District of Nevada

LAS VEGAS, Nev. – Japanese authorities have extradited to the United States two former executives of a Las Vegas, Nevada investment company in connection with their alleged roles in a $1.5 billion Ponzi scheme.

Assistant Attorney General Brian A. Benczkowski 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 Division made the announcement.

Junzo Suzuki, 70, and Paul Suzuki, 40, who are father and son and are both Japanese nationals, were each charged in a July 2015 indictment filed in the District of Nevada with eight counts of mail fraud and nine counts of wire fraud. Japanese authorities arrested the Suzukis in January 2019 at the request of the United States, and extradited them to the United States on April 17. The Suzukis will make their initial appearance this afternoon before U.S. Magistrate Judge Cam Ferenbach of the District of Nevada.

According to the indictment, Junzo Suzuki previously was executive vice president for Asia Pacific of MRI International (MRI), an investment company which was headquartered in Las Vegas and had an office in Japan. Paul Suzuki previously was the company’s general manager for Japan operations, based in Tokyo. MRI purportedly specialized in “factoring,” whereby the company purchased accounts receivable from medical providers at a discount, and then attempted to recover the entire amount, or at least more than the discounted amount, from the debtor.

According to allegations in the indictment, from at least 2009 to 2013, the Suzukis and their co-defendant Edwin Fujinaga, 72, of Las Vegas, fraudulently solicited investments from thousands of Japanese residents. When MRI collapsed, it allegedly owed investors over $1.5 billion. Specifically, the indictment alleges that Fujinaga and the Suzukis promised investors a series of interest payments that would accrue over the life of the investment and that would be paid out along with the face value of the investment at the conclusion of the investments’ duration. The defendants allegedly solicited investments by, among other things, promising investors that their investments would be used only for the purchase of medical accounts receivable (MARS) and by representing that investors funds would be managed and safeguarded by an independent third-party escrow company.

The indictment further alleges that MRI operated as a Ponzi scheme, in which the defendants used new investors’ money to pay prior investors’ maturing investments. According to the indictment, the defendants also allegedly used investors’ funds for purposes other than the purchase of MARS, including paying themselves sales commissions, subsidizing gambling habits, funding personal travel by private jet, and other personal expenses.

In November 2018, after a five-week trial, Fujinaga was found guilty of eight counts of mail fraud, nine counts of wire fraud and three counts of money laundering in connection with his Ponzi scheme. His sentencing hearing is scheduled for May 23, 2019. 

The case was investigated by the FBI. The case is being prosecuted by Trial Attorneys William Johnston and Danny Nguyen of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Tony Lopez of the District of Nevada. The case was investigated by Assistant Chief Albert Stieglitz of the Fraud Section and Assistant U.S. Attorney Steven Myhre of the District of Nevada. 

The indictment contains allegations and the defendants are presumed innocent if and until proven guilty in a court of law.

The Criminal Division’s Office of International Affairs provided significant support with the defendants’ extradition. The U.S. Securities and Exchange Commission, the Financial Services Agency of Japan, and the Japanese Ministry of Justice also provided assistance. 

# # #

LAS VEGAS, Nev. – A former medical doctor and his business partner were sentenced Tuesday to 33 months in prison for their individual roles in a $7.1 million Medicare health care fraud scheme that occurred at three Las Vegas hospice and home healthcare agencies, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

Camilo Q. Primero, 76, of San Dimas, California, and Aurora S. Beltran, 63, of Glendora, California, each pleaded guilty conspiracy to commit health care fraud and money laundering. In addition to the prison term, U.S. District Judge Andrew P. Gordon sentenced each defendant to three years of supervised release and ordered them to pay a criminal forfeiture money judgment of $2,492,627. The defendants agreed to make full restitution in the amount of $2,492,627 to the United States.

From about January 2012 to about July 2017, Primero, a former medical doctor and owner of Angel Eye Hospice, Vision Home Health Care, and Advent Hospice, all in Las Vegas, Nevada, and Beltran, Primero’s business partner, operated a scheme to fraudulently obtain $7.1 million from the Medicare program. They filed false enrollment documents with Medicare to enable Primero to operate hospice and home care agencies through nominees despite his prior exclusion from all federal health care programs. Furthermore, they submitted fraudulent hospice care claims for people who were not terminally ill and did not require hospice care.

Primero and Beltran were previously convicted in California state court for defrauding that state’s insurance system in relation to another business named Beltran House, a residential care facility for disabled adults.

The case was investigated by the FBI and the U.S. Department of Health and Human Service, Office of the Inspector General (HHS-OIG), with assistance from IRS-Criminal Investigation. Assistant U.S. Attorney Patrick Burns prosecuted the case.

You can report suspected Medicare fraud by calling HHS-OIG at 1-800-HHS-TIPS (1-800-447-8477) or online at https://forms.oig.hhs.gov/hotlineoperations/report-fraud-form.aspx.

###

 

LAS VEGAS, Nev. - The Department of Justice today released two complementary reports that focus on the mental health and safety of the nation’s federal, state, local and tribal police officers. The reports, Law Enforcement Mental Health and Wellness Act: Report to Congress and Law Enforcement Mental Health and Wellness Programs: Eleven Case Studies, were published by the Office of Community Oriented Policing Services (COPS Office) as required by the Law Enforcement Mental Health and Wellness Act (LEMHWA) of 2017. 

The LEMHWA passed both chambers unanimously and without amendment and was signed by the President shortly thereafter. These actions show that its purpose and intended effects are uncontroversial among policymakers – law enforcement agencies need and deserve support in their ongoing efforts to protect the mental health and well-being of their employees. Congress took the important step in improving the delivery of and access to mental health and wellness services that will help our nation’s more than 800,000 federal, state, local, and tribal law enforcement officers.  

"Serving as a law enforcement officer requires courage, strength, and dedication," Attorney General William P. Barr said. "The demands of this work, day in and day out, can take a toll on the health and well-being of our officers, but the Department of Justice is committed to doing our part to help. I want to thank the men and women of our COPS office for their hard work to support our officers every day, and specifically for these thoughtful and insightful reports, which detail both the challenges facing our officers and some specific ways we can give them the support that they deserve."

"A damaging national narrative has emerged in which law enforcement officers – whether federal, state, local, or tribal – are seen not as protectors of communities but as oppressors," said COPS Office Director Phil Keith. “In this environment, where an inherently stressful job is made more so by a constant undercurrent of distrust and negative public opinion, the risks to officer wellness are exacerbated. This report is an important measure and reflection in our ongoing commitment to protect those who protect us."

“The reports address current issues facing law enforcement nationwide,” said U.S. Attorney Nicholas A. Trutanich for the District of Nevada. “Law enforcement put their lives on the line to combat violent crime to make our neighborhoods safer. At the U.S. Attorney’s Office, the safety, health, and wellness of our law enforcement officers is a top priority.”

Under the Law Enforcement Mental Health and Wellness Act, the COPS Office was required to submit reports to Congress that addressed:

(1) Recommendations to Congress on effectiveness of crisis lines for law enforcement officers, efficacy of annual mental health checks for law enforcement officers, expansion of peer mentoring programs, and ensuring privacy considerations for these types of programs;

(2) Mental health practices and services in the U.S. Departments of Defense (DoD) and Veterans Affairs (VA) that could be adopted by federal, state, local, or tribal law enforcement agencies; and

(3) Case studies of programs designed primarily to address officer psychological health and well-being.

The first report, Law Enforcement Mental Health and Wellness Act: Report to Congress, includes 22 recommendations to Congress ranging from supporting programs to embed mental health professionals in law enforcement agencies to supporting the development of model policies and implementation guidance for law enforcement agencies to make substantial efforts to reduce suicide.

The case studies report, Law Enforcement Mental Health and Wellness Programs: Eleven Case Studies, is designed to provide an overview of multiple successful and promising law enforcement mental health and wellness strategies with the joint aims of informing Congress, state and local government officials, and the law enforcement field. The report includes 11 case studies from a diverse group of sites across the United States.

The Department of Justice is pleased to respond to the LEMHWA as officer safety, health, and wellness is a longstanding priority of the agency. The reports released today address some of the most pressing issues currently facing our law enforcement community.

The COPS Office has a near 25-year history of supporting the efforts of state, local and tribal law enforcement, including the management of the National Blue Alert Network. The agency awards grants to hire community policing officers, develop and test innovative policing strategies, and provide training and technical assistance to community members, local government leaders, and all levels of law enforcement. Since 1994, the COPS Office has invested more than $14 billion to help advance community policing.

###

LAS VEGAS, Nev. – A Las Vegas man, Brian Wright, who was convicted for his role in planning and participating in the armed robbery of two jewelry stores while he was on federal supervised release for a conviction related to unlawful possession of a firearm, was sentenced Monday to 328 months in federal prison, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada. In a separate case, Wright was previously sentenced to 92 months in prison after a jury convicted him of Assault on a Federal Officer. The Court ordered the 328-month sentence in this case to run consecutive to his sentence in the assault case for a total sentence of 35 years in federal prison.

Brian Wright, 34, was convicted of two counts of conspiracy to interfere with commerce by robbery, two counts of interference with commerce by robbery, and two counts of brandishing a firearm during and in relation to a crime of violence. In addition to the incarceration, U.S. District Judge Jennifer A. Dorsey sentenced him to three years of supervised release concurrent on each count. Wright has been previously convicted in Nevada of robbery with a deadly weapon, conspiracy to commit robbery, and felon in possession of a firearm, and he has multiple parole and supervised release violations.

“Every time law enforcement takes a gun out of the hands of a violent criminal we are potentially saving lives,” said U.S. Attorney Trutanich. “This significant sentence is the result of our continued efforts to keep the community safe from dangerous repeat offenders by working together with our local and federal law enforcement partners.”

During the six-day trial, the government proved that Wright planned and recruited two gunmen and several getaway drivers to rob a jewelry store located at N. Rainbow Blvd in northwest Las Vegas in January, 2017. On January 3, 2017, the two gunmen, co-conspirators Deandre Nakita Brown and Aquail Harris, entered the jewelry store pointing their firearms at employees and customers, including two young children, forcing them to their knees. Harris physically removed the security guard’s firearm and the robbers took the firearm along with the stolen jewelry. The two gunmen delivered the stolen jewelry and watches valued at over $850,000 to the getaway vehicle driven by two additional co-conspirators, Kendareen Hudson and Safiyyah Christopher. Wright, using a police radio scanner app on his phone, relayed information to his co-conspirators to avoid apprehension. However, shortly following the robbery Las Vegas Metropolitan Police Department officers found and arrested Hudson and Christopher and recovered the stolen merchandise.

Ten days later, Wright recruited co-conspirators Carl Whitley and Deandre Brown to help him rob a jewelry store located at W. Charleston Blvd in Boca Park. Wright provided a gun to Brown to use in the robbery. On January 13, Brown entered the jewelry store pointing a gun at employees and directing them to fill garbage bags with jewelry and watches. Approximately $765,000 worth of jewelry was taken. Brown fled in a getaway vehicle driven by co-conspirator Randy Jerousek. Brown ultimately abandoned the vehicle and the jewelry in the backseat when the it became clear that police were searching for the getaway vehicle. This vehicle driven by co-conspirator Randy Jerousek was quickly located at a casino with the stolen merchandise in it. The co-conspirators were arrested soon thereafter.

Brown, Harris, and Wright met and planned the robberies while each of them were serving on federal supervised release.

Co-defendants Harris, Christopher, Hudson, Jerousek, Whitley, and Brown all pleaded guilty for their involvement in the armed robberies.

The case was investigated by the FBI Safe Streets Task Force and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Alexandra Michael, Nadia Ahmed, and Lisa Cartier Giroux prosecuted the case.

###

LAS VEGAS, Nev. – A Henderson, Nevada, resident who pleaded guilty to receiving and possessing more than 47,000 images and videos of child pornography was sentenced today to nine years in federal prison, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

“As part of the Justice Department’s Project Safe Childhood program, the U.S. Attorney’s Office is committed to the safety and well-being of every child in Nevada,” said U.S. Attorney Trutanich. “We will prosecute child sex predators who exploit the youngest and most vulnerable citizens and bring them to justice. We remain vigilant in our continued efforts to work with local, state, and federal partners to protect Nevada’s children.”

Robert William Surdel, 40, pleaded guilty to one count of receipt of child pornography, which carries a five year mandatory minimum sentence, and one count of possession of child pornography. In addition to the prison term, U.S. District Judge Jennifer A. Dorsey ordered him to pay $40,000 in restitution to his victims and sentenced him to lifetime supervised release. Under the Sex Offender Registration and Notification Act, he will be required to register as a sex offender.

