District of Utah
Press releases recorded for this federal judicial district.
Salt Lake City Man Pleads Guilty to Child Pornography ChargesRead the Press Release
SALT LAKE CITY – Joel Lehi Organista, 29, of Salt Lake City, pleaded guilty to two felony counts related to the production and transportation of child pornography in federal court last Monday.
In the plea agreement, Organista admitted to owning a Dropbox account which was used for downloading between 10 and 150 images of prepubescent minors. In addition, Organista admitted to using Snapchat to contact minor children and soliciting them to perform sexual acts for him via video chat, including an incident which occurred between Organista and a 13 year-old victim, where the victim performed sexual acts for Organista via video chat.
The case originated in January of 2021, after law enforcement received multiple tips that devices and accounts attributed to Organista were receiving and downloading images containing child pornography. A search warrant was executed at Organista’s residence in June of 2021, and Organista has been in custody since that time.
Prosecutors have agreed to recommend a sentence of 15 years in federal prison, which will be reviewed by a District Court Judge at the time of Organista’s sentencing, currently set for May of 2022. Organista also faces a maximum possible sentence of a lifetime of supervised release after his term of incarceration is served and he will be required to register as a sex offender.
Special Assistant U.S. Attorneys from the Utah Attorney General’s Office and Assistant United States Attorney’s Office from the United States Attorney’s Office prosecuted the case. Special Agents from the Internet Crimes Against Children Task Force conducted the investigation.
Former UTA Employee Sentenced for Lying to Federal InvestigatorsRead the Press Release
SALT LAKE CITY- Jacob Splan, 39, of Salt Lake City, was sentenced to six months of home confinement and 36 months of probation on Tuesday, in relation to making false statements to special agents from the United States Department of Transportation and the FBI.
According to the plea agreement, Splan admitted to lying to federal investigators about whether he had invoiced the Utah Transit Authority (UTA) for work completed at his personal residence. Under the terms of Splan’s former employment with UTA, he had the authority to make no-bid “micro purchases” on behalf of UTA in the amount of $3,000.00 or less. However, during a meeting on January 7, 2021, with special agents from the U.S. Department of Transportation and the FBI, Splan affirmatively stated that he had paid $3,000 dollars of his own money to contractors for work completed at his home. Splan later admitted in the plea agreement that he had not paid the contractors with his own money and that he knew the statement was false. In addition to the six months of home confinement, Splan has been ordered to pay a fine of $30,000, which was the estimated value of the work that Splan had completed on his own driveway.
“One of the highest priorities within the Department of Justice is ensuring the integrity of governmental processes and employees,” said United States Attorney Andrea T. Martinez. “We hope that this sentencing sends a message that misusing public funds and lying to federal investigators will be taken seriously and prosecuted in the District of Utah.”
“Working with our law enforcement counterparts and the U.S. Attorney’s Office to pursue and prosecute government officials who make false statements during criminal investigations ensures that those in positions that serve the public maintain their integrity,” said Cissy Tubbs, Special Agent-In-Charge, Western Region, U.S. Department of Transportation Office of Inspector General. “Jacob Splan’s sentence sends a message that this conduct is unlawful and will not be tolerated.”
“Jacob Splan abused his position for his own personal gain and then lied about it,” said Special Agent in Charge Dennis Rice of the Salt Lake City FBI. “No matter the amount of money, corruption undermines confidence in government, and those who commit fraud will be held accountable.”
Assistant United States Attorneys from the Utah U.S. Attorney’s Office prosecuted the case against Splan. Special Agents from the Department of Transportation Office of Inspector General and the FBI conducted the investigation.
Lehi Couple Charged with Schemes to Defraud Victims, Including a Vulnerable Adult, out of a Combined 3.65 Million Dollars; Husband Charged with Kidnapping in Connection with SchemeRead the Press Release
SALT LAKE CITY- Misiona Patane, 57, and Lavinia Patane, 54, of Lehi, have been charged in U.S. District Court for their alleged role in defrauding one set of victims out of 1.25 million dollars, along with a related scheme to defraud a vulnerable adult out of 2.4 million dollars. In an indictment issued by a federal grand jury, Misiona and Lavinia Patane are charged with two counts of bank fraud and three counts of money laundering, while Misiona Patane is separately charged with four counts of wire fraud, six counts of aggravated identity theft, and one count of kidnapping. The kidnapping charge is based upon Misiona Patane’s alleged role in keeping a vulnerable adult in Samoa for more than a year under false pretenses so Patane could fraudulently obtain more funds from a trust meant for the benefit and care of the adult.
The allegations contained in the indictment state that, in 2011, Misiona Patane became the director of a foundation started by a former professional athlete, known as “P.S.” The foundation was dedicated to assisting individuals in and from Samoa. It is alleged that, later in 2011, Misiona Patane’s wife, Lavinia Patane, became an officer of the foundation. Over the course of several years, Lavinia Patane wrote numerous checks, made deposits, and made cash withdrawals from the foundation without the knowledge of or permission from P.S. The indictment alleges that between 2015 and 2017, the Patanes diverted 1.25 million dollars in tax refunds belonging to P.S. and his wife, and used the money for their own personal use.
In carrying out the second scheme, the indictment alleges that the Patanes stole over 2.4 million dollars from a court-monitored trust which existed for the benefit of a 26-year-old victim known as “J.F.”, who suffers from a permanent traumatic brain injury which occurred in an automobile accident when J.F. was 20 months old. It is alleged that under the terms of the court-monitored conservatorship, two family members were appointed as co-guardians to manage the financial and daily affairs of “J.F.” and that the co-guardians could authorize expenditures of funds from the J.F. Trust. It is alleged that from 2016 to 2018, the Patanes stole $2.4 million dollars from the J.F. Trust, under the guise of helping to provide services and pay for expenses related to J.F.’s care; the Patanes used these stolen funds for their own personal expenses. It is further alleged that Misiona Patane devised a plan to have J.F. participate in a residential program in Samoa, and that Misiona, acting as himself and pretending to be third parties, sent numerous emails and fraudulent documents to J.F.’s guardians and financial advisor to fraudulently obtain money from J.F.’s trust. In addition, it is alleged that Misiona Patane, for the purpose of fraudulently obtaining more money from the trust, falsely stated that “J.F.” was required to stay in Samoa pursuant to a court order and that J.F. would be subject to arrest or imprisonment should J.F. attempt to leave Samoa and travel to the U.S.
Misiona Patane is currently being held in custody pending trial after a finding by a federal magistrate that Misiona Patane is a danger to the community and a risk of flight. Some of the allegations in the indictment occurred while Patane was serving a federal probationary sentence for a previous federal conviction for fraud.
Any individual who believes they may be a victim of fraud by the defendants is encouraged to contact United States Attorney’s Office Victim Coordinator at 801-325-1430.
Assistant United States Attorneys from the U.S. Attorney’s Office for the District of Utah are prosecuting the case against the Patanes. Special Agents from IRS Criminal Investigation are conducting the investigation.
Statements made in charging documents are only allegations and not findings of guilt. All defendants are presumed innocent unless found guilty of the charges contained in the indictment.
Taylorsville Woman Charged with Making False Statements to Obtain Millions of Dollars in PPP Loans.Read the Press Release
SALT LAKE CITY – Allison Marie Baver, 41, of Taylorsville, has been charged with nine federal criminal counts related to making false statements on loan applications to obtain funds obtained through the Small Business Administration’s Paycheck Protection Program (PPP). In the indictment, Baver is charged with eight counts of making a false statement to a bank and one count of money laundering.
According to the allegations contained in the federal indictment, Baver is the listed owner and agent for Allison Baver Entertainment, LLC, and submitted eight PPP loan applications from April 13, 2020, through April 26, 2020 to Northeast Bank and Meridian Bank. In each of the loan applications, Baver allegedly sought 10 million dollars of PPP loan funding for her entertainment company. However, prosecutors allege that Baver falsely stated in each loan application that ABE’s average monthly payroll was between $4,000,000 to $4,769,583, when ABE had no average monthly payroll; and, that ABE had between 100 to 430 employees, when ABE had no employees. Prosecutors also allege that these false statements resulted in Baver fraudulently obtaining 10 million dollars in PPP loans from Meridian Bank, and that Baver accepted that money and transferred it to a separate bank account where she began using a portion of the funding to invest in a movie.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Assistant United States Attorneys are prosecuting the case and the FBI and the Small Business Administration Office of Inspector General are conducting the investigation.
Allegations are not findings of guilt and defendants are presumed innocent until proven guilty at trial.
Main Defendant in 32 Defendant Drug Distribution Case involving Nortenos Gang sentenced to Fourteen Years in PrisonRead the Press Release
SALT LAKE CITY – Joseph “Norte Joe” Gomez, the lead defendant in a large-scale 32 defendant federal indictment, was sentenced last Tuesday by a U.S. District Court Judge in the District of Utah. Judge Tena Campbell sentenced Gomez to serve 14 years in federal prison with five years of supervised release to follow his incarceration after previously pleading guilty to conspiracy to distribute methamphetamine and conspiracy to launder money. All thirty-one members and associates of the Norteños street gang responsible for distributing drugs around the Salt Lake City area have pleaded guilty and four lower-level defendants have yet to be sentenced. Most of the defendants in this case have received sentences between 72 and 96 months.
Acting U.S. Attorney for Utah Andrea T. Martinez, DEA District Agent in Charge Jay Tinkler, ATF Assistant Special Agent in Charge Brad Engelbert, IRS-Criminal Investigation Special Agent in Charge Darren Lian, and Salt Lake County Sheriff Rosie Rivera announced the sentencing today.
As outlined in the complaint filed in February of 2019, gang investigators documented Utah’s first Norteños group in the mid-1980s, followed by several other sub-sets in the early 1990s. Unaligned or independent street gangs began associating under the Norteños umbrella in the early 2000s. According to the complaint, the Salt Lake Valley has approximately 10 active Norteños sub-sets, with approximately 100-150 active Norteños gang members. Norteños in the Salt Lake Valley have been responsible for drive-by shootings, aggravated assaults, robberies, and homicides.
The Salt Lake Area Metro Gang Unit (MGU) and the ATF opened a proactive investigation that targeted drug and firearms trafficking activities of Salt Lake City gang members, specifically looking at Norteños. The DEA and IRS-CID joined the investigation in August in 2018. Evidence gathered during the investigation shows the defendants named in the charges engaged in a typical drug-trafficking scheme, to which all the defendants pleaded guilty. The complaint alleges they were involved in transporting drugs from Mexico into the United States; moving the drugs to the destination area of Salt Lake City; distributing the drugs to re-distributors who distributed the drugs through the community; and collecting and transporting drug proceeds.
During the investigation, agents learned that Joe Gomez aka “Norte Joe” and Denny Kandt aka “Casper” were working with Mexican drug cartel members to distribute drugs that originated from Mexico in and around the Salt Lake Valley. The investigation demonstrated that Gomez received shipments of methamphetamine and heroin sent by Mexico-based drug traffickers and a Los Angeles-based drug trafficker. Gomez and Kandt supplied drugs to various Salt Lake City-based sub-distributors. In the course of a several-months long and labor-intensive investigation, agents seized more than 30 pounds of methamphetamine, 19 firearms, and more than $20,000 in bulk cash. Agents demonstrated during the investigation that this Nortenos group trafficked approximately 20-30 pounds of methamphetamine each month in the District of Utah. Federal prosecutors ultimately obtained indictments for 38 defendants (in seven separate indictments, with the main indictment naming Joe Gomez, Denny Kandt, and 30 other defendants).“The United States Attorney’s Office remains committed to the federal prosecution of gang members and narcotics dealers who fuel the violent crime epidemic in the Salt Lake Valley,” said Acting United States Attorney Andrea T. Martinez. “This prosecution highlights the high-level narcotics distribution networks that target our state and our communities, along with the law enforcement partnerships that enable us to dismantle drug trafficking organizations from the cartel level down to street dealers.”
“This is one of many investigations that demonstrate the collaboration and partnership with County, State and Federal agencies. The Metro Gang Unit plays an integral part of these types of investigations. The Unified Police Department under the direction of the Sheriff is committed to addressing and abating organized drug distribution efforts and violent crime that victimize residents across Salt Lake County.”
“Through a sophisticated and transnational crime-for-profit scheme; gang members brought illegal guns, drugs and violence to our streets.” said Special Agent in Charge David Booth. “This multi-year investigation is proof there are no boundaries of place or time in our pursuit to stop violent crime. We are grateful for the tireless efforts of the U.S. Attorney’s Office in their successful prosecution which disrupted and dismantled the criminal enterprise.”
“Being able to effectively dismantle this criminal organization, to include it’s leaders, is a testament to the hard work and dedication of the entire investigative team. It is a priority of the DEA, in conjunction with our partners, to target these types of organizations and reduce drug-related violence that diminishes the quality of life of our communities.”
“The IRS is proud to have our agent work so closely and successfully with our Federal, State, and local law enforcement partners in this case,” Special Agent in Charge Darren Lian stated. “Our agent used their specialized skillset to trace the money internationally and was able to show these funds used in furtherance of the scheme to traffic drugs in the United States; because of this work those who were responsible for financing this operation were able to be held accountable.”
Assistant United States Attorneys Stephen L. Nelson, Stewart M. Young and Thaddeus J. May prosecuted the cases arising from the investigation. Special Agents from the ATF, DEA, and IRS Criminal Investigations conducted the investigation along with investigators from the Unified Police Department’s Metro Gang Unit.
Justice Department Awards More Than $17.5 Million to Support Project Safe NeighborhoodsRead the Press Release
WASHINGTON – The Department of Justice announced today that it has awarded more than $17.5 million in grants to support the Project Safe Neighborhoods (PSN) Program. Funding will support efforts across the country to address violent crime, including the gun violence that is often at its core. The United Way of Northern Utah was awarded $155,210 to administer PSN grant funds in the District of Utah.
The Bureau of Justice Assistance (BJA), part of the department’s Office of Justice Programs (OJP), will administer the 88 grant awards, which are being made to designated fiscal agents to support local PSN projects that work in partnership with U.S. Attorneys’ Offices.
“This latest Project Safe Neighborhoods grant is critical to addressing the violent crime threatening cities and towns all across our country,” said Deputy Attorney General Lisa O. Monaco. “Ensuring the safety of all Americans is the highest priority for the Department of Justice, but when it comes to violent crime, there is not a one-size-fits-all solution. We have to work closely with local public safety agencies as well as community organizations to craft individual strategies unique to each community’s needs. Programs like Project Safe Neighborhoods and the funding it provides allow us to do just that.”
“We are proud of all that we have accomplished in and around the City of Ogden through our participation in the Project Safe Neighborhoods program,” said Acting United States Attorney Andrea T. Martinez. “We remain committed to keeping our cities safe from violent criminals who victimize neighborhoods and erode the quality of life within our cities.”
These grant funds will continue to be used to reduce violent crime in Utah, and with approval from BJA, the Fiscal Agent will begin the process of making subawards for PSN grant projects.
“Investing in our communities, supporting victims and building a justice system that both keeps people safe and earns their trust – these are mutually reinforcing goals that stand at the heart of Project Safe Neighborhoods,” said Principal Deputy Assistant Attorney General Amy L. Solomon for OJP. “The Office of Justice Programs is pleased to join with our U.S. Attorneys’ Offices, and with jurisdictions across the country, as we work together to meet the challenges of crime and violence and achieve our shared aspirations of public safety and community trust.”
In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime issued by Deputy Attorney General Monaco, is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
This fall, U.S. Attorney’s Offices across the country have enhanced their violent crime reduction efforts to ensure alignment with the department’s comprehensive violent crime reduction strategy. U.S. Attorneys’ Offices have engaged in outreach to law enforcement and other agencies and organizations serving communities to identify the most significant drivers of violence in their districts. Working together with a broad coalition of stakeholders, the U.S. Attorneys’ Offices are addressing the most pressing violent crime issues in their district to make our neighborhoods safer for all.
PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies, community stakeholders and other agencies and organizations that work to reduce violent crime.
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The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
Logan Man Sentenced to Five Years in Federal Prison for Defrauding Investors in his Fraudulent Business SchemesRead the Press Release
SALT LAKE CITY- Ryan R. West, 45, of Logan, was sentenced to five years in federal prison today for defrauding numerous individuals involved in his business venture investment schemes. West previously pled guilty in August of 2021 to four counts of wire fraud connected to his fraudulent schemes. In total, West defrauded his victims of a cumulative amount of over $5.4 million between 2011 and 2016.
In addition to the five-year prison term, West was ordered to be on supervised release for three years after prison and was ordered to pay $5,420,206.98 in restitution to his victims and to forfeit $5,261,755.73 in proceeds and a 4-carat diamond.
