District of Nevada

LAS VEGAS, Nev. - Attorney General Jeff Sessions has selected the District of Nevada to receive two additional Assistant United States Attorneys to focus exclusively on violent crime. The District of Nevada was selected as one of 27 districts throughout the United States to receive additional resources for the fight against violent crime.

 

“Led by our 94 United States Attorney’s Offices, Project Safe Neighborhoods (PSN) task forces are hitting the streets across America to apprehend and bring violent criminals to justice. I have asked Congress for additional PSN funding next year because I believe nothing will be more effective at reducing violent crime,” said Attorney General Sessions. "Under this program, I am asking a great deal of our United States Attorneys. I am both empowering them and holding them accountable for results. To put them in the best position to impact and reduce violent crime, it is my privilege to announce today that through a re-allocation of resources, we will be enlisting and deploying 40 additional violent crime prosecutors across the United States."

 

“The U.S. Attorney’s Office will hire two new Assistant U.S. Attorneys to join our dedicated team in reducing violent crime in Nevada. The new prosecutors will work closely with law enforcement partner agencies to reduce violent crime and to remove dangerous offenders from our communities,” said Acting United States Attorney Steven W. Myhre.

 

More information on the locations of those 40 Assistant United States Attorneys and violent crime task forces is below:

 

AUSA Breakdown by District

Northern District of Alabama - 1
Eastern District of Arkansas - 1
Northern District of California - 2
Southern District of California - 1
District of Connecticut - 1
District of Columbia - 1
Central District of Illinois - 1
Northern District of Illinois - 3
Southern District of Indiana - 1
Eastern District of Louisiana - 1
District of Maryland - 3
Western District of Michigan - 1
Eastern District of Missouri - 2
Western District of Missouri - 1
District of Nevada - 2
District of New Mexico - 1
Eastern District of New York - 2
Western District of New York - 1
Northern District of Ohio - 2
Eastern District of Pennsylvania - 1
Middle District of Tennessee - 2
Western District of Tennessee - 2
Eastern District of Texas - 1
Northern District of Texas - 1
Southern District of Texas - 2
Western District of Texas - 1
Eastern District of Wisconsin – 2

 

 

Project Safe Neighborhoods is a nationwide commitment by the Department of Justice to reduce gun and gang crime in America by networking local programs and providing these programs with additional tools necessary to be successful. For more information about Project Safe Neighborhoods, visit www.justice.gov/usao-nv.

 

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LAS VEGAS, Nev. – Attorney General Jeff Sessions today announced the appointment of Dayle Elieson as Interim United States Attorney pursuant to 28 U.S.C. § 546, which provides that “the Attorney General may appoint a United States Attorney for the district in which the office of United States Attorney is vacant.” This appointment will take effect on January 5, 2018.

 

“Dayle Elieson has served this Department for more than 15 years and has prosecuted criminals for more than 20 years,” said Attorney General Sessions. “At the federal level, she has successfully taken on fraudsters, money launderers, and terrorists. She is experienced, highly respected, and she will be an excellent leader as Interim U.S. Attorney for Nevada.”

 

Ms. Elieson has prosecuted cases at both the state and federal levels, having served as an Assistant District Attorney for Dallas County and Denton County, Texas, and as an Assistant United States Attorney for the Northern District of Texas. Ms. Elieson received her J.D. from Brigham Young University J. Reuben Clark Law School and her B.A. in English from the University of Texas at Austin.

 

Upon the appointment of Ms. Elieson as Interim United States Attorney, Acting United States Attorney Steven W. Myhre will resume his role as First Assistant United States Attorney.

 

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LAS VEGAS, Nev. - A Las Vegas, Nevada man was sentenced today to 120 months in prison for robbing a bank located inside a grocery store, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.

 

Anthony Donnell Tyner, 40, previously pleaded guilty to one count of bank robbery. In addition to the prison term, U.S. District Judge Andrew P. Gordon sentenced Tyner to three years of supervised release to follow his term of imprisonment. Tyner is a former felon with previous bank robbery convictions.

 

According to the criminal complaint, on Nov. 18, 2016, Tyner, who wore a fake gray beard, entered the U.S. Bank located inside the Albertson’s at 10140 West Flamingo Rd. He handed the bank teller a demand note and threatened to shoot the teller. Tyner stole $493 from the bank.

 

The case was investigated by the Federal Bureau of Investigation and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Phillip N. Smith Jr. prosecuted the case.

 

This case was brought as part of Project Safe Neighborhoods, a nationwide commitment by the Department of Justice to reduce gun and gang crime in America by networking local programs that target gun and gun crime and providing these programs with additional tools necessary to be successful. For more information about Project Safe Neighborhoods, visit www.justice.gov/usao_nv.

 

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LAS VEGAS, Nev. – A Henderson, Nevada man was sentenced today to 18 months in prison and two years supervised release for selling military-issued ammunition, smoke grenades, and other equipment stolen from the U.S. Air Force, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.

Temogen Tran Noguni, 38, was sentenced by U.S. District Chief Judge Gloria M. Navarro. He pleaded guilty on Aug. 18, 2017, to one count of unauthorized sale of property of the United States. Co-defendants Jonathan Owens, 27, a Staff Sergeant at Nellis Air Force Base Nevada, and Daniel Schwartz, 42, both previously pleaded guilty to criminal charges.

According to the plea agreement, Noguni admitted that, from August 2015 to November 2015, he purchased from Owens stolen smoke grenades; body armor plate carrier vests; a red dot optical rifle scope; a set of night vision binoculars and goggles; and military ammunition to include 9mm, 5.56x45mm, and .50 caliber cartridges, all from Nellis Air Force Base Nevada. The .50 caliber ammunition, which is not available for sale to the general public, is armor-piercing incendiary ammunition designed to pierce the shell of armored vehicles and explode inside. Noguni then listed the items for sale on the Internet.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Air Force Office of Special Investigations. Assistant U.S. Attorney Jared L. Grimmer prosecuted the case.

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LAS VEGAS, Nev. – A jury convicted a former felon Thursday of unlawful possession of one Heckler & Koch machine pistol and one Sig Sauer automatic rifle after multiple prior felony convictions in California, announced Acting U.S. Attorney Steve W. Myhre for the District of Nevada.

 

Following a three-day jury trial, Jack Benjamin Hessiani, 39, of Ventura, California, was found guilty of one count of felon in possession of a firearm. United States District Judge Larry R. Hicks presided over the trial and scheduled sentencing for March 22, 2018. At the time of sentencing, Hessiani faces the statutory maximum penalty of 10 years in prison and a $250,000 fine.

 

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 are prosecuting the case.

 

This case was brought as part of Project Safe Neighborhoods, a nationwide commitment by the Department of Justice to reduce gun and gang crime in America by networking local programs that target gun and gun crime and providing these programs with additional tools necessary to be successful. For more information about Project Safe Neighborhoods, visit www.justice.gov/usao-nv.

 

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LAS VEGAS, Nev. – A Texas man was convicted by a jury Tuesday of kidnapping and driving a woman against her will from Nevada to New Mexico, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.

 

Jack William Morgan, 32, of Texas, was found guilty of one count of conspiracy to commit kidnapping and one count of kidnapping. United States District Judge Kent J. Dawson presided over the trial and scheduled sentencing for March 20, 2018. Morgan faces the statutory maximum penalty of life in prison and a $250,000 fine.

 

According to the indictment, on Jan. 30, 2017, Morgan and a co-defendant conspired together to use force and violence to kidnap a woman in Las Vegas. They abducted the woman, chained her to the floor of a vehicle, and drove her from Nevada to New Mexico. Law enforcement rescued the victim and arrested Morgan and his co-defendant in New Mexico.

 

The case is being investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys Susan Cushman and Kathryn Newman are prosecuting the case.

 

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LAS VEGAS, Nev. – A registered child sex offender was sentenced today by U.S. District Judge Jennifer A. Dorsey to 180 months in prison for receipt of child pornography, which was also a violation of his supervised release conditions, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.

Clayton Call, 64, of Las Vegas, pleaded guilty on July 25, 2017, to one count of receipt of child pornography. Call was previously convicted of receipt of child pornography and was sentenced to 72 months in prison and a lifetime of supervised release following his release.

According to the plea agreement, as a condition of the terms of his supervised release, a U.S. Probation Officer conducted an inspection of Call’s residence. During the inspection, the officer seized Call’s laptop after discovering that it contained child pornography. During a forensic analysis of the laptop, law enforcement found nearly 140 images and videos of child sexual exploitation.

The case was investigated by the FBI and the U.S. Probation Office. Assistant U.S. Attorney Phillip N. Smith Jr. prosecuted the case.

To report child sexual exploitation, contact the National Center for Missing and Exploited Children at 1-800-THE-LOST (1-800-843-5678) or the FBI’s Las Vegas Office at (702) 385-1281.

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 Las Vegas man who pleaded guilty to robbing an armored vehicle and stealing 18 firearms, including a silencer, from a gun store, was sentenced today to 63 months in prison, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.

 

Anthony Jovan Greene, 31, was sentenced by U.S. District Judge James C. Mahan. He pleaded guilty to one count of interference with commerce by robbery and one count of theft from a Federal Firearms Licensee.

 

According to the plea agreement, Greene admitted that on Oct. 5, 2012, both he and at least one other co-conspirator used baseball bats to rob approximately $210,889 from a Garda Cash Logistics armored truck at the Las Vegas Outlet Mall in downtown Las Vegas. Greene further admitted that on Sept. 8, 2016, he stole a total of 18 handguns, rifles, and a silencer from 2nd Amendment Gun shop at 4570 N. Rancho Drive in Las Vegas.

 

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

 

This case was brought as part of Project Safe Neighborhoods, a nationwide commitment by the Department of Justice to reduce gun and gang crime in America by networking local programs that target gun and gun crime and providing these programs with additional tools necessary to be successful. For more information about Project Safe Neighborhoods, visit www.justice.gov/usao-nv.

 

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An Elko, Nevada, cardiologist was arrested yesterday on 39-charges of unlawful distribution of prescription opioids and Medicare and Medicaid fraud, announced Attorney General Jeff Sessions, Acting U.S. Attorney Steven W. Myhre for the District of Nevada, Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas office, Special Agent in Charge David J. Downing for the DEA’s Los Angeles field office, and Special Agent in Charge Christian Schrank for the Office of Inspector General of the U.S. Department of Health and Human Services Office Los Angeles Region.

 

Dr. Devendra I. Patel, aka Devendrakumar I. Patel, 58, of Elko, is charged with 36-counts of distribution of controlled substances such as oxycodone and hydrocodone, and three-counts of health care fraud. Patel is a cardiologist at his medical practice Northeastern Nevada Cardiology. The statutory maximum penalty for distribution of a controlled substance is 10 years in prison and the maximum penalty for health care fraud is 10 years in prison. He is scheduled to appear in federal court on Wednesday in Reno.

