District of Nevada

A Las Vegas, Nevada return preparer was indicted today for filing false tax returns, 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, from 2010 through 2011, Ofelia Ronquillo prepared income tax returns through a business known as A.R. Financial LLC and later AJRC Tax Services, in Las Vegas. The indictment alleges that Ronquillo included false items on her clients’ tax returns to include bogus charitable contributions, education expenses and unreimbursed employee expenses – such as mileage, meals and other transportation expenses, as well as claimed inflated refunds to which they were not entitled.

 

An indictment merely alleges that crimes have been committed. Defendants are presumed innocent until proven guilty beyond a reasonable doubt.

 

If convicted, Ronquillo faces a statutory maximum sentence of three years in prison for each count, as well as a period of supervised release, restitution and monetary penalties.

 

Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Myhre commended special agents of Internal Revenue Service–Criminal Investigation, who conducted the investigation, and Trial Attorneys Thomas W. Flynn and Eric C. Schmale of the Tax Division, who are prosecuting the case.

 

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

 

LAS VEGAS, Nev. – A Las Vegas, Nevada return preparer was indicted today for preparing false tax returns, 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, from 2010 through 2011, Ofelia Ronquillo prepared income tax returns through a business known as A.R. Financial LLC and later AJRC Tax Services, in Las Vegas. The indictment alleges that Ronquillo included false items on her clients’ tax returns to include charitable contributions, education expenses and unreimbursed employee expenses – such as mileage, meals and other transportation expenses, and claimed inflated refunds to which they were not entitled.

 

An indictment merely alleges that crimes have been committed. Defendants are presumed innocent until proven guilty beyond a reasonable doubt.

 

If convicted, Ronquillo faces a statutory maximum sentence of three years in prison for each count, as well as a period of supervised release, restitution, and monetary penalties.

 

Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Myhre commended special agents of Internal Revenue Service–Criminal Investigation, who conducted the investigation, and Trial Attorneys Thomas W. Flynn and Eric C. Schmale of the Tax Division, who are prosecuting the case.

 

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

 

# # #

RENO, Nev. – An employee at a children’s ski school at a ski resort in South Lake Tahoe, Calif., was charged today with child exploitation and possession of child pornography, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.

 

Stephan L. DeGraffenreid, 26, of Gardnerville, Nev., was charged with one count of sexual exploitation of a child, two counts of attempted sexual exploitation of a child, and one count of possession of child pornography. If convicted, the mandatory statutory minimum penalty is 15 years in prison for each of the sexual exploitation and attempted sexual exploitation charges.

 

According to a criminal complaint, 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, law enforcement learned the iPod belonged to DeGraffenreid who was an employee at the Children’s Ski School. During the execution of a search warrant at his residence, officers located a thumb drive that contained explicit images of children in a Gardnerville, Nev., day care facility restroom. DeGraffenreid admitted to downloading and possessing the child pornography.

 

The case is being investigated by the FBI, the Washoe County Sheriff’s Office, and the El Dorado County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Shannon M. Bryant.

 

An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.

 

###

Las Vegas, Nev. – One of the members involved in a penny stock fraud conspiracy that defrauded investors of over $35 million was sentenced today to 72 months in prison, announced Acting U.S. Attorney Steven W. Myhre.

 

Jeffrey Turino, 60, of Pahrump, was charged in an indictment with conspiracy to commit securities fraud and securities fraud in connection with a penny stock fraud scheme.

 

On Aug. 22, 2016, Turino pleaded guilty to conspiracy to commit securities fraud. According to the plea agreement, beginning in about 1997 continuing until about March 2010, Turino conspired with others to fraudulently issue, offer, and sell stock issued by corporate shells which they controlled, including World Wide Cannery and Distribution, Global Diamond Exchange, Inc., Equitable Mining Corporation, ODMA Oil and Gas, Inc. and Grand Entertainment and Music, Inc. Additionally, Turino and conspirators engaged in deceptive practices and issued misleading press releases to promote these companies and to give the impression that they were actively engaged in the importation and sale of products, when in truth, the companies were hollow shells that did not engage in regular or substantial business activities, did not produce any goods, services, or profits, and did not commercially import products as promoted in their news releases. According to the plea agreement, Turino and his conspirators fraudulently induced investors to purchase billions of unregistered shares of stock in the companies, which the conspirators had deceptively issued without requisite restrictions and disclosures. Although these penny stocks typically traded for less than one cent per share, the billions of shares of stock that the conspirators offered and sold in the public market yielded proceeds of more than $35 million, which was divided and distributed among Turino and the other conspirators.

 

In addition to the prison incarceration, U.S. District Judge Jennifer Dorsey sentenced Turino to five years of supervised release and ordered him to pay $35 million in restitution.

 

The case was investigated by the FBI and IRS-Criminal Investigation; and prosecuted by Assistant U.S. Attorney Kathryn Newman.

 

###

LAS VEGAS, Nev. – Dr. Henri Wetselaar, MD, 93, and David A. Litwin, 58, were found guilty of conspiracy to distribute and distribution of oxycodone and other controlled substances, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.

According to the indictment, Wetselaar was a Nevada physician practicing as a specialist in pain management. Litwin was alleged to be his medical assistant.

According to the indictment, Wetselaar and Litwin conspired with each other and local drug dealers to distribute the prescription drugs in and around Las Vegas. Wetselaar prescribed large amounts of highly addictive prescription drugs, including oxycodone, hydrocodone, Xanax and Soma, to persons for no legitimate medical purpose.

Following a 10-week jury trial, Wetselaar and Litwin were found guilty of conspiracy to distribute controlled substances and distribution of controlled substances. In addition, Wetselaar was found guilty of money laundering and structuring of money transactions.

Sentencing is scheduled for June 21, 2017, before U.S. District Judge Kent Dawson. At the time of sentencing, Wetselaar and Litwin each face a mandatory prison sentence of 20 years in prison and a $1,000,000 fine.

The case was investigated by the Drug Enforcement Administration, the FBI, and Internal Revenue Service-Criminal Investigation; and prosecuted by Assistant U.S. Attorneys Cristina Silva and Andrew Duncan.

###

LAS VEGAS, Nev. – A Henderson, Nevada man was sentenced by U.S. District Judge Andrew P. Gordon to 120 months in prison for coercion and enticement of a minor to engage in illegal sexual activity, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.

On Nov. 9, 2016, following a two-day trial, Kenneth Gordon Wescott, 55, was convicted by a jury of one count of coercion and enticement of a minor. According to the indictment, on or about Dec. 12, 2013 and Jan. 4, 2014, Wescott knowingly coerced and enticed a minor to engage in sexual activity.

The case was investigated by the FBI and the Henderson Police Department; and prosecuted by Assistant U.S. Attorneys Kilby C. Macfadden, Cristina D. Silva, and Elham Roohani.

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

 

###

LAS VEGAS, Nev. – A Las Vegas man pleaded guilty today to conspiracy to commit a nearly $5.3 million advance fee fraud scheme targeting small business owners seeking grant funding, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.

 

Gregory Villegas, 37, pleaded guilty to conspiracy to commit wire fraud. He was indicted by a superseding indictment on Jan. 13, 2016. Sentencing is scheduled for June 30, 2017, before U.S. District Chief Judge Gloria M. Navarro.

 

As part of the guilty plea agreement, Villegas admitted that, together with co-conspirators Christine Gagnon, Mickey Gines, and others, he defrauded at least 390 victims for a total approximate loss of $5,261,218, between March 1, 2008 and about May 2, 2012. According to the plea agreement, Villegas and conspirators ran an advance fee scheme to defraud small business owners by pretending to operate companies that would obtain grants for the small business owners from public and private sources. In truth, Villegas and conspirators never intended to pursue any grant funding for the victims. The sole purpose of the scam was to enrich Villegas and conspirators. The plea agreement states that Villegas and conspirators repeatedly solicited victims for additional money for goods and services, and made numerous false statements, including false promises of grant funding and excuses for delays in funding. Villegas admitted that he directed staff to use aliases and operated under multiple business names to avoid lawsuits, actions by consumer protection agencies, and apprehension by law enforcement.

 

At the time of sentencing, Villegas will face the statutory maximum penalty of 20 years in prison and a $250,000 fine. Gagnon pleaded guilty on Nov. 17, 2014, and awaits sentencing scheduled for April 14, 2017; and Gines pleaded guilty on Feb. 2, 2015, and awaits sentencing scheduled for June 22, 2017.

 

The case is being investigated by the FBI and U.S. Secret Service; and prosecuted by Assistant U.S. Attorney Dan Cowhig.

 

###

LAS VEGAS, Nev. – Twenty-one individuals were charged in an indictment for their alleged roles and participation in an international multimillion dollar scheme to steal credit and debit card account information, manufacture counterfeit credit and debit cards, identity theft, and money laundering. The charges are the result of a ten-month investigation by local, state, and federal law enforcement and the Department of State.

 

United States Attorney Daniel G. Bogden of the District of Nevada; Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division; Special Agent in Charge Michael Bishop of the Diplomatic Security Service’s Los Angeles Field Office; Sheriff Joseph Lombardo of the Las Vegas Metropolitan Police Department; and Chief Patrick E. Moers of the Henderson Police Department made the announcement.

 

“The sophisticated multimillion dollar fraud scheme occurred in Las Vegas, multiple other states, and crossed international borders,” said U.S. Attorney Bogden. “These charges are another successful example of our commitment to working together with local, state, and federal law enforcement partners in the pursuit and prosecution of perpetrators who commit credit card fraud, identity theft, and money laundering.”

 

“These indictments demonstrate the unified commitment of law enforcement to stop those who target our community through the theft of our personal and financial data. Those who commit such acts should take notice that you will be caught,” said SAC Rouse of the FBI’s Las Vegas Division.

 

“The Diplomatic Security Service is firmly committed to working with the U.S. Department of Justice and our local law enforcement partners in Nevada to investigate and prosecute all allegations of criminal activity related to passport and visa fraud,” said SAC Bishop of the U.S. Department of State’s Diplomatic Security Service Los Angeles Field Office. “The strong relationship we enjoy with our federal and local law enforcement partners is vital towards ensuring the integrity of U.S. travel documents and protecting greater U.S. interests.”

 

According to the allegations in the 47-count indictment, from at least Jan. 1, 2013, to about Dec. 9, 2016, the defendants conspired to commit credit and debit card fraud by using “skimmers” placed on automatic teller machines (ATM), cash-out transaction ticket dispensing terminals, such as Global Cash Advance (GCA), and other means to obtain stolen account information. They set-up credit card forgery “laboratories” in residences and hotel rooms to manufacture counterfeit credit and debit cards. Equipment in the laboratories included counterfeit card production systems, thermal dye printers, foil tipping machines, card embossers, and card scanners and encoders.

 

It is further alleged that the defendants possessed and used the counterfeit credit and debit cards at hotel-casinos, high-end luxury watch, jewelry, and fashion boutiques, electronic retailers, and ATMs throughout Las Vegas, Nevada and in other cities and counties around the country, including: Del Mar, California, Detroit, Michigan, New Orleans, Louisiana, Nassau County, New York, Biloxi, Mississippi, and Atlantic City, New Jersey. They obtained GCA cash advances at casinos, and purchased expensive merchandise, including Rolex watches, ladies’ purses and handbags, and clothing. The purchases would be resold on the black market or online marketplaces. The approximate total loss is over $3.5 million in fraudulent retail purchases and cash advances and withdrawals at hotel-casino properties and other businesses.

 

In addition, the defendants allegedly possessed and used personal identification of other individuals. The defendants allegedly conspired to commit money laundering and made deposits into bank accounts with money obtained through the fraudulent credit and debit card scheme.

 

The indictment charges the defendants with conspiracy to commit fraud and related activity in connection with access devices; producing, using or trafficking in a counterfeit access device; using or trafficking in an unauthorized access device; possession of 15 or more counterfeit or unauthorized access devices; possession of access device-making equipment; aggravated identity theft; possession of counterfeit Visa, permit or other document; conspiracy to commit money laundering; and money laundering. The indictment charges the following 21 defendants:

 

• Lucas Coehlo Paiva Rego, 25

• Fausto Teixeira Martins Neto, 36

• Andre Araujo Rodrigues, 33

• Anderson Clayton Mariano Alcantara, 26

• Carlos Rodrigo Dos Santos Braga, 36

• Bruno Macedo Correia, 26

• Pedro Igor Alves Barbosa, 21

• Vitor Domingues Valentini Dos Reis, 25

• Bruno Dos Santos, 31

• Amysterdan Barbosa Da Silva, 34

• Alexander Lima De Souza, 38

• Francisco Rui De Alencar Mendes Filo, 26

• Davi Dias Fernandes, 26

• Shiro Noburo Naruse, 24

• Hugo Belmino Garces, 27

• Lorenzo Ramon Sala Moura, 39

• Marcelo Araujo, 34

• Henrique Ortolani De Souza Vila Real, 31

• Leonardo Augusto Oliveira Santos, 33

• Rogerio Belarmino Da Silva, 31

• Felipe Augusto Vecale Martins, 38

 

If convicted, the defendants face a maximum statutory penalty of 20 years in prison. In addition, they face fines in the amount of $250,000.

