District of Nevada

LAS VEGAS, Nev. — A northern California man was sentenced today to seven years and six months in prison, to be followed by lifetime supervision, for receiving and distributing more than 1,000 images of child pornography, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

Cody Nathan Patterson, 32, of northern California, resided in Henderson, Nev., at the time of the offense. In March 2020, he pleaded guilty to one count of receipt and distribution of child pornography before U.S. District Judge Andrew P. Gordon, who sentenced Patterson today. In addition to imprisonment and supervised release, Patterson was ordered to pay $89,000 in restitution to victims. Under the Sex Offender Registration Notification Act, Patterson is also required to register as a sex offender.

According to court documents, between May 2013 and November 2015, Patterson distributed and received nearly 1,200 images of child pornography using Skype. In November 2015, Skype reported to the National Center for Missing and Exploited Children (NCMEC) that a user — subsequently identified by investigators as Patterson — uploaded images depicting child pornography. When executing search warrants at Patterson’s residence and vehicle, law enforcement seized electronic devices. Those devices contained more than 10,000 images and videos of child pornography, some of which included sadistic and masochistic content.

The investigation was conducted by the Henderson Police Department and the FBI’s Internet Crimes Against Children Task Force. Assistant U.S. Attorney Jessica Oliva prosecuted the case.

To report child sexual abuse and exploitation, please contact the NCMEC at 1-800-THE-LOST (1-800-843-5678) or online at https://report.cybertip.org/.

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 U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.

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LAS VEGAS, Nev. — A five-time convicted felon was sentenced Monday to three years and four months in prison for unlawful possession of a firearm and threatening his girlfriend’s life with the firearm, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Patrick Gorman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

“Working closely with our law enforcement partners, one of our office’s top priorities is reducing the threat of gun violence in our communities by prosecuting felons who illegally possess firearms,” said U.S. Attorney Trutanich. “This case helps illustrate the impact that the Department of Justice seeks to achieve through Project Veronica, which is providing new resources to curb domestic and sexual violence in Nevada, including gun crimes.”

Bryson Lamar Williams, a 34 year old from Las Vegas, pleaded guilty on June 24, 2020, to one count of felon in possession of a firearm. In addition to the term of imprisonment, U.S. District Judge Jennifer A. Dorsey sentenced Williams to three years of supervised release. Williams is prohibited from possessing a firearm because of his prior felony convictions for Attempted Grand Larceny Auto; Possession of a Controlled Substance; Attempted Possession of Stolen Property; Possession of a Firearm by an Ex-Felon; and Attempted Ownership or Possession of a Firearm by a Prohibited Person.

According to court documents, on October 12, 2019, Williams entered his girlfriend’s apartment, where she lived with her two children. Williams retrieved a .40 caliber pistol he had been storing in the closet. He exited the apartment, fired several shots in the parking lot of the apartment complex, and then re-entered the residence to reload the firearm. While in the apartment, he threatened his girlfriend with the firearm, stole her phone, and stated: “If you let anyone know, or call the police then you already know what’s gonna’ happen and everyone’s gonna’ get killed.” Williams attempted to flee and, shortly afterwards, Las Vegas Metropolitan Police Department officers arrested him.

This case resulted from an investigation by the ATF with assistance from the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Daniel Clarkson prosecuted the case.

This case was brought as part of Project Veronica, an initiative that the Department of Justice and the U.S. Attorney’s Office for the District of Nevada launched in August 2020. Project Veronica brings together law enforcement agencies, tribes, victims of domestic violence, and local and state government within Nevada to curb domestic violence and sexual violence. Project Veronica is named in honor of a local victim of domestic violence named Veronica Caldwell. In 2015, Veronica lost her life at the hands of her husband, who also shot and killed Veronica’s daughter Yvonne and her daughter’s boyfriend.

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LAS VEGAS, Nev. — Billy Joe West, 57, of Las Vegas, was sentenced today to four years and nine months in federal prison for soliciting and accepting bribes from convicted felons on federal supervised release in exchange for concealing their positive and missed drug tests, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada.

“In addition to violating federal law, the defendant’s breach of the public’s trust subverted the recovery and rehabilitation of many individuals undergoing court-ordered substance abuse treatment,” said U.S. Attorney Trutanich. “This reinforces why employees of federal contractors must put the public interest over their self interests.”

West pleaded guilty on June 1, 2020, to one count of prevention of communication of supervised release and probation violation. In addition to the term of imprisonment, U.S. District Judge Jennifer A. Dorsey sentenced West to three years of supervised release.

According to court documents and West’s admissions, his scheme caused over 100 false records to be made and reported to the U.S. Probation Office. West was a supervisor at WestCare Nevada, Inc., a federally contracted drug testing facility that conducted, among other services, court-ordered urinalysis drug testing of supervisees who are on federal probation and supervised release. West’s responsibilities included administering urinalysis drug testing.

Between June 21, 2018, and March 19, 2020, West misused his position as a supervisor and misled U.S. Probation Officers through a scheme to solicit and accept bribes from supervisees, in exchange for reporting false negative drug tests to the U.S. Probation Office. As a result of those false negative reports, probation officers were deceived into believing that certain supervisees were complying with court-ordered terms of their supervised release. But the supervisees had in fact violated terms of their supervised release by either missing mandatory drug tests or testing positive for controlled substances. Following West’s arrest in March 2020, the number of “no-shows” and positive drug test results that WestCare reported to the U.S. Probation Office increased.

This case was the product of an investigation by the FBI. Assistant U.S. Attorney Jessica Oliva prosecuted the case.

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LAS VEGAS, Nev. — U.S. Attorney Nicholas A. Trutanich for the District of Nevada, Special Agent in Charge Aaron C. Rouse for the Federal Bureau of Investigation (FBI), U.S. Marshal Gary Schofield, and Sheriff Joseph Lombardo of the Las Vegas Metropolitan Police Department (LVMPD) announced today that five individuals are facing federal charges for causing damage to the Foley Federal Building and U.S. Courthouse on May 30, 2020.

“Agitators at the May 30 protest in downtown Las Vegas allegedly damaged a federal courthouse and threatened to attack a law enforcement officer,” said U.S. Attorney Trutanich. “These cases should reinforce that our office will protect lawful First Amendment activity — while also upholding the rule of law by prosecuting those who would incite and escalate violence, vandalism, and destruction.”

“The FBI’s mission is to uphold the Constitution, which includes freedom of speech and the right to assemble,” said Special Agent in Charge Rouse. “A line was crossed in what was intended to be a peaceful protest in Las Vegas and federal property was destroyed as a result of the alleged actions of these subjects. We will continue working with our federal, state and local partners to ensure that those that destroy parts of our city are held accountable."

“The United States Marshals have protected the Federal Judiciary since 1789. This investigation is part of a joint effort by many agencies,” said Marshal Schofield. “These arrests ensure that the community continues to have unfettered access to Justice.”

Alejandro 

Avalos (28), Alexander  Kostan (21), Reginald  Lewis (19), Kelton K.  Simon (34), and Jeanette R.  Wallace (24), all of Las Vegas, have been each charged in separate criminal complaints with one count of depredation against property of the United States.

As alleged in court documents, on the evening of May 30, 2020, a protest in front of the federal buildings in downtown Las Vegas following the May 25th death of George Floyd in Minneapolis, MN became boisterous. Fireworks were set off, walls were spray painted with obscenities and graffiti, and small bushes were lit on fire. Several individuals went to the east entrance of the Foley Federal Building and U.S. Courthouse (FFB), threw paint on the windows, and kicked and struck the windows with objects. According to an off-duty Federal Protective Service Protection Security Officer who was stationed inside the FFB that night, the crowd could see him inside the building and he could hear persons saying, “Get him!” and “Get the cop!”

Additional police units arrived at the FFB and the crowd was ultimately dispersed. The cost of repairing and cleaning up the damage done to the FFB was estimated to be about $71,335.72.

With respect to the five individuals facing federal charges:

• Footage captured by surveillance cameras at the FFB, as well as social media videos, show Avalos striking the building’s windows with a blue metal bar, and breaking at least one window.

 

•  Kostan repeatedly kicked the FFB’s windows.

 

• Simon repeatedly threw what appears to be a metal object, in the shape of the letter “N,” at the FFB windows. Metal letters that had been attached to the FFB’s exterior were torn off by the crowd.

 

• Wallace picked up and threw what appeared to be rocks and a paint can at FFB windows.

 

• Lewis repeatedly kicked FFB windows and doors.

 

Avalos, Kostan, Lewis, Simon, and Wallace have all been arraigned in federal court. If convicted, each defendant faces a statutory maximum penalty of 10 years in prison and a $250,000 fine. The sentencing of a defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

A criminal complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt. Every defendant is presumed innocent unless and until proven guilty in a court of law. 

These five cases are the product of an investigation by the FBI's Las Vegas Violent Crimes Task Force and LVMPD. Assistant U.S. Attorneys Lisa Cartier-Giroux and Kimberly Sokolich are prosecuting the cases.

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A Montana man was sentenced to 87 months in prison Tuesday for his role in a multimillion-dollar international investment-fraud conspiracy.     

Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Field Office made the announcement.

Sean Finn, 51, of Whitefish, Montana, was sentenced by U.S. District Judge Kent J. Dawson of the District of Nevada.  Judge Dawson also ordered Finn to pay $6,075,000 in restitution and to forfeit $830,000.  On Feb. 4, 2020, after a one-week trial, Finn was convicted by a jury of one count of conspiracy to commit securities fraud and wire fraud, four counts of wire fraud, and four counts of securities fraud.  He was acquitted of one count of wire fraud. 

According to the evidence presented at trial, Finn conspired with others in the United States and Switzerland to promote investments and loan instruments that he knew to be fictitious.  Finn and his co-conspirators told victims that, for an up-front payment ranging from $100,000 to $1 million, a Swiss company known as Malom Group AG (Malom), whose name stood for “Make A Lot Of Money,” would provide access to lucrative investment opportunities and substantial cash loans. 

The evidence showed that to effectuate this scheme, the defendant and his co-conspirators provided victims with fabricated bank documents purporting to show that Malom held hundreds of millions of dollars in overseas bank accounts, as well as documents falsely stating that Malom had previously closed similar deals.  The evidence showed that when victims wired their money into an escrow account controlled by the co-conspirators, the money was released and disbursed to, among others, Finn for his own personal use.  The evidence further showed that shortly before he was indicted in 2013, Finn fled to Canada, where he was arrested in 2014 and ultimately extradited back to the United States in 2018.  According to the evidence presented at trial, losses to the victims from the scheme totaled more than $3.8 million.          

Finn was charged together with five other defendants.  Two of these defendants, Anthony Brandel and James Warras, were found guilty of conspiracy and multiple counts of wire fraud and securities fraud following a jury trial in 2015.  Brandel and Warras were each sentenced on Aug. 3, 2016 to 87 months in prison, followed by three years of supervised release.  A third defendant, Joseph Micelli, pleaded guilty to conspiracy to commit wire fraud and securities fraud in 2015 and was sentenced on Feb. 23, 2016 to 60 months in prison, followed by three years of supervised release.  The other two defendants, Martin Schlaepfer and Hans-Jurg Lips, remain at large outside the United States.  All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The FBI’s Las Vegas Field Office investigated the case.  Assistant Deputy Chief Anna G. Kaminska and Trial Attorney Blake C. Goebel of the Criminal Division’s Fraud Section prosecuted the case with assistance from the Justice Department’s Office of International Affairs and the U.S. Attorney’s Office for the District of Nevada.  Deputy Chief Brian Young of the Fraud Section previously handled the prosecution.  The Securities and Exchange Commission’s Enforcement Division, which conducted a parallel civil-enforcement investigation, as well as the Royal Canadian Mounted Police, also provided valuable assistance.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

WASHINGTON – A Montana man was sentenced to 87 months in prison Tuesday for his role in a multimillion-dollar international investment-fraud conspiracy.     

Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Field Office made the announcement.

Sean Finn, 51, of Whitefish, Montana, was sentenced by U.S. District Judge Kent J. Dawson of the District of Nevada.  Judge Dawson also ordered Finn to pay $6,075,000 in restitution and to forfeit $830,000.  On Feb. 4, 2020, after a one-week trial, Finn was convicted by a jury of one count of conspiracy to commit securities fraud and wire fraud, four counts of wire fraud, and four counts of securities fraud.  He was acquitted of one count of wire fraud. 

According to the evidence presented at trial, Finn conspired with others in the United States and Switzerland to promote investments and loan instruments that he knew to be fictitious.  Finn and his co-conspirators told victims that, for an up-front payment ranging from $100,000 to $1 million, a Swiss company known as Malom Group AG (Malom), whose name stood for “Make A Lot Of Money,” would provide access to lucrative investment opportunities and substantial cash loans. 

The evidence showed that to effectuate this scheme, the defendant and his co-conspirators provided victims with fabricated bank documents purporting to show that Malom held hundreds of millions of dollars in overseas bank accounts, as well as documents falsely stating that Malom had previously closed similar deals.  The evidence showed that when victims wired their money into an escrow account controlled by the co-conspirators, the money was released and disbursed to, among others, Finn for his own personal use.  The evidence further showed that shortly before he was indicted in 2013, Finn fled to Canada, where he was arrested in 2014 and ultimately extradited back to the United States in 2018.  According to the evidence presented at trial, losses to the victims from the scheme totaled more than $3.8 million.          

Finn was charged together with five other defendants.  Two of these defendants, Anthony Brandel and James Warras, were found guilty of conspiracy and multiple counts of wire fraud and securities fraud following a jury trial in 2015.  Brandel and Warras were each sentenced on Aug. 3, 2016 to 87 months in prison, followed by three years of supervised release.  A third defendant, Joseph Micelli, pleaded guilty to conspiracy to commit wire fraud and securities fraud in 2015 and was sentenced on Feb. 23, 2016 to 60 months in prison, followed by three years of supervised release.  The other two defendants, Martin Schlaepfer and Hans-Jurg Lips, remain at large outside the United States.  All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The FBI’s Las Vegas Field Office investigated the case.  Assistant Deputy Chief Anna G. Kaminska and Trial Attorney Blake C. Goebel of the Criminal Division’s Fraud Section prosecuted the case with assistance from the Justice Department’s Office of International Affairs and the U.S. Attorney’s Office for the District of Nevada.  Deputy Chief Brian Young of the Fraud Section previously handled the prosecution.  The Securities and Exchange Commission’s Enforcement Division, which conducted a parallel civil-enforcement investigation, as well as the Royal Canadian Mounted Police, also provided valuable assistance.

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LAS VEGAS, Nev. – Andres Rafael Viola, 36, an Argentine citizen residing in Las Vegas, was sentenced today to 35 years in federal prison for repeatedly sexually assaulting a child, producing images of the sexual abuse, and possessing hundreds of images and videos of child sexual assault, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada, Special Agent in Charge Francisco Burrola for Homeland Security Investigations (HSI), and Sheriff Joseph Lombardo of the Las Vegas Metropolitan Police Department (LVMPD).

Viola pleaded guilty in February 2020 to sexual exploitation of children and possession of child pornography. In addition to imprisonment, U.S. District Judge Richard F. Boulware II sentenced Viola to a lifetime term of supervised release. Under the Sex Offender Registration and Notification Act (SORNA), Viola must register as a sex offender. Viola’s sentence also includes a $10,000 assessment pursuant to the Justice of Victims of Trafficking Act.

