District of Nevada

LAS VEGAS, Nev. – A five-time felon who posted photos on Instagram of himself shooting firearms, including an automatic rifle, was sentenced today to 77 months in federal prison and three years of supervised release, announced U.S. Attorney Dayle Elieson for the District of Nevada.

Jack Benjamin Hessiani, 39, of Ventura, California, was convicted of one count of felon in possession of a firearm following a three-day jury trial in December 2017. United States District Judge Larry R. Hicks presided over the trial and sentencing hearing.

According to evidence presented at trial and related court documents, Hessiani posted on his Instagram account photos of himself holding and firing machine guns at the Battlefield Vegas gun range in Las Vegas. At the gun range, he signed a waiver falsely representing that he did not have any criminal history that would prevent him from legally using firearms. In fact, he had five prior felony convictions, to include California felony convictions for Threats to Commit a Crime Resulting in Death; Stalking; and Inflicting Corporal Injury on Spouse / Cohabitant / Dating Partner.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Department of Labor Office of the Inspector General. Assistant U.S. Attorneys Phillip N. Smith, Jr. and Alexandra Michael prosecuted the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

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LAS VEGAS, Nev. – Two Las Vegas men involved in a $14 million telemarketing fraud scheme targeting small business owners pleaded guilty in federal court today, announced U.S. Attorney Dayle Elieson for the District of Nevada, Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division, and Special Agent in Charge Tara Sullivan for the IRS Criminal Investigation.

Mark L. Bausch, aka Mark Eting, 43, and Alan W. Rodrigues, 59, both of Las Vegas, each pleaded guilty to one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of money laundering. United States District Judge Kent J. Dawson accepted their guilty pleas. Sentencing is set for August 14, 2018.

According to their individual plea agreements, from March 2009 to about October 2010, Bausch, Rodrigues, and their co-conspirators organized and operated four telemarketing companies: Small Business Funding Co., Inc., Company Funds, Inc., Foundation Research, Inc., and Silver State Holding Company. They charged a fee for their services and offered to help small business owners obtain grants from public and private entities.

In furtherance of the fraud scheme, they made false statements to victims to make it appear that they were likely to or guaranteed to receive a grant. They hired salespersons to market the services and to provide false information to the customers. In order to convince the customers that their service was legitimate, the defendants instructed their employees to conduct research about funding entities and send letters to customers and funders, knowing that many of the customers would not qualify for the grants. The defendants also solicited customers by conducting seminars throughout the United States. Throughout the entire scheme, the telemarketing companies received numerous complaints, and the defendants made false statements to them to prevent or delay them from contacting law enforcement. Bausch and Rodrigues used the proceeds from the scheme to enrich themselves and others and to pay the expenses necessary to continue operating the scheme.

The maximum statutory penalty is 20 years in prison and a $250,000 fine for each count of conspiracy to commit wire fraud and wire fraud, and the maximum penalty is 20 years in prison and a $500,000 fine for money laundering. As part of the plea agreement, each defendant has agreed to pay $13,966,329.30 in restitution to victims and to pay between $631,142 and $1,050,955 in a criminal forfeiture money judgment.

In December 2014, Bausch, Rodrigues, and co-defendants were indicted for their roles in the telemarketing fraud scheme. Several co-defendants have already pleaded guilty and have been sentenced for their role in the scheme, including Craig Rudolph was sentenced to 77 months in prison; Jonas Bowen was sentenced to 63 months in prison; Lee Panelli was sentenced to 41 months in prison; and David Bergstrom was sentenced to 51 months in prison.

The case was investigated by the FBI and IRS Criminal Investigation. Assistant U.S. Attorneys Daniel R. Schiess and Jared L. Grimmer prosecuted the case.

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RENO, Nev. – A Reno, Nevada, attorney was sentenced today to 25 months in prison for filing false federal income tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman, U.S. Attorney Dayle Elieson for the District of Nevada, and Special Agent in Charge Tara Sullivan for the IRS Criminal Investigation.

Delmar Hardy was convicted, following a jury trial in September 2017, of filing false individual income tax returns for the years 2008, 2009 and 2010.

According to documents and evidence presented to the court, Hardy falsified his 2008 through 2010 returns by not reporting more than $400,000 in cash income his law practice received. Hardy’s practice of not reporting cash dated back to at least 1999, which resulted in a total tax loss of more than $250,000.

In addition to the term of imprisonment, U.S. District Court Judge Miranda M. Du ordered Hardy to serve one year of supervised release and to pay a fine in the amount of $10,000.

Principal Deputy Assistant Attorney General Zuckerman, U.S. Attorney Elieson, and SAC Sullivan thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney James E. Keller and Tax Division Trial Attorney Lee F. Langston, who prosecuted the case.

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

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LAS VEGAS, Nev. – Cardiovascular and Thoracic Surgeons of Nevada, Inc. (CTS), a Las Vegas medical practice whose principal physician is Dr. Bashir Chowdhry, has agreed to pay $1.5 million to the United States to resolve allegations relating to its potential liability under the civil False Claims Act.

United States Attorney Dayle Elieson for the District of Nevada; Special Agent in Charge Christian J. Schrank for the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG); Special Agent in Charge A.E. Pleasant for the U.S. Department of Veterans Affairs, Office of Inspector General (VA-OIG), Criminal Investigations Division, Western Field Office; and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division made the announcement.

The settlement announced today resolves allegations that, from January 1, 2006 through May 31, 2011, CTS violated the False Claims Act by billing 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.

“It is important to maintain the integrity of federal healthcare programs,” said U.S. Attorney Elieson for the District of Nevada. “Medical providers who misuse these programs negatively impact patients and taxpayers.”

“When providers bill government health programs for services never rendered, as alleged here, precious resources are diverted from vulnerable individuals,” said SAC Schrank for the HHS-OIG. “Suspected violators can expect to pay a price.”

“Physicians who engage in cost mischarging for services provided to veterans will be aggressively pursued by the Office of Inspector General and held accountable to the full extent of the law,” said SAC Pleasant for the VA-OIG.

“The FBI will continue to investigate companies that profit from exploiting patients who are searching for treatments to critical medical illnesses,” said SAC Rouse for the FBI.

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

This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General; U.S. Department of Veterans Affairs, Office of Inspector General; and the FBI. Assistant U.S. Attorney Roger Wenthe handled the case on behalf of the U.S. Attorney’s Office.

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RENO, Nev. – A Reno parolee who posed online as a teenage boy and enticed about a dozen girls to send him sexually explicit photos was sentenced in federal court today to 22 years in prison, announced U.S. Attorney Dayle Elieson for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division.

Ira Gene Weirich Jr., 59, pleaded guilty on August 11, 2017, to one count of distribution of child pornography and one count of receipt of child pornography. In addition to the prison term, U.S. District Judge Miranda Du sentenced him to lifetime supervised release. He is also required to register as a sex offender under the Sex Offender Registration and Notification Act (SORNA).

According to court documents and statements made in court, Weirich was serving a life sentence in state prison for the 1978 rape, kidnapping, and robbery of a woman. He was granted parole in February 2013. During his parole, the State of Nevada provided him an iPad to take online classes. In December of the same year, during a search, Nevada parole officers discovered Weirich was using the iPad to obtain nude and sexually explicit photos of girls. He had been posing as a teenage boy on social media and chat applications and contacting girls. He engaged in sexually explicit chats and convinced as many as 15 girls to send him nude and sexually explicit photos of themselves. He received and saved a total of 300 sexually explicit photos and videos that he later traded with others.

During an interview with law enforcement, Weirich admitted he received and distributed child pornography. He stated it was the enjoyment he felt in having control and power over the victims and “it wasn’t necessarily about the nude picture, it was about getting the nude picture.”

The case was investigated by the Northern Nevada Child Exploitation Task Force, which is comprised of members of the FBI, the Reno Police Department, the Washoe County Sheriff’s Office, and the Nevada Attorney General’s Office. Assistant U.S. Attorney Shannon M. Bryant 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) CyberTipline at www.cybertipline.org.

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

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RENO, Nev. – A Reno man pleaded guilty in federal court today to using stolen identities to create more than 8,000 fraudulent online accounts to commit a $3.5 million fraud scheme, announced U.S. Attorney Dayle Elieson for the District of Nevada.

Kenneth Gilbert Gibson, 47, pleaded guilty today to one count of wire fraud, one count of mail fraud, one count of filing a false tax return, and one count of aggravated identity theft. United District Court Judge Miranda Du accepted the guilty pleas. Sentencing is scheduled for July 30, 2018.

According to admissions made in connection to his plea agreement, between 2012 and 2017, Gibson developed and operated a scheme to fraudulently obtain the identities of multiple victims and used their identities to open unauthorized online accounts, credit accounts, bank accounts, and prepaid cards. He obtained the identities of multiple victims from a database in Reno. Then, he used those stolen identities to create approximately 8,000 unauthorized and fraudulent online accounts. He would use those fraudulent and unauthorized accounts to transfer, deposit, and send approximately $3.5 million to himself via hard copy checks and through electronic transactions to approximately 500 bank accounts and pre-paid debit cards owned and under his control.

In addition, he admitted to filing a false federal income tax return for the 2013 tax year. He did not include approximately $1,049,070 of taxable income he received from the fraud scheme.

At the time of sentencing, the maximum statutory penalty is 20 years in prison and a $250,000 fine for the wire fraud and mail fraud counts; the maximum statutory penalty is three years in prison and a $250,000 fine for the filing a false tax return count; and the statutory maximum penalty of two years in prison for the aggravated identity theft count. The defendant also faces a period of supervised release and a criminal forfeiture money judgment.

The case is being jointly investigated by a Task Force consisting of the FBI, United States Secret Service, the IRS, United States Postal Inspection Service, and the Reno Police Department. Assistant U.S. Attorney Carla B. Higginbotham is prosecuting the case.

You can report identity theft to the Federal Trade Commission (FTC) online at www.identitytheft.gov or by phone at 1-877-438-4338. For identity theft prevention tips and free resources visit www.ftc.gov/idtheft.

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LAS VEGAS, Nev. – A father and son pleaded guilty in federal court today to committing six smoke shop robberies and two bank robberies in early 2017, announced U.S. Attorney Dayle Elieson for the District of Nevada.

Jeffrey Alan James, 53, and Jessy Stewart James, 23, both of Las Vegas, pleaded guilty to a criminal information that charged them with seven-counts of Hobbs Act Robbery and one count of Bank Robbery. United States District Judge Richard F. Boulware accepted their guilty pleas and scheduled a sentencing hearing for July 26, 2018.

According to documents filed in court, on January 19, 2017, Jeffrey James threatened an employee at KS Smoke Shop, located at 3827 E. Sunset Road, with a BB gun revolver and demanded money. Jessy James, his son, watched the store’s entrance and acted as a lookout. They stole approximately $205. The second robbery occurred on January 22, when each defendant used a firearm to threaten an employee at D Smoke Shop located at 3711 S. Valley View. They stole approximately $300. On January 24, Jeffrey James pointed a BB gun revolver in the direction of a teller’s head during a robbery at the Silver State Schools Credit Union located at 9302 S. Eastern Avenue in Henderson. During that robbery, Jessy James placed a suitcase on the counter and told another teller that if she followed their instructions she would not get shot. They got away with approximately $4,000. On January 31, Jeffrey James threatened a clerk at Smokes and Vapors Smoke Shop, located at 9101 W. Sahara, with a revolver while Jessy James instructed the clerk to “pull [the money] out fast.” They stole approximately $100.

The defendants further admitted that, on February 1, during the fifth robbery, Jessy James pointed a replica assault rifle at two employees at Smoke Shop Plus, located at 7320 S. Rainbow Blvd., and instructed them to “open the register and give me all the money you have.” He fled with approximately $900, while Jeffrey James acted as a getaway driver. Then, on February 5, they simulated the possession of firearms and demanded money from two employees at Smoke and Cigar Smoke Shop, located at 8550 W. Desert Inn, stating that they were committing a “robbery.” They stole approximately $300. Then, on February 14, Jeffrey James threatened a clerk at EZ Smokes Smoke Shop, located at 8930 S. Maryland Parkway, with a revolver and demanded money. The employee explained that there was no money in the register, so Jeffrey James stole Marlboro cigarettes while Jessy James waited outside as a getaway driver. The eighth and final robbery occurred on February 16, when the father-son duo robbed the America First Credit Union located at 10608 S. Eastern Avenue, in Henderson. Jessy James threatened a teller with a BB gun and a presented a note that read, “This is a robbery, not a joke.” Jeffrey James waited outside and acted as a getaway driver. They stole approximately $4,207.

The maximum statutory penalty is 20 years in prison and a $250,000 fine for each count of Hobbs Act Robbery and Bank Robbery.

The case was investigated by the Henderson Police Department, the Las Vegas Metropolitan Police Department, and the Federal Bureau of Investigation. Assistant U.S. Attorney Patrick Burns is prosecuting the case.