 

According to the 39-count indictment that was unsealed today, it is alleged that, from May 2014 to September 2017, Patel routinely prescribed fentanyl, hydrocodone, and oxycodone for his patients without a legitimate medical purpose and that he fraudulently billed Medicare and Medicaid for medical tests that he did not perform. The indictment alleges that Patel performed EKGs on his patients, so he could then order nuclear stress tests which he did not administer. He allegedly used a poorly calibrated machine and presented his patients with fraudulent X-Rays, in order to deceive his patients into thinking they had coronary issues that needed to be treated by him.

 

"Today we are facing the worst drug crisis in American history, with one American dying of a drug overdose every nine minutes," said Attorney General Sessions. "This summer, I ordered the creation of the Opioid Fraud and Abuse Detection Unit, which brings together data analysts and Assistant United States Attorneys from throughout the country to prosecute doctors engaged in opioid-related health care fraud. Additionally, I assigned a dozen of our top federal prosecutors to focus solely on this problem where the epidemic is at its worst. Prosecuting these cases help cut off the supply of drugs and stop addiction from spreading. These prosecutors are already delivering results, filing charges against doctors in Western Pennsylvania and Nevada. We will file many more charges in the months to come—because the Department of Justice will be relentless in hunting down drug dealers and turning the tide of this epidemic."

 

“Dr. Patel is the first person to be charged in Nevada since the formation of the Justice Department’s Opioid Fraud and Abuse Detection Unit,” said Acting U.S. Attorney Myhre.” The U.S. Attorney’s Office is committed to turning the tide of the prescription opioid epidemic that is plaguing our communities. We will continue to work with our law enforcement partners to investigate and prosecute individuals who contribute to this scourge.”

 

"Despite his physician's oath to do no harm, Dr. Patel recklessly prescribed opioids, for no legitimate medical purpose," stated FBI Special Agent in Charge Rouse.  "The FBI is confident that today's arrest will send a message to other physicians that are prescribing opioids outside the scope of legitimate medical care.  We are committed to using every tool in our arsenal to battle the opioid crisis in the state of Nevada." 

 

 

“Our Country is in the midst of a devastating opioid crisis and DEA is using every resource available to identify the traffickers and facilitators fueling addiction in our communities,” said DEA Special Agent in Charge Downing.  “Healthcare professionals who abuse the public’s trust and prescribe or dispense drugs purely for profit are drug dealers, and they’re going to be held accountable.” 

 

“To combat this opioid epidemic, OIG will never hesitate to investigate health professionals more concerned with profits than patients,” said HHS-OIG Special Agent in Charge Schrank. “Inappropriately diagnosing patients and then prescribing medications is only compounded by the greed of sticking taxpayers with the bill.”

 

The case is being investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, Office of Inspector General of the U.S. Department of Health and Human Services, U.S. Secret Service, Elko Combined Narcotics Unit, Nevada Department of Public Safety, and the Elko County Sheriff’s Office. Assistant U.S. Attorneys Kilby Macfadden and Sue Fahami are prosecuting the case.

 

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

 

Over 64,000 Americans died from drug overdoses in 2016. The majority of these deaths can be attributed to opioids, including illicit fentanyl. 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.

LAS VEGAS, Nev. – A former official for the U.S. Bureau of Reclamation and an accountant for a private accounting firm were indicted today for their roles in a bribery scheme involving a government contract, announced Acting U.S. Attorney Steve W. Myhre for the District of Nevada.

Fredrick J. Leavitt, 46, and Dustin M. Lewis, 43, both of Henderson, Nevada, were each indicted with one count of honest services fraud conspiracy. In addition, Leavitt was charged with one count of solicitation and receipt of a bribe by a public official and Lewis was charged with solicitation and bribery of a public official. Leavitt was employed by the U.S. Bureau of Reclamation as Director of the Financial Management Office for the Lower Colorado Region, which includes the Hoover Dam. Lewis was employed by LL Bradford & Company (LL Bradford), an accounting and tax firm. Leavitt and Lewis are scheduled to have their initial appearance before U.S. Magistrate Judge Nancy J. Koppe on Dec. 21, 2017.

According to the allegations contained in the indictment, from February 2015 to February 2016, Lewis bribed and provided kickbacks to Leavitt in exchange for Leavitt, in his official position, steering a Southern California Public Power Authority (SCPPA) audit contract to LL Bradford. It is alleged that Leavitt and Lewis colluded over the preparation of LL Bradford’s bid submission, and Leavitt provided Lewis with inside information about the selection process. Leavitt used his position on the audit selection committee to score LL Bradford’s bid proposal as a “1,” the top rating. The indictment further alleges that after LL Bradford was selected as the winning bidder for the contract, Lewis transferred more than $200,000 to Leavitt. In January 2016, Leavitt went to work as a tax partner with LL Bradford. Finally, the indictment alleges criminal forfeiture against Leavitt in the amount of $201,250, including a 2016 Mercedes Benz CLS 63 AMG S-Model sports car, and criminal forfeiture in the amount of $704,002 as to Lewis.

The case is a joint investigation by the Federal Bureau of Investigation, IRS-Criminal Investigation, and the U.S. Department of Interior-Office of Inspector General. Acting U.S. Attorney Steven W. Myhre and Assistant U.S. Attorney Patrick Burns are prosecuting the case.

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

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RENO, Nev. – An Elko, Nevada cardiologist was arrested today on 39-charges of unlawful distribution of prescription opioids and Medicare and Medicaid fraud, announced Attorney General Jeff Sessions, Acting U.S. Attorney Steven W. Myhre for the District of Nevada, Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas office, Special Agent in Charge David J. Downing for the DEA’s Los Angeles field office, and Special Agent in Charge Christian Schrank for the Office of Inspector General of the U.S. Department of Health and Human Services Office Los Angeles Region.

Dr. Devendra I. Patel, aka Devendrakumar I. Patel, 58, of Elko, is charged with 36-counts of distribution of controlled substances such as oxycodone and hydrocodone, and three-counts of health care fraud. Patel is a cardiologist at his medical practice Northeastern Nevada Cardiology. The statutory maximum penalty for distribution of a controlled substance is 10 years in prison and the maximum penalty for health care fraud is 10 years in prison. He is scheduled to appear in federal court on Wednesday in Reno.

According to the 39-count indictment that was unsealed today, it is alleged that, from May 2014 to September 2017, Patel routinely prescribed fentanyl, hydrocodone, and oxycodone for his patients without a legitimate medical purpose and that he fraudulently billed Medicare and Medicaid for medical tests that he did not perform. The indictment alleges that Patel performed EKGs on his patients, so he could then order nuclear stress tests which he did not administer. He allegedly used a poorly calibrated machine and presented his patients with fraudulent X-Rays, in order to deceive his patients into thinking they had coronary issues that needed to be treated by him.

"Today we are facing the worst drug crisis in American history, with one American dying of a drug overdose every nine minutes," AG Sessions said. "This summer, I ordered the creation of the Opioid Fraud and Abuse Detection Unit, which brings together data analysts and Assistant United States Attorneys from throughout the country to prosecute doctors engaged in opioid-related health care fraud. Additionally, I assigned a dozen of our top federal prosecutors to focus solely on this problem where the epidemic is at its worst. Prosecuting these cases help cut off the supply of drugs and stop addiction from spreading. These prosecutors are already delivering results, filing charges against doctors in Western Pennsylvania and Nevada. We will file many more charges in the months to come—because the Department of Justice will be relentless in hunting down drug dealers and turning the tide of this epidemic."

“Dr. Patel is the first person to be charged in Nevada since the formation of the Justice Department’s Opioid Fraud and Abuse Detection Unit,” said Acting U.S. Attorney Myhre.” The U.S. Attorney’s Office is committed to turning the tide of the prescription opioid epidemic that is plaguing our communities. We will continue to work with our law enforcement partners to investigate and prosecute individuals who contribute to this scourge.”

"Despite his physician's oath to do no harm, Dr. Patel recklessly prescribed opioids, for no legitimate medical purpose," stated FBI SAC Rouse. "The FBI is confident that today's arrest will send a message to other physicians that are prescribing opioids outside the scope of legitimate medical care.  We are committed to using every tool in our arsenal to battle the opioid crisis in the state of Nevada." 

 

“Our Country is in the midst of a devastating opioid crisis and DEA is using every resource available to identify the traffickers and facilitators fueling addiction in our communities,” said DEA SAC Downing. “Healthcare professionals who abuse the public’s trust and prescribe or dispense drugs purely for profit are drug dealers, and they’re going to be held accountable.” 

“To combat this opioid epidemic, OIG will never hesitate to investigate health professionals more concerned with profits than patients,” said HHS-OIG SAC Schrank. “Inappropriately diagnosing patients and then prescribing medications is only compounded by the greed of sticking taxpayers with the bill.”

The case is being investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, Office of Inspector General of the U.S. Department of Health and Human Services, U.S. Secret Service, Elko Combined Narcotics Unit, Nevada Department of Public Safety, and the Elko County Sheriff’s Office. Assistant U.S. Attorneys Kilby Macfadden and Sue Fahami are prosecuting the case.

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

Over 64,000 Americans died from drug overdoses in 2016. The majority of these deaths can be attributed to opioids, including illicit fentanyl. 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 former family and marriage counselor was convicted by a jury Wednesday for soliciting a minor for sex, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.

Ian Alexander Pincombe, 49, of Las Vegas, was found guilty of one count of coercion and enticement, one count of possession of child pornography, and one count of receipt of child pornography. United States District Judge Jennifer A. Dorsey presided over the jury trial. Sentencing is set for March 5, 2018. Pincombe faces a minimum of 10 years and a maximum of life in prison, and a $250,000 fine.

According to the indictment and criminal complaint, on April 30, 2014, during an undercover operation, a law enforcement detective located an advertisement on Craigslist.com in which an individual, later identified as Pincombe, was seeking females for sex. The advertisement included a nude photograph. The undercover detective, posing 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, one of which included a sexually explicit photograph of himself. On May 2, 2014, law enforcement arrested Pincombe at a shopping center parking lot in Henderson where he had agreed to meet the girl for a sexual encounter. Pincombe was later charged with coercion and enticement, and the child pornography charges.

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 are 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 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 Las Vegas couple pleaded guilty to two violent armed carjackings, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.

Former felon Uriah Zamir Crain, 28, of Las Vegas, pleaded guilty to carjacking, carjacking resulting in serious bodily injury, discharging a firearm during and in relation to a crime of violence, and felon in possession of a firearm. Nicole Elizabeth Nowak, 23, also of Las Vegas, pleaded guilty to carjacking, carjacking resulting in serious bodily injury, and brandishing a firearm during and in relation to a crime of violence. United States District Judge Richard F. Boulware II accepted their guilty pleas. Sentencing is scheduled for March 8, 2018.