West’s first fraudulent scheme involved soliciting investments from an individual for a business venture involved in operating a gravel quarry in West Texas. Instead of using the investor’s money for the business venture, West used the money for personal expenses, including payments on a 4-carat diamond, and unrelated business expenses, and did not return any of the victim’s money. West also borrowed money for the quarry operations against the equity in the home of an individual he met through church. Most of the money was used to pay West’s personal expenses and not for the quarry. West defaulted on the loans and the individual lost his home in foreclosure.
Another of West’s schemes involved soliciting investments in a commercial property flipping venture in North Dakota. West borrowed approximately $650,000 from several victims. Only $150,000 of $350,00 invested was ever used for the real estate venture. The rest of the money was used for other business ventures that West did not tell the investors about, or for West’s personal expenses. West sold the North Dakota property without telling his investors and netted $190,000 which he kept for himself. Only one investor was ever repaid a $350,000 investment; the others each lost $100,000.
West’s co-defendant in the fraud, Gary Alan Gygi, 57, of Holladay, also pled guilty in August and is scheduled to be sentenced on December 16, 2021.
“The United States Attorney’s Office is committed to prosecuting fraudsters who prey on vulnerable members of our community,” said Acting United States Attorney Andrea T. Martinez. “Our thoughts are with the victims of this case, some of whom were elderly, vulnerable and met West through church, business and family connections.”
“Driven by greed, Mr. West and Mr. Gygi’s criminal misconduct devastated their victims, some of whom were seniors and vulnerable adults," said Special Agent in Charge Dennis Rice of the Salt Lake City FBI. "To those who make false claims to steal people’s money, know that there are serious consequences. We also urge the public to do their due diligence when approached about investment opportunities, understanding that there are unscrupulous fraudsters who stand at the ready to separate you from your hard-earned money and property."
Assistant United States Attorneys prosecuted the cases against West and Gygi. Special Agents from the FBI conducted the investigation.
Salt Lake City Estate Planning Attorney Pleads Guilty to Embezzling at least 9.5 Million Dollars from ClientsRead the Press Release
SALT LAKE CITY – Attorney Calvin Curtis, 61, of Salt Lake City, pleaded guilty in federal court today to two counts involving wire fraud and money laundering for his role in embezzling at least $9.5 million dollars from clients of his estate planning law firm based in Salt Lake City, known as Calvin Curtis Attorney at Law PLLC, and Curtiselderlaw.com. Prosecutors and defense attorneys have agreed to recommend a sentence of 73 months in federal prison during Curtis’s sentencing which is scheduled to occur on March 15, 2022.
In the plea agreement, Curtis admitted that he is an attorney who specializes in special needs trusts and that beginning in January 2008, he began a fraudulent scheme to defraud a client known as “G.M.” out of money. Curtis admitted that due to his role, he had access to millions of dollars in two different trust accounts belonging to victim G.M. and that he transferred at least $9,500,000 intended for the care of G.M. into his own accounts and then used this money for his own personal use. Curtis admitted that he also created fake financial statements and submitted these to the court ordered conservator of G.M. to conceal the fraud.
In pleading guilty to the wire fraud charge, Curtis admitted that on January 25, 2018, that he caused a wire communication from a Schwab Investment Account to his own Wells Fargo account, resulting in a transfer of $1,485,000. Curtis admitted that he used the money for his own personal benefit to make mortgage payments on his combined home and office located on South Temple Street in Salt Lake City, Utah; to support a lavish lifestyle with frequent travel; to purchase tickets to basketball and football games; to give lavish gifts to others; and to support the operations of his law firm.
In pleading guilty to the money laundering count, Curtis admitted that he fraudulently caused $135,000 to be transferred online from G.M. to his own Wells Fargo account, and that he used these funds to wire $95,000 to The Fechtel Company for the remodel of his home in Tampa, Florida. Curtis admitted that he knew these transactions were illegal at the time they occurred, and that the money was not used for the benefit of G.M
At this time, it is alleged that Curtis embezzled funds from at least 22 additional trusts in amounts more than $9,500,000. Anyone who believes they may be a victim of this crime is encouraged to call the FBI at (801) 579-1400 to file a report.
“Defrauding vulnerable and elderly adults is a reprehensible and greedy act that is deserving of federal prison time,” said Acting United States Attorney Andrea T. Martinez. “The United States Attorney’s Office is committed to prosecuting and holding those accountable who defraud elderly and vulnerable clients. Our concern is with the victims of these crimes and their ability to obtain basic needs moving forward.”
“Calvin Curtis’ greed had devastating consequences for his clients, who placed their trust and money in his hands,” said Special Agent in Charge Dennis Rice of the Salt Lake City FBI. “Sadly, financial fraud cases like this are not limited to a few victims. We hope this case sends a strong message that the FBI will do what it takes to make sure such crimes don’t go unpunished.”
"The IRS is proud to collaborate with our law enforcement partners to combat the seemingly ever present fraud in Utah,"¬ stated IRS Phoenix Field Office Special Agent in Charge Darren Lian. "This plea brings the United States one step closer to justice for the many victims who have serious losses in this unfortunate case."
Assistant United States Attorneys are prosecuting the cases against Curtis and Special Agents from the FBI and IRS Criminal Investigations are conducting the investigation.
Justice Department Announces $139 Million for Law Enforcement Hiring to Advance Community PolicingRead the Press Release
WASHINGTON – The Department of Justice today announced more than $139 million in grant funding through the department’s Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program (CHP). The awards provide direct funding to 183 law enforcement agencies across the nation, allowing those agencies to hire 1,066 additional full-time law enforcement professionals. In the District of Utah, three municipalities were awarded funding totaling $813,436.00.
“We are committed to providing police departments with the resources needed to help ensure community safety and build community trust,” said Attorney General Merrick B. Garland. “The grants we are announcing today will enable law enforcement agencies across the country to hire more than 1,000 additional officers to support vitally important community oriented policing programs.”
“Community oriented policing is vital to community safety and building trust between law enforcement and the community,” said Acting United States Attorney Andrea T. Martinez.”
The following municipalities in Utah received awards:
- North Park Police Department - $125,000.00
- City of Orem - $500,000.00
- San Juan County - $188,436.00
CHP is a competitive award program intended to reduce crime and advance public safety through community policing. CHP provides funds directly to law enforcement agencies to hire new or rehire additional career law enforcement officers, thereby increasing their community policing capacity and crime prevention efforts. Of the 183 agencies awarded grants today, approximately half will use the funding to focus on building legitimacy and trust between law enforcement and communities; 41 agencies will seek to address high rates of gun violence; 21 will focus on other areas of violence; and 19 will focus CHP resources on combating hate and domestic extremism or supporting police-based responses to persons in crisis. The complete list of awards can be found here.
Since its creation in 1994, COPS has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and Tribal law enforcement agencies to fund the hiring and redeployment of more than 135,000 officers. CHP, COPS’ flagship program, continues to be in demand today: In FY21, COPS received 590 applications requesting nearly 3,000 law enforcement positions. For FY22, President Biden has requested $537 million for CHP, an increase of $300 million.
To learn more about CHP, please visit https://cops.usdoj.gov/chp-award. For additional information about the COPS Office, please visit https://cops.usdoj.gov/.
The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served.
Two Individuals in Federal Prison as Officers, Agents Target those Responsible for an Overdose Death in Park CityRead the Press Release
SALT LAKE CITY – Jimmy Astudillo, age 32, of Salt Lake City, was sentenced to 65 months in federal prison for the possession of heroin with intent to distribute, related to his role in the distribution of narcotics that caused the fatal overdose of a Park City woman in 2018.
Astudillo previously entered his guilty plea in federal court in August. In their court filings, prosecutors told the judge that the defendant’s criminal history suggests a near life-long pattern of serious crimes and, given the brazen and dangerous nature of defendant’s activities, recommended the court sentence Astudillo to 65 months in federal prison.
The investigation into the case began on May 10, 2018, when Park City police officers and deputies with the Summit County Sheriff’s Office responded to an apartment to check on a woman at the request of an acquaintance. They found the woman, identified as CC in court filings, deceased. The Office of the Medical Examiner later listed CC’s death as a drug overdose resulting from heroin and methamphetamine toxicity.
An overdose drug investigation targeting individuals who provided the methamphetamine and heroin started almost immediately. According to documents filed in court, law enforcement officers and DEA agents used information provided by the acquaintance to start conducting interviews. Officers served a subpoena on a Park City business for security footage for the evening of May 9, 2018, and a few days later, agents obtained a federal search warrant for CC’s Facebook Messenger records.
The Facebook records revealed communications between CC and Zachary Westerman during the evening hours of May 9, 2018. The Messenger exchanges also revealed that Westerman had supplied CC with heroin and methamphetamine.
In the final five exchanges, Westerman told her he had $30 of black tar heroin and $20 of methamphetamine he would sell for $10, for a discounted total of $40. CC agreed. Westerman then double checked the agreement, “So 40 total.” “Perfect,” CC said. A few minutes later, CC messaged Westerman, “Here.”
On Jan. 23, 2019, Westerman, age 36, of Sandy, pleaded guilty to one count of distribution of heroin in federal court in Salt Lake City. He admitted that on May 9, 2018, he sold user-level amounts of heroin and methamphetamine to CC. He was sentenced to 36 months in federal prison. The sentence included an enhancement for CC’s death resulting from his conduct.
The investigation did not end there.
According to a sentencing memorandum filed in in federal court, Westerman, in a post-arrest interview, identified Jimmy Astudillo, as his supplier for the drugs he sold CC. Agents obtained a federal search warrant for Astudillo’s Facebook account for the period of April 2 to Sept. 20, 2018. Those records revealed numerous drug trafficking conversations between Astudillo and his drug customers. In one, Astudillo bragged to one of his customers that his heroin was so strong that the “feds” were trying to blame him for overdose deaths in Utah and he had to be careful not to get caught. Astudillo referred to the potent heroin as “fire.”Agents arranged and conducted a controlled buy of one-ounce of heroin from Astudillo in 2018, paying $1,200. Astudillo told the undercover officer that the heroin was “fire” (high quality). He also told him the undercover he sells normal strength, cheaper heroin as well. A second attempted undercover purchase of four ounces of heroin for $4,400 ended up not taking place. Astudillo kept insisting the undercover officer (UC) get in his vehicle to drive them to the source of the supply nearby. The UC would not get into the car and asked to see the heroin. Astudillo then pulled out a bag of what appeared to be heroin, but the UC noticed the amount was likely not the agreed upon four ounces. As Astudillo became agitated, the UC returned to his vehicle and left.
Federal agents arrested Astudillo on Dec. 19, 2018. They also executed a search warrant at his home and found a small bag of heroin in a dresser drawer and a larger bag of heroin in a closet full of shoes. The total weight of the seized heroin was about one pound.
In the sentencing memorandum, prosecutors told the court that following his arrest, Astudillo called his heroin supplier and advised him to destroy his phones and expressed the hope that he “could get back in the swing of things” with the supplier once out of custody.
Assistant United States Attorneys prosecuted the cases against Westerman and Astudillo. The Summit County Sheriff’s Office, the Park City Police Department, and the DEA, conducted the investigation.
Uintah County Man to Serve 84 Months in Federal Prison for Distributing Narcotics Causing Fatal Overdose and Illegal Possession of a FirearmRead the Press Release
SALT LAKE CITY- Larry Gardner, 35, of Fort Duchesne, was sentenced to 65 months in federal prison, in addition to the 19 months in custody which Gardner has already served, after being convicted of distributing heroin and methamphetamine which resulted in the fatal overdose of an Uintah County woman and possessing a firearm after being convicted of a felony.
In the plea agreement, Gardner admitted that on February 3, 2019, in Uintah County, that his girlfriend overdosed and died after ingesting a fatal combination of heroin and methamphetamine which Gardner had supplied for her days earlier, at her request. Gardner also admitted that on the same day, he possessed a .22 caliber revolver and associated ammunition, knowing that he had previously been convicted of a crime that was a felony.
“The United States Attorney’s Office is focused on pursuing federal criminal charges against individuals who distribute illegal narcotics that result in fatal overdoses,” said Acting United States Attorney Andrea T. Martinez. “We hope that today’s sentence is a reminder to the community and narcotics dealers alike that distributing dangerous and illegal narcotics is not a victimless crime.”
“This case highlights the tragic consequences of the meth and opioid epidemic that is far-reaching in our country and here in Utah,” said Special Agent in Charge Dennis Rice of the Salt Lake City FBI. “The FBI and our law enforcement partners are committed to doing our part to curb this crisis. When someone dies as a result of your actions, and if you illegally possess firearms, you will be held accountable.”
Assistant United States Attorneys from the Utah U.S. Attorney’s Office prosecuted the case against Gardner. Special Agents from the FBI and Deputies from the Uintah County Sheriff’s Office conducted the investigation.
Utah Man Sentenced for Tax FraudRead the Press Release
https://www.justice.gov/opa/pr/utah-man-sentenced-tax-fraud
Utah Man Sentenced for Tax FraudRead the Press Release
A Utah man was sentenced to 51 months in prison today for tax evasion and corruptly endeavoring to obstruct the IRS.
According to evidence presented at trial and court documents, in March 2012, Louis Hansen, of Orem, presented the IRS a $342,669.41 check he knew was drawn on a closed bank account, in a fraudulent effort to evade paying taxes, penalties and interest he owed for a number of years. In June 2012, Hansen presented 10 additional checks to the IRS drawn on a different closed bank account in another attempt to fraudulently discharge his debt. The evidence showed that each of these 10 checks was made out in the amount of $425,000, and Hansen sent them to at least six different IRS offices.
In addition to the term of imprisonment, U.S. District Judge Howard C. Nielsen Jr. ordered Hansen to serve three years of supervised release and to pay approximately $342,699 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Andrea T. Martinez for the District of Utah made the announcement.
The case was investigated by special agents of the IRS – Criminal Investigation.
Assistant U.S. Attorney Kevin L. Sundwall and Special Assistant U.S. Attorney Andrew Kameros prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Midvale Man Sentenced for Arson of West Valley City Apartment BuildingRead the Press Release
SALT LAKE CITY – Luis Fernando Bueso Romero, 23, of Midvale, was sentenced to 60 months in federal prison for the arson of a West Valley City apartment building yesterday in United States District Court.
In the plea agreement, Bueso-Romero admitted that on February 1, 2020, he set fire to the Overlook Point Apartments located at 4612 South and 2930 West in West Valley City, Utah. Bueso-Romero admitted that he poured gasoline on the building and then ignited the gasoline with fire, causing the building containing eight apartments to catch fire and become engulfed in flames, which caused several residents to flee their homes. In documents filed with the court, Bueso admitted that he set fire to the apartment buildings because of the sense of betrayal that he felt towards his ex-girlfriend who had recently left him, and who occupied one of the Overlook Point Apartments at the time the arson occurred.
In addition to the 60 months sentence in federal prison, Bueso-Romero has been ordered to pay $885,335.95 dollars in restitution to victims of his crime and to serve three years of supervised release if he is not deported to Honduras upon his release.
“Arson is a serious crime that endangers the lives of innocent victims living inside of the buildings as well as the safety of the firefighters who are responsible for responding to the fire,” said Acting United States Attorney Andrea T. Martinez. “Federal and local fire investigators are extremely skilled at uncovering the sources and persons responsible for these acts and our hope is that the five-year federal prison sentenced handed down in this case will deter future arsons in our community.”
“This arson posed an extreme danger to the many innocent lives at the West Valley City apartment building, first responders and neighboring communities,” said ATF Special Agent-in-Charge David S. Booth. “Many lost their homes, treasured belongings, and sense of safety and security in their homes that day. We hope this sentencing brings a sense of justice, closure and peace to the many victims who are still recovering from this tragedy today.”
Assistant United States Attorneys from the U.S. Attorney’s Office for the District of Utah prosecuted this matter along with Special Agents and Investigators from the ATF, Patrol Officers and Detectives from the West Valley City Police Department, and Investigators from the West Valley City Fire Department, who conducted the investigation. The West Valley City Fire Department and the Unified Fire Department responded to the fire and conducted the suppression operations.Former Nurse Found Guilty of Fraudulently Obtaining and Tampering with Opioid Pain Killer Sentenced to 36 Months in Federal PrisonRead the Press Release
SALT LAKE CITY- Nathan Pehrson, 41, of Sandy, was sentenced to 36 months in federal prison in a United States District Court yesterday after being convicted at trial by a federal jury in the District of Utah of three counts related to fraudulently obtaining and tampering with the pain killing narcotic hydromorphone, a powerful schedule II opioid drug that is used to treat patients with moderate to severe pain. Upon his release from federal prison, Pehrson was also sentenced to an additional term of 36 months of federal supervised release.