According to court documents, in May 2019, the National Center for Missing and Exploited Children (NCMEC) received a report from Yahoo, Inc. indicating that a user received child pornography sent by Viola, who was using the dark web Tor network to distribute images of child sexual assault.

On June 7, 2019, federal law enforcement arrested Viola at his Las Vegas residence. Law enforcement determined that Viola had supervisory control over a child victim. A forensic examination of electronic devices that were seized from Viola’s home revealed nearly 350 child pornography images and video, including Viola’s sexual exploitation of the child victim and a curated collection of child pornography from other victims. Viola had used the dark web to distribute, trade, and share the child sexual assault materials he created of the child victim.

For the hands-on offenses related to the child victim, Viola pleaded guilty in Nevada state court to one count of Sexual Assault of a Child under the Age of 14.

This case was the product of an investigation by HSI and the LVMPD. Assistant U.S. Attorneys Bianca Pucci and Elham Roohani prosecuted the case.

To report child sexual abuse and exploitation, contact the NCMEC at 1-800-THE-LOST (1-800-843-5678) or online at https://report.cybertip.org/.

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 U.S. Attorney’s Offices and the Department of Justice’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.justice.gov/psc.

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LAS VEGAS, Nev. – U.S. Attorney Nicholas A. Trutanich for the District of Nevada announced today that the Clark County School District Police Department received $500,000 from the Department of Justice’s Office of Community Oriented Policing Services (COPS Office) School Violence Prevention Program (SVPP). Nationally, the COPS Office SVPP awarded nearly $50 million in school safety funding. SVPP provides up to 75% funding for school safety measures in and around primary and secondary schools and school grounds.

“On behalf of our communities, we appreciate this grant from the COPS Office to help the Clark County School District safeguard our children and schools,” said U.S. Attorney Trutanich. “These funds are a significant step towards keeping children in Clark County and across the country out of harm’s way.”

“With the new school year underway, the safety of our nation’s students remains paramount,” said COPS Office Director Phil Keith. “Although this school year may look different at the start, now is the ideal time to make preparations to enhance school safety for when all of our children are back in the classroom.”   

The Students, Teachers, and Officers Preventing School Violence Act of 2018 (STOP School Violence Act of 2018) gave the COPS Office authority to provide awards directly to states, units of local government, Indian tribes, and public agencies (such as school districts and law enforcement agencies) to improve security at schools and on school grounds in the jurisdiction of the grantee through evidence-based school safety programs. The award announced today can be used for coordination with law enforcement; training for local law enforcement officers to prevent student violence; metal detectors, locks, lighting, and other deterrent measures; technology for expedited notification of local law enforcement during an emergency; and other measures that provide a significant improvement in security. The full list of SVPP awards can be found here: https://cops.usdoj.gov/pdf/2020AwardDocs/svpp/Award_List.pdf.

In addition to the school safety grants announced today, the COPS Office School Safety Working Group, which is composed of representatives from eight national law enforcement organizations, has identified 10 essential actions that can be taken by schools, school districts, and law enforcement agencies to help prevent critical incidents involving the loss of life or injuries in our nation's schools and to respond rapidly and effectively when incidents do occur. The Ten Essential Actions to Improve School Safety are applicable to school shootings as well as to other areas of school safety, including natural disasters and traumatic events such as student suicide. Adopting policies and practices based on the recommendations in this publication can help make school communities safer and save lives.

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The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of more than 134,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. 

The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

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Two defendants were sentenced Wednesday to 20 years each in federal prison for crimes committed in connection with the manufacture of synthetic cannabinoid products (commonly referred to as “spice”), operating a continuing criminal enterprise, manufacturing and distributing controlled substance analogues, wire fraud, mail fraud, money laundering, maintaining a drug premises, and possession of a listed chemical with the intent to manufacture a controlled substance.

On July 3, 2019, following a ten-day federal jury trial in Las Vegas, Nevada, Charles Burton Ritchie, 49, of Park City, Utah, and Benjamin Galecki, 46, of Pensacola, Florida, were found guilty of 24 counts, including operating a continuing criminal enterprise, manufacturing and possessing with the intent to distribute controlled substance analogues, and money laundering, among other related charges.

“Charles Burton Ritchie and Benjamin Galecki operated a nationwide criminal enterprise, selling dangerous drugs worth millions of dollars that contained illegal ingredients imported from China,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division.  “These sentences demonstrate the department’s commitment to aggressively pursuing criminals who seek to circumvent U.S. drug laws by selling dangerous drugs that threaten the health of our communities across the nation.”

“Our office appreciates the opportunity to work closely with our law enforcement partners and the national Organized Crime Drug Enforcement Task Forces to dismantle this illegal drug-manufacturing operation,” said U.S. Attorney Nicholas A. Trutanich of the District of Nevada.  “Our joint efforts have helped curb the flow of spice into communities across the country.”

“Working collaboratively with our justice partners to rid our communities of spice and other toxic cannabinoid products helps save lives,” said Assistant Special Agent in Charge Dan Neill of the U.S. Drug Enforcement Administration's Las Vegas Field Office.  “Disrupting this organization sends a clear message that we will not tolerate those who prey on our communities to further their criminal activity.”

“Ritchie and Galecki benefited greatly at the detriment of our community and others by putting illegal drugs on the streets and profiting from it,” said Special Agent in Charge Tara Sullivan, IRS Criminal Investigation.  “IRS Criminal Investigation is proud to serve on the side of justice to clean up the streets.”

According to court documents and evidence presented during trial, from March 21 to July 25, 2012, Ritchie and Galecki owned and managed Zencense Incenseworks, a company that (a) manufactured smokable synthetic cannabinoid products and (b) marketed and sold them as “potpourri,” “incense,” or “aromatherapy.”  Ritchie and Galecki rented a warehouse in Las Vegas for the sole purpose of manufacturing these synthetic products, which contained the dangerous chemical XLR-11 — a controlled substance analogue.  At the Las Vegas warehouse, a Zencense employee would mix XLR-11 with acetone and liquid flavoring, and then apply the chemical mixture to dried plant material.  Next, the employee would mail the compounded mixture to Ritchie and Galecki in Pensacola, Florida, where other workers would place the spice into small retail bags.

The defendants sold their products — with suggestive brand names such as “Bizarro,” “Orgazmo,” “Headhunter,” and “Defcon 5 Total Annihilation” — to smoke shops across the United States.  From June 1 to July 25, 2012, Ritchie and Galecki were responsible for manufacturing and distributing approximately 4,000 pounds of spice, and they made approximately $1.61 million selling XLR-11 spice manufactured in Nevada.

In two separate cases that were transferred to the District of Nevada, the defendants were each sentenced for money laundering and unlawful monetary transactions.  Ritchie received nine years in federal prison for charges brought in the Southern District of Alabama and nine years in federal prison for charges brought in the Eastern District of Virginia.  Galecki received eight years in federal prison for charges brought in the Southern District of Alabama and eight years in federal prison for charges brought in the Eastern District of Virginia.  All sentences will run concurrent to each other.  Additionally, the defendants were ordered to forfeit approximately $2.5 million as a result of their illegal enterprise in the District of Nevada.

This case was investigated by the IRS-Criminal Investigation, the DEA, and the Las Vegas Metropolitan Police Department.  Trial Attorneys Cole Radovich and Acting Assistant Deputy Chief Jason Ruiz of the Criminal Division’s Narcotic and Dangerous Drug Section and Assistant U.S. Attorneys James Keller and Daniel Hollingsworth of the District of Nevada prosecuted the case.  Assistant U.S. Attorney Deborah Griffin of the Southern District of Alabama and Assistant U.S. Attorneys Eric Hurt and Kevin Hudson of the Eastern District of Virginia prosecuted the separate cases that were transferred to the District of Nevada.

The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF).  The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.  The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

LAS VEGAS, Nev. — A Las Vegas resident pleaded guilty in federal court yesterday to fraudulently obtaining nearly $1.2 million in Social Security Administration (SSA) and Department of Veterans Affairs (VA) benefits, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

Javier Montano, 57, of Las Vegas, pleaded guilty to one count of theft of government funds. He is scheduled to be sentenced by U.S. District Judge Jennifer Dorsey on December 14, 2020.

According to court documents, Montano — who was the branch manager of a bank in Las Vegas — received information about two accounts with large balances and no activity:

• The first account (Account A) was held by a Las Vegas resident who was receiving SSA retirement benefits. The individual passed away in February 1997. The SSA was not notified about the individual’s death, and benefits continued to be paid into the account.
   
• The second account (Account B) was held by a Las Vegas resident who was receiving both SSA retirement benefits and VA benefits. The individual passed away in June 2011. Neither the SSA nor the VA was notified about the individual’s death, and benefits continued to accumulate in the account.
   
  Through a bank computer, Montano ordered debit cards for both accounts, using them to withdraw cash — which he either spent or deposited into his personal bank account — and to make purchases for his personal use and benefit. In addition, Montano ordered and wrote checks (for his personal use) for Account B. Montano also used his authority as a branch manager to authorize a $35,000 cashier’s check from Account B. He then used the funds to buy a luxury car, which he has agreed to forfeit to the United States.
   
  In total, between August 2015 and June 2020, Montano fraudulently obtained: (a) approximately $436,686.80 in SSA benefits to which he was not entitled; and (b) approximately $757,985.88 in VA benefits to which he was not entitled.
   
  The statutory maximum penalty faced by Montano is 10 years in prison and a $250,000 fine. The sentencing of a defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
   
  This case was the product of an investigation by the Social Security Administration, Office of Inspector General, and Department of Veterans Affairs, Office of Inspector General. Assistant U.S. Attorney Jamie Mickelson is prosecuting the case.
   

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RENO, Nev. – A Reno man was sentenced today to 5 years and 3 months in federal prison for possessing thousands of child sexual abuse images and videos, including prepubescent minors involved in sexually explicit conduct and sadistic and masochistic conduct, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

Daren Wayne Phillips, 51, pleaded guilty on June 5, 2019, to one count of possession of child pornography. In addition, Chief U.S. District Judge Miranda Du sentenced Phillips to 20 years of supervised release following the term of imprisonment. Under the Sex Offender Registration Notification Act, Phillips will also be required to register as a sex offender.

According to court documents, in April 2018, an individual presented Phillips’ laptop computer to law enforcement and reported finding child pornography on the computer. Investigators found child pornography on Phillips’ computer. Phillips admitted that, starting in 2016 to April 2018, he possessed on his computer: (a) 4,753 images and 538 videos of child pornography; and (b) an additional 17,036 images and 449 videos containing child erotica or nudity. Some of the images depicted prepubescent minors engaging in sexually explicit conduct, including sadistic and masochistic conduct.

The case was investigated by the Northern Nevada Child Exploitation Task Force, the Washoe County Sheriff’s Office, and the Nevada Attorney General’s Office. Assistant U.S. Attorneys James Keller and Andolyn Johnson prosecuted the case.

To report child sexual abuse and exploitation, please contact the National Center for Missing & Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or online at https://report.cybertip.org/.

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 U.S. 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 and for information about internet safety education, please visit www.justice.gov/psc.

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LAS VEGAS, Nev. — A Las Vegas resident made his initial appearance in federal court on September 4, 2020 for illegally possessing machine guns and unregistered firearm suppressors, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada, Special Agent in Charge Frank Burrola for Homeland Security Investigations (HSI), Special Agent in Charge Patrick Gorman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Sheriff Joseph Lombardo of the Las Vegas Metropolitan Police Department (LVMPD).

Justin Pham, 30, of Las Vegas, was charged with one count of illegal possession of a machine gun and two counts of possession of a firearm not registered in the National Firearms Registration and Transfer Record. A jury trial has been scheduled before U.S. District Judge Jennifer A. Dorsey on November 3, 2020.

According to the indictment and arguments made in court, on or about August 15, 2020, Pham possessed three Glock semi-automatic firearms that he had modified to fire as fully automatic weapons without manual reloading. In addition, Pham possessed five firearm silencers that were not registered to him in the National Firearms Registration and Transfer Record.

As alleged, law enforcement became aware of Pham after an anonymous tipster reported that Pham had made threats that he was planning to commit a shooting. Pham also told the tipster that he had converted firearms into automatic weapons by using a 3-D printer. Law enforcement executed a search warrant on Pham’s home and vehicle. They located automatic weapons, which were Glock semi-automatic handguns that Pham converted into fully automatic firearms through Glock switches created from a 3-D printer. Additionally, law enforcement located the five suppressors, as well as numerous firearms and firearm parts, ammunition, and a 3-D printer.

Pham faces a statutory maximum sentence of: (a) ten years in prison and a $250,000 fine for the illegal possession of a machine gun charge; and (b) ten years in prison and a $250,000 fine for each count of possession of a firearm not registered in the National Firearms Registration and Transfer Record. In addition to imprisonment and monetary penalties, Pham also faces a period of supervised release and restitution.

An indictment merely alleges that crimes have been committed. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

This case is the product of a coordinated investigation by HSI, ATF, LVMPD, the Federal Bureau of Investigation, and the U.S. Postal Inspection Service. Assistant U.S. Attorney Stephanie Ihler is prosecuting the case.

The Clark County District Attorney’s Office has also filed charges on behalf of the State of Nevada against Pham.

This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the ATF when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.

For more information about Project Guardian, visit https://www.justice.gov/opa/pr/attorney-general-william-p-barr-announces-launch-project-guardian-nationwide-strategic-plan.

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RENO, Nev. — Two Reno residents — who each pleaded guilty to possession of child pornography in separate cases — were sentenced today to federal prison, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada. Chief U.S. District Judge Miranda Du presided over both sentencing hearings.                                                                                                            

U.S. v. Edward C. Wright

Edward C. Wright, 60, of Reno (Sun Valley), Nevada, was indicted in February 2019 and pleaded guilty to possession of child pornography in September 2020. Wright was sentenced to four years and nine months in federal prison, to be followed by lifetime supervised release.

According to court documents, in March 2018, detectives with the Regional Sex Offender Notification Unit began investigating Wright for failure to change his address as a sex offender. Wright is required to register as a sex offender due to a prior felony conviction in 2003 for possession of child pornography. Since 2003, Wright had three convictions for failure to register as a sex offender.

In January 2019, a forensic examination of Wright’s tablet revealed approximately 250 images of child sexual assault, including masochistic or sadistic material. The images were stored in a specialized application that disguises itself as a clock, and is designed to hide user files in a hidden vault.

U.S. v. Luis O. Rodriguez

Luis O. Rodriguez, 59, of Fallon, Nevada, was indicted in January 2019 and pleaded guilty to possession of child pornography in August 2019. Rodriguez was sentenced to three years in federal prison, to be followed by lifetime supervised release. In addition, Rodriguez was ordered to pay a total of $24,000 in restitution to eight victims.

According to court documents, between January 2017 and July 2018, law enforcement downloaded child pornography (via a peer-to-peer file sharing network) from an electronic device located at Rodriguez’s residence. During the execution of a search warrant at Rodriguez’s residence, law enforcement seized four electronic devices. A forensic examination of the seized devices revealed more than 150,000 images and videos of child sexual assault, including sadistic and masochistic conduct involving children under 12 years old.

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Under the Sex Offender Registration Notification Act, both Wright and Rodriguez are required to register as sex offenders.

These cases were investigated by members of the Internet Crimes Against Children Task Force (which includes Sparks Police Department, Washoe County Sheriff’s Office, Homeland Security Investigations, Federal Bureau of Investigation, Office of the Nevada Attorney General, Reno Police Department, Carson City Sheriff’s Office, and Lyon County Sheriff’s Office). Assistant U.S. Attorney Randy St. Clair prosecuted the cases.