According to the criminal complaint and their individual plea agreements, on June 22, 2017, after striking up a conversation with the victim at Hayat Liquor, Nowak asked the victim to drive her home and invited the victim into the house. Later that night at the house, Crain and another man hit the victim in the head with handguns, which resulted in injury, and stole the victim’s money, wallet, and Ford F-150 truck. Then, on June 25, Crain and Nowak committed a second carjacking. Crain shot the victim in the leg, which resulted in serious bodily injury, and Crain and Nowak then stole the victim’s Lincoln Navigator truck and other property belonging to the victim. At the time of his arrest, Crain had a Glock 9mm handgun and a 30-round Glock magazine in his possession.

At the time of sentencing, the statutory maximum penalty for carjacking is 15 years in prison and a $250,000 fine; the maximum penalty for carjacking resulting in serious bodily injury is 25 years in prison and a $250,000 fine; the minimum penalty for discharging a firearm during and in relation to a crime of violence is 10 years in prison with a maximum penalty of up to life in prison; the minimum penalty for brandishing a firearm during and in relation to a crime of violence is seven years in prison with a maximum penalty of up to life in prison; and the maximum penalty for felon in possession of a firearm is 10 years in prison and a $250,000 fine.

The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Phillip N. Smith Jr. and Alexandra Michael are prosecuting the case.

This case was brought as part of Project Safe Neighborhoods, a nationwide commitment by the Department of Justice to reduce gun and gang crime in America by networking local programs that target gun and gun crime and providing these programs with additional tools necessary to be successful. For more information about Project Safe Neighborhoods, visit www.justice.gov/usao-nv.

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LAS VEGAS, Nev. – A Las Vegas man was sentenced today to 67 months in prison and three years supervised release in connection with two armed robberies committed one week apart, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.

Walid H. Abdulla, 65, pleaded guilty to one count of bank robbery and one count of interference with commerce by robbery. United States District Judge Howard D. McKibben presided over the sentencing hearing.

According to the plea agreement, Abdulla admitted that he committed two armed robberies in the Las Vegas Valley. On Jan. 30, 2017, he approached a clerk at a CVS Pharmacy at 8116 S. Las Vegas Blvd. with his gaming ticket from the pharmacy’s slot machine area and demanded the money from the cash register. He showed the clerk what appeared to be a semi-automatic handgun in his waistband and told the clerk to put the money inside a bag, stating, “you won’t get hurt if you just hurry.” Abdulla fled with $1,210 in cash. Abdulla further admitted that on February 6, he entered a Nevada State Bank at 3780 E. Flamingo and presented a robbery note demanding money from the vault. He showed the bank teller what appeared to be a semi-automatic handgun and fled with $5,000 in cash. Victims later identified Abdulla as the robber, he was observed by video surveillance at each robbery, and a forensic examination identified his fingerprint on the slot machine he used at the CVS.

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

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LAS VEGAS, Nev. – A former felon who was convicted for federal firearms violations was sentenced today to 120 months in prison, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.

Tajh Dion Weatherspoon, 28, was found guilty in May of one count of felon in possession of a firearm and he pleaded guilty to a second count of felon in possession of a firearm. Weatherspoon had two prior felony convictions, including attempted burglary and felon in possession of a firearm. In addition to the term of imprisonment, United States District Judge Howard D. McKibben imposed a three year term of supervised release.

According to the superseding indictment, Weatherspoon was in possession of a Glock 19 handgun on June 15, 2016, and a Glock 21 handgun on Dec. 22, 2016. The Court severed the two counts and ordered that the trials proceed one after the other, beginning May 15, 2017. After the jury convicted Weatherspoon of possessing the Glock 19 handgun, he declined to proceed to trial on the count charging possession of the Glock 21 handgun and instead pleaded guilty without the benefit of a plea agreement.

The case was investigated by the FBI, ATF, the Las Vegas Metropolitan Police Department, and the North Las Vegas Police Department. The case was prosecuted by Assistant U.S. Attorneys Tony Lopez and Patrick Burns.

This case was brought as part of Project Safe Neighborhoods, a nationwide commitment by the Department of Justice to reduce gun and gang crime in America by networking local programs that target gun and gun crime and providing these programs with additional tools necessary to be successful. For more information about Project Safe Neighborhoods, visit www.justice.gov/usao-nv.

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LAS VEGAS, Nev. – A Henderson, Nevada man who pleaded guilty to possession of approximately 900 photos and videos of child pornography was sentenced Thursday by U.S. District Judge James C. Mahan to 97 months in prison and lifetime supervised release, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.

 

Brian Christopher Fisher, 43, pleaded guilty to one count of possession of child pornography. According to the plea agreement, during an online peer-to-peer child pornography investigation, law enforcement downloaded child pornography files from computers belonging to Fisher. Law enforcement officers then obtained and executed a search warrant for Fisher’s residence. Fisher admitted that he viewed, downloaded, and possessed approximately 732 photos and 169 videos of children performing sex acts with men and women, animals, and other juveniles. 

 

The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI). Assistant U.S. Attorney 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. – An Orlando, Florida resident pleaded guilty today for his role in a telemarketing scheme to defraud more than 1,000 victims, many of them elderly, of more than $3.3 million, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.

 

Daniel Martin Boyar, aka “Wolf,” 62, of Orlando, Fla., pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud; two counts of mail fraud; and two counts of wire fraud. United States District Judge James C. Mahan accepted his guilty plea. Sentencing is scheduled for May 22, 2018. The statutory maximum penalty is 20 years in prison and a $250,000 fine. In addition, Boyar faces restitution in an amount not to exceed $3.5 million to the victims.

 

According to admissions made in connection with his guilty plea, from October 2010 to April 2012, Boyar, the leader of the scheme, together with his co-conspirators devised and participated in a telemarketing scheme to cheat timeshare owners out of money by promising to sell their timeshares in return for the owners paying in advance a portion of the closing costs associated with the purported sales. There were no buyers. The timeshare sales were never arranged and never occurred. This is a criminal scheme commonly known as the “buyer’s pitch,” an advance-fee scam. The scam operated under numerous business names including Holiday Advertising, Professional Concepts LLC, TeleTeton Corporation, Redline Funding LLC, Great West Funding Incorporated, Equity Financial Services LLC, and First Capital Financial Services Corporation, moving their business front from state to state and changing the name approximately every 90 days. The conspirators also created websites with false and misleading information to include customer testimonials, company officers, and press releases. Boyar and his co-conspirators used wire communications and mail carrier services to carry out the scheme.

 

The case is being investigated by the FBI and the U.S. Postal Inspection Service. Assistant U.S. Attorney Dan Cowhig is prosecuting the case.

 

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

 

For information about the Department of Justice’s elder justice initiative, visit http://www.usdoj.gov/elderjustice. The website is a “one-stop shop” for prosecutors, researchers, practitioners, victims and families looking for resources to identify, report and prosecute elder abuse and financial exploitation, including common fraud schemes perpetrated against seniors.

 

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LAS VEGAS, Nev. - A Russian cyber-criminal was sentenced today to 14 years in prison for his role in a $50 million cyberfraud ring and for defrauding banks of $9 million through a hacking scheme.

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Steven W. Myhre of the District of Nevada, U.S. Attorney Byung J. Pak of the Northern District of Georgia, Assistant Special Agent in Charge Michael Harris of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE HSI), Special Agent in Charge Brian Spellacy of the U.S. Secret Service in Las Vegas, and FBI Special Agent in Charge David J. LeValley in Atlanta made the announcement.

Roman Valeryevich Seleznev, aka Track2, Bulba and Ncux, 33, was sentenced by U.S. District Judge Steve C. Jones of the Northern District of Georgia to serve 168 months in prison for one count of participation in a racketeering enterprise pursuant to an indictment returned in the District of Nevada, and to 168 months in prison for one count of conspiracy to commit bank fraud pursuant to an indictment returned in the Northern District of Georgia, with the sentences to run concurrent to one another. In both cases, Seleznev was ordered three years of supervised release to run concurrently. He was also ordered restitution in the amount of $50,893,166.35 in the Nevada case and $2,178,349 in the Georgia case. Seleznev pleaded guilty to the charges on Sept. 7. 

In connection with his guilty plea in the Nevada case, Seleznev admitted that he became associated with the Carder.su organization, an identity theft and credit card fraud ring, in January 2009.  According to Seleznev’s admissions in his plea agreement, Carder.su was an Internet-based, international criminal enterprise whose members trafficked in compromised credit card account data and counterfeit identifications and committed identity theft, bank fraud, and computer crimes.  Seleznev admitted that the group tried to protect the anonymity and the security of the enterprise from both rival organizations and law enforcement. For example, members communicated through various secure and encrypted forums, such as chatrooms, private messaging systems, encrypted email, proxies and encrypted virtual private networks. Gaining membership in the group required the recommendation of two current members in good standing.

Seleznev further admitted that he sold compromised credit card account data and other personal identifying information to fellow Carder.su members. The defendant sold members such a large volume of product that he created an automated website, which he advertised on the Carder.su organization’s websites. His automated website allowed members to log into and purchase stolen credit card account data. The defendant’s website had a simple interface that allowed members to search for the particular type of credit card information they wanted to buy, add the number of accounts they wished to purchase to their “shopping cart” and upon check out, download the purchased credit card information. Payment of funds was automatically deducted from an established account funded through L.R., an online digital currency payment system.

Seleznev further admitted that he sold each account number for approximately $20. The Carder.su organization’s criminal activities resulted in loss to its victims of at least $50,893,166.35.

In connection with his guilty plea in the Northern District of Georgia case, Seleznev admitted that he acted as a “casher” who worked with hackers to coordinate a scheme to defraud an Atlanta-based company that processed credit and debit card transactions on behalf of financial institutions. Seleznev admitted that pursuant to the scheme, in November 2008, hackers infiltrated the company’s computer systems and accessed 45.5 million debit card numbers, certain of which they used to fraudulently withdraw over $9.4 million from 2,100 ATMs in 280 cities around the world in less than 12 hours.

Fifty-five individuals were charged in four separate indictments in Operation Open Market, which targeted the Carder.su organization. To date, 33 individuals have been convicted and the rest are either fugitives or are pending trial.

The cases were investigated by HSI, the U.S. Secret Service, and FBI. The Nevada case was prosecuted by Trial Attorney Catherine K. Dick of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Kimberly M. Frayn of the District of Nevada. The Northern District of Georgia case was prosecuted by Assistant U.S. Attorney Kamal Ghali of the Northern District of Georgia.

Seleznev is also a defendant in a wire fraud and computer hacking case brought by the Department of Justice in the U.S. District Court for the Western District of Washington. On Aug. 25, 2016, a federal jury convicted Seleznev of 38 counts related to his role in a scheme to hack into point-of-sale computers to steal and sell credit card numbers to the criminal underworld. On April 21, Seleznev was sentenced to 27 years in prison for those crimes, which will run concurrent to his sentences today.    

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RENO, Nev. – A former employee at a Lake Tahoe children’s ski school was sentenced today to 15 years in prison for child sexual exploitation, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.

Stephan L. DeGraffenreid, 27, of Gardnerville, Nev., pleaded guilty to one count of sexual exploitation of a minor and two counts of attempted sexual exploitation of a minor. United States District Judge Howard D. McKibben also sentenced DeGraffenreid to lifetime supervised release.