A jury had previously found that during Pehrson’s employment as a nurse on a surgical and trauma ward, that he diverted hydromorphone from pre-loaded syringes for his personal use, and then replaced the pain medication with saline solution before they were placed back into circulation for medical use by other hospital staff on other patients. Pehrson was also convicted of making false statements to a special agent from the Food and Drug Administration about his illegal activity while under investigation for his crimes.
“We hope that this sentence of three years in federal prison deters every healthcare professional from using or diverting prescription narcotics,” said Acting United States Attorney Andrea T. Martinez. “We commend the work of the hospital staff who discovered and reported the illegal activity along with the work of our partners at the FDA for investigating this matter.”
“The FDA oversees the U.S. drug supply to ensure that it is safe and effective, and those who knowingly tamper with medicines put patients’ health at risk,” said Special Agent in Charge Charles L. Grinstead, FDA Office of Criminal Investigations Kansas City Field Office. “We will continue to protect the public health and bring to justice health care professionals who take advantage of their unique position and compromise their patients’ health and comfort by tampering with needed drugs.”
Assistant United States Attorneys from the Utah U.S. Attorney’s Office prosecuted the case against Pehrson. Special Agents from the Food and Drug Administration Office of Criminal Investigations conducted the investigation.
Final Defendant Pleads Guilty to Federal Charges Related to May 2020 Civil Unrest in Salt Lake CityRead the Press Release
SALT LAKE CITY – Christopher Isidro Rojas, 29, of Salt Lake City, pleaded guilty to one felony count of civil disorder, charged in a felony information, for his role in the burning of a Salt Lake City Police Department patrol car during the civil unrest which occurred in Salt Lake City on May 30, 2020.
In the plea agreement, Rojas admitted that, on May 30, 2020, he was protesting the killing of George Floyd when protesters turned violent and overturned a Salt Lake City Police Department patrol car. Rojas admitted that he participated in the burning of the overturned patrol car with the intent and purpose of interfering with law enforcement officers and that he used a cigarette lighter to ignite a piece of cloth that a co-defendant threw into the interior of the overturned patrol car.
During a previous hearing, prosecutors alleged that Rojas helped others rip a bumper from the overturned police car and then used a cigarette lighter to ignite a large piece of white cloth that was thrown into the police car by a co-defendant. Later that same afternoon, prosecutors alleged that Rojas was captured on video appearing to celebrate and bragging to others that he “put the cop car on fire.”
Rojas remains on home confinement until the date of his sentencing which is currently set for November 24, 2021. Rojas faces a maximum term of imprisonment of five years in prison, a payment of $2,500.000 in agreed upon restitution, and a term of supervised release of three years.
Co-defendant Lateesha Richards has previously been sentenced to 20 months in federal prison along with co-defendant Jackson Patton, who has been sentenced to 24 months federal prison, for their respective roles in the burning of the patrol car. Co-defendants Latroi Devon Newbins and Larry Raynold Williams Jr. have entered pleas of guilty and now await sentencing.
Assistant U.S. Attorneys from the Utah U.S. Attorney’s Office prosecuted the case. Special Agents from the ATF and the FBI, and detectives from the Salt Lake City Police Department, conducted the investigation.
Patton Sentenced to 24 Months in Federal Prison for Role in May 2020 Salt Lake City Civil UnrestRead the Press Release
SALT LAKE CITY – Jackson Stuart Tamowski Patton, 27, of Salt Lake City, was sentenced to 24 months in federal prison for his role in the burning of a Salt Lake City police car during the May 2020 civil unrest in Salt Lake City. Patton was also ordered to pay $2,500 in restitution and to serve 36 months of supervised release after completing his prison sentence.
Patton previously pleaded guilty to one felony count of civil disorder in federal court in May of 2021. In the plea agreement, Patton admitted that, on May 30, 2020, he was protesting the killing of George Floyd when protesters turned violent and overturned a Salt Lake City Police Department patrol car. Patton admitted that law enforcement officers were lawfully engaged in the performance of their official duties during the commission of the civil disorder and that he participated in the burning of the overturned patrol car with the intent and purpose of obstructing, impeding, and interfering with law enforcement officers. Patton also admitted to moving a burning cloth into the interior of the overturned patrol car, which accelerated the burning of the patrol car.
In a sentencing memorandum filed by prosecutors, text messages sent by Patton during the days leading up to and during the protest were submitted to the court. On May 29, 2020, the day before the Salt Lake City protest, Patton texted the following to his circle of friends, “what time does the riot start tomorrow,” and “do [I] bring machetes to the riot tomorrow” and “we can all have one.” He then texted, “yes dude. I’m turning it into a riot.” On May 30, 2020, the day of the riot, Patton texted, “[I] need to figure out how to turn it into [a riot].” That same day, Patton texted “all I gotta do is sneakily throw a rock through a window” and immediately followed up with “of the police station” and that “[I]’m breaking things.” In a separate text string, Patton stated to a friend that “[I]’m fully going down there with the intention of breaking things. [I]f you don’t want to be near me I understand. [B]ut people need to know that [S]alt [L]ake is upset too.” After the civil disruption, Patton texted to a group of friends that “lol [ a friend] filmed me starting the fire…we just a [sic] [expletive] a cop car up with a cop in it…he literally had to curb hop his car to get out.” Patton later texted “look who started the fire lol.”
During the course of the prosecution, multiple terabytes of data, including video and still images, were submitted as evidence in the case. Sources of the evidence included multiple social media platforms, as well as evidence obtained from multiple state, federal, and local law enforcement agencies, and evidence received from private citizens.
On August 3, 2021 co-defendant Lateesha Richards was sentenced to 20 months in federal prison for her role in the burning of the patrol car. Co-defendants Latroi Devon Newbins and Larry Raynold Williams Jr. entered a plea of guilty and now await sentencing. Defendant Christopher Isidro Rojas’ case remains set for trial later this year.
Assistant U.S. Attorneys from the Utah U.S. Attorney’s Office prosecuted the case. Special Agents from the FBI Joint Terrorism Task Force, along with Special Agents from the ATF, and detectives and officers from the Salt Lake City Police Department, conducted the investigation.
Salt Lake City Man Sentenced for Distribution of Alpha-PHP Across Wasatch FrontRead the Press Release
SALT LAKE CITY – Brent Orton, 63, of Salt Lake City, has been sentenced to 51 months in federal prison for possessing the Schedule 1 narcotic Alpha Pyrrolidinohexanophenone, commonly known as “Alpha PHP,” with the intent to distribute the narcotic.
In June of 2021, Orton plead guilty to a one-count criminal information filed by federal prosecutors charging him with possession with intent to distribute Alpha PHP. In the plea agreement, Orton admitted to receiving a package of Alpha PHP with the intent to distribute the illegal narcotic.
In a sentencing memorandum filed by prosecutors, it was alleged that Orton had imported and distributed large amounts of Alpha-PHP for two years, and that Orton had distributed between 575,000 to 4,600,000 doses of the drug in Utah, which sold for between $300 and $500 dollars a gram. It was further alleged that Orton used his daughter’s friends as customers, as well as using them to make inroads into the drug trafficking business.
Alpha-PHP is a Schedule 1 controlled substance and is a compound of the substituted cathinone and substituted pyrrolidine chemical classes. It is a synthetic variant of a drug more commonly referred to as “bath salts.” In general, the intensity of the effects of this substance is comparable to strong stimulants such as methamphetamine, MDPV and alpha-PVP. Alpha-PHP is reported to mimic the effects of cocaine and methamphetamine. The adverse effects associated with alpha-PHP abuse included vomiting, agitation, paranoia, hypertension, unconsciousness, tachycardia, seizures, cardiac arrest, rhabdomyolysis, or death.
“Synthetic drugs like Alpha-PHP are deadly compounds that endanger our communities,” said Acting United States Attorney Andrea Martinez. “The United States Attorney’s Office is focused on pursuing criminals who import and distribute these illegal narcotics into our community.”
“Dangerous, synthetic drugs like bath salts have no place in our community and HSI will investigate those who import and distribute these deadly substances,” said Steven Cagen, Special Agent in Charge, Homeland Security Investigations, Denver Field Division. “We’re grateful to our law enforcement partners for their investigative help and the U.S. Attorney’s Office for prosecuting the case. Distributors like Orton who profit off this poison have no place in our community.”
Assistant U.S. Attorneys from the Utah United States Attorney’s Office and a Special Assistant United States Attorney from the U.S. Department of Homeland Security, are prosecting the case. Special Agents from Homeland Security Investigations and Officers from Customs and Border Protection conducted the investigation.
Tooele Veterinarian Ordered to Pay $78,455 and Limit Prescribing for Failing to Properly Track and Control OpioidsRead the Press Release
SALT LAKE CITY – Dr. Joe Roundy, a licensed veterinarian and the owner of the Tooele Veterinary Clinic in Tooele, Utah, has been ordered to pay the United States $78,455 and restrict his prescribing of opioids and other controlled substances for violations of multiple provisions of the Controlled Substances Act (“CSA”).
According to the allegations made by the United States, Dr. Roundy failed to properly inventory, track, and maintain control over controlled substances, including opioids such as oxycodone and morphine over a period of several years of practicing as a veterinarian and operating an active animal clinic. By not properly inventorying, tracking, maintaining control over, and storing the controlled substances, he violated the Controlled Substances Act. These violations were discovered by DEA investigators during an on-site inspection of Dr. Roundy’s veterinary clinic, which included an audit of his drug control practices. DEA investigators found CSA violations with respect to all eighteen of the eighteen controlled substances audited. Dr. Roundy could not locate or account for a significant number of the controlled substances the DEA audited.
“When those trusted to prescribe dangerous opioids and other medications like Dr. Roundy don’t track and control their opioids carefully, they create the potential to contribute to the menace of opioid abuse,” said Acting U.S. Attorney Andrea Martinez. “The court’s order has cost Dr. Roundy a significant monetary penalty and has severely restricted his ability to prescribe and administer powerful opioids and other medications.”
“The Drug Enforcement Administration is committed to ensuring that those entrusted with the ability to prescribe controlled substances, regardless of their profession, do so in a safe, responsible manner,” said Utah DEA Assistant Special Agent in Charge Michael J. Tinkler. “This investigation highlights the critical role that DEA Diversion Investigators play in safeguarding the public from the dangers associated with the potential misuse of prescription drugs”.
This matter was investigated by the U.S. Drug Enforcement Administration, Diversion Control Division, in conjunction with the United States Attorney’s Office.
The statements in this release are only allegations. In entering into a civil settlement and agreeing to the court’s entering an order against him, Dr. Roundy did not admit to liability, and the order indicates that the parties entered into the settlement to avoid the uncertainty and expense of further litigation.
Assistant U.S. Attorney Joel Ferre handled this matter on behalf of the United States.
Justice Department Files Suit to Stop Utah Physician from Issuing Opioid and Other Prescriptions in Violation of the Controlled Substances ActRead the Press Release
https://www.justice.gov/opa/pr/justice-department-files-suit-stop-utah-physician-issuing-opioid-and-other-prescriptions
Eleven Indicted for Distribution of Heroin Across Wasatch FrontRead the Press Release
SALT LAKE CITY – Eleven members of a Wasatch Front heroin distribution ring face federal charges for distributing heroin in Utah and Idaho in an indictment unsealed Monday in federal court.
The indictment is based on a multi-month wiretap investigation into a drug trafficking organization that conspired to distribute multiple kilograms of heroin along the Wasatch Front, including Utah County, Salt Lake County, Tooele County, and Davis County, and into Idaho. During the investigation, close to 2 kilograms of heroin were seized, with multiple kilograms running through the organization since at least December of 2020. Five firearms, two of which are stolen, were also seized during the investigation.
During the approximately six-month investigation, agents completed 13 controlled purchases of heroin from members of the distribution ring. The organization in Utah operated as a cell of a much larger network of drug trafficking activity that originated in Mexico and that includes cells in Colorado and other states.
Antonio Giron-Fernandez, 39, of Orem, who is alleged to be the leader of the Utah distribution network, is charged with conspiracy to distribute heroin, distribution of heroin, and illegally reentering the United States after being removed. Also charged in the indictment are: Fernando Antonio Medina-Garcia, 23, of Orem, who is charged with conspiracy to distribute heroin, distribution of heroin, and possession of heroin with the intent to distribute; Juan Carlos Heredia-Perez, 21, of Orem, who is charged with conspiracy to distribute heroin; Jesus Alberto Zarate-Pacheco, 26, of Orem, who is charged with conspiracy to distribute heroin and the possession of heroin with the intent to distribute; Eric Ryan Francis, 35, of West Valley City, who is charged with conspiracy to distribute heroin, possession of heroin with the intent to distribute, and being a convicted felon in possession of a firearm; Michael Shane Ellison, 47, of Provo, who is charged with conspiracy to distribute heroin; Jacob Elizardo Aragon, 28, of Cottonwood Heights, who is charged with conspiracy to distribute heroin, possession of heroin with the intent to distribute, and for being a user of controlled substances in possession of a firearm; Marc Anthony Pagni, 33 of Salt Lake City, who is charged with conspiracy to distribute heroin; Christina Ann Chance, 40, of Nampa, Idaho, who is charged with conspiracy to distribute heroin and the possession of heroin with the intent to distribute; Kimberly Jo Hancock, 56, of Eagle, Idaho, who is charged with conspiracy to distribute heroin and the possession of heroin with the intent to distribute; and, Jonathan Christopher McGuire, 41, of West Valley City, who is charged with conspiracy to distribute heroin.
Assistant U.S. Attorneys from the Utah U.S. Attorney’s Office are prosecting the case. Special Agents from FBI’s Safe Streets Task Force, including detectives from the West Valley City Police Department, along with detectives from the Davis Metro Narcotics Task Force and the Layton City Police Department, conducted the investigation.
Indictments are not findings of guilt. Defendants charged in indictments are presumed innocent unless or until proven guilty in court.
Justice Department Files Suit to Stop Utah Physician from Issuing Opioid and Other Prescriptions in Violation of the Controlled Substances ActRead the Press Release
A federal judge entered a preliminary injunction today barring a Utah physician from issuing prescriptions for controlled substances during the pendency of a civil enforcement action filed by the government.
In a complaint filed in U.S. District Court for the District of Utah, the government alleges that Dr. Sean Ponce, a medical doctor licensed in Utah, unlawfully issued controlled substance prescriptions in violation of the Controlled Substances Act. The complaint alleges that Dr. Ponce catered to customer requests for opioid and other controlled substance prescriptions, at times using text messages to arrange the exchange of cash for prescriptions. The complaint alleges that Dr. Ponce used office space in Cottonwood Heights, Utah, to meet with cash-paying customers to maintain the guise of a medical practice despite the routine lack of legitimate examinations, medical findings supporting the prescriptions, or bona-fide doctor-patient relationships. U.S. District Judge David B. Barlow entered a stipulated preliminary injunction that the United States filed along with the complaint. The complaint seeks a permanent injunction and civil penalties.
“The opioid addiction epidemic devastates communities,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice will take action against those who harm patients and their families by unlawfully distributing controlled substances behind a veneer of medical legitimacy.”
“The U.S. Attorney’s Office and the Department of Justice are committed to protecting Utahns from medical professionals who fuel the opioid epidemic and violate the public trust,” said Acting U.S. Attorney Andrea T. Martinez for the District of Utah. “We will employ every available resource to keep our communities safe and to maintain accountability in the medical community.”
“This investigation is a prime example of an unscrupulous physician furthering the opioid crisis in America,” said Special Agent in Charge Deanne Reuter with the Drug Enforcement Administration’s (DEA) Denver Field Division. “When a doctor cares more about lining his pockets than the health and welfare of his patients, the whole community suffers. Whether transnational drug traffickers selling fentanyl-laced pills or medical providers violating the Controlled Substances Act, DEA will not falter in our pursuit of those who contribute to the U.S. addiction problem.”
According to the complaint, Dr. Ponce prescribed excessive doses of powerful opioids, often in dangerous combination with other controlled substances. Some of those prescriptions allegedly went to multiple individuals purportedly residing together at the same addresses. The complaint alleges that Dr. Ponce routinely issued early refills for prescriptions, failed to make objectively legitimate diagnoses, did not provide meaningful evaluation or treatment, and engaged in a pattern of selling prescriptions for powerful opioids and other controlled substances. The complaint also alleges that Dr. Ponce violated the False Claims Act by causing claims to be submitted by customers who filled his prescriptions at pharmacies covered by federal health care programs.