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LAS VEGAS, Nev. – A Las Vegas man who allegedly sold hundreds of firearms without a license, some of which were subsequently used in crimes, was charged in federal court today, announced U.S. Attorney Dayle Elieson for the District of Nevada.

Sylvester Mitchell, 47, made his initial appearance in court before U.S. District Magistrate Judge Peggy Leen. He was charged by a federal criminal complaint with one count of dealing in firearms without a license. The charge carries a maximum term of five years in prison. A preliminary hearing is set for May 16, 2018.

As alleged in the criminal complaint that was unsealed today, Mitchell purchased approximately 438 firearms between January 2004 and November 2017. Of those firearms, approximately 42 were subsequently recovered and found to have been illegally possessed, used in a crime, or suspected to have been used in a crime. Those firearms were recovered in Southern California, Nevada, and Mexico. Two of the most recent recoveries were from homicide scenes in Las Vegas, Nevada. Over the course of 2017, Mitchell purchased 199 firearms for a total cost of $58,942.   

The complaint alleges that Mitchell, who did not have a license to sell firearms, placed several advertisements offering firearms for sale on Backpage.com. ATF records showed a pattern of Mitchell purchasing new firearms from Federal Firearm Licensees (FFLs) on a weekly basis and that he went to multiple FFLs on the same day. In some instances, he purchased firearms from FFLs and posted the firearms for sale on Backpage.com a few days or weeks later. It further alleges that between June 1, 2017 and September 14, 2017, law enforcement conducted multiple undercover firearms purchases from Mitchell based on his Backpage.com advertisements. Among the purchases was an AR-15 rifle.

A criminal complaint contains allegations that the defendant has committed a crime, and the defendant is presumed innocent unless and until proven guilty in a court of law.

The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Christopher Burton is prosecuting the case.

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A federal grand jury for the District of Nevada has returned an indictment yesterday, charging a former Las Vegas, Nevada, realtor with tax evasion, corruptly endeavoring to obstruct the internal revenue laws, making a false statement to a bank and failure to file tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Dayle Elieson for the District of Nevada.

 

According to the indictment, William Waller evaded over $500,000 in taxes owed for 2004 through 2009 and obstructed the Internal Revenue Service (IRS) by directing third parties to pay nominee entities for services Waller provided, and then using bank accounts in the names of those nominees to pay his personal expenses.  Waller also allegedly failed to timely file federal income tax returns for the years 2011 and 2012, despite having an obligation to do so. 

 

The indictment further charges Waller with making a false statement to a bank in order to obtain a loan modification by falsely representing that he had not worked in several years and had no source of income, when in fact he had been employed and received income.

 

If convicted, the defendant faces a statutory maximum sentence of 30 years in prison for making a false statement to a bank, five years in prison for tax evasion, three years in prison for obstruction of the internal revenue laws, and one year in prison on each failure to file a tax return count.  Waller also faces a period of supervised release, monetary penalties and restitution.

 

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

 

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Elieson commended special agents of IRS Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Andrea Kafka and John Mulcahy, who are prosecuting the case.

 

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

LAS VEGAS, Nev. – A federal grand jury for the District of Nevada returned an indictment yesterday, charging a former Las Vegas, Nevada, realtor with tax evasion, corruptly endeavoring to obstruct the internal revenue laws, making a false statement to a bank and failure to file tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Dayle Elieson for the District of Nevada.

According to the indictment, William Waller evaded over $500,000 in taxes owed for 2004 through 2009 and obstructed the Internal Revenue Service (IRS) by directing third parties to pay nominee entities for services Waller provided, and then using bank accounts in the names of those nominees to pay his personal expenses.  Waller also allegedly failed to timely file federal income tax returns for the years 2011 and 2012, despite having an obligation to do so. 

The indictment further charges Waller with making a false statement to a bank in order to obtain a loan modification by falsely representing that he had not worked in several years and had no source of income, when in fact he had been employed and received income.

If convicted, the defendant faces a statutory maximum sentence of 30 years in prison for making a false statement to a bank, five years in prison for tax evasion, three years in prison for obstruction of the internal revenue laws, and one year in prison on each failure to file a tax return count.  Waller also faces a period of supervised release, monetary penalties and restitution.

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

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Elieson commended special agents of IRS Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Andrea Kafka and John Mulcahy, who are prosecuting the case.

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

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RENO, Nev. – A wanted fugitive who shot at law enforcement during a high-speed chase through the northeast Reno area was sentenced today to 175 months in federal prison, announced U.S. Attorney Dayle Elieson for the District of Nevada.

Eugene Enrique Corona, 35, of Reno, pleaded guilty in November 2017, to possession with intent to distribute methamphetamine. Corona was a wanted fugitive for violation of his supervised release. In addition, he received a 24 month prison sentence to run consecutive to today’s sentence term for revocation on his supervised release violation.

According to the plea agreement, on January 18, 2017, a Washoe County Sheriff’s Office K9 unit attempted to stop Corona’s vehicle. However, he sped away, drove through a stop sign and a red traffic light, and almost caused two separate accidents — one at Wedekind Road and Sullivan Lane and the second at Wedekind Road and El Rancho Drive. During the pursuit, Corona fired a shot at law enforcement following him, then threw the firearm out of the driver’s side window. Corona lost control of his truck and crashed into the front yard of a residence on the corner of Montello Street and Wilder Street. He attempted to flee the scene on foot, but law enforcement was able to apprehend him. They recovered a Taurus 5 shot revolver near Wedekind Road and El Rancho Drive. Inside Corona’s truck, deputies found two clear bags with approximately 60 grams of methamphetamine and a digital scale.

The case was investigated by the Washoe County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Marshals Service, and the DEA. Assistant U.S. Attorney Megan Rachow prosecuted the case.

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LAS VEGAS, Nev. – A Pahrump, Nevada, man was sentenced today to a total of 180 months in federal prison for selling a stolen revolver and a stolen semi-automatic rifle with a large capacity magazine, announced U.S. Attorney Dayle Elieson for the District of Nevada.

Paul Scott Nelson, 45, was sentenced by U.S. District Chief Judge Gloria M. Navarro. He pleaded guilty in September 2017 to two counts of possession of a stolen firearm. Nelson has six prior felony convictions, including convictions for Assault with a Deadly Weapon, Battery with a Deadly Weapon, and Aggravated Stalking.

According to court documents, Nelson admitted that on December 8, 2014, he sold a stolen Dan Wesson .357 caliber revolver to an undercover ATF officer. Then, on February 6, 2015, he sold a stolen Norinco SKS 7.62 caliber semi-automatic rifle, along with a 30-round high capacity magazine, a tri-pod, and an optional wooden stock. The semi-automatic rifle is capable of accepting a large capacity magazine.

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

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. For more information about PSN, visit www.justice.gov/usao-nv.

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LAS VEGAS, Nev. – A former Las Vegas tax preparer was charged in federal court today with 15 counts of aiding and assisting in the preparation and filing of false federal income tax returns, announced U.S. Attorney Dayle Elieson for the District of Nevada and Special Agent in Charge Tara Sullivan for the IRS Criminal Investigation.

Martha L. Williams, 40, of Las Vegas, prepared taxes for customers at Across the Board Management Company, a business in Las Vegas. She made her initial appearance today before U.S. District Magistrate Judge Nancy J. Koppe. A jury trial is set for June 19, 2018.

The indictment alleges Williams knowingly prepared fraudulent Individual Income Tax Returns, Forms 1040, and accompanying Schedules A or C, for individuals during tax years 2011, 2012, and 2013. As a result, individuals fraudulently paid less income tax owed and they received inflated tax refunds. The approximate loss is $146,542.

If convicted, Williams faces the statutory maximum of three years in prison and a $100,000 fine for each count of aiding and assisting in the preparation of false tax returns.

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

The case is being investigated by the IRS Criminal Investigation. Assistant U.S. Attorney Jared L. Grimmer is prosecuting the case.

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LAS VEGAS, Nev. – A Las Vegas man was sentenced today to 293 months in prison to be followed by lifetime supervised release for receiving, possessing, and advertising more than 30,000 images and videos of child pornography, announced U.S. Attorney Dayle Elieson for the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division.

James Scott Alva, 45, was sentenced today by U.S. District Judge Robert C. Jones. In January, after a four-day trial, a jury convicted him of receipt of child pornography, possession of child pornography, and advertising of child pornography.

During an investigation into the online receipt and distribution of child pornography on a peer-to-peer network, a Las Vegas Metropolitan Police Department detective identified and downloaded child sexual exploitation files shared by Alva. The detective also obtained a “browse list” from Alva’s computer advertising 92 child pornography files available for sharing over the network. During the subsequent execution of a search warrant at Alva’s residence, law enforcement seized nine electronic devices from Alva’s bedroom, which contained a total of 28,403 images and 2,851 videos of child pornography. Of the child pornography images and videos, 167 depicted bondage, 1,136 depicted infants, and 20 depicted bestiality. In an interview with a detective, Alva admitted he searched for and received child pornography via peer-to-peer networks and the internet over the course of approximately 10 years. He also identified a laptop found in his room as containing child pornography and stated the child pornography on that laptop would be mostly videos and that some would depict “very young” children.

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

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

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LAS VEGAS, Nev. - A man who fired multiple shots at security guards at the Las Vegas Boat Harbor Marina was sentenced today to 81 months in prison, announced U.S. Attorney Dayle Elieson for the District of Nevada and Chief Ranger Adam Kelsey of Lake Mead National Recreational Area.

Jamie Joe Dulus, 29, of Henderson, Nevada, was sentenced today by U.S. District Judge Jennifer A. Dorsey. In January, Dulus pleaded guilty to assault with a dangerous weapon and use of a firearm during and in relation to a crime of violence.

On August 10, 2017, as the bar was closing at the Lake Mead National Park Las Vegas Boat Harbor, two security guards asked Dulus to leave the area because he was acting belligerent. Dulus argued with the guards as he walked along the walkway leading to the parking lot. The guards followed him to ensure he left the area. Dulus then set his beer bottle on the ground, lifted his shirt, and grabbed a .25 caliber Raven handgun from his waistband. Dulus aimed and fired once at each security guard, and then started running towards the guards firing one more shot. When Dulus reached the two guards, he pressed the barrel of the handgun to one guard's forehead. The second guard was able to pull Dulus's hand away as another shot was fired. The guards were able to wrestle Dulus to the ground, remove the gun from his hand, and hold him until National Park Service Rangers arrived on scene. No one was injured during the incident.

The case was investigated by the National Park Service and prosecuted by Assistant U.S. Attorney Elham Roohani.

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RENO, Nev. – A Reno man pleaded guilty in federal court today to sexually exploiting his infant daughter and to distributing images of her engaged in sexually explicit conduct, announced U.S. Attorney Dayle Elieson for the District of Nevada.

Derrick Joseph Rady, 36, of Reno, pleaded guilty to sexual exploitation of a minor and distribution of child pornography. United States District Judge Howard D. McKibben accepted the guilty pleas and scheduled a sentencing hearing for June 27, 2018.

According to court documents, Facebook and Google both reported possible child pornography on their sites to the National Center for Missing and Exploited Children (NCMEC). Members of the Northern Nevada Child Exploitation Task Force executed search warrants and seized multiple electronic devices containing child pornography from Rady’s residence. He admitted to using his cell phone to take photos of his infant daughter’s genitals and of her touching his penis. These photos were uploaded automatically from the cell phone to a Google Drive cloud account. He further admitted to using his computer to distribute images of a minor engaging in sexually explicit conduct.

Sexual exploitation carries a mandatory minimum sentence of 15 years in prison and a maximum of 30 years in prison. Distribution of child pornography carries a mandatory minimum sentence of five years in prison and a maximum of 20 years in prison. In addition, he will be required to register as a sex offender under the Sex Offender Registration and Notification Act (SORNA).

The case was investigated by the Northern Nevada Child Exploitation Task Force, which is comprised of members of the FBI, the Reno Police Department, the Washoe County Sheriff’s Office, and the Nevada Attorney General’s Office. The case is being prosecuted by Assistant U.S. Attorney Shannon M. Bryant.

If you have information regarding possible child sexual exploitation, make a report to NCMEC’s CyberTipline 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.

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LAS VEGAS, Nev. – Four alleged MS-13 gang members were charged late Tuesday in connection with the kidnapping and murder of a rival gang member whose body was found on federal property in southern Nevada.

United States Attorney Dayle Elieson of the District of Nevada, Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division, and Special Agent in Charge Joseph Macias for Homeland Security Investigations (HSI) Los Angeles made the announcement.

Josue Diaz-Orellana, 22, Luis Reyes-Castillo, a/k/a “Molesto,” 24, David Perez-Manchame, a/k/a “Herbi” and “Walter Melendez,” 19, and Miguel Torres-Escobar, 20, all El Salvadoran nationals, are charged with assault with intent to commit murder, kidnapping, and discharging a firearm during and in relation to a crime of violence. The defendants are illegally in the United States and are in federal custody. Reyes-Castillo, Perez-Manchame, and Torres-Escobar are scheduled to make their initial appearance this afternoon at the federal courthouse in Las Vegas before U.S. District Magistrate Judge Cam Ferenbach. A date for Diaz-Orellana has not yet been set.