Between November 2016 to January 2017, law enforcement officers were able to download images and videos of child pornography from Surdel’s computers. On February 22, during the execution of a search warrant at Surdel’s residence, he admitted to downloading child pornography using the internet and peer-to-peer programs. A forensic analysis of the seized devices discovered 46,001 images and 1,291 videos of child pornography that he meticulously sorted by subfolders, source, and genre. The longest video recovered during the search was over 26 hours. In one image that was recovered, the victim was only between 9 and 18 months of age.

The case was investigated by the FBI and Henderson Police Department. Assistant U.S. Attorney Elham Roohani prosecuted the case.

To report an incident involving the possession, distribution, receipt, or production of child pornography, contact the National Center for Missing & Exploited Children by phone at 1-800-843-5678 or online 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. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

###

RENO, Nev. – A jury sitting in northern Nevada convicted a felon of a federal firearm violation, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

Clifton James Jackson, 55, of Reno, was found guilty of felon in possession of a firearm. He has a prior conviction for felon in possession of a firearm in Nevada. United States District Judge Howard D. McKibben scheduled a sentencing hearing on July 10, 2019.

According to court documents and evidence introduced at trial, in December 2018, a deputy with the Washoe County Sheriff’s Office responded to a 911 call reporting a man holding a handgun while walking towards a business. Gunshots were also reported by the caller. As responding law enforcement officers located and pursued a truck driven by the suspect, the deputy observed an object being thrown from the truck. When additional units arrived on scene, Jackson and a juvenile were arrested. A subsequent search of the truck and the area where the object had been thrown revealed a 7.65mm semi-automatic pistol and a box of .32 caliber ammunition. A records check of the recovered firearm revealed that it had been stolen in Plumas County, California in May 2018.

The maximum penalty is 10 years in prison and a $250,000 fine.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Washoe County Sheriff’s Office. Assistant U.S. Attorneys Megan Rachow and Randy St. Clair are prosecuting the case.

To report a tip about a stolen firearm contact the ATF at 1-888-ATF-TIPS (1-888-283-3473).

This case was 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.

# # #

Two Las Vegas, Nevada, co-conspirators, who filed false tax returns seeking millions of dollars of fraudulent tax refunds, were sentenced to prison today, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Nicholas A. Trutanich for the District of Nevada. 

Defendant Chanh V. Trinh was sentenced to 102 months in prison and defendant Cannedy Trinh was sentenced to 24 months in prison.

According to documents filed with the court, Chanh V. Trinh, Cannedy Trinh, and Elizabeth Trinh, conspired to file federal corporate and individual tax returns reporting false income tax withholdings and payments, in order to cause the Internal Revenue Service (IRS) to issue fraudulent income tax refunds. The Trinhs filed the returns in the names of fictitious business entities, their own names, and the names of other individuals, including a long-deceased family member. Chanh V. Trinh prepared and filed the returns. All three defendants deposited or cashed the fraudulently obtained refund checks using bank accounts and check-cashing businesses in Las Vegas. To conceal the funds, the defendants regularly purchased cashier’s checks, which they used to obtain gambling chips at local casinos. The conspiracy resulted in false claims of more than $6 million, and more than $2 million in fraudulent refunds paid out by the IRS.

In addition to the term of imprisonment, U.S. District Court Judge James C. Mahan ordered the defendants to each serve three years of supervised release.  Defendant Chanh V. Trinh was ordered to pay restitution of $2,331,021, and defendant Cannedy Trinh was ordered to pay restitution of $1,144,902. Co-defendant Elizabeth Trinh is scheduled to be sentenced on May 15, 2019.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys Thomas W. Flynn and Eric C. Schmale of the Tax Division, 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. – Two Las Vegas, Nevada, co-conspirators, who filed false tax returns seeking millions of dollars of fraudulent tax refunds, were sentenced to prison today, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Nicholas A. Trutanich for the District of Nevada. 

Defendant Chanh V. Trinh was sentenced to 102 months in prison and defendant Cannedy Trinh was sentenced to 24 months in prison.

According to documents filed with the court, Chanh V. Trinh, Cannedy Trinh, and Elizabeth Trinh, conspired to file federal corporate and individual tax returns reporting false income tax withholdings and payments, in order to cause the Internal Revenue Service (IRS) to issue fraudulent income tax refunds. The Trinhs filed the returns in the names of fictitious business entities, their own names, and the names of other individuals, including a long-deceased family member. Chanh V. Trinh prepared and filed the returns. All three defendants deposited or cashed the fraudulently obtained refund checks using bank accounts and check-cashing businesses in Las Vegas. To conceal the funds, the defendants regularly purchased cashier’s checks, which they used to obtain gambling chips at local casinos. The conspiracy resulted in false claims of more than $6 million, and more than $2 million in fraudulent refunds paid out by the IRS.

In addition to the term of imprisonment, U.S. District Court Judge James C. Mahan ordered the defendants to each serve three years of supervised release. Defendant Chanh V. Trinh was ordered to pay restitution of $2,331,021, and defendant Cannedy Trinh was ordered to pay restitution of $1,144,902. Co-defendant Elizabeth Trinh is scheduled to be sentenced on May 15, 2019.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys Thomas W. Flynn and Eric C. Schmale of the Tax Division, 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. – The twelfth defendant to plead guilty in a large international counterfeit credit and debit card fraud scheme was sentenced Tuesday to eight years and two months in federal prison for his involvement in the multimillion dollar conspiracy, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

Andre Araujo Rodrigues, aka “Andre Rodriguez,” “Andre Gonzales,” “Andre Menudo,” and “Andre Rodrigues,” 35, of Porto Velho, Brazil, was sentenced by U.S. District Judge Jennifer A. Dorsey. He pleaded guilty without the benefit of a plea agreement to Conspiracy to Commit Fraud and Related Activity in Connection with Access Devices, three counts of Possession Of Access Device-Making Equipment, Production, Use or Trafficking of Counterfeit Access Devices, and Conspiracy to Commit Money Laundering. In addition to incarceration, he was ordered to pay restitution in the amount of $2,288,180, and a criminal forfeiture money judgment of in the amount of $5 million was imposed.

From October 2015 to May 2016, Rodrigues conspired with others to commit credit and debit card fraud by using “skimmers” placed on automatic teller machines, cash-out transaction ticket dispensing terminals, such as Global Cash Advance (GCA) machines, and other means to obtain stolen account information. The group also obtained stolen credit card information through the use of malware and point of sale intrusions. Rodrigues and his co-conspirators set-up credit card forgery “laboratories” in residences and hotel rooms to manufacture counterfeit credit and debit cards. Equipment in the laboratories included counterfeit card production systems, thermal dye printers, foil tipping machines, card embossers, and card scanners and encoders.

Rodrigues and his co-conspirators used the counterfeit credit and debit cards to obtain cash withdrawals from ATMs and GCA machines located in Nevada and elsewhere and also to purchase high-end merchandise including luxury watches, jewelry, and clothing at hotel-casinos and businesses in Las Vegas, Nevada and other cities throughout the United States, including: Del Mar, California; Detroit, Michigan; New Orleans, Louisiana; Nassau County, New York; Biloxi, Mississippi; and Atlantic City, New Jersey. The group laundered the fraud proceeds and resold the fraudulently obtained retail items on the black market or online marketplaces.

In addition to Rodrigues, the following co-defendants have also pleaded guilty and either been sentenced or are awaiting sentencing:

• Lucas Coelho Paiva Rego, pleaded guilty to Use or Trafficking in Unauthorized Access Device and Aggravated Identity Theft, and was sentenced to 60 months in prison.
• Henrique Ortolani De Souza Vila Real pleaded guilty to Use or Trafficking in Unauthorized Access Device and Aggravated Identity Theft and is scheduled to be sentenced on June 3, 2019. The parties have stipulated to a 60 month prison sentence for Real. He has also been sentenced to 30 months in prison in an unrelated drug distribution case.
• Vitor Domingues Valentini Dos Reis pleaded guilty to Use or Trafficking in Unauthorized Access Device and was sentenced to 57 months in prison.
• Pedro Igor Alves Barbosa pleaded guilty to Possession of Access Device-Making Equipment  and Use or Trafficking in Unauthorized Access Device, and is scheduled to be sentenced on April 15, 2019. The parties have stipulated to a 57 month prison sentence for Barbosa.
• Amysterdan Barbosa Da Silva has pleaded guilty to Conspiracy to Commit Fraud and Related Activity in Connection with Access Devices and is scheduled to be sentenced on May 13, 2019. The parties have stipulated to a 50 month prison sentence for Da Silva.
• Leonardo Augusto Oliveira Santos has pleaded guilty to Conspiracy to Commit Fraud and Related Activity in Connection with Access Devices and Use or Trafficking in Unauthorized Access Device and was sentenced to 33 months in prison.
• Davi Dias Fernandes pleaded guilty to Use or Trafficking in Unauthorized Access Device and was sentenced to 32 months in prison.
• Lorenzo Ramon Sala Moura pleaded guilty to Conspiracy to Commit Fraud and Related Activity in Connection with Access Devices and Use or Trafficking in Unauthorized Access Device, and was sentenced to 24 months in prison.
• Anderson Clayton Mariano Alcantara pleaded guilty to Conspiracy to Commit Fraud and Related Activity in Connection with Access Devices,  Use or Trafficking in Unauthorized Access Device, Aggravated Identity Theft, Possession of Access Device-Making Equipment, Production, Use, or Trafficking of Counterfeit Access Device, Possession of Fifteen or More Counterfeit or Unauthorized Access Devices, Count 29 – Conspiracy to Commit Money Laundering, and Money Laundering. He is scheduled to be sentenced on April 22, 2019.
• Bruno Macedo Correia pleaded guilty to Conspiracy to Commit Fraud and Related Activity in Connection with Access Devices and Conspiracy to Commit Money Laundering. He is scheduled to be sentenced on June 11, 2019.
• Francisco Rui De Alencar Mendes Filho pleaded guilty to Conspiracy to Commit Fraud and Related Activity in Connection with Access Devices, Possession of Access Device-Making Equipment, Production, Use, or Trafficking of Counterfeit Access Device, and Conspiracy to Commit Money Laundering. He is scheduled to be sentenced on July 15, 2019.
• Two defendants, Fausto Teixeira Martins Neto and Felipe Augusto Vicale Martins, are currently scheduled for a jury trial beginning on August 13, 2019.

The case was investigated by the FBI, the Las Vegas Metropolitan Police Department, the Department of State’s Diplomatic Security Service, and the Henderson Police Department. Assistant U.S. Attorney Patrick Burns is prosecuting the case.

###

 

RENO, Nev. – A Sparks, Nevada, man who posed online as a teenage boy to coerce a teenage girl to send nude photos of herself to him was sentenced Monday to 12 and a half years in federal prison, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

Steven Streit, 59, pleaded guilty to coercion and enticement of a minor. In addition to imprisonment, U.S. District Judge Larry R. Hicks sentenced him to a lifetime of supervised release. Under the Sex Offender Registration and Notification Act, he is required to register as a sex offender.

According to court documents, in October and November 2017, the National Center for Missing and Exploited Children received a cybertip advising that suspected child pornography was uploaded to an online file-sharing account. Law enforcement opened an investigation and learned the account belonged to Streit. During the execution of a search warrant at Streit’s apartment, electronic devices and other items belonging to Streit were located and forensically analyzed. During the forensic analysis of the four devices, law enforcement found a total of 560 images and 92 video files of child pornography and chats Streit had with a 12-year-old girl in Florida. In the chats, Streit portrayed himself as a 15-year-old boy and enticed the girl to send sexually explicit videos of herself to him. He saved these video files for himself for later viewing. During an interview with law enforcement, Streit admitted to utilizing a file-sharing network to download and trade child pornography with others, and to having the deceptive online relationship with the 12-year-old girl.

The case was investigated by the FBI and Washoe County Sheriff’s Office. Assistant U.S. Attorney James Keller prosecuted the case.

To report an incident involving the possession, distribution, receipt, or production of child pornography, contact the National Center for Missing & Exploited Children by phone at 1-800-843-5678 or online 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. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

###

LAS VEGAS, Nev. – After a one-day bench trial, a Las Vegas resident was convicted of possession of child pornography, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

Gilbert Davila Jr., 55, was found guilty of one-count of possession of child pornography by U.S. District Judge James C. Mahan. At the time of the offense that resulted in his conviction, Davila had been previously convicted in California of unlawful sexual intercourse with a minor and lewd acts with a minor under 14.

