District of Arizona

PHOENIX – Gregory Lynn Shrader, 55, of Jay, Okla., was found guilty of willfully making a threat to kill by means of an explosive, transport of explosive material with the intent to intimidate, mailing injurious articles, and possession of explosive material by a prohibited possessor by a federal jury in Phoenix. The case was tried before U.S. District Judge Neil V. Wake between Sept. 4, 2014 and Sept. 11, 2014. The defendant is being held after trial. Sentencing is set before Judge Wake on Dec. 1, 2014.

            The evidence at trial showed that Shrader threatened to kill Sheriff Joe Arpaio with an improvised explosive device on April 10, 2013.  The evidence at trial showed that Shrader made the mail bomb threat as part of a revenge scheme to frame a former business partner.  Sometime in early 2013, Shrader constructed an explosive device and placed it into a United States Postal Express Mail Box and designed it to appear operational. 

The evidence at trial showed that Shrader was unhappy with the results of two failed lawsuits filed against his former business partner.  As an act of revenge, Shrader addressed his package to Sheriff Joe Arpaio with a return address belonging to his former business partner.

            A conviction for willfully making a threat to kill by means of an explosive carries a maximum penalty of 10 years, a $250,000 fine or both.  A conviction for transport of explosive material with the intent to intimidate carries a maximum penalty of 10 years, a $250,000 fine or both.  A conviction for mailing injurious article carries a maximum penalty of 1 year, a $100,000 fine or both.  A conviction for possession of explosive material by a prohibited possessor carries a maximum penalty of 10 years, a $250,000 fine or both.  In determining an actual sentence, Judge Wake will consult the U.S. Sentencing Guidelines, which provide appropriate sentencing ranges.  The Judge, however, is not bound by those guidelines in determining a sentence. 

            The investigation in this case was conducted by the United States Postal Inspection Service and the Federal Bureau of Investigation.  The prosecution was handled by Assistant United States Attorneys Raymond K. Woo and Paul Stearns, District of Arizona, Phoenix.

CASE NUMBER:                  CR-14-0355-PHX-NVW
RELEASE NUMBER:           2014-051_Shrader
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PHOENIX – On Sept. 10, 2014, Joel Leon Thomas, Jr., 24, of El Mirage, Ariz., was sentenced by Judge David G. Campbell to 49.5 years in federal prison for masterminding three bank robberies in Peoria, Surprise, and Sun City from January - February 2012.   In March 2014, a federal jury found Thomas guilty of three counts of conspiracy to commit bank robbery, two counts of aid and abet armed bank robbery, one count of aid and abet bank robbery, and two counts of using a firearm in furtherance of a crime of violence.

            The evidence at trial showed that Thomas, a bank teller at the time of the robberies, provided inside information to his co-conspirators about bank security measures and bank layouts to craft plans to rob three banks in January – February 2012.  The conspiracy targeted banksThomas worked at in the Surprise, Sun City, and Peoria areas.  Thomas orchestrated two bank robberies at gunpoint, and in one of those robberies, he posed as a victim bank teller as he loaded $246,000 from the vault into a duffel bag for the armed gunman, his friend. In a third bank robbery, the conspiracy recruited two homeless men to commit a “note job” where they demanded money from a victim bank teller inside a busy grocery store and turned over the money to Thomas and other conspirators.  After obtaining search warrants, police seized approximately $150,000 in stolen bank money, firearms, ammunition, bank robbery demand notes, and hand-drawn diagrams of the banks from the residences and cars of Thomas and others charged in the conspiracy.  Five others were charged and pleaded guilty in the conspiracy. 

            The investigation in this case was conducted by the Federal Bureau of Investigation and the FBI’s Bank Robbery Task Force, the Peoria Police Department, the Surprise Police Department, and the Tempe Police Department.  The prosecution was handled by Jennifer E. Green and Tracy Van Buskirk, Assistant U.S. Attorneys, District of Arizona, Phoenix.

CASE NUMBER:                  CR-12-00523-002-PHX-DGC
RELEASE NUMBER:           2014-050_Thomas

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United States Attorney John S. Leonardo
DISTRICT of ARIZONA
________________________________________________________________________

WASHINGTON –Seven current and former members of the U.S. Attorney’s Office in the District of Arizona, along with four special agents of Homeland Security Investigations (HSI), were among those recognized by Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 30th annual Director’s Awards Ceremony today in Washington D.C.

The District of Arizona was one of 44 districts represented at the ceremony, where they were the recipients of two distinguished awards.  This event was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.

In his remarks to awardees, Attorney General Holder said, “Locally, nationally, and internationally, you represent the very best that this Department has to offer.  Your work embodies our ongoing commitment – not merely to win cases, but to do justice; to protect our fellow citizens from crime, violence, and terrorism; to empower the most vulnerable among us; and to uphold the rule of law.”
 
EOUSA Director Monty Wilkinson echoed those sentiments, saying to the recipients, “You have persevered, and remained focused and motivated – achieving remarkable results in work that makes a difference in the lives of citizens across our great country. The vast scope of your collective accomplishments is nothing short of exceptional.”

 “I am very proud of this recognition by the Attorney General of the efforts and accomplishments of those in our office who work very hard every day to accomplish our mission of serving the American people,” said U.S. Attorney John S. Leonardo. 

 First, the award for “Superior Performance by a Litigative Team” recognizes the outstanding work of our office and Homeland Security Investigations in “Operation In Plain Sight,” a complex investigation which resulted in the convictions of 73 defendants for their roles in an extensive human smuggling operation.  The defendants had been responsible for transporting and harboring thousands of illegal aliens using licensed shuttle companies operating in Nogales and Tucson.  The individual award recipients include:  current team members of our office - Alexis Ball, Lisa Jennis, Joseph Koehler, and Sandy Solis; former members of our office - Jeff Martino, Brian Sardelli, and Munish Sharda; and our law enforcement partners from HSI - Carolyn Callahan, Adam Carpenter, Christopher Frazier, and Liza Lugo.

The second award was given to Dimitra Sampson for “Superior Performance in Indian Country.”  Dimitra was recognized for her extraordinary accomplishments in advancing programmatic goals of the District’s Indian Country Public Safety Initiative and in prosecuting cases under the Major Crimes Act.  In addition to trying a high volume of cases involving homicide, sexual assault and child abuse, in her role as trial liaison she developed tribal-federal task forces, which conducted very successful community drug sweeps.  These operations were very well received and there is now a demand from other Tribal communities to replicate them.

PHOENIX – On Aug. 25, 2014, Curtis Ray Manuel, 23, of Bapchule, Ariz., a member of the Gila River Indian Community, was sentenced by U.S. District Judge G. Murray Snowto 187 months in prison to be followed by lifetime supervised release. Manuel pleaded guilty on June 11, 2014, to abusive sexual contact of a minor

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

The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.

CASE NUMBER:           CR-14-00065-PHX-GMS 
RELEASE NUMBER:   2014-049_Manuel

PHOENIX - Today, Christopher Earl Terry, 41, a member of the Gila River Indian Community, was sentenced by U.S. District Judge Diane J. Humetewa to 8.5 years in prison followed by three years of supervised release. Terry previously pleaded guilty to one count of child abuse. 

            Documents contained within the public record indicate that Terry seriously injured the victim, a small infant, while babysitting him at a residence within the Gila River Indian Community.  The victim suffered significant physical injuries.

            In deciding the sentence, Judge Humetewa rejected Terry’s contention that he injured the child during rough play, and instead noted his “egregious” conduct. 

            The investigation in this case was conducted by the Gila River Police Department.  The prosecution was handled by Christine Keller, Assistant U.S. Attorney, District of Arizona, Phoenix.

CASE NUMBER:                  CR-14-00242-PHX-DJH
RELEASE NUMBER:           2014-048_Terry

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az

PHOENIX – On Aug. 18, 2014, Luis Enrique Villegas-Lugo, 40, of Culiacan, Sinaloa, Mexico was sentenced by Senior U.S. District Judge Roslyn O. Silverto 17.5 years in prison. Villegas-Lugo pleaded guilty on Feb. 25, 2014 to conspiracy to possess with intent to distribute 500 grams or more of methamphetamine, a felony.

The Organized Crime Drug Enforcement Task Force investigation into the Villegas-Lugo Drug Trafficking Organization (DTO) took place from July 2006 through September 2006 in Phoenix.  On Feb. 25, 2009, the defendant was charged with conspiring to possess with the intent to distribute methamphetamine, possessing methamphetamine, and possessing firearms in furtherance of the drug trafficking business.  The evidence showed that the DTO imported methamphetamine from Mexico into the United States and transported it to a stash house in Phoenix.  Once there, the methamphetamine was distributed to customers.  During the investigation, law enforcement agents seized approximately 20 pounds of methamphetamine, two handguns, two rifles, and drug packaging materials from the stash house.      

The investigation in this case was conducted by the Drug Enforcement Administration, the Phoenix Police Department, the Maricopa County Sheriff’s Office, and the Surprise Police Department.  The prosecution was handled by Jonell L. Lucca, Assistant U.S. Attorney, District of Arizona, Phoenix.

CASE NUMBER:           CR-09-00210-001-PHX-ROS      
RELEASE NUMBER:   2014-046_Villegas-Lugo

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TUCSON, Ariz. – Carondelet Health Network, an Arizona non-profit corporation doing business as Carondelet St. Mary’s Hospital and Carondelet St. Joseph’s Hospital in Tucson, Ariz., has agreed to pay the United States $35,000,000 to resolve civil allegations that the hospitals violated the federal False Claims Act by submitting false bills to Medicare and other federal health care programs.

“This settlement is the largest-ever False Claims Act recovery in Arizona, and it reflects the longstanding and ongoing efforts of our office to guard the vital but limited funding of federal health care programs,” said United States Attorney John S. Leonardo.  “Inpatient rehabilitation services are very costly to taxpayers, and it is critical that these federal dollars be reserved only for those qualified patients who need the intense rehabilitation therapy services provided in an inpatient setting.”

“This settlement shows OIG’s hard work to safeguard the taxpayer dollars,” said Glenn R. Ferry, Special Agent in Charge for the Los Angeles Region of the United States Department of Health and Human Services, Office of Inspector General.  “Health care fraud victimizes both patients and the American taxpayers, and we are dedicated to investigating and prosecuting these types of activities.”