MS-13 is an identified transnational organized crime group. MS-13, which is short for “La Mara Salvatrucha,” is a gang composed primarily of immigrants or descendants of immigrants from El Salvador. In the United States, MS-13 has been functioning since at least the 1980s.

According to allegations contained in the complaint, on January 21, 2018, Diaz-Orellana, Reyes-Castillo, Perez-Manchame, and Torres-Escobar, kidnapped and murdered Arquimidez Sandavol-Martinez. His body was discovered on February 2, on federal property on East Lake Mead Boulevard, near mile marker 12, in rural Clark County, Nevada. Examination of the crime scene indicated that Sandoval-Martinez had been bound and had made some effort to escape his captors before being shot and stabbed to death. Fired 9mm cartridge cases with “Blazer” and “FC” head-stamp markings on them were located within the crime scene.

During the course of the investigation, law enforcement learned that Sandoval-Martinez was last seen on January 21, at Club 2100, located at 2100 Fremont Street. Investigators obtained cell phone records that indicated Diaz-Orellana’s phone used cell towers near the club, heading eastbound along Lake Mead Boulevard, and in the area where Sandavol-Martinez’s body was found. On March 2, law enforcement stopped Diaz-Orellana who was in a vehicle with Reyes-Castillo, Perez-Manchame, and Torres-Escobar. A large butcher knife, a baseball hat with an apparent bloodstain on it, and three 9mm handguns were recovered in the vehicle.

The maximum statutory penalty is 20 years of imprisonment for the assault charge and life imprisonment for both the kidnapping and the discharging of a firearm count.

A criminal complaint merely contains allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The case is a joint investigation by the FBI, HSI, and the Las Vegas Metropolitan Police with the assistance of the DEA. Assistant U.S. Attorneys Phillip N. Smith, Jr. and Frank J. Coumou are prosecuting the case.

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LAS VEGAS, Nev. – Edward N. Levine, 67, a resident of Novato, California, was sentenced today to 27 months in prison and followed by three years of supervised release for the sale of two black rhinoceros horns in Las Vegas. Levine will also be prohibited from wildlife and antique sales as a result of today’s sentencing.

A jury convicted Levine on September 14, 2017, of conspiracy to violate the Lacey and Endangered Species Acts and a substantive violation of the Lacey Act for knowingly selling the horns to an undercover agent from the United States Fish and Wildlife Service (USFWS). His co-defendant, Lumsden Quan, had previously pleaded guilty to the indictment and was sentenced in December 2015 to 367 days of imprisonment and a $10,000 fine. 

The sentence was announced by Assistant Attorney General Jeffrey H. Wood for the Environment and Natural Resources Division of the Department of Justice, U.S. Attorney Dayle Elieson for the District of Nevada, and Acting Chief of Law Enforcement Edward Grace for USFWS.

The Honorable Chief Judge Gloria M. Navarro in U.S. district court in Las Vegas sentenced Levine for his role in the conspiracy, which involved negotiating the sale and transporting the horns from California to Nevada in March 2014. Levine and Quan ultimately sold the horns to an undercover agent posing as a taxidermist for $55,000 in a Las Vegas casino hotel room. Levine had faced a maximum of five years imprisonment for violating the Lacey Act.

“Complex international investigations such as Operation Crash have demonstrated the link between wildlife trafficking and criminal organizations also involved in other serious transnational organized crimes including trafficking of illegal firearms and drugs,” said Acting Chief of Law Enforcement Edward Grace for the U.S. Fish and Wildlife Service. “Mr. Levine not only illegally bought and sold horns from critically endangered black rhinos; he was previously convicted and served time for his role in drug trafficking with South American drug cartel.”

Levine was identified as part of “Operation Crash” – a nationwide effort led by the USFWS and the Justice Department to investigate and prosecute those involved in the black market trade of rhinoceros horns. A “crash” is the term for a herd of rhinoceros. Operation Crash is an ongoing effort to detect, deter, and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns. As of October 2017, Operation Crash has resulted in the prosecution and sentencing of nearly 50 subjects and recovery of approximately $7.8 million through fines, forfeiture, and restitution. Levine was the only Operation Crash target to proceed to trial.

The black rhinoceros is an herbivore species native to Africa of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under U.S. and international laws, including the Endangered Species Act. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 183 countries around the world to protect fish, wildlife, and plants that are or may become imperiled due to the demands of international markets.

The investigation was handled by the USFWS’s Office of Law Enforcement, the U.S. Attorney’s Office for the District of Nevada, and the Justice Department’s Environmental Crimes Section. The government was represented by Trial Attorney Ryan Connors and Assistant U.S. Attorney Kathryn Newman.

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RENO, Nev. – A federal jury convicted two men from California today for robbing a Reno convenience store at gunpoint on Black Friday, announced U.S. Attorney Dayle Elieson of the District of Nevada.

Connor Timothy Woods, 27, and Michael Miller, 31, both of Santa Rosa, California, were found guilty of one count of conspiracy to interfere with commerce by robbery, one count of interference with commerce by robbery, and one count of use of a firearm in furtherance of a crime of violence. United States District Judge Howard D. McKibben presided over the four-day jury trial. Sentencing is set for June 19, 2018.

According to court documents and evidence presented at trial, Woods entered a 7-11 located at 6150 South McCarran Blvd. on November 25, 2016. He pointed a semi-automatic handgun at the store clerk and demanded money from the cash register and the slots register drawers. When the clerk went to grab the slots register drawer, he saw Woods had put the gun down on the counter. The victim attempted to grab the gun and they began to struggle. The gun fell to the floor and the victim threw the cash drawer at Woods. Woods left the store and jumped into a mini-van outside where Miller was waiting. They stole approximately $100.

A few days later, a Reno Police Department detective found the get-away vehicle parked on the side of I-80 and the mini-van was towed back to the police station. Law enforcement was able to identify Woods as a suspect in the robbery based on evidence discovered in the mini-van and from the surveillance videos. The detective searched Woods’s criminal history and found that he was in custody in Sonoma County, California, on an unrelated charge. In an interview with the detective, Woods stated, “I admit to the 7-11 robbery. I admit to it, there that’s all you need.”

The maximum statutory penalty is 20 years in prison and a $250,000 fine for the conspiracy to interfere with commerce by robbery and interference with commerce by robbery change, and a mandatory minimum penalty of seven years consecutive to the robbery charge.

The investigation was conducted by the Reno Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Washoe County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorneys Megan Rachow and James E. Keller.

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RENO, Nev. – A Carson City man made his initial appearance today in federal court on charges related to kidnapping and assaulting a woman after holding her hostage during a 12-hour armed standoff with law enforcement on the Pyramid Lake Indian Reservation, announced U.S. Attorney Dayle Elieson of the District of Nevada.

Rocky Neil Boice Jr., 39, was indicted with one count of kidnapping, one count of use of a firearm during and in relation to a crime of violence, one count of felon in possession of a firearm, and two counts of assault with a dangerous weapon. He appeared in federal court today before U.S. District Magistrate Judge Valerie P. Cooke.

According to allegations contained in the indictment and criminal complaint, on February 26, 2018, in Wadsworth, Nevada, Boice threatened two women with a knife and he stabbed one of the women in the face and abdomen. The second woman ran to a neighbor’s house to call for help. During an armed 12-hour standoff with law enforcement, Boice pointed a .22 caliber rifle multiple times at the hostage and shot her in the shoulder and head. He was arrested the next morning by law enforcement after the Washoe County SWAT team entered the home. Boice was convicted in 2002 of second degree murder and battery with a deadly weapon in Carson City.

If convicted, the statutory minimum penalty is life in prison for the kidnapping charge.

An indictment merely contains an allegation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The investigation was conducted by the FBI, the Bureau of Indian Affairs, and the Pyramid Lake Tribal Police Department, with the assistance of the Washoe County Sheriff’s Office and the Sparks Police Department. The case is being prosecuted by Assistant U.S. Attorney Shannon M. Bryant.

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LAS VEGAS, Nev. – A Texas man was sentenced today to life in prison for kidnapping his ex-girlfriend in Las Vegas, then chaining her to the floorboard of his van and driving her to a cave in New Mexico, announced U.S. Attorney Dayle Elieson for the District of Nevada.

Jack William Morgan, 32, was sentenced by U.S. District Judge Kent J. Dawson. Morgan was previously found guilty by a jury of one count of conspiracy to commit kidnapping and one count of kidnapping.

According to court documents and evidence presented at trial, Morgan and co-defendant Samuel Brown conspired to use force and violence to kidnap Morgan’s ex-girlfriend and to take her to New Mexico. On January 30, 2017, Brown went door-to-door at the woman’s apartment complex until he found her. Morgan forced his way into her apartment and kidnapped her. He gagged her, dragged her down the stairs, and choked her unconscious. He then handcuffed her wrists and ankles and chained her to the floorboard of his van where Brown was waiting. They drove to a cave that Morgan carved out in the side of a remote hill in Española, New Mexico. A law enforcement alert was issued and the New Mexico State Police and Española Police Department found the van driving along U.S. Highway 84. They arrested Morgan and Brown and rescued the woman.

Brown pleaded guilty prior to the trial and was sentenced to 63 months in prison and five years of supervised release following his prison sentence.

The case was investigated by the FBI. Assistant U.S. Attorneys Susan Cushman and Kathryn Newman prosecuted the case.

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LAS VEGAS, Nev. – An individual who ran multimillion dollar prize promotion scams was sentenced on March 12, 2018, to serve 87 months in prison by a federal judge in Las Vegas, Nevada, the Department of Justice announced.

Glen Burke, 58, of Las Vegas, was sentenced to 87 months in prison, followed by three years of supervised release.  U.S. District Judge Jennifer A. Dorsey also ordered Burke to pay $2,785,508.36 in restitution, reflecting the consumer loss from one of Burke’s schemes. 

Burke pleaded guilty in December 2017 to criminal contempt of court and conspiracy charges arising from his operation of two predatory schemes that defrauded thousands of victims, many of whom were elderly, out of more than $20 million.  Burke conducted those fraudulent campaigns in violation of a 1998 court order obtained by the Federal Trade Commission (FTC) permanently banning him from telemarketing and making misrepresentations to consumers.  A co-defendant, Michael Rossi, 52, also of Las Vegas, also pleaded guilty in connection with one of Burke’s schemes.  Rossi is scheduled to be sentenced on June 25, 2018.

“This case exemplifies the Department’s commitment to halt schemes that target seniors, which the Attorney General announced in an historic elder fraud sweep a few weeks ago,” said Acting Assistant Attorney General Chad Readler of the Justice Department’s Civil Division.  “We are sending a clear message:  Perpetrators of telemarketing fraud will be prosecuted and law enforcement will not stop until fraudulent mass mailing practices are halted.”

Burke pleaded guilty to criminal contempt of court for violating a court order prohibiting him from making misrepresentations to consumers.  The charge stemmed from Burke’s operation of a mass-mailing fraud scheme that misled consumers into believing that they had won large cash prizes, often millions of dollars. Burke specifically mailed consumers solicitations that used fake names and, in many cases, looked like they came from law firms or financial institutions, advising consumers to pay a fee – usually $20 to $30 – to claim their promised winnings.  Once consumers paid, however, Burke never sent any consumer a promised prize. 

Burke, along with Rossi, also pleaded guilty to conspiracy to commit mail and wire fraud for running a fraudulent telemarketing operation.  Telemarketers working for Burke and Rossi falsely told victims that they had won one of five valuable prizes, typically: a Chevy Camaro; a Boston Whaler boat; a diamond-and-sapphire bracelet; $3,000 cash; or a cruise that could be exchanged for $2,300.  To claim the prize, consumers were told to pay hundreds, or in some cases thousands, of dollars.  Once they paid, victims received a nearly worthless piece of costume jewelry or nothing at all. 

In January 2013, the FTC filed a civil contempt case against Burke for violating the 1998 court order.  The district court found Burke in civil contempt and ordered him to pay contempt sanctions of over $20 million, reflecting consumer loss from both the telemarketing and mass-mailing schemes. 

Acting Assistant Attorney General Readler commended the investigative efforts of the U.S. Postal Inspection Service and thanked the FTC for its valuable assistance.  The case was prosecuted by Trial Attorneys Timothy Finley and Daniel Zytnick of the Consumer Protection Branch of the Department of Justice’s Civil Division and Assistant U.S. Attorney Nicholas Dickinson of the District of Nevada. 

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LAS VEGAS, Nev. – An armed man who robbed a casino floor cashier cage at New York-New York Hotel and Casino in January was charged today in federal court, announced United States Attorney Dayle Elieson of the District of Nevada, Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division, and Sheriff Joseph Lombardo of the Las Vegas Metropolitan Police Department.