In August and October 2017, the National Center for Missing and Exploited Children (NCMEC) received a report from an online email service provider in reference to possible child pornography uploaded by a user. The report was sent to the Las Vegas Metropolitan Police Department’s Internet Crimes Against Children (ICAC) Task Force, who in turn obtained a search warrant for information regarding the user who had uploaded the child pornography. The search warrant revealed that user account had more than 600 images of child sexual exploitation and child abuse material. A search warrant was also executed at Davila’s home. Davila was interviewed after execution of the warrant at his home, during which he confessed that he had a problem and that he had been looking at child pornography for approximately four to five years. He also stated that he performed a factory reset on his phone on the way to the interview to delete all images and videos of child pornography saved to his phone.

Sentencing has been scheduled for July 11, 2019. The maximum penalty is 20 years in prison and a $250,000 fine.

The case was investigated by the FBI and Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Elham Roohani and Rebecca Clinton are prosecuting the case.

If you have information regarding possible child sexual exploitation, you are urged to make a report to the National Center for Missing and Exploited Children at www.cybertipline.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 the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, visit www.usdoj.gov/psc.

###

 

LAS VEGAS, Nev. – A Las Vegas man was convicted by a jury today to committing two armed robberies at the same bank in Henderson, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

After three days of trial, a federal jury found Anthony Delano Hylton Jr., 33, guilty of two counts of armed bank robbery and two counts of use and carry of a firearm during and in relation to a crime of violence. He was also found guilty of one count of felon in possession of a firearm at a separate bench trial. United States District Judge Howard D. McKibben presided over both trials and scheduled sentencing for September 17, 2019.

The evidence at trial established that on October 7, 2016, Hylton entered a Citibank on S. Eastern Avenue in Henderson, armed with a .45 caliber semi-automatic handgun. Once inside he pointed the gun at the customers and bank employees and ordered everyone to get down on the ground. He jumped over the teller counter and discharged the firearm into the floor. He then demanded money from the tellers while pointing his gun at them. He fled the bank with approximately $69,565. Three months later, on January 17, 2017, he entered the same bank armed with a revolver. He pointed the gun at the customers and bank employees and ordered everyone to the ground. He again jumped over the counter and demanded money from the tellers at gunpoint. The tellers complied and Hylton fled the bank with approximately $13,046.

Hylton is a previously convicted felon for battery with substantial bodily harm in Clark County, Nevada.

At the sentencing hearing, Hylton faces a minimum of 17 years in prison.  

The case was investigated by the FBI and Henderson Police Department. Assistant United States Attorneys Lisa Cartier-Giroux and Peter S. Levitt are prosecuting the case.

###

LAS VEGAS, Nev. – In connection with the U.S. Attorney’s Office continuing efforts to reduce violent crime through the Department of Justice’s Project Safe Neighborhoods initiative, U.S. Attorney Nicholas A. Trutanich today announced the results of two sentencings in firearms-related cases.

• Terry Tremell Lomax, 30, of Las Vegas, was sentenced April 1, by U.S. District Judge Jennifer A. Dorsey to four years in prison and three years of supervised release. He pleaded guilty in December 2018, to felon in possession of a firearm. On May 17, 2017, Las Vegas Metropolitan Police Department officers attempted to conduct a vehicle stop after Lomax committed a series of traffic infractions. In an attempt to flee and avoid the vehicle stop, Lomax sped through a red light, drove up onto a sidewalk, then stopped the car and fled on foot around a residence. During the foot pursuit, he threw a fully loaded .40 caliber handgun on the front porch of the house. Law enforcement was able to apprehend Lomax and they recovered his handgun. He has four prior felony convictions in Nevada, including battery with use of a deadly weapon, battery with use of a deadly weapon resulting in substantial bodily harm, robbery, and conspiracy to commit robbery. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Las Vegas Metropolitan Police Department.
• Giuseppe Russo, 30, of Las Vegas, was sentenced today by U.S. District Judge James C. Mahan to five years and five months in prison and three years of supervised release. He pleaded guilty to felon in possession of a firearm. On July 18, 2017, police attempted to stop Russo outside of a department store. While fleeing from law enforcement, he grabbed a 9mm handgun from his pants and rotated his body toward the officer who was in pursuit, aiming the weapon in the direction of the officer. The officer shot Russo and then administered first aid and called for medical assistance. Russo has three prior felony convictions in Nevada, including assault with a deadly weapon, burglary, and possession of a firearm by a felon. The prison sentence is to run concurrently with any sentence imposed in two separate state court cases. The case was investigated by the Las Vegas Metropolitan Police Department.

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.

###

LAS VEGAS, Nev. – As part of the U.S. Attorney’s Office Project Safe Neighborhoods initiative, United States Attorney Nicholas A. Trutanich hosted a statewide gang and violent crime prevention summit in Las Vegas today for local, state, tribal, and federal law enforcement, prosecutors, victims services, and community partners to discuss gang and youth violence prevention.

“Project Safe Neighborhoods is one of the most effective crime prevention tools in the Department of Justice’s toolshed to reduce violent crime,” said U.S. Attorney Trutanich for the District of Nevada. “The U.S. Attorney’s Office and our partners are committed to the same critical mission - securing the right of all Nevadans to live free from violent crime.”

More than 150 law enforcement officers from several different agencies throughout the state, community leaders, and stakeholders attended the daylong summit. Presenters and panelists covered topics including: developing positive community relationships in neighborhoods, proven practices for gang prevention and intervention, utilizing social media to identify gang activity and recruitment, and discussions of potential approaches and solutions to violent crime. Attendees also heard from community and faith based leaders who discussed the need for community involvement in preventing and stopping violent and gun crimes.

As a result of the Project Safe Neighborhoods initiative, violent crime in Henderson went down 12.5%; Las Vegas went down 27%; and Reno went down 4%, according to the 2017 FBI’s Uniform Crime Report. The U.S. Attorney’s Office, with the assistance of local, state, tribal, and federal law enforcement partners, has prosecuted 525 firearms-related cases since Fiscal Year 2016.

Fiscal Year

Firearms-Related Cases

Number of Defendants

October 1, 2018 to Present

160

176

October 1, 2017 to September 30, 2018

137

148

October 1, 2016 to September 30, 2017

140

149

October 1, 2015 to September 30, 2016

88

90

Project Safe Neighborhoods (PSN) is 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.

###

 

LAS VEGAS, Nev. – A North Las Vegas man who operated two tax preparation businesses was arrested last night and appeared in federal court today for devising a fraud scheme to fraudulently obtain and launder millions of dollars from the sale of his businesses, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

King Isaac Umoren, 38, was indicted for six counts of wire fraud, five counts of aggravated identity theft, and five counts of money laundering. He was arrested and appeared before U.S. Magistrate Judge Nancy J. Koppe. An arraignment has been scheduled for March 26, 2019.

As alleged in the indictment, from on or about May 2016 to May 2018, Umoren devised a scheme to defraud and to obtain money and property from a prospective buyer, and the buyer of his tax preparation business, Universal Tax Services, by fraudulently misrepresenting that the business had a vastly greater client base and annual revenue than it actually did. In furtherance of the scheme, Umoren provided the victims fraudulent bank and financial statements, personal income tax returns, and assorted financial records. The bank statements and financial records provided to the victims had been forged to reflect millions of dollars on deposit when in fact the accounts held little or no money. And the income tax returns showing Umoren earning millions of dollars through the business also were forgeries. Umoren never filed with the Internal Revenue Service in tax years 2014 and 2015. Umoren also stole client information from unrelated tax preparation businesses, including the names, social security numbers, and confidential taxpayer information of those businesses’ clients. In August 2017, as a result of the scheme, Umoren was able to fraudulently sell the business to one of the victims for $6.7 million, of which he received approximately $4,050,000.

At the time of sentencing, the maximum statutory penalty is $250,000 or twice the gross pecuniary gain or loss caused by the offense. The indictment seeks a criminal forfeiture judgment of at least $4,050,000, including amounts of $1,999,875; $888,855.17; $192,325; and $97,807.75 seized from various bank accounts, as well as real property located in Henderson, Nevada, and a 2018 Honda Accord sedan.

Umoren is also currently pending trial in a separate 2016 federal case where he is alleged to have stolen refund money from his tax preparation clients, impersonated an FBI agent, and possessed a firearm while being a prohibited person.  

An indictment is merely a charge and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt in a court of law.

The case was investigated by the Treasury Inspector General for Tax Administration, IRS-Criminal Investigation, and the FBI. The case is being prosecuted by Assistant U.S. Attorney Patrick Burns and Trial Attorney Sarah Kiewlicz of the U.S. Department of Justice Tax Division.

###

LAS VEGAS, Nev. – A California man who was convicted of recruiting and transporting a child from California to Las Vegas, Nevada, to engage in commercial sex acts was sentenced today to 300 months in federal prison, announced U.S. Attorney Nicholas Trutanich for the District of Nevada.

After a three-day jury trial in February of 2018, Brandon Lamar Pruitt, 35, of Compton, California, was found guilty of child sex trafficking and transportation of a minor for prostitution. He was previously convicted by a jury of being a felon in possession of a firearm and tampering with a witness or a victim. In addition to the prison term, U.S. District Judge Andrew P. Gordon sentenced Pruitt to a term of lifetime supervised release.

Beginning in 2013, Pruitt persuaded and recruited a 14-year-old girl to prostitute for him. Over the course of the following three years, Pruitt convinced the minor female to stay with him and arranged her travel from California to Las Vegas to engage in commercial sex acts. He acted as the victim’s pimp, took photos of her that were posted online for prostitution dates, and booked hotel rooms for the dates. Pruitt used violent force and the victim’s romantic feelings for him to coerce and entice the victim’s compliance. The victim would give him money she earned from working as a prostitute. After he was arrested, Pruitt tampered with the victim and attempted to prevent her from cooperating with law enforcement in prosecuting the federal criminal charges. Furthermore, Pruitt unlawfully possessed two stolen guns, a Browning .22 caliber buck mark and a Glock .40 caliber, after sustaining prior felony convictions in California.

The case was investigated by the FBI, Las Vegas Metropolitan Police Department, and Innocence Lost Task Force. Assistant U.S. Attorneys Elham Roohani and Christopher Burton prosecuted the case.

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 the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, visit www.usdoj.gov/psc.

###

LAS VEGAS, Nev. – In connection with the U.S. Attorney’s Office continuing efforts to reduce violent crime through the Department of Justice’s Project Safe Neighborhoods initiative, U.S. Attorney Nicholas A. Trutanich today announced the results of three sentencings in firearms-related cases.

• Virlee Osborne, 48, of North Las Vegas, was sentenced today by U.S. District Judge Andrew P. Gordon to 54 months in prison and three years of supervised release. He pleaded guilty in August 2018, to possession of a stolen firearm. On June 27, 2017, Las Vegas Metropolitan Police Department officers arrested Osborne in connection with a separate investigation. During his arrest, officers found a pink and silver .38 revolver with an obliterated serial number inside a bag that Osborne was carrying. He admitted he knew the firearm was stolen. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Las Vegas Metropolitan Police Department.
• Armando Bazua, 35, of Compton, California, was sentenced today by U.S. District Judge Andrew P. Gordon to 40 months in prison and three years of supervised release. He pleaded guilty without the benefit of a plea agreement in December 2018, to felon in possession of a firearm. On February 10, 2017, Bazua was seen on social media posting photographs and videos shooting a .40 caliber handgun and a 9mm handgun at a firing range in Las Vegas. He has a prior felony conviction for conspiracy to possess with intent to distribute methamphetamine in California and is prohibited from possessing firearms. The case was investigated by the Department of Homeland Security Investigations.
• Julio Abundis, 24, was sentenced today by U.S. District Judge Miranda Du to 46 months in prison and three years of supervised release. He pleaded guilty in October 2018, to felon in possession of a firearm. On September 29, 2017, Abundis was stopped by Las Vegas Metropolitan Police Department officers for driving a suspected stolen vehicle. During a search of the vehicle, officers found a .38 caliber revolver under the front passenger seat. Abundis admitted it was his firearm. He has a prior felony conviction for aggravated assault in California and is prohibited from possessing firearms. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Las Vegas Metropolitan Police Department.

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.

###

LAS VEGAS, Nev. – The leader of a serial robbery crew was sentenced today to 210 months in federal prison for two armed robberies in Las Vegas, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

Cortez Harris, 29, previously pleaded guilty to conspiracy to interfere with commerce by robbery, two counts of interference with commerce by robbery, and brandishing a firearm during and in relation to a crime of violence. In addition to the prison term, U.S. District Judge Richard F. Boulware II sentenced Harris to five years of supervised release.

