District of Nevada

LAS VEGAS, Nev. – Several Reno companies that operate geothermal power plants in Nevada, California, Hawaii and elsewhere, have agreed to pay the United States $5.5 million to resolve civil fraud allegations that they unlawfully applied for and received millions in federal clean energy grants, announced U.S. Attorney Daniel G. Bogden for the District of Nevada. 

Ormat Technologies, Inc., Ormat Nevada, Inc., Puna Geothermal Venture II, L.P., ORNI 18, LLC, and Puna Geothermal Venture, G.P. (hereinafter referred to as Ormat), and the United States entered into the agreement to avoid the delay and uncertainty and expense of protracted litigation.  The agreement states that it is neither an admission of liability by the defendants nor a concession by the United States that its claims are not well founded. 

“The False Claims Act is an effective civil tool to ferret out fraud in federal taxpayer-funded programs,” said U.S. Attorney Bogden.  “The settlement monies announced today will be deposited into a federal fund used to help crime victims and for a variety of other law enforcement purposes.”

The settlement agreement, effective this week, arises out of a civil lawsuit filed on Feb. 4, 2013 by Tina Calilung and Jamie Kell against Ormat alleging that they violated the civil False Claims Act by submitting false applications for federal clean energy grants to which they were not entitled. The defendant companies are based in Reno, Nev. Calilung and Kell are former employees of Ormat Technologies.

The lawsuit alleged that the federal government had claims against the defendant arising from the submission of applications for and receipt of grants under the American Recovery and Reinvestment Tax Act of 2009, related to the 8MW Puna Geothermal Power Plant and Puna KS-14 Well, both on the island of Hawaii, and the North Brawley Geothermal Power Plant in Imperial County, Calif.

Since January 2009 and through the end of federal fiscal year 2015, the Justice Department has recovered a total of more than $26.4 billion from cases involving fraud and false claims against the government. The False Claims Act is the government’s primary civil remedy to redress false claims for government funds and property under government contracts, including national security and defense contracts, as well as under government programs as varied as Medicare, veterans’ benefits, federally insured loans and mortgages, highway funds, research grants, agricultural supports, school lunches, and disaster assistance.  In 1986, Congress strengthened the Act by amending it to increase incentives for whistleblowers to file lawsuits on behalf of the government.

Most false claims actions are filed under the Act’s whistleblower, or qui tam, provisions that allow individuals to file lawsuits alleging false claims on behalf of the government.  If the government prevails in the action, the whistleblower, also known as the relator, receives up to 30 percent of the recovery.  Whistleblowers filed 638 qui tam suits in fiscal year 2015 and the department recovered $2.8 billion in these and earlier filed suits this past year.  Whistleblower awards during the same period totaled $597 million.  https://www.justice.gov/opa/pr/justice-department-recovers-over-35-billion-false-claims-act-cases-fiscal-year-2015.

Assistant United States Attorney Roger Wenthe handled the case on behalf of the U.S. Attorney’s Office for the District of Nevada.

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RENO, Nev.– An owner of several Reno, Nevada landscaping and rock hauling businesses was sentenced yesterday to 10 months in prison for failure to pay over employment taxes, 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.  The bookkeeper for the business was sentenced to five years’ probation with three months home confinement for willful failure to file an employment tax return.

 

"The willful failure to comply with employment tax obligations is a crime – plain and simple,” said Principal Deputy Assistant Attorney General Ciraolo.  “Stealing employee withholdings and failing to pay them over to the U.S. Treasury, gives dishonest employers an unfair advantage over their law-abiding competitors.  The department will continue to work with the Internal Revenue Service (IRS) to prosecute these offenders and level the playing field.”

 

“Defendants’ illegal conduct injured not only the United States, but their former employees,” said U.S. Attorney Bogden.  “While the United States of America will foot the bill for the employment and social security taxes that were withheld from the employees’ paychecks, the employees themselves will have any retirement diminished due to the non-reporting of cash wages.”

 

“Employers have a responsibility to their employees to withhold the proper amount of taxes and pay those taxes over to the IRS,” said Special Agent in Charge Tara Sullivan of IRS Criminal Investigation, Las Vegas Field Office.  “When employers fail to do so, it affects revenue to the U.S. government, but more importantly, it affects their employees Medicare and social security benefits.”

 

According to documents filed with the court, Kyle Archie of Reno, was the part owner of Reno Rock Inc., GKPA Inc. and D Rockeries Inc.  Kyle Archie admitted that he was responsible for the day-to-day operations of the businesses and that from 2003 through 2009;  he had a legal duty to collect, truthfully account for, and pay over employment taxes to the IRS.  He further admitted that although he collected these taxes from his employees’ wages and held them in trust, he failed to pay them over to the IRS for the third quarter of 2008.     

 

Linda Archie of Reno, who is Kyle Archie’s mother, worked as the bookkeeper for Reno Rock Inc., GKPA Inc. and D. Rockeries Inc. and was responsible for maintaining the books and records of the companies and filing documents with various government agencies.  She admitted that between 2003 and 2009, she failed to file employment tax returns on behalf of these businesses to account for the taxes that were withheld from the employees’ wages.

 

In addition to the prison term imposed, Kyle Archie was also ordered to serve ­three years of supervised release, and both Kyle and Linda Archie were ordered to pay restitution to the IRS in the amount of $1,235,528.

 

Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Bogden commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Carla B. Higginbotham of the District of Nevada and Trial Attorney Kathleen M. Barry of the Tax Division, who prosecuted the case.

 

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

 

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LAS VEGAS, Nev. – United States Attorney Daniel G. Bogden announced today that Assistant United States Attorney (AUSA) Carla Higginbotham will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, 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.

On Election Day, Nov. 8, 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 man who operated tax preparation businesses in Nevada and Utah from 2004 to 2010, has been sentenced to 18 months in prison, three years of supervised release, and ordered to pay approximately $182,000 in restitution, for aiding and assisting in the preparation of multiple fraudulent individual income tax returns, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

“Unfortunately, there are persons with expertise in accounting and tax preparation who take advantage of less skilled or less educated persons who are trying to follow the law,” said U.S. Attorney Bogden. “We are continually working with the IRS to identify, investigate and prosecute these persons and to ensure that their businesses are shut down or cleaned up.”