Cameron James Kennedy, 26, of Las Vegas, is charged with one count of interference with commerce by robbery.

According to allegations contained in the criminal complaint, Kennedy was on federal supervision for a bank robbery charge and he was required to wear a GPS monitoring bracelet. On January 10, 2018, about three hours after he cut off his GPS monitoring bracelet, Kennedy demanded money from a casino floor cage cashier at the New York-New York Hotel and Casino. He lifted his hooded jacket and displayed a black semiautomatic handgun in his waistband. He told the cashier: “I want all your hundreds and don’t mess around. I am not kidding, I want all the hundreds.” He stole approximately $23,367 and fled in a taxi cab.

If convicted, the maximum statutory penalty is 20 years in prison and a $250,000 fine.

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

The case is being investigated by the FBI’s Violent Crimes Task Force and Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Tony Lopez is prosecuting the case.

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LAS VEGAS, Nev. – A Las Vegas man was found guilty by a jury yesterday for robbing two jewelry store employees at gunpoint and stealing more than $450,000 in cash and jewelry, announced U.S. Attorney Dayle Elieson for the District of Nevada.

Following a four-day trial, Joshua Sadat Washington, 37, was found guilty of one count of interference with commerce by robbery, one count of brandishing a firearm in furtherance of a crime of violence, and one count of transportation of stolen goods. United States District Judge Jennifer A. Dorsey scheduled sentencing for June 11, 2018. At the time of sentencing, Washington faces the statutory maximum penalty of 20 years in prison. The firearms charge carries a mandatory minimum sentence of seven years which must run consecutively to any other sentence imposed.

According to the indictment and other court documents, on August 13, 2016, Washington and co-defendant Fedel Ezekiel Sakers, who was armed with a handgun, stole cash and jewelry from Alfredo’s Jewelry in Las Vegas. The day of the robbery, Washington mailed some of the stolen jewelry to Miami, Florida. The remaining jewelry was mailed by Washington the day after the robbery. A total of approximately $471,000 in cash and jewelry were stolen in the robbery.

The case was investigated by the FBI and Las Vegas Metropolitan Police Department.

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RENO, Nev. – A Gardnerville, Nevada, man was arrested and made his initial appearance in federal court today for causing an explosion at his apartment while trying to illegally make butane hash oil, announced U.S. Attorney Dayle Elieson of the District of Nevada.

Adam Fitzgerald-Wermes, 22, is charged with one count of endangering human life while manufacturing a controlled substance. United States District Magistrate Judge Valerie P. Cooke scheduled a jury trial to begin on May 8, 2018.

According to the indictment, on January 14, 2018, Fitzgerald-Wermes allegedly caused an explosion in his kitchen by trying to make butane hash oil containing a high potency of THC (tetrahydrocannabinol). The chemical extraction process is dangerous because it involves the use of butane, a highly flammable and odorless gas, to burn parts of marijuana to draw concentrated THC from the plant into a wax-like substance. THC is a psychoactive chemical in marijuana that produces the “high” feeling users seek.

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

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

The case was investigated by the DEA and Douglas County Sheriff’s Office. Assistant U.S. Attorney James Keller is prosecuting the case.

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RENO, Nev. – A Reno man pleaded guilty yesterday to robbing a US Bank located inside a Safeway, announced U.S. Attorney Dayle Elieson of the District of Nevada.

Mathew Eugene Hovious, 47, pleaded guilty to one count of bank robbery. United States District Judge Larry R. Hicks accepted the guilty plea. Sentencing is scheduled for June 4, 2018.

According to court documents, Hovious admitted that, on October 23, 2017, he approached a bank teller and said, “Sorry, I have to do this,” then proceeded to give the teller a note that read: “I have a gun and a friend outside. We will use it. Do not pursue. $50s, $20s, $10s only. No dye packs or Transponders. I will kill you.” The teller put money in an envelope for Hovious and he left the bank. He stole approximately $2,600.

At the time of sentencing, Hovious faces the maximum statutory penalty of 20 years in prison and a $250,000 fine.

The case was investigated by the FBI. Assistant U.S. Attorney Megan Rachow is prosecuting the case.

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LAS VEGAS, Nev. – A former marriage and family therapist who was convicted by a jury of possession and receipt of child pornography and for soliciting a child to have sex with him was sentenced today to 300 months in prison and lifetime supervised release, announced U.S. Attorney Dayle Elieson for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division.

Ian Alexander Pincombe, 49, of Las Vegas, was found guilty by a jury last year of one count of coercion and enticement, one count of possession of child pornography, and one count of receipt of child pornography. In addition to the prison term, he is required to register as a sex offender under the Sex Offender Registration Notification Act. United States District Judge Jennifer A. Dorsey presided over the jury trial and sentencing hearing.

“The defendant sent sexually explicit messages to someone he believed to be a 13-year-old girl and he kept a collection of violent child pornography," said U.S. Attorney Elieson. "Children deserve to be protected from child predators. The U.S. Attorney’s Office and our law enforcement partners are committed to the protection of the most vulnerable community members—our children.”

“I want to recognize the excellent work of the FBI Child Exploitation Task Force; a combined effort that exhibits the FBI’s commitment to our community and our partners,” said SAC Rouse. “Their actions removed this individual from the community where our children live.”

According to court documents, Pincombe posted an advertisement on Craigslist seeking an underage girl for sex. An undercover detective, posting as a 13-year-old girl, began communicating with Pincombe. Over the next two days, Pincombe exchanged sexually explicit emails and text messages with the girl. On May 2, 2014, law enforcement arrested Pincombe at a shopping center parking lot in Henderson, Nevada where he had agreed to meet the girl for a sexual encounter. During the execution of a search warrant at Pincombe’s residence, law enforcement recovered digital devices, including his personal cell phone, that contained more than 450 depictions of child pornography.

The case was investigated by the FBI, the Henderson Police Department, and the Internet Crimes Against Children Task Force. Assistant U.S. Attorneys Frank Coumou and Elham Roohani 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.

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LAS VEGAS, Nev. – A former Henderson resident pleaded guilty today to distributing images of child pornography, some of which were tweeted to his followers, announced U.S. Attorney Dayle Elieson of the District of Nevada.

Mark Alan Stoneking, 40, previously of Henderson, Nevada, now a resident of Elyria, Ohio, pleaded guilty to one count of distribution of child pornography. United States District Judge Richard Boulware II accepted the guilty plea and scheduled sentencing for May 31, 2018.

According to the plea agreement, Stoneking admitted that, on December 20, 2014, and January 6, 2015, he distributed using a Twitter account sexually explicit photos of children. On January 12, 2016, the Henderson Police Department and members of the Internet Crimes Against Children Task Force executed a search warrant at his residence in Henderson and seized electronic devices containing more than 600 videos and more than 200,000 images of child pornography.

The minimum statutory penalty is five years in prison and the maximum statutory penalty is 20 years in prison and a $250,000 fine. Stoneking will also be required to register as a sex offender under the Sex Offender Registration and Notification Act.

The case was investigated by the FBI and the Henderson Police Department. Assistant U.S. Attorney Tony Lopez is prosecuting 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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.

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LAS VEGAS, Nev. – A man was sentenced today to a total of 25 months in prison for his role in a $290,000 income tax return fraud conspiracy and for violation of his supervised release, announced U.S. Attorney Dayle Elieson for the District of Nevada.

Walter Fabian Guzman, 39, of Pahrump, Nevada, previously pleaded guilty to one-count of conspiracy to defraud and one-count of violation under supervision. United States District Judge Kent J. Dawson also ordered him to pay restitution in the amount of $290,364 to the victims.

According to the plea agreement, Guzman admitted that, from January 1, 2010 to August 9, 2010, he conspired with co-defendants Felix Guzman and Judas Godina to defraud the IRS by submitting false income tax returns for customers. Guzman recruited customers by telling them that he could generate large returns on their individual income tax returns. In furtherance of the scheme, Guzman and others submitted false W-2 forms which reported additional income and withholdings, and Schedule E forms which falsely reported business losses.

The case was investigated by the IRS-Criminal Investigations. Assistant U.S. Attorney Kathryn Newman prosecuted the case.

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A former Las Vegas City Councilman pleaded guilty today to orchestrating a scheme to steal tens of thousands of dollars from his reelection campaign, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Dayle Elieson of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Field Office.        

Ricki Barlow, 46, of Las Vegas, Nevada, pleaded guilty to one count of wire fraud before U.S. District Judge Andrew P. Gordon of the District of Nevada.  Sentencing is set for May 31.

“Rather than serving the community he was elected to represent, Ricki Barlow abused his position of trust and concocted a scheme to line his own pockets,” said Acting Assistant Attorney General Cronan.  “Corruption at any level of the government harms the community by undermining the public’s confidence in their elected leaders and government.  Because the effects of corruption are so corrosive, the Justice Department and our law enforcement partners are committed to vigorously investigating and prosecuting official corruption wherever it exists.”

“No one, including elected officials, is above the law,” said U.S. Attorney Elieson.  “The defendant violated his oath of office and the public’s trust for his personal gain. The U.S. Attorney’s Office is committed to protecting the community and to the vigorous prosecution of all who seek to personally enrich themselves at the public’s expense.”

“The public trust must be something that is cherished by all who serve in positions of public office,” said Special Agent in Charge Rouse.  “Sadly, Mr. Barlow abused his position for personal gain.  The FBI will continue to root out public corruption where it exists.  If you are in the community and are aware of an elected or appointed official engaging in illegal conduct, I encourage you to notify the FBI or U.S. Attorney’s Office.”

According to admissions made in connection with his guilty plea, Barlow was a candidate for re-election to the Las Vegas City Council in 2015, for which Barlow solicited donations from members of the Las Vegas community to his campaign, Ricki Barlow for City Council.  According to Barlow’s admissions, the campaign treasurer managed the campaign finances through a bank account independent of Barlow, but Barlow maintained ultimate authority over the spending of campaign funds, including how much to pay campaign vendors.  In order to secretly divert campaign funds to himself, Barlow admitted to orchestrating a kickback scheme whereby he hired friends and associates to work as campaign vendors, submit inflated invoices at his direction, and then kick back to Barlow approximately half of their campaign paychecks, typically in the form of cash.  Barlow admitted to secretly diverting $49,125 in campaign funds for his own personal use and benefit through the kickback scheme. 

Barlow also admitted to accepting an additional $17,000 in cash campaign contributions that he never reported to his campaign treasurer or transmitted to the campaign.  Instead, Barlow admitted that he diverted the campaign contributions for his own personal use.   

To conceal the scheme to steal campaign funds, Barlow admitted to causing his campaign to submit false campaign finance reports to the Nevada Secretary of State.    

The FBI investigated the case.  Trial Attorney Ryan J. Ellersick of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Daniel R. Schiess of the District of Nevada are prosecuting the case. 

LAS VEGAS, Nev. – A former Las Vegas City Councilman pleaded guilty today to orchestrating a scheme to steal tens of thousands of dollars from his reelection campaign, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Dayle Elieson of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Field Office.

Ricki Barlow, 46, of Las Vegas, Nevada, pleaded guilty to one count of wire fraud before U.S. District Judge Andrew P. Gordon of the District of Nevada. Sentencing is set for May 31, 2018.

“Rather than serving the community he was elected to represent, Ricki Barlow abused his position of trust and concocted a scheme to line his own pockets,” said Acting Assistant Attorney General Cronan. “Corruption at any level of the government harms the community by undermining the public’s confidence in their elected leaders and government. Because the effects of corruption are so corrosive, the Justice Department and our law enforcement partners are committed to vigorously investigating and prosecuting official corruption wherever it exists.”

“No one, including elected officials, is above the law,” said U.S. Attorney Elieson. “The defendant violated his oath of office and the public’s trust for his personal gain. The U.S. Attorney’s Office is committed to protecting the community and to the vigorous prosecution of all who seek to personally enrich themselves at the public’s expense.”

“The public trust must be something that is cherished by all who serve in positions of public office,” said Special Agent in Charge Rouse. “Sadly, Mr. Barlow abused his position for personal gain. The FBI will continue to root out public corruption where it exists.  If you are in the community and are aware of an elected or appointed official engaging in illegal conduct, I encourage you to notify the FBI or U.S. Attorney’s Office.”

According to admissions made in connection with his guilty plea, Barlow was a candidate for re-election to the Las Vegas City Council in 2015, for which Barlow solicited donations from members of the Las Vegas community to his campaign, Ricki Barlow for City Council.  According to Barlow’s admissions, the campaign treasurer managed the campaign finances through a bank account independent of Barlow, but Barlow maintained ultimate authority over the spending of campaign funds, including how much to pay campaign vendors. In order to secretly divert campaign funds to himself, Barlow admitted to orchestrating a kickback scheme whereby he hired friends and associates to work as campaign vendors, submit inflated invoices at his direction, and then kick back to Barlow approximately half of their campaign paychecks, typically in the form of cash. Barlow admitted to secretly diverting $49,125 in campaign funds for his own personal use and benefit through the kickback scheme. 