According to court documents, on the morning of July 13, 2017, Harris and co-conspirators Leonard Tremillo Jr., Janellcie Gibbons, and a juvenile robbed a convenience store located on S. Rainbow Blvd. in Las Vegas. Harris pointed a firearm towards the customers in the lobby, then he and the juvenile walked behind the counter. He then pointed the firearm at an employee and told the victim to open the safe. After the victim gave Harris money from the safe, he demanded more money, pointed the gun at her head, and threatened to kill her. Tremillo stayed in the lobby with the customers. They stole approximately $1,626, and fled from the business.

Less than one hour later, Harris and his co-conspirators robbed a cash advance business located on E. Bonanza Rd. Harris approached an employee and told her not to call the police while he held a firearm to her head. During the robbery, Harris pistol-whipped the victim. They stole approximately $4,838, and fled in a get-away car driven by co-conspirator, Janellcie Gibbons.

Law enforcement identified Harris and his co-conspirators from video surveillance footage at both businesses. The robbery crew was linked to a larger series of armed robberies in Utah, Texas, and Colorado, between July 3 and July 25, 2017.

Leonard Tremillo Jr. pleaded guilty and was sentenced to 108 months in prison; Janellcie Gibbons pleaded guilty and was sentenced to 87 months in prison; and the juvenile co-conspirator pleaded guilty and was sentenced in Texas for a related robbery.

The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Alexandra Michael prosecuted the case.

###

LAS VEGAS, Nev. – Following a two-day jury trial, a Las Vegas resident was convicted of distributing large quantities of Oxycodone pills, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Assistant Special Agent in Charge Daniel W. Neill for the DEA Las Vegas office.

Damien Norris, 39, was found guilty of distributing Oxycodone, a Schedule II opioid. United States District Judge Jennifer A. Dorsey scheduled sentencing for June 24, 2019. The maximum statutory penalty is 20 years in prison and a $250,000 fine.

According to evidence presented at trial, Norris trafficked large quantities of Oxycodone in Las Vegas. He sold Oxycodone to an individual who made bi-weekly trips from Arizona for the purpose of purchasing pills from Norris. On February 23, 2107, Norris sold approximately 900 30mg oxycodone pills for $15,300.

The case was investigated by the DEA. Assistant U.S. Attorney Brian Whang is prosecuting the case.

###

LAS VEGAS, Nev. – A North Las Vegas resident who was indicted with a federal child pornography charge was found guilty yesterday, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

Richard Lee Saterstad, 41, was convicted of receiving and distributing child pornography. United States District Judge Andrew P. Gordon presided over the two-day bench trial. The maximum statutory penalty is 20 years in prison, a $250,000 fine, and a life term of supervised release. If imposed by the Judge, Saterstad will also have to register as a sex offender.

Evidence presented during the trial revealed that from November 23, 2013 to March 6, 2014, Saterstad received and distributed sexually explicit videos and images containing children over the Ares file sharing program. After law enforcement executed a search warrant at his residence, law enforcement found 14 different electronic devices belonging to Saterstad contained thousands of photos and videos depicting child pornography. Saterstad is a prior convicted felon.

The case was investigated by the Internet Crimes Against Children (ICAC) Task Force. Assistant U.S. Attorneys Christopher Burton and Kevin Schiff are prosecuting the case.

If you have information regarding possible child sexual exploitation, you are urged to make a report to the National Center for Missing and Exploited Children at www.cybertipline.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.

###

A real estate broker, who failed to file federal income tax returns for nearly 20 years and attempted to evade more than half a million dollars in income taxes, was convicted today by a jury in Las Vegas, Nevada, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman and U.S. Attorney Nicholas A. Trutanich for the District of Nevada. 

William Waller Jr. was convicted of one count of attempting to evade the payment of federal income taxes of more than $500,000 for the years 2004-2009 and two counts of failing to file his 2011 and 2012 income tax returns.

According to the evidence presented at trial, Waller, after filing his tax return for 1998 reporting zero income, failed to file federal individual income tax returns for almost two decades. He concealed his real estate income from the Internal Revenue Service (IRS) with various methods, including using bank accounts in the name of a business to receive his commissions and pay his personal expenses, drawing substantial amounts of cash from those accounts, and borrowing against a piece of real property he owned to eliminate his equity in the property.  For example, despite earning income of more than $400,000 in 2011 and $170,000 in 2012, Waller filed no tax returns in those years.

Waller faces a maximum sentence of five years in prison for the tax evasion count and one year in prison on each failure to file a tax return count as well as a period of supervised release, monetary penalties and restitution.

U.S. District Judge James C. Mahan scheduled Waller’s sentencing for June 21.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich commended special agents of IRS-Criminal Investigation, who investigated the case, and United States Department of Justice Trial Attorneys Christopher Magnani and Michael Landman, who are prosecuting the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website at www.justice.gov/tax.

LAS VEGAS, Nev. – A real estate broker, who failed to file federal income tax returns for nearly 20 years and attempted to evade more than half a million dollars in income taxes, was convicted today by a jury in Las Vegas, Nevada, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman and U.S. Attorney Nicholas A. Trutanich for the District of Nevada. 

William Waller Jr. was convicted of one count of attempting to evade the payment of federal income taxes of more than $500,000 for the years 2004-2009 and two counts of failing to file his 2011 and 2012 income tax returns.

According to the evidence presented at trial, Waller, after filing his tax return for 1998 reporting zero income, failed to file federal individual income tax returns for almost two decades. He concealed his real estate income from the Internal Revenue Service (IRS) with various methods, including using bank accounts in the name of a business to receive his commissions and pay his personal expenses, drawing substantial amounts of cash from those accounts, and borrowing against a piece of real property he owned to eliminate his equity in the property. For example, despite earning income of more than $400,000 in 2011 and $170,000 in 2012, Waller filed no tax returns in those years.

Waller faces a maximum sentence of five years in prison for the tax evasion count and one year in prison on each failure to file a tax return count as well as a period of supervised release, monetary penalties and restitution.

U.S. District Judge James C. Mahan scheduled Waller’s sentencing for June 21, 2019.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich commended special agents of IRS-Criminal Investigation, who investigated the case, and United States Department of Justice Trial Attorneys Christopher Magnani and Michael Landman, who are prosecuting the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website at www.justice.gov/tax.

###

LAS VEGAS, Nev. – The Department of Justice’s Office of Juvenile Justice and Delinquency Prevention (OJJDP) awarded $1.2 million in grant funding aimed at reducing gang and youth violence in Clark County, specifically the development of programs that are crucial for the prevention, intervention, and suppression of MS-13, a transnational criminal organization, in Clark County.

“The Department of Justice views partnerships with federal, state, and local law enforcement, and community partners as a key component in combating transnational criminal enterprises,” said United States Attorney Nicholas A. Trutanich. “The U.S. Attorney’s Office Project Safe Neighborhoods program is a cornerstone of our violent crime prevention strategy and is a proven crime-reduction strategy to take violent offenders off of Nevada’s streets. We are proud to partner with law enforcement and community stakeholders to make Nevada safer.”

The application and administration of the grant is the result of a partnership by the U.S. Attorney’s Office, Nevada Office of the Attorney General, Las Vegas Metropolitan Police Department, Clark County School District School Police Department, Southwest Gang Information Center, Latin Chamber of Commerce of Nevada, University of Nevada, Las Vegas, and with commitments from the Nevada Department of Health and Human Services, Nevada Division of Child and Family Services, Nevada Division of Public and Behavioral Health, Nevada Victims of Crime Program, State of Nevada Advisory Council for Prosecuting Attorneys, and Nevada District Attorneys Association.

The U.S. Attorney’s Office intends to work with its partners to utilize the grant funds to augment its Project Safe Neighborhoods (PSN) program. The grant funds will be utilized to develop and implement culturally-specific and culturally-sensitive programs, conduct outreach, create a customized gang suppression strategy, build information exchange protocols between local jurisdictions and other agencies, and strengthen collaboration among law enforcement, prosecutors, and other key stakeholders. The goal of the program is to dismantle MS-13, disrupt illegal enterprises, incarcerate MS-13 members and affiliates, and eliminate the threat of reprehensible crimes committed by MS-13 such as rape, murder, human trafficking, and robbery, thereby creating safer, healthier neighborhoods while restoring law and order.

PSN is 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.

More information about the OJJDP can be found at https://www.ojjdp.gov/.

###

LAS VEGAS, Nev. – Nevada State Senate Majority Leader Kelvin Atkinson, who resigned his position last week, pleaded guilty in federal court to a wire fraud scheme involving the misuse of at least $249,000 of donor money on personal expenses. Those expenses included operating a Las Vegas night club, payments to personal credit cards, and leasing a luxury car.

United States Attorney Nicholas A. Trutanich for the District of Nevada, Special Agent in Charge Aaron C. Rouse of the FBI Las Vegas Office, and Special Agent in Charge Tara Sullivan for the IRS Criminal Investigation made the announcement.

“In the Silver State, the vast majority of public officials serve with integrity. They serve others, not their own self-interests,” said United States Attorney Trutanich. “Public service is a public trust. And when federal law enforcement learn of potential violations of that trust, justice requires us to do our level best to conduct a fair and dispassionate inquiry into the facts.”

“Rooting out corruption is exceptionally difficult, but it is a top criminal priority for the FBI,” said Special Agent in Charge Rouse. “Public corruption erodes public confidence and undermines the strength of our democracy. The FBI, along with our law enforcement partners, will continue to aggressively investigate elected officials who choose to exploit the public’s trust for their personal gain.”

“Public corruption erodes the trust and confidence the public has for our elected officials,” said Special Agent in Charge Sullivan. “IRS Criminal Investigation will continue to investigate individuals who violate that trust.”

Before his resignation, Atkinson, 49, represented District 4. He was elected to Nevada State Senate in November 2012, having previously served in the Nevada State Assembly since November 2002. He was named the Senate’s Majority Leader in November 2018. 

Atkinson admitted that, from at least January 2010 to about December 2017, he devised a scheme to mislead donors contributing to his campaign by falsely representing to them that he would use donations for lawful campaign purposes. But in reality, Atkinson misused contributions in his campaign account for personal expenses and not for legitimate campaign purposes.

According to the plea agreement and today’s court proceedings, the manner in which Atkinson withdrew the money, how he spent the money, where he spent it, the age of certain transactions, and his failure to keep adequate records, make Atkinson’s precise fraud amount presently indiscernible. In total, however, Atkinson admitted that he spent nearly $250,000 of unreported withdraws on personal expenses and not for legitimate campaign purposes. Atkinson’s personal spending of campaign funds included $100,000 in payments to his personal credit cards, $75,000 towards opening and operating a Las Vegas night club, and $20,000 on leasing a Jaguar Sports Utility Vehicle, among many other personal expenditures. 

Atkinson remains out of custody pending sentencing, which is scheduled for July 11, 2019. The statutory maximum term of imprisonment for wire fraud is 20 years. He has agreed to pay $249,900 in restitution.

The case was investigated by the FBI and IRS Criminal Investigation. Assistant United States Attorney Daniel R. Schiess is prosecuting the case.

###

LAS VEGAS, Nev. – Attorney General William P. Barr and U.S. Attorney Nicholas A. Trutanich today announced the largest coordinated sweep of elder fraud cases in history, surpassing last year’s nationwide sweep. The cases during this sweep involved more than 260 defendants from around the globe who victimized more than two million Americans, most of them elderly.

“Crimes against the elderly target some of the most vulnerable people in our society,” Attorney General William P. Barr said. “But thanks to the hard work of our agents and prosecutors, as well as our state and local partners, the Department of Justice is protecting our seniors from fraud. The Trump administration has placed a renewed focus on prosecuting those who prey on the elderly, and the results of today’s sweep make that clear. Today we are announcing the largest single law enforcement action against elder fraud in American history. This year’s sweep involves 13 percent more criminal defendants, 28 percent more in losses, and twice the number of fraud victims as last year’s sweep. I want to thank the Department’s Consumer Protection Branch, which led this effort, together with the Department’s Criminal Division, the more than 50 U.S. Attorneys’ offices, and the state and local partners who helped to make these results possible. Together, we are bringing justice and peace of mind to America's seniors.”

“Our goal is to reduce crime against Nevada’s seniors,” said U.S. Attorney Trutanich. “Each year an estimated $3 billion is stolen or defrauded from millions of American seniors. The U.S. Attorney’s Office has actively pursued and continues to pursue criminals who prey upon and exploit Nevada’s seniors. I commend the tremendous efforts by our partners who work tirelessly every day to bring justice for our seniors.”

Edgar Del Rio, 51, of Las Vegas, pleaded guilty to conspiring with others to defraud more than $1.5 million from senior citizens using a prize promotion scam. Between May 2011 and February 2018, Del Rio and others carried-out a direct-mail prize scam targeting seniors. The mailings misled victims to believe they would receive a large sum of money, if they paid a small fee. He faces up to 20 years in prison at the May 30, 2019, sentencing hearing.