The settlement agreement resolves allegations that from April 7, 2004, through Dec. 31, 2011, Carondelet St. Mary’s Hospital and Carondelet St. Joseph’s Hospital billed Medicare, the Federal Employees Health Benefit Program, and the Arizona Health Care Cost Containment System (Arizona’s Medicaid agency) for inpatient rehabilitation facility services that were not properly reimbursable under applicable coverage criteria because the patients were not appropriate for inpatient rehabilitation facility services.  The United States alleged that as a result of these false claims, federal health care programs paid substantially more than was warranted.

Shortly before becoming aware of the United States’ investigation, Carondelet disclosed to the government some inpatient rehabilitation overpayments and tendered a substantial repayment.  However, based on its investigation, the United States had concerns about the nature of Carondelet’s disclosure, including concerns that the disclosure and the repayment Carondelet tendered were not timely, complete, or adequate.  Despite these concerns, the United States considered Carondelet’s efforts in this regard as one of several factors in reaching the settlement amount and the resolution of the case.  The settlement is neither an admission of liability by the hospitals, nor is it a concession by the United States that its claims are not well founded.

The settlement resolves a lawsuit filed in November 2011 by Jacqueline Bloink under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery obtained.  The case was filed in the United States District Court for the District of Arizona and is captioned United States ex rel. Bloink v. Carondelet Health Network, et al., (CV-11-721-TUC-FRZ).  Ms. Bloink will receive a share of the settlement payment that resolves the qui tam suit she filed.

The case was investigated by the United States Attorney’s Office for the District of Arizona; the United States Department of Health and Human Services, Office of Inspector General; and the United States Office of Personnel Management, Office of Inspector General. 

Individuals with information regarding fraud, waste, or abuse related to Medicare or other federal programs are encouraged to file a complaint with the United States Attorney’s Office through the office’s website, http://www.justice.gov/usao/az/, or by calling (602) 514-7500.

Attachment: Carondelet Settlement Agreement (PDF)

RELEASE NUMBER:   2014-047_Carondelet

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

PHOENIX– On July 31, 2014, John Cary Dean, 28, of Phoenix, Ariz., was sentenced by U.S. District Judge Douglas L. Rayesto 6.5 years in prison. Dean pleaded guilty on Jan. 23, 2014 to two counts of possession with intent to distribute less than 50 kilograms of marijuana, one count of manufacturing marijuana, and possession of a firearm in furtherance of drug trafficking offenses, all felonies.

On July 23, 2013, Dean was charged with numerous marijuana trafficking and weapons offenses, including being a felon in possession of firearms.  The evidence showed that Dean was involved in the growing, packaging, and distributing of high-grade marijuana in Arizona and out-of-state.  Dean possessed firearms for his protection while trafficking marijuana.  Dean was first contacted by Arizona Department of Public Safety officers in February 2013 in Flagstaff with 25 pounds of high-grade marijuana and a loaded .357 handgun en route to Alabama to deliver the marijuana to customers.  In May 2013, law enforcement arrested Dean and searched his residence.  Officers found a well-outfitted marijuana grow operation, 32 pounds of marijuana packaged for sale, hydroponic growing supplies, $79,587 in cash, and eleven firearms including four handguns, five rifles, and two shotguns.    

The investigation in this case was conducted by the Flagstaff Offices of the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Arizona Department of Public Safety.  The prosecution was handled by Jonell L. Lucca, Assistant U.S. Attorney, District of Arizona, Phoenix.

CASE NUMBER:           CR-13-01029-PHX-DLR 
RELEASE NUMBER:   2014-045_Dean

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PHOENIX– On July 28, 2014, Kristi Marie Egger, 34, of Mesa, Ariz., and Michael Wayne Egger, 47, of Mesa, Ariz., were sentenced by U.S. District Judge Susan R. Bolton after   each pleaded guilty to two felony counts for conspiring to defraud the United States by filing false federal income tax returns.  Kristi Egger was sentenced to 12 months and a day imprisonment and Michael Egger was sentenced to 30 months’ imprisonment.

Two other defendants were previously sentenced in connection with related tax refund conspiracies.  On April 14, 2014, Joseph Andrew Murray, 43, of Mesa, Ariz. was sentenced to 30 months’ imprisonment and Samuel George Hamilton, 43, of Peoria, Ariz. was sentenced to 24 months’ imprisonment. 

According to their respective plea agreements, all four defendants participated in a scheme to obtain, and to aid others to obtain, the payment of refunds from the Internal Revenue Service through the preparation and filing of federal individual income tax returns that contained false and fictitious refund claims.  In most instances, the defendants would cause pre-paid debit cards to be created in the names of the individuals for whom they were filing the returns and would have these cards mailed to addresses that they controlled. Once the refunds were deposited, cash was withdrawn from ATMs and the proceeds were distributed between the defendants and others.  According to the indictments, each return was filed in the name of a prisoner located in an Arizona State prison, many of whom were incarcerated during all or part of the tax year upon which the return was filed.

In total, there were three related but distinct conspiracies.  Kristi Egger was involved in separate conspiracies with Michael Egger and Joseph Murray.  Michael Egger was also involved in a separate conspiracy with Samuel Hamilton.  Kristi Egger was ordered to pay $166,866 in restitution, Michael Egger was ordered to pay $104,441 in restitution, Joseph Murray was ordered to pay $14,020 in restitution, and Samuel Hamilton $8,208 in restitution.

The investigation in this case was conducted by the Internal Revenue Service, Criminal Investigation.  The prosecution was handled by Howard D. Sukenic, Assistant U.S. Attorney, District of Arizona, Phoenix.

CASE NUMBER:           CR-13-01245/6/7-SRB   
RELEASE NUMBER:   2014-043_Egger etal

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PHOENIX– On July 28, 2014, Rocky Delgado Marquez, 36, of Phoenix, Ariz., was sentenced by U.S. District Judge David G. Campbellto 18 years in prison. Marquez pleaded guilty on April 10, 2014 to conspiracy to possess with intent to distribute 1,000 kilograms or more of marijuana, conspiracy to commit money laundering, and felon in possession of a firearm, all felonies.

On May 1, 2012, Marquez was charged with numerous marijuana trafficking and money laundering offenses.  The evidence showed that Marquez was responsible for coordinating the importation of marijuana from Mexico into the United States.  He recruited load drivers and obtained vehicles that were outfitted with hidden compartments to hold hundreds of pounds of marijuana.  Once the marijuana was in the United States, Marquez was responsible for distributing the marijuana to customers primarily in the Midwest.  The cash profits were collected and returned to Marquez in Phoenix.  Marquez purchased homes, land, and vehicles with narcotics proceeds totaling over $745,000.  During the investigation, law enforcement agents seized approximately 5,290 pounds of marijuana, $2,713,000 in U.S. currency, one home, two parcels of land, and several vehicles.

On May 14, 2012, Marquez escaped from the Maricopa County Lower Buckeye Jail.  On Jan. 14, 2013, after an eight-month search, Marquez was arrested in the Detroit area by the U.S. Marshals Service.  Marquez was in possession of an assault-style rifle with a loaded high-capacity magazine.  He had been convicted previously of misconduct involving weapons, a felony, in Maricopa County.  On Jan. 20, 2013, Marquez escaped from a Wayne County, Michigan jail facility and fled to Mexico.  Following an intensive manhunt by the U.S. Marshals Service, he was arrested in Mexico on Feb. 26, 2013.  Marquez was returned to the United States on Feb. 27, 2013, and has remained in custody.                  

The investigation in this case was conducted by Homeland Security Investigations-Phoenix and the United States Marshals Service in Phoenix and Detroit.  The prosecution was handled by Assistant U.S. Attorneys Jonell L. Lucca, District of Arizona, Phoenix and Margaret M. Smith, of the Eastern District of Michigan.

CASE NUMBER:           CR-12-00906-PHX-DGC and CR-14-00484-PHX-DGC           
RELEASE NUMBER:   2014-044_Marquez

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PHOENIX – On July 22, 2014, Branden Pete, 28, of Greasewood, Ariz., was sentenced by Senior U.S. District Judge Stephen M. McNameeto 708 months (59 years) in prison. Pete was found guilty by a federal jury on Oct. 31, 2005 of murder in the second degree; murder during the commission of the crime of kidnaping; murder during the commission of the crime of aggravated sexual abuse and conspiracy to commit first degree murder.

The evidence at trial showed that on May 18, 2002, Branden Pete, Irvin Cepi, Harris James and Hoskie James, all members of the Navajo Nation, picked up the victim on the Navajo Reservation and drove her to a remote location where she was forcibly raped by then 16 year-old Branden Pete, Irvin Cepi, Harris James and Hoskie James.  The victim was then driven to another remote location where she sustained fatal injuries to her head at the hands of both Irvin Cepi and Branden Pete.

Her body was not discovered until Aug. 26, 2002.  An anonymous tip led authorities to these four who all confessed their involvement.

The defendant was originally sentenced to mandatory life imprisonment on April 17, 2006.  However, in 2012 the United States Supreme Court in Miller v. Alabama, decided that juveniles should not face mandatory life sentences and that the courts should consider the infirmities of youth in determining their level of culpability.  The defendant presented evidence of a dysfunctional upbringing and significant substance abuse issues.  The Court took these into account but was shocked by the actions of the defendant in taking the life of another in such a brutal fashion.  The court also noted that Pete had accumulated a significant number of disciplinary problems while serving his sentence in the Bureau of Prisons.  Ultimately, the Judge decided against re-imposing a sentence of life imprisonment but rather selected the 708-month sentence stating that he did so both to punish the defendant for the crimes he committed and to protect the community.  The defendant will receive credit for the nearly 12 years he has already served in prison.

The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Department of Law Enforcement. The prosecution was handled by Vincent Q. Kirby, Assistant U.S. Attorney, District of Arizona, Phoenix, Ariz.

CASE NUMBER:            CR-03-0035-PCT-SMM
RELEASE NUMBER:     2014-040_Pete

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PHOENIX – On July 22, 2014, a federal grand jury returned a four-count indictment against Ross Stetson Tewangoitewa, 67, of Shungopavi Village, Ariz., for aggravated sexual abuse of a minor.

A conviction for aggravated sexual abuse of a minor carries a maximum penalty of life in prison, a $250,000 fine, or both.

An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

The investigation preceding the indictment was conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs.

CASE NUMBER:                   CR-14-8139-SPL (DKD)
RELEASE NUMBER:            2014-042_Tewangoitewa

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PHOENIX– On July 23, 2014, Ambrosio Nunez-Lopez, 65, of Mexico, was sentenced by U.S. District Judge David G. Campbellto 10 years in prison. Nunez-Lopez pleaded guilty on March 18, 2014 to conspiracy to possess with intent to distribute 500 grams or more of methamphetamine, a felony.