The investigation is being conducted by the DEA’s Tactical Diversion Squad in the Salt Lake City District Office.
The case is being handled by Assistant U.S. Attorney Joel Ferre of the District of Utah and Trial Attorneys Yolanda D. McCray Jones and Scott B. Dahlquist of the Civil Division’s Consumer Protection Branch.
The claims made in the complaint are merely allegations that the United States must prove if the case proceeds to trial.
Federal Jury Finds Former Nurse Guilty of Fraudulently Obtaining and Tampering with Opioid Pain KillerRead the Press Release
SALT LAKE CITY- Nathan Pehrson, 41, of Sandy, was convicted by a federal jury in the District of Utah of three counts related to fraudulently obtaining and tampering with the pain killing narcotic hydromorphone, a powerful schedule II opioid drug that is used to treat patients with moderate to severe pain.
The jury found that during Pehrson’s employment as a nurse at an Intermountain Healthcare facility on a surgical and trauma ward, that he diverted hydromorphone from pre-loaded syringes for his personal use, replaced the pain medication with saline solution, and then returned the syringes containing greatly reduced amounts of the pain killer hydromorphone for medical use by other hospital staff. Pehrson was also convicted of making false statements to a special agent from the Food and Drug Administration about his illegal activity while under investigation for his crimes. Pehrson’s sentencing is scheduled for October 12th.
“Today’s guilty verdicts are proof that healthcare providers will be held accountable for stealing, using, or tampering with opioid pain medications meant for patients that are suffering,” said Acting United States Attorney Andrea T. Martinez. “The opioid epidemic has many faces, and no one is immune from the problems that we face in society with drug addiction. I commend the hospital staff who reported the defendant’s illegal activity to federal law enforcement.”
“The FDA oversees the U.S. drug supply to ensure that it is safe and effective, and those who knowingly tamper with medicines put patients’ health at risk,” said Special Agent in Charge Charles L. Grinstead, FDA Office of Criminal Investigations Kansas City Field Office. “We will continue to protect the public health and bring to justice health care professionals who take advantage of their unique position and compromise their patients’ health and comfort by tampering with needed drugs.”
Assistant United States Attorneys from the Utah U.S. Attorney’s Office prosecuted the case against Pehrson. Special Agents from the Food and Drug Administration Office of Criminal Investigations conducted the investigation.
Aaron Shamo’s Co-Defendants Sentenced in Dark Web Narcotics Distribution CaseRead the Press Release
SALT LAKE CITY – All eight of the co-defendants in the case against Aaron Michael Shamo have been sentenced after a series of sentencing hearings took place this week in a Utah federal court. Seven co-defendants were sentenced throughout the week, including Jonathon “Luke” Paz, Drew Wilson Crandall, Alexandrya Marie Tonge, Katherine Lauren Anne Bustin, Mario Anthony Noble, Sean Michael Gygi, and Ana “Gabby” Noriega, while Christopher Sean Kenny was sentenced last month in a separate hearing. All defendants previously plead guilty to charges related to their involvement in Shamo’s multi-million dollar nationwide dark net drug trafficking organization that distributed more than a half million counterfeit pills throughout the country.
During a trial in federal court in August of 2019, a jury found Shamo guilty of organizing and directing a drug trafficking organization that imported fentanyl and alprazolam from China and used the drugs to manufacture fake oxycodone pills made with fentanyl and counterfeit Xanax tablets. The evidence at trial showed that more than 90 of Shamo’s customers died of drug overdoses. However, the total number of victims could not be calculated since Shamo sold many of his fentanyl laced fake oxycodone pills in bulk to redistributors and their customers could not always be located by investigators. Shamo was sentenced to life in prison by U.S. District Court Judge Dale A. Kimball in October of 2020.
The sentences handed down in federal court for Shamo’s co-defendants are as follows:
Jonathon “Luke” Paz, 33, now of Fort Walton Beach, Florida, was sentenced to 60 months in federal prison for his role in helping to run the dark web drug distribution empire founded by Aaron Shamo. Paz was convicted of conspiracy to manufacture a controlled substance containing fentanyl, two counts of knowingly adulterating drugs while holding them for sale, and conspiracy to commit money laundering. In the plea agreement, Paz admitted to operating pill presses for Aaron Shamo and pressing counterfeit Xanax containing alprazolam and counterfeit oxycodone pills containing fentanyl. Paz admitted that he developed the process and recipe to create the counterfeit fentanyl-laced oxycodone pills, and that he pressed almost 500,000 of these counterfeit pills. Paz turned over $800,000 in U.S. currency and 32.8 bitcoins to federal investigators upon his arrest that were proceeds from his involvement in the drug distribution with Shamo.
Drew Wilson Crandall, 35, of Draper, was sentenced to 54 months in federal prison for his role in helping to run the dark web drug distribution empire founded by Aaron Shamo. Crandall was convicted of conspiracy to distribute fentanyl, conspiracy to distribute alprazolam, and conspiracy to commit money laundering. In the plea agreement, Crandall admitted that he and Aaron Shamo imported and distributed controlled substances in Utah and around the country using the Pharma-Master dark web site developed by Shamo. Crandall also admitted that he helped Shamo mix the illegal narcotics in mason jars and used pill presses to turn the mixture into pill form. After having his own misgivings about the scheme, Crandall sold his stake in the company to Shamo for $40,000 and moved to New Zealand in November of 2015, but was later lured back into the scheme by Shamo and continued to work in customer service and handled complaints and inquiries from Shamo’s customers. Crandall was arrested in 2017 by federal law enforcement when he returned to Hawaii to get married to his fiancé.
Alexandrya Marie Tonge 29, of South Jordan, was sentenced to 36 months in federal prison for her role in Shamo’s drug trafficking network. Tonge was convicted of conspiracy to distribute fentanyl, conspiracy to distribute alprazolam, possession of fentanyl with the intent to distribute, using the U.S. mail to commit drug trafficking, and conspiracy to commit money laundering. In the plea agreement, Tonge admitted to being paid to ship and receive packages containing illegal narcotics on behalf of Aaron Shamo and Drew Crandall, and to using their bitcoin wallets to pay for expenses related to the drug trafficking organization.
Katherine Lauren Anne Bustin, 31, of South Jordan, was sentenced to 36 months in federal prison for her role in Shamo’s dark web drug trafficking network. Bustin was convicted of conspiracy to distribute fentanyl, conspiracy to distribute alprazolam, possession of fentanyl with the intent to distribute, using the U.S. mail to commit drug trafficking, and conspiracy to commit money laundering. In the plea agreement, Ms. Tonge admitted to being paid to ship and receive packages containing illegal narcotics on behalf of Aaron Shamo and Drew Crandall, and to using their bitcoin wallets to pay for expenses related to the drug trafficking organization. Bustin also admitted that Shamo paid her and Tonge $7,000 per month to package thousands of shipments of narcotics to Shamo’s customers, including placing the correct number of pills in the customers’ orders and writing false return addresses on the packages.
Mario Anthony Noble, 32, of Midvale, was sentenced to 30 months in federal prison for his role in Shamo’s dark web drug trafficking network. Noble was convicted of conspiracy to distribute fentanyl and conspiracy to distribute alprazolam. In his plea agreement, Noble admitted to being recruited by Shamo to be the “backbone” of Shamo’s dark web store and to manage customer service along with processing orders of various controlled substances. These controlled substances included alprazolam tablets and pills marked like oxycodone, but which contained fentanyl. Noble admitted that when he worked for Shamo, part of his daily duties included pulling together a list of customers, their mailing addresses, and the types and quantities of drugs they ordered. Once he created these lists, he would send them in an encrypted form, through an email account Aaron Shamo created, to co-conspirators who were responsible for packaging the orders and affixing mailing labels and postage. Noble admitted that he processed thousands of tablets containing alprazolam and pills containing fentanyl.
Sean Michael Gygi, 31 of Midvale, was sentenced to 24 months in federal prison for his role in Shamo’s dark web drug trafficking network. Gygi was convicted of conspiracy to distribute fentanyl, conspiracy to distribute alprazolam, importing fentanyl into the United States, and using the U.S. mail to commit drug trafficking. In his plea agreement, Gygi admitted to accepting shipments of illegal narcotics from China at his home on behalf of Aaron Shamo. Gygi also admitted that he also served as a runner for Shamo and picked up packages from co-defendants Tonge and Bustin five nights a week and delivered them to multiple post offices around the Salt Lake Valley to avoid detection.
Ana “Gabby” Noriega, 30, of West Jordan, was sentenced to 36 months of probation for her role in assisting Aaron Shamo’s drug trafficking operation. Noriega was convicted of conspiracy to commit money laundering, and in her plea agreement, admitted to working for Shamo for six months in 2016 in a role that was equivalent to an Executive Assistant. Noriega admitted that she bought supplies and other items for Shamo to use in furtherance of his drug trafficking operation and that she used money to purchase items that she knew was obtained from the sale of illegal narcotics.
Christopher Sean Kenny, 46, of Midvale, was sentenced to 120 months of imprisonment in June of 2021. Kenny was convicted of conspiracy to distribute fentanyl and engaging in money laundering. In the plea agreement, Kenny admitted that he worked as a middleman for Aaron Shamo and helped Shamo sale fentanyl laced oxycodone pills to other drug dealers in Utah, who would then sell Shamo’s pills to their customers. Kenny admitted that he was paid approximately one dollar per pill for this service and that he distributed approximately 140,000 pills. Kenny then bought a Ford F150 in August of 2016 using cash that he obtained from selling narcotics for Shamo.
“Aaron Shamo’s life sentence, and the sentences imposed on his co-defendants, send a clear message to anyone involved in the distribution of illegal narcotics. Law enforcement will catch you, and you will be punished for your role in the death and destruction that you cause in our communities,” said Acting United States Attorney Andrea Martinez. “As the opioid epidemic continues to take its destructive toll, we will remain vigilant and continue to aggressively prosecute those who violate the controlled substance laws of the United States. I send my deepest condolences to the families of our victims. We know you will never be made whole, but we hope that this will provide some measure of closure and allow you to heal.”
“There is no way to overstate the deadly severity of the crimes these defendants committed. They assisted one of the most prolific opioid dealers this state has ever encountered, and they are complicit in the destructive and too often-fatal consequences that resulted,” said Utah Attorney General Sean D. Reyes. “Regardless of the length of their sentence, they must live with the fact that they profited from crimes that ruined countless lives. I would like to express my sincere condolences to the families around the world who lost loved ones and whose lives were devastated by these crimes. I am grateful to the fine DEA agents and prosecutors of the DEA, the U.S. Attorney’s Office, and the Utah AG Office in this case. I also appreciate Judge Kimball’s careful handling and thoughtful decisions in this case.”
“The amount of Fentanyl distributed throughout the U.S. as a result of the operations these criminals supported devastated communities throughout the country,” said Steven Cagen Special Agent in Charge, Homeland Security Investigations Denver. “We will continue to investigate those that put personal profits above the lives of people in their communities and bring deadly drugs into the U.S. for distribution. Justice was served and we’re gratified these co-conspirators will be behind bars for the foreseeable future.”
“The dismantlement of this organization, which was responsible for multiple overdose related deaths, highlights the success of cooperative efforts between law enforcement agencies within the state of Utah,” said Michael J. Tinkler, Utah DEA Assistant Special Agent in Charge.
“It’s another example of the strength of our partnerships and unified approach in confronting criminal organizations targeting our communities.”
“The opioid crisis is still with us and continues to expand. Those who contribute to the breadth and depth of this crisis carry the burden of the devastation they impose on families and communities across the nation,” said Special Agent in Charge Charles L. Grinstead, FDA Office of Criminal Investigations Kansas City Field Office. “We will continue to investigate and bring to justice those who facilitate illicit access to opioids.”
“Mr. Shamo and his associates put at risk countless individuals addicted to opioids, through the sale of dangerous counterfeit fentanyl laced pills. This drug empire affected the entire nation, and today marks a final step in justice for those who caused this great tragedy for so many,” said IRS Criminal Investigation Special Agent in Charge, Albert Childress. “We will continue to work together with our law-enforcement partners to dismantle criminal enterprises like this, who intend to financially profit from the exploitation and suffering of the American people.”
“Battling and keeping illegal narcotics - especially synthetic opioids - out of the U.S. Mail is one of the highest priorities of the U.S. Postal Inspection Service,” said Utah Postal Inspection Service Team Leader Jared Bingham. “In today’s world of Dark Web and cyber crimes, drug dealers don’t always fit the stereotypical image of years past where the danger and effect of their crimes was confined to local jurisdictions. The Dark Web allowed the defendants in this case to operate their criminal organization from the safety and comfort of their own homes. However, the danger and lethal effects of their drug dealing enterprise was not limited to individual cities and towns. Rather, it touched virtually every corner of our nation, and it’s wake of death and pain is just as wide. In cases like this, it is important that justice not only be served, but that it send the right message to would be Dark Web criminals. The Postal Inspection Service is grateful to the U.S. Attorney’s Office and our federal law enforcement partners for their diligence in investigating and prosecuting this important case.”
Assistant U.S. Attorneys and Special Assistant U.S. Attorney’s from the Utah Attorney General’s Office prosecuted the cases. Special Agents from the DEA’s Metro Narcotics Task Force, Homeland Security Investigations, IRS Criminal Investigations, Food and Drug Administrations Office of Criminal Investigations, and Inspectors from the United States Postal Inspection Service conducted the investigation.
Two Sentenced for PPP Loan Application Fraud Involving Trucking CompanyRead the Press Release
SALT LAKE CITY – Hubert Ivan Ugarte 52, of Draper, and Lisa Bradshaw Rowberry, 49, of Provo, have both been sentenced for their roles in unlawfully obtaining a Paycheck Protection Program (PPP) loan for Frisbu Trucking, Incorporated, where they were both employed.
Rowberry was sentenced to prison for a term of 12 months and a day last week in federal court. Her co-defendant, Hubert Ivan Ugarte, was sentenced to a term of 36 months in federal prison back in June for his role in the PPP loan fraud scheme. Ugarte’s sentence will run concurrently with a sentence that Ugarte received in a related case involving the bribery of officials at the Utah FedEx Ground Hub.
According to plea agreements in this case, Ugarte was the owner and operator of Frisbu Trucking, Inc. Ugarte hired Rowberry to work for Frisbu after she had been terminated from her role as an Assistant Vice President of U.S. Bank for engaging in financial transactions with Ugarte that violated U.S. Bank’s ethical policies. After Ugarte was indicted by a federal grand jury for his role in the FedEx bribery scheme, Ugarte’s many trucking businesses began to struggle because they were dependent on Ugarte’s ability to engage in business with the FedEx Ground Hub. In order to remain in business, Ugarte and Rowberry fraudulently applied for a PPP loan authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and obtained $210,000 in loan funding. However, Rowberry and Ugarte both unlawfully failed to disclose that Ugarte was under federal indictment for his role in the FedEx bribery case.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to millions of Americans suffering from the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized more than $300 billion in additional PPP funding, and Congress again authorized more than 284 billion in Additional PPP funding in 2021.
PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be entirely forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses a certain amount of the PPP loan proceeds on payroll expenses.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Assistant United States Attorneys in the Utah U.S. Attorney’s Office prosecuted the case against Rowberry and Ugarte. Special Agents from the FBI, IRS, and the Department of Transportation Office of Inspector General conducted the investigations.
U.S. Attorney’s Office Agrees to Termination of Federal Monitorship Requirement for Utah Transit AuthorityRead the Press Release
SALT LAKE CITY- The Utah U.S. Attorney’s Office has agreed to the termination of a federal monitorship agreement with the Utah Transit Authority based upon UTA’s substantial compliance with the monitorship requirements and a federal non-prosecution agreement entered into by the parties in 2017.
In April of 2017, UTA and the U.S. Attorney’s Office for the District of Utah entered into a non-prosecution agreement arising out of a federal investigation into UTA’s operation of mass public transit services, application for federal grants and funding, expenditure and use of federal funds, or the negotiation for, and/or acquisition of, real property, equipment and other capital improvements related to UTA operations. The non-prosecution agreement was driven in large part by UTA’s acknowledgment and recognition of the need for improved institutional conformity with financial and ethical requirements pertaining to the following four core issues of focus during the investigation:
- Inadequate controls over federal funds and drawdowns from federal grants;
- Improper handling and disclosure of property acquisition and disposition, including inadequate oversight of transit-oriented development projects;
- Non-compliance with ethical standards, resulting in benefits to UTA employees and/or Board members; and
- Improper approval of executive bonuses.