Patti Kern, 49, of Henderson, was charged by a criminal information for her involvement in the same prize promotion scam as Del Rio. She is scheduled to plead guilty on March 14.

The U.S. Attorney’s Office has a designated Elder Justice Coordinator to help prevent crime by educating seniors about scams and other threats. The District of Nevada has a customized strategy to protect seniors and coordinates prosecutions with state and local partners.

The Department took action in every federal district across the country, through the filing of criminal or civil cases or through consumer education efforts. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of millions of more dollars than last year, putting the total alleged losses at this year’s sweep at over three fourths of one billion dollars.

The charges are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

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. The Justice Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.

The Department’s Elder Justice Initiative published its Elder Abuse Guide for Law Enforcement (EAGLE) last year. EAGLE contains helpful information for prosecutors, including overviews of state and local law as well as best practices for evidence collection, interviewing older adults, and for documenting elder abuse. EAGLE is free and available to every law enforcement officer in the country.

A fact-sheet with technical-support fraud case information can be found here.

A fact-sheet with cases on mass mailing fraud can be found here.

A fact-sheet with examples of a few elder fraud cases involving extradition in which the Office of International Affairs played a substantial role can be found here.

# # #

LAS VEGAS, Nev. – A 61-year-old man was sentenced Tuesday to 210 months in federal prison after a jury found him guilty of using a file sharing network and the internet to receive and distribute sexually explicit images and videos of children, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

Bret Alan Humphries, of Las Vegas, was convicted in August 2018 of one count of receipt and/or distribution of child pornography. In addition to the prison term, U.S. District Judge Andrew P. Gordon sentenced Humphries to a lifetime term of supervised release.

Between 2007 and 2012, Humphries downloaded child pornography and used a peer-to-peer file sharing program to share the pornography with others. Agents and Officers with the Internet Crimes Against Children Task Force executed a search warrant at his residence and seized three devices containing child pornography. After a forensic examination of the devices, law enforcement discovered 71 images and 120 video files depicting pre-pubescent children and toddlers engaged in sexually explicit conduct and being subjected to sado-masochistic sexual abuse. Computer forensics showed that Humphries had been using various file sharing networks to receive and view child pornography since as early as 2007.

The defendant was on pre-trial release pending trial in this case. While on pre-trial supervision, Humphries violated the conditions of his release by possessing a firearm and ammunition, and a portable device having access to the internet.

The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Elham Roohani and Christopher Burton prosecuted the case.

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 the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, visit www.usdoj.gov/psc.

###

LAS VEGAS, Nev. – A Las Vegas man who was convicted by a jury for using his car as a dangerous weapon as he attempted to flee from law enforcement officers was sentenced today to 92 months in prison and three years of supervised release, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada.

Brian Keith Wright, aka “Calione,” 34, was found guilty following a two-day trial in August 2018, of assault on a federal officer with a dangerous weapon, assault on a federal officer with intent to commit another felony, and assault on a federal officer. In sentencing Wright, U.S. District Judge Jennifer A. Dorsey stated that the 92-month sentence was necessary because of the defendant’s “flagrant disrespect for the law” and the safety of the community.

In February 2016, Wright was placed on federal supervised release as part of his sentence arising from a separate felony conviction for being a felon in possession of a firearm. In February 2017, members of the FBI’s Las Vegas Safe Streets Task Force attempted to execute an arrest warrant issued by a federal judge for alleged violations of Wright’s supervised release conditions along with a state search warrant for Wright’s residence. Upon arriving at the residence, law enforcement knocked and announced their presence. Wright failed to open the door causing law enforcement to force entry into the house. As they were doing so, Wright attempted to flee the residence in his BMW sedan by pulling out of the garage in an erratic manner. Seeing that his escape route was partially blocked by an officer’s vehicle, Wright continued to reverse his vehicle until he struck the officer’s car, causing the officer to quickly move out of the way to avoid being struck. Wright initially refused to comply with officers’ commands to stop and exit his vehicle after he was surrounded by task force members with their weapons drawn. After finally complying with the officers’ commands, Wright was arrested.

The case was investigated by the FBI Safe Streets Task Force. Assistant U.S. Attorneys Nadia Ahmed and Alexandra Michael prosecuted the case.

###

LAS VEGAS, Nev. – A 30-year-old man was sentenced today to 57 months in federal prison after he pleaded guilty to selling Fentanyl, a dangerous synthetic opioid with the street name “China White,” in North Las Vegas, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

Angel Garcia Flores, of Las Vegas, pleaded guilty to conspiracy to distribute Fentanyl and was sentenced by U.S. District Judge James C. Mahan. In addition to the prison term, Flores was sentenced to three years of supervised release following his release from prison.

As part of a drug conspiracy, on January 30, 2018, Flores and others agreed to sell approximately 4,550 grams, or 10 pounds, of Fentanyl for $200,000. The mid-day drug sale took place at a gas station in North Las Vegas while other customers were present. A co-conspirator gave Flores a firearm and was told to watch the other person’s back during the drug transaction.

Co-conspirator Archie Elmer-Lokela Gorai pleaded guilty and was sentenced to 57 months in prison.

The case was investigated by the FBI, ATF, and Nevada Gaming Control Board. Assistant U.S. Attorney Brandon Jaroch prosecuted the case.

Fentanyl poses a high risk of death not only to users, but 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. The powerful synthetic opioid is 80 to 100 times stronger than morphine and is added to heroin to increase its potency. Many users believe that they are purchasing heroin and actually don’t know that they are purchasing Fentanyl – which often results in overdose deaths.

###

LAS VEGAS, Nev. – Former Las Vegas illusionist Jan Rouven Fuechtener was sentenced today to 240 months in federal prison and ordered to pay a $500,000 fine for possession, receipt, and distribution of more than 9,000 images and videos of child pornography, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Field Office. Due to this conviction, Fuechtener will be deported from the United States after serving his sentence, and will be barred from returning for any purpose.

“Today’s sentencing is another example of law enforcement’s steadfast commitment to this office’s Project Safe Childhood initiative,” said U.S. Attorney Trutanich. “Federal law enforcement, along with the U.S. Attorney’s Office, will aggressively investigate and prosecute those that exploit children. The lengthy prison sentence imposed vindicates the victims of this defendant’s crimes and sends the message that justice was done.”

“We have no greater duty than to protect the most vulnerable among us, and the men and women of the FBI will continue to relentlessly pursue those who seek to harm our children,” said Special Agent in Charge Rouse. “Every time child pornography is viewed on the internet a child is revictimized.”

Fuechtener, who used an online alias of Lars Schmidt, 40, a citizen of Germany, pleaded guilty on Nov. 17, 2016, during his bench trial for the criminal charges. Instead of proceeding with sentencing, he filed a motion to withdraw his guilty plea on June 22, 2017. Over the course of a five-day evidentiary hearing, Fuechtener’s former attorneys testified that they had advised him of details of the plea agreement, including potential penalties and consequences of the plea. At the hearing, Fuechtener personally testified and called a fellow inmate, who is also charged with child pornography offenses, to testify on his behalf. The Court believed the testimony of Fuechtener’s former attorneys and denied the motion to withdraw on June 15, 2018.

In his plea agreement, Fuechtener admitted that he shared numerous child pornography files on GigaTribe, a peer-to-peer file sharing program. During the execution of a search warrant of Fuechtener’s residence, law enforcement found over 9,000 images and videos depicting children engaging in sexually explicit conduct. These files were found on nine devices collected from all over Fuechtener’s home. Fuechtener further admitted that he used the Skype username “larusa22” to engage in chats to distribute child pornography by sharing his GigaTribe “Lars45” folder in exchange for watching a father sexually assault his daughter, and that he used Grindr to chat with others about coordinating to drug and sexually molest a young boy.

The investigation was conducted by the FBI. Assistant U.S. Attorneys Elham Roohani and Lisa Cartier-Giroux prosecuted the case.

To report an incident involving the possession, distribution, receipt, or production of child pornography, contact the National Center for Missing & Exploited Children by phone at 1-800-843-5678 or online 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. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

###

LAS VEGAS, Nev. – The leader of a large-scale timeshare resale scam was sentenced today to 63 months in federal prison for defrauding more than 1,000 victims, many of them elderly, out of more than $3.3 million, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

“Today’s sentence demonstrates law enforcement’s commitment to protecting vulnerable elder populations in Nevada,” said U.S. Attorney Trutanich. “Elder fraud and exploitation can have a crippling effect on victims, and federal prosecutors will pursue financial fraudsters who exploit our most vulnerable for personal and financial gain.”

Daniel Martin Boyar, aka “Wolf,” 64, of Orlando, Florida, previously pleaded guilty to conspiracy to commit mail fraud and wire fraud, two counts of mail fraud, and two counts of wire fraud. In addition to the prison term, U.S. District Judge James C. Mahan sentenced Boyar to three years of supervised release and ordered him to pay $3.37 million in restitution to the victims of the fraud scheme.

Between October 2010 to April 2012, Boyar, the admitted leader of the scheme, and his 20 co-conspirators devised and participated in a telemarketing scam to defraud more than 1,000 timeshare owners out of more than $3.3 million dollars. Using stolen data to identify timeshare owners, the defendants promised to sell the timeshares in return for the owner paying in advance half of the costs associated with the purported sales. There were no buyers and the timeshare sales never occurred. This is a common criminal telemarketing scheme known as “the buyer’s pitch.” Boyar was directly responsible for more than $3.3 million in losses to the victims.

The scam operated out of Orlando, Florida, under numerous business names including Holiday Advertising, First Capital Financial Services Corporation, Professional Concepts LLC, TeleTeton Corporation, Redline Funding LLC, Great West Funding Incorporated, Equity Financial Services LLC, Beneficial Business Solutions, Eastern Enterprises LLC, Vacation Funding Partners LP, Property, People, Travel, and Community Funding Corporation, using fake front companies in various cities across the United States, including Las Vegas, Nevada. Boyar and his co-conspirators would use false identities and lease temporary office spaces around the country. This allowed them to establish front companies using inactive companies which made the scam appear legitimate. Using voice-over-internet phone systems, they spoofed telephone numbers that made it appear that they were calling from the location of the fake front company. Callers in the scheme pretended to be in the distant office, using the internet to track the weather and local news in the location of the fake front company and inviting victims to view the leased building on mapping websites. The conspirators created websites with materially false and misleading information to include customer testimonials, company officers, and press releases. 

Twenty of Boyar’s co-conspirators were charged and have pleaded guilty for their involvement in this fraud scheme. Six, in addition to Boyar, have been sentenced. The remainder await sentencing.

The case was investigated by the FBI, the U.S. Postal Inspection Service, and the Florida Department of Agriculture and Consumer Services. Assistant U.S. Attorney Dan Cowhig prosecuted the case.

Consumers should use caution when previously unknown telemarketers offer unsolicited services. It is relatively easy for scam artists to create the appearance of legitimacy for a fraudulent business front by manipulating information available through the Internet. Fraudsters frequently are able to buy or steal information related to their intended victims that the victim believed was confidential, helping the fraudster trick the victim into believing the fraudster is part of a legitimate business.

Elder fraud complaints may be filed with the Federal Trade Commission at www.ftccomplaintassistant.gov or at 1-877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime at www.ovc.gov. Additional elder justice resources, training, and outreach materials can be found at the Elder Justice Website at www.elderjustice.gov.

###

LAS VEGAS, Nev. – A Las Vegas photographer who posed as a professional modeling photographer and alternative sports sponsor to lure children on the promise of sponsorships pleaded guilty today in federal court in connection to a child sexual exploitation conspiracy, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Field Office.

William Clyde Thompson, 58, of Las Vegas, pleaded guilty to child exploitation enterprise, sexual exploitation of a child, conspiracy to produce child pornography, distribution of child pornography, conspiracy to distribute child pornography, and possession of child pornography. He was indicted in September 2013 in Nevada and in 2015 in Arizona. United States District Judge Jennifer A. Dorsey scheduled a sentencing hearing for May 28, 2019.

According to admissions contained in the binding plea agreement, in November 2011, Thompson took sexually explicit photos and videos of a 10-year-old boy. He later introduced the victim, who was a skateboarder, to a potential sponsor. In November 2012, the victim’s mother made a report to the Las Vegas Metropolitan Police Department after the potential sponsor informed her that he believed her child was being sexually exploited. Later that month during the execution of search warrants, multiple digital devices belonging to Thompson were seized from his residence and studio. A forensic examination of the devices revealed over 10,000 files of child sexual exploitation photos and videos.