Barlow also admitted to accepting an additional $17,000 in cash campaign contributions that he never reported to his campaign treasurer or transmitted to the campaign. Instead, Barlow admitted that he diverted the campaign contributions for his own personal use.   

To conceal the scheme to steal campaign funds, Barlow admitted to causing his campaign to submit false campaign finance reports to the Nevada Secretary of State.    

The FBI investigated the case. Trial Attorney Ryan J. Ellersick of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Daniel R. Schiess of the District of Nevada are prosecuting the case. 

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LAS VEGAS, Nev. – A Las Vegas man who was found guilty by a jury for receiving over 100 child pornography photos and 100 videos was sentenced today to 150 months in prison, announced U.S. Attorney Dayle Elieson for the District of Nevada, Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division, and Sheriff Joseph Lombardo for the Las Vegas Metropolitan Police Department.

Frankie Allen Peraza, 39, was convicted last year of one-count of receipt of child pornography. In addition to the prison term, Peraza was sentenced to lifetime supervision and is required to register as a sex offender under the Sex Offender Registration and Notification Act. United States District Judge Andrew P. Gordon presided over the four-day jury trial and sentencing hearing.

According to the indictment and other court documents, in March 2013, a detective with the Las Vegas Metropolitan Police Department, in an undercover capacity, used a peer-to-peer file-sharing program and identified an IP address as advertising for sharing numerous file names indicative of child pornography. During an interview with Peraza, the IP address owner, he admitted that he downloaded child pornography. After a forensic examination, law enforcement found 110 photos and 110 videos of child pornography on devices belonging to Peraza.

The case was a joint investigation by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Elham Roohani and Alexandra Michael 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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.

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LAS VEGAS, Nev. – A convicted felon who carried a stolen 9mm handgun into an Alcoholics Anonymous meeting, then aimed the gun at a police officer was sentenced today to a total of 120 months in prison, announced U.S. Attorney Dayle Elieson for the District of Nevada.

Marcus Richard Thomas, 36, of Las Vegas, was sentenced today after previously pleading guilty to one-count of possession of a stolen firearm. United States District Judge Jennifer A. Dorsey presided over the sentencing hearing.

According to the plea agreement, Thomas admitted that, on March 31, 2017, he brought a stolen Glock 9mm firearm to an Alcoholics Anonymous meeting. When approached by law enforcement, Thomas aimed the firearm at the police officer, who in turn fired at Thomas, striking him. Thomas admitted that he knew the firearm was stolen.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Phillip N. Smith Jr. prosecuted the case.

This case was brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions 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, Attorney General Sessions announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.

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WASHINGTON – Attorney General Jeff Sessions and law enforcement partners announced today the largest coordinated sweep of elder fraud cases in history. The cases involve more than two hundred and fifty defendants from around the globe who victimized more than a million Americans, most of whom were elderly. The cases include criminal, civil, and forfeiture actions across more than 50 federal districts.  Of the defendants, 200 were charged criminally. In each case, offenders engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused losses of more than half a billion dollars. The Department coordinated its announcement with the FTC and state Attorneys General, who independently filed numerous cases targeting elder frauds within the sweep period.

Attorney General Sessions was joined in the announcement by FBI Acting Deputy Director David Bowdich; Chief Postal Inspector Guy Cottrell; FTC Acting Chairman Maureen Ohlhausen; and Kansas Attorney General and President of the National Association of Attorneys General Derek Schmidt.

“The Justice Department and its partners are taking unprecedented, coordinated action to protect elderly Americans from financial threats, both foreign and domestic,” said Attorney General Sessions. “Today’s actions send a clear message: we will hold perpetrators of elder fraud schemes accountable wherever they are. When criminals steal the hard-earned life savings of older Americans, we will respond with all the tools at the Department’s disposal – criminal prosecutions to punish offenders, civil injunctions to shut the schemes down, and asset forfeiture to take back ill-gotten gains. Today is only the beginning. I have directed Department prosecutors to coordinate with both domestic law enforcement partners and foreign counterparts to stop these criminals from exploiting our seniors.”

The actions charged a variety of fraud schemes, ranging from mass mailing, telemarketing and investment frauds to individual incidences of identity theft and theft by guardians. A number of cases involved transnational criminal organizations that defrauded hundreds of thousands of elderly victims, while others involved a single relative or fiduciary who took advantage of an individual victim. The schemes charged in these cases caused losses to more than a million victims.

“Winners. That’s what so many of the people who received these solicitations in the mail thought they were. But they’re not. They are victims of scams that Postal Inspectors have seen and investigated for decades. In fact, some of the same operators we encountered 20 years ago are back. But so are we. Yesterday, Postal Inspectors around the country executed search warrants on 14 locations that some of these same operators used to run their scams. We’re letting the American public know – and especially our vulnerable older Americans – that Postal Inspectors are working hard to protect them and ensure their confidence in the U.S. Mail,” said Chief Postal Inspector Cottrell.

“Over the last year, the FBI has initiated more than 200 financial crimes cases involving elderly victims who were devastated financially, emotionally, mentally and physically. Picking up the pieces of these fraud schemes can be equally as traumatizing for the caregivers of these elderly victims,” said Acting Deputy Director Bowdich. “The FBI reminds seniors and their caregivers to be vigilant. If any person believes they are the victim of, or have knowledge of fraud involving an elderly person, regardless of the loss amount, they should report it to the FBI.”

 

Actions against the Mass-mailing Fraud Industry

As part of the initiative, the Department’s Consumer Protection Branch, working with the U.S. Attorney’s Office for the Eastern District of New York and others, brought numerous cases this past week in a coordinated strike against more than 43 mass-mailing fraud operators, including criminal charges against six individuals.  In addition, law enforcement agents executed 14 premises search warrants from Las Vegas to south Florida, served numerous asset seizure warrants, and coordinated with the Vancouver Police in Canada, who executed over 20 warrants, including search warrants on business premises.

“The defendants targeted elderly and vulnerable consumers both in the United States and abroad, using U.S. addresses and the U.S. mails to try to legitimize their fraudulent schemes,” said U.S. Attorney for the Eastern District of New York Richard P. Donoghue. “They sold false promises of life-changing prizes that never came true. We will pursue the perpetrators of these mail schemes wherever they are located, and hold them accountable.”

These recently filed cases particularly targeted transnational criminal actors who collectively defrauded at least a million victims out of hundreds of millions of dollars. Indeed, just one of the schemes prosecuted criminally by the Consumer Protection Branch operated from 14 foreign countries to cost American victims more than $30 million. Click here for map showing a transnational, single fraud scheme.

Mass-mailing fraud inflicts hundreds of millions of dollars in losses to elderly U.S. victims each year. Department prosecutors and U.S. Postal Inspectors have taken a comprehensive approach to combatting this fraud, disrupting and prosecuting individuals who manage the schemes, artists who draft the fraudulent solicitations, list brokers who supply victim lists, and individuals who collect victim payments. Click here for fact-sheet with cases on mass-mailing fraud.

 

Actions against other elder fraud schemes

Prosecutors across the country from the Criminal Division’s Fraud Section, the Consumer Protection Branch and the U.S. Attorney’s Offices have heeded the call to focus resources on elder fraud cases. Over 50 U.S. Attorney’s Offices and Department Components filed elder fraud cases in the last year. Some examples of the elder financial exploitation prosecuted by the Department include:

• “Lottery phone scams,” in which callers convince seniors that a large fee or taxes must be paid before one can receive lottery winnings;
• “Grandparent scams,” which convince seniors that their grandchildren have been arrested and need bail money;
• “Romance scams,” which lull victims to believe that their online paramour needs funds for a U.S. visit or some other purpose;
• “IRS imposter schemes,” which defraud victims by posing as IRS agents and claiming that victims owe back taxes;
• “Guardianship schemes,” which siphon seniors’ financial resources into the bank accounts of deceitful relatives or guardians.

Many of these cases illustrate how an elderly American can lose his or her life savings to a duplicitous relative, guardian, or stranger who gains the victim’s trust. The devastating effects these cases have on victims and their families, both financially and psychologically, make prosecuting elder fraud a key Department priority.

 

Public Education

The Department has partnered with Senior Corps, a national service program administered by the federal agency the Corporation for National and Community Service, to educate seniors and prevent further victimization. The Senior Corps program engages more than 245,000 older adults in intensive service each year, who in turn, serve more than 840,000 additional seniors, including 332,000 veterans.

Using its vast network operating in more than 30,000 locations, Senior Corps volunteers will communicate about elder fraud to potential victims across the country and will use their skills, knowledge and experience to educate their peers and caregivers about the most prolific types of schemes and how to avoid them. Click here for information on Senior Corps' efforts to reduce elder fraud.

 

Coordination with state officials

Kansas Attorney General Schmidt highlighted the cases filed by state Attorneys General targeting elder frauds within in the sweep period, and he emphasized efforts at the state level to combat elder abuse and protect seniors from fraud and exploitation. He encouraged all of the state Attorneys General to devote enforcement and public education resources to preventing financial exploitation of senior citizens.

 

Coordination with foreign law enforcement

Exceptional assistance from foreign law enforcement partners amplified the effectiveness of the Department’s initiative. The sweep announced today benefited greatly from the work of the International Mass-Marketing Fraud Working Group (IMMFWG), a network of civil and criminal law enforcement agencies from Australia, Belgium, Canada, Europol, the Netherlands, Nigeria, Norway, Spain, the United Kingdom and the United States. The IMMFWG is co-chaired by the U.S. Department of Justice and FTC, and law enforcement in the United Kingdom, and serves as a model for international cooperation against specific threats that endanger the financial well-being of each member country’s residents. Attorney General Sessions expressed gratitude for the outstanding efforts of the working group, including law enforcement action taken as part of the sweep by the Vancouver Police Department in Canada to halt mass mailing schemes that defrauded hundreds of thousands of elderly victims worldwide.

 

Elder fraud complaints

Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov. 

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LAS VEGAS, Nev. – A Las Vegas man who was wanted by law enforcement in the District of Arizona for escaping from a Bureau of Prisons facility was found guilty by a jury yesterday of bank robbery, announced U.S. Attorney Dayle Elieson for the District of Nevada.

After a two-day trial, Richard Lee Canterbury, 68, was convicted of one-count of bank robbery. United States District Judge Kent J. Dawson presided over the trial. Sentencing is scheduled for May 30, 2018.

According to the indictment, on March 16, 2016, Canterbury entered a Nevada State Bank on Southern Highlands Parkway wearing a gray “fisherman” style hat, dark glasses, and a blue and white striped long sleeve shirt under a gray zip up vest, carrying a blue zip top bank bag. He approached a teller and showed a handwritten note which stated: “This Is A Robbery No Tricks Loose Bills Only Cooperate No One Gets Hurt Otherwise Everyone Dies.” The teller complied and placed approximately $1,901 and a GPS tracking device into the bag. Canterbury left the bank.

Soon after, using information from the GPS tracker and the description provided by the bank teller, officers with the Las Vegas Metropolitan Police Department located and stopped Canterbury’s vehicle. Officers located the stolen bank cash, the blue zip top bank bag, the handwritten note, and the tracker in his vehicle. Canterbury was still wearing the clothes that he wore during the robbery. He was arrested and taken into custody. Canterbury was serving a 46 month federal sentence for Felon in Possession of Firearms at the time when he escaped from the facility on January 27, 2016.

At the time of sentencing, Canterbury faces the statutory maximum penalty of 20 years in prison and a $250,000 fine.

The case was investigated by the FBI. Assistant U.S. Attorneys Lisa Cartier-Giroux and Jared L. Grimmer are prosecuting the case.

This case was brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions 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, Attorney General Sessions announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.

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LAS VEGAS, Nev. – A previously convicted felon was charged today for possession of a 12-inch pipe bomb that was found in a North Las Vegas house, announced U.S. Attorney Dayle Elieson of the District of Nevada.

Christopher Michael Robinson, 46, of North Las Vegas, is charged with one-count of unlawful possession of a destructive device and one-count of felon in possession of a firearm. His initial appearance in court is scheduled for March 1, 2018, before U.S. Magistrate Judge Nancy J. Koppe.

According to the indictment and criminal complaint, on January 11, 2018, North Las Vegas Police Department officers requested assistance from the Las Vegas Metropolitan Police Department, the Las Vegas Fire & Rescue, and the FBI related to a pipe bomb in a house. The house’s resident indicated that he had evicted Robinson for nonpayment of rent and that Robinson had in turn threatened to “blow up the house.” Bomb technicians used a robot to remove a 12-inch pipe bomb from the house. After inspection, it was determined that the pipe contained match heads, a pyrotechnic powder, and BB pellets (for fragmentation). During an interview with law enforcement, Robinson admitted to constructing the pipe bomb and stated that he was currently on parole in Hawaii for previously manufacturing a pipe bomb.

In addition to the current possession of a destructive device charge, Robinson is charged with being a former felon in possession of a destructive device after multiple prior felony convictions in Clark County, Nevada, and Hawaii.