Roger Linares, 43, was sentenced by U.S. District Judge James C. Mahan. Linares pleaded guilty in July to one count of conspiracy to defraud the United States. Linares must report to federal prison by Jan. 13, 2017.

Another defendant charged in the scheme, Sergio Acosta, also pleaded guilty to one count of conspiracy to defraud the United States and was sentenced on Sept. 13 to five years of probation, six months of home confinement, and ordered to pay approximately $182,000 in restitution.

According to the guilty plea agreement, in October 2004, Linares and his wife opened a tax preparation business named America Services. By 2010, the business had 11 locations, including seven in Las Vegas, one in Mesquite, two in Salt Lake City, and one in St. George. They registered the business in Linares’ wife’s name because Linares did not become a U.S. citizen until approximately 2009.  Linares actively participated in running the day-to-day operations of the business from 2004 to early 2010. The business established a large clientele consisting mostly of Hispanic individuals who spoke little or no English and possessed little tax knowledge. Those clients entrusted Linares and other employees at the business to accurately prepare their federal income tax returns.  Linares aided and assisted in the preparation of at least 18 false individual income tax returns, but without the clients’ knowledge that the returns included false information that generated large refunds for the clients. Linares benefited from the large volume of customers because he was part-owner of the business and received a substantial portion of the proceeds. Other employees were paid commissions and the more returns they prepared, the more money they earned. The business was identified as having a 98 percent refund rate and substantial unreimbursed employee business expenses and questionable dependents.  The total tax loss to the government for the 2008 and 2009 tax returns prepared by the defendants was $181,818. 

The case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Lisa Cartier-Giroux.

LAS VEGAS, Nev. – Following a seven-day trial, a federal jury convicted a Las Vegas man on Oct. 12 of 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 for the District of Nevada. 

Louis Matthews, 35, was convicted by the jury 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.

“We are working diligently with our local police departments to help prosecute and convict the criminals who are committing violent crime in Las Vegas,” said U.S. Attorney Bogden.  “We will identify those violent criminals who prey on others and ensure that justice is served.”  

Matthews faces up to 10 years in prison on the conspiracy charge, and up to life in prison on the firearm charge.  He is scheduled to be sentenced by U.S. District Judge James C. Mahan on Jan. 12, 2017.

Three co-defendants were also charged in the scheme.  John Thomas, 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 is awaiting sentencing.  Angel Juarez, 29, of North Las Vegas, is awaiting trial. 

According to the court records and information submitted to the jury, on Nov. 30, 2013, at about 7:00 p.m., defendants Matthews and Thomas 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 the two other co-defendants, Nunez and 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.            

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.

LAS VEGAS, Nev. – Daniel G. Bogden, United States Attorney for Nevada, is pleased to announce that the U.S. Department of Justice recently announced grant awards of over $22 million to the State of Nevada to provide financial assistance and services to federal and state victims of crime during federal fiscal year 2016.

On Sept. 8, the Nevada Department of Health and Human Services was awarded $19,981,431 in victim assistance funds, and on Aug. 22, the Nevada Department of Administration was awarded $2,049,000 in victim compensation funds. The awards were made from the Crime Victims Fund, which is supported primarily by fines paid by federal criminal offenders – not taxpayers. The fines are collected by United States Attorney’s Offices, the United States Courts, and the Federal Bureau of Prisons, and over 90 percent of Fund deposits are distributed annually by the Department of Justice to states and territories to support state victim compensation and victim assistance programs. Any remaining funds are used for training and technical assistance, national demonstration projects and to improve handling of child abuse cases in Indian communities.  In addition, these funds support victim witness coordinator and advocate positions for U.S. Attorney Offices, victim specialist positions in the FBI and a federal victim notification system. 

“This is the highest amount of funding ever provided to the State of Nevada to directly help victims of crimes and programs that support them,” said U.S. Attorney Bogden. “The United States Attorney’s Office is pleased to support both the collection efforts for the Crime Victims Fund, which provides these program dollars, and the allocation of these resources to help Nevada’s crime victims.”

The crime victim assistance funds will be competitively awarded by the State of Nevada to local community-based organizations that provide direct services to crime victims. Funding is provided to domestic violence shelters, rape crisis centers, child abuse victims’ programs and other initiatives that provide counseling, advocacy or emergency transportation to victims.  Nevada can also use these funds for sexual assault programs or victim service units in law enforcement agencies, prosecutors’ offices and social service agencies.

The crime victim compensation funds work similarly to private insurance, providing reimbursement to, or on behalf of, crime victims for expenses such as medical costs, mental health counseling, funeral and burial costs, and lost wages, as a result of being a crime victim.

More information on Nevada’s victim compensation and victim assistance efforts is available from the State of Nevada Department of Administration Victims of Crimes Program at (702) 486-2740 in southern Nevada or (775) 688-2900 in northern Nevada, or the State of Nevada Department of Health and Human Services, at (775) 684-7946.  Questions may also be directed to OJP’s Office of Communications at (202) 307-0703. 

LAS VEGAS, Nev. – A former Nevada realtor who owned at least 12 rental properties in Nevada and Texas and filed multiple bankruptcy petitions to avoid paying the mortgages, has been sentenced to 11 months in prison, two years of supervised release, and ordered to pay a fine of $10,000 and restitution of $83,000, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

Barbara Jean Dennis, 60, of Las Vegas, was sentenced on Tuesday, Sept. 20, by U.S. District Judge Kent J. Dawson. Judge Dawson also entered an order restricting Dennis from engaging in real estate business during the period she is on supervised release.

“As this case demonstrates, the fallout from the housing crisis in Nevada is still impacting federal investigations and prosecutions,” said U.S. Attorney Bogden.  “The prosecution of these cases typically takes years and requires a significant amount of resources. This sophisticated fraud scheme involved mortgage fraud, bankruptcy fraud, 12 properties in two states, and five bankruptcy petitions.”

Dennis pleaded guilty in February to bankruptcy fraud, admitting that she used the automatic stay provision in bankruptcy proceedings to avoid paying the mortgages, while at the same time, collecting rent from her tenants.  Dennis filed three bankruptcy petitions in the District of Nevada and two in the Southern District of Texas between August 2009 and November 2010. The filing of the bankruptcy petitions caused the bankruptcy court to issue an automatic stay, which prevented the mortgage lenders from filing foreclosure proceedings on her properties during the pendency of the bankruptcy proceedings. Dennis also delayed the bankruptcy cases by failing to appear at hearings and meetings, failing to submit supporting financial documents and other paperwork to the Court, and failing to disclose prior bankruptcy cases. In one case, Dennis filed the bankruptcy petition under a false name and failed to disclose the other petitions and the names under which they had been filed. Over the course of the fraud scheme, from Aug. 31, 2009, through Dec. 17, 2010, Dennis received at least $150,000, but not more than $250,000 in rental income. 