In January 2013, Thompson was arrested in Nevada on child pornography charges and the state court ordered him released on house arrest. However, Thompson cut off his ankle bracelet and fled the Las Vegas area. He was later indicted on federal charges in September 2013.

While on the run from law enforcement, Thompson contacted at least six boys in the spring and summer of 2014 at the Needles California Skate Park. He identified himself as “Tony Bailor” and “Jason Brock” and told the boys he was a “scooter sponsor.” He and others provided the boys with gifts to induce their compliance and to recruit other minors to be part of the “team” that he claimed he wanted to sponsor. In reality, Thompson and others recruited the “team” with the intention to produce child pornography and to sexually abuse the boys.

Thompson convinced the boys to travel without their parents to his Mohave Valley, Arizona, residence for photo shoots on several occasions. He told the boys they would be paid for the photos and that he would resell the photos online through a website. He told them that prospective buyers had requested specific boys, poses, and clothing in the creation of the pornographic depictions. The boys complied with Thompson’s requests because of the money, alcohol, and marijuana he provided them. Over a six-month period, Thompson produced over 20,000 images and videos depicting sexually explicit content of the children.

Thompson and a co-conspirator created multiple websites to distribute the child pornography he created. Thompson would post sample child pornography photos on one of the websites and when someone purchased the photos based on the sample, he would send the purchaser a hyperlink to the child pornography files on a cloud-based service.

In January 2015, Thompson was arrested during a traffic stop in Mohave Valley, Arizona. At the time of his arrest, law enforcement recovered digital devices belonging to Thompson that contained over one million images and ranged from child erotica to child pornography of several victims.

Both parties jointly recommended Thompson be sentenced to 354 months in prison with a lifetime term of supervised release. As part of the plea agreement, he agreed to pay full restitution to his victims.

The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Christopher Burton and Elham Roohani are prosecuting the case.

If you have information regarding William Clyde Thompson, you are urged to contact the nearest FBI field office or local law enforcement. To remain anonymous, call Crime Stoppers at (702) 385-5555 or visit www.crimestoppersofnv.com, or contact the National Center for Missing & Exploited Children (NCMEC) 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. 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.

###

LAS VEGAS, Nev. – A Las Vegas woman was sentenced yesterday to 34 months in federal prison and ordered to pay more than $13.9 million in restitution to victims in connection with a series of grant fraud schemes, announced U.S. Attorney District Nicholas A. Trutanich for the District of Nevada. The woman’s fraud schemes targeted small business owners, many of them elderly, and a separate Medicare and insurance fraud scheme.

Lorraine Riddiough, aka Lorraine Ann Mader, 70, of Las Vegas, was also sentenced to five years of supervised release by U.S. District Judge Andrew P. Gordon. The sentencing combined four separate cases. Riddiough pleaded guilty last year to four counts of conspiracy to commit mail and wire fraud, two counts of wire fraud, and one count each of health care fraud and theft of government property.

From October 2009 to Spring 2013, Riddiough and others conspired to defraud small business owners by falsely telling the business owners that they qualified for grants, which Riddiough and others promised to secure for the business owners for a fee, usually between $2,500 and $7,000. Riddiough and the others did not provide the promised services or obtain grants for the small business owners. After scamming the initial $2,500 to $7,000 from the victim, Riddiough and the others often told the victims that grants had been approved, but that additional steps and fees were needed to access that grant. More than 25 victims suffered significant financial hardship as a result of the losses from the advance-fee telemarketing scheme. Riddiough herself directly obtained approximately $444,224 from the victims.

Riddiough admitted that after the telemarketing schemes were shut down by law enforcement intervention in 2014, she faked medical conditions, ailments, and injuries related to a minor, low-speed car accident to steal Medicaid benefits and funds from the Government Employees’ Insurance Company (GEICO). She filed a series of false claims related to the traffic accident and made a series of fake medical complaints including her inability to work and drive her car due to her injuries. She received treatment and medication for the non-existent injuries she falsely claimed.

The cases were investigated by the FBI. Assistant U.S. Attorney Dan Cowhig prosecuted the cases.

###

LAS VEGAS, Nev. – United States Attorney Nicholas A. Trutanich announced today that the District of Nevada collected $7,219,564 in criminal and civil actions in Fiscal Year 2018. Of this amount, $4,090,476 was collected in criminal actions and $3,129,088 was collected in civil actions. 

The District of Nevada also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $11,949,827 in cases pursued jointly by these offices.

As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending September 30, 2018. The $14,839,821,650 in collections in fiscal year 2018 is nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.

“The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. The money that we are able to recover for victims and this country as a whole is a direct result of their hard work,” Director James A. Crowell, IV, Executive Office for U.S. Attorneys.

“We are fully committed to seeking justice for victims of crime, and we will use all available tools and resources to collect restitution and fines,” said U.S. Attorney Trutanich. “The more than $7.2 million recovered in fiscal year 2018 by our office is a testament to the efforts by dedicated Assistant U.S. Attorneys and staff, especially the office’s Financial Litigation Unit, who collects funds on behalf of victims and the federal treasury. I thank our staff for their persistence and hard work in the successful recovery of civil and criminal funds.”

Major case highlights include:

• Cardiovascular and Thoracic Surgeons of Nevada, Inc. paid $1.5 million to resolve allegations related to its potential liability under the False Claims Act. The Las Vegas medical practice, whose principal physician was Dr. Bashir Chowdhry, billed federal healthcare programs, including Medicare and the U.S. Department of Veterans Affairs, for surgical services not actually provided to its cardiac patients, and also billing for more expensive surgical and evaluation and management services than those actually provided to its patients.

• Concord Treatment Center, d/b/a Desert Hope Treatment Center, was audited by the DEA, which found that a Desert Hope employee had ordered and diverted 1,900 dosage units of Schedule II-IV controlled substances, and that Desert Hope had failed to maintain proper records for 12 Schedule II-IV controlled substances. Desert Hope paid a $250,000 civil penalty, surrendered the DEA registration for its internal pharmacy, and retained a subcontractor to manage its internal pharmacy in the future.

 

The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.

The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.

###

LAS VEGAS, Nev. – Two men made their initial appearances in federal court yesterday on charges related to the possession of 65 firearms, including machine guns, and silencers, stolen at a Las Vegas gun show last month, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Ray Roundtree of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

Jamikko Foster, 27, and Eduardo Limon, 28, both of Las Vegas, were each charged with possession of a stolen firearm and possession of an unregistered firearm. Foster is also charged with theft of a firearm from a Federal Firearms Licensee (FFL) and unlawful possession of a machine gun. United States Magistrate Judge Nancy Koppe set a preliminary hearing for both defendants for February 27, 2019.

As alleged in the criminal complaint, from January 20 to 29, 2019, a total of 65 firearms and suppressors, also known as “silencers,” were stolen from the business inventory of three separate FFLs at the 2019 Shooting, Hunting, and Outdoor Trade (SHOT) Show in Las Vegas. The SHOT Show, held annually at a Las Vegas convention center, requires FFLs to either disable or remove the firing pins from all displayed firearms. Based on these circumstances, ATF issued an alert to FFLs to be on the lookout for weapons missing firing pins.

On February 10, a FFL alerted ATF about two men who inquired about purchasing a firing pin for an AR-style firearm. ATF was able to identify Foster and Limon from surveillance footage.

On February 11, law enforcement executed a search warrant at Foster’s apartment where they recovered 56 firearms, machine guns, and silencers. The next day, a search warrant was executed at Limon’s residence and law enforcement recovered an additional 10 firearms and silencers. One of the recovered pistols had a clamp attached to a security cable, which was still attached to the trigger guard.

If convicted, the maximum statutory penalty is 10 years in prison for each count and a $250,000 fine.

The charges contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty in a court of law.

The case was investigated by the ATF San Francisco Field Division’s Las Vegas Field Office and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Phillip N. Smith Jr. is prosecuting the case.

To report a tip about stolen firearms contact the ATF at 1-888-ATF-TIPS (1-888-283-3473).

###

RENO, Nev. – A member of the Te-Moak of the Western Shoshone pleaded guilty today to stabbing an elderly man multiple times, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

Jean Angela Ortega, aka Angel Jim, 41, pleaded guilty to assault resulting in serious bodily injury. She is an enrolled member of the Te-Moak Tribe of the Western Shoshone. United States District Judge Howard D. McKibben scheduled sentencing for May 29, 2019.

According to court documents, on February 1, 2018, an officer with the Bureau of Indian Affairs responded to a possible stabbing incident at a house within the territorial boundaries of the Elko Indian Colony for the Te-Moak Tribe of Western Shoshone, in Elko, Nevada. Upon arriving at the house, the officer found a 78-year-old man on the floor bleeding from multiple stab wounds. He was transported to the North Eastern Nevada Regional Hospital and later flown by an emergency medical helicopter to Salt Lake City, Utah, for further treatment, including surgery. Ortega admitted that she assaulted and stabbed the victim in the abdomen, arm, and back.

Ortega faces the maximum statutory penalty of 10 years in prison and a $250,000 fine.

The case was investigated by the Bureau of Indian Affairs and FBI. Assistant U.S. Attorney Sue Fahami is prosecuting this case.

###

LAS VEGAS, Nev. – A Las Vegas man who repeatedly played the game of “truth or dare” with an autistic girl to entice her to send him sexually explicit photos was sentenced to eight years in federal prison to be followed by lifetime supervised release, announced U.S. Attorney District Nicholas A. Trutanich for the District of Nevada.

“The defendant in this case exploited a vulnerable victim with special needs,” said U.S. Attorney Trutanich. “The Department of Justice’s Project Safe Childhood initiative brings together a network of law enforcement partners to protect children from those who would exploit their vulnerabilities and my office will continue to support the cause of keeping children in Nevada safe.”

Fredy Hernandez-Gomez, 32, previously pleaded guilty to receipt of child pornography before U.S. District Judge Kent J. Dawson.

Hernandez-Gomez admitted that in April 2017, he began exchanging text messages with his friend’s autistic 13-year-old girl daughter. He and the girl would “dare” each other to do various things and he used the “dares” to induce her to comply and to reduce the risk that she would tell her parents. On May 5, 2017, he texted the girl to send him photos of herself telling her to “be daring,” and “don’t be shy.” They continued to exchange sexually explicit text messages. When the girl sent sexually explicit photos of herself, Hernandez-Gomez texted “I like them” and then “Erase it.” The girl’s parents subsequently discovered the text messages and made a report to the police. During an interview with law enforcement, Hernandez-Gomez admitted to sending the victim text messages and asking her to send him sexually explicit photos of herself. Hernandez-Gomez admitted to receiving the sexually explicit photos he requested.

During the investigation, the minor victim reported that Hernandez-Gomez also sexually abused her. Hernandez-Gomez subsequently was charged with and pleaded guilty in Clark County District Court to one count of attempted sexual assault. On January 3, 2019, Hernandez-Gomez was sentenced in connection with that case to eight to 20 years in prison.

The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Christopher Burton prosecuted the case.

If you have information regarding possible child sexual exploitation, you are urged to make a report to the National Center for Missing and Exploited Children at www.cybertipline.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.

###

On Feb. 7, 2019, a federal grand jury returned an indictment charging Saud Alessa, Jeffrey Bowen, and Jackie Hayes, with conspiring to defraud the Internal Revenue Service (IRS), and additionally charged Alessa with tax evasion and filing false tax returns, announced Principle Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney Nicholas A. Trutanich for the District of Nevada.

According to the indictment, Bowen was the President and owner of a vacuum cleaner distributing company in Reno, Nevada.  Alessa worked for Bowen’s company on sales teams from 1998 to 2006.  During those years, Alessa allegedly accrued over $200,000 in unpaid federal income tax.  In 2006, the IRS began attempting to collect Alessa’s outstanding tax liabilities.  Alessa allegedly did not voluntarily pay any of his outstanding debt to the IRS, and in 2013, Alessa filed a bankruptcy petition reporting that he owed a federal tax debt of $503,821 to the IRS.

The indictment charges that between 2010 and 2013 Alessa, Alessa’s longtime domestic partner Hayes, and Bowen conspired to conceal Alessa’s business activity and income from the IRS. Alessa’s commissions and other earned income earned were allegedly recorded in Bowen’s company’s books in Hayes’s name and paid to Hayes instead of Alessa.  Alessa, Bowen, and Hayes allegedly filed fraudulent documents with the IRS that disguised the commissions and other income earned by Alessa as income earned by Hayes.  In order to further the scheme, the co-conspirators allegedly made false and misleading statements to the IRS, the United States Bankruptcy Court, and the United States Trustee’s office to convince the authorities that Alessa had no business activity and no source of income that could be used to pay Alessa’s outstanding tax debt to the IRS.