The Organized Crime Drug Enforcement Task Force investigation into the Nunez-Lopez Drug Trafficking Organization (DTO) took place from Jan. 2012 through May 2012 in Phoenix.  On May 4, 2012, the defendant was charged with conspiring to possess with the intent to distribute methamphetamine and possessing methamphetamine.  The evidence showed that the DTO imported methamphetamine from Mexico into the United States and transported it to the East Coast for distribution.  After a four-month long investigation, officers conducted a traffic stop of Nunez-Lopez on Interstate 10 East, and searched his truck.  Agents located approximately 120 pounds of methamphetamine in liquid form hidden in one of the dual gas tanks of his truck.         

The investigation in this case was conducted by the Drug Enforcement Administration, the Tempe Police Department, the Arizona Department of Public Safety, and the Mesa Police Department.  The prosecution was handled by Jonell L. Lucca, Assistant U.S. Attorney, District of Arizona, Phoenix.

CASE NUMBER:            CR-12-00982-PHX-DGC 
RELEASE NUMBER:     2014-041_Nunez-Lopez

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PHOENIX, Ariz. – Willard John, 36, of Cibecue, Arizona, was found guilty of Second Degree Murderby a federal jury in Phoenix on July 11, 2014.  The case was tried before U.S. District Judge James A. Teilborg.  The defendant, who remains in custody, is scheduled to be sentenced before Judge Teilborg on October 15, 2014.

            The evidence at trial showed that John killed the mother of his two young children on or about March 19, 2012, by stabbing her multiple times and cutting her neck with a pair of household scissors.  Following the murder, he cut his own throat, but survived his injuries.  The evidence revealed that John had been physically abusing the victim for years prior to the murder.

            A conviction for Second Degree Murder carries a maximum penalty of life imprisonment, a $250,000.00 fine, or both.

            The investigation in this case was conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs.  The prosecution was handled by Dimitra H. Sampson, Assistant U.S. Attorney, District of Arizona, Phoenix.

CASE NUMBER:                  CR-12-8082-PCT-JAT
RELEASE NUMBER:           2014-039_John

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PHOENIX – On July 9, 2014, Joe Arviso Benally, 51, of Red Valley, Ariz., was found guilty of involuntary manslaughter and use (discharge) of a firearm in a crime of violence by a federal jury following a trial before U.S. District Judge G. Murray Snow. The defendant was remanded into custody after trial pending sentencing before Judge Snow on Sept. 29, 2014.

            The evidence at trial showed that the defendant, after an argument with the victim, retrieved his .270 caliber hunting rifle, loaded it, and shot the victim in the chest, killing him.

            A conviction for involuntary manslaughter carries a maximum penalty of 8 years, a $250,000 fine, or both.  A conviction for use (discharge) of a firearm in a crime of violence carries a mandatory minimum penalty of 10 years, consecutive to the punishment for the crime of violence. 

            The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Department of Public Safety. The prosecution was handled by Melissa Karlen and Christina Covault, Assistant U.S. Attorneys, District of Arizona, Phoenix.

CASE NUMBER:                  CR-13-8095-PCT-GMS (DKD)
RELEASE NUMBER:           2014-038_Benally

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TUCSON, AZ – On June 26, 2014, Marques West, 30, of Glendale, AZ was sentenced by U.S. District Judge Cynthia K. Jorgenson to 160 months imprisonment followed by 5 years supervised release. West pleaded guilty on April 17, 2014, to one count of transportation of a minor with intent to engage in in prostitution.   

Sometime between January 20, 2013, and January 29, 2013, West transported a minor female from El Paso, Texas, to Tucson, Arizona, with the intent that the minor female engage in commercial sex acts. 

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

The investigation in this case was conducted by the Tucson Police Department and the Federal Bureau of Investigation, Tucson. The prosecution was handled by Karen Rolley and Arturo Aguilar, Assistant U.S. Attorneys, District of Arizona, Tucson.

CASE NUMBER:           CR-13-01493                  
RELEASE NUMBER:   2014-037_West

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

TUCSON, Ariz. - The National Center for Missing and Exploited Children (NCMEC) created the Take 25 campaign to encourage families to take 25 minutes to talk to their children about safety and abduction prevention. NCMEC estimates that 800,000 children are reported missing in America every year, which is more than 2,000 children each day. Fortunately, most of these children are quickly located.

NCMEC has found that in 51% of attempted abduction cases, children escaped would-be abductors through their own actions. 32% of the children actively resisted (yelling, kicking, pulling away, running away, or attracting attention).  Even more inspiring is that in 17% of these cases, a parent or another individual intervened to rescue the child. Teaching and reassuring children about safety - without scaring them - requires a delicate balance. Take 25 provides parents tools and age-appropriate suggestions for approaching the topic of safety with their children.

            “The annual Take 25 national child safety campaign is particularly important this time of year, when children begin their summer breaks from school and have more time on their hands” said U.S. Attorney John S. Leonardo. “We encourage parents to take time and pledge to talk with their children about safety and abduction prevention.  We hope that the tools and information provided at this year’s Take 25 event will assist families in keeping their children safe.”

This year, the United States Attorney’s Office, in partnership with the U.S. Marshals Service, Department of Homeland Security,  Federal Bureau of Investigation,  the Tucson Police Department,  the Arizona Attorney General’s Office, the Pima County Sheriff’s Office, and the Arizona Child Advocacy Center, will offer a Take 25 child safety event at the Tucson Children’s Museum.  This event is designed to help parents and others teach children to be alert to potential threats and provide steps that children can take to stay safe, both on the Internet and in daily life.

The event will be held on Monday, June 30, 2014 at the Children’s Museum Tucson, from 9:00 a.m. to 4:00 p.m.  Information regarding child safety will be provided, and law enforcement representatives will be available to speak with children and parents.  In addition, interactive children’s self-defense demonstrations by Ko Sho Martial Training Institute will be scheduled throughout the day, and digital child identification kits will be provided free of charge to those that attend.

For more information on NCMEC, visit www.missingkids.com. For more information about the Take 25 campaign, visit www.Take25.org. For more information on Project Safe Childhood, visit www.projectsafechildhood.gov.  

RELEASE NUMBER:           2014-036_Take_25_Tucson

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az

PHOENIX – On June 18, 2014, the final defendant was sentenced in connection with Operation Clean Green – a multi-year investigation conducted by the U.S. Drug Enforcement Administration and Internal Revenue Service.  Hector Raul Ortiz-Tarazon, Sr. and his son, Hector Francisco Ortiz, Jr. ran a drug trafficking organization (DTO) that shipped marijuana to the Midwest and East Coast.  Twelve (12) defendants were charged in the superseding indictment for crimes including conspiracy to possess with intent to distribute marijuana, money laundering, and possession of a firearm during a drug trafficking offense.

The organization trafficked over 1,300 pounds of marijuana, generating proceeds in excess of $1,000,000.  The DTO received cash and money orders from marijuana customers as payment for the marijuana.  Federal agents seized approximately $400,000 in assets, including cash, eight vehicles, thirty-nine (39) firearms, and numerous rounds of ammunition. 

The sentences imposed include the following:

On June 11, 2014, Hector Raul Ortiz-Tarazon, Sr., 47, of Mesa, Ariz., was sentenced by U.S. District Judge James A. Teilborg to 15 years in prison.  Hector Raul Ortiz-Tarazon, Sr. pleaded guilty on Dec. 13, 2013, to conspiracy to possess with intent to distribute marijuana, money laundering, and possession of a firearm during a drug trafficking offense.

On June 11, 2014, Hector Francisco Ortiz, Jr., 24, of Mesa, Ariz., was sentenced by U.S. District Judge James A. Teilborg to 15 years in prison.  Hector Francisco Ortiz, Jr. pleaded guilty on Dec. 13, 2013, to conspiracy to possess with intent to distribute marijuana, money laundering, and possession of a firearm during a drug trafficking offense. 

On June 17, 2014, Guadalupe Velazquez, 24, of Phoenix, Ariz., was sentenced by U.S. District Judge James A. Teilborg to 10 years and 1 month in prison.  Guadalupe Velazquez pleaded guilty on Dec. 11, 2013, to conspiracy to possess with intent to distribute marijuana, and money laundering. 

On June 12, 2014, Marcos Velazquez, 21, of Phoenix, Ariz., was sentenced by U.S. District Judge James A. Teilborg to 60 months in prison.  Marcos Velazquez pleaded guilty on Dec. 10, 2013, to conspiracy to possess with intent to distribute marijuana. 

On June 4, 2014, Gerardo Edmundo Andrada-Pastrano, 45, of Phoenix, Ariz., was sentenced by U.S. District Judge James A. Teilborg to 57 months in prison.  Gerardo Edmundo Andrada-Pastrano pleaded guilty on Dec. 5, 2013, to possession with intent to distribute marijuana.  

On June 18, 2014, Reuben Clayton Treasure, 45, of New York, NY, was sentenced by U.S. District Judge James A. Teilborg to 46 months in prison.  Reuben Clayton Treasure pleaded guilty on Jan. 3, 2014, to conspiracy to possess with intent to distribute marijuana, and money laundering. 

The investigation in this case was conducted by agencies participating in the Organized Crime Drug Enforcement Task Force.  The lead agencies were the U.S. Drug Enforcement Administration and Internal Revenue Service Criminal Investigation, and included the participation of the Pinal County Sheriff’s Office, the Coolidge Police Department, the Apache Junction Police Department, and the Chandler Police Department.  The prosecution was handled by Keith Vercauteren and Jonell Lucca, Assistant U.S. Attorneys, District of Arizona, Phoenix.

CASE NUMBER:           CR-12-0877-PHX-JAT  
RELEASE NUMBER:   2014-035_Ortiz

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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PHOENIX – On June 9, 2014, John Kweku Eshun, 52, of Ellenwood, Ga., was sentenced by U.S. District Judge G. Murray Snow to 41 months in prison. Eshun is the 12th and final defendant sentenced in Operation Frozen Freight – a multi-year investigation conducted by the Organized Crime Drug Enforcement Task Force (OCDETF). On Aug. 10, 2010, 12 defendants were charged with running a conspiracy that used a network of front businesses and warehouses, residences, cars, and semi-tractor trailers to package and ship loads of marijuana from Arizona to Ohio, then to package, ship or deposit cash proceeds from those sales. Charges in the initial and superseding indictments included multiple counts of conspiracy to possess with intent to distribute marijuana, money laundering, promotional money laundering, illegal financial transactions to further the conspiracy. The conspiracy used aliases and false business names such as “Sea of Cortez Seafood & Produce Distribution, LLC”, “Wedoito’s Hotdogs, LLC”, “AB Trucking”, and others.