These cases were 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 U.S. Attorney’s Offices and the Department of Justice’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.justice.gov/psc.

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LAS VEGAS, Nev. — A Las Vegas doctor made his initial appearance in federal court today for the unlawful distribution of opioid pain medications, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

Dr. William Alvear, 65, of Las Vegas, was charged by indictment with three counts of distribution of a controlled substance – Hydrocodone, and five counts of distribution of a controlled substance – Alprazolam. A jury trial is scheduled before U.S. District Judge Jennifer A. Dorsey on November 17, 2020.

According to allegations in the indictment, from March to May 2020, Alvear unlawfully distributed Hydrocodone and Alprazolam without a legitimate medical purpose and outside the usual course of professional practice. Hydrocodone, a Schedule II controlled substance, has a high potential for abuse and can lead to severe psychological or physical dependence. Alprazolam, common brand Xanax, is a Schedule IV controlled substance that also has the potential for abuse and can lead to limited psychological or physical dependence.

If convicted, Alvear faces a statutory maximum sentence is 20 years in prison and a $1,000,000 fine. The statutory sentence is prescribed by Congress and is provided here for informational purposes only.

An indictment merely alleges that crimes have been committed. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Peter S. Levitt is prosecuting the case.

If you have a tip or information about illegal sales or distribution of prescription opioids by doctors and pharmacies, please call the Drug Enforcement Administration at 1-877-Rx-Abuse (877-792-2873).

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A federal grand jury in the District of Nevada returned an indictment today charging a Russian national for his role in a conspiracy to intentionally cause damage to a protected computer.

Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Nicholas A. Trutanich of the District of Nevada, and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Field Office made the announcement.

The indictment alleges that Egor Igorevich Kriuchkov, 27, a citizen of Russia, attempted to recruit an employee of a company located in Nevada, with the purpose of introducing malicious software into the company’s computer network, extracting data from the network, and thereafter extorting ransom money from the company under the threat of making the extracted data public.

According to the indictment, from about July 16, 2020, to about Aug. 22, 2020, Kriuchkov conspired with associates to recruit an employee to introduce malware into the computer network of the employee’s company.

The malware would purportedly provide Kriuchkov and his co-conspirators with access to the data within the computer system. After the malware was introduced, Kriuchkov and his co-conspirators would extract data from the network and then threaten to make the information public, unless the company paid their ransom demand.

Kriuchkov was arrested on Aug. 22, 2020, in Los Angeles, California and had his initial appearance before U.S. Magistrate Judge Alexander F. MacKinnon of the U.S. District Court in the Central District of California.   Kriuchkov was detained pending trial and has not yet appeared in the District of Nevada.

An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.

The investigation was led by the FBI’s Las Vegas Field Office with assistance by the FBI’s Los Angeles and Sacramento Field Offices and the Washoe County (Nevada) Sheriff’s Office.  The case is being prosecuted by Senior Counsel C.S. Heath and Trial Attorney Thomas Dettore of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Richard Casper of the District of Nevada.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

WASHINGTON – A federal grand jury in the District of Nevada returned an indictment yesterday charging a Russian national for his role in a conspiracy to intentionally cause damage to a protected computer.

Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Nicholas A. Trutanich of the District of Nevada, and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Field Office made the announcement.

The indictment alleges that Egor Igorevich Kriuchkov, 27, a citizen of Russia, attempted to recruit an employee of a company located in Nevada, with the purpose of introducing malicious software into the company’s computer network, extracting data from the network, and thereafter extorting ransom money from the company under the threat of making the extracted data public.

According to the indictment, from about July 16, 2020, to about Aug. 22, 2020, Kriuchkov conspired with associates to recruit an employee to introduce malware into the computer network of the employee’s company. The malware would purportedly provide Kriuchkov and his co-conspirators with access to the data within the computer system. After the malware was introduced, Kriuchkov and his co-conspirators would extract data from the network and then threaten to make the information public, unless the company paid their ransom demand.

If convicted, Kriuchkov faces a statutory maximum sentence of five years in prison and a $250,000 fine. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes only. Kriuchkov also faces a period of supervised release, restitution, and monetary penalties.

An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.

The investigation was led by the FBI’s Las Vegas Field Office with assistance by the FBI’s Los Angeles and Sacramento Field Offices and the Washoe County (Nevada) Sheriff’s Office.  The case is being prosecuted by Senior Counsel C.S. Heath and Trial Attorney Thomas Dettore of the Criminal Division’s Computer Crime and Intellectual Property Section, and Assistant U.S. Attorney Richard Casper of the District of Nevada.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

A federal grand jury in Las Vegas, Nevada, returned a superseding indictment today charging a Las Vegas man with conspiracy to defraud the IRS, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, U.S. Attorney Nicholas A. Trutanich for the District of Nevada, and Special Agent in Charge Tara Sullivan for the IRS-Criminal Investigation.

According to the superseding indictment, Lance K. Bradford conspired with others to prepare tax returns on behalf of several automotive collision centers falsely claiming that the centers and their owners incurred millions in deductible expenses. From 2013 through 2015, these false returns allegedly claimed more than $11 million in false deductions, resulting in significant underreporting of business income and taxes due to the IRS.

Bradford was previously charged with aiding and assisting in the filing of false individual, corporate, and partnership returns on behalf of other individuals and businesses.

If convicted, Bradford faces a maximum sentence of five years in prison for the conspiracy charge and three years in prison for each of the 29 counts of aiding and assisting the filing of a false tax return. Bradford also faces a period of supervised release, restitution, and monetary penalties.

An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich commended special agents of IRS-Criminal Investigation and the Federal Bureau of Investigation, who conducted the investigation, and Trial Attorney Patrick Burns of the Tax Division and Assistant U.S. Attorney Steve Myhre, who are prosecuting the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

LAS VEGAS, Nev. - A federal grand jury in Las Vegas, Nevada, returned a superseding indictment today charging a Las Vegas man with conspiracy to defraud the IRS, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, U.S. Attorney Nicholas A. Trutanich for the District of Nevada, and Special Agent in Charge Tara Sullivan for the IRS-Criminal Investigation.

According to the superseding indictment, Lance K. Bradford conspired with others to prepare tax returns on behalf of several automotive collision centers falsely claiming that the centers and their owners incurred millions in deductible expenses. From 2013 through 2015, these false returns allegedly claimed more than $11 million in false deductions, resulting in significant underreporting of business income and taxes due to the IRS.

Bradford was previously charged with aiding and assisting in the filing of false individual, corporate, and partnership returns on behalf of other individuals and businesses.

If convicted, Bradford faces a maximum sentence of five years in prison for the conspiracy charge and three years in prison for each of the 29 counts of aiding and assisting the filing of a false tax return. Bradford also faces a period of supervised release, restitution, and monetary penalties.

An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich commended special agents of IRS-Criminal Investigation and the Federal Bureau of Investigation, who conducted the investigation, and Trial Attorney Patrick Burns of the Tax Division and Assistant U.S. Attorney Steve Myhre, who are prosecuting the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

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LAS VEGAS, Nev. – A Las Vegas tax preparer was sentenced today by U.S. District Judge Andrew P. Gordon to 12 months and one day in federal prison, to be followed by one year of supervised release, for falsely inflating deductions in his clients’ tax returns and underreporting taxable income (and claiming false expenses) in his own tax returns, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Tara Sullivan of the IRS-Criminal Investigation. Collectively, the false tax returns caused approximately $265,000 in losses to the IRS.

William Pamintuan Craig, 60, pleaded guilty on October 28, 2019, to making and subscribing a false tax return. According to court documents, since at least 2012, Craig operated a tax return preparation business in Las Vegas. When preparing his own tax returns, Craig concealed the actual revenue from his tax preparation business and claimed false work expenses. He underreported his taxable income for tax years 2012 to 2017 by a total of approximately $439,000, causing $143,237 in tax loss to the IRS. Craig also fraudulently claimed false “deductions” in his clients’ tax returns. Between 2012 and 2017, Craig caused at least $128,000 in tax loss by filing false returns for his clients.

In addition to imprisonment and supervised release, the court also ordered Craig to pay $143,237 in restitution to the IRS.

This case was the product of an investigation by the IRS-Criminal Investigation. Assistant U.S. Attorney Tony Lopez prosecuted the case.

If you suspect a tax preparer or tax preparation business is not complying with the U.S. tax laws, complete and submit a Return Preparer Complaint form with the IRS. More information about reporting suspected tax fraud activity may be found at https://www.irs.gov/.

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LAS VEGAS, Nev. — Oluremi Akinleye, 40, of Las Vegas, made his initial appearance in federal court today for his role in a conspiracy to fraudulently obtain money from accounts held by members of the Pension Fund of the Christian Church and the Lutheran Church Extension Fund, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI.

A federal grand jury returned an indictment on August 25, 2020, which was unsealed today, charging Akinleye with one count of conspiracy to commit wire fraud, six counts of wire fraud, one count of possession of 15 or more counterfeit and unauthorized access devices, and three counts of aggravated identity theft. Akinleye was arrested on August 28, 2020. A jury trial has been set before U.S. District Judge Gloria M. Navarro on November 2, 2020.

According to court documents, from November 2017 to July 2018, Akinleye and his co-conspirators conspired to steal money from accounts held by members of the Pension Fund of the Christian Church and the Lutheran Church Extension Fund. Both funds provide financial services to members of the religious community, including ministers. As part of the scheme, Akinleye and his co-conspirators fraudulently obtained the names and personal identifying information of certain account holders. Akinleye then used that information to impersonate those individuals, making withdrawals and transfers from their accounts. Through this scheme, Akinleye and his co-conspirators attempted to fraudulently obtain over $400,000 from the two funds.

The statutory maximum sentence is 20 years in prison for conspiracy to commit wire fraud; 20 years in prison for each count of wire fraud; and 10 years in prison for possession of 15 or more counterfeit and unauthorized access devices. The statutory minimum for aggravated identity theft is two years in prison. In addition to imprisonment, Akinleye also faces a period of supervised release, restitution, monetary penalties, and asset forfeiture.

An indictment merely alleges that crimes have been committed. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

This case is the product of an investigation by the FBI. Assistant U.S. Attorney Simon F. Kung is prosecuting the case.

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WASHINGTON - Four individuals responsible for mass-mailing fraud schemes were charged with allegedly defrauding thousands of elderly and vulnerable victims, the department announced today.  Two U.S. individuals and two Canadian individuals were charged for their roles in operating the schemes, which collectively caused tens of millions of dollars in victim losses.  Two defendants were charged in the Eastern District of New York and two defendants were charged in the District of Nevada.

“Fraud schemes are intolerable, especially those that harm our nation’s seniors,” said Acting Assistant Attorney General Ethan P. Davis of the Department of Justice’s Civil Division.  “As Attorney General Barr made clear earlier this year when he announced record results in the 2020 Elder Fraud Sweep, the Department of Justice is committed to protecting seniors.  These two cases illustrate that the Civil Division’s Consumer Protection Branch, together with partners at the Postal Inspection Service, will not stop until the scourge of elder fraud is defeated.” 

“These charges demonstrate the Postal Inspection Service will relentlessly pursue these fraudulent schemes until they no longer arrive in your mailbox,” said Deputy Chief Inspector Craig Goldberg of the Postal Inspection Service.  “Prize notices like these are mailed in an attempt to trick our elderly and vulnerable Americans, while the perpetrators attempt to hide their involvement around the corner or around the globe.  We are committed, with the Department of Justice, to protect our older Americans.”

“These individuals mailed their fraudulent prize promotions to victims in blatant defiance of prior Postal Service consent orders and agreements that prohibited them from doing so.  The fact that many of the victims were elderly and vulnerable makes the defendants’ conduct particularly egregious.  The Postal Inspection Service will continue its efforts to protect the public from fraud schemes and bring the perpetrators of those schemes to justice,” said Inspector in Charge Philip R. Bartlett.

 Two Long-Island Residents Indicted for Multi-Million Dollar Elder Fraud Scheme

An indictment unsealed today charges Long Island residents Sean Novis, 50, and Gary Denkberg, 57, with conspiracy to commit mail fraud and multiple mail fraud and wire fraud counts for running a fraudulent mass-mailing scheme that tricked thousands of consumers into paying fees for falsely promised prizes.  Novis and Denkberg made their initial appearances in U.S. District Court for the Eastern District of New York after they were arrested by United States Postal Inspectors Monday morning.

The indictment alleges that, from January 2003 to September 2016, the defendants mailed hundreds of thousands of prize notices that represented that victims were specially chosen to receive a large cash prize and would receive the prize if they paid a small fee.  Victims who paid the requested fee, however, did not receive the promised cash prize.  Although the notices appeared to be personalized correspondence, they were merely mass-produced, boilerplate documents that were bulk mailed to recipients whose names and addresses were on mailing lists.

According to the indictment, Novis and Denkberg continued to operate their fraudulent mass-mailing scheme in violation of United States Postal Service cease-and-desist agreements and consent orders that they agreed to in 2012.  The agreements and orders had permanently barred the defendants from mailing fraudulent prize notices.

Each charge in this case carries a statutory maximum sentence of twenty years in prison, and a statutory maximum fine of $250,000 or twice the gross gain or gross loss from the offense.

The United States Postal Inspection Service investigated the case.  The case is being prosecuted by Trial Attorneys Artie DeCastro and Daniel Zytnick of the Department of Justice Civil Division’s Consumer Protection Branch.  The Consumer Protection Branch thanks  the U.S. Attorney’s Office for the Eastern District of New York for its assistance in this case.

Canadian Nationals Charged For Long-Running Elder Fraud Schemes

In a separate indictment filed on August 5 in the District of Nevada, Canadian nationals Alex Quaglia and Patrick Fraser were charged with mail fraud and conspiracy to commit mail fraud in connection with schemes to defraud consumers by sending deceptive mailing pieces that falsely promised large cash prizes in exchange for payment of a fee.  Many of the victims were elderly.  The solicitations were sent using fictitious names and were designed to deceive recipients into believing that they had won hundreds of thousands or millions of dollars.  To claim their winnings recipients were directed to pay a small fee.  In fact, there was no cash prize sent to victims, and Quaglia, Fraser and their co-conspirators pocketed the money sent by victims.

“As alleged in the indictment, victims in Nevada, across the country, and around the world were defrauded of money in connection with the defendants’ schemes,” said U.S. Attorney Nicholas A. Trutanich for the District of Nevada. “Working with our Postal Inspectors and other law enforcement partners, we will identify, investigate, and prosecute criminals – both foreign and domestic – who prey on our seniors and other vulnerable Nevada residents. These fraud schemes can happen to anyone.”

The scheme allegedly caused millions of dollars in losses to thousands of victims.  Quaglia was charged with one conspiracy to commit mail fraud count and seven counts of mail fraud.  Quaglia’s scheme is alleged to have begun as early as 2000.  Fraser was charged with conspiracy to commit mail fraud with Quaglia and with a separate conspiracy charge related to a similar scheme he orchestrated after breaking away from Quaglia’s operation in 2015.  Fraser was also charged with six counts of mail fraud.  Each charge of the indictment carries a statutory maximum sentence of twenty years in prison along with a statutory maximum fine of $250,000 or twice the gross gain or gross loss from the offense.