The indictment also charges Alessa individually with evading the payment of taxes, penalties and interest due and owing to the IRS for tax years 1998 through 2007, and with filing false income tax returns for 2012 and 2013. 

If convicted, Alessa, Bowen, and Hayes each face a maximum sentence of five years in prison on the conspiracy counts.  Alessa faces an additional five years in prison on the tax evasion count and an additional three years in prison on each false return count.  Alessa, Bowen, and Hayes also face a period of supervised release and monetary penalties. 

An indictment is an accusation.  A defendant is presumed innocent unless and until proven guilty.

IRS-Criminal Investigation investigated the case.  Trial Attorneys Christopher Strauss and Michael Landman, both of the Tax Division, along with Assistant United States Attorney Sue Fahami, are prosecuting the case.

RENO, Nev. - On Feb. 7, 2019, a federal grand jury returned an indictment charging Saud Alessa, Jeffrey Bowen, and Jackie Hayes, with conspiring to defraud the Internal Revenue Service (IRS), and additionally charged Alessa with tax evasion and filing false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney Nicholas A. Trutanich for the District of Nevada.

According to the indictment, Bowen was the President and owner of a vacuum cleaner distributing company in Reno, Nevada. Alessa worked for Bowen’s company on sales teams from 1998 to 2006. During those years, Alessa allegedly accrued over $200,000 in unpaid federal income tax.  In 2006, the IRS began attempting to collect Alessa’s outstanding tax liabilities. Alessa allegedly did not voluntarily pay any of his outstanding debt to the IRS, and in 2013, Alessa filed a bankruptcy petition reporting that he owed a federal tax debt of $503,821, to the IRS.

The indictment charges that between 2010 and 2013 Alessa, Alessa’s longtime domestic partner Hayes, and Bowen conspired to conceal Alessa’s business activity and income from the IRS. Alessa’s commissions and other earned income earned were allegedly recorded in Bowen’s company’s books in Hayes’s name and paid to Hayes instead of Alessa. Alessa, Bowen, and Hayes allegedly filed fraudulent documents with the IRS that disguised the commissions and other income earned by Alessa as income earned by Hayes. In order to further the scheme, the co-conspirators allegedly made false and misleading statements to the IRS, the United States Bankruptcy Court, and the United States Trustee’s office to convince the authorities that Alessa had no business activity and no source of income that could be used to pay Alessa’s outstanding tax debt to the IRS.

The indictment also charges Alessa individually with evading the payment of taxes, penalties and interest due and owing to the IRS for tax years 1998 through 2007, and with filing false income tax returns for 2012 and 2013. 

If convicted, Alessa, Bowen, and Hayes each face a maximum sentence of five years in prison on the conspiracy counts. Alessa faces an additional five years in prison on the tax evasion count and an additional three years in prison on each false return count. Alessa, Bowen, and Hayes also face a period of supervised release and monetary penalties. 

An indictment is an accusation.  A defendant is presumed innocent unless and until proven guilty.

IRS-Criminal Investigation investigated the case. Trial Attorneys Christopher Strauss and Michael Landman, both of the Tax Division, along with Assistant United State Attorney Sue Fahami are prosecuting the case.

###

LAS VEGAS, Nev. – A Las Vegas man who uploaded child pornography to an instant messaging site was sentenced yesterday to 18 years and one month in federal prison to be followed by a lifetime term of supervised release, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division.

Steven Wilson, 35, of Las Vegas, previously pleaded guilty to distribution of child pornography and was sentenced by U.S. District Judge Kent J. Dawson.

In November 2016, Wilson uploaded seven images of child pornography to the Yahoo! messenger application. Law enforcement determined the images were uploaded at an apartment belonging to Wilson. A search warrant was executed at his residence. He admitted to law enforcement that he possessed and distributed child pornography in chat rooms, as well as through Yahoo! messenger. A forensic examination of devices belonging to Wilson revealed over 750 images and videos of child pornography, including 44 images and videos depicting infants and toddlers and numerous images depicting violence.

During the investigation, a minor victim reported that Wilson had sexually abused her.  Wilson subsequently was charged with and pleaded guilty in Clark County District Court to one count of attempted sexual assault.  On January 29, 2019, Wilson was sentenced in connection with that case to five to 15 years in prison.

The case was investigated by the FBI. Assistant U.S. Attorney Christopher Burton prosecuted the case.

If you have information regarding possible child sexual exploitation, make a report to the National Center for Missing and Exploited Children (NCMEC) 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. 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.

###

LAS VEGAS, Nev. – A Florida resident was sentenced Tuesday to 27 months in federal prison and three years’ supervised release for committing a $1.3 million mail fraud scheme, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

Maria Jesus Luciano, 67, of Tampa, Florida, previously of Las Vegas, pleaded guilty without the benefit of a plea agreement to 11 counts of mail fraud. In addition to the prison term, U.S. District Judge Andrew P. Gordon ordered her to pay $1,292,748 in restitution.

According to court documents, Luciano resided in Las Vegas in 2010 and 2011. During that time period, Luciano befriended 48-year-old James McMillan. After relocating to Tampa in 2011, Luciano fraudulently represented to McMillan that she had a pending settlement award from the U.S. Department of Veterans Affairs and that she would share the settlement award with McMillan if he provided her money to pay fees, interest, and other costs related to obtaining the settlement award.  In fact, although she served briefly in the U.S. Army and received some benefits from the U.S. Department of Veterans Affairs for a non-military service related disability, Luciano was not entitled to any large monetary award or settlement.

In July 2013, Luciano mailed McMillan a fake promissory note granting him an interest in the purported settlement award. McMillan in turn used his position as a controller at a large real estate investment business to embezzle and steal approximately $1.3 million from the business and its investors.  He mailed Luciano numerous envelopes and packages containing the stolen money, which Luciano used for gambling and personal expenses.

On May 2, 2017, McMillan pleaded guilty to wire fraud in a separate case and is pending sentencing before U.S. District Judge Gordon.

The case was investigated by the FBI with assistance from the Offices of Inspectors General for the U.S. Department of Housing and Urban Development and the U.S. Department of Veterans Affairs. Assistant U.S. Attorney Patrick Burns prosecuted the case.

###

 

RENO, Nev. – The Vice Chief of Staff for Humboldt County General Hospital in Winnemucca, Nevada, pleaded guilty Tuesday to illegally writing prescriptions for dangerous and addictive narcotics, such as the opioids Oxycodone and Hydrocodone, without a medical purpose, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada.

“Federal law enforcement in Nevada is helping to stem the rising tide of illicit prescriptions in the state,” said U.S. Attorney Trutanich. “We remain committed to investigating and prosecuting doctors who abuse their position of trust and fuel the opioid epidemic.”

Dr. Shouping Li, 57, of Winnemucca, pleaded guilty to distribution of a controlled substance, specifically Oxycodone and Hydrocodone. He is a licensed physician specializing in family medicine with a concentration in cardiovascular disease. United States District Judge Miranda Du accepted the guilty plea.

Dr. Li admitted that between August 2015 and February 2018, he prescribed Oxycodone and Hydrocodone, both opioid pain medications, to patients outside the usual course of his professional practice and without a legitimate medical purpose. He further admitted that several of his patients passed away while he actively attended to them.

At the June 10, 2019, sentencing hearing, Dr. Li faces the maximum penalty of 20 years in prison and a fine of $1,000,000.

The case is being investigated by the FBI, Tri-County Drug Enforcement Team, Nevada Department of Public Safety, Humboldt County Sheriff's Office, Winnemucca Police Department, Elko Combined Narcotics Unit, Elko Police Department, Elko County Sheriff's Office, and the Office of Inspector General of the U.S. Department of Health and Human Services. Assistant U.S. Attorney Sue Fahami is prosecuting the case.

If you have a tip or information about illegal sales or distribution of prescription opioids, including Fentanyl, Oxycodone, and Hydrocodone by doctors and pharmacies, call the DEA at 1-877-RX-Abuse (792-2873) or contact the FBI at tips.fbi.gov.

For information about the harmful effects of illicit drug use, visit www.JustThinkTwice.com for teens and www.GetSmartAboutDrugs.com for parents, educators, and caregivers.

The Opioid Fraud and Abuse Detection Unit is a program that utilizes data to help combat the devastating opioid crisis. The District of Nevada was selected as one of 12 districts nationally to participate in the pilot program. Since its formation, more than seven doctors and medical professionals have been prosecuted in the District of Nevada. The District of Nevada has assigned an experienced prosecutor that focuses solely on investigating and prosecuting health care fraud related to medical professionals who prescribe opioids, that unlawfully divert of dispense prescription opioids for illegitimate purposes.

###

LAS VEGAS, Nev. – A Las Vegas man was sentenced today for receiving and distributing over 400 images and 22 videos of child pornography, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division.

Adam Burley, 26, was sentenced to 144 months in federal prison and lifetime supervised release by U.S. District Judge Kent J. Dawson. He previously pleaded guilty to receipt or distribution of child pornography.

In July 2016, Burley uploaded eight photos of child pornography from his cell phone to the website Chatango. Law enforcement determined the images were uploaded from Burley’s apartment. During the execution of a search warrant at his apartment, he admitted to law enforcement that he uploaded child pornography to the website and he received child pornography on his phone. A forensic examination of his phone revealed over 400 sexually explicit images and videos.

The case was investigated by the FBI. Assistant U.S. Attorney Christopher Burton prosecuted the case.

If you have information regarding possible child sexual exploitation, make a report to the National Center for Missing and Exploited Children (NCMEC) 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. 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.

###

RENO, Nev. – Two drug traffickers were sentenced today to a total of 16 years in federal prison after a traffic stop in Carson City for speeding led to the discovery of large quantities of methamphetamine and heroin in their car, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI.

“Those who deal highly addictive drugs, like methamphetamine and heroin, prey on the addictions of others and damage communities,” said U.S. Attorney Trutanich. “We were able to successfully prosecute this case thanks to our strong law enforcement partnerships.”

“Drug traffickers will continue to be the focus of the FBI’s Northern Nevada Safe Streets Gang Task Force because no one in our community should have to live in fear of the activity that drug trafficking brings to their neighborhoods,” said Special Agent in Charge Rouse.

Danny Lyle Jensen II, 39, and Kimberly Lopes, 37, both of Henderson, were sentenced to 130 months and 63 months, respectively, and five years of supervised release by U.S. District Judge Howard D. McKibben. They previously pleaded guilty to conspiracy to possess with intent to distribute and to distribute at least 500 grams of methamphetamine.

On December 6, 2017, a deputy with the Carson City Sheriff’s Office observed a car speeding and attempted to conduct a traffic stop of the vehicle. During the traffic stop, the deputy noticed Jensen and Lopes’ hands were shaking as they looked for the vehicle registration and insurance, they avoided eye contact, and they provided different cities when asked about their destination. The deputy noticed in plain view a spoon in the passenger door compartment and a roll of shrink wrap in the back seat, both are items often associated with drug use and classified as drug paraphernalia. During a search of the vehicle with a drug detection K9, a total of two kilograms of methamphetamine and a half pound of heroin were discovered concealed in packages in the interior firewall of the trunk.

The case was investigated by the FBI and the Carson City Sheriff’s Office. Assistant U.S. Attorney Jim Keller prosecuted the case.

###

LAS VEGAS, Nev. – A felon who shot a person with a loaded stolen semi-automatic pistol was sentenced today to a total of 57 months in federal prison, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI.

“DOJ’s Project Safe Neighborhoods Program is designed to take guns off our streets and make our communities safer,” said U.S. Attorney Trutanich. “This case demonstrates the dangers of local police work and importance of strong local and federal partnerships to protect the citizens of Nevada. Law enforcement will work together to enforce gun laws.”

“Today’s sentencing is yet another example of the result that comes from strong law enforcement partnerships,” said Special Agent in Charge Rouse. “The Criminal Apprehension Team (CAT) is a FBI-led, multijurisdictional task force consisting of the FBI, Las Vegas Metropolitan Police Department, Henderson Police Department, and North Las Vegas Police Department, that targets the most violent fugitives.”

Steven Lamar Reed, 28, of Las Vegas, previously pleaded guilty to one count of felon in possession of a firearm. He has prior felony convictions in California including robbery and felon in possession of a firearm. In addition to the prison term, U.S. District Judge Kent J. Dawson sentenced him to three years of supervised release.

On April 11, 2017, members of the FBI’s CAT attempted to arrest Reed for his involvement in an earlier shooting. He also had an arrest warrant for a felony parole violation in California. When officers identified themselves and approached Reed at an apartment complex, he immediately fled, leading officers on a lengthy foot chase. Before climbing a wall in an attempt to evade arrest, a .45 caliber pistol fell from his waistband and the pistol was secured by law enforcement. This firearm had been previously stolen in a residential burglary and was used by Reed in the earlier shooting. Reed was taken into custody by law enforcement.