The organization is alleged to have trafficked at least 50,000 pounds of marijuana and one to two tons of cocaine, generating proceeds in excess of $34 million.  Federal agents seized approximately $700,000 in assets, including numerous vehicles (including a semi-tractor-trailer), guns, jewelry, and a house in the course of the investigation.

 The defendants received the following sentences:

Jonathan Ortiz Troncoza, 41, of Tucson, Ariz., was sentenced to 120 months in prison. 

David Ortiz Troncoza, 44, of Tucson, Ariz., was sentenced to 70 months in prison. 

John Kweku Eshun, 52, of Ellenwood, Ga., was sentenced to 41 months in prison. 

Edward Christopher Morales, 43, of Tucson, Ariz., was sentenced to 150 months in prison.

Shawn Handell Holloway, 43, of Cleveland, Ohio, was sentenced to 144 months in prison. 

Manuel Martin Garcia, 37, of Tucson, Ariz., was sentenced to 60 months in prison. 

Robert D. Wilson, 33, of Euklid, Ohio, was sentenced to 24 months in prison. 

Yvonne Teresa Troncoza-Martinez, 40, of Tucson, Ariz., was sentenced to probation. 

Kathy Ann Troncoza-Valenzuela, 43, of Tucson, Ariz., was sentenced to probation. 

Manuel Alejandro Alvarez, 39, of Tucson, Ariz., was sentenced to time served. 

Juan Fonseca-Cantallops, 49, of Buckeye, Ariz., was sentenced to probation. 

Angelica C. Mendivil, 41, of Tucson, Ariz., was sentenced to probation. 

The investigation was conducted by the U.S. Drug Enforcement Administration and the Internal Revenue Service, and included the participation of the U.S. Postal Inspection Service, U.S. Marshal’s Service, U.S. Immigration and Customs Enforcement, U.S. Border Patrol, the Federal Bureau of Investigation, U.S. Alcohol, Tobacco, Firearms & Explosives, and the Arizona Department of Public Safety.  Local police agencies that assisted include the Mesa, Phoenix, Glendale, Tempe and Tucson Police Departments; the Pinal County Sheriff’s Office and the Arizona Attorney General’s Office. The investigation was also made possible by the assistance of the Las Vegas Metropolitan Police Department, Imperial Police Department, U.S. Attorney’s Offices in Arizona, Nevada and Ohio and various DEA offices throughout the U.S. and in Mexico. The National Drug Intelligence Center (NDIC) provided extensive analysis of documents seized during the investigation.

The prosecution was handled by Karen S. McDonald and Brian Larson, Assistant U.S. Attorneys, District of Arizona, Phoenix.

CASE NUMBER:           CR-10-1126-PHX-GMS
RELEASE NUMBER:   2014-032_ Eshun

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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PHOENIX – On June 9, 2014, Raphael James Kaska, 54, of Peach Springs, Ariz., a member of the Yavapai-Apache Nation, was sentenced by U.S. District Judge G. Murray Snow to 235 months in prison, followed by a term of lifetime supervised release.  Kaska pleaded guilty to aggravated sexual abuse. 

According to the plea agreement, in February 2012, Kaska used force to engage in a sexual act with the minor victim.  The offense happened on the Hualapai Nation Indian Reservation.    

The investigation in this case was conducted by the Federal Bureau of Investigation and the Hualapai Nation Police Department.  The prosecution was handled by Christina J. Reid-Moore and Sharon K. Sexton, Assistant U.S. Attorneys, District of Arizona, Phoenix.

CASE NUMBER:           CR-13-8141-PCT-GMS 
RELEASE NUMBER:   2014-034_Kaska

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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PHOENIX – On June 9, 2014, Roberto Aguilar-Ramirez, 52, of Parker, Ariz., was sentenced by U.S. District Judge Roslyn O. Silver to 168 months in prison, followed by a term of lifetime supervised release.  Aguilar-Ramirez pleaded guilty to abusive sexual contact with a minor. 

According to the plea agreement, on or between September 2007 and November 2009, Aguilar-Ramirez, a foster father, had engaged in sexual contact with the minor victim, who was a member of the Colorado River Indian Tribes.

The investigation in this case was conducted by the Federal Bureau of Investigation and the Colorado River Indian Tribes Police Department.  The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.

CASE NUMBER:           CR-12-0922-PHX-ROS 
RELEASE NUMBER:   2012-033_ Aguilar-Ramirez

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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TUCSON, Ariz. – On June 2, 2014, Keith Deshawn Anderson, 39, of Las Vegas, Nev. was sentenced by Chief U.S. District Judge Raner C. Collins to 180 months imprisonment followed by five years of supervised release after having been found guilty by a federal jury on Nov. 12, 2013, of four counts of transportation of a minor with intent to engage in criminal sexual activity

            The evidence at trial showed that the defendant transported a female minor from Arizona to Nevada multiple times for several months during 2011 and 2012 with the intent that the minor engage in criminal sexual activity with the defendant. 

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

The investigation in this case was conducted by the Federal Bureau of Investigation and the Sierra Vista Police Department. The prosecution was handled by Nicole Savel and Karen Rolley, Assistant U.S. Attorneys, District of Arizona, Tucson.

CASE NUMBER:                  CR-12-0914-TUC-RCC (CRP)
RELEASE NUMBER:           2014-031_Anderson

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az  

PHOENIX – Today, following Attorney General Holder’s announcement of significant policy shift concerning electronic recording of statements, United States Attorney John S. Leonardo offers the following statement:

“In announcing a new Department of Justice policy today that statements made by individuals in federal custody between arrest and their initial court appearance will be electronically recorded, the Attorney General has taken a positive step in bringing added transparency to federal law enforcement. Such recordings will serve to ensure accountability and promote public confidence in federal law enforcement. Federal agents and prosecutors in Arizona and throughout the country are committed to due process and the rigorous, evenhanded enforcement of the law. This new policy reaffirms this commitment and strengthens the fairness that all Americans expect and deserve in their criminal justice system.”

RELEASE NUMBER:   2014-030_USA_Statement-Electronic_Recordings

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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PHOENIX - The National Center for Missing and Exploited Children (NCMEC) created the Take 25 campaign to encourage families to take 25 minutes to talk to their children about safety and abduction prevention. NCMEC estimates that 800,000 children are reported missing in America every year, which is more than 2,000 children each day. Fortunately, most of these children are quickly located.

NCMEC has found that in 51% of attempted abduction cases, children escaped would-be abductors through their own actions. 32% of the children actively resisted (yelling, kicking, pulling away, running away, or attracting attention).  Even more inspiring is that in 17% of these cases, a parent or another individual intervened to rescue the child. Teaching and reassuring children about safety - without scaring them - requires a delicate balance. Take 25 provides parents tools and age-appropriate suggestions for approaching the topic of safety with their children.

            “The annual Take 25 national child safety campaign is particularly important this time of year, when children begin their summer breaks from school and have more time on their hands” said U.S. Attorney John S. Leonardo. “Especially in light of recent events arising from abductions, we encourage parents to take time and pledge to talk with their children about safety and abduction prevention.  We hope that the tools and information provided at this year’s Take 25 events will assist families in keeping their children safe.”

Since 1983, May 25th has been observed as National Missing Children’s Day. In conjunction with observance of this year’s National Missing Children’s Day, the United States Attorney’s Office in partnership with our city, state, and federal agencies will offer a Take 25 child safety event. This year’s event will be held on Friday, May 30, 2014, at the Desert Ridge Marketplace in North Phoenix from 11:00 a.m. to 2:00 p.m.   Digital child identification kits will be provided free of charge. This event is designed to help parents and others teach children to be alert to potential threats and provide steps that children can take to stay safe. 

For more information on NCMEC, visit www.missingkids.com. For more information about the Take 25 campaign, visit www.Take25.org. For more information on Project Safe Childhood, visit www.projectsafechildhood.gov.  

RELEASE NUMBER:           2014-29_Take_25_Phoenix

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az

PHOENIX – On May 7, 2014, Rony Abimael Gonzalez-Herrera, 37, from Guatemala, was sentenced by U.S. District Judge John A. Jarvey to 57 months in federal custody.  Gonzalez had pled guilty on Jan. 9, 2014, to conspiracy to transport and harbor illegal aliens. 

Beginning in 2012 and continuing through April of 2013, Gonzalez, the leader of the alien smuggling organization based in Little Rock, Ark., and his associates, were responsible for illegally transporting and harboring at least 827 illegal aliens into the United States from Mexico.  Gonzalez utilized multiple stash houses in the Phoenix area, including one discovered in January 2013 with over 40 illegal aliens.  The organization also coordinated the illegal transportation of undocumented persons throughout the United States by significantly overloading vehicles.

On May 13, 2013, Homeland Security Investigations (HSI) agents in Little Rock, Ark., arrested Gonzalez and seized four cell phones which Gonzalez had utilized to contact his alien smugglers and illegal aliens’ families to make payments on behalf of their relatives.

Families of the illegal aliens reported that Gonzalez directed them to deposit the smuggling fees into specific bank accounts.  After one illegal alien was apprehended by law enforcement, his family members contacted Gonzalez to request he return the smuggling fees.  Gonzalez told the family that “your family will pay if you keep asking for the money.”

The investigation in this case was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Phoenix and Little Rock.  The prosecution was handled by Kristen Brook, Assistant U.S. Attorney, District of Arizona, Phoenix

CASE NUMBER:           CR13-1141-PHX-NVW
RELEASE NUMBER:   2014-028_Gonzalez-Herrera

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

PHOENIX – On May 5, 2014, Valance Ray Smith, Sr., 46, of Peach Springs, Ariz. was sentenced by U.S. District Judge G. Murray Snow to a total of 165 months in prison on two counts of assault with a dangerous weapon and one count of assault resulting in serious bodily injury. Smith was found guilty by a federal jury on Jan. 9, 2014.  
            The evidence at trial indicated that Smith assaulted the victim on two separate occasions;onJuly 8, 2011 Smith stabbed the victim in a domestic violence situation causing her to sustain injuries, and on Sept. 29, 2012, Smith beat the victim with a metal pipe causing her to suffer serious bodily injuries.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Hualapai Nation Police Department.  The prosecution was handled by Christina J. Reid-Moore and Dimitra H. Sampson, Assistant U.S. Attorneys, District of Arizona, Phoenix.