 

These charges are the result of cooperative, investigative efforts by the FBI, Department of State’s Diplomatic Security Service, Las Vegas Metropolitan Police Department, and Henderson Police Department. The case is being prosecuted by Assistant U.S. Attorney Patrick Burns.

 

An indictment is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

 

###

---

LAS VEGAS, Nev. – The owner and operator of numerous beauty product websites was arrested and charged in a 25-count indictment for selling misbranded drugs and misbranded medical devices, announced U.S. Attorney Daniel G. Bogden for the District of Nevada and Special Agent in Charge William Conway for the FDA Office of Criminal Investigations’ Chicago Field Office.

 

“The Nevada U.S. Attorney’s Office is committed to protecting consumers and ensuring that products being sold at stores and online in the United States are safe and in accordance with federal law,” said U.S. Attorney Bogden. “We will continue to work with the FDA to ensure the publics’ health is not compromised.”

 

"U.S. consumers rely on the FDA to ensure that the medical products they use are safe and effective," said Special Agent in Charge Conway. "Our office will continue to pursue and bring to justice those who attempt to introduce illegal products into the U.S. marketplace."

 

Kelly Luanne Schaible, aka Kelly Reed, aka Heather Lane, 55, of Henderson, Nev., was charged with nine-counts of wire fraud, six-counts of mail fraud, four-counts of introduction of misbranded drugs into interstate commerce, five-counts of introduction of misbranded medical devices into interstate commerce, and one-count of destruction of evidence. Trial is scheduled for May 8, 2017.

 

According to the indictment, from 2009 to 2014, Schaible owned and operated AAE d/b/a Basics, Inc.; Basics, Inc.; and Basics Inc., Ltd. The companies’ websites sold various beauty products related to weight loss, hair loss, skin care, eyelashes, and wrinkle reduction.

 

The indictment alleges that Schaible knowingly marketed, sold, and distributed non-FDA approved prescription drugs containing Botulinum Toxin Type A, also known as Botox, and non-FDA approved prescription devices containing hyaluronic acid, also known as Juvederm related products. Schaible obtained these products from distributors in China and knew it was illegal to import such products into the United States. She made various representations that were intended to lead customers to believe that the products and devices she sold were equivalent to genuine Botox and Juvederm and that a customer could administer the products in a “do it yourself” fashion without a prescription. She mislabeled the products and shipped the misbranded drugs to customers throughout the United States and to other countries. Schaible sold approximately 9,500 units of misbranded prescription drugs containing Botulinum and received approximately $1.7 million in sales revenue. She also sold approximately 4,000 units of misbranded Juvederm products and received approximately $630,000 in sales revenue.

 

The indictment further alleges that after a search and seizure by FDA Special Agents, Schaible attempted to destroy a plastic bag containing vials of Botulinum for the purpose of preventing and impairing the investigation.

 

The maximum statutory penalty for wire fraud and mail fraud is up to 20 years in prison and a $250,000 fine; the maximum statutory penalty for introducing misbranded drugs and misbranded devices into interstate commerce is three years in prison and a $10,000 fine; and the maximum statutory penalty for destruction of evidence is five years in prison and a $250,000 fine.

 

The case is being investigated by the Food and Drug Administration-Office of Criminal Investigations; and prosecuted by Assistant U.S. Attorney Carla B. Higginbotham.

 

The public is reminded that an indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty in a court of law.

 

###

RENO, Nev.— Balwinder Singh, 41, was sentenced today by U.S. District Judge Larry R. Hicks to 180 months in prison for conspiracy to provide material support and resources to terrorists for a movement to create an independent Sikh state in the Punjab region of Indian, announced Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Daniel G. Bogden for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division.

“The JTTF investigation led to the discovery of a Reno resident who was a member of two terrorist groups and provided material support to intimidate the Indian government and to harm persons that were not supporting the terrorism groups’ cause,” said U.S. Attorney Bogden. “This case is an example of multi-law enforcement agencies working collaboratively together to protect the United States and our foreign allies from a terrorist act.”

“The sentence imposed today sends a clear message: Members of the FBI’s Joint Terrorism Task Force will work vigorously to uncover and stop any efforts to provide monetary or material support to organizations created to do murder,” said FBI SAC Rouse. “This investigation clearly highlights the magnitude and importance of the law enforcement community’s commitment to combatting terrorism and keeping our nation safe.”

Singh, aka Jhaji, aka Happy, aka Possi, aka Baljit Singh, is a citizen of India and a permanent U.S. resident. Singh pleaded guilty on Nov. 29, 2016.

According to court documents, between September 2013 and Dec. 17, 2013, Singh conspired with others to support terrorist attacks in India as part of a movement to create an independent Sikh state in the Punjab region of India. Singh agreed to provide material support by helping facilitate a co-conspirator’s travel to and within South Asia; to provide necessary funding; and to provide materials necessary to carry out the attack. On occasions, Singh traveled from Reno to California to meet a co-conspirator in person.

In October 2013, Singh and co-conspirators agreed that one co-conspirator would travel to India and commit a terror attack – likely an assassination or maiming of an Indian governmental official. The final target would be determined after the co-conspirator arrived in South Asia.

In November 2013, Singh purchased two sets of night vision goggles and a laptop computer. In December 2013, he provided these items to a co-conspirator who was going to carry out the planned terror attack. On Dec. 9, 2013, the co-conspirator attempted to board a flight from the San Francisco International Airport to Bangkok, Thailand in order to carry out the terror attack with the night vision goggles provided to him by Singh. United States law enforcement prevented the co-conspirator from boarding that flight. As a result, the planned terror attack never occurred. After these events, Singh and his co-conspirators continued to discuss and plan the terror attack in India until Singh’s arrest.

The case was investigated by the FBI-led Joint Terrorism Task Force in northern Nevada. The northern Nevada JTTF is comprised of the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Naval Criminal Investigative Service and Nevada Department of Investigation. In addition, ATF, U.S. Citizenship and Immigration Services, and the Washoe County Sheriff’s Office provided assistance in the investigation.

Assistant U.S. Attorneys Sue Fahami, Brian L. Sullivan, Carla Higginbotham, and Trial Attorney Mara M. Kohn of the National Security Division’s Counterterrorism Section prosecuted the case.

###

Balwinder Singh, aka Jhaji, aka Happy, aka Possi, aka Baljit Singh, 42, of Reno, Nevada, was sentenced today to 15 years in federal prison for conspiracy to provide material support and resources to terrorists.

Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Daniel G. Bogden for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division made the announcement.

“The JTTF investigation led to the discovery of a Reno resident who was a member of two terrorist groups and provided material support to intimidate the Indian government and to harm persons that were not supporting the terrorism groups’ cause,” said U.S. Attorney Bogden. “This case is an example of multi-law enforcement agencies working collaboratively together to protect the United States and our foreign allies from a terrorist act.”

“The sentence imposed today sends a clear message: Members of the FBI’s Joint Terrorism Task Force will work vigorously to uncover and stop any efforts to provide monetary or material support to organizations created to do murder,” said Special Agent in Charge Rouse. “This investigation clearly highlights the magnitude and importance of the law enforcement community’s commitment to combatting terrorism and keeping our nation safe.”

Singh is a citizen of India and a U.S. permanent resident. Singh pleaded guilty on Nov. 29, 2016. He was charged on Dec. 18, 2013.

According to court documents, between September 2013 and Dec. 17, 2013, Singh conspired with others to support terrorist attacks in India as part of a movement to create an independent Sikh state in the Punjab region of India. Singh agreed to provide material support by helping facilitate a co-conspirator’s travel to and within South Asia; to provide necessary funding; and to provide materials necessary to carry out the attack. On occasions, Singh traveled from Reno to California to meet a co-conspirator in person.

In October 2013, Singh and co-conspirators agreed that one co-conspirator would travel to India and commit a terror attack – likely an assassination or maiming of an Indian governmental official. The final target would be determined after the co-conspirator arrived in South Asia.

In November 2013, Singh purchased two sets of night vision goggles and a laptop computer. In December 2013, he provided these items to a co-conspirator who was going to carry out the planned terror attack. On Dec. 9, 2013, the co-conspirator attempted to board a flight from the San Francisco International Airport to Bangkok, Thailand in order to carry out the terror attack. He had with him the night vision goggles provided to him by Singh. U.S. law enforcement prevented the co-conspirator from boarding that flight. As a result, the planned terror attack never occurred. After these events, Singh and his co-conspirators continued to discuss and plan the terror attack in India until Singh’s arrest.

This case was investigated by the FBI-led Joint Terrorism Task Force (JFFT) in northern Nevada. The northern Nevada JTTF is comprised of the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Naval Criminal Investigative Service and the Nevada Department of Investigation. The ATF, U.S. Citizenship and Immigration Services and the Washoe County Sheriff’s Office in Nevada also provided assistance in the investigation.

Assistant U.S. Attorneys Sue Fahami, Brian L. Sullivan and Carla Higginbotham of the District of Nevada, and Trial Attorney Mara M. Kohn of the National Security Division’s Counterterrorism Section prosecuted the case.

Jeffrey Nowak, a Las Vegas, Nevada liquor store owner was sentenced to serve 41 months in prison for conspiring to defraud the United States and tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Daniel G. Bogden for the District of Nevada.

 

According to the evidence introduced at trial and documents filed with the court, Nowak, 67, and Ramzi Suliman jointly owned and operated liquor stores in Las Vegas. At their first liquor store, Super Liquor Store South Strip, Nowak and Suliman skimmed cash receipts and maintained a double set of books in order to underreport income to the Internal Revenue Service (IRS). One set of books accurately reflected the store’s sales, while a second set of books fraudulently omitted nearly $4 million in cash receipts that had been actually received by the business. Nowak and Suliman provided the phony set of books to their accountant, causing him to create corporate tax returns that did not fully report the liquor store’s gross receipts and taxable income. Nowak and Suliman also caused their true personal income to be concealed on their individual income tax returns.

 

“Everyone is legally required to accurately report and pay taxes on their income – cash sales are not an opportunity to skirt this obligation,” said Acting Deputy Assistant Attorney General Goldberg. “Nowak’s prison sentence makes clear that taxpayers cannot hide behind a double set of books.”

 

“The defendant intentionally concealed the store’s income by conspiring to skim cash and keeping two sets of account books,” said U.S. Attorney Bogden. “As a result, he cheated the U.S. Treasury and taxpayers. The U.S. Attorney’s Office is committed to working together with the IRS to pursue and prosecute perpetrators who choose to violate tax laws for their own benefit. Financial fraud is a top priority.”

 

In addition to the term of prison imposed, Nowak was ordered to serve three years of supervised release and pay restitution to the IRS. Nowak was convicted in August 2016, of conspiring to defraud the United States, assisting in the filing of false corporate tax returns and tax evasion. Suliman pleaded guilty in July 2014 to conspiring with Nowak to defraud the United States and was sentenced on Jan. 18 to serve 12 months in prison, three years of supervised release and to pay $428,003 in restitution to the IRS.

 

Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Bogden commended special agents of IRS Criminal Investigation, who conducted the investigation and Assistant U.S. Attorney Kathryn C. Newman and Trial Attorney Eric C. Schmale of the Tax Division, who prosecuted the case.

 

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

LAS VEGAS, Nev.–Jeffrey Nowak, a Las Vegas, Nevada liquor store owner, was sentenced to serve 41 months in prison for conspiring to defraud the United States and tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Daniel G. Bogden for the District of Nevada.

 

According to the evidence introduced at trial and documents filed with the court, Nowak, 67, and Ramzi Suliman jointly owned and operated liquor stores in Las Vegas. At their first liquor store, Super Liquor Store South Strip, Nowak and Suliman skimmed cash receipts and maintained a double set of books in order to underreport income to the Internal Revenue Service (IRS). One set of books accurately reflected the store’s sales, while a second set of books fraudulently omitted nearly $4 million in cash receipts that had been actually received by the business. Nowak and Suliman provided the phony set of books to their accountant, causing him to create corporate tax returns that did not fully report the liquor store’s gross receipts and taxable income. Nowak and Suliman also caused their true personal income to be concealed on their individual income tax returns.