According to the criminal complaint and plea agreement, law enforcement discovered child pornography on an Apple iPod Touch that was found at the Children’s Ski School at Heavenly Ski Resort. During the investigation, it was discovered the iPod belonged to DeGraffenreid who was a former employee at the ski school. During the execution of a search warrant at DeGraffenreid’s residence, officers with the Northern Nevada Online Child Exploitation Task Force located a thumb drive that contained explicit images of children in a childcare facility restroom in Gardnerville. DeGraffenreid admitted to taking the sexually explicit photos of the children found on the thumb drive.

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 and the El Dorado County Sheriff’s Office also assisted with the investigation. Assistant U.S. Attorney Shannon M. Bryant prosecuted the case.

To report child sexual exploitation, contact the National Center for Missing and Exploited Children at 1-800-THE-LOST (1-800-843-5678) or the FBI’s Las Vegas Office at (702) 385-1281.

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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RENO, Nev. – A former felon who illegally possessed a firearm and rammed into three police vehicles to avoid apprehension was sentenced today to 108 months in prison, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.

 

Kyle Howe, 31, of Reno, pleaded guilty to one count of felon in possession of a firearm. In addition to the prison term, U.S. District Judge Larry R. Hicks sentenced him to three years of supervised release.

 

According to the plea agreement, Howe admitted that, on Nov. 29, 2016, in an attempt to flee apprehension on an outstanding warrant, he rammed into a police vehicle then sped away. Then the next day, Howe rammed two police vehicles as Regional Crime Suppression Unit detectives attempted to arrest him. Law enforcement were able to remove him from his vehicle and arrest him. At the time of his arrest, a Smith & Wesson 9mm semiautomatic pistol, a switchblade, and approximately 4.5 grams of methamphetamine were found in his possession.

 

The case was investigated by the Regional Crime Suppression Unit and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Megan Rachow prosecuted the case.

 

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RENO, Nev. – Dr. Robert Gene Rand, a Reno physician who operated Rand Family Care, was sentenced today to 10 years in prison for involuntary manslaughter of a patient and unlawful distribution of oxycodone, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.

Rand, 54, was sentenced by U.S. District Judge Miranda M. Du. In addition to the prison term, Rand was ordered to pay $11,960 in restitution and a $25,000 fine. He was also sentenced to three years of supervised release.

According to the plea agreement, Rand admitted that he acted with gross negligence by prescribing an excessive amount of oxycodone to a patient in reckless regard for the patient’s life. Despite warnings by another doctor and the patient’s mother, the patient’s history and the patient being hospitalized, Rand continued to prescribe oxycodone to the patient which lead to the patient’s overdose and death in October 2015. Rand also admitted that, from March 2011 to April 2016, he prescribed a total of 23,645 oxycodone 30 mg pills without a legitimate medical purpose to a second patient. In addition to oxycodone, Rand prescribed the second patient Percocet, hydrocodone, fentanyl, as well as other substances, such as carisoprodol and alprazolam. The second patient did not undergo any toxicology tests and Rand allowed another person to pick-up the oxycodone prescriptions for the patient. Rand also warned the patient at one time that his prescriptions would no longer be filled by the pharmacies.

Rand and eight others, including Richard Winston West II, aka “Richie West,” the former manager of the Jones-West Ford dealership, were indicted on May 11, 2016, with federal prescription drug distribution charges. Co-defendants West, 40; Omar Ahsan Ahmad, 32; Joshua Ross Green, 34; Clint Mitchell Bloodworth, 41; Kathleen Griffin, 43; Alan Russel Martinez, 61; and Braden Kyle Riley, 40, all of Reno; and Ryan Daniel Smith, 40, of Carson City, all have pleaded guilty for their involvement in the prescription drug conspiracy and are awaiting sentencing.

This case was investigated by the DEA, FBI, IRS Criminal Investigation, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Enforcement, Reno Police Department, Washoe County Sheriff’s Office, Carson City Sheriff’s Office, Susanville, California Police Department, Nevada Department of Corrections, Nevada Gaming Control, Nevada Department of Public Safety, Lyon County Sheriff’s Office, and the State of Nevada Division of Welfare, Office of Investigations and Recovery. The case was prosecuted by Assistant U.S. Attorney James E. Keller.

Nearly two million Americans abused or were dependent on prescription opioids in 2014, according to the Centers for Disease Control and Prevention (CDC). Overdoses involving opioids killed more than 28,000 people in 2014, and over one-half of those deaths were from prescription opioids. In 2016, more than 64,000 Americans died from drug overdoses including illicit drugs and prescription opioids - nearly double in a decade. For information on opioid overdose and how someone can manage pain without prescription drugs, go to http://www.cdc.gov/drugoverdose/opioids/index.html.

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

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LAS VEGAS, Nev. – An Arizona man pleaded guilty today in U.S. District Court in Las Vegas to conspiracy to impede or injure a federal officer during a federal impoundment operation of Cliven Bundy’s trespassing cattle in the Bunkerville, Nevada area in 2014.

 

Acting U.S. Attorney Steven W. Myhre for the District of Nevada, Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division, and Director William Woody for the Bureau of Land Management’s Office of Law Enforcement made the announcement.

 

Micah L. McGuire, 32, of Chandler, Ariz., pleaded guilty before U.S. District Chief Judge Gloria M. Navarro. Sentencing is scheduled for Feb. 16, 2018. McGuire faces the statutory maximum penalty of six years in prison and a $250,000 fine.

 

According to the plea agreement, McGuire knew that Cliven Bundy and his sons, Ryan, Ammon, Dave, and Mel, Ryan Payne, and others associated with them, planned to thwart, impede and interfere with the impoundment operations. He knowingly entered into a conspiracy with his co-defendants and others to impede federal law enforcement officers through a show of force and intimidation in order to prevent the officers from performing their duties in relation to the impoundment and to induce them to leave the area. McGuire furthered the conspiracy by serving on a personal security detail for Cliven Bundy; and entering the Toquop wash, a closed area where law enforcement officers were conducting their duties, with a firearm on April 12, 2014.

 

The case was investigated by the FBI and BLM. The case was prosecuted by Acting U.S. Attorney Steven W. Myhre, Assistant U.S. Attorneys Nadia J. Ahmed and Daniel R. Schiess, and Special Assistant U.S. Attorney Erin M. Creegan.

 

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RENO, Nev. – A former Business Manager for the Reno Valley Retirement Center was sentenced today to 33 months in prison for stealing from an elderly resident’s bank account, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.

 

Angela Diane Fischer, 52, of Fernley, Nevada, pleaded guilty to one count of mail fraud. In addition to the prison term, U.S. District Judge Miranda M. Du sentenced Fischer to three years supervised release and ordered her to pay restitution to the victim in the amount of $190,231.26.

 

Fischer admitted that from Dec. 24, 2014 to June 3, 2016, she fraudulently obtained $190,231.26 from an elderly man’s bank account for her personal benefit. She changed the password for the man’s online banking account, so she could access and set-up automatic payments from his bank account to pay his rent at the Reno Valley Retirement Center. As part of the scheme, she fraudulently sent approximately 37 checks to herself and transferred money from the man’s savings account to checking account in order to conceal the money that she was taking without his permission. Furthermore, Fischer continued to withdraw money from the man’s account after she was terminated from the Reno Valley Retirement Center in June 2015.

 

The case was investigated by the Reno Police Department with assistance from the FBI. Assistant U.S. Attorney Megan Rachow prosecuted the case.

 

For more information about the Department of Justice’s efforts to prevent and combat elder abuse, visit the Elder Justice Initiative website at https://www.justice.gov/elderjustice. If you or someone you know is a victim of elder abuse, call the Victim Connect hotline at 1-855-4VICTIM (1-855-484-2846).

 

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LAS VEGAS, Nev. – A convicted sex offender who failed to register as a sex offender when he moved to the Las Vegas area was sentenced to 60 months in prison today, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.

 

Charles Elmer Roush, 79, pleaded guilty to one count of violation of the Sex Offender Registration and Notification Act (SORNA). In addition to the prison term, U.S. District Judge Larry R. Hicks sentenced Roush to lifetime of supervised release.

 

According to the plea agreement, Roush admitted that he failed to register with the Las Vegas Metropolitan Police Department or any local jurisdiction when he relocated to the Las Vegas area. In 1985, Roush was convicted in El Paso County, Colo., of inducing a minor to engage in sexually explicit conduct and mailing visual depiction of minors engaged in sexually explicit conduct. As a result of the conviction, Roush was required under SORNA to register and to update his registration in each jurisdiction he resides and is employed.

 

The case was investigated by the Nevada Parole and Probation and U.S. Marshals Service. Assistant U.S. Attorney Elham Roohani prosecuted the case.

 

To report a non-compliant or unregistered sex offender, contact the U.S. Marshals Service National Sex Offender Targeting Center at Iod.nsotc@usdoj.gov.

 

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RENO, Nev. – Three individuals were sentenced Monday for their roles in a multi-state conspiracy to distribute methamphetamine, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.

Devon Kealiiaukai Kauwe, 35, of Waianae, Hawaii; Joseph Novit Fua, aka “Joey Boy,” 29, and Rhonda Pualani Wong-Fernandez, 30, both of Honolulu, were sentenced to 130 months, 135 months, and 41 months in prison, respectively, by U.S. District Judge Larry R. Hicks. Kauwe and Fua each pleaded guilty to one count of conspiracy to possess with intent to distribute and one count of distribution of at least 50 grams of methamphetamine and Wong-Fernandez pleaded guilty to conspiracy to distribute and possess with intent to distribute methamphetamine.

According to their individual plea agreements, from April 2014 to May 2014, Kauwe, Fua, and Wong-Fernandez conspired to possess and distribute at least 50 grams of methamphetamine. To further the conspiracy, Kauwe agreed to sell seven pounds of methamphetamine for $102,000 to a buyer who was an undercover agent. Kauwe contacted Fua to help him obtain the drugs. Fua and co-conspirators arranged for and acquired a total of 17 pounds, seven pounds were for Kauwe and 10 pounds were for Fua, of methamphetamine. Fua and Wong-Fernandez obtained the 17 pounds of methamphetamine from co-conspirators in the Los Angeles area. Kauwe and co-conspirator Jeromy Perez received seven pounds of methamphetamine from Fua and Wong-Fernandez. Kauwe and Perez drove with the drugs from California to Reno. Fua and Wong-Fernandez drove with ten pounds to Denver where Fua used a co-conspirator to get the concealed methamphetamine around airport security. In Reno, Perez delivered the methamphetamine to co-defendant Shane Kelly McPherson, who then delivered the drugs to the undercover agent in a casino parking lot. On May 5, 2014, during the drug transaction, law enforcement arrested McPherson, Perez, and Kauwe.

The investigation was conducted by the DEA and Assistant U.S. Attorney James E. Keller prosecuted the case.