CASE NUMBER:           CR-2013-8043-PCT-GMS
RELEASE NUMBER:   2014-027_Smith

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

TUCSON, Ariz. – On April 28, 2014, Marcos Soto-Mendoza, 43, of Tonalisco, Nayarit, Mexico, was sentenced to 15 years in federal prison followed by three years of supervised release.  The sentence was imposed by District Court Judge Cindy K. Jorgenson. On April 12, 2013, Soto-Mendoza was found guilty by a jury of five counts of bringing in an illegal alien for profit.

On June 29, 2011, Border Patrol agents responded to a citizen’s call in regard to a distressed suspected illegal alien in the Village of Pisinemo, on the Tohono O’odham Nation.  Border Patrol agents made contact with Abad Uriostegui-Uriostegui who stated that he had illegally entered the United States with a group of five other individuals who were in distress out in the desert. Agents proceeded to the location in the desert where Uriostegui-Uriostegui had last seen his companions and located five additional individuals.  Three living persons, the defendant Marcos Soto-Mendoza, Juan Garcia-Delgado, and Marcos Mojica-Lagunas, were found in a highly distressed and dehydrated state.  Two other members of the group already had died from exposure to the extreme summer conditions.

Soto-Mendoza, Garcia-Delgado, and Mojica-Lagunas were all determined to be citizens of Mexico who had illegally entered the United States. Upon questioning, Soto-Mendoza was identified as their guide, to whom they agreed to pay between $2,200 and $2,500 per person.

On several occasions after illegally entering the United States, Soto-Mendoza informed the group that they would be resupplied with water at a ranch.  However, he never led them to a water source and had them continue to walk through the desert.  One of the deceased asked Soto-Mendoza to use his cell phone to call for help as the group had little to no water and were suffering from dehydration, but he told her no. At the direction of Soto-Mendoza, the group continued to walk until either (1) they no longer could or (2) they broke off on their own to look for water and/or help. 
The investigation in this case was conducted by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) Sells, U.S. Border Patrol, and the Tohono O'odham Police Department.  The prosecution was handled by David Savel and Arturo Aguilar, District of Arizona, Tucson.

CASE NUMBER:           CR-11-2628                    
RELEASE NUMBER:   2014-026_Soto-Mendoza

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

PHOENIX – On April 28, 2014, David Wayne Old Mouse, 24, of Supai, Ariz., of the Havasupai Indian Reservation, was sentenced by U.S. District Judge G. Murray Snow to 96 months in prison followed by five months of supervised release. Old Mouse previously pleaded guilty to one count of aggravated sexual abuse. 

            The investigation in this case was conducted by the Federal Bureau of Investigation.  The prosecution was handled by Christine Keller, Assistant U.S. Attorney, District of Arizona, Phoenix.

CASE NUMBER:                  CR-13-08227-PCT-DGC-1
RELEASE NUMBER:           2014-025_Old_Mouse

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az

TUCSON, Ariz. – On April 23, 2014, Lance Robert Fries, 43, of Tucson, was sentenced by U.S. District Judge Jennifer G. Zipps to 297 months imprisonment as a result of his guilty plea on Oct. 2, 2013, to two counts of production of child pornographyFries’ term of imprisonment will be followed by lifetime supervised release, with stringent sex offender conditions, including the condition that he register as a sex offender.

                  Fries was indicted on Jan. 30, 2013, by a federal Grand Jury after an investigation revealed that Fries sexually abused a toddler multiple times, and allowed the abuse to be watched by others via webcam over the internet.  Videos memorializing the abuse were discovered in two separate child exploitation investigations involving other defendants in Oregon and Florida.

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

The investigation in this case was conducted by U.S. Immigration Enforcement (ICE), Homeland Security Investigations, Tucson.  The prosecution was handled by Carmen F. Corbin and Carin C. Duryee, District of Arizona, Tucson.

CASE NUMBER:           CR-13-0146-TUC-JGZ  
RELEASE NUMBER:   2014-024_Fries
# # #

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

PHOENIX– On April 8, 2014, Ronald Josh Lupe, 27, of Whiteriver, Ariz. was sentenced by U.S. District Judge Paul G. Rosenblatt to 14 years imprisonment. Lupe pleaded guilty on Dec. 9, 2013 to two counts of assault resulting in serious bodily injury

During Lupe’s approximately two year relationship with his girlfriend, he physically abused her on multiple occasions.  The victim was hospitalized a number of times as a result of Lupe’s abuse, resulting in her sustaining serious bodily injury.

The investigation in this case was conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs. The prosecution was handled by Dimitra H. Sampson, Assistant U.S. Attorney, District of Arizona, Phoenix.

CASE NUMBER:           CR-2013-08026-PCT-PGR           
RELEASE NUMBER:   2013-023_Lupe

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

PHOENIX – On April 2, 2014, Nicholas Pascal Zizzo, 27, of Phoenix was sentenced by U.S. District Judge David G. Campbell to 54 months imprisonment and ordered to forfeit approximately $1.3 million dollars and a business located at 1540 West Hatcher Road, Phoenix, after Zizzo pled guilty to conspiracy to manufacture and distribute controlled substance analogues. 

            A controlled substance analogue is a substance that is specifically intended for human consumption and is also substantially similar in chemical structure, pharmacological effect, or intended effect to drugs already scheduled under the Controlled Substances Act, like cocaine, methamphetamine, or methylenedioxypyrovalerone (MDPV). 

            According to Court documents, records, and testimony, Zizzo owned Consortium Distribution in Phoenix., from early 2011 through July of 2012.  Consortium manufactured designer or synthetic drugs, called “Eight Ballz Bath Salts” and “Eight Ballz Ultra Premium Glass Cleaner.”  These designer drugs had powerful cocaine and methamphetamine-like effects, were manufactured with raw chemicals imported from China and domestically, and were specifically designed to get people high, but were nevertheless intentionally and fictitiously mislabeled as innocuous household products in an attempt to circumvent federal consumer and drug laws.  These products were then distributed and sold for great profit to “smoke shops,” independent gas stations, and convenient stores across the United States.  Individual users would often purchase a ½ gram of these designer drugs for up to $60.00 and would snort, smoke, or inject these drugs in order to get a cocaine or methamphetamine-like high.

            Zizzo was part of a larger nine defendant investigation and case that included co-defendant Michael Rocky Lane, who was found guilty by a jury after a 13 day trial in July 2013 of conspiracy to manufacture and distribute controlled substance analogues.  Lane was previously sentenced to 15 years imprisonment by U.S. District Judge David G. Campbell and ordered to forfeit money and other items including vehicles and real estate.  Lane was formerly an employee of Zizzo’s at Consortium Distribution before Lane left to open Dynamic Distribution in Tempe, Ariz., to directly compete with Consortium in the fall of 2011. 

            Additionally, on March 24, 2014, Andrew Scott Freeman, 27, of Minneapolis, Minn., was sentenced by U.S. District Judge David G. Campbell to 36 months imprisonment, after Freeman pled guilty to conspiracy to manufacture and distribute controlled substance analogues.  According to Court documents, records, and testimony, Freeman worked as a salesman for Lane at Dynamic between April and July of 2012 and sold Dynamic’s designer drug products to stores and individuals across the United States.  Prior to Freeman’s employment at Dynamic, Freeman owned Too Cool Glass Works in Minnesota, which manufactured glass smoking pipes, and also sold a powerful designer drug called “Bliss” bath salts.  Freeman was captured by Chris Hansen in a May 2012 Dateline NBC expose on the dangers of “bath salts.”  Freeman subsequently sold off his business to a chemical supplier in Minnesota before coming to Arizona and continued to work in the “bath salts” industry with Lane. 

The operations at Consortium and Dynamic ceased on July 25, 2012, when the U.S. Drug Enforcement Administration executed a search warrant at those locations and arrested Zizzo, Lane, Freeman, and other designer drug salesmen and employees as part of Operation Log Jam.  Operation Log Jam was a U.S. Department of Justice coordinated investigation of illicit designer or synthetic drug manufacturers and distributors across the United States.

            The investigation in this case was conducted by the U.S. Drug Enforcement Administration and was assisted by the Arizona Department of Public Safety, the Phoenix Police Department, and the Buckeye Police Department. The prosecution was handled by Don Pashayan, Theresa Rassas, Monica Edelstein, and Mark Wenker, Assistant U.S. Attorneys, District of Arizona, Phoenix.

CASE NUMBER:                  CR-12-1419-PHX-DGC (LOA)
RELEASE NUMBER:           2014-021_Zizzo&Freeman

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az

PHOENIX – On April 7, 2014, Daniel David Rigmaiden, 34, formerly of Santa Clara, Calif., was sentenced by U.S. District Judge David G. Campbellto 68 months in custody (time served) and ordered to perform 100 hours of community service during a three-year term of supervised release.  Restitution of over $395,000 was satisfied by the forfeiture and abandonment of Rigmaiden’s seized assets totaling over $470,000.  Immediately prior to sentencing, Rigmaiden pleaded guilty to conspiracy, mail fraud and two counts of wire fraud.

            “This sentence and asset forfeiture reflects the seriousness of Rigmaiden’s scheme to  defraud the Internal Revenue Service,” stated U.S. Attorney John S. Leonardo.  “The defendant tried to avoid apprehension through a sophisticated web of false identities, encryption, and  anonymizing programs.  Only through sustained collaboration and the coordination of the joint efforts of IRS-CI, FBI, USPIS and this office was Rigmaiden located and identified.  The U.S. Attorney’s Office will continue to work with our law enforcement partners to identify and prosecute those who assume the identity of others in order to defraud the United States.”

            “Tax-related scams are becoming more widespread and increasingly complicated, which is demonstrated by this case.  IRS Criminal Investigation, along with our law enforcement partners, worked tenaciously to track down a sophisticated, tech savvy criminal, Daniel Rigmaiden, who had complete disregard and disrespect for the damage he inflicted on innocent victims and the American taxpayers,” said Dawn Mertz, Special Agent in Charge of the Phoenix Field Office of Internal Revenue Service, Criminal Investigation.

“Individuals who participate in income tax fraud and identity theft of this magnitude should fully expect the FBI and its law enforcement partners to utilize all available resources to ensure they are brought to justice” said Douglas G. Price, Special Agent in Charge of the Phoenix Field Division of the Federal Bureau of Investigation.

“The successful prosecution in this complex case shows the commitment of the Postal Inspection Service to protect the public from criminal activity,” said Pete Zegarac, Inspector in Charge for the Phoenix Division of the Postal Inspection Service. “The Postal Inspection Service is proud to have partnered with the Department of Justice and fellow law enforcement agencies in this investigation.”