If convicted, Robinson will face the statutory maximum penalty of 10 years in prison and a $250,000 fine per each count.

The case is a joint investigation by the FBI, the North Las Vegas Police Department, the Las Vegas Metropolitan Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Phillip N. Smith Jr. is prosecuting 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. Attorney General Jeff Sessions 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, Attorney General Sessions announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.

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A Las Vegas, Nevada, tax return preparer pleaded guilty today to filing fraudulent tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Dayle Elieson for the District of Nevada.

 

According to documents and information provided to the court, from 2009 through 2015, Ofelia Ronquillo, 62, prepared fraudulent income tax returns for clients through a business known as A.R. Financial LLC and later AJRC Tax Services, in Las Vegas, Nevada. Ronquillo included false items on her clients’ tax returns, including bogus charitable contributions, capital losses, and unreimbursed employee expenses—such as meals and transportation expenses, as well as claimed inflated refunds to which her clients were not entitled.  Ronquillo admitted that she caused a tax loss of more than $2.7 million.

 

U.S. District Court Judge Andrew P. Gordon scheduled sentencing for May 17.  Ronquillo faces a statutory maximum sentence of three years in prison for each count, as well as a period of supervised release, restitution and monetary penalties.

 

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Elieson commended special agents of Internal Revenue Service 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.

 

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

LAS VEGAS, Nev. – A Las Vegas, Nevada, tax return preparer pleaded guilty today to filing fraudulent tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Dayle Elieson for the District of Nevada.

According to documents and information provided to the court, from 2009 through 2015, Ofelia Ronquillo, 62, prepared fraudulent income tax returns for clients through a business known as A.R. Financial LLC and later AJRC Tax Services, in Las Vegas, Nevada. Ronquillo included false items on her clients’ tax returns, including bogus charitable contributions, capital losses, and unreimbursed employee expenses—such as meals and transportation expenses, as well as claimed inflated refunds to which her clients were not entitled.  Ronquillo admitted that she caused a tax loss of more than $2.7 million.

U.S. District Court Judge Andrew P. Gordon scheduled sentencing for May 17.  Ronquillo faces a statutory maximum sentence of three years in prison for each count, as well as a period of supervised release, restitution and monetary penalties.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Elieson commended special agents of Internal Revenue Service 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.

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LAS VEGAS, Nev. – A Las Vegas man was sentenced today to 97 months in prison for his role in a conspiracy to distribute 7,000 pills of MDMA, a synthetic drug commonly known as Ecstasy, and methamphetamine, announced U.S. Attorney Dayle Elieson for the District of Nevada.

Jordan Raeshaun Cambridge, 26, pleaded guilty on Sept. 6, 2017, to one count of conspiracy to distribute MDMA and methamphetamine. In addition to the prison term, U.S. District Judge Kent J. Dawson sentenced him to four years of supervised release.

According to the plea agreement, Cambridge admitted that he joined a conspiracy with others to distribute MDMA and methamphetamine for financial gain. He sold approximately 7,000 MDMA pills for $21,000. At the time of his arrest during a drug transaction, Cambridge had approximately 5,600 transformer-shaped MDMA pills and 1.5 grams of marijuana in his possession. During the execution of a search warrant of Cambridge’s residence in North Las Vegas, law enforcement found 4,997 MDMA pills, 267 grams of MDMA residue, 221.9 grams of methamphetamine, 201.4 grams of marijuana, a Rossi .38 caliber revolver, and a Raikal semi-automatic .380 handgun.

The case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Brandon Jaroch.

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LAS VEGAS, Nev. – A pain management doctor practicing in Las Vegas was arrested today and charged with 29-counts of unlawful distribution of fentanyl and for committing health care fraud, announced Attorney General Jeff Sessions, U.S. Attorney Dayle Elieson of the District of Nevada, Assistant Special Agent in Charge Dan Neill for the DEA’s Las Vegas field office, Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division, and Special Agent in Charge Christian J. Schrank for the Office of Inspector General of the U.S. Department of Health and Human Services Office Los Angeles Region.

Dr. Steven A. Holper, 66, is charged in an indictment with seven-counts of distribution of Fentanyl, a controlled substance, and 22-counts of providing a false statement relating to a health benefit program.

Fentanyl is a powerful synthetic opioid painkiller that is 100 times more potent than morphine and 40 to 60 times more potent than 100% pure heroin. Fentanyl is available in various forms, including Subsys. Subsys is only available through the Transmucosal Immediate-Release Fentanyl (TIRF) Risk Evaluation and Mitigation Strategy (REMS) Access program. The only FDA-approved indication for TIRF medicines are for use to manage breakthrough pain in adults with cancer. Dr. Holper routinely prescribed Subsys for his patients without cancer.

According to allegations contained in the indictment, which was unsealed today, from about July 19, 2015 through March 12, 2016, Holper allegedly prescribed Subsys to a patient without a legitimate medical purpose and outside the usual course of professional practice. The indictment further alleges that, from about November 21, 2013 through March 24, 2017, Holper knowingly made false statements to Medicare and private health insurance companies. Dr. Holper prescribed Subsys for patients without cancer and falsely represented 22 patients were cancer patients with breakthrough cancer pain, who were opioid tolerant and eligible for Subsys.

"Our great country has never before seen the levels of addiction and overdose deaths that we are suffering today. Sadly, some trusted medical professionals like doctors, nurses, and pharmacists have chosen to violate their oaths and exploit this crisis for cash—with devastating consequences. Our goals at the Department of Justice for 2018 are to reduce the number of opioid prescriptions, the number of overdose deaths, and violent crime—which is often drug-related. That's why I created the Opioid Fraud and Abuse Detection Unit and sent 12 top prosecutors to opioid hotspots around the country: to help us find the medical fraudsters who are flooding our streets with drugs. These prosecutors are already issuing indictments from Pittsburgh to Las Vegas. I want to thank the DEA, FBI, the Department of Health and Human Services, and the Henderson, Nevada Police Department, and Assistant U.S. Attorney Kilby Macfadden for their hard work on this case. I am convinced that these efforts make drugs less available on the streets, send a message to criminals, and ultimately make our communities much safer," said Attorney General Sessions.

“This indictment is another example of the U.S. Attorney’s Office commitment to hold doctors accountable when they violate federal laws designed to protect the health and safety of patients. The U.S. Attorney’s Office will continue to work with law enforcement partners to safeguard the public from prescription drug and opioid abuse and to ensure medical doctors are prioritizing patients’ health above their personal financial gain,” said U.S. Attorney Elieson.

“The individual arrested today wholly neglected the public’s trust - he violated the Hippocratic Oath that all healthcare professionals vow to uphold when the respect of the profession is bestowed upon them,” said Assistant Special Agent in Charge Neill. “Deliberately prescribing addictive and dangerous opioids outside the course of legitimate medical practice is drug dealing, and DEA is committed to holding drug dealers accountable.”   

“The accessibility of fentanyl and other deadly drugs are a threat to our communities,” said Special Agent in Charge Rouse. “Each and every day, the FBI and our partners in Nevada are working hard targeting distributors, who are consciously contributing to the appalling opioid crisis that is inflicting mayhem in neighborhoods all over the state of Nevada.”

 “Dr. Holper is charged with needlessly prescribing one of the deadliest forms of opioids and defrauding U.S. taxpayers,” said Special Agent in Charge Schrank. “With our law enforcement partners we will continue our fight to bring these suspected criminals to justice and protect our communities.”

The statutory maximum penalty for distribution of a controlled substance is 20 years in prison and the maximum penalty for health care fraud is 10 years in prison.

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

The case is being investigated by the Drug Enforcement Administration, Federal Bureau of Investigation, Office of Inspector General of the U.S. Department of Health and Human Services, and the Henderson Police Department. Assistant U.S. Attorney Kilby Macfadden is prosecuting the case.

If you have a tip or information about illegal sales or distribution of prescription opioids, including fentanyl, oxycodone, hydrocodone, etc., by doctors and pharmacies, call the DEA at 1-877-RX-Abuse (792-2873). 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. 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.

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LAS VEGAS, Nev. – A California man who was convicted of conspiracy to burn down a local business and extortion was sentenced Thursday to 151 months in prison, announced U.S. Attorney Dayle Elieson for the District of Nevada.

Joel Kenneth Ausbie, 53, of Fontana, California, was previously found guilty by a jury of one-count of conspiracy to commit arson and one-count of committing extortion by force or threat of injury. United States District Judge James C. Mahan presided over the three-day jury trial and the sentencing hearing.

According to the superseding indictment and other court documents, Ausbie recruited and paid co-defendant Joseph A. Strickland to discharge a firearm into Ausbie’s estranged common law wife’s parents’ home. He wanted to compel his estranged wife to return money that he believed belonged to him. Ausbie could not locate his estranged wife who was in hiding, and instead targeted her family members to obtain payment.

On October 20, 2015, at approximately 1:00 a.m., following Ausbie’s orders, Strickland went to the parents’ home and shot a revolver six times into the occupied residence. He then threw vice grips into a window with a note attached demanding that Ausbie’s estranged wife return the money to Ausbie. The note read: “…This is a warning! Ima touch everything you love in a vicious way! Return that money or continue to rest easy with your families’ blood on you hands… Give me my money! Ima kill kill kill and kill.”

Ausbie and co-defendant Calvin Robinson subsequently sent a series of text messages to the parents threatening that if the money was not returned to Ausbie, then they would be killed. Ausbie then recruited Strickland to set fire to the parents’ business, Las Vegas Kettle Corn & Special Events, LLC, in Henderson. Robinson provided Strickland with directions and a note for him to tape to the front window of the business after setting the fire. The note read: “I still don’t have my money. This is the last warning! Next time someone is going to be dead.”

On October 30, 2015, Strickland set fire to the business as directed and left the note. The business was heavily damaged by the fire and was permanently closed. Ausbie recruited Strickland to set another fire to the parents’ second store location at the Downtown Container Park on Fremont Street. However, law enforcement arrested Ausbie prior to him arranging payment for the arson, and, as a result, that arson did not occur.

Robinson, 42, of Pomona, Calif., pleaded guilty and was sentenced to 108 months in prison. Strickland, 35, pleaded guilty and was sentenced to 30 months in prison.

The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Lisa Cartier-Giroux and Cristina D. Silva prosecuted the case.

To report a tip about suspicious arson activity contact the Bureau of Alcohol, Tobacco, Firearms and Explosives at 1-888-ATF-FIRE (283-3473) or visit www.reportit.com.

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A federal indictment was unsealed today charging 36 individuals for their alleged roles in the Infraud Organization, an Internet-based cybercriminal enterprise engaged in the large-scale acquisition, sale, and dissemination of stolen identities, compromised debit and credit cards, personally identifiable information, financial and banking information, computer malware, and other contraband.

Following the return of a nine-count superseding indictment by a Las Vegas, Nevada, grand jury alleging racketeering conspiracy and other crimes, federal, state, local, and international law enforcement authorities arrested 13 defendants from the United States and six countries: Australia, the United Kingdom, France, Italy, Kosovo and Serbia.

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Dayle Elieson of the District of Nevada, and Acting Executive Associate Director Derek N. Benner of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) made the announcement.

“Today’s indictment and arrests mark one of the largest cyberfraud enterprise prosecutions ever undertaken by the Department of Justice,” said Acting Assistant Attorney General Cronan.  “As alleged in the indictment, Infraud operated like a business to facilitate cyberfraud on a global scale.  Its members allegedly caused more than $530 million in actual losses to consumers, businesses, and financial institutions alike—and it is alleged that the losses they intended to cause amounted to more than $2.2 billion.  The Department of Justice refuses to allow these cybercriminals to use the perceived anonymity of the Internet as a shield for their crimes.  We are committed to working closely with our international counterparts to identify, investigate, and bring to justice the perpetrators of these crimes, wherever in the world they operate.”

“The U.S. Attorney’s Office is steadfastly committed to protecting America’s national and economic security,” said U.S. Attorney Elieson. “Criminals cannot hide behind their computer screens. We are working vigilantly with American and international law enforcement partners to identify and disrupt transnational cybercrime organizations, such as the Infraud Organization.”

“Criminal cyber organizations like Infraud threaten not just U.S. citizens but people in every corner of the globe,” said HSI Acting Executive Associate Director Benner. “The actions of computer hackers and identity thieves not only harm countless innocent Americans, but the threat they pose to our financial system and global commerce cannot be overstated.  The criminals involved in such schemes may think they can escape detection by hiding behind their computer screens here and overseas, but as this case shows, cyberspace is not a refuge from justice.  HSI will continue working with our law enforcement partners in this country and around the world to aggressively target cyber thieves to ensure the perpetrators face the full weight of the law.”

