

The case was investigated by the FBI and IRS Criminal Investigation and prosecuted by Assistant U.S. Attorneys Brian Pugh and Nicholas Dickinson.

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, Nev. – Las Vegas lawyer Charles C. LoBello has been sentenced to two years in prison and ordered to pay $260,625 in restitution to the IRS for his guilty plea to one count of tax evasion for the 2002 tax year, announced Daniel G. Bogden, United States Attorney for Nevada.

LoBello was sentenced on Monday, Jan. 14, 2013, by U.S. District Judge James C. Mahan, and must self-report to federal prison by April 15, 2013.

According to the court records, LoBello, who operated as a sole practitioner in Las Vegas, concealed over $900,000 in income from the United States, intentionally gave incomplete information to his bookkeeper and tax return preparer, and used personal checking accounts to hide large checks he received as legal fees. LoBello admitted in his guilty plea agreement that for the years 2001 through 2005, he owed an additional $260,625 in income taxes.

LoBello’s brother, Mark LoBello, also a Nevada attorney, pleaded guilty to tax evasion in August of 2008, and was sentenced by Judge Mahan on Dec. 1, 2008, to 15 months in prison. Mark LoBello’s license to practice law was subsequently suspended by the Nevada Bar in December 2008.

The case was investigated by IRS Criminal Investigation and prosecuted by Department of Justice Tax Division Trial Attorneys Thomas W. Flynn and Dennis R. Kihm.

Las Vegas, Nev. – Las Vegas lawyer Gerry Zobrist pleaded guilty today to federal felony conspiracy and fraud charges for his involvement in a mortgage fraud scheme that caused federally insured financial institutions to suffer losses of more than $30 million, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

“The U.S. Attorney’s Office in Nevada continues to work with the FBI and other federal and state law enforcement partners, to investigate and prosecute mortgage fraud crime,” said U.S. Attorney Bogden. “Over the last several years, almost 200 persons have been charged with federal mortgage fraud crimes in Nevada, and most of those have been convicted and are serving federal prison sentences.”

Zobrist, 43, of Las Vegas, pleaded guilty before U.S. District Judge James C. Mahan to one count of conspiracy to commit bank fraud and wire fraud, and is scheduled to be sentenced on April 15, 2013, at 10:00 a.m. Zobrist faces up to 30 years in prison and a $1 million fine.

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.

Las Vegas, Nev. – A man who submitted false and fraudulent federal tax returns for himself and others causing hundreds of thousands of dollars of losses to the IRS, was sentenced today to 2½ years in prison, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

Michael Titus, 49, most recently of Cedar City, Utah, but currently in federal custody, was sentenced by Senior U.S. District Judge Philip M. Pro to 30 months in prison and three years of supervised release, and ordered to pay approximately $300,000 in restitution to the IRS. Titus pleaded guilty on Sept. 4, 2012, to one count of filing a false claim with the IRS.

According to plea agreement, beginning in about 2007, Titus prepared and filed fraudulent federal tax returns for himself and others in Nevada and Utah, for the purpose of obtaining significant tax refunds to which the taxpayer was not entitled. Through his fraudulent practices, Titus caused losses to the IRS of approximately $468,481. Among other things, Titus created fraudulent W-2 forms and claimed false business losses on the tax returns. Specifically on Jan. 9, 2009, Titus prepared and filed a fraudulent tax return for himself and his wife claiming over $450,000 in income from Medco Networks, Inc., as well as significant withholdings and business losses, when Titus knew that he had not been so employed or earned such income and did not have such withholdings or losses. By filing this false and fraudulent return, the IRS issued to Titus a refund of $49,682.

Titus has several prior felony convictions in Missouri and Arkansas for burglary and theft, as well as a gross misdemeanor conviction in Clark County in 2007 for securities fraud.

The case was investigated by IRS Criminal Investigation and was prosecuted by Assistant U.S. Attorney 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.

Las Vegas, Nev. – A Las Vegas man who operated an illegal drug trafficking organization that transported prescription drugs from Las Vegas to Anchorage, Homer, Kenai, Soldotna and Wasilla, Alaska, and laundered over $1 million through bank accounts in Las Vegas, was sentenced today to 15 years in prison for his guilty pleas to conspiracy, drug and money laundering charges, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

Nicholas Ghafouria, 28, was sentenced by Senior U.S. District Judge Roger L. Hunt. In addition to the prison time, Ghafouria was also ordered to forfeit over $1.2 million in cash and property, and must serve three years of supervised release following his release from prison. Ghafouria pleaded guilty on Oct. 1, 2012, and was the last of the 27 defendants charged in the scheme to be sentenced, most of whom were sentenced to prison. Nineteen of those defendants were from Alaska and eight were from Las Vegas.

“Over the last several years, we have been working with state and local law enforcement and health care providers to attack the growing prescription drug abuse problem in Nevada,” said U.S. Attorney Bogden. “Since January 2010, over 100 individuals, including four doctors and a pharmacist, have been charged in Nevada with unlawfully distributing highly addictive prescription painkillers.”

Between May 2009 and October 2010, Ghafouria organized and led a group of individuals who distributed over 4,000 oxycodone pills in Alaska and laundered at least $1.2 million in cash proceeds from the unlawful distribution of the drugs. Ghafouria and his co-conspirators used various ways to get the drugs to Alaska, including sending them in packages and transporting them on airplane flights. Ghafouria sold the pills for approximately $65 each in Alaska. Co-conspirators in Alaska either provided money directly to couriers who delivered it to Ghafouria in Las Vegas, or they deposited money into bank accounts in Alaska which was withdrawn in Las Vegas by individuals under Ghafouria’s direction.

The cases were investigated by IRS Criminal Investigation in Las Vegas, the FBI in Las Vegas and Anchorage, DEA in Las Vegas and Anchorage, Bureau of Alcohol, Tobacco, Firearms, and Explosives in Anchorage, Department of Homeland Security in Anchorage, Las Vegas OCDETF, Las Vegas Metropolitan Police Department, United States Attorney’s Office, District of Alaska, Alaska Bureau of Alcohol and Drug Enforcement, Alaska State Troopers (Soldotna SERT, Soldotna ABI, Anchor Point Troopers), Alaska Wildlife Troopers, Kenai Police Department, Anchorage, Kenai and Mat-Su Judicial Services, Kenai District Attorney’s Office, Soldotna Police Department, Kenai Adult Probation, Alaska Department of Corrections, United States Fish and Wildlife Service, and Alaska National Guard. The cases were prosecuted by Assistant United States Attorneys Patrick Walsh and Kishan Nair.