 

“Everyone is legally required to accurately report and pay taxes on their income – cash sales are not an opportunity to skirt this obligation,” said Acting Deputy Assistant Attorney General Goldberg. “Nowak’s prison sentence makes clear that taxpayers cannot hide behind a double set of books. ”

 

“The defendant intentionally concealed the store’s income by conspiring to skim cash and keeping two sets of account books,” said U.S. Attorney Bogden. “As a result, he cheated the U.S. Treasury and taxpayers. The U.S. Attorney’s Office is committed to working together with the IRS to pursue and prosecute perpetrators who choose to violate tax laws for their own benefit. Financial fraud is a top priority.”

 

In addition to the term of prison imposed, Nowak was ordered to serve three years of supervised release and pay restitution to the IRS. Nowak was convicted in August 2016, of conspiring to defraud the United States, assisting in the filing of false corporate tax returns and tax evasion. Suliman pleaded guilty in July 2014 to conspiring with Nowak to defraud the United States and was sentenced on Jan. 18 to serve 12 months in prison, three years of supervised release and to pay $428,003 in restitution to the IRS.

 

Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Bogden commended special agents of IRS Criminal Investigation, who conducted the investigation and Assistant U.S. Attorney Kathryn C. Newman and Trial Attorney Eric C. Schmale of the Tax Division, who prosecuted the case.

 

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

 

# # #

LAS VEGAS, Nev. – A father and son were indicted today in connection with the armed robberies committed at two Henderson credit unions, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

 

“The alleged armed robberies placed bank employees and customers at severe risk of imminent harm,” said U.S. Attorney Bogden. “We will continue to work with our law enforcement partners to ensure justice is brought to individuals who choose to steal from financial institutions in Nevada.”

 

Jeffrey Alan James, 51, and Jessy Stewart James, 22, both of Las Vegas, are each charged with one-count of Hobbs Act Robbery and one-count of bank robbery. Trial has been scheduled for May 9, 2017.

 

According to court documents, on Jan. 24, 2017, Jeffrey and Jessy James stole approximately $4,000 from a Silver State Schools Credit Union. Jeffrey James pointed a replica firearm at a bank teller’s head and demanded money. Jessy James placed a suitcase on the counter, and informed the teller that if she cooperated, she would not be shot.

 

It is further alleged that on Feb. 16, 2017, Jessy James stole approximately $4,207 from the America First Credit Union. He approached a bank teller with two large envelopes. One envelope had a demand note to the effect of “This is a robbery, not a joke” and the other envelope held a replica firearm with the barrel pointing at the bank teller through a hole in the paper. Jeffrey James waited outside of the credit union and acted as a getaway driver once Jessy James had completed the robbery.

 

The case is being investigated by the Henderson Police Department and the Federal Bureau of Investigation, and prosecuted by Assistant U.S. Attorney Patrick Burns.

 

An indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent until and unless proven guilty in a court of law.

 

###

LAS VEGAS, Nev. – A former church treasurer was sentenced on Wednesday to four years in prison for stealing nearly $1.5 million from the church in a wire fraud scheme, and committing more than $500,000 in tax fraud, announced U.S. Attorney Daniel G. Bogden for the District of Nevada and Special Agent in Charge Tara Sullivan of the IRS Las Vegas Field Office.

 

Gregory J. Olson, 52, formerly of Las Vegas, now living in Ryder, North Dakota, pleaded guilty on May 9, 2016, to one count of wire fraud and four counts of tax fraud. United States District Judge Andrew Gordon presided over the hearing. Olson was charged by an indictment on Sept. 5, 2012.

 

“The defendant stole from the church and its members to satisfy his greed and he now faces a sentence of imprisonment for his calculated and callous actions,” said U.S. Attorney Bogden. “The U.S. Attorney’s Office and IRS will work together and aggressively pursue financial fraud and tax fraud schemes that ultimately cause harm to innocent victims and the U.S. Treasury.”

 

“To steal from a church which entrusted its finances to you is not only sad, it’s deplorable,” said Special Agent in Charge Sullivan. “IRS Criminal Investigation and the U.S. Attorney’s Office will continue to pursue those who cause financial harm through embezzlement and fraud.”

 

According to court documents, Olson stole more than $1,466,292 from the Calvary Lutheran Church also called the Amazing Grace Lutheran Church of Las Vegas between 2006 and 2009. Olson admitted that he defrauded the church through a long-lasting and wide-ranging scheme. Olson made unauthorized cash and check withdrawals from the church’s bank accounts, false claims for reimbursement for church expenses, unauthorized receipt of mortgage loan proceeds, and solicited loans from individual church congregation members. Olson’s fraud scheme bankrupted the church.

 

Olson also knowingly failed to report as income the money he had stolen from the church in his 2006, 2007, 2008, and 2009 tax returns. The total tax loss was $541,770.

 

The case was investigated by the IRS-Criminal Investigation and prosecuted by Assistant U.S. Attorneys Gregg Damm and Dan Cowhig.

 

###

RENO, Nev. – A California woman pleaded guilty today to making counterfeit $100 bills and spending the money at businesses in Northern Nevada, announced U.S. Attorney Daniel G. Bogden for the District of Nevada. She faces the statutory maximum penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for June 5, 2017, before U.S. District Judge Miranda M. Du.

 

“It is a federal crime to make, forge, alter or counterfeit a Federal Reserve Note,” said U.S. Attorney Bogden. “Individuals who make counterfeit currency are attempting to cheat and cause damage to businesses and the U.S. economy. We will continue to protect the U.S. economy and seek prosecution of individuals who engage in counterfeiting currency.”

 

Yvonne Geneal Flores, 38, of Sacramento, Calif., was indicted on May 25, 2016. Co-defendant Thomas Michael Morla, 42, pleaded guilty to making counterfeit currency and was sentenced to serve 18 months in prison.

 

According to the plea agreement and court documents, from Oct. 7, 2015 to May 5, 2016, Flores and Morla manufactured and passed numerous counterfeit $100 bills at various businesses in Reno, Carson City, and Sparks. Law enforcement were alerted to the counterfeit bills after Hertz Rental Car filed a report about Morla in possession of an embezzled Mercedes in Carson City. At the time of his arrest, he was holding counterfeit money. Flores’s name was listed as one of the drivers on the Hertz rental contract and she too was arrested for possession of an embezzled vehicle. During the execution of a search warrant, law enforcement found over $6,000 in counterfeit bills, a laptop computer, scanner/printer, and other items Flores and Morla used to manufacture the counterfeit currency. The U.S. Secret Service has collected nearly $50,000 counterfeit $100 bills from businesses that can be attributed to Flores and Morla based on the similarities of the notes and the use of the same face and back plate numbers, and check letter/quadrant numbers.

 

The case was investigated by the U.S. Secret Service; and prosecuted by Assistant U.S. Attorney Brian L. Sullivan.

 

###

RENO, Nev. – Following a six-day trial, a jury found a husband guilty of voluntary manslaughter in his wife’s death at their home on the Fort McDermitt Indian Reservation, announced U.S. Attorney Daniel G. Bogden for the District of Nevada. The man is a member of the Fort McDermitt Paiute-Shoshone Tribe of Nevada and Oregon and his wife was a member of the Te-Moak Tribe of the Western Shoshone.

 

“The defendant will be held accountable for this crime,” said U.S. Attorney Bogden. “I commend our local, tribal, and federal law enforcement partners and the Assistant U.S. Attorneys for working together collaboratively throughout the investigative and prosecution process and for their commitment in seeking justice for the victim.”

 

Nelson Ray McKee, 45, was indicted on Jan. 28, 2015. At the time of sentencing, he faces the statutory maximum penalty of 15 years in prison. Sentencing is scheduled for May 15, 2017, before U.S. District Judge Robert C. Jones.

 

According to testimony and evidence presented during the jury trial, on Dec. 31, 2014, McKee’s wife went to a neighbor’s house after being stabbed in the upper chest by McKee. The neighbors dialed 9-1-1. A BIA officer and Humboldt County Deputies arrived at the scene and went to locate McKee. They noticed blood drops in the snow around the property and on the front door of McKee’s residence. Upon entering the residence, law enforcement found McKee extremely intoxicated. They also found two kitchen knives on a table, bottles of whiskey, and small droplets of blood on the kitchen floor and on the front door frame. McKee was arrested that night after officers were alerted that the woman died from her injuries. The Washoe County Medical Examiner’s autopsy revealed that the knife penetrated 5 inches into the woman’s chest and directly into her heart.

 

The case was investigated by the Bureau of Indian Affairs, Humboldt County Sheriff’s Office, and FBI; and prosecuted by Assistant U.S. Attorneys Shannon M. Bryant and Carla B. Higginbotham.

 

###

LAS VEGAS, Nev.–Three men, including two former felons, were arrested and face criminal charges after posting videos on Snapchat of themselves illegally shooting firearms which included a stolen firearm, announced U.S. Attorney Daniel G. Bogden of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI Las Vegas field office.

 

“The three defendants were arrested and charged with gun crimes. Criminals should take heed of these arrests. Law enforcement will utilize all resources at their disposal to protect citizens and to ensure safe Nevada communities for all to live in,” said U.S. Attorney Bogden.

 

“These arrests reflect the FBI's strong, collaborative partnership with the Las Vegas Metropolitan Police Department and our common goal of making our city safer. Those who seek to live the gang lifestyle or exploit others through human trafficking should take note of the unified effort of the law enforcement community to stop their despicable pursuits,” said SAC Rouse.

 

Peryoun Newman, 25, Shavonte Hill, 29, both of Las Vegas, were charged by a criminal complaint for felon in possession of firearms. Co-defendant, Jevontae Caldwell, 24, of Las Vegas, was charged with possession of a stolen firearm by the same complaint. Newman and Hill are former convicted felons. In 2013, Newman was convicted of conspiracy to commit robbery and pandering. In 2004, Hill was convicted of attempted murder with a deadly weapon and discharging a firearm into an occupied structure, and in 2010, in both federal and state court, he was found guilty for being a felon in possession of a firearm. It is illegal for a felon to possess a firearm.

 

According to the criminal complaint, on Jan. 27, 2017, during the course of an investigation into a criminal street gang and human trafficking, law enforcement observed a live Snapchat video that depicted Newman, a self-proclaimed “Wood” street gang member involved in illegal activities, holding and firing a semi-automatic Draco pistol in an indoor shooting range with Hill, Caldwell, and others. In the Snapchat videos, the defendants discussed what kind of firearms they had in their possession and were shooting. Las Vegas Metropolitan Police Department officers and detectives arrived at the indoor shooting range and observed the defendants placing a cardboard box into a vehicle’s trunk, then driving to an apartment. Newman, Hill, and Caldwell were arrested for probable cause. At the time of arrest, Caldwell had a 9mm semi-automatic EEA SAR Arms in his pants pocket and a .45 caliber semi-automatic handgun in a bag he discarded while attempting to escape apprehension. The .45 caliber was reported as stolen in Mesa, Arizona. During the execution of a search warrant of their vehicle and apartment, law enforcement found a .40 caliber semi-automatic Glock 23; a Draco 7.62X39mm pistol; a Master Piece Arm 9mm pistol with a 3” barrel; and a .40 caliber Glock 27, magazine wells, and ammunition.

 

The case is being investigated by the FBI and Las Vegas Metropolitan Police Department; and prosecuted by Assistant U.S. Attorney Cristina D. Silva.

 

###

LAS VEGAS, Nev. – A North Las Vegas man was sentenced today to 120 months in prison for possession of a stolen firearm, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

 

“The defendant threatened and pointed a stolen firearm at another person,” said U.S. Attorney Bogden. “He received the statutory maximum penalty for this crime. We will continue to work with all our Las Vegas law enforcement partners to ensure community members are protected and that justice is served in all matters.”

 

Vandemere Gipson, 39, pleaded guilty on Nov. 7, 2016, to the criminal charge and was indicted on Nov. 19, 2014. United States District Chief Judge Gloria M. Navarro presided over the sentencing hearing.

 

According to the plea agreement, on Oct. 13, 2014, at Gipson’s request, he and two women drove to a Quick Check Mart, AM/PM convenience store, and other locations. The driver told Gipson that she was not a taxi service. At that time, Gipson reached under his left leg, pulled out a Smith and Wesson 9-mm handgun that he had been sitting on, racked the firearm, which loaded a live round into the chamber of the firearm, pointed the firearm at the driver and yelled, “Bitch, I will take your last breath! I will kill your ass!” The other woman exited the car and Gipson followed her outside. At this time, the driver noticed that Gipson left the firearm on the seat, so she drove away and secured the firearm. On Oct. 24, 2014, Gipson was arrested by the North Las Vegas Police Department. He admitted to owning and possessing the stolen firearm.

 

The case was investigated by North Las Vegas Police Department; and prosecuted by Assistant U.S. Attorneys Alexandra Michael and Phillip Smith Jr.