The United States Postal Inspection Service investigated the case.  The case is being prosecuted by Trial Attorneys Matt Lash and Yolanda McCray Jones of the Department of Justice Civil Division’s Consumer Protection Branch with substantial assistance from Assistant U.S. Attorney Nicholas Dickinson from the U.S. Attorney’s Office for the District of Nevada.  The Criminal Division’s Office of International Affairs has also provided critical support.

An indictment is an accusation by a federal grand jury and is not evidence of guilt.  The defendant should be presumed innocent unless and until proven guilty.

Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors.  In particular, in March 2020, the department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide elder fraud sweep.  The department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act. 

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).  This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps.  Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis.  Reporting is the first step.  Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses.  The hotline is staffed 7 days a week from 6:00 a.m. to 11:00 p.m. eastern time.  English, Spanish and other languages are available.

For more information about the Consumer Protection Branch, visit its website at www.justice.gov/civil/consumer-protection-branch.  For more information about the U.S. Attorneys’ Offices for the Eastern District of New York and District of Nevada visit their websites at www.justice.gov/usao-edny and www.justice.gov/usao-nv.

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LAS VEGAS, Nev. – Andrew Joseph Sanders, 28, of Las Vegas, was sentenced on Friday, August 28, by Chief U.S. District Judge Miranda Du to five years in federal prison for lighting two separate fires at The Drew Las Vegas, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Patrick Gorman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

According to court documents, on March 1, 2018, Sanders trespassed onto the property of The Drew Las Vegas, a resort and casino that was under construction. While on the property, Sanders recorded himself on his cell phone and also narrated. In one video, Sanders stated: “and I lit a fire to this [expletive]. I’m just bored, you know?”

Sanders set two separate fires inside a building, approximately 200 yards apart from one another. After setting the fires and while attempting to flee, Sanders “squared off” in a fighting stance with two firefighters who responded from the Clark County Fire Department. The firefighters had to subdue Sanders and convince him to stop fighting. As a result, those two firefighters were delayed in supplying water to their colleagues inside the building. The fires set by Sanders caused millions of dollars in damage.

Sanders pleaded guilty to one count of arson in October 2019. In addition to the term of imprisonment, he was sentenced to three years of supervised release. The court will determine defendant’s obligation to pay restitution and any amount owing at a later date.

The case is a product of an investigation by the ATF and Clark County Fire Department. Assistant U.S. Attorney Jessica Oliva prosecuted the case.

Anonymous tips may be submitted to ATF through the ReportIt mobile app or by calling the ATF Tip Line at 1-888-ATF-TIPS.

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A Nevada man has been arrested in connection with allegations that he fraudulently obtained approximately $500,000 from the Paycheck Protection Program (PPP) loan and the Economic Injury Disaster Loan (EIDL) program, and then laundered the funds through friends and family in order to buy a house.

Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Nicholas A. Trutanich of the District of Nevada, Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Field Office, Special Agent in Charge Tara Sullivan of the IRS-Criminal Investigation (IRS-CI) Las Vegas Field Office, and Special Agent in Charge Weston King of the Small Business Administration’s Office of the Inspector General (SBA-OIG) made the announcement.

Brandon Casutt, 49, of Henderson, Nevada, is charged in a criminal complaint in the District of Nevada, unsealed Tuesday, with making false statements to a financial institution, wire fraud, bank fraud, concealment money laundering, and engaging in unlawful monetary transactions.  He was arrested on Friday and made his initial appearance Tuesday afternoon before U.S. Magistrate Judge Elayna J. Youchah in Las Vegas.

The complaint alleges that Casutt perpetrated a scheme to submit fraudulent EIDL applications to the SBA and PPP loan applications to federally insured banks.  The SBA guarantees the loans for COVID-19 relief through the PPP under the Coronavirus Aid, Relief and Economic Security (CARES) Act.  The CARES Act also authorizes the SBA to provide an EIDL of up to $2 million to eligible small businesses experiencing financial disruption due to the COVID-19 pandemic.

Two of these fraudulent applications received funding: (1) a PPP loan for approximately $350,000 in the name of a business called Sky DeSign; and (2) an EIDL for approximately $150,000 in the name of a charity called Skyler’s C.F. Foundation, which is supposedly devoted to raising awareness about cystic fibrosis.  The loan applications indicated that each entity had numerous employees, significant payroll expenses, and substantial revenue.  According to the complaint, neither entity has employees nor pays any wages.  And Skyler’s C.F. Foundation had nowhere near the $600,000 revenue in 2019 that Casutt listed on the entity’s EIDL application.

According to the complaint, Casutt laundered the PPP funds by writing checks to 23 different people — friends, family members, associates, and himself — each in the amount of $8,330 with “back pay” and “pandemic pay” in the checks’ memo lines.  Casutt then had the funds diverted to a bank account in the name of Skyler’s C.F. Foundation and used them, along with the EIDL funds, to purchase a $400,000 house in Henderson, into which he and his family moved at the end of June 2020.  

The CARES Act is a federal law enacted March 29.  It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic.  One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP.  In April 2020, Congress authorized over $300 billion in additional PPP funding.

The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent.  Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities.  The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.

The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue.  EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities and fixed debt payments.  If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used as the same purpose as the PPP funds.   

A federal criminal complaint is merely an accusation.  A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

The FBI, IRS-CI, and SBA-OIG investigated the case.  Assistant Chief William E. Johnston of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jamie Mickelson of the U.S. Attorney’s Office for the District of Nevada are prosecuting the case.     

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

LAS VEGAS, Nev. – A Nevada man has been arrested in connection with allegations that he fraudulently obtained approximately $500,000 from the Paycheck Protection Program (PPP) loan and the Economic Injury Disaster Loan (EIDL) program, and then laundered the funds through friends and family in order to buy a house.

Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Nicholas A. Trutanich of the District of Nevada, Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Field Office, Special Agent in Charge Tara Sullivan of the IRS-Criminal Investigation (IRS-CI) Las Vegas Field Office, and Special Agent in Charge Weston King of the Small Business Administration’s Office of the Inspector General (SBA-OIG) made the announcement.

Brandon Casutt, 49, of Henderson, Nevada, is charged in a criminal complaint in the District of Nevada, unsealed Tuesday, with making false statements to a financial institution, wire fraud, bank fraud, concealment money laundering, and engaging in unlawful monetary transactions.  He was arrested on Friday and made his initial appearance Tuesday afternoon before U.S. Magistrate Judge Elayna J. Youchah in Las Vegas.

The complaint alleges that Casutt perpetrated a scheme to submit fraudulent EIDL applications to the SBA and PPP loan applications to federally insured banks.  The SBA guarantees the loans for COVID-19 relief through the PPP under the Coronavirus Aid, Relief and Economic Security (CARES) Act.  The CARES Act also authorizes the SBA to provide an EIDL of up to $2 million to eligible small businesses experiencing financial disruption due to the COVID-19 pandemic.

Two of these fraudulent applications received funding: (1) a PPP loan for approximately $350,000 in the name of a business called Sky DeSign; and (2) an EIDL for approximately $150,000 in the name of a charity called Skyler’s C.F. Foundation, which is supposedly devoted to raising awareness about cystic fibrosis.  The loan applications indicated that each entity had numerous employees, significant payroll expenses, and substantial revenue.  According to the complaint, neither entity has employees nor pays any wages.  And Skyler’s C.F. Foundation had nowhere near the $600,000 revenue in 2019 that Casutt listed on the entity’s EIDL application.

According to the complaint, Casutt laundered the PPP funds by writing checks to 23 different people — friends, family members, associates, and himself — each in the amount of $8,330 with “back pay” and “pandemic pay” in the checks’ memo lines.  Casutt then had the funds diverted to a bank account in the name of Skyler’s C.F. Foundation and used them, along with the EIDL funds, to purchase a $400,000 house in Henderson, into which he and his family moved at the end of June 2020.  

The CARES Act is a federal law enacted March 29.  It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic.  One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP.  In April 2020, Congress authorized over $300 billion in additional PPP funding.

The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent.  Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities.  The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.

The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue.  EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities and fixed debt payments.  If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used as the same purpose as the PPP funds.   

A federal criminal complaint is merely an accusation.  A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

The FBI, IRS-CI, and SBA-OIG investigated the case.  Assistant Chief William E. Johnston of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jamie Mickelson of the U.S. Attorney’s Office for the District of Nevada are prosecuting the case.     

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A Russian national made his initial appearance in federal court Monday for his role in a conspiracy to recruit an employee of a company to introduce malicious software into the company’s computer network, extract data from the network, and extort ransom money from the company.

Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Field Office made the announcement.

Egor Igorevich Kriuchkov, 27, a citizen of Russia, was charged in a complaint with one count of conspiracy to intentionally cause damage to a protected computer.  He was arrested on Aug. 22, 2020, in Los Angeles and had his initial appearance before U.S. Magistrate Judge Alexander F. MacKinnon in U.S. District Court in Los Angeles, California, who ordered Kriuchkov detained pending trial.

According to the complaint and statements made in court, from about July 15, 2020 to about Aug. 22, 2020, Kriuchkov conspired with associates to recruit an employee of a company to introduce malware – i.e., malicious software programs designed to damage or do other unwanted actions on a computer system – into the company’s computer network.  The malware would supposedly provide Kriuchkov and his co-conspirators with access to the company’s system. After the malware was introduced, Kriuchkov and his co-conspirators would extract data from the network and then threaten to make the information public, unless the company paid their ransom demand.

Kriuchkov entered the United States using his Russian passport and a tourist visa.  He contacted and met with the employee numerous times to discuss the conspiracy.  Kriuchkov promised to pay the employee $1 million after the malware was introduced.  In furtherance of the conspiracy, Kriuchkov provided the employee with a burner phone, and instructed him to leave the burner phone in airplane mode until after the money was transferred.

After being contacted by the FBI, Kriuchkov drove overnight from Reno, Nevada, to Los Angeles.  Kriuchkov asked an acquaintance to purchase an airline ticket for him in an attempt to fly out of the country.

The charges and allegations contained in a complaint are merely accusations.  The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The investigation was led by the FBI’s Las Vegas Field Office with assistance from the FBI’s Los Angeles Field Office; the FBI’s Sacramento Field Office; the Washoe County Sheriff’s Office; and the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS). Assistant U.S. Attorney Richard Casper and C.S. Heath, Senior Counsel of CCIPS, are prosecuting the case.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

RENO, Nev. — A Russian national made his initial appearance in federal court yesterday for his role in a conspiracy to recruit an employee of a company to introduce malicious software into the company’s computer network, extract data from the network, and extort ransom money from the company, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI.

“As Nevada’s economy diversifies and evolves into a center for technological innovation, our office will continue to prioritize protecting trade secrets and other confidential information belonging to U.S. businesses,” said U.S. Attorney Trutanich. “Working with our law enforcement partners, we are committed to holding accountable anyone who plots to use malicious cyber tactics to harm American consumers and companies.”

“In this matter, the FBI was once again able to intervene before any damage could occur,” said Special Agent in Charge Rouse. “We will continue to aggressively pursue any person or entity that attempts to inflict damage to American business or enterprise, no matter who or where.”

Egor Igorevich Kriuchkov, 27, a citizen of Russia, was charged in a

complaint  with one count of conspiracy to intentionally cause damage to a protected computer. He was arrested on August 22, 2020, in Los Angeles and had his initial appearance before U.S. Magistrate Judge Alexander F. MacKinnon in U.S. District Court in Los Angeles, who ordered Kriuchkov detained pending trial.

According to the complaint and statements made in court, from about July 15, 2020 to about August 22, 2020, Kriuchkov conspired with associates to recruit an employee of a company to introduce malware — i.e., malicious software programs designed to damage or do other unwanted actions on a computer system — into the company’s computer network. The malware would supposedly provide Kriuchkov and his co-conspirators with access to the company’s system. After the malware was introduced, Kriuchkov and his co-conspirators would extract data from the network and then threaten to make the information public, unless the company paid their ransom demand.

Kriuchkov entered the United States using his Russian passport and a tourist visa. He contacted and met with the employee numerous times to discuss the conspiracy. Kriuchkov promised to pay the employee $1 million dollars after the malware was introduced. In furtherance of the conspiracy, Kriuchkov provided the employee with a burner phone, and instructed him to leave the burner phone in airplane mode until after the money was transferred.

After being contacted by the FBI, Kriuchkov drove overnight from Reno to Los Angeles. Kriuchkov asked an acquaintance to purchase an airline ticket for him in an attempt to fly out of the country.

Kriuchkov faces a statutory maximum sentence of five years in prison and a $250,000 fine. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes only.

A criminal complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt. The defendant is presumed innocent unless and until proven guilty in a court of law. 

The investigation was led by the FBI’s Las Vegas Field Office with assistance by the FBI Los Angeles Field Office; the FBI Sacramento Field Office; the Washoe County Sheriff’s Office; and the Criminal Division’s Computer Crimes and Intellectual Property Section (CCIPS). Assistant U.S. Attorney Richard Casper and Candina Heath, Senior Counsel of CCIPS, are prosecuting the case.

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LAS VEGAS, Nev. — Tanoo Senethavilay, 37, of Las Vegas, Nevada was sentenced today by Chief U.S. District Judge Miranda Du to four years and nine months in prison, to be followed by three years of supervised release, for conspiracy to distribute fentanyl — a powerful synthetic opioid — in Las Vegas, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI.

Senethavilay pleaded guilty on December 18, 2019, to conspiracy to distribute a controlled substance. Following today’s hearing, Senethavilay was remanded to the custody of the U.S. Marshals Service.

According to court documents, from August 2017 to September 2017, Senethavilay conspired to and did distribute 208 grams (approximately a half-pound) of fentanyl in exchange for cash. He has prior convictions for robbery, felon in possession of a firearm, attempted grand larceny, unlawful carry of a concealed weapon, and driving under the influence of alcohol.

Fentanyl is a synthetic opioid that is 80-100 times stronger than morphine, and is commonly added to heroin to increase its potency. Street names include “China Girl,” “King Ivory,” and “Murder 8.” Fentanyl poses a high risk of death not only to users, but also to law enforcement since the drug may be ingested, inhaled, or absorbed through the skin. A few milligrams, which is equivalent to a few grains of table salt, may be deadly. Users may believe that they are purchasing heroin without knowing that they are actually purchasing fentanyl – which often results in overdose deaths. 

The charges resulted from a joint investigation by the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Nevada Gaming Control Board.

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RENO, Nev. — A Reno resident made his initial appearance in federal court today before U.S. Magistrate Judge William G. Cobb on a charge for using a U.S. passport that was obtained by making a false statement, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Matthew J. Perlman of the U.S. Department of State’s Diplomatic Security Service (DSS), San Francisco Field Office.

On Thursday, August 20, a federal grand jury returned an indictment charging Ludy Will Dial Jr, aka “Russel Van Wyck” and “Russell Van Wyck,” 69, with one count of use of passport secured through a false statement. He was arrested yesterday. A jury trial has been scheduled before U.S. District Judge Howard D. McKibben on October 19, 2020.

According to the indictment, on or about July 8, 2015, Dial Jr. used a U.S. passport that was issued due to a false statement made in the application. Specifically, the application stated that the person in the passport photo was named Russel Van Wyck, when in fact the person was Dial Jr. In addition, Dial Jr. used that passport to obtain a Nevada Driver’s License.

Dial Jr. faces a statutory maximum sentence of 10 years in prison and a $250,000 fine, as well as a period of supervised release, restitution, and monetary penalties.