The case was prosecuted by Assistant U.S. Attorney Kathryn C. Newman and investigated by the FBI.

This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force.  President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.  The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.  For more information about the task force visit: www.stopfraud.com.

LAS VEGAS, Nev. – The British man who seized the firearm of a Las Vegas Metropolitan Police Department officer at a Donald Trump rally in June, pleaded guilty today to two felony charges and will be sentenced in December, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

“It is fortunate that no one was harmed in this incident,” said U.S. Attorney Bogden.  “The Las Vegas Metropolitan Police Department officer’s attentiveness and quick action prevented the escalation of this crime. The result was that no one was injured.”

Michael Steven Sandford, 20, of England, pleaded guilty before U.S. District Judge James C. Mahan 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.  The maximum penalty for each count is 10 years in prison and a $250,000 fine.  Sentencing is scheduled for Dec. 13, 2016, at 10 a.m.

According to the plea agreement and other court records, on June 17, 2016, Sandford, who is a British citizen and 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, seized 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.  Sandford’s arrest also disrupted the speech given by Trump.           

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

RENO, Nev. – A Reno man who kidnapped a teenage boy and girl in Sacramento, Calif., in July 2012, and repeatedly raped the girl in both Sacramento and later in Reno, was sentenced today to 40 years in prison and lifetime supervised release, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

John Thomas Abrams, aka Buck, aka David George Garnett, aka John McDonald, aka David Blackwell, 50, was sentenced by U.S. District Judge Miranda M. Du.  Abrams was convicted by a jury in February of two counts of kidnapping and one count of transportation of a minor for illegal sexual activity. There is no parole in the federal system. 

“We have dedicated more resources than ever to catching and prosecuting these predators,” said U.S. Attorney Bogden. “We are working with local, state and federal partners in Nevada and other states to make sure they face the criminal justice system.”

Between about July 12 and July 22, 2012, Abrams kidnapped the 15-year-old girl and boy in the Sacramento area, and held them. While in Sacramento, Abrams repeatedly sexually assaulted the girl. After several days in Sacramento, Abrams then transported them to Reno with the intent that the girl engage in illegal sexual activity, where he again raped the girl before they were able to escape.

The investigation was conducted by the FBI in Sacramento and Reno and the Sacramento Police Department. The case was prosecuted by Assistant United States Attorneys Carla Higginbotham and Sue Fahami.

The case was brought as part of Project Safe Childhood (PSC), 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 Child Exploitation and Obscenity Section, PSC marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.  For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

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The owner and operator of Candy Color Lenses, a major online retailer of colored contact lenses in the United States, pleaded guilty yesterday to 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. 

Assistant Attorney General Leslie R. Caldwell 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.

Dmitriy V. Melnik, of Las Vegas, pleaded guilty before U.S. District Judge James C. Mahan of the District of Nevada  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, and others had labels of brands of contact lenses produced and sold in Asia, he admitted.

As noted in the plea agreement, all contact lenses are medical devices that must receive FDA authorization to enter the United States and be further distributed.  Melnik sold “authentic” contact lenses to tens of thousands of customers around the United States without a prescription, adequate directions for use and 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, according to the plea agreement.  Melnik admitted that some of the contact lenses he sold were tested and found to be contaminated with potentially hazardous 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. – One of the members of a penny stock fraud conspiracy that defrauded investors of over $35 million, has pleaded guilty to felony securities fraud charges, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

Jeffrey Turino, 60, pleaded guilty on Monday, Aug. 22, to one count of conspiracy to commit securities fraud. He faces up to 25 years in prison and a fine of up to $250,000, and is scheduled to be sentenced on Nov. 28, at 11 a.m. by U.S. District Judge Jennifer A. Dorsey. Turino, who is currently in custody, has requested to be released pending sentencing, and a hearing on the matter is scheduled for this afternoon at 2:30 p.m.

According to the plea agreement, beginning in about 1997 and 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. Turino and the other 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.  Turino and other members of the conspiracy 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.

Ten co-conspirators were originally charged in the case. Four are scheduled for trial beginning Nov. 15.  Two pleaded guilty and are awaiting sentencing, one is a fugitive, and two more are deceased.

LAS VEGAS, Nev. – Two of the 19 defendants charged in the Nevada criminal case involving the armed standoff over Cliven Bundy’s trespassing cattle, pleaded guilty today to felony charges before Chief U.S. District Judge Gloria M. Navarro, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

“Federal law enforcement officers must be able to engage in their official duties, including executing federal court orders, without fear of assault or losing their lives,” said U.S. Attorney Bogden. “Persons who impede and interfere with the official duties of these law enforcement officers will be prosecuted to the full extent of the law.”

Gerald A. DeLemus, 61, of Rochester, N.H., pleaded guilty to one count of conspiracy to commit an offense against the United States and one count of interstate travel in aid of extortion.  

Blaine Cooper, 36, of Humboldt, Ariz., pleaded guilty to one count of conspiracy to commit an offense against the United States and one count of assault on a federal officer. 

Both defendants are scheduled to be sentenced on Dec. 1. DeLemus faces up to five years in prison on the conspiracy count, up to 20 years in prison on the extortion count, and fines of up to $250,000 on each count. Cooper faces up to five years in prison on the conspiracy count, up to 20 years in prison on the assault count, and fines of up to $250,000 on each count.

DeLemus and Cooper are the first of 19 defendants charged in the case to plead guilty.  The remaining 17 defendants, including Cliven D. Bundy, Ryan C. Bundy, and Ammon E. Bundy, are scheduled for trial beginning in February 2017.

Beginning on about March 28, 2014, federal law enforcement officers from the U.S. Bureau of Land Management (BLM) and the National Park Service (NPS) were attempting to execute federal court orders authorizing them to remove and impound Cliven Bundy’s cattle that were trespassing on federal public lands in and around Bunkerville, Nev. Bundy had trespassed on the public lands for over 20 years, refusing to obtain the legally-required permits or pay the required fees to keep and graze his cattle on the land. In an effort to prevent the federal law enforcement officers from removing the cattle, the defendants are alleged to have recruited and organized followers to use armed force against them, and on April 12, 2014, the defendants led a massive armed assault against the officers in order to extort them into abandoning the cattle that they had gathered.