 

###

LAS VEGAS, Nev.–A Henderson, Nev., man was sentenced Thursday to 123 months in prison for possession of more than 600 images of child pornography, announced U.S. Attorney Daniel G. Bogden of the District of Nevada. As part of the sentencing, U.S. District Judge Lloyd D. George required the defendant to register as a sex offender.

 

“This case is a successful example of partnerships among a business, a nonprofit organization, and law enforcement in identifying, apprehending, and prosecuting a child sex predator,” said U.S. Attorney Bogden. “The child victims suffer for years following the exploitation. We will continue to use our combined resources to protect children from these heinous crimes.”

 

Daniel Robert Wardlaw, 23, pleaded guilty on Aug. 2, 2016, to possession of child pornography. He was charged on June 11, 2014. At the time of the crimes, Wardlaw was on state probation following a conviction for possession of child pornography.

 

According to admissions made in connection with his plea, in December 2013 and February 2014, the National Center for Missing and Exploited Children (NCMEC) received a tip from Instagram of suspected child pornography after Wardlaw uploaded images to the social networking site. The NCMEC forwarded the tips to law enforcement. During the execution of a search warrant of Wardlaw’s residence, law enforcement found more images of child pornography on computers, a Dropbox account, and an iPod. Law enforcement found evidence that Wardlaw exchanged child pornography with others and used his Dropbox account to store the images and videos. Wardlaw admitted that he possessed more than 600 images and videos of child pornography.

 

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.

 

The case was investigated by the FBI; and prosecuted by Assistant U.S. Attorney Cristina D. Silva.

 

###

RENO, Nev. – A Reno man was sentenced today by U.S. District Judge Howard D. McKibben to 36 months in prison and three years of supervised release for making a threat against the President of the United States, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

 

“The U.S. Attorney’s Office takes all threats against the President of the United States seriously, and we will work with our law enforcement partners to bring those who make such threats to justice,” said U.S. Attorney Bogden.

 

Steven Eugene Ford, aka Job Ford, aka Eleazar Melchizedek, 51, was convicted by a jury on Nov. 16, 2016. He was charged by an indictment on March 9, 2016.

 

According to court documents, on or about March 1, 2016, Ford made a threat to take the life of the President of the United States. He told a White House telephone operator that “I’m going to kill that president. I hate him.” During an interview with law enforcement, Ford admitted to making the threats.

 

The case was investigated by the U.S. Secret Service; and prosecuted by Assistant U.S. Attorney Brian L. Sullivan.

 

###

LAS VEGAS, Nev. – A Las Vegas man was sentenced today by U.S. District Judge Kent J. Dawson to 51 months in prison for three convenience store robberies in 2014, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

 

Eddie Junior Rodriguez, 46, pleaded guilty on Aug. 2, 2016, to three counts of interference with commerce by robbery.

 

“The defendant was brazen and robbed three convenience stores in less than two hours,” said U.S. Attorney Bogden. “Working with the FBI and our law enforcement partners, the U.S. Attorney’s Office is committed to reducing violent crime in Nevada and keeping our communities safe.”

 

According to court documents, Rodriguez admitted that on Dec. 23, 2014, at approximately 3:30 a.m., he entered a Speedee Mart, pointed a knife at an employee and demanded money. Approximately 30 minutes later, at another Speedee Mart location, Rodriguez brandished a knife and demanded money. The third robbery occurred shortly before 5:00 a.m. at Snackers where he demanded money.

 

The case was investigated by the FBI; and prosecuted by Assistant U.S. Attorney Alexandra Michael.

 

###

LAS VEGAS, Nev. – A Las Vegas man pleaded guilty Tuesday for his participation in a $3.2 million scheme to fraudulently obtain money from victims seeking business loans, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

 

Ronald Gene Morgan, 62, was indicted on Oct. 8, 2014. He faces 20 years in prison and a $250,000 fine. Sentencing has been scheduled for May 23, 2017, before U.S. District Judge James. C. Mahan.

 

“The U.S. Attorney’s Office is committed to assisting victims who were preyed upon and who are paying the consequences of this defendant’s greed,” said U.S. Attorney Bogden. “Together with our law enforcement partners, we will continue to identify, apprehend and prosecute these fraudsters who devise schemes to cheat innocent victims out of their much needed money.”

 

According to the plea agreement, from March 2009 to April 2011, Morgan, along with 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. Morgan admitted he 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 and to recruit other victims, and to repay portions of other victims fees in order to conceal the scheme. Morgan admitted the fraudulent scheme caused victims to lose about $3.23 million. He admitted that he is responsible for more than $550,000 and less than $1.5 million in loss.

 

The case is being investigated by the FBI; and prosecuted by Assistant U.S. Attorney Kathryn Newman and Nicholas D. Dickinson.

 

###

RENO, Nev. – Richard Winston West II, aka Richie West, former manager of the Jones-West Ford dealership in Reno, Nev., pleaded guilty today to prescription drug conspiracy and possession with intent to distribute oxycodone, announced U.S. Attorney Daniel G. Bogden of the District of Nevada, Special Agent in Charge Steve Corner of the DEA’s Los Angeles field office, and Special Agent in Charge Aaron C. Rouse of the Las Vegas field office. At the time of sentencing, West faces up to 20 years in prison for his plea of guilty to the conspiracy charge. Sentencing is set for May 8, 2017.

“Prescription drug abuse is a major public health and public safety issue. Nevada citizens should be concerned and be aware of its dangerous impact and effects,” said U.S. Attorney Bogden. “We are fighting collaboratively with our law enforcement partners pursuing dirty doctors and illicit pill mills to ensure that our communities remain safe and that we bring wrongdoers to justice and stem the rising tide of prescription drug abuse.”

 

“While the immediate impact on the Reno community is profound, sadly this case is representative of the broader national threat we face in prescription opioid misuse and addiction,” said SAC Comer. “Torn communities, broken homes and lost lives demonstrate vividly the fight we are engaged in, and DEA will continue to combat these horrors by identifying, investigating and arresting those responsible for the illicit distribution of controlled pharmaceutical drugs.”

 

“The successful investigation of this case is through the extraordinary and dedicated work by the FBI and our federal, state, and local law enforcement partners. This case shows the seriousness the FBI places on the upward trend of opioid addiction supported by the unscrupulous acts of the very people who should be looking out for their patients’ best interests. This is not the end of this problem, but the community should know that the FBI will be steadfast in our resolve to stem the tide in Nevada,” said SAC Rouse.

 

West, 40, was one of nine defendants charged on May 11, 2016, with conspiracy to distribute and possess with intent to distribute controlled substances, including oxycodone. According to admissions made in the plea agreement, beginning in November 2012 and continuing to April 2016, West conspired with co-defendant Dr. Robert Gene Rand, a Nevada physician who operated Rand Family Care in Reno, and others to illegally distribute and possess with intent to distribute prescription controlled substances, including oxycodone. At relevant times of the conspiracy, West obtained oxycodone prescriptions from Rand not for a legitimate medical purpose and ultimately distributed at least 500 oxycodone pills in 30 milligram dosages to others. In addition, West arranged the distribution of oxycodone via text messages to co-defendants, each of whom were at one time or another employees of the vehicle dealership. West referred several of the co-defendants to Rand to obtain prescriptions for painkillers, some of which were prescribed and obtained for neither a legitimate medical purpose nor in the usual course of medical practice. At the time of West’s arrest, he possessed a Sig Sauer pistol in furtherance of the conspiracy to distribute and possessed with intent to distribute controlled substances.

Co-defendants Rand, 53, Omar Ahsan Ahmad, 31, Joshua Ross Green, 34, Clint Mitchell Bloodworth, 40, Kathleen Griffin, 43, Alan Russel Martinez, 59, and Braden Kyle Riley, 40, all of Reno, and Ryan Daniel Smith, 40, of Carson City, were each charged in the same conspiracy. Rand is also charged with one count of distribution of oxycodone resulting in death and one count of distribution of fentanyl. Jury trial is set for April 25, 2017, before U.S. District Judge Miranda M. Du.

According to the Centers for Disease Control and Prevention (CDC), almost two million Americans abused or were dependent on prescription opioids in 2014. Every day, more than 1,000 people are treated in emergency departments for misusing prescription opioids. Overdoses involving opioids killed more than 33,000 people in 2015, more than any year on record, and over one-half of those deaths were from prescription opioids. For information on opioid overdose and how you can manage pain without prescription drugs, go to http://www.cdc.gov/drugoverdose/opioids/index.html.

The case is being investigated by the Northern Nevada Unified Drug and Gang Enforcement Task Force, which includes the DEA, FBI, IRS Criminal Investigation, ICE-HSI, ATF, 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 is being by prosecuted by Assistant U.S. Attorneys James Keller, Sue Fahami, and Shannon Bryant.

 

###

LAS VEGAS, Nev. – A Mexican citizen who was stopped for a traffic violation and subsequently found with heroin concealed in his vehicle was sentenced today to 120 months in prison, announced United States Attorney Daniel G. Bogden of the District of Nevada.

 

“The defendant concealed the heroin in different locations in his vehicle including a bean bag chair. Along with the work of our law enforcement partners, the U.S. Attorney’s Office is committed to preventing illegal drugs hitting our streets,” said U.S. Attorney Bogden.

 

According to court documents, in April 2015, Jesus Antonio Diaz-Flores, 37, was stopped for a traffic violation on I-15, near mile marker 60, by a Nevada Highway Patrol Trooper. Following Diaz-Flores’s consent to search the vehicle, a narcotics detector dog alerted the trooper who recovered five bundles containing a brownish-black tar-like substance hidden inside PVC pipe and a bean bag chair in the vehicle. The bundles were sent to the Las Vegas Metropolitan Police Department lab where the contents tested positive for heroin and weighed 2494.90 grams or approximately 5.5 pounds. Diaz-Flores admitted that he knew he was transporting heroin and that the heroin would later be distributed to other individuals.

 

Diaz-Flores was charged on April 21, 2015, and he pleaded guilty on July 11, 2016.

 

The case was investigated by the Drug Enforcement Administration and the Nevada Highway Patrol; and prosecuted by Assistant U.S. Attorney Susan Cushman.

 

###

LAS VEGAS, Nev. – Louis Matthews, 35, was sentenced today to life in prison for drug and firearm crimes that resulted in the death of a man during a drug deal at a North Las Vegas apartment in November 2013, announced U.S. Attorney Daniel G. Bogden of the District of Nevada and Special Agent in Charge Jill Snyder of the ATF. United States District Judge James C. Mahan also sentenced Matthews to 10 additional years in prison and five years of supervised release.

 

“Our United States Attorney’s Office and all our law enforcement partners remain vigilant in efforts to identify violent crime and we will continue to combat it head on to keep our communities safe. As in this case, we will work with our law enforcement partners to address and prevent violent crime issues. We remain committed to pursuing justice for all victims,” said U.S. Attorney Bogden.

 

“This case is an example of the hard work the Las Vegas Metropolitan Police Department, North Las Vegas Police Department and ATF agents do on a daily basis to protect the public from armed drug traffickers who threaten our neighborhoods,” said ATF Special Agent in Charge Jill Snyder. “At ATF, our goal is to protect our communities from violent criminals, criminal organizations, the illegal use and trafficking of firearms, the illegal use and storage of explosives, acts of arson and bombings, acts of terrorism, and the illegal diversion of alcohol and tobacco products. One of the ways ATF is able to do that is through the successful partnerships we have with other agencies.”

 

Following a seven-day trial, Matthews was convicted by a jury on Oct. 12, 2016, of one count of conspiracy to possess marijuana with intent to distribute and one count of using a firearm during and in relation to a drug trafficking crime resulting in death.

 

According to the court records, on Nov. 30, 2013, Matthews and John Thomas III arrived at an apartment on East Cheyenne Avenue in North Las Vegas to participate in a deal to purchase 20 pounds of marijuana from the deceased victim, Luciano Madrigal-Herrera. Also present at the apartment were Julio Nunez and Angel Juarez. The victim showed some of the marijuana to Matthews for inspection, and then went back outside to retrieve the rest. Matthews also left the apartment, stating he was going to get his friend, Thomas, as well as money for the marijuana. The three men returned to the apartment, and then Thomas and Matthews each produced handguns and repeatedly shot the victim during an attempt to rob him of the marijuana, causing his death. The defendants took the marijuana and attempted to flee with it. Nunez, in an attempt to prevent Matthews and Thomas from fleeing with the marijuana, shot at both of them with a sawed-off shotgun, striking both Thomas and his vehicle. Thomas and Matthews were ultimately able to escape the scene. Thomas was apprehended later the same night by the North Las Vegas Police Department after officers discovered that his gunshot-riddled vehicle had been left behind at the scene parked in front of the apartment where Madrigal-Herrera had been killed. Matthews was charged after the ensuing investigation led to his identity as the second suspect.