The investigation of Rigmaiden commenced in the fall of 2007 after the IRS began to detect a significant number of possibly related fraudulent tax returns.  At that time, Rigmaiden’s identity and involvement were unknown.  As a result, the investigation team referred to him as “The Hacker.” An undercover investigation ultimately led to his arrest and execution of search warrants in Northern California in August 2008.  The searches revealed significant evidence related to a sophisticated scheme to obtain $5.2 million in tax refunds in the names of innocent third parties and deceased individuals. Rigmaiden ultimately caused the payment of approximately $1,904,321 in fraudulent refunds into accounts and debit cards controlled by him and his co-conspirators, as well as accounts controlled by undercover agents.  Up until Rigmaiden’s arrest and identification through fingerprint analysis, his true identity was unknown to the investigation team.  Through the team’s efforts, it was determined Rigmaiden had anonymously operated through the use of third-party computers throughout the United States, was involved in acquiring identity information of deceased and living individuals, including their social security numbers, and was using that information to conduct a complex electronic bulk tax filing scheme.

The investigation in this case was conducted by Internal Revenue Service – Criminal Investigation, Federal Bureau of Investigation, and U.S. Postal Inspection Service, with assistance from the Santa Clara, California, Police Department, Secret Service and Bureau of Alcohol, Tobacco, Firearms and Explosives.  The prosecution was handled by Frederick A. Battista, Peter S. Sexton, and James R. Knapp, Assistant U.S. Attorneys, District of Arizona, Phoenix.

CASE NUMBER:           CR-08-810-001-PHX-DGC (LOA)
RELEASE NUMBER:   2014-022_Rigmaiden

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

PHOENIX. – On March 31, 2014, Henry Yazzie, 43, of Tuba City, Ariz., on the Navajo Nation, was sentenced by U.S. District Judge David G. Campbell to 20 years in prison followed by lifetime supervised release. Yazzie previously pleaded guilty to one count of abusive sexual contact of a minor. 

            The investigation in this case was conducted by the Federal Bureau of Investigation.  The prosecution was handled by Christine Keller, Assistant U.S. Attorney, District of Arizona, Phoenix.

CASE NUMBER:                  CR-13-08197-PCT-DGC
RELEASE NUMBER:           2014-020_Yazzie

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az

PHOENIX– On March 31, 2014, Billy C. Young, 61, of Kayenta, Arizona, on the Navajo Nation, was sentenced by U.S. District Judge Stephen M. McNamee to life in prison. Young was found guilty by a federal jury on Jan. 15, 2014, of two counts of aggravated sexual abuse of a minor, one count of sexual abuse, and one count of sexual abuse of a minor. 

U.S. Attorney John S. Leonardo stated, “Those who sexually abuse children rob them of their childhood and their innocence.  This sentence ensures that Young will never again have the opportunity to harm another child.” 

            The evidence at trial showed that Young molested three different girls, all under the age of 15 years old, over a 25 year period.   

            The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Christine Keller and Sharon Sexton, Assistant U.S. Attorneys, District of Arizona, Phoenix.

CASE NUMBER:                  CR-13-08084-PCT-SMM
RELEASE NUMBER:           2014-019_Young

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az

            PHOENIX –Joel Leon Thomas, Jr., 23, of El Mirage, Ariz., was found guilty of three counts of conspiracy to commit bank robbery, two counts of aid and abet armed bank robbery, one count of aid and abet bank robbery, and two counts of using a firearm in furtherance of a crime of violence by a federal jury in Phoenix. The case was tried before U.S. District Judge David G. Campbell from March 12-24, 2014.  Thomas is being held in custody after trial. Sentencing is set before Judge Campbell on July 7, 2014.

            The evidence at trial showed that Thomas, a bank teller at the time of the robberies, provided inside information to his co-conspirators about bank security measures and bank layouts to craft plans to rob three banks in January – February 2012.  The conspiracy targeted banks Thomas worked at in the Surprise, Sun City, and Peoria areas.  Thomas orchestrated two bank robberies at gunpoint, and in one of those robberies, he posed as a victim bank teller as he loaded $246,000 from the vault into a duffel bag for the armed gunman, his friend.  In a third bank robbery, the conspiracy recruited two homeless men to commit a “note job” where they demanded money from a victim bank teller inside a busy grocery store and turned over the money to Thomas and other conspirators.  After obtaining search warrants, police seized approximately $150,000 in stolen bank money, firearms, ammunition, bank robbery demand notes, and a hand-drawn diagram of a bank from the residences and cars of Thomas and others charged in the conspiracy.  Five others were charged and pleaded guilty in the conspiracy. 

The jury specifically found that in two of the bank robberies, a co-conspirator moved a victim bank employee against his consent, and that the co-conspirator brandished guns during the robbery.    

            A conviction for conspiracy to commit bank robbery carries a maximum penalty of five years, a $250,000 fine or both.  A conviction for aid and abet armed bank robbery carries a minimum penalty of 10 years and a maximum penalty of 25 years, a $250,000 fine, or both.  A conviction for aid and abet bank robbery carries a maximum penalty of 20 years, a $250,000 fine, or both.  A first conviction for use of a firearm in furtherance of a crime of violence contains a minimum penalty of seven years in prison to a maximum penalty of life in prison, and a second conviction carries a minimum penalty of 25 years to a maximum penalty of life in prison, and both must be served consecutively to any prison term Thomas receives for the other crimes.    

            The investigation in this case was conducted by the Federal Bureau of Investigation and the FBI’s Bank Robbery Task Force, the Peoria Police Department, the Surprise Police Department, and the Tempe Police Department.  The prosecution was handled by Jennifer E. Green and Tracy Van Buskirk, Assistant U.S. Attorneys, District of Arizona, Phoenix.

CASE NUMBER:                  CR-12-00523-002-PHX-DGC
RELEASE NUMBER:           2014-018_Thomas

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az

PHOENIX– On March 17, 2014, Joel Mazariegos-Soto, 29, and Walfre David Perez-Jovel, 34, both from Guatemala, were sentenced by U.S. District Judge Susan R. Bolton after they pleaded guilty on Dec. 17, 2013, to conspiracy to commit money laundering and conspiracy to transport and harbor illegal aliens.  Mazariegos-Soto was sentenced to 60 months in federal custody and Perez-Jovel was sentenced to 46 months in federal custody for their roles in laundering the proceeds of alien smuggling and harboring and transporting illegal aliens.

              Joel Mazariegos-Soto, a leader of this alien smuggling organization, operated the illegal business from the assumed anonymity of Fonda, N.Y., where he also worked on a dairy farm.  During just four months of this investigation, Mazariegos-Soto laundered more than $70,000.  Mazariegos-Soto laundered the money by moving it through an illegal “funnel” account, requiring families of illegal aliens here in the United States to make deposits into a bank account, which would be accessed by his alien smugglers working in the Phoenix area.  Mazariegos-Soto and his associates utilized multiple stash houses in the Phoenix area, including one discovered by agents with Homeland Security Investigations (HSI) in October 2012 containing over 27 illegal aliens and another found in January 2013 with over 40 illegal aliens.

On April 18, 2013, HSI Albany, N.Y. agents arrested Mazariegos-Soto near his residence in Fonda, N.Y.

Walfre David Perez-Jovel operated a stash house here in Phoenix of behalf of this illegal alien smuggling organization.  Under surveillance from HSI, agents witnessed Perez-Jovel launder more than $16,000 in alien smuggling proceeds.  Perez-Jovel not only harbored illegal aliens but also coordinated the illegal transportation of undocumented persons throughout the United States in a manner that was reckless and dangerous, by overloading vehicles and loading people into the luggage compartments of vans, to be moved across the United States.

On June 11, 2013, HSI West Palm Beach, Fla. agents arrested Perez-Jovel near Lake Worth, Fla. after he fled from Mesa, Ariz. in January 2013 following an HSI interdiction of over 40 illegal aliens from the stash house he operated in Mesa.

The investigation in this case was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Phoenix, West Palm Beach, and HSI Albany.  The prosecution was handled by Kristen Brook, Assistant U.S. Attorney, District of Arizona, Phoenix.

CASE NUMBER:           CR13-898-PHX-SRB and CR13-955-PHX-SRB
RELEASE NUMBER:   2014-017_Mazaregios-Soto&Perez-Jovel

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

PHOENIX – On March 17, 2014, Hanson Amos Jose, 31, of Laveen, Ariz, a member of the Gila River Indian Community, was sentenced by U.S. District Judge Linda Readeto 46 months in prison. Jose pleaded guilty on Oct. 25, 2013, to assault resulting in serious bodily injury.

On July 8, 2013, Gila River police officers were investigating a vehicle when they were approached by Jose.  The police officers determined that Jose had an active tribal warrant for his arrest and attempted to arrest him.  Jose forcefully resisted arrest by punching, kicking, and pushing the officers.  During the assault, Jose tripped one of the police officers, fell on top of the officer, and broke the police officer’s ankle. 

The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.

CASE NUMBER:           CR-13-1172-PHX-NVW
RELEASE NUMBER:   2014-016_Jose

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

PHOENIX – On March 5, 2014, Darvon Hibbler, 26, of Phoenix, was sentenced by U.S. District Judge James Carr to 24 months in prison. Hibbler pled guilty on Dec. 17, 2013, to conspiring to commit a robbery and theft.  He was the final defendant to be sentenced in this attempted robbery of the Vee Quiva Casino on the Gila River Indian Community. 

On May 31, 2013, Hibbler and Corey Wright, 42, of Phoenix, walked into the Vee Quiva Casino with the intent to steal money.  Hibbler went up to the teller at the cashier’s cage and demanded money while Wright stood back as the lookout.  Hibbler reached into his waistband as though he had a gun.  Another teller saw what was happening and called for security.  Hibbler and Wright left the casino without any money. Katrina Serna, 31, and Joseph Shope, 35, both of Laveen, Ariz., knew about the plan to rob the casino, failed to notify law enforcement, and helped Hibbler and Wright escape the casino after the robbery. On Feb. 14, 2014, Wright was sentenced to 14 months in prison for his part in the attempted robbery.  Serna, on March 4, 2014, and Shope, on March 5, 2014, were each sentenced by U.S. District Judge James Carr to five years probation and four months home confinement for failing to report the conspiracy.

            The investigation in this case was conducted by the Federal Bureau of Investigation and the Gila River Police Department. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.