An indictment merely alleges that a crime has been committed. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

This case is the product of an investigation by DSS. Assistant U.S. Attorney Peter Walkingshaw is prosecuting the case.

If you are aware of fraud associated with a U.S. passport, please email PassportVisaFraud@state.gov or contact your nearest DSS field office.

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RENO, Nev. – Eric Romero-Lobato, 39, was sentenced today by U.S. District Judge Larry R. Hicks to a total of 26 years and seven months in federal prison, to be followed by five years of supervised release, for committing two separate violent crimes involving firearms and being a felon in possession of a firearm, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

According to court documents and evidence presented at trials:

• On March 4, 2018, Romero-Lobato and another individual attempted to rob a restaurant in Sparks, Nevada, while customers were dining inside. During the attempted robbery, Romero-Lobato — who was armed with a 9mm semi-automatic pistol — fired a shot into the ceiling. On November 19, 2019, a jury found Romero-Lobato guilty of conspiracy to commit interference with commerce by robbery, attempted interference with commerce by robbery, discharge of a firearm during a crime of violence, and felon in possession of a firearm.
• On May 14, 2018, after the attempted robbery, Romero-Lobato pointed a pistol at a victim’s head during an armed carjacking in Reno, and stole the victim’s car, wallet, and phone. He attempted to flee from law enforcement and led the police on a high speed chase before wrecking the stolen car. When the police apprehended Romero-Lobato, they recovered a 9mm semi-automatic pistol, which forensic analysis determined was the same firearm discharged in the March 4 robbery attempt. In a separate trial, on July 11, 2019, a jury found Romero-Lobato guilty of carjacking, use of a firearm during and in relation to a crime of violence, and felon in possession of a firearm.

Romero-Lobato has a gross misdemeanor conviction for conspiracy to commit battery with a deadly weapon for stabbing a victim with a screwdriver, three felony convictions for unlawful reentry by a deported alien, and one felony conviction for eluding. As a convicted felon, he is prohibited from possessing a firearm.

The carjacking case was investigated by the Reno Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and prosecuted by Assistant U.S. Attorneys Megan Rachow and Steve Myhre. The attempted robbery case was investigated by the Sparks Police Department and the ATF; and prosecuted by Assistant U.S. Attorneys Megan Rachow and Penelope Brady.

These cases were brought as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.

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LAS VEGAS, Nev. — David Stephen Bangs II, 34, of Henderson, Nevada, was sentenced yesterday to six months in federal prison to be followed by one year of supervised release for stealing mail while employed as a contract mail carrier by the U.S. Postal Service, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge John D. Masters, Western Area Field Office, USPS Office of the Inspector General.

“Our office is proud to partner with the U.S. Postal Service to stop mail theft in our Nevada communities — including by holding accountable those who betray the public’s trust,” said U.S. Attorney Trutanich.

Special Agent in Charge Masters said, “The American public trusts that U.S. Postal Service employees will obey the law and honor the commitment to their duties. When that duty and trust is violated, the Postal Service Office of Inspector General (USPS OIG) investigates those matters. This sentencing sends a clear message that mail theft is a serious crime, which carries serious consequences. The USPS OIG, along the U.S. Attorney’s Office, remain committed to safeguarding the integrity of the U.S. Mail and ensuring the accountability and integrity of U.S. Postal Service employees.”

On February 4, 2020, Bangs pleaded guilty to one count of mail theft before U.S. District Judge Gloria M. Navarro, who sentenced him.

According to court documents, from April 1, 2018 to August 7, 2019, Bangs performed contract delivery services for the U.S. Postal Service. In June 2019, customers in one neighborhood complained about missing or opened mail to the USPS OIG. Bangs was identified as the letter carrier for that area. The USPS OIG conducted a test on his route, and Bangs was found to have stolen money from the test letter. During an interview, Bangs admitted that, between February 2019 and August 2019, he targeted customer mail that he believed contained cash. He admitted to stealing mail from at least 67 victims.

The charges resulted from an investigation by the USPS OIG. Special Assistant U.S. Attorney Jeremy Robbins and Assistant U.S. Attorney Jim Fang prosecuted the case.

To report violations, employee misconduct, fraud, waste, abuse of authority, or theft involving U.S. Postal Service employees and contractors, please contact the USPS OIG Hotline at https://www.uspsoig.gov/form/file-online-complaint.

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LAS VEGAS, Nev. — Edgar Marin-Melendrez, 29, a citizen of Mexico, and Misael Elias, 22, of Bell, California, made their initial appearances in federal court yesterday before U.S. Magistrate Judge Cam Ferenbach for allegedly possessing with the intent to distribute more than 60 pounds of methamphetamine, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Assistant Special Agent in Charge Daniel Neill of the Drug Enforcement Administration (DEA).

Marin-Melendrez and Elias were each charged in a criminal complaint with one count of conspiracy to distribute methamphetamine and one count of possession with intent to distribute methamphetamine. A preliminary hearing has been scheduled before U.S. Magistrate Judge Cam Ferenbach for September 1, 2020.

As alleged in the complaint, on August 14, 2020, Marin-Melendrez and Elias met a buyer in a parking lot in North Las Vegas, with the intent to sell more than 60 pounds of methamphetamine. Law enforcement apprehended Marin-Melendrez and Elias in the parking lot. The trunk of their vehicle contained approximately 28,000 grams (62 pounds) of methamphetamine in a suitcase.

Marin-Melendrez and Elias each face a statutory maximum sentence of life in prison and a $10,000,000 fine for each count. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes only.

A criminal complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt. Every defendant is presumed innocent unless and until proven guilty in a court of law. 

This case was the product of an investigation by the DEA.

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LAS VEGAS and PHILADELPHIA– United States Attorney for the District of Nevada Nicholas A. Trutanich and United States Attorney for the Eastern District of Pennsylvania William M. McSwain jointly announced that Catholic Charities of Southern Nevada (Catholic Charities) has agreed to pay $206,368.35 to resolve claims arising from its administration of community service grants funded through the Corporation for National and Community Service (CNCS).

From 2003 until 2018, Catholic Charities administered multiple grants in CNCS’s Senior Corps program. These grants included the Foster Grandparent Program, which places seniors in school and community settings to serve youth with exceptional needs, and the Senior Companion Program, which places seniors in community and residential settings to assist other seniors who have difficulty with tasks of daily living. These programs provide small hourly stipends to the volunteers performing these services.

The settlement resolves claims that in 2014 and 2015, Catholic Charities’ employees who oversaw the Foster Grandparent and Senior Companion programs falsified records for the stipend recipients. They also directed recipients to falsify records, leading to CNCS grant funds being used to pay stipends for hours that were never actually worked, were in violation of program requirements, or were inflated.

When Catholic Charities executive management discovered the fraudulent actions of its employees, it voluntarily disclosed them through the CNCS-OIG hotline. It terminated the employees who had perpetrated the fraud and cooperated fully in the United States’ investigation of its administration of these grants. In 2018, Catholic Charities relinquished the grants entirely.

“Each day, Catholic Charities of Southern Nevada feeds the hungry, provides shelter for the homeless, and supports families and seniors in need of assistance. The federal government relies on its non-profit partners to help ensure that federal grant funds are being used to assist their communities,” said U.S. Attorney Trutanich. “Today’s settlement is a reminder that everyone receiving federal grant funds must adhere to grant compliance requirements and self-report misuse of federal grant funds, as Catholic Charities of Southern Nevada did here.”

“Every federal grantee, including community service organizations, is required to honestly and openly report the service that its volunteers perform. Every dollar spent on an hour that was not actually served is one that is not available to support other community service efforts,” said U.S. Attorney McSwain. “Strict compliance with grant requirements ensures that federal funds reach those who need it most.” 

“Catholic Charities acted responsibly upon discovering fraud, promptly reported the misconduct, cooperated actively with the investigation and willingly made the taxpayers whole,” said CNCS’s Inspector General Deborah J. Jeffrey. “As a result, Catholic Charities was appropriately spared substantial penalties and fines. We thank our partners at the U.S. Attorney’s Offices in the Eastern District of Pennsylvania and Nevada for protecting the integrity of CNCS.”

United States Attorneys Trutanich and McSwain also praised Catholic Charities’ work in addressing the issues in these programs: “We commend Catholic Charities of Southern Nevada for promptly reporting these issues when they were discovered and for working with the Department of Justice and the Corporation for National and Community Service to make the government whole. We hope this settlement will serve as a message to other senior managers to be vigilant in overseeing government-funded programs and to ensure that their employees do not attempt to conceal any non-compliance. All organizations accepting federal funds should take their responsibility to the American taxpayers seriously to come forward promptly and cooperate fully if they discover that they have not lived up to their promises.”

This investigation was conducted jointly by the United States Attorney’s Offices for the District of Nevada and Eastern District of Pennsylvania with the Corporation for National and Community Service Office of Inspector General. Assistant United States Attorneys Troy Flake of the District of Nevada and Paul W. Kaufman and Veronica Finkelstein of the Eastern District of Pennsylvania handled the investigation and settlement. This case was initiated as a part of the U.S. Attorney’s Office for the Eastern District of Pennsylvania’s Affirmative Civil Enforcement Strike Force focus on grant fraud.

The claims resolved by the settlement are allegations only; there has been no determination of liability.

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LAS VEGAS, Nev. — Jose Alfredo Molina-Guerrero, 28, of Sinaloa, Mexico, was sentenced today by U.S. District Judge Jennifer A. Dorsey to 76 months in prison to be followed by three years of supervised release for possession with the intent to distribute methamphetamine and heroin from California to Las Vegas, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Assistant Special Agent in Charge Daniel Neill of the Drug Enforcement Administration (DEA).

Molina-Guerrero pleaded guilty on January 13, 2020, to one count of conspiracy to distribute a controlled substance and one count each of possession with intent to distribute heroin and to distribute methamphetamine.

According to court documents, Molina conspired with others to distribute heroin and methamphetamine from California to Las Vegas. On or about July 24, 2019, Molina brought approximately 20 pounds of methamphetamine and one kilogram of heroin to Las Vegas to sell to another individual. In the trunk of the vehicle in which Molina was a passenger, law enforcement found: (a) 20 bags each containing approximately one pound of methamphetamine; and (b) one package containing one kilogram of brown and black tar heroin.

The charges resulted from an investigation by the DEA. 

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RENO, Nev. — Three California men have pleaded guilty in federal court to possessing with the intent to distribute more than one pound of methamphetamine, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada.

Jesse Pina, 26, of Visalia, California; Daniel Mediano, 29, of Farmersville, California; and Nicholas Lucky Lozano, 19, of Farmersville, were charged by criminal complaint in June 2019.

•           Yesterday, Pina pleaded guilty to one count of possession with the intent to distribute 50 grams or more of methamphetamine.

•           Mediano pleaded guilty yesterday to one count of conspiracy to possess methamphetamine with the intent to distribute a controlled substance.

•           Today, Lozano pleaded guilty to one count of conspiracy to possess methamphetamine with the intent to distribute a controlled substance.

According to court documents and admissions that the defendants made in court, on or about June 19, 2019, Pina, Mediano, and Lozano were staying in a motel room in downtown Reno and conspired to possess with the intent to distribute methamphetamine. During the execution of a search warrant of the motel room, law enforcement recovered 595 grams (approximately 1.3 pounds) of methamphetamine, a scale, money from a drug sale conducted by Pina, and another $2,880 in cash.

Pina, Mediano, and Lozano are scheduled to be sentenced by Chief U.S. District Judge Miranda M. Du on November 16, 2020.

The maximum statutory penalties are: (a) life in prison and a $10,000,000 fine, for possession with intent to distribute methamphetamine and (b) 20 years in prison and a $1,000,000 fine, for conspiracy to possess methamphetamine with the intent to distribute a controlled substance. The sentencing of a defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Regional Crime Suppression Unit (which included, at the time of this investigation, the Reno Police Department and the Sparks Police Department). Assistant U.S. Attorneys Megan Rachow and Peter Walkingshaw are prosecuting the case.

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A Nevada woman was charged in a criminal complaint unsealed Wednesday with fraudulently seeking over $1 million in Paycheck Protection Program (PPP) loans, announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney Nicholas A. Trutanich of the U.S. Attorney’s Office for the District of Nevada.   

Karen Chapon, aka Karen Hannafious, 50, of Las Vegas, Nevada, was charged by criminal complaint in the District of Nevada with one count of bank fraud and one count of making false statements to a financial institution.  The complaint alleges that, in support of her six fraudulent loan applications, Chapon made numerous false and misleading statements about her companies’ respective business operations and payroll expenses, and falsely denied that she had been convicted of a felony in the past five years.   

The complaint also alleges that, in further support of the fraudulent loan applications, Chapon submitted fake and altered documents, including fraudulent federal tax filings.  For example, Chapon misrepresented to a lender that, in 2019, her company Heavenly Tahoe Properties paid several million dollars in employee wages.  In support of Chapon’s loan application, she submitted a fraudulent IRS filing that appeared to be Heavenly Tahoe Properties’ 2019 Form 940 federal unemployment tax return showing that the company paid nearly $2.5 million in employee wages that year.  In reality, the IRS has no record of the company filing any 2019 tax returns, and publicly available records show that the company’s Nevada corporate registration is no longer valid.     

The government has executed seizure warrants recovering the majority of the nearly $600,000 in PPP loan proceeds that Chapon obtained in her alleged fraud, including more than $500,000 from the bank account of one of her companies and a Mercedes Benz SUV.      

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29.  It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic.  One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP.  In April 2020, Congress authorized over $300 billion in additional PPP funding.

The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent.  Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities.  The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.

A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

This case was investigated by the FBI, the U.S. Treasury Inspector General for Tax Administration, and the Small Business Administration’s Office of Inspector General.  Trial Attorney Blake Goebel of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jessica Oliva of the District of Nevada are prosecuting the case.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

LAS VEGAS, Nev. – A Nevada woman was charged in a criminal complaint unsealed Wednesday with fraudulently seeking over $1 million in Paycheck Protection Program (PPP) loans, announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney Nicholas A. Trutanich of the U.S. Attorney’s Office for the District of Nevada.   

Karen Chapon, aka Karen Hannafious, 50, of Las Vegas, Nevada, was charged by criminal complaint in the District of Nevada with one count of bank fraud and one count of making false statements to a financial institution.  The complaint alleges that, in support of her six fraudulent loan applications, Chapon made numerous false and misleading statements about her companies’ respective business operations and payroll expenses, and falsely denied that she had been convicted of a felony in the past five years.   

The complaint also alleges that, in further support of the fraudulent loan applications, Chapon submitted fake and altered documents, including fraudulent federal tax filings.  For example, Chapon misrepresented to a lender that, in 2019, her company Heavenly Tahoe Properties paid several million dollars in employee wages.  In support of Chapon’s loan application, she submitted a fraudulent IRS filing that appeared to be Heavenly Tahoe Properties’ 2019 Form 940 federal unemployment tax return showing that the company paid nearly $2.5 million in employee wages that year.  In reality, the IRS has no record of the company filing any 2019 tax returns, and publicly available records show that the company’s Nevada corporate registration is no longer valid.     

The government has executed seizure warrants recovering the majority of the nearly $600,000 in PPP loan proceeds that Chapon obtained in her alleged fraud, including more than $500,000 from the bank account of one of her companies and a Mercedes Benz SUV.     