 

Three co-defendants were also charged in the scheme. John Thomas III, 25, of Las Vegas, pleaded guilty to conspiracy to possess marijuana with intent to distribute and using a firearm during and in relation to a drug trafficking crime resulting in death, and is awaiting sentencing. Julio Nunez, 28, of Las Vegas, pleaded guilty to one count of conspiracy to possess marijuana with intent to distribute and one count of discharging a firearm during and in relation to a drug trafficking crime and was sentenced to 42 months in prison and five years of supervised release. Angel Juarez, 29, of North Las Vegas, is awaiting trial.

 

This case was investigated by ATF, the Las Vegas Metropolitan Police Department, and North Las Vegas Police Department. The case was prosecuted by Assistant U.S. Attorneys Phillip N. Smith Jr. and Alexandra M. Michael.

 

###

RENO, Nev. – A Carson City, Nev., man was sentenced Monday to eight years in prison for distributing methamphetamine, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

 

Saul Cisneros, 33, was sentenced by U.S. District Judge Robert C. Jones, who also ordered Cisneros to 24 months consecutive on his supervised release violation. Cisneros pleaded guilty on Sept. 26, 2016, to conspiracy to distribute at least five grams of actual methamphetamine. He was indicted in a superseding indictment on June 10, 2015. Co-defendant Lisa Rose Jones, 37, of Carson City, pleaded guilty on March 29, 2016, and was sentenced to 18 months in prison.

 

According to court documents, in April 2015, a DEA confidential source called Cisneros to order an ounce of methamphetamine. They met at an apartment complex in Carson City where Cisneros and Jones directed the confidential source to an apartment. While in the apartment, Cisneros told the confidential source that he only had a half ounce of methamphetamine, and that the other half was on its way, and that the confidential source would need to return to the apartment for it. Jones placed a plastic bag of methamphetamine on the bed and the confidential source put $300 on the bed, which Cisneros took. The bag contained 13.3 grams of actual methamphetamine.

 

Seven other defendants were charged in federal district court arising out of this coordinated law enforcement investigation into methamphetamine distribution in the Lyon County and Carson City areas of Nevada. Michael Perez, 38, of Dayton, Nev., and Sergio David Perez, 33, of Carson City, Nev., were charged with conspiracy to distribute methamphetamine. Michael Perez was sentenced to 168 months on Aug. 8, 2016, and Sergio David Perez was sentenced to 97 months on Aug. 22, 2016 by U.S. District Judge Robert C. Jones. Juan Alvarez, 40, of Carson City, Nev., and Yuritsi Marquez, 35, of Carson City, Nev., pleaded guilty to possession with intent to distribute at least 50 grams of methamphetamine on November 16, 2016, and is awaiting sentencing. Marquez was sentenced to 366 days in prison on January 31, 2017. Angelo Tello, 31, of Carson City, Nev., and Lorena Tello, 25, Dayton, Nev., the paramours of Michael and Sergio David Perez, pleaded guilty to money laundering relating to the distribution of methamphetamine. Julio Contreras, 26, of Long Beach, CA, pleaded guilty to conspiracy to commit money laundering. Lorena Tello was sentenced to 366 days’ imprisonment. Angelo Tello and Julio Contreras are awaiting sentencing.

 

This case was a joint investigation by the DEA, Lyon County Sheriff’s Office, Tri-County Narcotics Enforcement Task Force, and the Tri-County Gang Unit; and prosecuted by Assistant U.S. Attorney James E. Keller.

 

###

LAS VEGAS, Nev. – A Las Vegas man arrested in 2014 as part of “Operation Protect the Powerless,” a joint law enforcement operation to catch child predators in southern Nevada, was sentenced today by U.S. District Judge Andrew P. Gordon to 156 months in prison and lifetime supervised release, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

 

“The defendant and his co-defendant exploited two minor girls for their financial benefit by forcing the girls to travel from Nevada to California to work as child prostitutes,” said U.S. Attorney Bogden. “This case is a prime example of successful state and nationwide efforts by multi-agencies and our law enforcement partners to identify and prosecute sexual predators. We remain committed to protecting children from sexual exploitation and abuse.”

 

Sha-Ron Haines, 20, was convicted by a jury on Aug. 25, 2015, of one count of conspiracy to commit sex trafficking of a child, one count of sex trafficking of a child, one count of conspiracy to transport a minor for prostitution or other illegal sexual activity, and one count of transportation of a minor for prostitution. Haines and co-defendant Tyral Edward King, 21, were indicted by a federal grand jury on Aug. 6, 2014. King pleaded guilty on Aug. 14, 2015, to one count of transportation of an individual for the purpose of prostitution, and was sentenced on March 1, 2016, to 30 months in prison.

 

According to court records, the investigation commenced on June 24, 2014, when a Clark County probation officer notified a Las Vegas Metropolitan Police Department officer that a 15-year-old girl might be involved in prostitution. Further investigation revealed that in May 2014, Haines and King had driven the 15-year-old girl and a 17-year-old girl, from Las Vegas to Pomona, Calif. and Los Angeles, Calif., with the intent that they engage in prostitution. King’s name and credit card were used to purchase online advertisements on an internet site commonly used by prostitutes and pimps called, “Backpage,” to set up prostitution dates for the minors in California. In May, the girls then engaged in prostitution acts in California, and all of the money they earned was turned over to Haines and King. On May 22, 2014, the 17-year-old girl was arrested by an undercover Los Angeles police officer who had responded to one of the advertisements on “Backpage,” and had met her at a hotel for sex. The 15-year-old girl later returned home to Las Vegas on a bus.

 

In a separate pending federal case, Haines is charged with assaulting a Southern Nevada federal detention center officer on Feb. 9, 2015, by using his fist to strike the officer in the face, jaw and ear four times. The case is currently scheduled for trial on May 9, 2017.

 

Operation Protect the Powerless was organized and led by the Project Safe Childhood (PSC) Task Force in southern Nevada, and targeted child traffickers, persons who were coercing and enticing minors for sex, child pornographers, child molesters and child rapists. Members of the PSC Task Force include the FBI, the U.S. Immigration Customs Enforcement Homeland Security Investigations (ICE-HSI), the Las Vegas Metropolitan Police Department, Henderson Police Department, Clark County D.A.’s Office, and the U.S. Marshals Service. Operation Protect the Powerless occurred from June 1 to Dec. 31, 2014, and resulted in the prosecution and conviction of 219 persons, the execution of 100 search warrants, and the recovery of over 500,000 images and 2,700 videos of child rape and pornography. The surge also resulted in prosecutions being handled jointly by the U.S. Attorney’s Office and Clark County District Attorney’s Office, and resulted in distinct charges in federal and state court.

 

The case was prosecuted by Assistant U.S. Attorneys Lisa C. Cartier-Giroux and Susan Cushman.

 

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

 

###

LAS VEGAS, Nev.—A Las Vegas woman was sentenced Wednesday to eight months in prison, eight months of home confinement, and three years of supervised release for filing 83 false tax returns totaling approximately $450,000, announced U.S. Attorney Daniel G. Bogden of the District of Nevada and Special Agent in Charge Tara Sullivan of the Internal Revenue Service.

“The defendant defrauded the U.S. Government and taxpayers each time she filed a false income tax return,” said U.S. Attorney Bogden. “This sentencing shows that such greed based criminal behavior does come with a cost. We will continue to pursue individuals who commit tax fraud in Nevada.”

"The sentencing of Roxanne Pitts reflect the continued efforts of IRS Criminal Investigation to prosecute those stealing from the government‎," said SAC Sullivan.

Roxanne Pitts, 51, was charged by a criminal information and pleaded guilty to conspiracy to defraud the government with respect to claims on Oct. 16, 2016.

According to the plea agreement, Pitts admitted that, from June 2011 to about Feb. 2013, she conspired with others to file 83 false U.S. Individual Income tax returns with the IRS. She obtained the identities of deceased individuals through genealogy websites and placed fictitious amounts of wages, withholding, and various deductions on the false tax returns. Pitts electronically filed the false tax returns and directed the IRS to deposit the fraudulent income tax refunds onto pre-paid debit cards that she had obtained in the names of the deceased individuals. In some instances, she directed the IRS to mail U.S. Treasury checks to various Las Vegas addresses. She paid others to receive the checks and to cash the U.S. Treasury checks that she and others fraudulently obtained from the U.S. Treasury.

The case was investigated by the IRS and prosecuted by Assistant U.S. Attorney Nicholas Dickinson.

###

LAS VEGAS, Nev.— A Las Vegas man was sentenced today by U.S. District Judge Robert C. Jones to 70 months in prison and four years of supervised release for possession with intent to distribute 400 grams of heroin and methamphetamine, announced U.S. Attorney Daniel G. Bogden of the District of Nevada.

“The defendant concealed the drugs in his vehicle with the intent to avoid law enforcement detection,” said U.S. Attorney Bogden. “We remain committed to working with the DEA and other law enforcement partners in keeping dangerous drugs off our streets.”

Paulino Rafael Quirazco-Valencia, 30, pleaded guilty to possession with intent to distribute a controlled substance. Co-defendant Arnold Gutierrez, 30, of Las Vegas, pleaded guilty to two-counts of possession with intent to distribute a controlled substance. Gutierrez was sentenced to 24 months in prison per count to run concurrent. They were indicted on Feb. 9, 2016.

According to court documents, in January 2016, during an ongoing investigation into the distribution of drugs, DEA Special Agents observed Quirazco-Valencia and Gutierrez manipulating the driver’s side area inside a vehicle parked at an apartment complex and acting in a manner consistent with drug trafficking. They drove off in the vehicle and were stopped by law enforcement. After obtaining consent to search the vehicle, officers located approximately 277 grams of heroin in the center console and a Sig Sauer .38 caliber handgun underneath the front middle seat. The drugs were found in colored balloons and baggies of various sizes consistent with drug distribution. Quirazco-Valencia was arrested and stated that the drugs in the vehicle belonged to him and he was delivering them to a customer. He consented to the search of his residence. The total amount of drugs and money seized from the traffic stop and residence was 395.4 grams of heroin, 4.6 grams of methamphetamine, and $19,290 in cash.

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

###

LAS VEGAS, Nev.—A Las Vegas man was sentenced Tuesday by United States District Judge James C. Mahan to 260 months in prison and six years of supervised release for felon in possession of a firearm, possession of cocaine with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Daniel G. Bogden of the District of Nevada.

“The defendant is a recidivist, a convicted felon who unlawfully possessed an automatic pistol, ammunition, over 9.5 grams of cocaine, and drug paraphernalia,” said U.S. Attorney Bogden. “Along with our law enforcement partners, the U.S. Attorney’s Office is committed to fighting violent crime and keeping Nevada’s communities and streets safe.”

Tyrone Davis, 33, pleaded guilty to possession of a firearm by a convicted felon, possession of cocaine with intent to distribute, and possession of a firearm in furtherance of a drug trafficking offense. He was charged in a three-count superseding indictment on Aug. 13, 2013.

According to court documents, Davis has prior felony convictions in Henderson and Las Vegas. On July 19, 2012, detectives with the Las Vegas Metropolitan Police Department were conducting a robbery investigation involving Davis. During the execution of a search warrant of his apartment, the detectives found a Browning .22 caliber automatic pistol, a bullet-proof vest, ammunition, a pistol magazine, 9.6 grams of cocaine, and two digital scales with residue, along with small plastic bags.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; and prosecuted by Assistant U.S. Attorneys Lisa C. Cartier-Giroux and Phillip N. Smith, Jr.

###

LAS VEGAS, Nev. – A Las Vegas woman pleaded guilty today to possessing stolen mail and making counterfeit U.S. currency, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

 

“Mail theft and manufacturing counterfeit money are serious crimes. Victims of mail theft may suffer for years after the crime has been committed and counterfeit currency impacts the economy and businesses,” said U.S. Attorney Bogden. “The U.S. Attorney’s Office will continue to work closely with the U.S. Postal Service and our law enforcement partners to bring offenders to justice. Citizens are urged to report incidences of mail theft immediately.”

 

Mary Fixico, 24, pleaded guilty to possession of stolen mail and counterfeiting before United States District Judge Andrew P. Gordon. Co-defendant, Kyle Sanz-Carver, 32, pleaded guilty on Dec. 28, 2016, to possession of stolen mail, possession of counterfeit U.S. Postal Service key, and possession of counterfeit U.S. Postal Service lock. They were indicted on Aug. 9, 2016.