CASE NUMBER:           CR-13-829-PHX-NVW 
RELEASE NUMBER:   2014-015_Hibbler

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

TUCSON, Ariz. – On March 5, 2014, Isabel Perez-Arellanez, 43, of Guasave, Sinaloa, Mexico, was sentenced by U.S. District Chief Judge Raner C. Collinsto 70 years imprisonment. Perez-Arellanez was found guilty by a federal jury on Nov. 21, 2013 of one count of conspiracy to commit hostage taking, three counts of hostage taking, four counts of possession of a firearm during and in relation to a crime of violence, and one count of illegal alien in possession of a firearm. 

This prosecution and sentence demonstrate that armed defendants who prey on vulnerable border crossers will be apprehended, and will face severe consequences for their actions,” said John S. Leonardo, U.S. Attorney. 

“This man thought he could use the rugged mountains of Southern Arizona as a place to conduct violent crimes out of reach of the rule of law. Thanks to the dedicated work of the U.S. Border Patrol agents who arrested him and the HSI special agents who investigated this case, he will now spend decades in a federal prison,” said Matt Allen, special agent in charge of ICE Homeland Security Investigations (HSI) Arizona. “Finding and bringing these modern-day bandits to justice is a top priority for HSI and our law enforcement partners.”

In March of 2012, Perez-Arellanez and two co-defendants encountered two Mexican nationals and one Guatemalan national who had become lost and separated from their smuggling groups in the remote Tumacacori Mountains, approximately 50 miles south of Tucson.  The defendant held the three victims at gun point for two to three days, forcing the victims to contact family members living in the United States to extort money from them.  Once the victims’ family members wired between $900 and $1500 to the defendants’ Western Union accounts in Mexico, the defendant abandoned the victims in the desert without food and water.  Eventually, the three victims made their way to Interstate 19 and reported the crime to Border Patrol who apprehended the defendants as they traveled southbound towards Mexico.  At the scene of the apprehension, agents found a loaded 9mm pistol and personal effects belonging to the victims. 

The investigation in this case was conducted by U.S. Immigration and Customs Enforcement's Homeland Security Investigations (HSI) and the U.S. Border Patrol, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution was handled by Rui Wang and Matthew C. Cassell, Assistant U.S. Attorneys, District of Arizona, Tucson.

CASE NUMBER:           CR-12-1025-TUC-RCC
RELEASE NUMBER:   2014-014_ Perez-Arellanez

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

PHOENIX – On March 4, 2014, Aaron Lee Escarsega, 19, of Laveen, Ariz., a member of the Tohono O’odham Nation, was sentenced by U.S. District Judge James Carrto 120 months in prison, followed by a lifetime supervised release. Escarsega pled guilty on Dec. 18, 2013, to abusive sexual contact of a minor

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

The investigation in this case was conducted by the Federal Bureau of Investigation and the Gila River Police Department. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.

CASE NUMBER:           CR-13-1229-PHX-SRB 
RELEASE NUMBER:   2014-013_Escarsega

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

PHOENIX – On Feb. 24, 2014, Ginger Louise Scott Holmes, 44, of Parker, Ariz., an enrolled member of the Colorado River Indian Tribes, was sentenced by U.S. District Judge Susan R. Bolton to 60 months in prison followed by three years of supervised release resulting from her plea of guilty to assault resulting in serious bodily injury.

On March 16, 2013, Holmes was recklessly operating a motor vehicle at a high rate of speed, when she struck the minor victim who sustained serious bodily injuries.

The investigation in this case was conducted by the Federal Bureau of Investigation and the Colorado River Indian Tribes Police Department.  The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.

CASE NUMBER:           CR-0944-PHX-SRB       
RELEASE NUMBER:   2014-012_Holmes

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

PHOENIX – On Feb. 18, 2014, Ty Colin Bia, 22, of Many Farms, Ariz., a member of the Navajo Nation, was sentenced by U.S. District Court Judge G. Murray Snow to 204 months in prison, followed by a lifetime term of supervised release.  Bia is also required to register as a sex offender in compliance with federal, state and local laws. 

In January 2013, the Federal Bureau of Investigation received a report that a Navajo man had been texting inappropriate messages to a minor.  Through further investigation, agents determined that Bia, a staff member at the Boys and Girls Club, had sexually assaulted a juvenile female while she was under his care on the Navajo Nation Indian Reservation.  Bia pled guilty on Nov. 13, 2013, to abusive sexual contact. 

The investigation in this case was conducted by the Federal Bureau of Investigation, Gallup Resident Office. The prosecution was handled by Melissa B. Karlen, Assistant U.S. Attorney, District of Arizona, Phoenix.

CASE NUMBER:           CR-13-8085-PCT-GMS 
RELEASE NUMBER:   2014-011_Bia

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

TUCSON, Ariz – On Feb. 7, 2014, Hernan Ramirez-Ortega, 39, of Honduras was sentenced by U.S. District Judge Cindy K. Jorgensonto 27 years in prison as the result of his guilty pleas to one count each of aggravated sexual abuse and abusive sexual contact. Ramirez-Ortega admitted sexually assaulting an 11-year-old Tohono O’odham girl in March of 2010 while he was living on the Tohono O’odham Nation, and sexually abusing another adult female who is a member of, and was living on, the Gila River Indian Reservation in August of 2010.

                 “The United States takes very seriously the victimization of Native American women.  The nearly three year effort to bring Mr. Ramirez-Ortega to justice is a reflection of that resolute commitment,” said U.S. Attorney John S. Leonardo.

After Ramirez-Ortega completes his 27 year prison sentence, he will be immediately deported to Honduras.  He will also be placed on 20 years of federal supervision, which includes a prohibition against his return to the United States.

The investigation in this case was conducted by the Tohono O’Odham Police Department and the Federal Bureau of Investigation.  The prosecution was handled by Micah Schmit, Assistant U.S. Attorney, District of Arizona, Tucson.

CASE NUMBER:           CR-11-2307-TUC-CKJ; CR-12-1295-TUC-CKJ
RELEASE NUMBER:   2014-010_Ramirez-Ortega

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

PASCUA YAQUI TRIBE OF ARIZONA TO BE ONE OF THREE TRIBES TO
IMPLEMENT SPECIAL DOMESTIC VIOLENCE CRIMINAL JURISDICTION UNDER VAWA 2013

For the First Time in More Than Three Decades

WASHINGTON – The Pascua Yaqui Tribe of Arizona will be one of three American Indian tribes, joining the Umatilla Tribe of Oregon, and the Tulalip Tribe of Washington, to be the first in the nation to exercise special criminal jurisdiction over certain crimes of domestic and dating violence, regardless of the defendant’s Indian or non-Indian status, under a pilot project authorized by the Violence Against Women Reauthorization Act of 2013 (VAWA 2013).

“This is just the latest step forward in this administration’s historic efforts to address the public safety crisis in Indian country.  Every day, we’re working hard to strengthen partnerships with tribal leaders and confront shared challenges – particularly when it comes to protecting Indian women and girls from the shocking and unacceptably high rates of violence they too often face,” said Attorney General Eric Holder.  “With the important new tools provided by the Violence Against Women Reauthorization Act of 2013, these critical pilot projects will facilitate the first tribal prosecutions of non-Indian perpetrators in recent times.  This represents a significant victory for public safety and the rule of law, and a momentous step forward for tribal sovereignty and self-determination.”

“The VAWA Pilot Project provides the Pascua Yaqui Tribe the latitude to exercise a wider jurisdictional range to prosecute those who commit domestic violence crimes on the Pascua Yaqui Reservation,” stated U.S. Attorney John S. Leonardo.  “The Pascua Yaqui now have the legal ability to prosecute such cases in tribal court without recourse to the federal courts thus affording the tribe more local control in its efforts to protect victims of domestic violence on its reservation. The Pascua Yaqui Tribe was one of only three tribes in the country chosen for this national pilot project, and I congratulate the Tribe on its implementation of this historic legislation.”

“Making the Pascua Yaqui Reservation safe and secure has been very important to the Pascua Yaqui Tribal Council. The Tribal Council has made stopping violence against Native American women a top priority issue. Our judicial system, like all other judicial systems, will now have the opportunity to address offenders for wrongs committed against our most vulnerable community members,” says Peter Yucupicio, Tribal Chairman.  “We no longer have to simply stand by and watch our Native women be victimized with no recourse.  I’m here to put the community on notice, perpetrators will be held accountable in the tribe’s own justice system,” adds Raymond Buelna, Councilmember and Chairman of the tribe’s Public Safety Committee.

Although the provisions authorizing the special jurisdiction take effect generally in March 2015, the law also gives the Attorney General discretion to grant a tribe’s request to exercise the jurisdiction earlier, through a voluntary pilot project.  The authority to approve such requests has been delegated to Associate Attorney General Tony West.  Associate Attorney General West today congratulated tribal leaders of the Pascua Yaqui Tribe of Arizona, the Umatilla Tribe of Oregon, and the Tulalip Tribe of Washington on this historic achievement in letters to the three tribes.

“The old jurisdictional scheme failed to adequately protect the public – particularly native women – with too many crimes going unprosecuted and unpunished amidst escalating violence in Indian Country,” stated Associate Attorney General West.  “Our actions today mark an historic turning point.  We believe that by certifying certain tribes to exercise jurisdiction over these crimes, we will help decrease domestic and dating violence in Indian Country, strengthen tribal capacity to administer justice and control crime, and ensure that perpetrators of sexual violence are held accountable for their criminal behavior.”

Since the Supreme Court’s 1978 opinion in Oliphant v. Suquamish Indian Tribe, tribes have been prohibited from exercising criminal jurisdiction over non-Indian defendants.  This included domestic violence and dating violence committed by non-Indian abusers against their Indian spouses, intimate partners and dating partners.  Even a violent crime committed by a non-Indian husband against his Indian wife, in the presence of her Indian children, in their home on the Indian reservation, could not be prosecuted by the tribe.  In granting the pilot-project requests of the Pascua Yaqui, Umatilla, and Tulalip tribes today, the United States is recognizing and affirming the tribes’ inherent power to exercise “special domestic violence criminal jurisdiction” (SDVCJ) over all persons, regardless of their Indian or non-Indian status.

As described in the Department of Justice’s Final Notice on the pilot project, today’s decisions are based on a diligent, detailed review of application questionnaires submitted by the tribes in December 2013, along with excerpts of tribal laws, rules, and policies, and other relevant information.  That review, conducted in close coordination with the Department of the Interior and after formal consultation with affected Indian tribes, led the Justice Department to determine that the criminal justice system in the Pascua Yaqui, Umatilla, and Tulalip tribes have adequate safeguards in place to fully protect defendants’ rights under the Indian Civil Rights Act of 1968, as amended by VAWA 2013.