DeLemus’ plea agreement states that he learned of Cliven Bundy and placed a telephone call from New Hampshire to Cliven Bundy in Nevada on or about April 8, 2014. During that call, DeLemus understood Bundy to tell him that federal officers had guns and that Bundy needed “bodies.” DeLemus agreed to assist Bundy. Shortly thereafter, DeLemus gathered multiple firearms and gunmen, and they traveled from New Hampshire to Nevada. DeLemus arrived in Bunkerville on or about April 13, 2014, after the cattle had been forcibly obtained by Bundy and his conspirators.  For weeks thereafter, DeLemus provided personal security for Bundy and other conspirators, organized and led other gunmen in conducting patrols and manning security checkpoints, called for others to travel to Bunkerville, and displayed firearms and made public statements to show and threaten force. DeLemus admitted that when he traveled to Nevada, he joined a conspiracy to display force and aggression in order to influence, impede or interfere with the duties of federal law enforcement officers.

Cooper’s plea agreement states that he knew that Cliven Bundy and his sons and others planned to thwart, impede and interfere with the impoundment operations, and that he knowingly agreed to participate in the plan by recruiting others to join the conspiracy and encouraging and inciting others to confront and interfere with federal law enforcement officers and by providing protection for Cliven Bundy. Cooper knew other members of the conspiracy used and carried firearms and planned to use and carry them to display force and aggression against law enforcement officers. Cooper admitted that on April 12, 2014, at least one member of the conspiracy assaulted federal law enforcement officers by brandishing a firearm during the impoundment operations in order to intimidate and instill fear in the officers.

The case is being investigated by the FBI and BLM. It is being prosecuted by Assistant U.S. Attorneys Steven W. Myhre and Nicholas D. Dickinson and Special Assistant U.S. Attorneys Nadia J. Ahmed and Erin M. Creegan.

LAS VEGAS, Nev. – A North Las Vegas man with a violent criminal history who robbed a Las Vegas convenience store and gas station with a long-barreled shotgun in the summer of 2011, was sentenced today by U.S. District Judge Andrew P. Gordon to 30 years in prison, announced U.S. Attorney Daniel G. Bogden for the District of Nevada. 

Tracey Brown, 40, was convicted by a jury in 2015 of one count of interference with commerce by robbery, one count of brandishing a firearm in relation to a crime of violence, and one count of felon in possession of a firearm.  A co-defendant, Teshae Gallon, pleaded guilty in 2013 to brandishing a firearm in furtherance of a crime of violence, and was sentenced to three years in prison.

“We focus our federal prosecutions of persons who are committing commercial store robberies on those who have prior serious felony convictions,” said U.S. Attorney Bogden. “These persons are more appropriately handled in the federal system, where there is no parole.”

According to court records and trial testimony, on July 26, 2011, Brown, armed with a long-barrel shotgun, robbed a gas station mini-mart located on S. Rainbow Boulevard in Las Vegas. After robbing the store, Brown got into a getaway car driven by Gallon.  Their vehicle was stopped a short while later, and Brown fled.  Brown was apprehended when a canine dog found him hiding under a bush.

Brown has six violent felony convictions in Nevada.  In 1994, he was convicted of burglary and grand larceny auto while possessing a shotgun.  In 2000, he was convicted of burglary with a deadly weapon and robbery with a deadly weapon, as well as conspiracy to commit robbery. In 2010, he was convicted of robbery.  In 2015, he was convicted of multiple counts of first degree kidnapping, burglary with a deadly weapon, robbery with a deadly weapon, burglary and robbery.           

This case was investigated by the FBI, the Las Vegas Metropolitan Police Department, and the Las Vegas Deputy City Marshal Unit as part of the Safe Streets Task Force and Project Safe Neighborhoods program.  The case was prosecuted by Assistant U.S. Attorney Daniel J. Cowhig.

LAS VEGAS, Nev. – A California man was sentenced today by U.S. District Judge James C. Mahan to 30 years in prison and lifetime supervised release following his jury convictions for felony sex trafficking offenses involving a minor, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

“Assisted by his partner, this five-time convicted felon preyed on his minor victim simply for the purpose of enriching his own pocketbook,” said U.S. Attorney Bogden. “We will work with our local and federal law enforcement partners to ensure that the persons who engage in this type of criminal activity are arrested and prosecuted.”

Daniel James Barnes, 33, of Merced, Calif., was found guilty on April 6 of one count of conspiracy to commit sex trafficking of a child, one count of sex trafficking of a child, one count of transportation of a minor for prostitution, and one count of conspiracy to commit sexual exploitation of a child.

According to the court records, in April 2013, co-defendant, Amber Lynn Marquardt met a 15-year-old girl in the area of Boulder Highway and Tropicana in Las Vegas where they were both working as prostitutes. Marquardt introduced the girl to her pimp, Barnes, and the girl went to work for Barnes the following day and provided all of her earnings to him. That night, Barnes, Marquardt, and the female victim traveled to California, spending one night in a motel in Modesto, and approximately two weeks in motels in and around Merced. In Merced, Marquardt took sexually explicit photographs of the 15-year-old female and posted them on the internet site, MyRedbook.com, commonly used by pimps and prostitutes to promote their business. The 15-year-old female worked as a prostitute while they stayed in Merced, and provided all of her earnings to Barnes. After two weeks in California, Barnes, Marquardt and the 15-year-old girl drove back to Las Vegas and checked into a hotel on the Boulder Highway. The 15-year-old was arrested in May in the area of Tropicana and Polaris after she solicited an undercover Las Vegas Metropolitan Police Department detective for sex.  Barnes and Marquardt were arrested in September 2013 at a motel in Santa Rosa, Calif.

Barnes has five prior felony convictions in California related to narcotics, burglary, and evading arrest. 

Marquardt pleaded guilty to transportation of a minor for prostitution, and was sentenced on May 31 to 41 months in prison and five years of supervised release.

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

The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.  For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

LAS VEGAS, Nev. – A former employee of the Las Vegas Valley Water District has been indicted by the federal grand jury on multiple mail fraud charges for her role in a scheme to defraud the public utilities company of over $6.7 million, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.   