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The former owner of a Las Vegas strip club was sentenced today to 24 months in prison for evading payment of more than $1.7 million in employment taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Steven W. Myhre for the District of Nevada.

 

Frederick John Rizzolo, of Las Vegas, the former owner of The Crazy Horse Too, pleaded guilty in June, to attempt to evade and defeat the payment of employment taxes that he owed for 2000 through 2002.

 

According to documents filed with the court, Rizzolo paid The Crazy Horse Too’s floormen, bouncers, bartenders and shift managers in cash, but failed to provide accurate records of these payments to the Club’s bookkeepers. As a result, Rizzolo caused false employment tax returns to be filed with the Internal Revenue Service (IRS), which underreported wages paid and thus the taxes due. In 2006, Rizzolo admitted this conduct and pleaded guilty to conspiring to defraud the United States. Following his plea, however, Rizzolo took affirmative steps to conceal his assets and income to thwart the IRS from collecting the delinquent taxes that he owed. For example, Rizzolo directed $900,000 that he received from the sale of The Crazy Horse Club, in Philadelphia, to an offshore bank account in the Cook Islands. He also withdrew $50,000 from a bank account, writing a check to a third party, who in turn provided the money back to Rizzolo, thereby avoiding an IRS levy and seizure of the funds. Additionally, Rizzolo falsely stated to the IRS that he had no income or assets and no ability to pay the taxes owed.

 

In addition to the term of imprisonment imposed, U.S. District Chief Judge Gloria M. Navarro ordered Rizzolo to serve six months of supervised release and to pay restitution in the amount of $2,637,290 to the IRS.

 

Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Myhre thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Phillip N. Smith Jr. and Trial Attorney Rebecca J. Sable of the Tax Division, who prosecuted the case.

 

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

LAS VEGAS, NEV. – The former owner of a Las Vegas strip club was sentenced today to 24 months in prison for evading payment of more than $1.7 million in employment taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Steven W. Myhre for the District of Nevada.

 

Frederick John Rizzolo, of Las Vegas, the former owner of The Crazy Horse Too, pleaded guilty in June, to attempt to evade and defeat the payment of employment taxes that he owed for 2000 through 2002.

 

According to documents filed with the court, Rizzolo paid The Crazy Horse Too’s floormen, bouncers, bartenders and shift managers in cash, but failed to provide accurate records of these payments to the Club’s bookkeepers. As a result, Rizzolo caused false employment tax returns to be filed with the Internal Revenue Service (IRS), which underreported wages paid and thus the taxes due. In 2006, Rizzolo admitted this conduct and pleaded guilty to conspiring to defraud the United States. Following his plea, however, Rizzolo took affirmative steps to conceal his assets and income to thwart the IRS from collecting the delinquent taxes that he owed. For example, Rizzolo directed $900,000 that he received from the sale of The Crazy Horse Club, in Philadelphia, to an offshore bank account in the Cook Islands. He also withdrew $50,000 from a bank account, writing a check to a third party, who in turn provided the money back to Rizzolo, thereby avoiding an IRS levy and seizure of the funds. Additionally, Rizzolo falsely stated to the IRS that he had no income or assets and no ability to pay the taxes owed.

 

In addition to the term of imprisonment imposed, U.S. District Chief Judge Gloria M. Navarro ordered Rizzolo to serve six months of supervised release and to pay restitution in the amount of $2,637,290 to the IRS.

 

Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Myhre thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Phillip N. Smith Jr. and Trial Attorney Rebecca J. Sable of the Tax Division, 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. – A Las Vegas man was sentenced Wednesday to 78 months in prison for maintaining two Las Vegas houses that he converted into illegal indoor marijuana grow operations, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.

 

Jian Guo Han, 66, was convicted by a jury in July of one count of conspiracy to manufacture marijuana and one count of manufacturing marijuana. United States District Judge James C. Mahan presided over the jury trial and sentencing hearing.

 

According to documents filed with the court, during an investigation into a concerned citizen’s report, law enforcement observed unlawful modifications to a house that were indicative of an indoor marijuana grow operation. During the execution of a search warrant, police discovered over 500 marijuana plants and evidence which led law enforcement to a second house. This house was also converted into an indoor marijuana grow operation and had three rooms dedicated to growing marijuana. A total of 342 marijuana plants and 210 marijuana clones, or cuttings from a mature cannabis plant, were found at the second house.

 

The investigation was conducted by the Las Vegas Metropolitan Police Department.

 

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LAS VEGAS, Nev. – Two men from Idaho pleaded guilty today in federal court to obstructing a federal court order during the impoundment of Cliven Bundy’s cattle in Bunkerville, Nev., in 2014.

 

Acting U.S. Attorney Steven W. Myhre for the District of Nevada, Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division, and Acting Director Michael D. Nedd of the Bureau of Land Management made the announcement.

 

Eric J. Parker, 34, of Hailey, Idaho, and O. Scott Drexler, 47, of Challis, Idaho, each pleaded guilty to one count of obstruction of court order. United States District Chief Judge Gloria M. Navarro accepted the individual pleas and scheduled both defendants to be sentenced on Feb. 2, 2018. They each face the maximum statutory penalty of one year in prison and a $100,000 fine.

 

According to their individual pleas, beginning on or around March 28, 2014, federal law enforcement officers from the BLM and the National Park Service were engaged in the official duties of executing federal court orders authorizing them to remove and impound Cliven Bundy’s cattle trespassing on federal public lands in and around Bunkerville. On April 12, 2014, Parker and Drexler attended a rally held by Cliven Bundy and his family and heard Bundy direct those present to go to the BLM impoundment site and to get his cattle. Parker and Drexler then went to the BLM impoundment site along with several hundred other people who took positions in a wash leading into the impoundment site and on the I-15 overlooking the BLM impoundment site. While on the overpass, Parker and Drexler, both armed with rifles, heard the officers’ announcements, but did not comply with the orders and remained on the northbound I-15 bridge overlooking the impoundment site. The defendants failed to comply with the officers’ orders to leave the area. They presented a show of force in order to interfere with and impede the officers in the performance of their duties pursuant to federal court orders.

 

The investigation is being handled by the FBI and BLM. The case is being prosecuted by Acting U.S. Attorney Steven W. Myhre, Assistant U.S. Attorneys Nadia J. Ahmed and Daniel R. Schiess, and Special Assistant U.S. Attorney Erin M. Creegan.

 

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RENO, Nev. – A Rosemeade, California man was sentenced Tuesday to 135 months in prison for his involvement in a drug conspiracy to distribute methamphetamine in four states, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.

Martin Cisneros, aka “Moose,” 46, pleaded guilty to one count of conspiracy to possess with intent to distribute and one count to distribute at least 50 grams of actual methamphetamine. United States District Judge Larry R. Hicks presided over the sentencing hearing.

According to evidence presented in connection to his plea and sentencing, Cisneros supplied at least 12 pounds and up to 42 pounds of methamphetamine as part of a drug conspiracy in central California, Colorado, Hawaii, and Nevada. On May 2, 2014, in Whittier, Calif., Cisneros supplied methamphetamine to his co-conspirators, seven pounds of which went to Reno, Nev., where it was seized in its sale to an undercover agent for $102,000. 

The investigation was conducted by the DEA and Assistant U.S. Attorney James E. Keller prosecuted the case.

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LAS VEGAS, Nev. – The U.S. Attorney’s Office for the District of Nevada and the FBI’s Las Vegas Office remind the public to be aware of and report suspected fraudulent activity related to disaster assistance relief in the aftermath of a series of natural disasters in the United States and the recent tragedy in Las Vegas. Unfortunately, criminals may use tragic events to exploit individuals and communities for their own gain. Solicitations can originate from social media, e-mails, websites, door-to-door collections, mailings, telephone calls, and other similar methods.

The Department of Justice established the National Center for Disaster Fraud to investigate, prosecute, and deter fraud in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region. Its mission has expanded to include suspected fraud from any natural or manmade disaster. More than 30 federal, state, and local agencies participate in the National Center for Disaster Fraud, which allows the center to act as a centralized clearinghouse of information related to disaster relief fraud.

Members of the public who suspect fraud involving disaster relief efforts, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by a live operator 24 hours a day, 7 days a week. You can also fax information to the Center at (225) 334-4707, or email it to disaster@leo.gov. Learn more about the Department of Justice’s National Center for Disaster Fraud at http://www.justice.gov/disaster-fraud.

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LAS VEGAS, Nev. – A defendant charged in the case involving the armed standoff in Bunkerville, Nev. pleaded guilty today in federal court, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada, Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division, and Acting Director Michael D. Nedd for the U.S. Bureau of Land Management (BLM).

Peter T. Santilli Jr, 52, of Cincinnati, Ohio, pleaded guilty to conspiracy to impede or injure a federal officer. United States District Chief Judge Gloria M. Navarro accepted the guilty plea. Sentencing is set for Jan. 11, 2018. At the time of sentencing, Santilli faces up to six years in prison and a $250,000 fine.

Beginning on or around March 28, 2014, federal law enforcement officers from the BLM and the National Park Service were engaged in the official duties of executing federal court orders authorizing them to remove and impound Cliven Bundy’s cattle trespassing on federal public lands in and around Bunkerville.

 

According to admissions made in connection to his plea, Santilli admitted that he knew Cliven Bundy and his sons, Ammon, Dave, Mel, and Ryan, and others associated with them, planned to thwart, impede, and interfere with impoundment operations. He admitted that on April 9, 2014, he used his vehicle to block a convoy of BLM law enforcement officers and civilian employees as they were performing their official duties related to the impoundment. As a result, others were allowed to surround the convoy and threaten vehicle occupants by force, violence, and fear, inducing the officers to leave the place where their duties were required to be performed.

 

The investigation is being handled by the FBI and BLM. The case is being prosecuted by Acting U.S. Attorney Steven W. Myhre, Assistant U.S. Attorneys Nadia J. Ahmed and Daniel R. Schiess, and Special Assistant U.S. Attorney Erin M. Creegan.

 

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LAS VEGAS, Nev. – The former Director of Community Development for the National Community Stabilization Trust (NCST), a non-profit Nevada corporation created in 2008 in response to the national mortgage-housing foreclosure crisis, and four of six co-defendants made their initial appearances in federal court Wednesday on charges related to a bribery scheme involving NCST homes, announced Acting U.S. Attorney Steven W. Myhre of the District of Nevada and Special Agent in Charge James Todak of the U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG).

The 14-count indictment, filed under seal on Sept. 26, was unsealed Wednesday in federal court. The indictment charges Sergio Barajas, 50, of Chino, Calif.; Alan Cassell, 47, of Chula Vista, Calif.; Elena Millner, 40, of Boerne, Texas; Benjamin Stuelke, 35, of Anaheim, Calif.; Michelle Acosta, aka Michelle Mullens, 33, of Anaheim Hills, Calif.; Art Acosta, 55, of Anaheim Hills, Calif.; and Ernesto Garcia, 45, of Upland, Calif., with conspiracy to commit bribery concerning programs receiving federal funds and bribery concerning programs receiving federal funds. Stuelke and Garcia are also charged with bank fraud. Defendants Barajas, Cassell, Michelle and Art Acosta, and Garcia made their initial appearances in court before U.S. District Magistrate Judge Cam Ferenbach.