A critical component of the non-prosecution agreement involved the retention of a third-party monitor to ensure the continued implementation of institutional improvements and reforms, and to recommend additional improvements and reforms, particularly those intended to address the four core issues. On September 5, 2018, UTA formally retained a team of attorneys from the law firm of Coblentz Patch Duffy & Bass (the “Monitor”) to conduct the UTA federal monitorship, broken down into three phases.
The first phase of the monitorship was an investigatory inquiry involving interviews of UTA employees and a review of UTA records aimed at identifying the institutional problems within UTA that led to the lack of conformity with financial and ethical requirements related to the four core issues identified in the Non-Prosecution Agreement. This phase was completed by UTA in July of 2019.
The second phase of the monitorship was focused on UTA’s adoption of critical reforms related to the same four core issues identified in the Non-Prosecution Agreement. Phase two included a review of the implementation and the effectiveness of reforms recommended by UTA and the Monitor. The reforms included:
- Clarification of the Local Advisory Council’s role and authority over UTA’s major capital projects and its interaction with UTA’s three-member Board;
- New policies and standard operating procedures related to the four core issues;
- New and revised conflict of interest policies and procedures, along with ethics training;
- Implementing an ethics hotline and a completely anonymous process for whistleblowers to raise concerns about ethics;
- Establishing an independent risk management function, an additional layer of checks and balances targeting future risks and the functionality of implemented controls;
- New or revised polices concerning ethics and gift parameters for procurement professionals, along with safeguards designed to identify and eliminate malfeasance during the approval process of any transit-oriented developments.
The third phase of the monitorship involved a final report issued by the Monitor. Based upon the review of the Monitor’s interim and final reports, and the U.S. Attorney’s Office ongoing review and confirmation of UTA’s adherence to key financial and ethical requirements pertaining to the four core issues identified in the non-prosecution agreement, the United States Attorney’s Office has notified UTA that the federal monitorship is deemed completed and terminated, effective immediately.
“The successful completion of the Monitorship is the product of effective collaboration between UTA and the Monitor to assess the effectiveness of prior reforms and implement new reforms, all aimed at putting UTA in an ideal position to continue to elevate and maintain a high level of financial and ethical integrity going forward,” said Acting United States Attorney Andrea T. Martinez. “The U.S. Attorney’s Office is pleased with the fruits of its non-prosecution agreement, the Monitorship, and UTA’s commitment to doing things right as it strives to meet the needs of the Utah community. Equally important is the public release of the Final Monitorship Report, ensuring full transparency of the manner and means through which the Monitorship was brought to a successful completion.”
Thirty-Two Members and Associates of Norteños Charged in Methamphetamine, Heroin and Fentanyl Trafficking with CJNG Drug CartelRead the Press Release
SALT LAKE CITY – The grand jury issued a 27-defendant, 34-count indictment on Wednesday, charging twenty-seven individuals associated with the Nortenos gang for their roles in a conspiracy to distribute methamphetamine, fentanyl, and heroin across the Wasatch Front. Previously, it returned five other indictments relating to this investigation and operation. The charges follow joint Organized Crime Drug Enforcement Task Force operations conducted by the Drug Enforcement Administration’s Metro Narcotics Task Force (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Unified Police Department’s Metro Gang Unit (MGU), the Internal Revenue Service’s Criminal Investigation Division (IRS), and the United States Marshals Service.
These charges are the result of an investigation beginning in September of 2020 in Utah. During the investigation, law enforcement demonstrated extensive cooperation across the Salt Lake Valley, as the DEA, ATF, Unified Police Department’s Metro Gang Unit, IRS, and the United States Marshals Service conducted a proactive investigation targeting drug and firearms trafficking activities of Salt Lake City gang members, specifically Norteños and their associates This operation follows a previous 38-defendant federal investigation and indictments of Norteños and their associates trafficking in methamphetamine and heroin with the Sinaloa Cartel in February 2019.
During this new operation, law enforcement officers seized more than 42 pounds of methamphetamine, seven pounds of heroin, 5,000 fentanyl pills, 71 grams of fentanyl powder, 15 firearms, and more than $25,000. Using court-authorized investigative techniques, law enforcement learned that the primary narcotics supplier for this group was Jalisco New Generation Cartel (CJNG). Investigators further estimate that the organization and its members are responsible for more than 420 pounds of methamphetamine and 50 pounds of heroin being transported to, and distributed in, the Salt Lake Valley during 2020 and 2021. Evidence gathered during the investigation demonstrate that the defendants were involved in transporting drugs from Mexico into the United States; moving the drugs to Salt Lake City; distributing the drugs to re-distributors who distributed the drugs throughout the community; and collecting and transporting drug proceeds back from Utah to Mexico.
Acting United States Attorney for the District of Utah Andrea T. Martinez announced the charges today along with DEA Assistant Special Agent in Charge Jay Tinkler, ATF Resident Agent in Charge Michael Minichino, Salt Lake County Sheriff Rosie Rivera, U.S. Marshal for the District of Utah Matthew Harris, and IRS-Criminal Investigations Special Agent Stephen Washburn.
The largest indictment returned on Wednesday charges 27 individuals with 34 federal counts, including continuing criminal enterprise, conspiracy to distribute methamphetamine, heroin, and fentanyl, conspiracy to launder money, along with several distribution and possession with intent to distribute narcotics charges, and several additional firearms charges.
Those charged in the indictment are:
- Luis Cuna-Vigil, 35, of Rosarito, Mexico;
- Jesus Avila-Garcia, 46, of Salt Lake City;
- Joe Robert Rael, aka “Jojo,” 52, of Salt Lake City;
- Jerry Philip Vigil, aka “Nino,”47, of Bountiful;
- Jennifer Lopez-Lopez, 20, of San Marcos, California;
- Maria Isla-Avila, aka “Sky,” 22, of Escondido, California;
- Martin Verduzco-Muro, aka “Lalo,” 28, of Bountiful;
- Edward David Lucero, 54, of Sandy;
- Linda Hernandez-Alvarez, 34, of Salt Lake City;
- Brian Michael Fioravanti, 34, of Salt Lake City;
- Jeffrey Kraig Ellis, 60, of West Valley City;
- Patrice Raelynn Estes, 49, of Salt Lake City;
- Leandro Cortez Ochoa Lovato-Howells, 40, of Salt Lake City;
- Mario Alberto Lovato, aka “Grump,” 40, of Salt Lake City;
- Joseph Raymond Trujillo, aka “Qujo,” 31, of West Valley City;
- Celina Alexandra Garcia, “Baby G,” 26, of Salt Lake City;
- Pete Vince Espinoza, 37, of Salt Lake City;
- Judy Ann Maestas, 30, of Salt Lake City;
- Felicia Nicole Mingura, aka “Fela,” 34, of Salt Lake City;
- Erika Rachelle Vigil, 30, of West Valley City;
- Jessica LeAnn Vigil, 30, of Sandy;
- Anthony James Runion, aka “Lil Ace,” 19, of Salt Lake City;
- Richard Lawrence Trujillo, 32, of Salt Lake City;
- Brandon Jay Perrault, aka “Trip,” 42, of Salt Lake City;
- Pedro Jurado, 56, of Midvale;
- Kyle Jimenez-Cuna, 18, of Bountiful.
The grand jury previously returned five indictments for defendants relating to this operation. Included in those additional five indictments are:
- Linda Rose Garcia, 33, of Salt Lake City, charged with being a felon in possession of firearm;
- Joseph Paul House, aka “Chino,” 36, of Taylorsville, charged with being a felon in possession of firearm;
- Victor Jurado, 34, of Salt Lake City, charged with being a felon in possession of firearm;
- Daniel Maestas, 48, of Salt Lake City, charged with possession of methamphetamine with intent to distribute;
- David Soto-Acosta, aka “Droops,” 26, of Salt Lake City, charged with being a felon in possession of a firearm.
Assistant U.S. Attorneys Stephen L. Nelson, Jamie Z. Thomas, and Stewart M. Young in the Utah U.S. Attorney’s Office are prosecuting the case, along with Assistant District Attorney Adam Blanch from the Salt Lake County District Attorney’s Office. Special Agents from the DEA’s Metro Narcotics Task Force, ATF, and IRS Criminal Investigation Division, investigators from the Unified Police Department’s Metro Gang Unit, and Deputies from the United States Marshals Service, conducted the investigation.
Indictments are not findings of guilt. Defendants charged in indictments are presumed innocent unless or until proven guilty in court.
Defendant Pleads Guilty to Charges Related to May 2020 Civil Unrest in Salt Lake CityRead the Press Release
SALT LAKE CITY – Jackson Stuart Tamowski Patton, 27, of Salt Lake City, pleaded guilty to one felony count of civil disorder, charged in a felony information, for his role in the burning of a Salt Lake City Police Department patrol car during the civil unrest which occurred in Salt Lake City on May 30, 2020.
In the plea agreement, Patton admitted that, on May 30, 2020, he was protesting the killing of George Floyd when protesters turned violent and overturned a Salt Lake City Police Department patrol car. Patton admitted that law enforcement officers were lawfully engaged in the performance of their official duties during the commission of the civil disorder and that he participated in the burning of the overturned patrol car with the intent and purpose of obstructing, impeding, and interfering with law enforcement officers Patton also admitted to moving a burning cloth into the interior of the overturned patrol car.
Sentencing is set for August 11, 2021. Patton faces a maximum term of imprisonment of five years in prison, a payment of $2,500.000 in agreed upon restitution, and a term of supervised release of three years.
Assistant U.S. Attorneys from the Utah U.S. Attorney’s Office prosecuted the case. Special Agents from the ATF and the FBI, and detectives from the Salt Lake City Police Department, conducted the investigation.
Six Indicted in Importation and Distribution of MDMA Drug CaseRead the Press Release
SALT LAKE CITY – Six members of a Utah County based drug distribution ring allegedly responsible for distributing large amounts of the drug 3,4-Methylenedioxymethamphetamine, commonly known as MDMA or Ecstasy, are now facing federal charges in a superseding indictment unsealed in federal court on Thursday.
The charges in the indictment include conspiracy to distribute MDMA, two counts of possession of MDMA with intent to distribute, and three counts of aiding and abetting the importation of MDMA.
According to a complaint filed in the case, the investigation into the defendants’ importation of MDMA began in February of 2021, when an international mail shipment was seized by U.S. Customs and Border Protection (CBP) at the port of Cincinnati DHL Hub. The seized package was manifested to CBP as containing a hair dryer with a claimed value of $36.00 and a claimed weight of two kilograms. Upon further inspection, it was revealed that the package contained vacuum sealed plastic bags containing 2.1 kilograms of gray pills pressed with skulls and the words “Reaper 350 mg” on the back. CBP agents tested the gray pills with a field test kit, which presumptively identified the gray pills as containing MDMA, a schedule I controlled substance. The package was then delivered to its intended recipient in Vineyard, Utah, by Special Agents from Homeland Security Investigations, who began the investigation into the MDMA distribution scheme in Utah. A search warrant was later executed for another residence in Vineyard that yielded 23 pounds of MDMA. After the execution of the search warrant, a package like the first was seized by CBP in Cincinnati. This packaged was destined for another address connected to the distribution ring in Salt Lake City and contained 2.3 kilograms of gray pills that also field tested positive for MDMA.
Charged in the indictment are Bryan Hernandez, 25, of Vineyard; Cindy Hurtado, 23, of Vineyard; Rodrigo Padilla, 23, of Salt Lake City; Roberto Reyes, 28, of Vineyard; Michael Ortiz, 25, of Salt Lake City; Junior Morales, 29, of Salt Lake City; and Larry Durrer, 26, of West Valley City.
Assistant U.S. Attorneys from the Utah U.S. Attorney’s Office and Special Assistant United States Attorneys from the Department of Homeland Security are prosecuting the case. Special Agents from Homeland Security Investigations, the Utah State Bureau of Investigations, and Inspectors from the United States Postal Inspection Service conducted the investigation.
Indictments are not findings of guilt. Defendants charged in indictments are presumed innocent unless or until proven guilty in court.
Grand Jury Returns Indictment Charging 21 Individuals Running Narcotics Distribution Ring involving Methamphetamine, Fentanyl, Heroin and CocaineRead the Press Release
SALT LAKE CITY – A federal grand jury in Salt Lake City returned a 32-count indictment charging 21 individuals for their roles in a conspiracy to distribute methamphetamine, fentanyl, heroin, and cocaine across the Wasatch Front. The charges follow joint Organized Crime Drug Enforcement Task Force operations conducted by the FBI’s Safe Streets Task Force, Wasatch Metro Narcotics Strike Force, Davis County Metro Narcotics Strike Force, West Valley Police Department, and the United States Marshals Service.
Law enforcement officers seized more than 27 pounds of methamphetamine, four pounds of fentanyl, two pounds of heroin, 22 pounds of cocaine, two firearms, and more than $415,000 during the course of the operation.
The grand jury charged 18 individuals with conspiracy to distribute methamphetamine; 14 individuals are charged with conspiracy to distribute fentanyl; five individuals are charged with conspiracy to distribute heroin; 18 individuals are charged with conspiracy to distribute cocaine. The indictment also includes 12 counts of distribution of methamphetamine; three counts of distribution of cocaine; one count of distribution of fentanyl; one count of possession with intent to distribute fentanyl; four counts of possession with intent to distribute methamphetamine; three counts of possession with intent to distribute cocaine, two counts of possession with intent to distribute heroin; one count of using a firearm in furtherance of a drug trafficking crime; and one count of using a cellular phone to facilitate the distribution of methamphetamine.
Charged in the indictment are:
- Melvin Bladimir Andrade, aka “The Trucker,” 32, of Roy;
- Jesus Antonio Hernandez Guerrero, aka “Tonio,” 35, of North Ogden;
- Francisco Javier Quezada Aguirre, aka “el Negro” aka “Poncho,” 27, of Mexico;
- Pedro Ignacio Mendoza Ibarra, 28, of Mexico;
- Hector Ramses Blasco Cota, aka “Winnie,” 25, of Salt Lake City;
- Jose Luis Hernandez, aka “Chepe,” 60, of Ogden;
- Troy Rivera, aka “Vecino” aka “Gonzo,” 48, of Farr West;
- Hector Holguin Barrios, aka “Viejo,” 57, of Midvale;
- Hugo Morales Chavero, 30, of Salt Lake City;
- Victor Noe Martinez Portillo, 31, of West Jordan;
- Josiel Rogelio Morales Lopez, 21, of Lehi;
- Isaac Celaya Almanza, aka “Chupa” aka “Flaco,” 50, of Ogden;
- Victor Guzman, “Chiste,” 46, of Ogden;
- Erick Garcia Rivera, 40, of West Valley City;
- Mario Moreno, 40, of Ogden;
- Rubi Rosario Almenta Sanchez, 33, of Westminster, California;
- Edwin Alberto Espino Alfaro, aka “Gordito,” 33, of Ogden;
- Juan Carlos Rosas Rosas, 37, of Ogden;
- Carlos Enrique Canos Gutierrez, aka “Kike,” 26, of West Valley City;
- Marissa Perez, 22, of Torrance, California;
- Andrea Islas, 24 of, Salt Lake City.
Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office are prosecuting the case. Special Agents from the FBI’s Safe Streets Task Force and investigators from the Wasatch Metro Narcotics Strike Force, Davis County Metro Narcotics Strike Force, West Valley Police Department, and Deputies from the United States Marshals Service, conducted the investigation.
Indictments are not findings of guilt. Defendants charged in indictments are presumed innocent unless or until proven guilty in court.
Acting U.S. Attorney Andrea T. Martinez Recognizes Police WeekRead the Press Release
SALT LAKE CITY— In honor of National Police Week, Acting U.S. Attorney Andrea T. Martinez recognizes the service and sacrifice of federal, state, local, and Tribal law enforcement. This year, the week is observed Sunday, May 9 through Saturday, May 15, 2021.
“This week is a time to honor our law enforcement officers who have made the ultimate sacrifice in service to our nation,” said Attorney General Garland. “I am constantly inspired by the extraordinary courage and dedication with which members of law enforcement act each day, putting their lives on the line to make our communities safer. To members of law enforcement and your families: we know that not a single day, nor a single week, is enough to recognize your service and sacrifice. On behalf of the entire Department of Justice, you have our unwavering support and eternal gratitude.”
“This week we honor the law enforcement officers who have made the ultimate sacrifice in service to our country, our cities, Indian Tribes, and the State of Utah, said Acting United States Attorney Andrea T. Martinez. “It is an honor to work alongside the brave men and women in law enforcement who are willing to sacrifice everything to keep our communities and our families safe. Thank you to every member of law enforcement and your families for your service to this great nation.”