“Nevada residents pay for this type of financial fraud through inflated costs and loss of faith in government,” said U.S. Attorney Bogden. “We are committed to the vigorous enforcement of financial fraud crimes, and encourage residents to report suspected financial crimes to your local police department or the FBI.” 

Jennifer J. McCain-Bray, aka JJ McCain, 41, of Las Vegas, is charged with six counts of mail fraud and criminal forfeiture. McCain was arrested this morning in Las Vegas by FBI Special Agents, and appeared this afternoon before U.S. Magistrate Judge George Foley, Jr. for an initial appearance and arraignment and plea.  McCain pleaded not guilty to the charges and was released on a personal recognizance bond pending trial. If convicted, she faces up to 20 years in prison and a $250,000 fine on each count.

According to the indictment, McCain began working for the Las Vegas Valley Water District (LVVWD) in October 2001 as an office assistant. In February 2004, she was promoted to purchasing assistant, and in October 2007, she was promoted to purchasing analyst.  McCain was responsible for transmitting orders and payments to vendors when particular products were requested from LVVWD departments and employees. From about Jan. 1, 2007, to Dec. 7, 2015, McCain and unidentified others allegedly devised the scheme to defraud the LVVWD by fraudulently representing that McCain’s purchases of ink and toner cartridges were for the LVVWD, when they knew that the products were for the benefit of a New Jersey company which received and resold the cartridges for its own profit.  McCain instructed the vendor to ship the ink and toner cartridges from California and other locations to her at her LVVWD office in Las Vegas. McCain then relabeled the packages and shipped them to the New Jersey company.  In exchange, the New Jersey company transferred money and other things of value to McCain’s personal PayPal account. Between 2007 and 2015, McCain fraudulently purchased approximately $6.7 million in ink and toner cartridges with LVVWD funds.

The case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney Patrick Burns.    

This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force.  President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.  The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.  For more information about the task force visit: www.stopfraud.com.

The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

LAS VEGAS, Nev. – A Las Vegas man who robbed a convenience store, two liquor stores, a payday loan company, and an electronics retailer in the Las Vegas area during the summer of 2014, was sentenced today to 1,354 months or over 112 years in prison and five years of supervised release, announced U.S. Attorney Daniel G. Bogden for the District of Nevada. 

Dominique Wells, 29, was sentenced this morning by U.S. District Judge James C. Mahan. Wells was convicted by a jury in April of five counts of interference with commerce by robbery, two counts of conspiracy to interfere with commerce by robbery, and five counts of using a firearm during and in relation to a crime of violence.  Two co-defendants, Christopher Dobbins, 28, and Andre Hall, 27, pleaded guilty in 2015. Dobbins was sentenced on July 13 to four years in prison, and Hall is awaiting sentencing.

“The prosecution of persons who commit violent robberies of commercial establishments with guns in southern Nevada is a top priority of our violent crime program,” said U.S. Attorney Bogden. “The defendants who are prosecuted federally for these robberies are typically recidivist felons who are using firearms to terrorize our community. Like in this case, the consequences of conviction for these repeat, violent offenders are severe.”

According to court records and trial testimony, on June 15, 2014, Wells robbed a convenience store in Henderson using a handgun and wearing a black mask and gloves, black t-shirt and camouflage shorts.  Four days later, on June 19, 2014, Wells robbed a liquor store in Las Vegas using a handgun with a laser sight, and wearing camouflage shorts, a black t-shirt, and a black face mask/ski mask.  Two days after that, on June 21, 2014, Wells robbed a liquor store on the Boulder Highway in Las Vegas using a black handgun with a laser sight and wearing camouflage shorts, a black t-shirt and a black face mask/ski mask.  On June 26, 2014, Wells robbed a payday loan store in Henderson using a black handgun with a laser sight. Wells and a co-defendant used duct tape to tie up three individuals inside the payday loan store.  On July 3, 2014, Wells robbed an electronics retailer in Henderson using a black handgun.  Wells and a co-defendant used zip ties to tie up the employees in that robbery. Wells obtained on average only $100 to $250 in each robbery.

Over the last five years, 94 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, the Las Vegas Metropolitan Police Department, and the Henderson Police Department, as part of the Safe Streets Task Force and Project Safe Neighborhoods program. 

The case was prosecuted by Assistant U.S. Attorneys Phillip N. Smith, Jr. and Lisa Cartier-Giroux.

LAS VEGAS, Nev. – A Las Vegas man who robbed two tourists in the parking lot of their hotel at gunpoint and stole their vehicle, was sentenced this morning to 147 months in prison and three years of supervised release, announced U.S. Attorney Daniel G. Bogden for the District of Nevada. 

Brandon Michael White, 34, was sentenced by U.S. District Judge Gloria M. Navarro. White pleaded guilty on April 11 to one count of carjacking and one count of using a firearm during and in relation to a crime of violence. 

According to the guilty plea agreement, on Dec. 26, 2014, at approximately midnight, White approached a man and a woman in the parking lot of their hotel on East Flamingo Road just after they parked their vehicle. White pointed a revolver at their feet and told them to give him everything, including their car keys. White took the female victim’s purse and the male victim’s cellular telephone and the car keys, and drove off in their vehicle. White was captured hiding in a yard near another hotel, where he had discarded the stolen items and the handgun he used to commit the robbery.

White has seven prior felony convictions in Las Vegas for burglary, robbery, and theft, and numerous misdemeanor convictions. 

This case was investigated by the FBI and the Las Vegas Metropolitan 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.

LAS VEGAS, Nev. – A Belize man who was one of four family members convicted in a scheme to steal almost $300,000 in unemployment funds and benefits from multiple federal agencies, was sentenced today by U.S. District Judge James C. Mahan to 87 months in prison, three years of supervised release and ordered to pay approximately $297,000 in restitution, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

Frederick Vernon Williams, 35, was convicted by a jury in January of 20 counts total, including conspiracy to commit mail fraud, aggravated identity theft, mail fraud, theft of government money, making a false statement in application for a passport, and making false citizenship claims.  At sentencing, the judge found that he had been an organizer and leader in the scheme to defraud the agencies.