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29.  It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic.  One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP.  In April 2020, Congress authorized over $300 billion in additional PPP funding.

The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent.  Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities.  The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.

A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

This case was investigated by the FBI, the U.S. Treasury Inspector General for Tax Administration, and the Small Business Administration’s Office of Inspector General.  Trial Attorney Blake Goebel of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jessica Oliva of the District of Nevada are prosecuting the case.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

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LAS VEGAS, Nev. – A federal grand jury returned an indictment last week against five men for allegedly installing skimming devices on gas pumps in Nevada and Southern California to steal credit and debit card information from unsuspecting customers, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada, Special Agent in Charge Brian Spellacy of the U.S. Secret Service, and Sheriff Joseph Lombardo of the Las Vegas Metropolitan Police Department (LVMPD).

Five defendants, all of whom live in Las Vegas, face charges related to access device fraud, conspiracy, and aggravated identity theft: Juan Luis Sosa Tamayo, 31; Adrian Leyva Tamayo, 31; Dayner Manuel Alarcon Rodriguez, 22; Alen Boucourt Diaz, 39; and Francisco Rodriguez Gonzalez, 34.

According to allegations in the indictment, from about June 2018 to about June 2020, the defendants and their co-conspirators placed skimmers at gas pump terminals that compromised at least 2,500 credit and debit card numbers. The defendants traveled to gas stations in and around Las Vegas and Reno, Nevada, as well as to various cities in Southern California, to install the skimmers. They subsequently recoded the stolen account information and other personal data onto counterfeit cards. Then the defendants made multiple ATM withdrawals and purchases using the stolen credit and debit card account information obtained from the skimmers.

Sosa Tamayo, Leyva Tamayo, and Rodriguez Gonzalez made their initial appearances on August 7, 2020 in federal court before U.S. Magistrate Judge Daniel J. Albregts. Boucourt Diaz made his initial appearance on August 10, 2020, and Alarcon Rodriguez made his initial appearance on August 12, 2020 in federal court before U.S. Magistrate Judge Brenda Weksler.

The statutory maximum penalty for the conspiracy charge is 5 years in prison and a $250,000 maximum fine. The statutory maximum penalty is 10 years in prison and a $250,000 maximum fine for each count of use or possession of unauthorized or counterfeit access devices. The aggravated identity theft charges carry a mandatory penalty of two years in prison. In addition to imprisonment and fines, each defendant also faces a period of supervised release, restitution, and monetary penalties. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only.

An indictment merely alleges that crimes have been committed. Every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

This case is the product of an investigation by the U.S. Secret Service and the LVMPD. Assistant U.S. Attorney Jamie Mickelson is prosecuting the case.

If you are a victim of identity theft, you may make a report to the Federal Trade Commission (FTC) by calling 1-877-438-4338 or online at www.identitytheft.gov. For identity theft prevention tips and free resources visit www.ftc.gov/idtheft.

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LAS VEGAS, Nev. — Eight defendants, who are all Las Vegas residents indicted on June 30, 2020, have been arrested in connection with firearms and drug trafficking (in addition to other firearms offenses) as part of “Operation Nora,” announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada, Special Agent in Charge Patrick Gorman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Sheriff Joseph Lombardo of the Las Vegas Metropolitan Police Department (LVMPD).

“Operation Nora exemplifies the kind of impactful multi-defendant prosecutions that play a critical role in our office’s strategy to reduce violent crime in our communities,” said U.S. Attorney Trutanich. “We appreciate the opportunity to work with ATF and the Las Vegas Metropolitan Police Department to take drugs, ammo, and over two dozen guns off the streets through one investigation.”

“ATF is on the frontline in the fight against violent crime, particularly through the disruption and dismantling of firearms trafficking operations which are a large source and supply of crime guns to offenders,” said Special Agent in Charge Gorman. “Throughout Operation Nora, ATF worked side by side with our partners to fulfill ATF’s mission of protecting the public by investigating the criminal misuse and trafficking of firearms in Las Vegas. The trafficking of firearms to violent criminals, gangs and drug trafficking organizations presents a grave threat to public safety, and ATF remains dedicated to making this city a safer place.”

“This is a major win for law enforcement,” said Sheriff Joe Lombardo. “Metro will continue working hard to stop criminals from bringing drugs and violence into our neighborhoods. Because of multi-agency partnerships like this one, we are making it harder for violent criminals to do business.”

Operation Nora is a joint investigation by the ATF and the LVMPD, focusing on the Sherwood Forest and Naked City areas in Las Vegas. During the operation, ATF seized 30 guns, ammunition, over 50 grams of heroin, 117 grams of methamphetamine, 492 grams of cocaine, and 446 grams of crack cocaine.

According to the allegations in the indictments, the defendants sold a total of nearly 2.5 pounds of heroin, methamphetamine, cocaine, and crack cocaine. They also sold firearms without a license. Further, four of the defendants — Alexander Fitwi, Durrell Melchor, Prentice Moreland, and Antione Thomas — unlawfully possessed firearms, including numerous semi-automatic handguns and rifles, despite prior felony convictions that prohibited them from owning or possessing guns.

Below is a list of the arrested defendants and the criminal charges they face:

• Alexander Fitwi, 32, of Las Vegas, is charged with two counts of felon in possession of a firearm. As a result, Fitwi faces an aggregate statutory maximum penalty of 20 years imprisonment and a fine of not more than $500,000.
• Durrell Melchor, 33, of Nevada, is charged with one count of dealing in firearms without a license, two counts of felon in possession of a firearm, one count of conspiracy to distribute a controlled substance, and one count of distribution of a controlled substance. As a result, Melchor faces an aggregate statutory maximum penalty of 45 years imprisonment and a fine of not more than $1,750,000.
• Prentice Moreland, 55, of Las Vegas, is charged with two counts of distribution of a controlled substance-cocaine, four counts of distribution of a controlled substance-cocaine base, and one count of felon in possession of a firearm. As a result, Moreland faces an aggregate statutory maximum penalty of 210 years imprisonment and a fine of not more than $22,250,000.
• Ozzie Morrison, 33, of Las Vegas, is charged with one count of dealing in firearms without a license and two counts of distribution of a controlled substance-cocaine. As a result, Morrison faces a statutory maximum penalty of 45 years imprisonment and a fine of not more than $2,250,000.
• Antione Thomas, 47, of Las Vegas, is charged with one count of dealing in firearms without a license, four counts of felon in possession of a firearm, and one count of distribution of a controlled substance-crack cocaine. As a result, Thomas faces an aggregate statutory maximum penalty of 85 years imprisonment and a fine of not more than $6,250,000, with an aggregate statutory minimum penalty of five years imprisonment.
• Jose Wade, 37, of North Las Vegas, is charged with three counts of distribution of a controlled substance-cocaine. As a result, Wade faces an aggregate statutory maximum penalty of 60 years imprisonment and a fine of not more than $3,000,000.
• Brenton Williams, 38, of Nevada, is charged with one count of conspiracy to distribute a controlled substance and one count of distribution of a controlled substance-cocaine. As a result, Williams faces an aggregate statutory maximum penalty of 20 years imprisonment and a fine of not more than $1,000,000.
• Jessica Williams 28, of Las Vegas, is charged with one count of distribution of a controlled substance-methamphetamine and three counts of distribution of a controlled substance-crack cocaine. As a result, Williams faces an aggregate statutory maximum penalty of life imprisonment and a fine of not more than $17,000,000, with an aggregate statutory minimum penalty of 15 years imprisonment.

The minimum and maximum statutory sentences are prescribed by Congress and are provided here for informational purposes only. The sentencing of a defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

An indictment merely alleges that crimes have been committed. Every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

This case is the product of an investigation by the ATF and LVMPD. Assistant U.S. Attorneys Allison Reese, Brett Ruff, and Melanee Smith are prosecuting the cases.

Operation Nora was conducted as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.

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LAS VEGAS, Nev. —Two Las Vegas residents made their initial court appearance on Friday, August 7, 2020, on charges for allegedly stealing explosive materials from a mining company in Las Vegas, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

A federal grand jury returned an indictment on July 29, 2020, charging Sergio Bautista, aka “Ismael Cuevas-Flores,” 34, and Eric Golden, 54, each with one count of conspiracy to steal explosive materials; one count of theft of explosive materials moved in interstate commerce; one count of theft of explosive materials from licensee or permittee; one count of felon in possession of explosives; and one count of possession of stolen explosives. A jury trial has been scheduled before U.S. District Judge James C. Mahan on September 28, 2020.

According to the indictment, from about May 12 to May 13, 2020, Bautista and Golden conspired to steal and did steal a 50 pound bag of ammonium nitrate fuel oil (an industrial explosive) and 18 one-kilogram sticks of ammonium nitrate from Hinton Mining LLC.

Both Bautista and Golden are convicted felons. Bautista’s prior felony convictions include possession of a controlled substance with intent to distribute, identity theft, forgery, and unlawful possession of a controlled substance. Golden’s prior felony convictions include trafficking in a controlled substance, unlawful possession of a controlled substance, and conspiracy to commit grand larceny.

The statutory maximum sentence for each count of the indictment is 10 years in prison and a $250,000 fine, a period of supervised release, restitution, and monetary penalties.

An indictment merely alleges that crimes have been committed. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

This case is the product of an investigation by the Las Vegas Metropolitan Police Department and ATF. Assistant U.S. Attorney Stephanie Ihler is prosecuting the case.

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LAS VEGAS, Nev. — Ethan Erhardt, 37, of Las Vegas, pleaded guilty in federal court today to making a straw purchase of ten semi-automatic rifles, announced United States Attorney Nicholas A. Trutanich for the District of Nevada.

According to court documents, on February 16, 2019, Erhardt straw purchased firearms from a Federal Firearms Licensee (FFL) in Henderson, Nevada, for another individual. He purchased ten semi-automatic rifles for approximately $88,000, using money obtained from the individual. At the time of purchase, Erhardt completed a Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) form representing that he was the actual buyer of the firearms, despite knowing that he would be providing the firearms to the other individual.

This case was the product of an investigation by the ATF. Assistant U.S. Attorney Daniel Clarkson is prosecuting the case.

Erhardt is scheduled to be sentenced by U.S. District Judge James C. Mahan on November 13, 2020. The maximum statutory penalty for the illegal acquisition of a firearm is ten years in prison and a $250,000 fine. The sentencing of a defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the ATF when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.

For more information about Project Guardian, visit https://www.justice.gov/opa/pr/attorney-general-william-p-barr-announces-launch-project-guardian-nationwide-strategic-plan.

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LAS VEGAS, Nev. — Two men and two women pleaded guilty on Thursday for their roles in a conspiracy to distribute methamphetamine and counterfeit Oxycodone pills laced with fentanyl, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Assistant Special Agent in Charge Daniel Neill of the Drug Enforcement Administration (DEA).

Esperanza Sanabia-Araujo (61), Marla Mariscal-Sanabia (31), Armando Mariscal (62), and Fernando Bueno (29), all of Las Vegas, each pleaded guilty to one count of conspiracy to distribute a controlled substance before U.S. District Judge Gloria Navarro. Sentencing hearings are scheduled for December 16, 2020.

According to court documents, on October 2, 2019, law enforcement arrested Sanabia-Araujo, Mariscal-Sanabia, Mariscal, and Bueno during a delivery of 50 pounds of methamphetamine and 5,000 counterfeit Oxycodone pills laced with fentanyl. Law enforcement also recovered a firearm from the vehicle that the defendants used to deliver the drugs.

The mandatory minimum faced by each defendant is 10 years in prison, and the maximum statutory penalty is up to life in prison and a $10,000,000 fine. The sentencing of a defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

In addition to Sanabia-Araujo, Mariscal-Sanabia, Mariscal, and Bueno, four other individuals were each charged in the indictment, which was returned on October 2, 2019, by a federal grand jury: Victor Araujo, Reynaldo Sanabia-Araujo, and Renzo Mariscal-Sanabia. They are considered fugitives and a warrant remains outstanding for their arrests. Anyone with information as to their whereabouts is asked to contact your local law enforcement office. An indictment merely alleges that crimes have been committed. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

This case was the product of an investigation by the DEA.

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LAS VEGAS, Nev. – U.S. Attorney Nicholas A. Trutanich for the District of Nevada announced today that the Department of Justice — through the Office of Justice Programs (OJP), Office of Violence Against Women (OVW), and the Bureau of Justice Assistance (BJA) is awarding nearly $7 million in grant funding and award opportunities to assist law enforcement agencies, tribes, victims of domestic violence, and local and state government within Nevada, as part of its efforts to curb domestic and sexual violence across the country.

Domestic violence continues to be a scourge in Nevada communities, and has long lasting effects not only on victims of domestic violence, but also on their families and friends. The grant awards announced today are being launched as “Project Veronica,” in honor of a local victim of domestic violence named Veronica Caldwell. In 2015, Veronica lost her life at the hands of her husband, who also shot and killed Veronica’s daughter Yvonne and her daughter’s boyfriend.

Veronica’s mother, Rose Floyd, expressed gratitude for the initiative and said: “My family is honored that the Department of Justice and our Nevada communities will be keeping my daughter’s name in their hearts. Veronica would be proud to know that her legacy will live on through a project that aims to save families from the senseless pain suffered at the hands of domestic violence.”

“The recent increase in domestic violence homicides in Nevada is alarming,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “The Office of Justice Programs supports efforts by assisting state and local law enforcement and prosecutors in collaborating with U.S. Attorney Nick Trutanich’s office to help hold domestic violence offenders accountable and assist the victims of these crimes. We continue to applaud this Administration's determination to combat all violent crime.”

“We recognize that the increase in domestic violence as a result of the COVID-19 pandemic creates an urgent situation,” says Laura L. Rogers, Principal Deputy Director of OVW. “This funding will help support the victims of domestic violence, keep survivors safe, and provide resources for victim advocates.”

“This initiative funds domestic violence service providers and law enforcement throughout our state at a critical time,” said U.S. Attorney Trutanich. “Together, our combined efforts will prevent and deter domestic violence, and save lives. For our part, with the help of these new resources, our office looks forward to working closely with our local, state, and federal partners to make a renewed push to prosecute domestic violence offenders who illegally possess guns.”

“While staying at home may keep Nevadans safe from the pandemic, for many domestic violence victims, staying at home can be dangerous and has resulted in more calls for help,” said Nevada Attorney General Aaron D. Ford. “I’m grateful to the Department of Justice for providing funding so that my office can help protect our victims and their families, and provide much needed additional services.”

“When multiple agencies coordinate efforts to combat a known problem, our success is exponential. The partnership between my office, the U.S. Attorney, the Nevada Attorney General, and multiple non-profits shows our commitment to protecting victims of Domestic Violence and gun violence, and aggressively prosecuting offenders. Additional financial resources provided by these federal grants helps to ensure our success,” said Clark County District Attorney Steve Wolfson.

“Our pledge to protect the public is one ATF takes very seriously,” said Special Agent in Charge Patrick Gorman, San Francisco Field Division. “Our special agents are working hard to prevent those individuals who are prohibited from possessing firearms. This includes investigating those who illegally possess a firearm after being convicted of a misdemeanor crime of domestic violence or who are subject to a domestic violence protective order. Since the start of the COVID-19 pandemic, there has been a troubling increase in domestic violence cases. To combat this unacceptable trend, ATF has been working side by side with our prosecutorial and law enforcement partners to achieve a maximum impact with the investigation and prosecution of those domestic violence offenders who illegally possess firearms. It is critically important to prevent these abusers from having access to firearms and to reduce the threat of gun violence in our communities.”