 

According to the plea agreement, Fixico admitted that she and Sanz-Carver were in possession of approximately 45 pieces of stolen mail, approximately 80 bank and credit card account statements, and approximately 130 personal and commercial checks, all acquired from stolen first class mail. In addition, Fixico admitted that she knew the mail items were stolen and that Sanz-Carver was in possession of one U.S. Postal Service lock and four counterfeit U.S. Postal Service keys which were used to open U.S. mail boxes and mail receptacles to steal the mail items.

 

Furthermore, Fixico admitted that she would make her own U.S. currency with a scanner/printer and counterfeiting paraphernalia. She used the counterfeit currency at grocery stores, gas stations, and other businesses throughout Las Vegas. During the execution of a search warrant at Fixico’s and Sanz-Carver’s residence, law enforcement found a total of 23 completed forged checks that totaled $50,782. The payee’s name on the forged checks had been changed to Fixico’s name.

 

Sentencing is scheduled for April 19, 2017. Fixico faces a statutory maximum penalty of five years in prison and a $250,000 fine for possession of stolen mail and a maximum penalty of 20 years in prison and a $250,000 fine for counterfeiting.

 

The case was investigated by the U.S. Postal Service; and prosecuted by Assistant U.S. Attorney Lisa C. Cartier-Giroux.

 

###

The owner and operator of Candy Color Lenses, a major online retailer of colored contact lenses in the United States, was sentenced to 46 months in prison today for running an international operation importing counterfeit and misbranded contact lenses from suppliers in Asia and then selling them over the internet without a prescription to tens of thousands of customers around the country.  

Acting Assistant Attorney General David Bitkower of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada and Director George M. Karavetsos of the U.S. Food and Drug Administration’s (FDA) Office of Criminal Investigations made the announcement.

  In addition to imposing a prison sentence, U.S. District Judge James C. Mahan of the District of Nevada ordered defendant Dmitriy V. Melnik, 30, of Las Vegas, remit $200,000 in restitution and forfeit $1.2 million in proceeds derived from the scheme as well as property seized during the investigation.  Melnik pleaded guilty before Judge Mahan on Sept. 8, 2016, to one count of conspiracy to traffic in counterfeit goods and to introduce into interstate commerce misbranded devices.  

According to the plea agreement, Melnik imported large quantities of colored contact lenses from the People’s Republic of China and South Korea that he knew were counterfeit and/or unauthorized by the FDA for sale in the United States.  Many of these contact lenses bore labels with counterfeit trademarks for Ciba Vision FreshLook COLORBLENDS, which are manufactured by Novartis International AG (Novartis), and others bore labels of contact lense brands produced and sold in Asia, he admitted.  

As stipulated in the plea agreement, contact lenses—even decorative ones—are medical devices that if not fitted, worn, or cared for properly can result in serious eye injury including blindness, and must receive prior FDA authorization to enter the U.S. and be further distributed.  Melnik admitted, however, that he sold purportedly “authentic” contact lenses to tens of thousands of customers around the United States without a prescription, adequate directions for use or adequate warnings.  After purchasing the contact lenses, many customers complained directly to Melnik about the quality of the contact lenses and questioned Melnik about whether the contact lenses were genuine and FDA approved.  Melnik admitted that many of the contact lenses that he sold were substandard, and that some were tested and found to be contaminated with a potentially dangerous bacteria.  

As stated in the plea agreement, a substantial part of the fraudulent scheme was committed from outside the United States, and Melnik received at least $1.2 million in gross revenue from this illegal enterprise, including approximately $200,000 alone from the sale of counterfeit Ciba Vision FreshLook COLORBLENDS.

Anyone with information about individuals committing intellectual property offenses can report those crimes to the National Intellectual Property Rights Coordination Center by going to http://www.iprcenter.gov/referral or calling (866) IPR-2060.

The prosecution is the result of an ongoing multiagency effort to combat counterfeit, illegally imported and unapproved contact lenses called Operation Double Vision.  The FDA’s Office of Criminal Investigations led the investigation, with significant support from the U.S. Postal Inspection Service and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.  Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Daniel J. Cowhig of the District of Nevada are prosecuting the case.  

The indictment is related to the many efforts being undertaken by the department’s Task Force on Intellectual Property, which supports prosecution priorities, promotes innovation through heightened civil enforcement, enhances coordination among federal, state and local law enforcement partners and focuses on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders.

LAS VEGAS, Nev.–The owner and operator of Candy Color Lenses, a major online retailer of colored contact lenses in the United States, was sentenced to 46 months in prison today for running an international operation importing counterfeit and misbranded contact lenses from suppliers in Asia and then selling them over the internet without a prescription to tens of thousands of customers around the country.

 

Acting Assistant Attorney General David Bitkower of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada and Director George M. Karavetsos of the U.S. Food and Drug Administration’s (FDA) Office of Criminal Investigations made the announcement.

 

In addition to imposing a prison sentence, U.S. District Judge James C. Mahan of the District of Nevada ordered defendant Dmitriy V. Melnik, 30, of Las Vegas, remit $200,000 in restitution and forfeit $1.2 million in proceeds derived from the scheme as well as property seized during the investigation. Melnik pleaded guilty before Judge Mahan on Sept. 8, 2016, to one count of conspiracy to traffic in counterfeit goods and to introduce into interstate commerce misbranded devices.

 

According to the plea agreement, Melnik imported large quantities of colored contact lenses from the People’s Republic of China and South Korea that he knew were counterfeit and/or unauthorized by the FDA for sale in the United States. Many of these contact lenses bore labels with counterfeit trademarks for Ciba Vision FreshLook COLORBLENDS, which are manufactured by Novartis International AG (Novartis), and others bore labels of contact lense brands produced and sold in Asia, he admitted.

 

As stipulated in the plea agreement, contact lenses—even decorative ones—are medical devices that if not fitted, worn, or cared for properly can result in serious eye injury including blindness, and must receive prior FDA authorization to enter the U.S. and be further distributed. Melnik admitted, however, that he sold purportedly “authentic” contact lenses to tens of thousands of customers around the United States without a prescription, adequate directions for use or adequate warnings. After purchasing the contact lenses, many customers complained directly to Melnik about the quality of the contact lenses and questioned Melnik about whether the contact lenses were genuine and FDA approved. Melnik admitted that many of the contact lenses that he sold were substandard, and that some were tested and found to be contaminated with a potentially dangerous bacteria.

 

As stated in the plea agreement, a substantial part of the fraudulent scheme was committed from outside the United States, and Melnik received at least $1.2 million in gross revenue from this illegal enterprise, including approximately $200,000 alone from the sale of counterfeit Ciba Vision FreshLook COLORBLENDS.

 

Anyone with information about individuals committing intellectual property offenses can report those crimes to the National Intellectual Property Rights Coordination Center by going to http://www.iprcenter.gov/referral or calling (866) IPR-2060.

 

The prosecution is the result of an ongoing multiagency effort to combat counterfeit, illegally imported and unapproved contact lenses called Operation Double Vision. The FDA’s Office of Criminal Investigations led the investigation, with significant support from the U.S. Postal Inspection Service and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Daniel J. Cowhig of the District of Nevada are prosecuting the case.

 

The indictment is related to the many efforts being undertaken by the department’s Task Force on Intellectual Property, which supports prosecution priorities, promotes innovation through heightened civil enforcement, enhances coordination among federal, state and local law enforcement partners and focuses on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders.

 

# # #

LAS VEGAS, Nev. – United States Attorney Daniel G. Bogden announced today that the U.S. Attorney’s Office for the District of Nevada collected approximately $26,800,380 in criminal, civil and asset forfeiture actions in Fiscal Year (FY) 2016. Of this amount, approximately $­­­­­11,542,574 was collected in criminal actions, approximately $9,507,631 was collected in civil actions, and $5,750,175 was collected in asset forfeiture actions in FY 2016.

The District of Nevada also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $62,234 in cases pursued jointly with these offices.

“Our office is committed to enforcing the recovery of civil and criminal debts owed to the United States and to victims of federal crime. These collections are used to help crime victims and for a variety of law enforcement purposes,” said U.S. Attorney Bogden. “Our work has produced a significant return on investment. Our FY 2016 collections substantially exceeded the total appropriated budget for our office for the year. Since FY 2013, our office has collected a total of approximately $78.2 million in criminal, civil and asset forfeiture actions. I commend our attorneys and especially our staff in the Financial Litigation Unit and Asset Forfeiture Section for their remarkable work in recovering many, many millions in funds for the federal treasury and for victims of federal crime.”

Attorney General Loretta E. Lynch also announced today that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016. The $15,380,130,434 in collections in FY 2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.

“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch.  “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment.  I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”

Below is a summary of a case in which the U.S. Attorney’s Office for the District of Nevada collected a significant amount of money during FY 2016.

In June 2016, Renown Health, a non-profit corporation which operates Renown Regional Medical Center and Renown South Meadows Medical Center in Reno, paid $5.9 million to the Department of Justice to resolve civil allegations of health care fraud to the Medicare system. The civil lawsuit alleged that Renown submitted false claims to the Medicare program for inpatient hospital services from June 1, 2006, through June 30, 2014.

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

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

###

LAS VEGAS, Nev.—The British citizen who was arrested for attempting to seize the firearm of a Las Vegas Metropolitan Police Department officer at a Donald Trump rally in June 2016, was sentenced today to 12 months and one day in prison, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

“The event’s security is a priority for the safety of the speaker, all attendees and law enforcement,” said U.S. Attorney Bogden. “We will continue working together with all our federal, state and local law enforcement partners to ensure the safety of all Nevada citizens and visitors.”

Michael Steven Sandford, 20, of England, was sentenced by U.S. District Judge James C. Mahan. Sandford pleaded guilty on Sept. 13, 2016, to one count of illegal alien in possession of a firearm and one count of impeding and disrupting the orderly conduct of government business and official functions.

On June 17, 2016, Sandford, who was unlawfully in the United States because he had overstayed his tourist visa that expired on Aug. 30, 2015, went to a gun range in Las Vegas and took shooting lessons using a rented Glock 9 millimeter handgun. The following day, on June 18, Sandford entered a political rally event for Donald Trump at the Mystere Theatre in the Treasure Island Casino. The entrance to the event was clearly marked with posters designating the grounds as restricted and under the protection of the U.S. Secret Service. Las Vegas Metropolitan Police Department officers were also present at the rally to assist with security.  Inside the rally, Sandford approached a uniformed Las Vegas Metropolitan Police Department officer and asked to obtain Trump’s autograph. When the officer gave his verbal reply, Sandford, using both hands, grabbed the officer’s Glock 9 millimeter handgun and attempted to pull it from the holster. Sandford was immediately arrested and removed from the rally. Sandford’s conduct was disorderly and disruptive and required the U.S. Secret Service, other law enforcement, and security personnel to respond to the threat posed by Sandford, whose arrest also disrupted the speech given by Trump.

The case was investigated by the U.S. Secret Service and prosecuted by Assistant U.S. Attorney Jared L. Grimmer.

###

RENO, Nev. - A Reno man who was found guilty by a jury for a 2013 bank robbery in south Reno and for killing a customer was sentenced on Monday by U.S. District Judge Miranda M. Du to life in prison on both counts and ordered that the counts run consecutive, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

“The defendant was callous and killed an innocent man who was trying to prevent the bank robbery,” said U.S. Attorney Bogden. “Using a firearm to rob a bank is a serious offense and we will continue to work with our law enforcement partners to ensure violent criminals are brought to justice.”

Van McDuffy, aka Van McDuffie, 69, was indicted on Oct. 20, 2013. He was found guilty on Aug. 17, 2016, of bank robbery with a dangerous weapon resulting in death and use of a firearm during and in relation to a crime of violence causing death.

On Oct. 16, 2013, McDuffy entered a Bank of America and approached a teller demanding money while showing the teller a gun. A customer at the teller being robbed told McDuffy to “get out of here.” McDuffy turned and shot the customer who died at the scene. McDuffy took the money from the first teller and then moved to a second teller. He pointed the gun at the second teller while demanding money before fleeing the bank. An off-duty Reno Police Department officer was in the bank at the time of the robbery and followed McDuffy out of the bank. The off-duty officer was able to apprehend McDuffy across the street from the bank at a bus stop.

The case was a joint investigation by the FBI and the Reno Police Department; and prosecuted by Assistant U.S. Attorney Megan Rachow.

###

A Las Vegas, Nevada woman pleaded guilty today to corruptly endeavoring to obstruct the due administration of the internal revenue laws, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Daniel G. Bogden of the District of Nevada.

According to the plea agreement, from at least 2005 through 2009, Judith Woodward, then known as Judith Atwell, 58, was the 99 percent owner and joint operator of a Las Vegas dry cleaning business, Canyon Gate Cleaners, which she held under an entity named Canyon Enterprises LLC.