Williams’ sister, Jacqueline Louisa Gentle, 27, was convicted of nine counts total, including the above charges, misuse of a U.S. passport, and misuse of a social security number, and was sentenced on June 29 to 65 months in prison and ordered to pay $218,000 in restitution. Williams’ wife, Denise Allison Williams, 37, and his other sister, Carolyn Shelmadine Willis-Casey, 40, were each convicted of one count of mail fraud, and sentenced on June 30 to two years of probation and 30 months in prison, respectively.  All four family members are citizens of Belize.

“The defendants falsely stated on government paperwork that they were U.S. citizens, and used false identities to steal federal benefits from multiple agencies, including the Departments of Labor, Agriculture, Education, Health and Human Services, and the Social Security Administration,” said U.S. Attorney Bogden. “We will continue to use federal laws to prosecute benefits thieves who steal from all Americans through greed and fraud.”

 According to the court records and evidence submitted at trial, from about August 2010 to June 2012, defendants Frederick Williams and Jacqueline Gentle, citizens of Belize, conspired to register two fictitious companies, Luna Consulting and Centro America Export, with the State of Nevada, Department of Employment, Training, and Rehabilitation (DETR). After the companies were registered with DETR, the defendants conspired to submit fraudulent wage information for 16 fictitious employees, including themselves. After submitting the fraudulent wage information, the defendants submitted fraudulent unemployment compensation claims to DETR, and obtained unemployment compensation payments totaling approximately $218,000.  The unemployment compensation payments were transferred to the defendants by means of Nevada debit cards mailed to the fictitious employees, which the defendants and co-defendants used to withdraw cash from ATM’s.

Frederick Williams and Gentle also made false statements in applications for U.S. passports by stating that their father was a U.S. citizen and by stating in other government paperwork that they were U.S. citizens, when they well knew that they were not citizens of the United States but were citizens of Belize.

Frederick Williams and Gentle also falsely stated that they were U.S. citizens in applications for other government benefit programs such as social security, federal student aid (Pell grants), food stamps, and Medicaid. Williams was able to fraudulently obtain approximately $33,184 in social security benefits, $10,900 in Pell grants, $33,814 in food stamp benefits, and $1,132 in Medicaid benefits. 

Denise Williams fraudulently caused DETR to pay unemployment benefits in her name, and Carolyn Willis-Casey caused a notice for payment of unemployment benefits to be sent to her.

The case was prosecuted by Assistant U.S. Attorney Jiamin Chen and investigated by the U.S. Department of State Diplomatic Security Service, the Offices of the Inspector General for the U.S. Department of Labor, Social Security Administration, U.S. Department of Agriculture, U.S. Department of Education, and U.S. Department of Health and Human Services, and Homeland Security Investigations. 

This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force.  President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.  The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.  For more information about the task force visit: www.stopfraud.com.

LAS VEGAS, Nev. – A Laughlin man was sentenced this morning to 12 months and one day in prison and ordered to pay $281,135 in restitution, for stealing the retirement benefits of his deceased mother for over 24 years, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

"Our office works regularly with investigators for federal benefit programs to ensure that persons who unlawfully claim or steal Social Security, VA or other benefits are prosecuted,” said U.S. Attorney Bogden. “These benefit thieves cheat and steal from all Americans, and deserve to be punished.” 

Lafayette George Baida II, 71, of Laughlin, Nev., pleaded guilty last December to one count of theft of government funds, and was sentenced today by U.S. District Judge Kent J. Dawson. Baida is released on bond, and must self-report to federal prison by October 10 at noon. 

“The Social Security Administration’s Office of the Inspector General is committed to pursuing those who violate the public trust,” said Robb Stickley, the Special Agent in Charge of the San Francisco Field Division, which is responsible for the state of Nevada. “We will continue to uphold the integrity of Social Security’s benefit programs, which are a lifeline for so many Americans and their families.”

Baida’s mother was receiving Title II Retirement Benefits from the Social Security Administration until her death on March 21, 1989.  Baida did not notify the Social Security Administration of his mother’s death, and they continued to send monthly benefits to her. Baida stole the payments sent to his mother after her death by withdrawing funds at ATMs and cashing checks that were made payable to her.  Baida knew he was not entitled to the benefits. Between March 21, 1989, and Sept. 13, 2013, Baida stole a total of $281,135 from the Social Security Administration.

The case was investigated by the Social Security Administration Office of the Inspector General and prosecuted by Assistant U.S. Attorney Kathryn Newman.

This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force.  President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.  The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.  For more information about the task force visit: www.stopfraud.com.

LAS VEGAS, Nev. – The British man who was arrested two weeks ago at a Donald Trump rally in Las Vegas after he attempted to seize a law enforcement officer’s firearm, was indicted by the federal grand jury today on three felony charges, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

Michael Steven Sandford, 20, of England, is charged with two counts of illegal alien in possession of a firearm and one count of impeding and disrupting the orderly conduct of government business and official functions.  If convicted, he faces up to 10 years in prison and a fine of up to $250,000 on each count. He is currently in federal custody and scheduled for an arraignment and plea hearing on July 6, at 3:00 p.m.

According to the indictment and previously filed criminal complaint, on June 17, 2016, Sandford, who is a British citizen and was unlawfully in the United States, allegedly went to a gun range in Las Vegas and took shooting lessons using a 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 event was under the protection of the U.S. Secret Service, and there were posters at the entrance to the event designating the grounds as restricted and under the protection of the U.S. Secret Service.  Las Vegas Metropolitan Police Department (LVMPD) officers were also present at the rally to assist with security.  Inside the rally, Sandford approached a uniformed LVMPD officer and attempted to seize the officer’s Glock 9 millimeter handgun by grabbing the holster and handle of the firearm with both hands in an attempt to remove it from the holster.  Sandford was immediately arrested and removed from the rally.

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

The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

RENO, Nev.  – The federal grand jury in Reno today indicted Robert Rand M.D. and eight others on felony drug conspiracy and other charges, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.  The indictment replaces the prior criminal complaint, and is required in order for the government to prosecute the defendants on the felony charges.

“We are using all legal tools at our disposal to discover, disrupt and dismantle illegal traffic in pharmaceutical controlled substances,” said U.S. Attorney Bogden. “We are making significant progress in Nevada, and have disrupted a number of so-called pill mills. Our efforts in this area continue, and I am optimistic that we can reverse the alarming upward trend of illegal trafficking of prescription drugs.” 