According to the indictment, the Infraud Organization was created in October 2010 by Svyatoslav Bondarenko aka “Obnon,” aka “Rector,” aka “Helkern,” 34, of Ukraine, to promote and grow interest in the Infraud Organization as the premier destination for carding—purchasing retail items with counterfeit or stolen credit card information—on the Internet.  Under the slogan, “In Fraud We Trust,” the organization directed traffic and potential purchasers to the automated vending sites of its members, which served as online conduits to traffic in stolen means of identification, stolen financial and banking information, malware, and other illicit goods.  It also provided an escrow service to facilitate illicit digital currency transactions among its members and employed screening protocols that purported to ensure only high quality vendors of stolen cards, personally identifiable information, and other contraband were permitted to advertise to members. 

According to the indictment, Infraud members held defined roles within the organization’s hierarchy.  “Administrators” managed day-to-day operation of and strategic planning for the organization, approved and monitored membership, and meted out punishments and rewards to members.  “Super Moderators” oversaw and administered specific subject-matter areas within their expertise.  “Moderators” moderated one or two specific sub-forums within their areas of subject-matter expertise.  “Vendors” sold illicit products and services to Infraud members.  Finally, “VIP Members” and “Members” used the Infraud forum to gather information and to facilitate their criminal activities.  As of March 2017, there were 10,901 registered members of the Infraud Organization. 

During the course of its seven-year history, the Infraud Organization inflicted approximately $2.2 billion in intended losses, and more than $530 million in actual losses, on a wide swath of financial institutions, merchants, and private individuals, and would have continued to do so for the foreseeable future if left unchecked. 

The defendants indicted for their alleged roles in the Infraud Organization’s transnational racketeering conspiracy include:

• Svyatoslav Bondarkeno of Ukraine;
• Amjad Ali aka “Amjad Ali Chaudary,” aka “RedruMZ,” aka “Amjad Chaudary,” 35, of Pakistan;
• Roland Patrick N’Djimbi Tchikaya aka “Darker,” aka “dark3r.cvv,” 37, of France;
• Miroslav Kovacevic aka “Goldjunge,” 32, of Serbia;
• Frederick Thomas aka “Mosto,” aka “1stunna,” aka “Bestssn,” 37, of Alabama;
• Osama Abdelhamed aka “MrShrnofr,” aka “DrOsama,” aka “DrOsama1,” 27, of Egypt;
• Besart Hoxha aka “Pizza,” 25, of Kosovo;
• Raihan Ahmed aka “Chan,” aka “Cyber Hacker,” aka “Mae Tony,” aka “Tony,” 26, of Bangladesh;
• Andrey Sergeevich Novak aka “Unicc,” aka “Faaxxx,” aka “Faxtrod” of the Russian Federation;
• Valerian Chiochiu aka “Onassis,” aka “Flagler,” aka “Socrate,” aka “Eclessiastes,” 28, of Moldova;
• John Doe #8 aka “Aimless88;”
• Gennaro Fioretti aka “DannyLogort,” aka “Genny Fioretti,” 56, of Italy;
• Edgar Rojas aka “Edgar Andres Viloria Rojas,” aka “Guapo,” aka “Guapo1988,” aka “Onlyshop,” 27, of Australia;
• John Telusma aka “John Westley Telusma,” aka “Peterelliot,” aka “Pete,” aka “Pette,” 33, of Brooklyn, New York;
• Rami Fawaz aka “Rami Imad Fawaz,” aka “Validshop,” aka “Th3d,” aka “Zatcher,” aka “Darkeyes,” 26, of Ivory Coast;
• Muhammad Shiraz aka “Moviestar,” aka “Leslie” of Pakistan;
• Jose Gamboa aka “Jose Gamboa-Soto,” aka “Rafael Garcia,” aka “Rafael101,” aka “Memberplex2006” aka “Knowledge,” 29, of Los Angeles, California;
• Alexey Klimenko aka “Grandhost,” 34, of Ukraine;
• Edward Lavoile aka “Eddie Lavoie,” aka “Skizo,” aka “Eddy Lavoile,” 29, of Canada;
• Anthony Nnamdi Okeakpu aka “Aslike1,” aka “Aslike,” aka “Moneymafia,” aka “Shilonng,” 29, of the United Kingdom;
• Pius Sushil Wilson aka “FDIC,” aka “TheRealGuru,” aka “TheRealGuruNYC,” aka “RealGuru,” aka “Po1son,” aka “1nfection,” aka “1nfected,” 31, of Flushing, New York;
• Muhammad Khan aka “CoolJ2,” aka “CoolJ,” aka “Secureroot,” aka “Secureroot1,” aka “Secureroot2,” aka “Mohammed Khan,” 41, of Pakistan;
• John Doe #7 aka “Muad’Dib;”
• John Doe #1 aka “Carlitos,” aka “TonyMontana;”
• David Jonathan Vargas aka “Cashmoneyinc,” aka “Avb,” aka “Poony,” aka “Renegade11,” aka “DvdSVrgs,” 33, of San Diego, California;
• John Doe #2;
• Marko Leopard aka “Leopardmk,” 28, of Macedonia;
• John Doe #4 aka “Best4Best,” aka “Wazo,” aka “Modmod,” aka “Alone1,” aka“Shadow,” aka “Banderas,” aka “Banadoura;”
• Liridon Musliu aka “Ccstore,” aka “Bowl,” aka “Hulk,” 26, of Kosovo;
• John Doe #5 aka “Deputat,” aka “Zo0mer;”
• Mena Mouries Abd El-Malak aka “Mina Morris,” aka “Source,” aka “Mena2341,” aka “MenaSex,” 34, of Egypt; and
• John Doe #6 aka “Goldenshop,”aka “Malov.”

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In addition, Novak and “Goldenshop” are charged with three counts each and “Deputat” and Musliu one count each of possession of 15 or more counterfeit and unauthorized access devices.

The superseding indictment is the result of an investigation conducted by the Las Vegas Office of Homeland Security Investigations; the Henderson, Nevada, Police Department; the Criminal Division’s Organized Crime and Gang Section; and the U.S. Attorney’s Office for the District of Nevada.

The international operation to dismantle the Infraud Organization would have been impossible without the significant efforts and timely cooperation of the Justice Department’s Office of International Affairs and International Organized Crime Intelligence and Operations Center; Interpol Rome; Interpol Tirana; the Italian National Police (Postal and Communications Police); the Australian Federal Police  and the International Crime Cooperation Central Authority, Australian Government Attorney-General’s Department; the U.S. Diplomatic Security Service, Regional Security Office at U.S. Embassy Tirana, Albania; the City of London Police, DCPCU; the French Ministry of Justice, the Paris Prosecutor, L’Office Central de Lutte contre la Criminalité liée aux Technologies de l’Information et de la Communication; the judicial and police authorities of the Grand Duchy of Luxembourg; the Directorate for Organized Crime Investigation, Sector for Cyber Crime Investigation; the Basic Prosecution Office Pristina, Kosovo; and the Ministry of Justice of the Republic of Kosova, Department for International Legal Cooperation and the Special Prosecution Office for High-Tech Crime of the Republic of Serbia. 

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

Trial Attorneys Kelly Pearson and Chimaobim Nwachukwu of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Chad W. McHenry of the District of Nevada are prosecuting the case.

LAS VEGAS, Nev. – A federal indictment was unsealed today charging 36 individuals for their alleged roles in the Infraud Organization, an Internet-based cybercriminal enterprise engaged in the large-scale acquisition, sale, and dissemination of stolen identities, compromised debit and credit cards, personally identifiable information, financial and banking information, computer malware, and other contraband.

Following the return of a nine-count superseding indictment by a Las Vegas, Nevada, grand jury alleging racketeering conspiracy and other crimes, federal, state, local, and international law enforcement authorities arrested 13 defendants from the United States and six countries: Australia, the United Kingdom, France, Italy, Kosovo and Serbia.

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Dayle Elieson of the District of Nevada, and Acting Executive Associate Director Derek N. Benner of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) made the announcement.

“Today’s indictment and arrests mark one of the largest cyberfraud enterprise prosecutions ever undertaken by the Department of Justice,” said Acting Assistant Attorney General Cronan.  “As alleged in the indictment, Infraud operated like a business to facilitate cyberfraud on a global scale.  Its members allegedly caused more than $530 million in actual losses to consumers, businesses, and financial institutions alike—and it is alleged that the losses they intended to cause amounted to more than $2.2 billion.  The Department of Justice refuses to allow these cybercriminals to use the perceived anonymity of the Internet as a shield for their crimes.  We are committed to working closely with our international counterparts to identify, investigate, and bring to justice the perpetrators of these crimes, wherever in the world they operate.”

“The U.S. Attorney’s Office is steadfastly committed to protecting America’s national and economic security,” said U.S. Attorney Elieson. “Criminals cannot hide behind their computer screens. We are working vigilantly with American and international law enforcement partners to identify and disrupt transnational cybercrime organizations, such as the Infraud Organization.”

“Criminal cyber organizations like Infraud threaten not just U.S. citizens but people in every corner of the globe,” said HSI Acting Executive Associate Director Benner. “The actions of computer hackers and identity thieves not only harm countless innocent Americans, but the threat they pose to our financial system and global commerce cannot be overstated.  The criminals involved in such schemes may think they can escape detection by hiding behind their computer screens here and overseas, but as this case shows, cyberspace is not a refuge from justice.  HSI will continue working with our law enforcement partners in this country and around the world to aggressively target cyber thieves to ensure the perpetrators face the full weight of the law.”

According to the indictment, the Infraud Organization was created in October 2010 by Svyatoslav Bondarenko aka “Obnon,” aka “Rector,” aka “Helkern,” 34, of Ukraine, to promote and grow interest in the Infraud Organization as the premier destination for carding—purchasing retail items with counterfeit or stolen credit card information—on the Internet.  Under the slogan, “In Fraud We Trust,” the organization directed traffic and potential purchasers to the automated vending sites of its members, which served as online conduits to traffic in stolen means of identification, stolen financial and banking information, malware, and other illicit goods.  It also provided an escrow service to facilitate illicit digital currency transactions among its members and employed screening protocols that purported to ensure only high quality vendors of stolen cards, personally identifiable information, and other contraband were permitted to advertise to members.

According to the indictment, Infraud members held defined roles within the organization’s hierarchy.  “Administrators” managed day-to-day operation of and strategic planning for the organization, approved and monitored membership, and meted out punishments and rewards to members.  “Super Moderators” oversaw and administered specific subject-matter areas within their expertise.  “Moderators” moderated one or two specific sub-forums within their areas of subject-matter expertise.  “Vendors” sold illicit products and services to Infraud members.  Finally, “VIP Members” and “Members” used the Infraud forum to gather information and to facilitate their criminal activities.  As of March 2017, there were 10,901 registered members of the Infraud Organization. 

During the course of its seven-year history, the Infraud Organization inflicted approximately $2.2 billion in intended losses, and more than $530 million in actual losses, on a wide swath of financial institutions, merchants, and private individuals, and would have continued to do so for the foreseeable future if left unchecked. 

The defendants indicted for their alleged roles in the Infraud Organization’s transnational racketeering conspiracy include:

• Svyatoslav Bondarenko of Ukraine;
• Amjad Ali aka “Amjad Ali Chaudary,” aka “RedruMZ,” aka “Amjad Chaudary,” 35, of Pakistan;
• Roland Patrick N’Djimbi Tchikaya aka “Darker,” aka “dark3r.cvv,” 37, of France;
• Miroslav Kovacevic aka “Goldjunge,” 32, of Serbia;
• Frederick Thomas aka “Mosto,” aka “1stunna,” aka “Bestssn,” 37, of Alabama;
• Osama Abdelhamed aka “MrShrnofr,” aka “DrOsama,” aka “DrOsama1,” 27, of Egypt;
• Besart Hoxha aka “Pizza,” 25, of Kosovo;
• Raihan Ahmed aka “Chan,” aka “Cyber Hacker,” aka “Mae Tony,” aka “Tony,” 26, of Bangladesh;
• Andrey Sergeevich Novak aka “Unicc,” aka “Faaxxx,” aka “Faxtrod” of the Russian Federation;
• Valerian Chiochiu aka “Onassis,” aka “Flagler,” aka “Socrate,” aka “Eclessiastes,” 28, of Moldova;
• John Doe #8 aka “Aimless88;”
• Gennaro Fioretti aka “DannyLogort,” aka “Genny Fioretti,” 56, of Italy;
• Edgar Rojas aka “Edgar Andres Viloria Rojas,” aka “Guapo,” aka “Guapo1988,” aka “Onlyshop,” 27, of Australia;
• John Telusma aka “John Westley Telusma,” aka “Peterelliot,” aka “Pete,” aka “Pette,” 33, of Brooklyn, New York;
• Rami Fawaz aka “Rami Imad Fawaz,” aka “Validshop,” aka “Th3d,” aka “Zatcher,” aka “Darkeyes,” 26, of Ivory Coast;
• Muhammad Shiraz aka “Moviestar,” aka “Leslie” of Pakistan;
• Jose Gamboa aka “Jose Gamboa-Soto,” aka “Rafael Garcia,” aka “Rafael101,” aka “Memberplex2006” aka “Knowledge,” 29, of Los Angeles, California;
• Alexey Klimenko aka “Grandhost,” 34, of Ukraine;
• Edward Lavoile aka “Eddie Lavoie,” aka “Skizo,” aka “Eddy Lavoile,” 29, of Canada;
• Anthony Nnamdi Okeakpu aka “Aslike1,” aka “Aslike,” aka “Moneymafia,” aka “Shilonng,” 29, of the United Kingdom;
• Pius Sushil Wilson aka “FDIC,” aka “TheRealGuru,” aka “TheRealGuruNYC,” aka “RealGuru,” aka “Po1son,” aka “1nfection,” aka “1nfected,” 31, of Flushing, New York;
• Muhammad Khan aka “CoolJ2,” aka “CoolJ,” aka “Secureroot,” aka “Secureroot1,” aka “Secureroot2,” aka “Mohammed Khan,” 41, of Pakistan;
• John Doe #7 aka “Muad’Dib;”
• John Doe #1 aka “Carlitos,” aka “TonyMontana;”
• David Jonathan Vargas aka “Cashmoneyinc,” aka “Avb,” aka “Poony,” aka “Renegade11,” aka “DvdSVrgs,” 33, of San Diego, California;
• John Doe #2;
• Marko Leopard aka “Leopardmk,” 28, of Macedonia;
• John Doe #4 aka “Best4Best,” aka “Wazo,” aka “Modmod,” aka “Alone1,” aka“Shadow,” aka “Banderas,” aka “Banadoura;”
• Liridon Musliu aka “Ccstore,” aka “Bowl,” aka “Hulk,” 26, of Kosovo;
• John Doe #5 aka “Deputat,” aka “Zo0mer;”
• Mena Mouries Abd El-Malak aka “Mina Morris,” aka “Source,” aka “Mena2341,” aka “MenaSex,” 34, of Egypt; and
• John Doe #6 aka “Goldenshop,”aka “Malov.”