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty, and commitment to keeping our communities safe. This year the COVID-19 pandemic has highlighted law enforcement officers’ courage and unwavering devotion to the communities that they have sworn to serve.
During the Roll Call of Heroes, a ceremony coordinated by the Fraternal Order of Police (FOP), more than 300 officers will be honored. Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), of the law enforcement officers who died nationwide in the line of duty in 2020, nearly 60 percent succumbed to COVID-19. Here in the District of Utah, one officer died in the line of duty; Officer Nathan J. Lyday from the Ogden Police Department.
Additionally, according to statistics reported by the Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 46 law enforcement officers died as a result of felonious acts and 47 died in accidents in 2020. LEOKA statistics can be found on FBI’s Crime Data Explorer website.
The names of the 394 fallen officers who have been added in 2020 to the wall at the National Law Enforcement Officer Memorial will be read on Thursday, May 13, 2021, during a during a Virtual Candlelight Vigil, which will be livestreamed to the public at 8:00 pm EDT. The Police Week in-person public events, originally scheduled for May, have been rescheduled due to ongoing COVID-19 concerns to October 13-17, 2021. An in-person Candlelight Vigil event is scheduled for October 14, 2021.
Those who wish to view the Virtual Candlelight Vigil on May 13, 2021, can watch on the NLEOMF YouTube channel found at https://www.youtube.com/user/TheNLEOMF. The FOP’s Roll Call of Heroes can be viewed at www.fop.net. To view the schedule of virtual Police Week events in May, please view NLEOMF’s Police Week Flyer.
To learn more about National Police Week in-person events scheduled for October, please visit www.policeweek.org.
Trucking Company Employee Pleads Guilty to PPP Loan Application FraudRead the Press Release
SALT LAKE CITY – Lisa Bradshaw Rowberry, 49, of Provo, pleaded guilty for her role in Paycheck Protection Program (PPP) loan fraud scheme last week in federal court. Rowberry pleaded guilty to loan application fraud for unlawfully obtaining a federal Paycheck Protection Program (PPP) loan for the Frisbu trucking company, where she was employed by the owner of the company and co-defendant, Hubert Ivan Ugarte. Ugarte pleaded guilty to PPP loan fraud and federal bribery charges involving the FedEx Ground Hub in federal court last month.
According to the plea agreement, Rowberry admitted to submitting a fraudulent loan application to Transportation Alliance Bank in Ogden, Utah, for PPP loans authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and that she fraudulently obtained $210,000 in PPP loans for Frisbu after failing to disclose on the loan application that Ugarte was under federal indictment for his role in a bribery scheme involving the FedEx Ground Hub. Rowberry stated that she first met Ugarte while working as Branch Manager at a U.S. Bank branch in Utah where Ugarte was a customer, and that when she went to work for Ugarte, she was aware that he was under federal indictment for his role in a FedEx Ground Hub bribery scheme that occurred in Utah.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to millions of Americans suffering from the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized more than $300 billion in additional PPP funding, and Congress again authorized more than 284 billion in Additional PPP funding in 2021.
PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be entirely forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses a certain amount of the PPP loan proceeds on payroll expenses.
Sentencing is set for July 7, 2021 for Rowberry and on June 3, 2021 for Ugarte.
Assistant United States Attorneys in the Utah U.S. Attorney’s Office prosecuted the case against Rowberry. Special Agents from the FBI, IRS, and the Department of Transportation Office of Inspector General conducted the investigations.
Four Sentenced for Advanced Fee Scheme that Promised to turn Dirt into GoldRead the Press Release
SALT LAKE CITY – Marc Tager, Jonathon Shoucair, Matthew Mangrum, and Kenneth Gross have all been sentenced for their role in an eight million dollar telemarketing fraud scheme that promised investors, most of them elderly, that their business could extract gold from dirt.
Marc Andrew Tager, 55, of Sandy, Utah, was sentenced on April 14, 2021, to 43 months in federal prison for conspiracy to commit wire and mail fraud, money laundering, and possession of a firearm by a convicted felon.
Jonathon Edward Shoucair, 69 of North Hills, California, was sentenced on October 23, 2020, to 72 months in federal prison for conspiracy to commit wire and mail fraud and money laundering.
Matthew Earl Mangum, 51, of South Jordan, Utah, was sentenced on November 18, 2020, to 48 months in federal prison for conspiracy to commit wire fraud and money laundering.
Kenneth Stephen Gross, 75, of Porter Ranch, California was sentenced on January 16, 2020, to 24 months of probation for failing to disclose to federal authorities that he had knowledge that securities fraud was occurring.
Tager, Shoucair, and Mangum posed as the leaders of the scheme and told victim-investors they had created a plan to make money by extracting gold from dirt using a revolutionary process developed by Mangum--who was held out to investors as an expert in metallurgy and the refining of precious metals. Investors were told that the defendants controlled this proprietary, breakthrough, nanotechnology that used environmentally friendly means to recover microscopic particles of gold from dirt. Gross was engaged in cold-calling potential investors and passing interested individuals on to Tager and Shoucair in order to obtain funds from these investors.
Investors were told that the group needed investors’ money to pay for the space, equipment, materials, and labor to develop Mangum’s process into a large scale, highly profitable business that would generate huge returns. Instead, the co-defendants operated an advanced fee scheme with Tager, Shoucair, and Mangum making fraudulent statements to investors to secure funding that was only partially used to support the business, which was never profitable.
In order to carry out the fraud, the three defendants formed Jersey Consulting, LLC (“Jersey”) and created a marketing website for their business. On the website, the defendants claimed that Jersey owned an 80 acre mining claim with a substantial amount of mineral rich ore; that their revolutionary mining technology could achieve 20 times the yield of traditional mining at a fraction of the cost; that their process was environmentally friendly; and that investors would achieve 100% percent returns on their money in 12 months. Investors were also told that their money would be secured by the physical assets owned by Jersey and that the investors would have priority over these assets should the business fail.
What investors did not know was that Tager and Shoucair first met while serving multi-year federal prison sentences together for previous fraud related convictions. Tager, who was convicted of conspiracy to commit mail fraud in 2005 and sentenced to approximately 2 years in prison, met Jon Shoucair, who was serving a 5-year prison sentence in the Sheridan Federal Correction Institution for running a $50 million telemarketing fraud.
Since 2014, the men raised over eight million from about 140 investors through the use of a national telemarketing strategy. The majority of the investors were over the age of 65. However, three million dollars of investors’ money was spent for the personal benefit of Tager, Mangum, and Shoucair, with another two million dollars of the funds going to pay telemarketers, including Gross, who helped raise the funds. It is estimated that only three million dollars of the investors’ funds were used to pay for potentially legitimate business expenses incurred by Jersey.
Assistant U.S. Attorneys Jacob J. Strain, Trina Higgins, and Allison Moon in the Utah U.S. Attorney’s Office prosecuted the case. Investigators from the Utah Department of Commerce Division of Securities and Special Agents from the FBI and the IRS conducted the investigation.
23rd Defendant Sentenced in Sweeping Federal Drug and Gang CaseRead the Press Release
SALT LAKE CITY – A joint FBI and DEA federal narcotics investigation has resulted in the conviction of 23 federal defendants in Utah, taking out a large-scale methamphetamine distribution organization in Salt Lake County run by members of eight street gangs and supplied by a Mexican drug cartel.
Throughout the course of the complex multi-year investigation, agents from the FBI, DEA, and multiple federal, state, and local law enforcement agencies worked together using advanced court authorized investigative techniques and undercover purchases to determine that 24 defendants (including one that remains a fugitive in Mexico) were operating a complex methamphetamine distribution scheme in Salt Lake County. The organized narcotics ring was set up like a business which included security, counter-surveillance, secret codes, firearms, and large amounts of cash, with each member having a distinct role in in the group.
During the operation and resulting arrests of the 23 defendants, law enforcement officers seized 41 pounds of methamphetamine and 17 firearms, including 13 firearms and assorted ammunition from one defendant who was prohibited under federal law from possessing a firearm after a felony conviction. Collectively, these 24 defendants were members of eight separate gangs and the organization was supplied by members of a Mexican drug cartel in Southern California.
The street gangs involved were the Surenos, Nortenos, La Raza, Vario Chosen Few, East Side Raskals, Baby Regulators, Soldiers of Aryan Culture, and Tiny Oriental Posse.
The sentences received by each defendant are:
- Cesar Gutierrez, age 41 of Magna, sentenced April 13, 2021, to 164 months in prison for Conspiracy to distribute 500 grams or more of methamphetamine;
- Siosifina Ositamani (aka Fina Halai), age 45 of Salt Lake City sentenced February 25, 2020, to 60 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Jon Martinez (aka Droopy), age 50 of Salt Lake City, sentenced August 13, 2019, to 5 years of probation;
- Cerina Gutierrez, age 49 of Salt Lake City sentenced June 17, 2019, to 120 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Sompheth Thaodara (aka Diamond), age 52 of West Valley City sentenced January 4, 2019, to 60 months in prison for Conspiracy to distribute 500 grams or more of methamphetamine;
- Timote Fangupo (aka Double Barrel), age 40 of West Jordan, sentenced September 18, 2018, to 18 months in prison for unlawful use of a communication device;
- Linda Sosa, age 42 of Kearns, sentenced September 18, 2018, to 36 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Man Tat Le (aka Asian Le), age 46 of West Valley City sentenced September 17, 2018, to 18 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Melissa Delgado, age 25 of Murray, sentenced August 20, 2018, to time served for conspiracy to distribute 500 grams or more of methamphetamine;
- Silvio McKenzie-Gainza, age 39 of Salt Lake City, sentenced August 2, 2018, to 151 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- David Tyson Madden, age 44 of Salt Lake City sentenced July 17, 2018, to 60 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Brandon Callaway, age 33 of Salt Lake City, sentenced July 6, 2018, to 84 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Raul Enrique Lizarraga Lopez (aka Maestro), age 26 of Los Angeles, sentenced July 2, 2018, to 120 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Makasini Lomu (aka Maka), age 54 of West Valley City, sentenced July 2, 2018, to 180 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Morgan Harris (aka Ace), age 62 of Murray sentenced June 8, 2018, to 60 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Jake Duran (aka Troublez), age 29 of Salt Lake City, sentenced May 25, 2018, to 84 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Justin Dahlquist, age 30 of Salt Lake City sentenced May 24, 2018, to 24 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Steven Trujillo, age 27 of Tooele sentenced May 8, 2018, to 72 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Jeremy Najera, age 37 of Salt Lake City sentenced May 7, 2018, to 48 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Gary Bronson Dean (aka Gary Dean Bronson), age 46 of Salt Lake City sentenced May 7, 2018, to 18 months in prison for conspiracy to distribute marijuana;
- Mario Cerna (aka Havoc), age 38 of West Valley City sentenced May 7, 2018 to 60 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Michael Shane Tisdale, age of 58 of West Valley City, sentenced May 7, 2018, to 48 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Greg Montoya, age 47 of Salt Lake City, sentenced October 25, 2017, to 49 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Ciro Santamaria-Zepeda, age 39 of Salt Lake City, still a fugitive in Mexico.
“State and federal cooperation is one of the hallmarks of effective law enforcement. This operation highlights these partnerships, which work especially well together in Utah,” said Acting United States Attorney Andrea T. Martinez. “Dangerous, gang-affiliated drug trafficking organizations, like the organization prosecuted in this particular indictment, bring violence and chaos to our city streets. We pledge to continue to work together to disrupt and dismantle any drug trafficking organizations that target our state.”
“This case isn’t just about the massive amount of drugs that were brought into our neighborhoods, but the gang activity and violent crime that often accompanied it. These drug organizations run like a big business, and we were able to target this one at every level,” said Special Agent in Charge Dennis Rice of the Salt Lake City FBI. “The unfortunate reality is that our work is far from over. Rest assured, the FBI and our partners are committed to identifying, investigating, and dismantling these criminal enterprises that threaten the safety of our kids and communities.”
"This long-term joint investigation targeted local area gangs that were responsible for the distribution of significant amounts of methamphetamine within our neighborhoods. As evidenced during the course of this case, these gang members utilized violence and intimidation to maintain control of their territories,” said DEA Assistant Special Agent in Charge Michael J. Tinkler. “Through the concerted efforts of local, state and federal law enforcement agencies, this organization was successfully dismantled highlighting the impact that partnerships have on addressing drug and violence related crime in Utah."
This case was prosecuted by Assistant United States Attorneys Stephen Nelson and Stewart Young from the Utah United States Attorney’s Office under the Department of Justice’s Organized Crime Drug Enforcement Task Force, and the investigation was conducted by Special Agents from the FBI and DEA. Assisting with the investigations were officers from the Salt Lake City Police Department, West Valley City Police Department, Sandy Police Department, West Jordan Police Department, and the Utah Department of Public Safety, who participate as members of the FBI’s Safe Street Task Force; the Unified Police Department and the Metro Gang Unit; the Murray Police Department, the United States Marshals Service, ATF, and ICE Enforcement and Removal Operations.
Utah Pharmacist Sentenced for Receipt of Misbranded Drugs Imported from ChinaRead the Press Release
SALT LAKE CITY – Daniel Kevin Richards, 37, of Sandy, Utah, was sentenced to three years of probation and a $10,000 fine in federal court on Monday after previously pleading guilty to receiving misbranded chloroquine from China with the intent to sell the drug in the United States.
In the plea agreement, Richards admitted that, in April of 2020, he imported and received over 50 kilograms of misbranded and mislabeled chloroquine from China. Richards admitted that the chloroquine was falsely mislabeled as “Boswellia Serrata Extract” and that the drug was not manufactured and prepared by an establishment registered as a drug manufacturer with the Food and Drug Administration. Additionally, the labeling on the drugs failed to bear adequate directions for use as required by federal law. Richards has also been ordered to pay for the destruction of the drug by proper authorities with the United States Food and Drug Administration.
Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office prosecuted the case. Special Agents of the Food and Drug Administration- Office of Criminal Investigations, the FBI, and investigators from the Salt Lake County District Attorney’s Office conducted the investigation.
Owner of Utah Trucking Companies Pleads Guilty to Role in FedEx Trucking Bribery Scheme Worth $24 Million and PPP Loan FraudRead the Press Release
SALT LAKE CITY – Hubert Ivan Ugarte, 52, of Draper, Utah, pleaded guilty for his role in two separate fraud schemes last week in federal court. Ugarte first pleaded guilty to charges related to a federal bribery case involving the procurement of FedEx Ground (FXG) contract shipping routes worth $24 million dollars of profit and also pleaded guilty to fraudulently obtaining a federal Paycheck Protection Program (PPP) loan for other trucking companies.
In the bribery case, Ugarte was convicted of fraud and money laundering charges for his involvement in a pay-to-play trucking scheme where prosecutors alleged that Ugarte was one of ten defendants who paid approximately $1 million in bribes to the Utah FXG Ground Hub manager in order to exploit the manager’s position with FedEx and make their trucking businesses as lucrative as possible.
In the plea agreement, Ugarte admitted to bribing the FXG senior linehaul manager, Ryan Lee Mower, with approximately $490,000 which netted Ugarte’s trucking companies over $24 million dollars during a seven-year period between 2012 and 2019. In exchange for the bribe payments, the FXG manager awarded Ugarte’s companies with several delivery routes from FXG that Ugarte would not have qualified for under FXG’s established policies.
In order to carry out the scheme, Ugarte and the FXG manager worked to obscure the ownership of Ugarte’s many trucking companies by filing false compliance reports with FXG in order to award Ugarte with more trucking routes than one business owner was entitled to under established FXG policies. As a result, Ugarte was allowed to operate at least 45 trucking routes originating from the Salt Lake FXG hub, greatly exceeding the FXG limit of only 15 trucks for the Salt Lake City hub. This practice, known as “over scaling” in the contract shipping industry, along with the payment of bribes to the FXG manager, would have resulted in the automatic termination of Ugarte’s contracts if discovered by authorities at FXG. Throughout the scheme, Ugarte’s companies received approximately $135,000,000 in gross payments from FXG, resulting in net profits to his trucking companies of approximately $24,000,000.
In the second case involving Paycheck Protection Program (PPP) loan fraud, Ugarte pleaded guilty to submitting a fraudulent loan application to the Small Business Administration (SBA) through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Ugarte admitted that he fraudulently obtained $210,000 in PPP loans after failing to disclose that he was under federal indictment for his role in the fraudulent trucking scheme.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to millions of Americans suffering from the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $249 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized more than $300 billion in additional PPP funding.
PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be entirely forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses a certain amount of the PPP loan proceeds on payroll expenses.