Robert Gene Rand, 53, Richard Winston West II, aka Richie West, 40, 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, are each charged with conspiracy to distribute and possess with intent to distribute controlled substances, such as oxycodone.  Rand is also charged with one count of distribution of oxycodone resulting in death and one count of distribution of fentanyl. West is also charged with three counts of distribution of oxycodone, two counts of possession with intent to distribute oxycodone, two count of possession with intent to distribute fentanyl, two counts of possession with intent to distribute psilocyn, and two counts of possession of a firearm during and in relation to a drug trafficking crime.  

If convicted, each defendant faces up to 20 years in prison on the conspiracy charge.  Rand also faces a minimum mandatory 20 years in prison on the distribution count resulting in death.  West also faces up to 20 years in prison on each of the other drug counts, a consecutive mandatory minimum five years in prison as to the first firearm count, and a consecutive mandatory minimum 25 years in prison as to the second firearm count.

At the time of the criminal conduct, defendant Rand was a Nevada-licensed physician who operates Rand Family Care in Reno and defendant West was the manager of the Jones-West Ford dealership. All of the other defendants were also employees at one time of the vehicle dealership.  Rand allegedly prescribed narcotics, such as oxycodone, without a legitimate medical purpose and outside the usual course of his professional practice.  Beginning on about Nov. 13, 2012, and continuing to about April 28, 2016, Rand allegedly issued prescriptions for substantial amounts of oxycodone to his co-defendants, who filled the prescriptions at local pharmacies and illicitly distributed them.  On September 30, 2015, Rand allegedly issued an unlawful prescription for oxycodone, resulting in the death of an individual.  

The indictment alleges that on April 28, the day that West was arrested, he possessed in his truck two pistols and a rifle during and in relation to drug trafficking crimes, and in his residence two pistols and a rifle during and in relation to drug trafficking crimes.

According to the Centers for Disease Control and Prevention (CDC), almost two million Americans abused or were dependent on prescription opioids in 2014. Overdose deaths from opioids, including prescription opioids and heroin, have nearly quadrupled since 1999. Overdoses involving opioids killed more than 28,000 people in 2014, 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.

This case is being investigated by the Northern Nevada Unified Drug and Gang Enforcement Task Force, which includes the DEA, FBI, IRS Criminal Investigation, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Enforcement, Reno Police Department, Washoe County Sheriff’s Office, Carson City Sheriff’s Office, Susanville, California Police Department, Nevada Department of Corrections, Nevada Gaming Control,  Nevada Department of Public Safety,  Lyon County Sheriff’s Office, and the State of Nevada Division of Welfare, Office of Investigations and Recovery.

The case is being prosecuted by Assistant U.S. Attorney James E. Keller. 

The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

LAS VEGAS, Nev. – A former Las Vegas resident pleaded not guilty today to felony tax evasion crimes that occurred over a 10-year-period, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

Craig Orrock, 68, currently of Sandy, Utah, appeared before U.S. Magistrate Judge Nancy Koppe in Las Vegas following his arrest in Salt Lake City on April 28, 2016.  Orrock is charged in a criminal indictment with one count of attempting to evade the payment of tax, one count of attempting to evade the assessment of tax, and one count of attempts to interfere with the administration of IRS laws.  If convicted, Orrock faces up to five years in prison on the first two counts and up to three years in prison on the third count, as well as fines of up to $250,000 on all counts.

The indictment alleges that beginning on about April 15, 2001, and continuing to at least April 23, 2010, in Nevada, Orrock willfully attempted to evade and defeat the payment of a large part of the income tax due and owing by him to the United States for the calendar years 2000 through 2006. Orrock allegedly did so by filing false and fraudulent bankruptcy petitions, false and fraudulent amended tax returns, and a false and fraudulent offer in compromise with the IRS, and by placing funds and property in the names of nominees and concealing from the IRS the nature and extent of his assets.

The indictment also alleges that Orrock willfully attempted to evade and defeat the assessment of a large part of the income tax due and owing by him to the United States for the calendar year 2007, by concealing from the IRS both ownership of property he held through a nominee known as Arville Properties, LLC and the proceeds from the sale of such property.

The case is being investigated by the IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Patrick Burns.

An indictment contains only charges and is not evidence of guilt.  The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

LAS VEGAS, Nev. – A southern California man has pleaded guilty to defrauding 157 persons of over $4 million from 2009 through 2011 by selling them worthless, unregistered stock in a number of purported biofuels development businesses, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

Gilbert R. Rousseau, 57, of North Hollywood, Calif., pleaded guilty on May 4, 2016, to one count of conspiracy to commit mail fraud and wire fraud, and agreed to pay restitution of approximately $4.4 million.  Rousseau is released on a personal recognizance bond pending sentencing, and faces up to 20 years in prison and a $250,000 fine.

According to the plea agreement, from January 2009 to February 2012, Rousseau and five conspirators defrauded the victims, many of whom were elderly, by selling them worthless, unregistered securities in the form of stock and stock purchase warrants in four Nevada limited liability companies. The companies, Go Green Home Stores, U.S. Biofuels, Vista Biofuels, and G-Tec Biofuels, were not established or operated to sell goods or services, but were actually fronts for the fraud scheme. Rousseau and the conspirators also created and used two other Nevada companies, G.G.H. Marketing and A.G.M. Marketing Group, to market the worthless securities.  Rousseau and the conspirators set up and operated websites for the companies that contained material misrepresentations and false promises to make them look legitimate and designed to get the victims to part with their money. The victims were solicited throughout the United States by telephone from call rooms operated by conspirators in California and Las Vegas. Some of the companies used Las Vegas addresses to receive funds from the victims.

The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Daniel J. Cowhig.

This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force.  President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.  The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.  For more information about the task force visit: www.stopfraud.com.

RENO, Nev.  – A local doctor and eight other Reno-area residents, including a number of employees of an automobile dealership, have been arrested and charged with being part of a conspiracy to unlawfully distribute highly addictive prescription drugs, including oxycodone, to persons who did not have a medical necessity for them, announced U.S. Attorney Daniel G. Bogden for the District of Nevada, DEA Assistant Special Agent in Charge Daniel Neill, and Nevada FBI Special Agent in Charge Laura A. Bucheit.                                                                                                         

“Our U.S. Attorney’s Office is working aggressively with our federal, state and local law enforcement partners to attack the growing problem of prescription drug abuse,” said U.S. Attorney Bogden. “We have prioritized unlawful prescription drug distribution cases, and plan to shut down dangerous ‘pill mill’ operations that are contributing to what amounts to, in many instances, a deadly problem.”