In addition, Novak and “Goldenshop” are charged with three counts each and “Deputat” and Musliu one count each of possession of 15 or more counterfeit and unauthorized access devices.

The superseding indictment is the result of an investigation conducted by the Las Vegas Office of Homeland Security Investigations; the Henderson, Nevada, Police Department; the Criminal Division’s Organized Crime and Gang Section; and the U.S. Attorney’s Office for the District of Nevada.

The international operation to dismantle the Infraud Organization would have been impossible without the significant efforts and timely cooperation of the Justice Department’s Office of International Affairs and International Organized Crime Intelligence and Operations Center; Interpol Rome; Interpol Tirana; the Italian National Police (Postal and Communications Police); the Australian Federal Police  and the International Crime Cooperation Central Authority, Australian Government Attorney-General’s Department; the U.S. Diplomatic Security Service, Regional Security Office at U.S. Embassy Tirana, Albania; the City of London Police, DCPCU; the French Ministry of Justice, the Paris Prosecutor, L’Office Central de Lutte contre la Criminalité liée aux Technologies de l’Information et de la Communication; the judicial and police authorities of the Grand Duchy of Luxembourg; the Directorate for Organized Crime Investigation, Sector for Cyber Crime Investigation; the Basic Prosecution Office Pristina, Kosovo; and the Ministry of Justice of the Republic of Kosova, Department for International Legal Cooperation and the Special Prosecution Office for High-Tech Crime of the Republic of Serbia. 

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

Trial Attorneys Kelly Pearson and Chimaobim Nwachukwu of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Chad W. McHenry of the District of Nevada are prosecuting the case.

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RENO, Nev. – A Fort McDermitt, Nevada, resident was charged today in federal court for allegedly murdering two individuals on the Fort McDermitt Indian Reservation, announced U.S. Attorney Dayle Elieson of the District of Nevada.

Stoney Prior, 40, a member of the Fort McDermitt Shoshone Paiute Tribe, was charged in a criminal complaint with two-counts of first-degree murder in Indian Country. A preliminary hearing is scheduled before U.S. District Magistrate Judge William G. Cobb on February 22, 2018.

According to allegations contained in the complaint, on January 31, 2018, Prior shot and killed two individuals in a residence. The first victim was shot in the head and neck with a shotgun and the second victim was shot in the arm, body, and head. Both victims were members of the Fort McDermitt Shoshone Paiute Tribe.

If convicted, the mandatory minimum sentence is life in prison.

The case is being investigated by the FBI and the Bureau of Indian Affairs with assistance from the Humboldt County Sheriff’s Office. Assistant U.S. Attorney Shannon M. Bryant is prosecuting the case.

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LAS VEGAS, Nev. – An Arizona man was charged in U.S. District Court in Phoenix today for the manufacture and sale of armor piercing ammunition without a license. He allegedly sold ammunition to Stephen Paddock, who was later identified as the perpetrator of the October 1, 2017 mass shooting in Las Vegas, announced United States Attorney Dayle Elieson of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division.

Douglas Haig, 55, of Mesa, Ariz., is charged in a criminal complaint with one-count of conspiracy to manufacture and sell armor piercing ammunition. He appeared this afternoon before U.S. District Court Magistrate Judge Michelle H. Burns and was released on a bond with conditions pending a status conference regarding scheduling of a preliminary hearing on Feb. 15 in Phoenix. If convicted, he faces the statutory maximum penalty of five years in prison, a $250,000 fine, or both.

According to the criminal complaint, Haig met with Paddock on more than one occasion. Paddock met Haig at his home in September of 2017 to purchase ammunition. Haig previously operated “Specialized Military Ammunition,” an Internet business selling high explosive armor piercing incendiary ammunition, armor piercing incendiary ammunition, and armor piercing ammunition. Business records reveal that Haig sold armor piercing ammunition throughout the U.S., including Nevada, Texas, Virginia, Wyoming, and South Carolina. Haig did not have a license to manufacture armor piercing ammunition.

During an interview, Haig told investigators that he reloads ammunition, but does not offer reloaded cartridges for sale to his customers and none of the ammunition recovered in Las Vegas crime scenes would have tool marks on them consistent with his reloading equipment. Reloaded ammunition refers to ammunition that is manufactured from component parts, including previously fired cartridge cases. Based on a forensic examination of rounds recovered in the shooter’s hotel rooms, Haig’s fingerprints were found on reloaded, unfired .308 caliber cartridges. Forensic examination also revealed that armor piercing ammunition recovered inside of the shooter’s rooms had tool marks consistent with Haig’s reloading equipment.

The public is reminded that a criminal complaint contains only a charge and is not evidence of guilt. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The investigation is being conducted by the FBI’s Las Vegas Division with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Las Vegas Metropolitan Police Department. The case is being prosecuted by Assistant U.S. Attorneys Cristina D. Silva, Patrick Burns, and Nicholas D. Dickinson.

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A Las Vegas, Nevada, business owner was sentenced today to 12 months and one day in prison for evading payment of employment taxes and penalties, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Dayle Elieson of the District of Nevada.

 

Maria Larkin, 55, was convicted of tax evasion by a federal jury in Las Vegas in June.  According to the evidence presented at trial, Larkin owned and operated Five Star Home Health Care Inc. (Five Star).  Larkin was responsible for collecting and paying over income, social security, and Medicare tax withheld from her employees’ wages.  From 2004 through 2009, Larkin did not pay over to the Internal Revenue Service the employment taxes she withheld.  As a result, the IRS assessed trust fund recovery penalties (TFRPs) against Larkin for these years, which made her personally liable for the unpaid employment taxes. 

 

Larkin concealed her assets and income to evade paying the TFRPs and to obstruct the IRS’s efforts to collect the outstanding taxes.  She lied to the IRS regarding her ability to pay, changed the name of her business, placed her business in the name of a nominee, had her employees cash checks for her, and bought a home in the name of a nominee.  In total, Larkin evaded more than $1.6 million in taxes.

 

In addition to the term of prison imposed, U.S. District Court Judge James C. Mahan ordered Larkin to serve three years of supervised release and to pay $1,153,633.50 in restitution to the IRS.

 

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Elieson commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney John T. Mulcahy of the Tax Division and Assistant U.S. Attorney Alexandra M. Michael, who prosecuted the case.

 

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

LAS VEGAS, Nev. – A Las Vegas, Nevada, business owner was sentenced today to 12 months and one day in prison for evading payment of employment taxes and penalties, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Dayle Elieson of the District of Nevada.

Maria Larkin, 55, was convicted of tax evasion by a federal jury in Las Vegas in June.  According to the evidence presented at trial, Larkin owned and operated Five Star Home Health Care Inc. (Five Star).  Larkin was responsible for collecting and paying over income, social security, and Medicare tax withheld from her employees’ wages. From 2004 through 2009, Larkin failed to pay over to the Internal Revenue Service (IRS) the employment taxes she withheld. As a result, the IRS assessed trust fund recovery penalties (TFRPs) against Larkin for these years, which made her personally liable for the unpaid employment taxes. 

Larkin concealed her assets and income to evade paying the TFRPs and to obstruct the IRS’s efforts to collect the outstanding taxes. She lied to the IRS regarding her ability to pay, changed the name of her business, placed her business in the name of someone else, had her employees cash checks for her, and bought a home in the name of someone else. In total, Larkin evaded more than $1.6 million in taxes.

In addition to the term of prison imposed, U.S. District Court Judge James C. Mahan ordered Larkin to serve three years of supervised release and to pay $1,153,633.50 in restitution to the IRS.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Elieson commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney John T. Mulcahy of the Tax Division and Assistant U.S. Attorney Alexandra M. Michael, who prosecuted the case.

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

 

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LAS VEGAS, Nev. – A Las Vegas man was found guilty by a jury today of three counts relating to child pornography possession, receipt, and advertising, announced U.S. Attorney Dayle Elieson for the District of Nevada.

Following a four-day trial, James Scott Alva, 45, was found guilty of one count of receipt of child pornography, one count of possession of child pornography, and one count of advertising of child pornography. United States District Judge Robert C. Jones presided over the trial and scheduled sentencing for April 9, 2018. Alva faces the statutory maximum penalty of 30 years in prison and a $250,000 fine.

According to the indictment, Alva possessed and received images of child pornography. Furthermore, he made and published an advertisement offering to exchange, display, and distribute child pornography.

The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys Christopher Burton and Elham Roohani prosecuted the case.

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

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LAS VEGAS, Nev. – A former Las Vegas Metropolitan Police Department (LVMPD) officer was sentenced today by U.S. District Judge Richard Boulware II to 12 months in prison and one year of supervised release for his use of excessive force during an arrest of a woman in 2015, announced U.S. Attorney Dayle Elieson of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Office. He was also ordered to pay a $20,000 fine and complete 300 hours of community service after serving his term of imprisonment.

Richard Scavone, 51, pleaded guilty on Sept. 29, 2017, to one count of deprivation of rights under color of law. He was working as a LVMPD patrol officer when the incident occurred. After conducting its own investigation into Scavone’s conduct, LVMPD terminated his employment.

According to the plea agreement, Scavone, who wore a body-worn camera, admitted that, on Jan. 6, 2015, he assaulted a handcuffed woman in his custody outside a Hampton Inn Hotel on Tropicana Blvd. He admitted that during the interaction with A.O., and while A.O. was handcuffed, he: shoved A.O. to the ground; grabbed her around the neck with his hand and threw her to the ground; struck her in the forehead with an open palm; grabbed her by the head and slammed her face onto the hood of his patrol vehicle; grabbed her by the hair and slammed her face onto the hood of his patrol vehicle a second time; and slammed A.O. into the door of his patrol vehicle. Scavone admitted that he took those actions without legal justification and that he knew his actions were against the law.

This case was investigated by the FBI with the cooperation of the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Phillip N. Smith Jr. and Nicholas Dickinson of the District of Nevada and Trial Attorney Julia Gegenheimer of the Civil Rights Division of the Department of Justice prosecuted the case.

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RENO, Nev. – A Wellington, Nevada resident was sentenced today to 151 months in prison for distribution of child pornography, announced Acting U.S. Attorney Steve W. Myhre for the District of Nevada.

 

Daniel O’Brien, 27, pleaded guilty on Sept. 14, 2017, to one count of distribution of child pornography. In addition to the prison term, U.S. District Judge Howard D. McKibben sentenced O’Brien to lifetime supervised release to follow his term of imprisonment.

 

According to the plea agreement, O’Brien admitted that he used his cell phone to send images and videos over the Internet of children engaged in sexually explicit acts. On Nov. 17, 2016, during the execution of search warrant of O’Brien’s residence, law enforcement found 172 images and 30 videos depicting child pornography on his cell phone and computer.

 

The case was investigated by the Northern Nevada Child Exploitation Task Force, which is comprised of members of the FBI, the Reno Police Department, the Washoe County Sheriff’s Office, and the Nevada Attorney General’s Office. The Douglas County Sheriff’s Office also assisted with the investigation. Assistant U.S. Attorney Shannon M. Bryant 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.

 

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