On May 14, 2020, Ugarte received $210,000 from Transportation Alliance Bank under the PPP. Instead of using at least 75 percent of the loan to pay payroll costs, including bounced payroll checks, Ugarte used 60 percent of the loan to pay the past due truck payments – leaving 40 percent for payroll costs.
Sentencing is set for June 3, 2021, in both matters.
Assistant United States Attorneys in the Utah U.S. Attorney’s Office prosecuted the cases against Ugarte. Special Agents from the FBI, IRS, and the Department of Transportation Office of Inspector General conducted the investigations.
Utah Attorney Charged with Conspiring to Launder Money Gained from Fraud SchemeRead the Press Release
SALT LAKE CITY – Attorney Matthew Kober, 45, of Draper, Utah, was charged via criminal information on Monday with one count of conspiring to launder money obtained via wire fraud in federal court.
The criminal information alleges that beginning in 2018, Kober formed a sports betting software company in Nevada known as “Sindakit Software LLC” and that Kober used this Nevada company to launder money obtained from the financial fraud scheme operated by Christopher Hales. Hales has already pled guilty to operating the fraudulent scheme in a different federal case and is scheduled to be sentenced on April 20, 2021.
The information further alleges that Kober opened a bank account in the name of Sindakit Software; that Kober and Hales immediately began utilizing the account to launder the money obtained from Hales’ fraudulent scheme; that Kober accepted wire transactions from one victim of Hales’ scheme totaling $405,000; and that Kober partially redistributed the funds to prior victims of the scheme, along with wiring $15,000 to his own law firm’s bank account. The United States is also seeking a money judgment in the amount of $259,096.41, in addition to the criminal charges filed against Kober.
Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office are prosecuting the case. Special Agents from the FBI and the IRS conducted the investigation.
Criminal charges are not findings of guilt. Individuals charged in an information are presumed innocent unless or until proven guilty in court.
Andrea T. Martinez Appointed Acting United States Attorney for the District of UtahRead the Press Release
SALT LAKE CITY – Andrea T. Martinez is the Acting United States Attorney for the District of Utah, appointed on March 1, 2021, by virtue of the Vacancies Reform Act. As Acting U.S. Attorney, Ms. Martinez will serve as the District’s chief federal law enforcement official until a successor is nominated by the President and confirmed by the U.S. Senate. Ms. Martinez is only the third woman to serve as the Acting United States Attorney in the District of Utah and is the first Latina to hold the position.
Ms. Martinez is a career prosecutor who has dedicated her professional life to public service. She has served in the United States Attorney’s Office for more than a decade. As an Assistant United States Attorney, Ms. Martinez has been involved in the full spectrum of violent crime prosecution including drug trafficking, federal firearm, and child exploitation cases. She also prosecuted crimes in Indian Country. Ms. Martinez has held an array of leadership positions within the office, including First Assistant United States Attorney, Violent Crime Deputy Section Chief, Senior Litigation Counsel, Violence Against Women Act Coordinator, District Diversity Chairperson, and Project Safe Childhood Coordinator.
Ms. Martinez began her career at the Salt Lake County District Attorney’s office where she prosecuted felony narcotic, aggravated assault, special victim and homicide cases. She also prosecuted cases while assigned to the Juvenile and Misdemeanor Divisions. Ms. Martinez is from Utah. She graduated from the University of Utah, S.J. Quinney College of Law in 2001, and was awarded a Bachelor of Arts degree, with a double major, from the University of Utah in 1998.
Kurt Bauer Sentenced to 78 Months of Imprisonment for Advanced-Fee Scheme Targeting ElderlyRead the Press Release
ST. GEORGE, UTAH – Kurt Bauer 57, of Kanab, Utah, was sentenced to 78 months in federal prison after pleading guilty to three counts of wire fraud and two counts of falsely impersonating U.S. government employees in connection with an advanced-fee scheme. Bauer was also ordered to pay $856,422 in restitution to the victims of his crimes.
According to the plea agreement, between 2011 and 2020, Bauer created a fraudulent scheme where he told his victims that he was entitled to hundreds of millions of dollars—even billions—which were frozen in federal court proceedings. Bauer promised his victims that he would pay them large amounts of money if they would pay Bauer money up front, which he would then use to pay court fees to obtain the money frozen in the federal court proceedings. Bauer promised all of his victims large returns on their upfront investment. Bauer received at least $200,000 from two victims who were 80 and 82 years old, respectively, over the course of the scheme.
In order to carry out the fraud, Bauer created the false identities of a New York attorney, a federal court employee, and a billionaire, which he used to communicate with and solicit money from the victims of the scheme. Bauer would use these identities to solicit funds from these victims on a regular—sometimes weekly—basis. Bauer would tell his victims that the money in the federal court proceedings would be released soon and that he needed the funds to pay a “bond” which was required by the court. Bauer also impersonated federal judges and a federal court administrator during the scheme in order to convince the victims that the court proceedings were real, and to persuade victims to continue making payments.
In reality, Bauer had no prospects of receiving money from federal court proceedings; had relatively little wealth; and used the victims’ moneys on credit card payments, hotel bills, restaurants, and other personal expenses.
Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office prosecuted the case. Special Agents from the FBI conducted the investigation. The U.S. Attorney’s Office worked closely with the Kane County Sheriff’s Office and Kane County Attorney’s Office to prosecute the case.
John Huber Leaves his Post as Longest-Serving United States Attorney in the NationRead the Press Release
SALT LAKE CITY– After six years of leadership as the United States Attorney for the District of Utah, America’s longest currently serving U.S. Attorney is moving on. John Huber’s last day as the United States Attorney is February 28. Huber was first nominated to the post by President Barack Obama, and was confirmed by the United States Senate in June of 2015. He was later re-nominated by President Donald J. Trump, and unanimously confirmed by the Senate for another four-year term as U.S. Attorney beginning in 2017.
During his time as United States Attorney, Huber served as a close advisor to three Attorneys General and served as the Vice-Chair of the Attorney General’s Advisory Committee for Attorney General Jeffrey Sessions and Attorney General William Barr. Huber also led the Attorney General’s Advisory Subcommittee on Terrorism and National Security and the interagency Domestic Terrorism Executive Committee in Washington D.C.
During his tenure, the cases prosecuted by the U.S. Attorney’s Office in Utah increased in numbers, complexity, and notoriety. Huber transformed the culture of the office while preaching productivity, and oversaw the physical move of the office in downtown Salt Lake City.
On the national security front, Huber oversaw the prosecution of two international terrorists in Utah; many domestic terrorism matters; and a former United States Government employee acting as a spy for China. Huber also spoke regularly on the Department of Justice’s China Initiative in order to educate leaders of Utah industry on the threat posed by China.
On the violent crime front, Huber launched the Utah Gang Initiative within the U.S. Attorney’s Office. Under his leadership, the office has prosecuted several high-profile gang cases, including that of the nationally known white supremacist gangs Soldiers of Aryan Culture and Silent Aryan Nation. In addition, federal prosecutors have led high level prosecutions against the Norteno and the Glen Mob Street Gangs and numerous other gangs along the Wasatch Front with connections to Mexican drug cartels.
Prosecutors in his office successfully prosecuted what was the largest illicit dark web trafficker of fentanyl-laced oxycodone in the United States and obtained a lengthy prison sentence against a Utah doctor who illegally prescribed opioids to drug addicts. Huber also prioritized cases involving child victims and his office brought numerous cases involving the exploitation of minors, including the conviction of an ex-Ute Tribal leader who sexually abused a girl starting at the age of 10.
Huber was also a proponent of using targeted federal, state, and local partnerships to combat violent crime in urban areas. Huber helped to lead a violent crime reduction partnership in Ogden, Utah, that contributed to the decrease in violent crime by as much as 30% and helped to create a similar partnership that is ongoing in Salt Lake City.
Huber also reached out to all of Utah’s rural counties and offered to prosecute criminals that had disproportionate impacts on their communities. One of the most important prosecutions during his tenure was convicting the murderer of Millard County Deputy Sheriff Josie Greathouse-Fox, a case that Huber says “will impact him for the rest of his life.”
On the financial crime front, the United State’s Attorney’s Office took on record-breaking fraud schemes in Utah. Huber’s office played a role in the prosecution of Northern Utah’s Kingston Polygamist Clan, which defrauded the United States out of close to $500 million dollars, as well as the prosecution of Lyle Jeffs and members of the Fundamentalist LDS Church in Southern Utah, who were found to have defrauded the United States’ Supplemental Nutrition Assistance Program. Prosecutors in his office obtained a conviction and a lengthy prison sentence against Rick Koerber, and have now turned their sites on the pending Rust Rare Coin case, a case that prosecutors allege is one of the largest and most destructive frauds Utah has ever seen.
On the civil side, Huber’s office successfully fought to keep snowboarders out of Alta Ski Resort, a decision that still garners mixed reviews amongst snowboarders in Utah. In addition, the office engaged in important civil rights work related to Utah’s public universities; successfully held doctors and pharmacies accountable in the midst of the opioid epidemic; and engaged in numerous cases related to the misuse of taxpayer funds amidst the global pandemic.
Of all of his accomplishments, Huber is most proud of the fact that he has hired over 50 percent of the office’s nearly 60 prosecutors. This, Huber says, will be his most important legacy, as he will be “extremely proud to see all that they will accomplish on behalf of the United States of America.”
Leaders in the law enforcement community offered accolades regarding U.S. Attorney Huber’s Service.
“For the past six years, John Huber has been a valuable partner and a strong supporter of the FBI and our mission,” said Acting Special Agent in Charge Robert Meacham of the Salt Lake City FBI. “As Utah's U.S. Attorney, Huber had a genuine interest in keeping our communities safe. He never hesitated to devote resources to aggressively investigate and prosecute cases, from gangs and drugs to fraud, and national security threats. He was hard on crime but maintained a personable relationship with those of us in the law enforcement community. All of us at FBI Salt Lake City wish him the best in his future endeavors.”
United States Marshal for the District of Utah, Matthew Harris stated that “what I respect the most about John, is that he is the same imperturbable man he was nearly two decades ago when I first met him, a dedicated public servant of the highest moral character, who used the ascendancy of his position, not to enrich himself, but to make Utah a safer place for its citizens. Not only was John a friend of federal law enforcement, but he earned the respect of local and state officials by helping remove the most violent criminals from their communities. He is the epitome of what Americans should expect from their U.S. Attorney. His leadership will be greatly missed.”
Special Agent in Charge of the ATF Denver Field Division David S. Booth stated that “Mr. Huber is a strong advocate for ATF and violence related prosecutions, especially those cases involving the use of firearms. This stance has led to a marked reduction in violent crime in the State of Utah. The collaboration between ATF and the United States Attorney’s Office for the District of Utah under Mr. Huber has led to hundreds of violent criminals being taken off the streets and has made Utah a safer place. John balances this approach with absolute respect for fairness and an unwavering adherence to equal justice under the law. ATF has been proud to partner with Mr. Huber. He is a true defender of the law and a public servant to the people of Utah. He is professional, passionate, knowledgeable, and someone whose vision of serving the people of Utah mirrors ATF’s core mission of fighting violent crime.”
Michael J. Tinkler, Assistant Special Agent in Charge of the Salt Lake City Drug Enforcement Agency stated that “on behalf of the Drug Enforcement Administration, I would like to thank U.S. Attorney John Huber for his outstanding support and partnership with the Salt Lake City District Office and the Metro Narcotics Task Force. John has been a friend and mentor to many throughout these past six years and will be sorely missed. During his tenure, several significant drug trafficking organizations were disrupted that directly impacted the citizens of this state and nation. His dedication to upholding the rule of law and serving others are tenets that he followed and served as a motivation for others.”
“Homeland Security Investigations is fortunate to have U.S. Attorney John Huber as an advocate and partner in prosecuting criminals in the great state of Utah,” said Steve Andres, Assistant Special Agent in Charge of Homeland Security Investigations in Utah. “His tireless advocacy for justice resulted in several significant outcomes including the successful prosecution of a North Korean state actor seeking sensitive U.S. technology, a life sentence for a major DarkWeb narcotics dealer and ensuring numerous child predators were put behind bars. We appreciate his dedication to our shared mission of protecting the homeland and will miss his leadership.”
"Change is never easy, especially when that change brings an end to such a great working relationship. U.S. Attorney John Huber has been a great partner to our department, and I have enjoyed working with him. It is obvious he cares about the safety and security of Salt Lake City and the state of Utah,” said Salt Lake City Police Chief Mike Brown.
Huber graduated with honors from The University of Utah, and went on to complete his juris doctor degree at The University of Utah’s S.J. Quinney College of Law. He began his public service in the Weber County Attorney’s Office, and later served as the Chief Prosecutor for West Valley City before joining the U.S. Attorney’s Office. Huber first served joined the U.S. Attorney’s Office as a Special Assistant United States Attorney and rose within the office to become the Executive Assistant United States Attorney until his appointment as the United States Attorney. His resignation ends a chapter of 27 years of continuous public service.
United States Attorney’s Office Mourns the Loss of Officer Hugh B. BennettRead the Press Release
SALT LAKE CITY- The United States Attorney’s Office mourns the loss of retired Unified Police Department Officer Hugh B. Bennett, after his courageous battle with Covid-19. Hugh was a loving husband to our United States Attorney’s Office Victim-Witness Coordinator, Candy Bennett, and had a distinguished 26-year career in law enforcement with the Unified Police Department and the Salt Lake County Sheriff’s Office.
Upon his retirement from local law enforcement, Hugh became a Federal Court Security Officer, where every member of the United States Attorney’s Office had the privilege of interacting with him on a daily basis.
“Hugh Bennett was a gentleman who had a long and distinguished career in law enforcement,” said United States Attorney John W. Huber. “We extend our deepest sympathies to Candy Bennett, the Unified Police Department, the United States Courthouse and Hugh’s entire family. We will always remember him.”
Barraza Pleads Guilty to Trafficking in Heroin and Carrying a Firearm in Furtherance of a Drug Trafficking CrimeRead the Press Release
ST. GEORGE, UTAH – Richard Dimitri Barraza, 24, of St. George, Utah, has agreed to serve 150 months in federal prison after pleading guilty to possessing heroin with the intent to distribute, and possessing a firearm in furtherance of a drug trafficking crime.
According to the plea agreement, Barraza admitted to possessing approximately 160 grams of a mixture or substance containing heroin, along with a 9mm pistol that he used to further his heroin trafficking enterprise. Because Barraza was on supervised release for a 2017 federal conviction for being a felon in possession of a firearm, this plea also resolves the outstanding supervised release violation pending against him.
“Southwest Utah needs federal law enforcement because of cases like this one,” said United States Attorney John W. Huber. “We are committed to focusing on dangerous offenders who drag down our quality of life through reckless decisions.”
Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office prosecuted the case. Agents from the Washington County Drug Task Force, Officers from the St. George Police Department, and Special Agents from the DEA conducted the investigation. The U.S. Attorney’s Office coordinated the prosecution with the Washington County Attorney’s Office.
Craig C. Garrick, Jr. Sentenced to A Year in Federal Prison for Securities FraudRead the Press Release
SALT LAKE CITY – Craig C. Garrick, Jr., 42, of Alpine, Utah, was ordered to serve 12 months and one day in federal prison at a hearing on February 10, after being convicted of securities fraud in federal court. Garrick previously pleaded guilty to securities fraud in October of 2020.
Garrick admitted in the plea agreement, that from 2019 to 2020, he induced victims to invest at least $450,000 in his company without disclosing the fact that he was serving a probationary sentence for felony charges of mortgage fraud arising out of the Utah State Courts. Garrick also admitted that that he planned to use, and did use, investment money for his own benefit and living expenses; that he knew it was illegal to fraudulently take money from investors; to make a misrepresentation or an omission of a material; and to engage in conduct that operates as a fraud or deceit upon a person, in connection with the purchase or sale of securities.
Garrick was sentenced Wednesday by District Court Judge Dale Kimball, who ordered $450,000 in restitution to the victims but noted Garrick had already arranged for the victims to be repaid prior to sentencing.
“It is all too common for fraudsters to claim they are raising money for a business venture, when in reality, they are lining their pockets with the hard-earned savings of Utahns,” said United States Attorney John W. Huber. “Unfortunately, con artists excel at preying on the trusting nature of Utahns. Remember that talk is cheap, and it is of the utmost importance that investors in Utah do their due diligence before investing their hard-earned money with anyone.”