The Department of Justice is posting notices of the pilot-project designation on the Tribal Justice and Safety Web site (www.justice.gov/tribal/) and in the Federal Register.  In addition, each tribe’s application questionnaire and related tribal laws, rules, and policies will be posted on the Web site.  These materials will serve as a resource for those tribes that may also wish to participate in the pilot project or to commence exercising SDVCJ in March 2015 or later, after the pilot project has concluded.

For more information on VAWA 2013, please visit www.justice.gov/tribal/vawa-tribal.html.

2014-009_VAWA

TUCSON, Ariz. – On Feb. 3, 2014, Margarita Gomez, 32, of Tucson, was sentenced by U.S. District Judge John A. Jarvey to 30 months imprisonment.  Gomez pleaded guilty to corruptly endeavoring to obstruct and impede the due administration of the Internal Revenue Laws. Gomez was also ordered to pay $200,408 in restitution to the Internal Revenue Service (IRS).

Gomez operated a tax return preparation service (M & M Tax Service) in Tucson, Ariz., and conducted a scheme to obtain, and to aid others to obtain, the payment of more than $200,000 in federal tax refunds from the IRS through the preparation and filing of federal individual income tax returns that contained false refund claims.  Gomez admitted to soliciting clients who did not have legal status to work or reside in the United States, preparing false W-7 Forms, and manufacturing other fraudulent documentation.  Gomez also intentionally filed clients' federal individual income tax returns without signing the tax returns as the paid tax return preparer and directed certain federal income tax refunds issued to her clients to be transmitted to either her personal bank account or to a mail drop over which she had control. 

The investigation in this case was conducted by the Internal Revenue Service, Criminal Investigation.  The prosecution was handled by Mary Sue Feldmeier, Assistant U.S. Attorney, District of Arizona, Tucson, and Danny N. Roetzel, Trial Attorney, Department of Justice, Tax Division.

CASE NUMBER:           CR-13-00621-TUC-JGZ
RELEASE NUMBER:   2014-008_Gomez

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

TUCSON, Ariz. –On Jan. 24, 2014, Darrell Scott Ortega, 26, of Tucson, Ariz., a member of the Tohono O’odham Nation, was sentenced by U.S. District Court Judge Cindy K. Jorgenson to 28 months in federal prison followed by three years of supervised release.  Ortega pled guilty on July 23, 2013, to assault resulting in serious bodily injury. 

This case involved the Nov. 5, 2011, stabbing of a Sells man, also a member of the Tohono O’odham Nation.  The victim was at a social gathering at a residence in the Village of Kaka, when Ortega stabbed the victim in the abdomen. 

The investigation in this case was conducted by the Federal Bureau of Investigation and the Tohono O’odham Nation Police Department.  The prosecution was handled by Raquel Arellano, Assistant U.S. Attorney, District of Arizona, Tucson.

CASE NUMBER:           CR-12-1486-TUC-CKJ  
RELEASE NUMBER:   2014-005_Ortega

RURAL/METRO TO PAY $2.8 MILLION TO RESOLVE FALSE CLAIMS ALLEGATIONS

PHOENIX – Rural/Metro Corporation, a Delaware corporation that through its subsidiaries and affiliates provides private ambulance and fire protection services in Arizona and approximately 20 other states, has agreed to pay the United States $2,802,112 to resolve civil allegations that various Rural/Metro ambulance companies violated the federal False Claims Act by submitting false bills to Medicare.

“The need to protect federal funds, including the Medicare trust fund, from fraud, waste, and abuse has never been greater,” said U.S. Attorney John S. Leonardo.  “The U.S. Attorney’s Office will continue to use the False Claims Act to pursue entities and individuals who improperly profit from federal dollars at the expense of the public.  This settlement agreement is a substantial recovery for taxpayers and sends a clear message that the federal government will not stand idly by when its programs lose money due to false claims for payment.”

The settlement agreement resolves allegations that from Jan. 1, 2007, through Dec. 31, 2011, various ambulance companies owned and operated by Rural/Metro—including SW General Inc., dba Southwest Ambulance; Southwest Ambulance of Casa Grande Inc., dba SWARA; and Southwest Ambulance of Tucson Inc., dba Kords Ambulance—billed Medicare for transporting patients from one hospital to another on an emergency basis when, in fact, the calls were not emergencies.  The United States alleged that as a result of these false and “upcoded” claims, Medicare paid substantially more for the ambulance services than was warranted.  The settlement is neither an admission of liability by Rural/Metro, nor is it a concession by the United States that its claims are not well founded.

Individuals with information regarding fraud, waste, or abuse related to Medicare or other federal programs are encouraged to file a complaint with the U.S. Attorney’s Office through the office’s website, http://www.justice.gov/usao/az/, or by calling (602) 514-7500.

RELEASE NUMBER:   2013-099_Rural/Metro

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

PHOENIX – On Dec. 17, 2013, Michael Rocky Lane, 52, of Scottsdale, Ariz., was sentenced by U.S. District Judge David G. Campbell to 180 months’ imprisonment, followed by five years of supervised release.  Lane was found guilty by a federal jury on July 19, 2013 of two counts of conspiracy to manufacture and distribute a controlled substance analogue and one count of possession with the intent to distribute a controlled substance analogue.

“This sentence reflects the seriousness of manufacturing and distributing drug analogues,” stated U.S. Attorney John S. Leonardo.  “The defendant tried to avoid prosecution by manufacturing chemically re-designed drugs to imitate the effects of illegal drugs.  This is not only illegal, but very dangerous because the effects of the re-designed drugs are often unpredictable.  The U.S. Attorney’s Office will continue to work with our law enforcement partners to prosecute such novel attempts to circumvent our drug laws.”

            Evidence presented at trial proved that during the spring and summer of 2011, Lane was one of the lead sales personnel at Consortium Distribution (Consortium). Consortium was the manufacturer of “Eight Ballz Bath Salt,” which contained the powerful stimulant Methylenedioxypyrovalerone (MDPV), an analogue of the Schedule I controlled substance methcathinone. 

In October of 2011, the DEA temporarily scheduled MDPV as a Schedule I controlled  substance.  Despite this scheduling, Consortium’s activities did not cease.  Lane found replacement chemicals to be used in their next generation of “bath salts” products.
These replacement chemicals included, among others, MDPV analogues like Alph-Pyrrolidinopentiophenone (APVP) and Alpha-Pyrrolidinobutiophenone (APBP).  The product was then re-named “Eight Ballz Ultra Premium Glass Cleaner.” Consortium manufactured this APVP product up until approximately May of 2012, at which time it ceased manufacturing “bath salts” products due to law enforcement investigations involving designer drugs.

           
Lane left Consortium around the fall of 2011 and started his own designer drug business, Dynamic Distribution (“Dynamic”).  Dynamic’s main products were “Amped Lady Bug Attractant Exuberance Powder,” “White Water Rapid Lady Bug Attractant Exuberance Powder,” and “Snowman Glass Cleaner.”  Lane was the mastermind behind Dynamic’s operations and employed approximately 20 individuals, who were involved in manufacturing, packaging, and distributing these designer drugs, and running its day-to-day operations. 

Evidence at trial showed that Dynamic’s “designer drugs” were powerful cocaine-like or methamphetamine-like stimulants that got people high, were marketed like other illicit drugs and were purposefully mislabeled in an effort to circumvent federal law.  Lane was aware of all of this, but falsely assured many of his employees that his business was legitimate.

Dynamic made millions of dollars manufacturing and selling these products to smoke shops and individual users across the United States.  The operations at Dynamic continued until July 25, 2012, when DEA executed a federal search warrant at Dynamic and arrested Lane at his residence. 

The investigation in this case was conducted by the Drug Enforcement Administration. The prosecution was handled by Donald Pashayan, Theresa Rassas, Mark Wenker and Monica Edelstein, Assistant U.S. Attorneys, District of Arizona, Phoenix.

CASE NUMBER:           CR-12-1419-PHX-DGC
RELEASE NUMBER:   2013-098_Lane

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

PHOENIX – On Dec. 16, 2013, Ralph C. Moreno, 53, of Phoenix, was sentenced by Senior U.S. District Judge Roslyn O. Silver to 300 months (25 years) in prison followed by 10 years supervised release, and a $3000 fine.  Judge Silver further ordered forfeiture of Moreno’s interest in a Stoeger .40 caliber handgun, a Bushmaster .223 caliber rifle, and $75,366 in U.S. currency.  Moreno was found guilty by a federal jury on Sept. 18, 2013, of three felonies - conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and felon in possession of a firearm.

            At trial, it was proven that Moreno sold methamphetamine at his Phoenix residence to persons who ultimately intended it to reach associates of the Arizona “Mexican Mafia,” a prison based gang.  After a search warrant was obtained for Moreno’s residence, law enforcement found the two firearms listed above and drug proceeds amounting to $75,366 in cash.  At the time he committed the offenses, Moreno had two prior state felony convictions for drug trafficking. 

The investigation in this case was conducted by the Federal Bureau of Investigation, the Federal Bureau of Prisons, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Arizona Department of Public Safety, and the Arizona Department of Corrections.  The prosecution was handled by Michael Lee and Brian Larson, Assistant U.S. Attorney’s, District of Arizona, Phoenix.

CASE NUMBER:           CR-11-1865-PHX-ROS 
RELEASE NUMBER:   2013-097_Moreno

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

PHOENIX – On Dec. 11, 2013, Carl Carlson, 46, of Teesto, Arizona – a member of the Navajo Nation, was sentenced by U.S. District Judge James A. Teilborgto a total of 300 months in prison, followed by a lifetime term of supervised release. Carlson is also required to register as a sex offender in compliance with federal, state and local laws.

             In January 2011, the Federal Bureau of Investigation received a report that a Navajo man was in possession of photographs of child pornography.  Through further investigation, agents determined that Carlson had sexually assaulted several juvenile victims while they were under his care on the Navajo Nation Indian Reservation.  Carlson took photographs while he sexually assaulted the children.  He had these images developed and kept them until they were discovered and turned over to law enforcement.  Carlson pled guilty on May 15, 2013, to Production of Child Pornography and Abusive Sexual Conduct. 

The investigation in this case was conducted by the Federal Bureau of Investigation, Flagstaff Resident Office. The prosecution was handled by Melissa B. Karlen, Assistant U.S. Attorney, District of Arizona, Phoenix.

CASE NUMBER:           CR-12-8248-PHX-JAT  
RELEASE NUMBER:   2013-096_Carlson

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/