Over the past few years, victim service providers and law enforcement agencies throughout Nevada have worked hard to help victims and hold abusers accountable. Domestic violence, however, remains a significant issue. For example, Nevada ranks among the highest in the country for the rate of women murdered by men. And in Southern Nevada, about one-fourth of all murders stem from domestic violence and disputes.

Offenders who have committed domestic violence pose a particularly high risk of murdering their partners. Accordingly, federal law prohibits individuals subject to certain domestic violence protective orders and those who have been convicted of domestic violence misdemeanors — and convicted felons — from possessing firearms. Research indicates that an abuser with a firearm at home is five times more likely to kill her or his partner, compared to an abuser who does not have the same access to a firearm.

Against this backdrop, to help reduce domestic violence in Nevada, the Department of Justice is providing the following grant awards and targeted invitations to strengthen services and resources for victims, as well as to prosecute abusers for both violence and gun crimes:

Grant Award Opportunities

·$600,000 from BJA, made available to the Clark County District Attorney’s Office; Initiative with U.S. Attorney’s Office to Prosecute Gun Crimes

o   The Clark County District Attorney’s Office is receiving a targeted invitation to apply for up to three years of funding (for up to $600,000), to help prosecute domestic violence-related gun crimes.

·$300,000 from OVW to enhance relationships between law enforcement and a community-based victim service provider.

·Total: $900,000

Statewide Initiatives

·$1,704,832 from OVW to the Nevada Office of the Attorney General; STOP (Services, Training, Officers, Prosecutors) Violence Against Women

o   The STOP program’s goal is to develop and strengthen law enforcement, prosecution, victim services, and court strategies to combat violent crimes against women, including community-based, culturally specific services, in cases involving domestic violence, dating violence, sexual assault, and stalking.

·$416,734 from OVW to the Nevada Office of the Attorney General; Sexual Assault Services Program

o   The Sexual Assault Services Program directs grant dollars to states and territories to assist them in supporting rape crisis centers and nonprofit, nongovernmental organizations that provide core services, direct intervention, and related assistance to victims of sexual assault.

·$243,619 from OVW to the Nevada Coalition to End Domestic and Sexual Violence; Support for Domestic Violence and Sexual Assault Victims

o   This grant program helps the Nevada Coalition to End Domestic and Sexual Violence provide support to rape crisis centers, domestic violence shelters, and other domestic violence victim services programs.

·Total: $2,365,185

Tribal Communities

·$663,004 from OVW to the Yerington Paiute Tribe; Tribal Governments Program

o   With this funding, in collaboration with the Nevada Coalition to End Domestic and Sexual Violence, the Yerington Paiute Tribe Victim Services Program will, among other things, support a violence prevention advocate and a victim services advocate who will provide legal advocacy and emergency services for primary and secondary victims of domestic violence, stalking, and sexual assault.

·$325,212 from OVW to the Shoshone-Paiute Tribes of the Duck Valley Indian Reservation; Tribal Sexual Assault Services Program

o   This award will enable the Shoshone-Paiute Tribes to expand their Tribal Sexual Assault Services Program, such as increasing advocate staff hours and the availability of services for victims.

·Total: $988,216

Nevada’s Rural Communities

·$748,154 from OVW to the Douglas County District Attorney’s Office; Rural Domestic Violence, Sexual Assault, Dating Violence & Stalking Program

o   With this award, the Douglas County Special Victims Response Team will enhance its ability to provide timely and thorough investigations of reported incidents of domestic violence, dating violence, sexual assault and stalking.

·$277,500 to No to Abuse – Nevada Outreach Training Organization; Transitional Housing

o   This award will help No to Abuse provide both housing and supportive services to move survivors of domestic violence, dating violence, sexual assault, and stalking who are homeless to permanent housing. Additional services may include job training, education attainment, and safety planning.

·Total: $1,025,654

Nationwide Initiative

·$1,550,000 from OVW to the National Council of Juvenile and Family Court Judges; Training & Technical Assistance

o   These funds will, among other things, help build the capacity of the criminal and civil justice systems within Nevada and elsewhere to respond effectively to domestic violence, dating violence, sexual assault, and stalking and to foster partnerships between organizations that have not traditionally worked together to address violence against women.

·Total: $1,550,000

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The Office of Justice Programs provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP and its components can be found at: www.ojp.gov.

The Office on Violence Against Women provides federal leadership in developing the national capacity to reduce violence against women and administer justice for and strengthen services to victims of domestic violence, dating violence, sexual assault, and stalking.

Anyone affected by abuse and wishes to seek support should please call the National Domestic Violence Hotline at 1-800-799-SAFE (7233) or text LOVEIS to 22522.

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LAS VEGAS, Nev. – U.S. Attorney Nicholas A. Trutanich of the District of Nevada announced today that the state of Nevada received a total of $998,714 from the Department of Justice’s Office of Justice Programs and its component, the Office for Victims of Crime, to provide safe, stable housing and appropriate services to victims of human trafficking.

“Human trafficking is a barbaric criminal enterprise that subjects its victims to unspeakable cruelty and deprives them of the most basic of human needs, none more essential than a safe place to live,” said Attorney General William P. Barr. “Throughout this Administration, the Department of Justice has fought aggressively to bring human traffickers to justice and to deliver critical aid to trafficking survivors. These new resources, announced today, expand on our efforts to offer those who have suffered the shelter and support they need to begin a new and better life.”

“The District of Nevada greatly appreciates the support from the Department of Justice’s Office of Justice Programs to help survivors in Nevada,” said U.S. Attorney Trutanich. “These grant awards will assist trafficking victims in our communities with, among other things, finding housing and employment.”

The grants, awarded to the Rite of Passage Adolescent Treatment Centers and Schools, Inc. and Hookers for Jesus, Inc., will provide six to 24 months of transitional or short-term housing assistance for trafficking victims, including rental, utilities or related expenses, such as security deposits and relocation costs. The grants will also provide funding for support needed to help victims locate permanent housing, secure employment, as well as occupational training and counseling. These recipients are among 73 organizations receiving more than $35 million in OVC grants to support housing services for human trafficking survivors.

“Human traffickers dangle the threat of homelessness over those they have entrapped, playing a ruthless game of psychological manipulation that victims are never in a position to win,” said OJP Principal Deputy Assistant Attorney General Kathrine T. Sullivan. “These grants will empower survivors on their path to independence and a life of self-sufficiency and hope.”

Human trafficking offenses are among the most difficult crimes to identify, and the scope of human trafficking victimization may be much greater than the limited data reflect. A new report issued by the National Institute of Justice, another component of the Office of Justice Programs, found that the number of human trafficking cases captured in police reports may represent only a fraction of all such cases. Expanding housing and other services to trafficking victims remains a top Justice Department priority.

The Office for Victims of Crime, for example, hosted listening sessions and roundtable discussions with stakeholders in the field in 2018 and launched the Human Trafficking Capacity Building Center. From July 2018 through June 2019, 118 OVC human trafficking grantees reported serving 8,375 total clients including confirmed trafficking victims and individuals showing strong indicators of trafficking victimization.

For a complete list of individual award amounts and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/htvictimsfactheet.pdf

                                                                  *******

The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.

The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

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LAS VEGAS, Nev. — Rigoberto Calderon-Molina, 40, of Earlimart, California, pleaded guilty Monday to possession with the intent to distribute nearly 2.9 pounds Fentanyl, a deadly synthetic opioid, announced United States Attorney Nicholas A. Trutanich for the District of Nevada and Assistant Special Agent in Charge Daniel Neill of the Drug Enforcement Administration (DEA).

Calderon-Molina was indicted by a federal grand jury in May 2018. A sentencing hearing has been scheduled before U.S. District Judge Jennifer Dorsey on November 16, 2020.

According to court documents, on April 25, 2018, Calderon-Molina met an individual in a North Las Vegas parking lot to sell 1.3 kilograms (nearly 2.9 pounds) of Fentanyl, which is a Schedule II controlled substance. Law enforcement arrested Calderon-Molina and seized approximately 13,000 Fentanyl pills.

Fentanyl is a synthetic opioid drug that is approximately 80-100 times more potent than morphine, and is commonly added to heroin to increase its potency. Fentanyl poses a high risk of death not only to users, but also to law enforcement since the drug may be ingested, inhaled, or absorbed through the skin. A few milligrams, which is equivalent to a few grains of table salt, may be deadly. Users may believe that they are purchasing heroin without knowing that they are actually purchasing Fentanyl – which often results in overdose deaths.

Calderon-Molina faces a maximum statutory penalty of 20 years in prison and a $1,000,000 fine. The sentencing of a defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

This case was the product of an investigation by the DEA.

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LAS VEGAS, Nev. – A Las Vegas resident was arrested on Friday, July 31, 2020, on charges related to identity theft and possession of fraudulent unemployment benefits cards, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada, Sheriff Joseph Lombardo of the Las Vegas Metropolitan Police Department, and Special Agent in Charge Brian Spellacy of the U.S. Secret Service.

“Fraud against the Department of Employment, Training and Rehabilitation (DETR) is widespread in Nevada’s unemployment benefits system,” said U.S. Attorney Trutanich. “While the State begins to address vulnerabilities in its application and payment system, our office will continue working closely with our partners to prevent important federal resources from enriching fraudsters. This case is likely just the proverbial ‘tip of the iceberg’: we will track down and prosecute scammers who fraudulently obtain federal unemployment benefits.” 

“The U.S. Secret Service and our law enforcement partners will continue to work with financial institutions and the state unemployment offices to pursue investigative leads associated with state unemployment identity theft,” said Special Agent in Charge Spellacy. “The U.S. Secret Service’s primary investigative priorities are to mitigate any attempt by criminals that target citizens for identity theft and cyber-enabled crimes as it relates to COVID-19.”

DETR is the agency that administers Nevada’s unemployment insurance program, which is designed to provide benefits to eligible workers who become unemployed through no fault on their own. DETR provides unemployment benefits to qualified applicants on debit cards.

Vincent Okoye, 38, of Las Vegas, was charged by criminal complaint with one count of possession of a counterfeit and unauthorized access device and one count of aggravated identity theft. Okoye’s initial court appearance in federal court has not yet been scheduled.

The complaint alleges that, on July 15, 2020, law enforcement executed a search warrant at Okoye’s residence in Las Vegas. They found:

• Over 100 credit and debit cards not issued in Okoye’s name, including at least 11 debit cards issued by DETR and at least 12 debit cards issued by Arizona’s Department of Economic Security (DES). DES administers the unemployment insurance program for Arizona.

            Law enforcement found one of those DETR debit cards in Okoye’s wallet, which is pictured below:

• Over $100,000 in U.S. Currency and U.S. Money Orders.
• At least 24 pieces of mail from DETR, bearing various names and addresses.
• Over 100 pieces of mail, bearing names and addresses not belonging to Okoye.
• A forged Canadian passport.
• Postal mailbox master keys.

The minimum statutory penalty for aggravated identity theft is two years in prison and the maximum statutory penalty for all counts charged in the Complaint is 12 years in prison and a $250,000 fine. The minimum and maximum statutory sentences are prescribed by Congress and are provided here for informational purposes only.

A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

The case was investigated by the Las Vegas Metropolitan Police Department and U.S. Secret Service. Assistant U.S. Attorney Jim Fang is prosecuting the case.

Individuals who believe that someone is fraudulently using their identity, as well as companies who believe that someone is fraudulently using the identity of their employees, to apply for unemployment benefits should file a complaint through the FBI’s Internet Crime Complaint Center (IC3) at www.ic3.gov and to DETR’s Fraud Report at https://detr.nv.gov/Page/DETR_Unemployment_Insurance_Fraud_Reporting_Form.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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LAS VEGAS, Nev. – Stephen Thomas Parshall, aka “Kiwi,” 35, of Las Vegas — who was charged last month with violations of federal and state law for conspiracy to cause destruction during protests in Las Vegas, and possession of an unregistered destructive device (specifically, an improvised incendiary device commonly known as a Molotov cocktail) — was charged earlier today by a separate criminal complaint with one count of sexual exploitation of children, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada, Special Agent in Charge Aaron C. Rouse of the FBI, and Sheriff Joseph Lombardo of the Las Vegas Metropolitan Police Department. Parshall’s initial appearance in federal court on the new criminal complaint has not yet been scheduled.

According to court documents, Parshall was arrested on May 30, 2020. Law enforcement had learned of Parshall’s alleged participation in a conspiracy to cause destruction during protests that evening in Las Vegas, and of his alleged membership in the “Boogaloo” movement, a term used by extremists to signify a coming civil war and/or collapse of society. When law enforcement officers executed search warrants after the arrest, they located 10 images of child pornography, as well as numerous images of child erotica, on Parshall’s cellular phone

The minimum statutory penalty for the offense of sexual exploitation of children is 15 years in prison, and the maximum statutory penalty is 30 years in prison and a $250,000 fine. The minimum and maximum statutory sentences are prescribed by Congress and are provided here for informational purposes only.

A criminal complaint is merely an allegation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

The case was investigated by the FBI and Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Bianca Pucci is prosecuting the case.

If you have information regarding possible child sexual exploitation, please make a report to the National Center for Missing and Exploited Children by calling the 24-hour hotline at 1-800-THE-LOST (1-800-843-5678) or by making a report at www.cybertipline.com.

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 U.S. Attorney’s Offices and the Department of Justice’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.justice.gov/psc.

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RENO, Nev. — Martane H. Wade, 39, of Las Vegas, was sentenced today by Chief U.S. District Judge Miranda M. Du to ten years in prison, to be followed by five years of supervised release, for possession with intent to distribute 500 or more grams of methamphetamine and for being a felon in possession of a firearm, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Assistant Special Agent in Charge Daniel Neill of the Drug Enforcement Administration (DEA).

Wade, a five-time convicted felon, pleaded guilty in August 2019 to one count of possession with intent to distribute 500 or more grams of methamphetamine and one count of being a felon in possession of a firearm. He was remanded to the custody of the U.S. Marshals Service following today’s sentencing hearing.

According to court documents, on May 3, 2018, law enforcement attempted to conduct a traffic stop of the vehicle Wade was driving. Wade attempted to escape by driving off, but was unsuccessful. He and a passenger were taken into custody.

During the execution of a search warrant, law enforcement found approximately two pounds of crystal methamphetamine in a purse inside the vehicle. Further, in a search of an apartment for Wade and the passenger, law enforcement found heroin, cocaine, crack cocaine, packing materials, scales, a money counter, and two firearms: a Walther PPK 9mm semi-automatic pistol and a Colt .25 caliber semi-automatic pistol. Wade has prior felony convictions in Nevada and California, including possession with intent to sell cocaine, possession with intent to sell methamphetamine, trafficking in cocaine, and prohibited person in possession of a firearm.

The charges resulted from an investigation by the DEA.

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LAS VEGAS, Nev. – Nevada’s COVID-19 Task Force, formed by U.S. Attorney Nicholas A. Trutanich and Attorney General Aaron D. Ford, has recently received reports suggesting that personal identifying information of some present and past Nevada residents is being used to file fraudulent applications for unemployment benefits.

Potential victims typically learn of these suspected unlawful activities when either they receive a letter from the Nevada Department of Employment, Training and Rehabilitation (DETR) relating to an application for benefits they never sought, and/or their employer receives a similar notification from DETR.