Woodward admitted that she filed false 2005 through 2009 U.S. Returns of Partnership Income (Forms 1065), which underreported the gross receipts for Canyon Enterprises LLC.  Woodward concealed the true gross receipts by failing to deposit certain cash receipts into any bank account, and depositing hundreds of thousands of dollars of other cash receipts into personal bank accounts that she controlled.  Woodward provided her return preparer with false information regarding business deductions, and only provided the business bank account records, which omitted the cash receipts.  Woodward used the unreported cash receipts to pay for personal expenses, including vehicles and personal credit card payments. 

Woodward also admitted to filing false 2005 through 2009 U.S. Individual Income Tax Returns (Forms 1040), on which she underreported partnership income received from Canyon Enterprises LLC. 

In 2010, Woodward made false and misleading statements to an Internal Revenue Service (IRS) special agent that all cash business receipts were deposited into the Canyon Enterprises LLC business bank accounts, that she assumed all income from all sources was reported on her filed tax returns, and that the maximum amount of cash she had on hand between 2004 and 2009 was $100,000. Woodward admitted to causing a loss to the IRS of approximately $212,000.

Sentencing is scheduled for March 9, 2017.  Woodward faces a statutory maximum sentence of three years in prison, as well as a period of supervised release, restitution and monetary penalties.

Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Bogden thanked special agents of the IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Christopher S. Strauss and Eric C. Schmale of the Tax Division, who are prosecuting the case.

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

 

LAS VEGAS, Nev. – A Las Vegas woman pleaded guilty today to corruptly endeavoring to obstruct the due administration of the internal revenue laws, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Daniel G. Bogden of the District of Nevada.

According to the plea agreement, from at least 2005 through 2009, Judith Woodward, then known as Judith Atwell, 58, was the 99 percent owner and joint operator of a Las Vegas dry cleaning business, Canyon Gate Cleaners, which she held under an entity named Canyon Enterprises LLC.

Woodward admitted that she filed false 2005 through 2009 U.S. Returns of Partnership Income (Forms 1065), which underreported the gross receipts for Canyon Enterprises LLC.  Woodward concealed the true gross receipts by failing to deposit certain cash receipts into any bank account, and depositing hundreds of thousands of dollars of other cash receipts into personal bank accounts that she controlled.  Woodward provided her return preparer with false information regarding business deductions, and only provided the business bank account records, which omitted the cash receipts.  Woodward used the unreported cash receipts to pay for personal expenses, including vehicles and personal credit card payments. 

Woodward also admitted to filing false 2005 through 2009 U.S. Individual Income Tax Returns (Forms 1040), on which she underreported partnership income received from Canyon Enterprises LLC. 

In 2010, Woodward made false and misleading statements to an Internal Revenue Service (IRS) special agent that all cash business receipts were deposited into the Canyon Enterprises LLC business bank accounts, that she assumed all income from all sources was reported on her filed tax returns, and that the maximum amount of cash she had on hand between 2004 and 2009 was $100,000. Woodward admitted to causing a loss to the IRS of approximately $212,000.

Sentencing is scheduled for March 9, 2017.  Woodward faces a statutory maximum sentence of three years in prison, as well as a period of supervised release, restitution and monetary penalties.

Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Bogden thanked special agents of the IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Christopher S. Strauss and Eric C. Schmale of the Tax Division, who are prosecuting the case.

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

# # #

RENO, Nev. - Balwinder Singh, 42, of Reno, pleaded guilty today to conspiracy to provide material support and resources to terrorists knowing and intending that such support would be used to commit terrorist attacks overseas.

The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Daniel G. Bogden for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division.

“Singh attempted to provide material support and resources to terrorists to create violence and disruption abroad,” said Acting Assistant Attorney General McCord.  “Identifying, thwarting and holding accountable individuals who pursue international terrorism is a top priority of the Department of Justice.”

“Today’s plea is the result of the FBI’s Joint Terrorism Task Force working proactively to disrupt terrorist attacks,” said U.S. Attorney Bogden.  “National security is a top priority for the U.S. Attorney’s Office and we will continue to work with our law enforcement partners to locate, identify, and prosecute those who conspire and attempt to provide material support to terrorists and terrorist activities.”

“This is a strong indicator of the law enforcement community’s commitment to combating terrorism and keeping our nation safe,” said Special Agent in Charge Rouse.

Singh, aka Jhaji, aka Happy, aka Possi, aka Baljit Singh, pleaded guilty before U.S. District Judge Larry R. Hicks to one count of conspiracy to provide material support to terrorists. He has been detained since his arrest on Dec. 17, 2013.  He was charged on Dec. 18, 2013. Singh is a citizen of India and permanent U.S. resident.

According to court filed documents and admissions made in connection with the plea agreement, between September 2013 and Dec. 17, 2013, Singh conspired with others to support terrorist attacks in India as part of a movement to create an independent Sikh state in the Punjab region of India.

Singh communicated with co-conspirators by telephone to discuss these plans and agreed to provide material support by facilitating a co-conspirator’s travel to and within South Asia and providing funding and materials necessary to carry out an overseas attack.

In October 2013, Singh and co-conspirators agreed that one co-conspirator would travel to South Asia in the fall of 2013.  Upon arrival, the co-conspirator would travel to India and commit a terror attack – likely an assassination or maiming of an Indian governmental official. The final target would be determined after the co-conspirator arrived in South Asia.

In November 2013, Singh purchased two sets of night vision goggles. In December 2013, he provided the night vision goggles to a co-conspirator who was going to carry out the planned attack.  On Dec. 9, 2013, the co-conspirator attempted to board a flight from the San Francisco International Airport to Bangkok, Thailand in order to carry out the terror attack with the night vision goggles provided to him by Singh. U.S. law enforcement prevented the co-conspirator from boarding that flight.  As a result, the planned terror attack never occurred.  After these events, Singh and his co-conspirators continued to discuss and plan the terror attack in India until Singh’s arrest.        

At the time of sentencing, under the plea agreement, Singh faces the statutory maximum penalty of 15 years in prison.  The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.  Sentencing has been set for Feb. 27, 2017.

The case is being investigated by the FBI-led Joint Terrorism Task Force in northern Nevada.  The northern Nevada JTTF is comprised of the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Naval Criminal Investigative Service and Nevada Department of Investigation.  In addition, ATF, U.S. Citizenship and Immigration Services and the Washoe County Sheriff’s Office provided assistance in the investigation.

Assistant U.S. Attorneys Sue Fahami, Brian L. Sullivan, Carla Higginbotham, and Trial Attorney Mara M. Kohn of the National Security Division’s Counterterrorism Section are prosecuting the case.

###

Balwinder Singh, 42, of Reno, Nevada, pleaded guilty today to conspiracy to provide material support and resources to terrorists knowing and intending that such support would be used to commit terrorist attacks overseas.

The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Daniel G. Bogden for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division.

“Singh attempted to provide material support and resources to terrorists to create violence and disruption abroad,” said Acting Assistant Attorney General McCord.  “Identifying, thwarting and holding accountable individuals who pursue international terrorism is a top priority of the Department of Justice.”

“Today’s plea is the result of the FBI’s Joint Terrorism Task Force working proactively to disrupt terrorist attacks,” said U.S. Attorney Bogden.  “National security is a top priority for the U.S. Attorney’s Office and we will continue to work with our law enforcement partners to locate, identify, and prosecute those who conspire and attempt to provide material support to terrorists and terrorist activities.”

“This is a strong indicator of the law enforcement community’s commitment to combating terrorism and keeping our nation safe,” said Special Agent in Charge Rouse.

Singh, aka Jhaji, aka Happy, aka Possi, aka Baljit Singh, pleaded guilty before U.S. District Judge Larry R. Hicks to one count of conspiracy to provide material support to terrorists. He has been detained since his arrest on Dec. 17, 2013.  He was charged on Dec. 18, 2013. Singh is a citizen of India and permanent U.S. resident.

According to court filed documents and admissions made in connection with the plea agreement, between September 2013 and Dec. 17, 2013, Singh conspired with others to support terrorist attacks in India as part of a movement to create an independent Sikh state in the Punjab region of India.

Singh communicated with co-conspirators by telephone to discuss these plans and agreed to provide material support by facilitating a co-conspirator’s travel to and within South Asia and providing funding and materials necessary to carry out an overseas attack. 

In October 2013, Singh and co-conspirators agreed that one co-conspirator would travel to South Asia in the fall of 2013.  Upon arrival, the co-conspirator would travel to India and commit a terror attack – likely an assassination or maiming of an Indian governmental official. The final target would be determined after the co-conspirator arrived in South Asia.

In November 2013, Singh purchased two sets of night vision goggles. In December 2013, he provided the night vision goggles to a co-conspirator who was going to carry out the planned attack.  On Dec. 9, 2013, the co-conspirator attempted to board a flight from the San Francisco International Airport to Bangkok, Thailand in order to carry out the terror attack with the night vision goggles provided to him by Singh. U.S. law enforcement prevented the co-conspirator from boarding that flight.  As a result, the planned terror attack never occurred.  After these events, Singh and his co-conspirators continued to discuss and plan the terror attack in India until Singh’s arrest.
         
At the time of sentencing, under the plea agreement, Singh faces the statutory maximum penalty of 15 years in prison.  The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.  Sentencing has been set for Feb. 27, 2017.
         
The case is being investigated by the FBI-led Joint Terrorism Task Force in northern Nevada.  The northern Nevada JTTF is comprised of the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Naval Criminal Investigative Service and Nevada Department of Investigation.  In addition, ATF, U.S. Citizenship and Immigration Services and the Washoe County Sheriff’s Office provided assistance in the investigation. 

Assistant U.S. Attorneys Sue Fahami, Brian L. Sullivan, Carla Higginbotham, and Trial Attorney Mara M. Kohn of the National Security Division’s Counterterrorism Section are prosecuting the case.

RENO, Nev.—A man was convicted on Wednesday for threatening to take the life of the President of the United States, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

“Threatening to take the life of the nation’s Commander in Chief will be taken seriously and investigated and prosecuted to the fullest extent of the law,” said U.S. Attorney Bogden.

Steven Eugene Ford, aka Job Ford, aka Eleazar Melchizedek, 50, was found guilty of making a threat to take the life of the President of the United States. Ford was charged by a grand jury on March 9, 2016. United States District Judge Howard D. McKibben presided over the jury trial.

According to court documents, on or about March 1, 2016, Ford told a White House telephone operator that “I’m going to kill that president. I hate him.” During an interview, Ford admitted to making the threats.

Sentencing is scheduled for Feb. 7, 2017. Ford faces the statutory penalty of five years in prison and a $250,000 fine.

The case was investigated by the U.S. Secret Service, and prosecuted by Assistant U.S. Attorney Brian L. Sullivan.

###

LAS VEGAS, Nev.—A former Las Vegas illusionist pleaded guilty today before U.S. District Chief Judge Gloria M. Navarro to possession, receipt, and distribution of child pornography, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

“The risk to our children from sexual predators is constant and continuing,” said U.S. Attorney Bogden. “We will continue to aggressively investigate and prosecute these disturbing cases and dangerous defendants as part of our implementation of the Project Safe Childhood initiative throughout Nevada.  The Court may consider any counts dismissed under the Plea Agreement and all other relevant conduct, whether charged or uncharged, in determining the appropriate sentence to be imposed in this case.”

Jan Rouven Fuechtener, aka Lars Schmidt, 39, a citizen of Germany, was indicted on March 30, 2016. Sentencing has been scheduled for March 16, 2017, before Chief Judge Navarro.

According to court documents and admissions made in court, on August 2015, a Task Force Officer from the FBI Buffalo Field Office Child Exploitation Task Force in New York, operating in an undercover capacity, was accepted as a friend by user name “Lars45” on GigaTribe, a peer-to-peer file sharing program. On Sept.14, 2015, the officer used the password previously supplied by Lars45 and was able to access and browse Lars45’s shared directories. The officer downloaded numerous files after observing file titles indicative of child pornography. On Jan. 21, 2016, during the execution of a search warrant at the defendant's residence in Las Vegas, law enforcement seized 38 devices throughout the residence. A forensic examination of the seized devices revealed that there were over 9,000 videos depicting children engaging in sexually explicit conduct. Fuechtener admitted that the Lars45 GigaTribe account belonged to him.

Fuechtener further admitted to using the Skype username “larusa22” to engage in chats to offer to distribute child pornography by sharing his GigaTribe Lars45 folder in exchange for a thing of value. Skype user account larusa22 is associated with an email address belonging to Fuechtener.

At the time of sentencing, Fuechtener will face a statutory maximum penalty of 20 years in prison for each count and a five year minimum mandatory on two counts.

The case was investigated by the FBI, and prosecuted by Assistant U.S. Attorneys Elham Roohani and Lisa C. Cartier-Giroux.

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 (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.