“Fortunately, Mr. Garrick’s victims were able to recoup their money, but that’s not often the case. Investment fraud victims are usually left financially and emotionally devastated,” said Acting Special Agent in Charge Robert Meacham of the Salt Lake City FBI. “The FBI is committed to holding people accountable for financial crimes. As fraudsters are known to re-offend, we also encourage the public to do their due diligence when looking to invest and report any suspicious activity to the FBI."
Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office prosecuted the case. Special agents of the FBI conducted the investigation.
Salt Lake City Violent Crime Reduction Partnership Announces the Results of First Month of ActionRead the Press Release
One month ago, Mayor Mendenhall of Salt Lake City, Chief Mike Brown of the Salt Lake City Police Department and Commissioner Jess Anderson of the Utah Department of Public Safety joined members of the Utah federal law enforcement community, including United States Marshal Matthew Harris and United States Attorney John Huber, to announce a strategic partnership to reduce violent crime in Salt Lake City.
Since that time, the partnerships gained have been central to the success of this strategic initiative. Leaders from every federal law enforcement agency in Utah with a mission to combat violent crime have joined the partnership, including the Bureau of Alcohol Tobacco and Firearms, the Drug Enforcement Agency, the FBI, Homeland Security Investigations, and the United States Marshals Service. The partnership has also gained valuable partners in the Utah State Bureau of Investigation, the Unified Police Department, the Salt Lake County Sheriff’s Office, and the Salt Lake County District Attorney’s Office.
Since the beginning of January, this partnership has resulted in 24 defendants who present a threat to the safety to the citizens of Salt Lake City being charged or convicted in federal court. Of these 24 defendants, 16 illegally possessed firearms, and nine of the firearms involved in these cases were reported stolen; nine are currently on probation or parole for other offenses; eight have been charged with federal drug trafficking violations; seven are affiliated with a street gang; and five have a previous or current domestic violence charge; the narcotics seized includes heroin, methamphetamine, cocaine, and crack cocaine.
Examples of cases that have come from the partnership include Jordan Gonzales, 27, of Salt Lake City, who was allegedly involved in a drive-by shooting on January 20 in Salt Lake City. Gonzales was charged in federal court with one count of illegally possessing a firearm within a day of his arrest thanks to the ATF. The federal complaint filed by the United States alleges that Gonzales is a Norteno gang member who was the driver of a car involved in a drive-by shooting who fled from the police during a pursuit. After his vehicle became inoperable, it is alleged that Gonzales exited the driver’s side door, began to flee on foot, and removed a firearm from his waistband while an officer was within 5-10 feet of him. Due to the efforts of the SLCPD, the firearm was recovered, and Gonzales was apprehended after the deployment of a K9 officer. Gonzales’ case is currently pending in United States District Court.
Brian Keith Stack, 60, of Salt Lake City, is currently under indictment in federal court for allegedly enticing a minor to engage in sexual activity in Salt Lake City. Stack was charged by a federal grand jury with two counts related to the enticement of a minor and the attempted production of child pornography. This case was investigated by the SLCPD and brought to federal court due to the enhanced partnership with the United States Attorney’s Office.
Artemio Rivera-Luna, 34, of West Valley City, has been charged with three counts related to the distribution of multiple pounds of heroin and methamphetamine, along with the illegal possession of nine firearms. Due to the partnership with HSI and SBI, Rivera-Luna was charged in federal court on January 20 for conduct that occurred in Salt Lake City, and his case is currently pending.
Kirk Madsen, 41, of Granstsville, has been federally indicted for the possession of illegal firearms. Madsen allegedly opened fire with a large capacity automatic rifle outside of a Salt Lake City apartment complex during a domestic violence related incident. According to court documents, he admitted to emptying an entire 30 round rifle magazine during the incident. Because of the close partnership between the FBI, SLCPD, and the USAO, Madsen was arrested and indicted on federal charges on February 3.
“We mean what we say,” said United States Attorney John W. Huber. “As partners, we are serious in our commitment to aggressively pursue justice in Utah’s capital. Our goal is to make Salt Lake City a safer place, and after one month of targeted work, we are off to a promising start.”
“It’s our job to ensure residents, businesses, and visitors are safe in Salt Lake City and I am encouraged by the early outcomes of this partnership,” Salt Lake City Mayor Erin Mendenhall said. “These apprehensions are an important step in making a difference for our community and reducing our crime rates.”
“While we expected to see some early success, the results so far have exceeded our expectations. Keeping these offenders off the street not only helps bring justice to their victims, but also keeps others from becoming victims,” said Salt Lake City Police Chief Mike Brown. “The success of our partnerships will ultimately be measured in our ability to keep our community safe by limiting the opportunity for criminals to pray on our neighbors, and this is a great start.”
"The Utah Department of Public Safety, State Bureau of Investigation is committed to removing those who victimize our communities,” said DPS Commissioner Jess Anderson. “We are excited to be part of an extensive and ongoing crime reduction effort in Salt Lake City. We appreciate the great partnerships and are thrilled to see the early success of this project."
"The FBI plays a key role in combatting violent crime, focusing on issues that pose major threats to our society," said Acting Special Agent in Charge Robert Meacham of the Salt Lake City FBI. "No community is untouched, which is why a concerted effort is necessary to fight this issue. Partnerships pool together the best of what law enforcement agencies have to offer. When we share resources, intelligence, and skills, it allows us to remain focused on one goal - keeping our communities safe."
“ATF’s success in fighting violent crime has always been a direct result of our strong partnerships with the Salt Lake City Police Department, the State of Utah, our local law enforcement partners, and the U.S. Attorney’s Office,” said ATF Denver Field Division Special Agent in Charge David S. Booth. “With the combined dedication and skill of our Federal partners, I am confident we will have even greater success in the future and ensure that our communities stay safe.”
“HSI routinely leverages its investigative authority and expertise in partnership with federal, state and local law enforcement colleagues to address violent crime,” said HSI Assistant Special Agent in Charge Steve Andres. “We bring the ability to fight local crime and elevate it to a national or even international level as criminal networks are uncovered,” said Andres. “Our partnerships act as a force multiplier to keep our community safe.”
Indictments are not findings of guilt. Individuals charged in an indictment are presumed innocent unless or until proven guilty in court.
Cornpeach Pleads Guilty to Voluntary Manslaughter and Assault on a Federal OfficerRead the Press Release
SALT LAKE CITY – Deland Cornpeach, 20, of the Shoshone-Bannock Indian Tribe, pleaded guilty to one count of voluntary manslaughter and one count of assault on a federal officer in federal court on February 1, 2021. As a part of the plea agreement, Cornpeach has agreed to serve 84 months in federal prison.
In the plea agreement, Cornpeach admitted to stabbing the victim, E.P., an enrolled member of the Ute Indian Tribe, to death with a knife on the Uintah and Ouray Indian Reservation on June 20, 2017. The assault on a federal officer charge stems from an incident at the Davis County Jail, where Cornpeach was detained on the federal manslaughter case. While at the jail, Cornpeach assaulted and inflicted injury upon two Davis County Sheriff’s Deputies who where engaged in the performance of their official duties on behalf of the federal government.
Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office prosecuted the case. Special Agents of the FBI conducted the investigation with assistance from officers of the Bureau of Indian Affairs.
United States Attorney’s Office Resolves Criminal and Civil Cases Against Murray DoctorRead the Press Release
Salt Lake City- Dr. Nicholas (“Nick”) Carl Greenwood, 43, of Salt Lake City, Utah, pleaded guilty to one felony count of distributing a schedule III narcotic for a non-legitimate medical purpose outside of the standards of medical practice. In addition, Greenwood entered into a consent agreement in order to resolve a civil complaint related to his unlawful practice of prescribing controlled substances from his Murray, Utah, office.
In the criminal case, Greenwood pleaded guilty to one felony count of distribution of a controlled substance in a Utah federal court. In the plea agreement, Greenwood admitted that he intentionally prescribed and distributed Buprenorphine, a schedule III controlled substance, to a purported patient knowing the prescription was for a non-legitimate medical purpose and was outside of the standards of medical practice. Greenwood was ordered to serve 24 months of probation and to pay a $500 fine.
In the civil case against Greenwood, a federal court in Utah entered a consent judgment and permanent injunction ordering Greenwood to permanently cease dispensing opioids or other controlled substances and to pay $500,000 in civil penalties. Under the court’s order, Greenwood will also surrender his registration with the DEA and will never seek renewal. The consent order resolves a complaint filed by the United States alleging that Greenwood repeatedly wrote prescriptions for opioids and other controlled substances in violation of the Controlled Substances Act.
In the complaint, the United States alleged that several confidential sources who were working for the DEA obtained prescriptions for Buprenorphine by simply asking Greenwood for them. The confidential sources received dozens of prescriptions for hundreds of pills without ever receiving any medical treatment. In most cases, the confidential sources paid cash for prescriptions they picked up from Greenwood’s office staff that were pre-written and signed. In the few times Greenwood did see the confidential sources, he offered no treatment, allowed the confidential sources to bargain for prescriptions, and coached the confidential sources on how to trade and sell the powerful opioids he prescribed them. The complaint further alleged that Greenwood followed this same pattern with other customers, and wrote prescriptions for dangerous combinations and for doses far in excess of those needed for proper treatment, while ignoring urinalysis tests and writing prescriptions for a form of medication more susceptible to abuse.
“Healthcare professionals should be looked upon as heroes. Unfortunately, in this matter the physician abused his position of trust, and cast a shadow on the profession,” said United States Attorney John W. Huber. “The addiction epidemic continues to cause despair in American homes and communities. In partnership with the DEA, we will bring accountability to those who exploit the vulnerable.
“This investigation highlights the cooperative efforts between the U.S. Attorney’s Office and members of the DEA Salt Lake City District Office in combatting the illegal distribution of controlled substances in Utah, said DEA Assistant Special Agent in Charge Michael J. Tinkler. The DEA is committed to ensuring that those individuals prescribing regulated medications do so in a safe and legal manner.”
Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office prosecuted the civil and criminal cases against Dr. Greenwood. Special agents and Diversion Investigators from the DEA conducted the investigation.
Richards Pleads Guilty to Charge of Receipt of Misbranded Drugs Imported from ChinaRead the Press Release
SALT LAKE CITY – Daniel Kevin Richards, 37, of Sandy, Utah, pleaded guilty to receiving misbranded chloroquine from China with the intent to sell the drug in the United States. In the plea agreement, Richards admitted that, in April of 2020, he imported and received over 50 kilograms of misbranded and mislabeled chloroquine from China. Richards admitted that the chloroquine was falsely mislabeled as “Boswellia Serrata Extract” and that the drug was not manufactured and prepared by an establishment registered as a drug manufacturer with the Food and Drug Administration. Additionally, the labeling on the drugs failed to bear adequate directions for use as required by federal law. At sentencing, Richards faces a maximum possible sentence of up to a year in prison and a $100,000 fine. Richards has also agreed to pay for the destruction of the drug by the proper authorities at the conclusion of the case.
“This office, with our partners at the FDA and FBI, pursued every meaningful investigative lead in this matter, and fully examined the facts and circumstances surrounding this federal offense,” said United States Attorney John W. Huber. “This is the just outcome of that thorough investigation, and it will conclude our review.”
“The FDA continues to proactively identify and neutralize threats to consumers, particularly those related to COVID-19. Proffering the sale of misbranded prescription drugs of unknown origin puts consumers’ health at risk,” said Special Agent in Charge Charles L. Grinstead, FDA Office of Criminal Investigations Kansas City Field Office. “We will continue to investigate and bring to justice those who intend to exploit consumers’ fears during the pandemic with potentially dangerous drugs.”
Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office prosecuted the case. Special Agents of the Food and Drug Administration- Office of Criminal Investigations, the FBI, and investigators from the Salt Lake County District Attorney’s Office conducted the investigation.
Jackson Sentenced to 10 Years in Federal Prison for Possession of Child Pornography ConvictionRead the Press Release
SALT LAKE CITY – Patrick George Jackson, 60, of North Salt Lake, Utah, will serve 10 years in federal prison followed by 84 months of supervised release after pleading guilty to possession of child pornography in federal court. In the plea agreement, Jackson admitted that in May of 2019, he possessed over 600 images of child pornography on his electronic devices. Jackson also admitted that he had been previously convicted twice of sexual offenses Utah, including a 1990 conviction for Sexual Abuse of a Child, and a 2002 conviction for Attempted Forcible Sexual Abuse. After his release from federal prison, Jackson will be required to register as a sex offender under the Sex Offender Registration and Notification Act.
Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office prosecuted the case. Special Agents of the FBI conducted the investigation.
Vivint Smart Homes Inc. to Pay $3.2 Million to Resolve Allegations of False Statements to Federally Insured BankRead the Press Release
WASHINGTON – Vivint Smart Home Inc. (Vivint), based in Provo, Utah, has agreed to pay the United States $3.2 million to resolve allegations under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) that Vivint employees made false statements to secure financing for customers’ purchases of Vivint’s home monitoring products, the Justice Department announced today. FIRREA imposes civil penalties on any person or entity that violates certain predicate federal statutes.
Vivint is a provider of smart home monitoring services and frequently obtains new customers through door-to-door sales by Vivint sales representatives. The United States contended that, from 2017 to 2020, certain Vivint sales representatives used their personal funds to cover the cost of initial financing payments on behalf of Vivint customers who sought financing to purchase Vivint’s products, while making false and misleading statements to the federally insured financial institution providing the financing that made it appear as if the borrowers had funded the initial payments.
“Making false statements about the creditworthiness of borrowers undermines the integrity of our banking system and puts at risk the taxpayer dollars that help to support it,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Civil Division. “We will pursue those who fail to provide truthful information needed by federally insured financial institutions to make appropriate lending decisions.”
“American business should be based on truthful disclosures, and false and misleading statements should never be part of dealings with federally insured financial institutions,” said U.S. Attorney John W. Huber for the District of Utah. “This resolution should send a strong message to corporations that using fraudulent tactics to secure consumer sales will not be tolerated.”
The allegations resolved by the settlement were initially provided to the United States in a declaration submitted under the Financial Institutions Anti-Fraud Enforcement Act, which provides for rewards to eligible declarants who provide information about potential FIRREA violations. The declarant’s share of the recovery in this matter has not yet been determined.
This matter was investigated by the U.S. Attorney’s Office for the District of Utah and the Civil Division’s Commercial Litigation Branch (Fraud Section). Investigative assistance was provided by the FBI.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Robbins Sentenced to 60 Months in Federal Prison for Securities Fraud and Money Laundering ConvictionsRead the Press Release
SALT LAKE CITY – Thomas Robbins, 65, of Heber City, Utah, will serve 60 months in federal prison after pleading guilty to securities fraud and money laundering in July. As a part of his plea agreement, Robbins admitted he induced victims to invest more than $10 million in a fraudulent foreign currency day-trading business beginning in 2016 and ending in early 2020. Robbins was sentenced Wednesday.
According to the plea agreement, as a part of his efforts to lull investors into a false sense of security about their investments, Robbins told investors he had achieved high returns in his foreign day-trading business. In fact, Robbins lost millions of dollars and diverted investor money for his personal use and benefit. He solicited approximately 66 investors to invest around $10,170,700.69 in his scheme.
Robbins admitted that he made several fraudulent representations in his communication with investors in the scheme. These representations included telling investors that he had spent 11 years developing an algorithm for foreign currency trading which allowed him to average returns of 5 percent to 30 percent per month, that he had previously worked for a German bank where he was on contract to help the bank develop algorithms for their traders to use, that he used more than 13 different brokerage firms in different countries to facilitate his foreign currency trading program, that he assured investors that his trading program was compliant with the laws of the Commodities Futures Trading Commission, and that people who invested with him would never lose more than 5 percent of the net equity in their trading account due to “stop loss” measures.
Robbins also admitted in the plea agreement that he made these false representations knowing he was not providing a legitimate investment, that he had lost nearly all of the investor money, and that he was using a portion of the investor money on personal living expenses and no significant investment returns were ever generated.
“Thomas Robbins is a classic example of a Utah fraudster. He is a repeat offender who bilks trusting investors out of their hard earned savings while exploiting their trusting nature,” said United States Attorney John W. Huber. “Like-minded swindlers should take note that they are on the radar screen, and we will hold them accountable. For Utah investors, we strongly encourage healthy skepticism and due diligence before parting with your money.”
“We hope this latest sentence will finally send a message to Thomas Robbins and others like him that fraud doesn’t pay,” said Special Agent in Charge Paul Haertel of the Salt Lake City FBI Office. “Financial crimes are not victimless. A scam can devastate innocent people whose life savings are usually never recovered. The FBI and our partners will never turn a blind eye to those who deceive and betray people’s trust out of greed.”
Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office prosecuted the case. Special agents of the FBI and IRS-Criminal Investigation conducted the investigation.