According to the indictment, from October 2010 to September 2015, Barajas, in his role as Director of Community Development, was involved in the approval of non-profits to participate in the NCST First Look Program and in the determination of which non-profit was ultimately awarded NCST homes, as well as provided oversight of the resale of NCST homes to ensure compliance with NCST and Neighborhood Stabilization Program guidelines. The NCST received more than $10,000 of federal grants during each 12 month fiscal year that Barajas served as the Director of Community Development.

The indictment alleges that Cassell, Millner, Stuelke, Michelle and Art Acosta, and Garcia bribed Barajas with monetary payment in exchange for his influence at the NCST in the First Look approval process, access to NCST homes, and oversight over the resale of NCST homes. As alleged in the indictment, Cassell, d/b/a Heartland Coalition and Ignition Ventures, paid Barajas approximately $185,025 in exchange for receiving approximately 626 NCST foreclosures and made approximately $2.8 million from the resale of those homes. Millner and Art Acosta, d/b/a Positive Housing Equations and Alliance for Revitalized Communities, allegedly paid Barajas approximately $149,828 in exchange for receiving approximately 167 NCST homes and made approximately $1.3 million from the resale of those homes. Stuelke, the C.F.O. of HomeStrong USA, wrote checks in the total amount of $34,800 to Barajas. Stuelke also wrote three checks totaling $193,763.13 to Garcia, d/b/a Fine Line Investments, as the purported realtor of three NCST home sale transactions. Garcia then wrote checks to Art and Michelle Acosta, d/b/a 33 LLC, who ultimately wrote checks to Barajas all in an effort to conceal payment to Barajas for three NCST properties awarded to HomeStrong USA.

The indictment further alleges that Stuelke and Garcia provided false information to lenders who funded the purchase of NCST homes resold by HomeStrong USA.

The maximum statutory penalty is 10 years in prison and a $250,000 fine for conspiracy to commit bribery concerning programs receiving Federal funds and 30 years in prison and a $1,000,000 fine for bank fraud. In addition, each defendant faces a criminal forfeiture money judgment: Barajas in the amount of $422,969; Cassell in the amount of $1.2 million; Millner in the amount of $3 million; Stuelke in the amount of $6 million; Michelle Acosta in the amount of $250,000; Art Acosta in the amount of $1.15 million; and Garcia in the amount of $193,000.

The investigation is being conducted by HUD-OIG. The case is being prosecuted by Assistant U.S. Attorneys Lisa Cartier-Giroux and Patrick Burns.

The charges and allegations contained in an indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

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LAS VEGAS, Nev. – A Las Vegas man who stole from 42 victims in connection with an investment fraud scheme was sentenced Tuesday to 46 months in prison, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.

 

Sean Christopher Sladek, 40, pleaded guilty in May to one count of wire fraud. In addition to imprisonment, U.S. District Judge Jennifer A. Dorsey ordered restitution in the amount of $1,422,923 and a forfeiture money judgment of $2,638,143.26.

 

According to the indictment, Sladek solicited investment funds from persons, including some he met through social media sites, such as online dating platforms Tinder and Bumble. According to admissions made in the plea agreement, Sladek falsely represented himself as a successful securities trader and investor. In May 2013, he caused a victim in California to transfer $100,000 to him. He told the victim that the monies would generate positive returns through trading, securities transactions, and investment in securities. Sladek did not generate positive returns and had no intent to do so. Instead, he used the stolen money for personal expenses to include gambling, dining, and entertainment.

 

The investigation was conducted by the FBI and prosecuted by Assistant U.S. Attorney Jared Grimmer.

 

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LAS VEGAS, Nev. - Former Las Vegas Metropolitan Police Department (LVMPD) officer Richard Scavone pleaded guilty Thursday in federal court to assaulting a handcuffed woman in his custody.

 

Acting U.S. Attorney Steven W. Myhre of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Office made the announcement.
 

According to admissions made in the plea agreement, on January 6, 2015, Scavone, 50, was working as an LVMPD patrol officer, and was accompanied in his patrol car by an LVMPD jail corrections officer on a ride-along. At approximately 5:00 a.m., Scavone and the ride-along encountered A.O., who was talking on the phone and holding a cup of coffee. When Scavone told A.O. to “move along,” A.O responded that she was waiting on someone and threw her cup of coffee to the ground. Scavone, who was wearing a body-worn camera that recorded video and audio, exited his patrol car and approached A.O. with a Taser in hand.
 

Scavone 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.
 

Scavone faces a maximum sentence of up to one year in prison and a fine of up to $100,000.  Sentencing will be held on January 11, 2018.
 

"The U.S. Attorney’s Office is committed to protecting the civil rights of all Nevada citizens, regardless of their backgrounds,” said Acting U.S. Attorney Myhre. “The defendant took an oath to serve and protect with honor and integrity. Misconduct such as this will not be tolerated and those who break the law will be held accountable for their actions.”

 

“As Mr. Scavone realized today, no one is above the law,” said Special Agent in Charge Rouse.  “Law enforcement takes an oath to protect and serve our communities.  We are, and rightfully should be, held to a higher standard.  Every day, the vast majority of police officers in our community uphold that standard under difficult, dangerous conditions.  However, when law enforcement breaks that vow, they will be held accountable.”

 

After conducting its own investigation into Scavone’s conduct, LVMPD terminated Scavone’s employment.

 

This case was investigated by the Las Vegas Division of the Federal Bureau of Investigation, with the cooperation of the Las Vegas Metropolitan Police Department.  It was prosecuted by Assistant United States 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.

LAS VEGAS, Nev. – A medical assistant for a pain management specialist was sentenced today to 20 years in prison for distribution of large quantities of highly addictive prescription opioids, including oxycodone, and other controlled substances without a medical purpose, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.

After a 10-week jury trial that ended in March, David A. Litwin, 58, was found guilty of conspiracy to distribute controlled substances (oxycodone) and distribution of controlled substances. Co-defendant Dr. Henri Wetselaar, 93, was also found guilty and was sentenced to 10 years in prison. United States District Judge Kent J. Dawson presided over both sentencing hearings.

According to the indictment, Wetselaar performed house calls and maintained a medical practice on the east side of Las Vegas. He prescribed large amounts of prescription drugs, including oxycodone, hydrocodone, Xanax and Soma, to persons for no legitimate medical purpose. Litwin and Wetselaar conspired with each other and local drug dealers to distribute the prescription drugs prescribed by Wetselaar in and around Las Vegas.

The case was investigated by the DEA, FBI, IRS-Criminal Investigations, the Nevada Department of Public Safety, the Las Vegas Metropolitan Police Department, the U.S. Department of Labor-OIG, and the U.S. Department of Human and Health Services-OIG. The case was prosecuted by Assistant U.S. Attorneys Cristina D. Silva and Andrew Duncan.

The overdose rates for synthetic opioids and pain relievers have continued to rise over the past several years. According to the Centers for Disease Control and Prevention, there are 144 drug overdose deaths every day and 63% of those deaths are pharmaceutical opioids or heroin related. Approximately 75% of new heroin users report having abused prescription opioids before using heroin. Heroin-related overdose deaths have more than quadrupled since 2010.

For information about the dangers of prescription opioids and other drugs, parents, educators, and caregivers may visit the DEA’s resource websites www.getsmartaboutdrugs.gov or www.justthinktwice.gov. If you have a tip or information about illegal sales or distribution of prescription opioids, including oxycodone, hydrocodone, etc., by doctors and pharmacies call the DEA at 1-877-RX-Abuse (1-877-792-2873).

 

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LAS VEGAS, Nev. – A Las Vegas man was sentenced today to 24 months in prison for his participation in a $3.2 million advance fee scheme to fraudulently obtain money from victims seeking business loans, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.

Ronald Gene Morgan, 62, pleaded guilty in February to one count of wire fraud. In addition to the term of imprisonment, U.S. District Judge James C. Mahan sentenced Morgan to three years of supervised release. Morgan agreed to pay $3,000,382 in restitution to victims of the fraud scheme.

According to the plea agreement, from March 2009 to April 2011, Morgan and others operated Argent Asset Management and Argent Securities, an Illinois-incorporated company and a Florida-incorporated company, respectively. Morgan admitted that he falsely promised victims in Las Vegas and elsewhere that he would provide business loans by using Argent assets to acquire bank-issued bonds at a discount and re-sell the bonds at face value to an investor, thereby producing hundreds of millions of dollars.

As part of the scheme, Morgan lulled the victims by creating and sending false communications and documents depicting escrow account balances containing millions of dollars held on behalf of the clients. He knew that no such funds were held in escrow. He required victims to pay substantial fees in advance of obtaining the loans and told the victims that their funds would be held in escrow, would be refunded if the loans were not obtained, and would be used to obtain the loans. He knew that Argent Securities had no assets. Morgan used the fees paid by victims for his own personal use, to recruit other victims, and to repay portions of other victims fees in order to conceal the fraud scheme.

The case was investigated by the FBI; and prosecuted by Assistant U.S. Attorneys Kathryn Newman and Nicholas D. Dickinson.

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RENO, Nev. – A former felon who was found guilty by a jury in June was sentenced today to 10 years in prison for illegal possession of a firearm, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada. United States District Judge Larry R. Hicks presided over the sentencing hearing.

After a three-day jury trial, Ricky Carter Jr., 39, of Reno, was found guilty of one count of felon in possession of a firearm. In November 2016, he illegally possessed a 9mm semiautomatic pistol after prior felony convictions in Washoe County.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Regional Gang Unit. The case was prosecuted by Assistant U.S. Attorney Megan Rachow.

This case was brought as part of Project Safe Neighborhoods, a nationwide commitment by the Department of Justice to reduce gun and gang crime in America by networking local programs that target gun and gun crime and providing these programs with additional tools necessary to be successful. For more information about Project Safe Neighborhoods, visit www.justice.gov/usao-nv.

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RENO, Nev. – A Reno, Nevada attorney was convicted today following a three-week jury trial, of filing false tax returns and obstructing the internal revenue laws, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Steven W. Myhre for the District of Nevada.

According to the indictment and the evidence presented at trial, from approximately 2009 through 2010, Delmar L. Hardy, 63, concealed his business partner’s $700,000 investment in XYZ Real Estate. Hardy concealed his partner’s stake in XYZ and obstructed the internal revenue laws by falsely claiming all of XYZ Real Estate’s profits and losses on his own 2009 and 2010 individual tax returns. Hardy also falsified his 2008 through 2010 returns by not reporting more than $400,000 in cash income his law practice received.

U.S. District Court Judge Miranda M. Du scheduled sentencing for Jan. 12, 2018. Hardy faces a statutory maximum sentence of three years in prison for each count of filing a false return and obstructing the internal revenue laws.  He also faces a period of supervised release, restitution, and monetary penalties.

Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Myhre thanked special agents of IRS Criminal Investigation and the Drug Enforcement Administration, who conducted the investigation, and Assistant U.S. Attorney James E. Keller and Trial Attorney Lee F. Langston 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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A Reno, Nevada attorney was convicted today following a three-week jury trial, of filing false tax returns and obstructing the internal revenue laws, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Steven Myhre for the District of Nevada.

 

According to the indictment and the evidence presented at trial, from approximately 2009 through 2010, Delmar Hardy, 63, concealed his business partner’s $700,000 investment in XYZ Real Estate.  Hardy concealed his partner’s stake in XYZ and obstructed the internal revenue laws by falsely claiming all of XYZ Real Estate’s profits and losses on his own 2009 and 2010 individual tax returns.  Hardy also falsified his 2008 through 2010 returns by not reporting more than $400,000 in cash income his law practice received.

 

U.S. District Court Judge Miranda M. Du scheduled sentencing for Jan. 12, 2018.  Hardy faces a statutory maximum sentence of three years in prison for each count of filing a false return and obstructing the internal revenue laws.  He also faces a period of supervised release, restitution and monetary penalties.

 

Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Myhre thanked special agents of IRS Criminal Investigation and the Drug Enforcement Administration, who conducted the investigation, and Assistant U.S. Attorney James E. Keller and Trial Attorney Lee F. Langston 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.

RENO, Nev. – A Reno resident made his initial appearance in federal court Thursday for allegedly engaging in a $3.5 million fraud scheme involving over 8,000 fraudulent PayPal credit accounts, bank accounts, and prepaid credit and debit card accounts he created with stolen identities.

Acting U.S. Attorney Steven W. Myhre for the District of Nevada, Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Office, Special Agent in Charge Brian Spellacy of the U.S. Secret Service Las Vegas Field Office, Special Agent in Charge Tara Sullivan of the IRS Criminal Investigation, Inspector in Charge Melisa Llosa of the U.S. Postal Inspection Service, and Chief Jason Soto of the Reno Police Department made the announcement.

Kenneth Gilbert Gibson, 46, was indicted on 10 counts of wire fraud; three counts of mail fraud; 10 counts of bank fraud; six counts of access device fraud; and six counts of aggravated identity theft.

According to allegations made in the indictment, between 2012 and 2017, Gibson allegedly obtained the identities of multiple victims and used those victim’s identities to open unauthorized online accounts, credit accounts, bank accounts, and prepaid debit and credit card accounts to obtain money and property. In total, he allegedly opened over 8,000 fraudulent and unauthorized accounts with PayPal, an online payment company, using the stolen identities. He then allegedly used 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.

If convicted, the defendant faces a statutory maximum penalty of 20 years in prison and a $250,000 fine for the wire fraud and mail fraud counts; a statutory maximum penalty of 30 years in prison and a $1,000,000 fine for the bank fraud counts; a statutory maximum penalty of 10 years in prison and a $250,000 fine for the access device fraud counts; and a statutory maximum penalty of two years in prison for the aggravated identity theft counts. 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, IRS, United States Postal Inspection Service, and the Reno Police Department. The case is being prosecuted by Assistant U.S. Attorney Carla B. Higginbotham.

 

If you believe you are a victim of the alleged fraud, phone the FBI at 1-866-4FBIOVA (1-866-432-4682), email RenoIDTheft@fbi.gov, or visit https://forms.fbi.gov/RenoIDTheft.

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.

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

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LAS VEGAS, Nev. – A Las Vegas man was convicted by a jury Thursday for receipt of child pornography found on his laptop computer, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada, Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Office, and Sheriff Joseph Lombardo of the Las Vegas Metropolitan Police Department.

 

According to the indictment, in May 2013, Frankie Allen Peraza, 39, received videos that depicted minors engaged in sexually explicit conduct. United States District Judge Andrew P. Gordon presided over the four-day jury trial. Sentencing is set for December 21, 2017. At the time of sentencing, Peraza faces the maximum statutory penalty of 20 years in prison and a $250,000 fine. In addition, he faces a term of supervised release and would 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 Las Vegas Metropolitan Police Department. The case was prosecuted by Assistant U.S. Attorneys Elham Roohani and Alexandra Michael.

 

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. – Edward N. Levine, 64, of Novato, Calif., was convicted Thursday for conspiracy to violate the Lacey and Endangered Species Acts and to a violation of the Lacey Act by knowingly selling black rhinoceros horns to an undercover agent from the United States Fish and Wildlife Service (USFWS), announced the Justice Department. Sentencing has been set for December 15. Levine’s co-defendant, Lumsden Quan, was sentenced in December 2015.

Levine was arrested in March 2014 for his role in a conspiracy to knowingly sell black rhinoceros horns across state lines. Levine worked with Quan to transport two horns from California to Nevada, where the men sold them to an undercover agent from Colorado for a sum of $55,000.

This case is part of “Operation Crash,” a nationwide crackdown by federal, state and local law enforcement agencies against those who engage in illegal trafficking 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 August 2017, Operation Crash has resulted in the prosecution and sentencing of more than 30 subjects and recovery of approximately $5.6 million through forfeiture and restitution.

Since 1976, trade in rhinoceros horns has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 180 countries around the world to protect fish, wildlife, and plants that are or may become imperiled due to the demands of international markets. All species of rhinoceros are protected under the federal Endangered Species Act.

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 is represented by Trial Attorney Ryan Connors, Assistant U.S. Attorney Kathryn Newman, Paralegal Christopher Kopf, and Paralegal Amanda Backer.

To report a wildlife crime such as the illegal trafficking and trade of species, call 1-844-FWS-TIPS (1-844-397-8477) or visit https://www.fws.gov.

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LAS VEGAS, Nev. – Three men and one woman, who were arrested on Sept. 8, in connection with a series of violent armored vehicle robberies that occurred in Las Vegas and Henderson, made their initial appearances in federal court Monday, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada, Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Office, Sheriff Joseph Lombardo for the Las Vegas Metropolitan Police Department, and Acting Chief Todd Peters for the Henderson Police Department.

Trayvale Harrison, 30, of Barstow, Calif.; Phillip Shiel, 22, of Los Angeles, Calif.; Randel Burge, 35, and Ianthe Rowland, 34, both of Las Vegas, are each charged with conspiracy to interfere with commerce by robbery, interference with commerce by robbery, and brandishing a firearm in furtherance of a crime of violence. In addition, Harrison, Burge, and Rowland are charged with four more counts of interference with commerce by robbery. The defendants made their initial appearances before U.S. District Magistrate Judge Carl W. Hoffman. Harrison, Shiel, and Burge were detained and Rowland was released with conditions.

 

According to a criminal complaint, the defendants allegedly conspired to rob armored vehicles in Las Vegas and Henderson. The first robbery took place on June 5, at the Green Valley Grocery at 5324 South Fort Apache Road. An armed man told a Loomis armored vehicle guard to drop the money bag as the guard exited the store. The guard complied and the robber fled with the money bag. One month later, on July 5, two men wearing masks and armed with firearms robbed a Garda armored vehicle in front of a Walmart at 490 East Silverado Ranch Boulevard. The robbers told the guard “Drop the bags, drop the bags!” to which the guard complied. They fled with the money bag. Then, on Aug. 14, a Loomis armored vehicle was robbed in front of a Wells Fargo Bank at 101 North Pecos Road in Henderson. The robbers had firearms and fled with the money bag. The fourth armed robbery occurred on Aug. 25, in front of a Wells Fargo Bank at 445 Windmill Road. They robbed a Loomis armored vehicle and fled with the money bag. On Sept. 8, the defendants were set to rob another armored vehicle at the Chase Bank located at 2165 East Windmill Lane. The defendants were apprehended and taken into custody by law enforcement before the robbery took place.

 

If convicted, the maximum statutory penalty is up to life in prison for brandishing a firearm during and in relation to a crime of violence.

The investigation leading to the arrests and charges was conducted jointly by the FBI’s Violent Crimes Task Force, the Las Vegas Metropolitan Police Department’s Robbery and Major Violators sections, and the Henderson Police Department. The FBI’s Violent Crimes Task Force consists of FBI Special Agents and Detectives from the Las Vegas Metropolitan Police Department, Henderson Police Department, and the North Las Vegas Police Department. The case is being prosecuted by Assistant U.S. Attorneys Cristina D. Silva and Phillip N. Smith Jr.

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

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RENO, Nev. – A Reno resident was sentenced Monday to 60 months in prison for receipt of approximately 3,500 images and videos depicting child pornography, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.

Scott Russell, 36, who pleaded guilty in June 2017 to one count of receipt of child pornography, was sentenced by U.S. District Judge Larry R. Hicks. In addition to the prison term, Russell was sentenced to 30 years of supervised release and is required to register as a sex offender under the Sex Offender Registration Notification Act.

According to his plea agreement, between April 27, 2015 and September 9, 2015, while conducting an online undercover operation, law enforcement identified a computer possessing and sharing child pornography using the peer-to-peer file sharing program BitTorrent. During the execution of a search warrant, the defendant admitted to using file sharing software to search for and download child pornography. During a forensic examination of the defendant’s laptop computer and other electronic devices, law enforcement found approximately 3,370 images and 76 videos depicting child pornography including children as young as infants. In addition, over 8,000 images of child erotica was found on portable flash drives owned by the defendant.

 

The case was investigated by the Northern Nevada Internet Crimes Against Children Task Force, which includes the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE HSI), the Nevada Attorney General’s Office, and the Washoe County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Shannon M. Bryant.

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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A Russian cyber-criminal who sold stolen credit card data and other personal information through the identity theft and credit card fraud ring known as “Carder.su” pleaded guilty yesterday in two separate criminal cases to one count of participation in a racketeering enterprise and one count of conspiracy to commit bank fraud.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Steven W. Myhre of the District of Nevada, U.S. Attorney John A. Horn of the Northern District of Georgia, Assistant Special Agent in Charge Michael Harris of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE HSI) and Special Agent in Charge Brian Spellacy of the U.S. Secret Service in Las Vegas made the announcement.

Roman Valeryevich Seleznev, aka Track2, aka Bulba, aka Ncux, 33, entered guilty pleas in both criminal cases at a hearing before U.S. District Judge Steve C. Jones of the Northern District of Georgia.  Seleznev pleaded guilty to one count of participation in a racketeering enterprise pursuant to an indictment returned in the District of Nevada, and one count of conspiracy to commit bank fraud pursuant to an indictment returned in the Northern District of Georgia.  He will be sentenced on December 11. 

In connection with his guilty plea in the Nevada case, Seleznev admitted that he became associated with the Carder.su organization in January 2009. According to Seleznev’s admissions in his plea agreement, Carder.su was an Internet-based, international criminal enterprise whose members trafficked in compromised credit card account data and counterfeit identifications and committed identity theft, bank fraud and computer crimes. Seleznev admitted that the group tried to protect the anonymity and the security of the enterprise from both rival organizations and law enforcement. For example, members communicated through various secure and encrypted forums, such as chatrooms, private messaging systems, encrypted email, proxies and encrypted virtual private networks. Gaining membership in the group required the recommendation of two current members in good standing.