###

Las Vegas, Nev. - A Las Vegas, Nevada resident was charged by a superseding indictment today in the District of Nevada for attempted tax evasion announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Daniel G. Bogden for the District of Nevada.

 

According to the superseding indictment, Maria Larkin aka Maria Bella-Larkin, owned and operated Five Star Home Health Care Inc. (FSHHC) from 1996 through 2009 and was responsible for collecting, accounting for, and paying over income, social security, and Medicare tax withheld from employees’ wages. The tax withheld is referred to as “trust fund tax” because the employer holds those funds in trust until the amounts are paid over to the Internal Revenue Service (IRS) on behalf of the employee. If a responsible person willfully fails to pay over trust fund taxes, the IRS may impose a penalty equal to the amount of the trust fund taxes on the responsible person. This penalty is known as the trust fund recovery penalty. 

 

The superseding indictment alleges that from 2004 through 2009, FSHHC failed to pay over the tax withheld from its employees’ wages and, as a result, the IRS assessed trust fund recovery penalties against Larkin equal to the amount withheld and not paid over.

 

According to the superseding indictment, Larkin willfully attempted to evade and defeat the payment of the trust fund recovery penalties assessed against her by concealing and attempting to conceal from the IRS her access to personal funds and assets. Specifically, the superseding indictment alleges that Larkin purchased a home in the name of a nominee, engaged in currency transactions with financial institutions in amounts less than $10,000 to prevent the filing of currency transaction reports, changed the name of her business and placed the business in the name of a nominee, and provided false information to the IRS regarding her ability to pay the trust fund recovery penalties. 

 

An indictment merely alleges that crimes have been committed. Defendants are presumed innocent until proven guilty beyond a reasonable doubt.

 

If convicted, Larkin faces a statutory maximum sentence of five years in prison, a period of supervised release, restitution, and monetary penalties.

 

Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Bogden commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney John Mulcahy of the Tax Division, and Assistant U.S. Attorneys Cristina Silva and Alexandra Michael, who are prosecuting the case.

 

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

                                   

# # #

LAS VEGAS, Nev. – An employee responsible for handling mail being loaded on airlines at McCarran International Airport was sentenced today by U.S. District Chief Judge Gloria M. Navarro to 30 months of probation for his guilty plea of stealing mail containing cash or gift cards, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

“The defendant abused his position and stole over 200 mail items in search of cash or gift cards for his personal use,” said U.S. Attorney Bogden. “Mail theft is a serious crime. Protecting our mail system’s integrity is important for businesses and social communication. We will continue to work with the U.S. Postal Inspection Service to ensure criminals are investigated and prosecuted to the fullest extent that the law allows.”

Martin Sagaga Lio Jr., 27, of Las Vegas, pleaded guilty on May 9, 2016, to one count of mail theft. He was indicted on March 1, 2016.

According to court records, between Dec. 6, 2015 and Feb. 25, 2016, Lio was employed by Swissport, the contracted company authorized to handle mail being loaded on airlines at McCarran International Airport. During this time, Lio admitted that he stole mail from mail trays which were being loaded in the cargo areas of various aircraft. He searched the mail for gift card sized envelopes which he would conceal in his clothing and take to various employee restrooms within the airport. After searching for and removing cash or gift cards, Lio would discard the opened mail in the restroom trash cans. A total of 248 mail items which Lio stole and threw away were recovered from employee restroom trash cans.

The case was investigated by the U.S. Postal Inspection Service, and prosecuted by Assistant U.S. Attorney Jared L. Grimmer.

If you believe your mail was stolen, call the U.S. Postal Inspection Service at 1-877-876-2455 and press 3. To file a mail theft complaint, visit https://postalinspectors.uspis.gov/ or call 1-800-275-8777.

###

LAS VEGAS, Nev. –A Henderson, Nev., man was convicted Tuesday of coercion and enticement of a minor to engage in illegal sexual activity, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

Following a two-day jury trial, Kenneth Gordon Wescott, 54, was convicted of one count of coercion and enticement of a minor. He was indicted by a grand jury on March 11, 2014. United States District Judge Andrew P. Gordon presided over the jury trial. A sentencing date has been scheduled for Feb. 16, 2017.

“The defendant engaged in sexually explicit communications and grooming behavior with someone whom he believed to be a 13-year-old girl. Fortunately, he was communicating with an undercover officer,” said U.S. Attorney Bogden. “We will continue to work with our law enforcement partners to protect children from sexual predators.”

According to court records and evidence presented at trial, on or about Dec. 12, 2013 and Jan. 4, 2014, Wescott engaged in a series of emails and text messages with someone whom he believed to be a 13-year-old girl. Wescott posted a provocative ad on mymojovillage.com. An undercover officer with the Henderson Police Department posed as an underage girl and responded to Westcott’s ad. Westcott used the email exchanges to build a relationship with the girl and continued to engage in sexually explicit language. Wescott asked for a face to face meeting with the girl and was arrested at the meeting place.

The case was investigated by the FBI and the Henderson Police Department. The case was prosecuted by Assistant U.S. Attorneys Kilby C. Macfadden and Cristina D. Silva.

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 (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.

###

RENO, Nev. – A Reno man has been sentenced to five years in prison, lifetime supervised release, and ordered to pay $1,500 in restitution for his guilty plea to receiving child pornography, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

“Today’s sentencing is an example of proven partnerships among a service provider, a nonprofit organization, and law enforcement,” said U.S. Attorney Bogden. “The defendant abused the use of free public internet connections to commit these heinous crimes against the most vulnerable in our communities. We will continue to use all available resources to identify individuals who commit crimes against our children.”

Phillip Bradley Sanderson, 26, was sentenced on Monday, Nov. 7, by U.S. District Judge Miranda M. Du. Sanderson pleaded guilty on May 16, 2016, to one count of receipt of child pornography. He was indicted by a grand jury on May 6, 2015.

According to court records, in August 2014, the National Center for Missing and Exploited Children (NCMEC) received a cybertip from Google, Inc., which reported that one of its users was emailing images of suspected child pornography. NCMEC referred the matter to law enforcement, and the images were confirmed to depict child pornography and Sanderson was identified as the email user. On March 3, 2015, Nevada Internet Crimes Against Children Task Force agents and officers executed a search warrant at Sanderson’s residence. A forensic examination of seven digital devices found at the residence revealed approximately 32 images on Sanderson’s laptop and cellular phone of infants and children engaged in sexually explicit conduct, and information that Sanderson had used specific search terms to locate and receive child pornography. During an interview, Sanderson admitted to searching for and downloading child pornography files on the internet using free WI-FI at the Washoe County Public Library and a local casino. He also admitted that he emailed child pornography files to himself so he could save the files on his other electronic devices, and that he had been searching for and downloading child pornography for many years.

The case was investigated by the FBI, and prosecuted by Assistant U.S. Attorney Shannon Bryant.

The NCMEC’s CyberTipline provides the public and electronic service providers with the ability to report suspected child sexual exploitation. More than 12.7 million reports of suspected child sexual exploitation have been made to the CyberTipline between 1998 and June 2016. The public and electronic service providers are encouraged to report information at www.cybertipline.com or by calling the 24-hour hotline at 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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.

###

LAS VEGAS, Nev. – United States Attorney Daniel G. Bogden announced that Assistant United States Attorney (AUSA) Carla Higginbotham is leading the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for today’s general elections.  AUSA Higginbotham has been appointed to serve as the District Election Officer (DEO) for the District of Nevada, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.

“Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud,” stated U.S. Attorney Bogden. “The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”

The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur.  The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.

Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them.  For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law.  Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.

Today there will be command posts in Reno and Las Vegas staffed by members of the Nevada Election Integrity Task Force, which includes the FBI, Nevada Secretary of State’s Office and U.S. Attorney’s Office.  They will assist with the investigation of any complaints of election fraud or voting rights abuses, and will ensure that such complaints are directed to the appropriate authorities. 

Complaints may be filed by a number of ways:

1. By completing the Election Law Violation Form on the Nevada Secretary of State’s website: http://nvsos.gov/sos/elections/election-information/resources/report-potential-election-law-violation;
2. By calling the NV Secretary of State at (775) 684-5718;
3. By calling the FBI in Las Vegas at (702) 385-1281 and asking for FBI Special Agent Michael B. Elliott.
4. Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington by telephone at (800) 253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to voting.section@usdoj.gov, or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php
5. By contacting our United States Attorney’s Office Points of Contact.  In southern Nevada, AUSA Nick Dickinson can be reached at (702) 388-6336.  In northern Nevada, AUSA Carla Higginbotham can be reached by contacting (775) 784-5438.

 

We are pleased to again be a part of this most important effort to ensure the 2016 election is administered fairly. The franchise is the cornerstone of American democracy.  We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. 

###

LAS VEGAS, Nev. – A Las Vegas man was sentenced today by U.S. District Judge James C. Mahan to serve 70 months in prison and a lifetime of supervised release following his guilty plea for receiving child pornography, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

“The sexual abuse of young victims is deplorable and they are re-victimized each time an image or video file is shared. We are committed to protecting the most vulnerable in our communities,” said U.S. Attorney Bogden. “The defendant is required under the Sex Offender Registration and Notification Act (SORNA) to register as a sex offender and to keep his registration current where he resides, is an employee or a student.”

Shane Richard Gordon, 36, pleaded guilty on Aug. 5, 2016, to one count of receiving child pornography.

According to court records, on June 1, 2014, a Special Agent for the U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE-HSI) launched a file sharing program that permitted access to the BitTorrent peer-to-peer network and identified a computer offering files known to be associated with child pornography images and videos for sharing purposes. The ICE-HSI Special Agent downloaded 50 image files and one video file containing child pornography. On July 31, 2014, law enforcement executed a search warrant on Gordon’s residence. Forensic evaluation of the seized digital items revealed child pornography. During an interview, Gordon admitted to downloading and receiving child pornography.

The case was investigated by ICE-HSI, and prosecuted by Assistant U.S. Attorneys Lisa Cartier-Giroux and Elham Roohani.

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 (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.

###

LAS VEGAS, Nev. – A Las Vegas man who pleaded guilty to robbing six convenience stores in the Las Vegas area during November and December 2015, was sentenced today to 25 years in prison and five years of supervised release, announced U.S. Attorney Daniel G. Bogden for the District of Nevada. 

Paul Daniel Loisel, 24, was sentenced this afternoon by U.S. District Judge Andrew P. Gordon. Loisel pleaded guilty on Aug. 10 to five counts of interference with commerce by robbery and one count of discharge of a firearm during and in relation to a crime of violence. 

“It is simply unacceptable for persons to think they can walk into a convenience store and threaten the employees and customers with a gun in order to obtain what typically is a very small amount of cash,” said U.S. Attorney Bogden. “We will continue to assist our local authorities in their efforts to deter and end this type of violent crime by prosecuting these cases using federal laws with lengthy, mandatory penalties.”  

According to the plea agreement, between Nov. 22 and Dec. 16, 2015, Loisel used a handgun to rob six convenience stores in Las Vegas.  In most of the robberies, Loisel entered the stores with a .45 caliber handgun in his hand and pointed it at employees and told them he wanted to make a withdrawal or to put all the money in his bag.  In one of the robberies, the defendant attempted to open the cash registers himself because the cashier was outside with her boyfriend.  The boyfriend observed that the defendant was attempting to rob the business and when the defendant left the store, the boyfriend pointed a shotgun at the defendant and the defendant shot the boyfriend in the chest, critically wounding him.

Over the last five years, 106 persons have been charged federally with using firearms to commit commercial robberies in southern Nevada.  Following are links to the news releases for some of those cases.

https://www.justice.gov/usao-nv/pr/las-vegas-cinched-hoodie-robber-sentenced-life-prison

https://www.justice.gov/usao-nv/pr/femal-getaway-driver-convicted-robberies-13-banks-and-stores-las-vegas-area-during-2012

https://www.justice.gov/usao-nv/pr/man-sentenced-over-14-years-prison-six-armed-robberies

https://www.justice.gov/usao-nv/pr/men-sentenced-prison-kidnapping-conspiracy-and-thefts-delivery-drivers-and-warehouses

https://www.justice.gov/usao-nv/pr/last-30-minutes-or-less-robbers-gets-16-years-prison

https://www.justice.gov/usao-nv/pr/man-sentenced-over-11-years-federal-prison-robbing-local-jewelry-store-stolen-handgun

https://www.justice.gov/usao-nv/pr/man-who-robbed-las-vegas-mini-mart-convicted-jury

This case was investigated by the FBI, Las Vegas Metropolitan Police Department, and North Las Vegas Police Department as part of the Safe Streets Task Force and Project Safe Neighborhoods program. 

The case was prosecuted by Assistant U.S. Attorney Phillip N. Smith, Jr.

###