The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Phillip N. Smith Jr. and Elham Roohani prosecuted the case.

This case was 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.

###

RENO, Nev. – A Winnemucca tax preparer was sentenced today to a total of five years in federal prison for his role in a tax return conspiracy, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Tara Sullivan for the IRS-Criminal Investigation.

“As tax season approaches, today’s sentence serves as a reminder that preparing or filing false tax returns is crime,” said U.S. Attorney Trutanich. “Our office will continue to work closely with the IRS to pursue justice when individuals attempt to evade tax obligations.”

“Mr. Bidegary used his knowledge as a former IRS employee to steal from his clients and the government,” said SAC Sullivan. “Mr. Bidegary does not represent the integrity of IRS employees and IRS-Criminal Investigation will continue to prosecute cases that bring harm to both the community and the government.”

Thomas Michael Bidegary, 67, a former IRS employee who co-owned Winnemucca Tax and Bookkeeping Service, a tax preparation and bookkeeping services business, previously pleaded guilty to conspiracy to commit tax fraud and theft of government money, related to two separate criminal indictments. In addition to the prison term, U.S. District Judge Robert C. Jones sentenced Bidegary to three years of supervised release.

Bidegary conspired with a co-defendant to prepare and file fraudulent individual income tax returns on behalf of clients. Beginning in at least 2009 and continuing through December 2014, he advised clients that by making small “investments” into various businesses he owned, the clients could decrease their annual taxable income and increase their tax refunds. As part of the scheme, after receiving checks from clients, Bidegary would prepare false tax forms for the corresponding tax year that included large fictitious business losses in order to reduce the client’s taxable income and obtain a larger refund than what the client was entitled to receive. As a result of the false tax returns, he caused a tax loss of approximately $259,880.

In a separate criminal case filed against Bidegary, he prepared and filed an unauthorized tax return on behalf of an elderly woman in Battle Mountain, Nevada. After receiving the $12,500 tax refund, he deposited the check into a bank account which was then converted for his own personal use.

The case was investigated by the IRS-Criminal Investigation. The case was prosecuted by Assistant U.S. Attorney Sue Fahami. 

###

LAS VEGAS, Nev. – A North Las Vegas resident was sentenced to 10 years in federal prison for distributing images of child pornography to his Tumblr account, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada.

Johne Lewis Owens II, 43, of North Las Vegas, previously pleaded guilty to one count of distribution of child pornography. In addition to the prison term, U.S. District Judge Jennifer A. Dorsey ordered a lifetime term of supervised release.

Between November 2015 and May 2016, Owens admitted that he uploaded numerous images of child pornography to his Tumblr account. On May 14, 2017, Owens’ wife saw sexually explicit and sexual abuse photos of him and a child on his Tumblr account. His wife alerted law enforcement and filed a report. A search warrant on Owens’ Tumblr account revealed his account is “open” and may be viewed by the public. He confessed to taking photos and videos of sex acts with the child, then uploading them onto his Tumblr account thereby distributing the images over the internet.

The case was investigated by the FBI and the North Las Vegas Police Department. Assistant U.S. Attorney Elham Roohani prosecuted the case.

If you have information regarding the sexual exploitation of children, contact the National Center for Missing & Exploited Children Cyber Tipline at www.cybertipline.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.

###

LAS VEGAS, Nev. – Jennifer J. McCain-Bray, aka JJ McCain, was sentenced today to 51 months in federal prison for committing mail fraud and tax evasion as part of a scheme to defraud the Las Vegas Valley Water District (LVVWD) of over $6.7 million, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada, Special Agent in Charge Aaron C. Rouse for the FBI, and Special Agent in Charge Tara Sullivan for the IRS-Criminal Investigation.

“Public service is a public trust,” said U.S. Attorney Trutanich. “Today’s sentencing demonstrates this office’s commitment to investigate and prosecute individuals who violate that trust by misusing their authority to benefit themselves at the expense of the community.”

“Ms. McCain-Bray deceived the Las Vegas Valley Water District by stealing over $6.7 million through her calculated scheme that falsely represented purchases.  She then used the ill-gotten gains to fund a lavish lifestyle,” said SAC Rouse. “The FBI will continue working with our partners to investigate fraud and hold individuals in a position of trust accountable when failing to comply with the law.” 

“Ms. McCain-Bray stole from our community, using Nevada taxpayer money to enrich her own life and then lied to the IRS,” said SAC Sullivan. “IRS-Criminal Investigation will continue to hold government employees to the highest standard.”

McCain-Bray, 43, of Las Vegas, previously pleaded guilty to one count of mail fraud and one count of subscribing to a false tax return. In addition to the prison term, U.S. District Judge Kent J. Dawson ordered her to pay $6,715,531 as part of a criminal forfeiture money judgment.

McCain-Bray worked as a purchasing analyst for the LVVWD and she was responsible for transmitting orders and payments to vendors when particular products were requested from LVVWD departments and employees. She admitted that between January 1, 2007 to about December 7, 2015, she devised a scheme to defraud the LVVWD by falsely representing that purchases of ink and toner cartridges were for the LVVWD, when she knew that the products were actually purchased for a New Jersey company which received and then resold the cartridges for its own profit. McCain-Bray instructed the vendor to ship the ink and toner cartridges from California and other locations to her at her LVVWD office in Las Vegas. She then relabeled the packages and shipped them to the New Jersey company. In exchange, the New Jersey company transferred money to McCain-Bray’s personal PayPal account. Financial records indicate that McCain-Bray used the fraud proceeds for personal expenses and purchases, including extensive home remodeling and improvements, trips, gifts to family members and friends, and other lifestyle expenses. Between 2007 and 2015, McCain-Bray fraudulently purchased approximately $6.7 million in ink and toner cartridges with LVVWD funds.

McCain-Bray also failed to report her profits from the scheme on her personal tax returns for tax years 2011 to 2015. For those years, she failed to report a total of $2,339,156 in taxable income to the IRS.

The case was investigated by the FBI and the IRS-Criminal Investigation. Assistant U.S. Attorney Patrick Burns prosecuted the case.

###

LAS VEGAS, Nev. – A Las Vegas man was convicted Wednesday by a federal jury of all criminal charges for his role in planning and participating in the armed robbery of two jewelry stores in the Las Vegas community in January 2017, announced U.S. Attorney Dayle Elieson for the District of Nevada.

Brian Wright, 34, was found guilty of two counts of conspiracy to interference with commerce by robbery, two counts of interference with commerce by robbery, and two counts of brandishing a firearm during and in relation to a crime of violence. United States District Judge Jennifer Dorsey scheduled a sentencing hearing for March 18, 2019. Wright, who represented himself at trial, faces a maximum statutory penalty of 20 years in prison and a fine of $250,000 on each robbery count. He faces a mandatory minimum of seven years in prison and a fine of $250,000 on the first firearm count to run consecutive to all other counts and a mandatory minimum of 25 years in prison on the subsequent firearm count to run consecutive to all other counts.

During the six-day jury trial, prosecutors introduced evidence proving that Wright planned and recruited multiple gunmen and getaway drivers to rob the Jared Gallery of Jewelry, located at 2110 N. Rainbow Blvd., on January 3, 2017, and the MJ Christensen jewelry store, located at 8980 W. Charleston Blvd., on January 13, 2017. During the Jared’s robbery, Wright provided a firearm to co-conspirator Deandre Nakita Brown to use during the robbery. Brown and co-conspirator Aquail Harris entered the Jared pointing their firearms towards employees and customers. One of the store customers was a father with his one and three-year old children in the store. The gunmen disarmed the security guard and stole over $850,000 worth of jewelry and watches. They delivered the stolen merchandise to a separate getaway vehicle driven by co-conspirators Kendareen Hudson and Safiyyah Christopher. Wright utilized police scanner apps to monitor police radio traffic after the robbery and relayed this information to his co-conspirators. However, Las Vegas Metropolitan Police Department officers found the females’ vehicle with the stolen merchandise. They arrested the two females and recovered all of the jewelry.

Ten days later, on January 13, 2017, Wright planned and participated in the robbery of the MJ Christensen jewelry store. Again, Wright recruited others to help him carry out the robbery. He recruited co-conspirator Carl Whitley to procure a getaway car and driver and Brown to serve as a gunman. Wright obtained Whitley’s gun and provided it to Brown to use in the robbery. They stole over $700,000 worth of jewelry and watches. Wright again utilized police scanner apps to monitor police radio traffic after the robbery and relayed this information to his co-conspirators. An off-duty officer outside the jewelry store, however, observed the robber get into a vehicle driven by co-conspirator Randy Jerousek and followed this car to the Suncoast Casino. The vehicle was quickly located parked at the casino with the stolen merchandise in it.

Co-conspirators Harris, Christopher, Hudson, Jerousek, Whitley, and Brown all previously pleaded guilty for their involvement in the armed robberies. Sentencing for Brown is set for February 25, 2019, sentencing for Whitley is set for January 22, 2019, sentencing for Jerousek is set for February 7, 2019, and sentencing for Christopher is set for January 14, 2019.

Wright was convicted earlier this year of Assault on a Federal Officer in violation of Title 18, United States Code, Section 111(a)(1) and (b). A jury found Wright guilty of that offense after hearing evidence that Wright attempted to flee his residence while law enforcement was attempting to execute a search warrant. In his haste to flee, Wright rammed his car into a law enforcement vehicle that a Task Force Officer was standing next two, nearly striking the Officer. Sentencing is set in that case on January 15, 2019. Wright also represented himself during that trial.

The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Lisa Cartier-Giroux, Alexandra Michael, and Nadia Ahmed are prosecuting the case.

###

RENO, Nev. – A Reno man who actively sought babysitting opportunities with families with young girls so he could potentially exploit the children was sentenced Tuesday to 84 months in prison to be followed by a lifetime of supervised release, announced U.S. Attorney Dayle Elieson for the District of Nevada.

Aaron M. Quackenbush, 27, previously pleaded guilty to receipt of child pornography. He will be required to register as a sex offender under the Sex Offender Registration and Notification Act. United States District Judge Robert C. Jones presided over the sentencing hearing.

An investigation revealed that two IP addresses associated with Quackenbush’s residence were downloading child pornography. Quackenbush was interviewed by law enforcement. During his interview, Quackenbush admitted that he had downloaded videos and photos of child pornography for 12 years. When investigators sought to execute a search warrant at his home, Quackenbush deleted the Twitter application and files containing the child pornography from his cellphone. Law enforcement was able to recover his Twitter conversations which revealed dialogue with others about pornographic photos of young girls, Quackenbush’s desire to babysit young girls, as well as videos and photos of child pornography totaling 5,710 images as calculated under the sentencing guidelines.

 The case was investigated by the FBI, the Washoe County Sheriff’s Office, and the Northern Nevada Cyber Center Crimes Against Children Task Force. Assistant U.S. Attorney Jim Keller prosecuted the case.

If you have information regarding the sexual exploitation of children, contact the National Center for Missing & Exploited Children Cyber Tipline at www.cybertipline.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.

###

RENO, Nev. – A felon was sentenced today to 192 months in federal prison for an armed carjacking in a casino parking garage last year, announced U.S. Attorney Dayle Elieson for the District of Nevada.

Andrew Brigman, 29, of Layton, Utah, previously pleaded guilty to use of a firearm during and in relation to a crime of violence. He has prior felony convictions for attempted theft, aggravated assault, and theft and assault by a prisoner, all in Utah. In addition to the prison term, U.S. District Judge Miranda M. Du sentenced him to five years of supervised release.

On July 6, 2017, Brigman and a child approached an elderly woman as she exited her car in a casino parking garage in Sparks. He pointed a semiautomatic handgun at the woman and demanded she hand over her car, phone, and credit cards. She gave him the key fob for her car. Brigman did not know how to operate the car with the key fob, so she had to show him how to start the car. He and the child left in the stolen vehicle. In an attempt to locate Brigman and the child, Sparks Police Department sent out media releases with composite sketches and images of the stolen vehicle. An Amber alert was also issued for the child.

On July 14, the Sparks Police Department received a tip that identified Brigman as the possible suspect of the armed carjacking. A few days later, the stolen vehicle was stopped for a traffic violation in Alamosa County, Colo. Brigman, a woman, and her four children were in the vehicle. The child who accompanied Brigman during the armed carjacking was found safe in the car. During a search of the vehicle, a .38 semiautomatic pistol was found in the glove box.

The case was investigated by the Sparks Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Megan Rachow prosecuted the case.

###