Seleznev further admitted that he sold compromised credit card account data and other personal identifying information to fellow Carder.su members. The defendant sold members such a large volume of product that he created an automated website, which he advertised on the Carder.su organization’s websites. His automated website allowed members to log into and purchase stolen credit card account data. The defendant’s website had a simple interface that allowed members to search for the particular type of credit card information they wanted to buy, add the number of accounts they wished to purchase to their “shopping cart” and upon check out, download the purchased credit card information. Payment of funds was automatically deducted from an established account funded through L.R., an on-line digital currency payment system. Seleznev admitted that he sold each account number for approximately $20.  The Carder.su organization’s criminal activities resulted in loss to its victims of at least $50,983,166.35.

In connection with his guilty plea in the Northern District of Georgia case, Seleznev admitted that he acted as a “casher” who worked with hackers to coordinate a scheme to defraud an Atlanta-based company that processed credit and debit card transactions on behalf of financial institutions.  Seleznev admitted that pursuant to the scheme, in November 2008, hackers infiltrated the company’s computer systems and stole 45.5 million debit card numbers, certain of which they used to fraudulently withdraw over $9.4 million from 2,100 ATMs in 280 cities around the world in less than 12 hours.

Fifty-five individuals were charged in four separate indictments in Operation Open Market, which targeted the Carder.su organization. To date, 33individuals have been convicted and the rest are either fugitives or are pending trial.

The cases were investigated by HSI and the U.S. Secret Service.  The Nevada case is being prosecuted by Trial Attorney Catherine Dick of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Kimberly M. Frayn of the District of Nevada.  The Northern District of Georgia case is being prosecuted by Assistant U.S. Attorney Kamal Ghali of the Northern District of Georgia.

Seleznev is also a defendant in a wire fraud and computer hacking case brought by the Department of Justice in the U.S. District Court for the Western District of Washington.  On Aug. 25, 2016, a federal jury convicted Seleznev of 38 counts related to his role in a scheme to hack into point-of-sale computers to steal and sell credit card numbers to the criminal underworld.  On April 21, Seleznev was sentenced to 27 years in prison for those crimes.    

LAS VEGAS, Nev. - A Russian cyber-criminal who sold stolen credit card data and other personal information through the identity theft and credit card fraud ring known as “Carder.su” pleaded guilty yesterday in two separate criminal cases to one count of participation in a racketeering enterprise and one count of conspiracy to commit bank fraud.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Steven W. Myhre of the District of Nevada, U.S. Attorney John A. Horn of the Northern District of Georgia, Assistant Special Agent in Charge Michael Harris of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE HSI), and Special Agent in Charge Brian Spellacy of the U.S. Secret Service in Las Vegas made the announcement.

Roman Valeryevich Seleznev, aka Track2, aka Bulba, aka Ncux, 33, entered guilty pleas in both criminal cases at a hearing before U.S. District Judge Steve C. Jones of the Northern District of Georgia. Seleznev pleaded guilty to one count of participation in a racketeering enterprise pursuant to an indictment returned in the District of Nevada, and one count of conspiracy to commit bank fraud pursuant to an indictment returned in the Northern District of Georgia. He will be sentenced on December 11. 

In connection with his guilty plea in the Nevada case, Seleznev admitted that he became associated with the Carder.su organization in January 2009. According to Seleznev’s admissions in his plea agreement, Carder.su was an Internet-based, international criminal enterprise whose members trafficked in compromised credit card account data and counterfeit identifications and committed identity theft, bank fraud and computer crimes. Seleznev admitted that the group tried to protect the anonymity and the security of the enterprise from both rival organizations and law enforcement. For example, members communicated through various secure and encrypted forums, such as chatrooms, private messaging systems, encrypted email, proxies and encrypted virtual private networks. Gaining membership in the group required the recommendation of two current members in good standing.

Seleznev further admitted that he sold compromised credit card account data and other personal identifying information to fellow Carder.su members. The defendant sold members such a large volume of product that he created an automated website, which he advertised on the Carder.su organization’s websites. His automated website allowed members to log into and purchase stolen credit card account data. The defendant’s website had a simple interface that allowed members to search for the particular type of credit card information they wanted to buy, add the number of accounts they wished to purchase to their “shopping cart” and upon check out, download the purchased credit card information. Payment of funds was automatically deducted from an established account funded through L.R., an on-line digital currency payment system. Seleznev admitted that he sold each account number for approximately $20. The Carder.su organization’s criminal activities resulted in loss to its victims of at least $50,983,166.35.

In connection with his guilty plea in the Northern District of Georgia case, Seleznev admitted that he acted as a “casher” who worked with hackers to coordinate a scheme to defraud an Atlanta-based company that processed credit and debit card transactions on behalf of financial institutions. Seleznev admitted that pursuant to the scheme, in November 2008, hackers infiltrated the company’s computer systems and stole 45.5 million debit card numbers, certain of which they used to fraudulently withdraw over $9.4 million from 2,100 ATMs in 280 cities around the world in less than 12 hours.

Fifty-five individuals were charged in four separate indictments in Operation Open Market, which targeted the Carder.su organization. To date, 33individuals have been convicted and the rest are either fugitives or are pending trial.

The cases were investigated by HSI and the U.S. Secret Service. The Nevada case is being prosecuted by Trial Attorney Catherine Dick of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Kimberly M. Frayn of the District of Nevada. The Northern District of Georgia case is being prosecuted by Assistant U.S. Attorney Kamal Ghali of the Northern District of Georgia.

Seleznev is also a defendant in a wire fraud and computer hacking case brought by the Department of Justice in the U.S. District Court for the Western District of Washington. On Aug. 25, 2016, a federal jury convicted Seleznev of 38 counts related to his role in a scheme to hack into point-of-sale computers to steal and sell credit card numbers to the criminal underworld. On April 21, Seleznev was sentenced to 27 years in prison for those crimes.

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LAS VEGAS, Nev. – After a three-day trial, a jury convicted a man who wore a “Jason” style hockey mask during a robbery of a Las Vegas pawn shop, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.

 

Jessie Mendoza, 38, of Henderson, Nev., was found guilty of one count of conspiracy to interfere with commerce by robbery and one count of interference with commerce by robbery. United States District Judge Larry R. Hicks presided over the jury trial and scheduled sentencing for Dec. 7, 2017.

 

According to the criminal complaint and indictment, on Sept. 12, 2016, Mendoza and his co-conspirators conspired with each other to rob an EZ Pawn store at 3010 South Valley View Blvd. in Las Vegas. During the robbery, Mendoza acted as a lookout at the front entrance to the store while his co-conspirators stole rings, jewelry, watches, gems, and other property from display cases. They stole approximately $123,000 worth of high value jewelry items and watches.

 

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

 

The case was investigated by the FBI’s Safe Streets Task Force, the Las Vegas Metropolitan Police Department, and the Henderson Police Department. Assistant U.S. Attorneys Cristina D. Silva and Kilby Macfadden prosecuted the case.

 

This case was brought as part of Project Safe Neighborhoods, a nationwide commitment by the Department of Justice to reduce gun and gang crime in America by networking local programs that target gun and gun crime and providing these programs with additional tools necessary to be successful. For more information about Project Safe Neighborhoods, visit www.justice.gov/usao-nv.

 

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LAS VEGAS, Nev. – Three Las Vegas men were sentenced today to a total of 40 years in prison for their involvement in a string of convenience store armed robberies during the summer of 2014, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.

Kevin Hall, 29, Justin Loper, 29, and Keith Williams, 26, were sentenced to 154 months, 184 months, and 147 months, respectively. Each defendant pleaded guilty to one count of conspiracy to interfere with commerce by robbery; three counts of interference with commerce by robbery; and one count of brandishing a firearm during and in relation to a crime of violence. United States District Chief Judge Gloria M. Navarro presided over the sentencing hearings.

According to their individual plea agreements, on June 15, 2014, Hall, Loper, and Williams robbed a 7-Eleven at 30 West Wyoming Ave. in Las Vegas. Loper pointed a handgun at the store clerk and demanded money from the register and the safe. The defendants stole approximately $446.34 and the clerk’s cellular telephone. Then on July 13, 2014, the defendants robbed a Circle K at 5400 Vegas Drive. Loper pointed a handgun at the clerk and told the clerk to open the register. The defendants stole approximately $750. Later that morning, the defendants entered a Mini Mart at 3342 South Sandhill Road and ordered everyone in the store to get on the ground. Loper and Hall jumped the counter while Williams stayed in the front of the store watching the customers. The defendants stole a total of approximately $6,000 from the register and the safe.

After the Mini Mart armed robbery, the defendants fled in a vehicle. After a brief pursuit by law enforcement the defendants’ vehicle crashed. The defendants fled on foot and were arrested near the crash site. Approximately $6,000 in cash was found near one of the defendants. During a subsequent search of the car, investigators found a loaded .40 caliber pistol, Circle K plastic bags filled with cigarettes, three pairs of black cotton gloves, a black ski-mask, and baseball hats, all consistent with items taken in the robberies and clothing items used in the robberies. At the time of their arrests all defendants were wearing the same clothing worn by the robbers as observed in video surveillance.

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

 

This case was brought as part of Project Safe Neighborhoods, a nationwide commitment by the Department of Justice to reduce gun and gang crime in America by networking local programs that target gun and gun crime and providing these programs with additional tools necessary to be successful. For more information about Project Safe Neighborhoods, visit www.justice.gov/usao-nv.

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RENO, Nev. – A Gardnerville, Nevada man pleaded guilty today to child sexual exploitation, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.

Stephan L. DeGraffenreid, 26, pleaded guilty to one count of sexual exploitation of a minor and two counts of attempted sexual exploitation of a minor. United States District Judge Howard D. McKibben accepted the guilty plea and scheduled sentencing for Nov. 29, 2017. DeGraffenreid faces a mandatory minimum penalty of 15 years in prison for each charge.

According to the criminal complaint and plea agreement, law enforcement discovered child pornography on an Apple iPod Touch that was found at the Children’s Ski School at Heavenly Ski Resort. During the investigation, it was discovered the iPod belonged to DeGraffenreid who was formerly an employee at the ski school. On Jan. 26, 2017, during the execution of a search warrant at DeGraffenreid’s residence, officers with the Northern Nevada Online Child Exploitation Task Force located a thumb drive that contained explicit images of children in a childcare facility restroom in Gardnerville. DeGraffenreid admitted to taking the sexually explicit photos of the children found on the thumb drive.

The case is being 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 and the El Dorado County Sheriff’s Office also assisted with the investigation. The case is being prosecuted by Assistant U.S. Attorney Shannon M. Bryant.

To report child sexual exploitation, contact the FBI’s Las Vegas Office at (702) 385-1281 or the National Center for Missing and Exploited Children at 1-800-THE-LOST (1-800-843-5678).

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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