“The COVID-19 Task Force is committed to protecting the integrity of the unemployment benefits program,” said U.S. Attorney Nicholas A. Trutanich. “We will continue working closely with our law enforcement partners and colleagues on the Task Force to safeguard the program for Nevadans facing difficult situations who need our help.”

“This Task Force was formed to fight fraud and prosecute those using COVID-19 for their own financial gain,” said Attorney General Aaron D. Ford. “Thousands of Nevadans have lost their jobs and are facing extreme financial hardship. I urge Nevadans affected by or with information about fraudulent unemployment applications to file a complaint with the FBI’s Internet Crime Complaint Center and DETR.”   ​

Individuals who believe that someone is fraudulently using their identity to apply for unemployment benefits should file a complaint through the FBI’s Internet Crime Complaint Center (IC3) at www.ic3.gov and to DETR’s Fraud Report. Nevada’s COVID-19 Task Force is working with DETR to assess the problem. Due to the fact that the investigation is ongoing, no further information about the details of the investigation will be provided at this time.

In April 2020, U.S. Attorney Nicholas A. Trutanich and Nevada Attorney General Aaron D. Ford announced the formation of Nevada’s COVID-19 Task Force. The Task Force is comprised of local, state and federal investigators and prosecutors with significant experience in handling complaints and cases related to general fraud, heath care fraud, Medicaid fraud, insurance fraud, workers’ compensation fraud and cybercrime, among others. Together, they have been sharing information and resources to protect Nevadans from those using the COVID-19 pandemic to take advantage of consumers.

The following are some tips to protect yourself against unemployment scams and identity theft:  

• Never give out personal or financial information over the phone.
• Thoroughly review all financial statements for any unusual activity. Immediately contact the company if an item looks suspicious.
• Shred or destroy credit card statements, bills, insurance papers or bank statements before throwing them out.
• Do not carry your Social Security Card in your wallet.
• Be wary of anyone calling to “confirm” personal or financial information. Often, these are criminals trying to obtain those facts under the guise of “confirmation”.
• Release your Social Security number only when absolutely necessary or when required by law.
• Ask how you can remove unnecessary information or information that is not required for the service you are receiving.
• Check credit reports, banking information, medical information that may have details that need to be removed or secured.
• Do not provide or validate your personal information from contacts not initiated by you.
• Protect and update passwords to your online accounts regularly.
• When creating passwords and PINS, do not use anything that could be discovered easily by thieves.
• Memorize all your passwords and PINS. 
• Remove old accounts and passwords that are no longer in use. 
• Use additional security measures provided for your accounts wherever available.
• Contact your local police department if you think your identity has been stolen.
• If you think an identity thief is using your Social Security number, call the Social Security Fraud Hotline at (800) 269-0271. 

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LAS VEGAS, Nev. — Pedro Morales-Carrillo, 32, a native and citizen of Mexico who has twice been convicted of drug trafficking in Nevada, was sentenced today by U.S. District Judge Kent J. Dawson to seven years and three months in prison to be followed by three years of supervised release for illegal reentry into the United States, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

Morales-Carrillo, known by law enforcement to use at least four aliases, pleaded guilty in March 2020 to one count of being a deported alien found in the United States. Following today’s sentencing hearing, he was remanded to the custody of the U.S. Marshals Service.

According to court documents and admissions that Morales-Carrillo made in court, in February 2009 and October 2010, Morales-Carrillo was deported from the United States to Mexico. In October 2010, he unlawfully reentered the United States and remained in the country until he was found and detained in June 2017. Morales-Carrillo has prior felony convictions in Clark County for trafficking in a controlled substance (methamphetamine), conspiracy to violate the Controlled Substance Act, trafficking in a controlled substance (cocaine and methamphetamine), and in Arizona for being a deported alien found in the United States.

The charges resulted from an investigation by the U.S. Immigration Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Kimberly Frayn prosecuted the case.

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LAS VEGAS, Nev. – A 21-count indictment was unsealed yesterday in the U.S. District Court for the District of Nevada, charging 13 leaders, members, and associates of the violent transnational criminal organization Mara Salvatrucha, also known as “MS-13,” with violation of the federal “Kingpin” statute and multiple drugs and firearms offenses, including transporting bulk quantities of methamphetamine from Los Angeles, California to Las Vegas, Nevada.

The indictment was returned under seal on July 8, 2020 by a federal grand jury sitting in Las Vegas. Yesterday morning, 11 of the 13 defendants were taken into custody: four defendants were arrested in the Los Angeles area, and seven defendants were arrested in Las Vegas. Those arrests were part of a national takedown coordinated between law enforcement agencies in the District of Nevada, Central District of California, Eastern District of New York, and Eastern District of Virginia.

Two other defendants — Juan Angel Reyes (also known as “Angel” and “Mysterio”) and Eder Cruz-Salguero (also known as “Edgar Manolo Ramirez-Salguero” and “Venado”) — are considered fugitives and a warrant remains outstanding for their arrests. Anyone with information as to their whereabouts is asked to contact your local law enforcement office or the Department of Homeland Security by calling 1-866-DHS-2-ICE.

This morning, Attorney General William P. Barr led a Joint Task Force Vulcan (JTFV) briefing to President Donald J. Trump in the Oval Office, which included several U.S. Attorneys and heads of law enforcement agencies. Following that briefing, the charges in Nevada were announced by U.S. Attorney Nicholas A. Trutanich for the District of Nevada, Special Agent in Charge Francisco Burrola of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Sheriff Joseph Lombardo of the Las Vegas Metropolitan Police Department, and Special Agent in Charge Patrick Gorman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

“In 2017, the President directed the Department of Justice to go to war against MS-13, and we did just that,” said Attorney General Barr. “In coordination with our partners at the Department of Homeland Security, the Justice Department’s law enforcement components have successfully investigated, charged, and arrested command and control elements of MS-13 responsible for murder. Joint Task Force Vulcan’s operations have significantly degraded MS-13’s capabilities. While there is still work to be done, the Department of Justice remains committed to protecting Americans threatened by MS-13, and we will not rest until we have successfully defeated this transnational criminal organization.”

“Today’s announcements are the result of tremendous teamwork and coordination between prosecutors and law enforcement officers across the United States and Central America,” stated JTFV Director John Durham. “MS-13 is a violent transnational criminal organization, whose criminal activities respect no boundaries. The only way to defeat MS-13 is by targeting the organization as a whole, focusing on the leadership structure, and deploying a whole-of-government approach against a common enemy.”

“As a result of the hard work and substantial resources dedicated by our local and federal law enforcement partners, this collaborative effort has disrupted MS-13’s leadership and significantly undermines the gang’s ability to engage in violence and other criminal conduct in Nevada, California, and elsewhere throughout the country,” said U.S. Attorney Trutanich. “Our office is proud to contribute to making our streets safer and stopping MS-13 from using a well-worn path between Los Angeles and Las Vegas to develop a greater presence in Las Vegas. We are grateful to HSI, the Las Vegas Metropolitan Police Department, and ATF: without their bravery, this prosecution would not be possible.”

“Gangs threaten the safety of our communities, not just in major metropolitan areas but in our suburbs and rural areas, too,” said Francisco Burrola, Special Agent in Charge for the HSI Las Vegas office. “Gang-related violence and criminal activity present an ongoing challenge for law enforcement everywhere. Our efforts to dismantle gangs are much more effective in areas where partnership with local law enforcement is strongest.”

“The magnitude of this operation will have a huge ripple effect on this criminal enterprise. Dangerous gangs like these contribute to the decay of our communities by bringing drugs and other violent crime to our streets. They threaten the safety of our neighborhoods and our way of life. These arrests are a real victory against gang violence,” said Clark County Sheriff Joseph Lombardo.

“Gangs are one of the nation’s key distributors of narcotics and are flagrant in their use of firearms to carry out violence and intimidation,” said Special Agent in Charge Patrick Gorman, San Francisco Field Division, ATF. “Through ATF’s collaborative Crime Gun Intelligence Model, local, state, and federal partners diligently pursue violent criminals and the sources of their crime guns to remove them from our communities. Throughout this investigation, ATF has worked side by side with our partners to fulfill ATF’s mission of protecting the public by investigating the criminal misuse and trafficking of firearms in Las Vegas. ATF remains committed to working hard and doing our part to make this city a safer place.”

As detailed in the indictment, MS-13 originated in Los Angeles and has since spread across the country. MS-13 is organized by subsets known as “cliques,” such as “Hollywood Locos” and “Fulton.” In the southwestern United States, the Hollywood Locos clique operates in several major cities, including Los Angeles and Las Vegas.

The organizational hierarchy of MS-13 cliques in Nevada is generally comprised of different ranks. A “Homeboy” is a fully initiated gang member who has undergone a “jumping in” ceremony. That ceremony involves passing a “beating test” where the prospective MS-13 member must survive a group of existing gang members beating him for 13 seconds. Once jumped in, MS-13 members are expected to participate in the gang’s criminal activities. Certain “Homeboys” also operate as “Palabreros” or “shot callers,” making the ultimate decisions affecting the clique.

The indictment charges three defendants who were “Homeboys” in the MS-13 Hollywood Locos and Fulton cliques:

• Adali Arnulfo Escalante-Trujillo, also known as “Buchaca,” 43, of Las Vegas, is charged with one count of engaging in a continuing criminal enterprise (commonly referred to as the “Kingpin” statute), one count of conspiracy to distribute a controlled substance, 15 counts of distribution of a controlled substance, and one count of conspiracy to deal in firearms without a license.

 

As alleged, Escalante-Trujillo was the Las Vegas-based “shot caller” of the Hollywood Locos clique, leading the Las Vegas sector of the gang, which was involved in narcotics and firearms distribution. He bragged about the violent acts committed by MS-13, boasted of connections between MS-13 and the Mexican Mafia, and bragged that MS-13 had come to work with nearly all Mexican Cartels. Reflecting his senior position within MS-13’s hierarchy, Escalante-Trujillo was in direct contact with an MS-13 founding member living in El Salvador.

Escalante-Trujillo brokered nearly every narcotics and firearms trafficking charge alleged in the indictment. Among other things, Escalante-Trujillo hosted MS-13 members from Los Angeles at his Las Vegas home, to enable their transportation of bulk quantities of methamphetamine from Los Angeles to Las Vegas.

 

• Jose Alfredo Ayala-Flores, also known as “Blackie,” 39, of Inglewood, California, is charged with one count of conspiracy to distribute a controlled substance, five counts of distribution of a controlled substance, and one count of being a prohibited person in possession of a firearm.

 

As alleged, in addition to being a “Homeboy,” Ayala-Flores is a “shot caller.” He led the MS-13 “Los Angeles Program,” a leadership group that seeks to unify MS-13 decision-making throughout the United States.

In early 2020, Ayala-Flores and Escalante-Trujillo arranged numerous bulk methamphetamine deals in Las Vegas. Additionally, Ayala-Flores sent bulk pills, laced with fentanyl, through the mail. Ayala-Flores also possessed three rifles (bearing no serial numbers) illegally, due to his prior conviction for attempted murder.

 

• Alvaro Ernesto Perez Carias, also known as “Toro,” 50, of Los Angeles, is charged with one count of conspiracy to distribute a controlled substance and one count of distribution of a controlled substance

 

As alleged, Perez Carias is a “shot caller” and a founding member of the Hollywood Locos clique. Due to supply issues as a result of the COVID-19 pandemic, Perez Carias personally delivered large quantities of methamphetamine from Los Angeles to Las Vegas this year.

 

Aside from Escalante-Trujillo, Ayala-Flores, and Perez Carias, the remaining ten defendants are charged with conspiring to distribute drugs (between July 2019 and the present) and conducting individual drug deals over the past 12 months. The indictment also charges defendants with illegally possessing and selling silencers, semiautomatic rifles, and semiautomatic handguns:

 

• Sebastian Ocadiz-Castro, 20, of Las Vegas, is charged with one count of conspiracy to distribute a controlled substance, three counts of distribution of a controlled substance, and one count of conspiracy to deal in firearms without a license.

 

• Juan Luis-Rico, also known as “Pelon,” 46, of Las Vegas, is charged with one count of conspiracy to distribute a controlled substance and one count of distribution of a controlled substance.

 

• Juan Angel Reyes, also known as “Angel” and “Mysterio,” 21, of Van Nuys, California, is charged with one count of conspiracy to distribute a controlled substance and one count of distribution of a controlled substance.

 

• Miguel Angel Nieto-Romero, also known as “Flaco,” 26, of Los Angeles, is charged with one count of conspiracy to distribute a controlled substance and three counts of distribution of a controlled substance.

 

• Rosalio Andres Siguenza-Romero, also known as “Tweety,” 40, of Las Vegas, is charged with one count of conspiracy to deal in firearms without a license, one count of dealing in firearms without a license, and one count of possession of an unregistered firearm.

 

• Daniel Enrique Perez-Torres, also known as “Maliente,” 30, of Las Vegas, is charged with one count of conspiracy to distribute a controlled substance and two counts of conspiracy to distribute a controlled substance.

 

• Jose Gerardo Cortez-Diaz, also known as “Christian Axel Lopez-Cortez” and “Chiquilin,” 20, of Los Angeles, is charged with one count of conspiracy to distribute a controlled substance and one count of distribution of a controlled substance.

 

• Eder Cruz-Salguero, also known as “Edgar Manolo Ramirez-Salguero” and “Venado,” 26 (city of residence unknown), is charged with one count of conspiracy to distribute a controlled substance and one count of distribution of a controlled substance.

 

• Carlos Lopez-Guzman, also known as “Troso,” 41, of Los Angeles, is charged with one count of conspiracy to distribute a controlled substance and three counts of distribution of a controlled substance.

 

• Pedro Ernesto Montalvo, also known as “Cuba,” 35, of Hawthorne, California, is charged with one count of conspiracy to distribute a controlled substance and one count of distribution of a controlled substance.

All defendants except Angel Reyes and Cruz-Salguero are in federal custody and awaiting their respective initial appearances. The charges in the indictment are merely allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

Assistant U.S. Attorneys Shaheen Torgoley and Brett Ruff are prosecuting this case.

The maximum statutory sentences for each charge in the indictment are: (a) life imprisonment and a $2 million fine for engaging in a continuing criminal enterprise; (b) life imprisonment and a $10 million fine for distribution of controlled substance; (c) life imprisonment and a $10 million fine for conspiracy to distribute controlled substance; (d) five years imprisonment for conspiracy – deal in firearms without a license; (e) five years imprisonment and a $250,000 fine for dealing in firearms without a license; (f) ten years imprisonment and a $250,000 fine for prohibited person in possession of a firearm; and (g) ten years imprisonment for possession of unregistered firearm. The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes only. If convicted of any federal offense, the sentencing of a defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

The charges are the result of a joint investigation by the HSI, the Las Vegas Metropolitan Police Department, and the ATF, and coordinated at a national level by Joint Task Force Vulcan. In August 2019, Attorney General Barr created JTFV to carry out the recommendations of the MS-13 subcommittee formed under the Attorney General’s Transnational Organized Crime Task Force, which was the result of President Trump’s February 2017 Executive Order directing the Departments of Justice, State, and Homeland Security, and the Office of the Director of National Intelligence to coordinate a whole-of-government approach to dismantle transnational criminal organizations, such as MS-13, and restore safety for the American people. The principal purpose of JTFV is to coordinate and lead the efforts of the Justice Department and U.S. law enforcement agencies against MS-13 in order to dismantle the group.

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