Robert Gene Rand, 53, Richard Winston West II, aka Richie West, 40, 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, are each charged in a criminal complaint with conspiracy to distribute and possess with intent to distribute controlled substances, such as oxycodone and illegal use of a communication facility.  Rand and West are also charged with engaging in a continuing criminal enterprise with at least five other persons in which Rand and West occupied positions of management.  Rand is also charged with distribution of a controlled substance resulting in death, and West is also charged with three separate counts of distribution of oxycodone.

Dr. Rand was arrested this morning in San Francisco, and the eight other defendants were arrested in the Reno area yesterday.  Rand will appear before a U.S. Magistrate Judge in the immediate future. The other defendants are scheduled to appear before U.S. Magistrate Judge Valerie P. Cooke this afternoon at 3:00 p.m. at the Bruce R. Thompson Federal Courthouse in Reno.

“This investigation targeted a major distribution source of deadly and addictive prescription opioids being diverted to street sales across the region,” said DEA Assistant Special Agent in Charge Neill. “These arrests clearly demonstrate that DEA and our law enforcement partners are committed to stemming the tide of drugs being diverted to the black market, as well as stopping medical professionals who disregard their ethical obligations and abuse the public’s trust.”

“This investigation demonstrates the FBI’s resolve to aggressively pursue those who engage in the illegal distribution of prescription drugs within our community,” said FBI Special Agent in Charge Bucheit. “As a result of our alliance with law enforcement partners in Reno, a significant impact has been made on the illegal drug supply network in the area.”

Defendant Rand is a Nevada-licensed physician who operates Rand Family Care in Reno.  Defendant West is the manager of the Jones-West Ford dealership. Defendants Ahmad, Griffin, Martinez, Bloodworth, and Riley are also employees of the dealership, and defendants Green and Smith are former employees of the dealership.  According to the criminal complaint, Rand allegedly prescribes narcotics, such as oxycodone, without a legitimate medical purpose and outside the usual course of his professional practice.  Beginning on about September 30, 2015, and continuing to about April 28, 2016, Rand allegedly issued prescriptions for substantial amounts of oxycodone to his co-defendants, who filled the prescriptions at local pharmacies and then illicitly distributed them.  On September 30, 2015, the complaint alleges that Rand issued an unlawful prescription for oxycodone, resulting in the death of an individual.

In addition to the arrests, law enforcement agents executed federal search warrants at six locations, including two residences, two offices, and two vehicles connected to the defendants, and seized evidence related to the unlawful distribution of controlled substances, such as oxycodone. 

According to the Centers for Disease Control and Prevention (CDC), almost two million Americans abused or were dependent on prescription opioids in 2014. Overdose deaths from opioids, including prescription opioids and heroin, have nearly quadrupled since 1999. Overdoses involving opioids killed more than 28,000 people in 2014, 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.

This case is being investigated by the Safe Streets Task Force in Reno, which includes the DEA, FBI, IRS Criminal Investigation, Reno Police Department, and Washoe County Sheriff’s Office.  It is being prosecuted by Assistant U.S. Attorney James E. Keller. 

The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

LAS VEGAS, Nev. – On April 28, 2016, U.S. Attorney Daniel G. Bogden and Assistant U.S. Attorney Sue Fahami, visited the Federal Correctional Institution in Herlong, Calif. (FCI Herlong) as part of the Department of Justice’s first-ever National Reentry Week, which included events nationwide to assist incarcerated Americans who are preparing to leave prison. National events included job fairs, reentry court graduations, legal service clinics, family events and community resource open houses. 

U.S. Attorney Bogden and Assistant U.S. Attorney Fahami were part of a coalition of representatives from two federal judicial districts who presented information to the inmates on various reentry programs that are being offered to inmates who are returning to the community. The team included U.S. Magistrate Judge Valerie P. Cooke of the District of Nevada, as well as U.S. Probation Officers, Assistant Federal Defenders, and residential reentry center representatives.  The team was assisted by FCI Herlong management and staff, including Warden Felicia Ponce, and Associate Wardens Ganson McManus and Israel Jacquez.

During this visit to FCI Herlong, as well as another visit that occurred on March 15, the reentry team conducted panel discussions with Residential Drug Abuse Program (RDAP) participants and general population inmates who were sentenced in U.S. District Courts in Nevada and Eastern California. Approximately 10 staff and 130 inmates attended the panel discussions where the reentry team lectured and responded to inmate questions.  The main topic of discussion was the criteria for and expectations of participants in the Court Led Efforts at Recovery (CLEAR Court) programs.  The District of Nevada has had a CLEAR Court program for approximately five years. These programs are voluntary and are monitored by a federal judge, federal probation, the U.S. Attorney’s Office, the Federal Public Defender’s Office and a residential reentry center (RRC) clinician. 

During their discussion they informed the inmates of the intensive oversight while participating in the CLEAR Court program and that it also offered the returning offenders access to additional resources, a new view of authority figures, and an opportunity to earn up to one year off of their supervised release.  After the panel discussions with the inmates concluded, a tour of the institution program areas was provided to allow the reentry team members an opportunity to meet institutional staff, learn about the various departments’ roles and programs that are offered to inmates to assist them with the skills necessary to have a successful reintegration back to the community.   

Each year, more than 600,000 citizens return to our neighborhoods after serving time in federal and state prisons.  Another 11.4 million individuals cycle through local jails.  And nearly one in three Americans of working age have had some sort of encounter with the criminal justice system — mostly for relatively minor, non-violent offenses, and sometimes from decades in the past.  The long-term impact of a criminal record prevents many people from obtaining employment, housing, higher education, and credit — and these barriers affect returning individuals even if they have turned their lives around and are unlikely to reoffend. 

Visit the following link for additional information on National Reentry Week and reentry programs, https://www.justice.gov/opa/pr/fact-sheet-during-national-reentry-week-reducing-barriers-reentry-and-employment-formerly.

LAS VEGAS, Nev. – A Las Vegas man who wore a mask and gloves and used a black handgun with a laser sight to rob a convenience store, two liquor stores, a payday loan company, and an electronics retailer in the Las Vegas area during the summer of 2014, was convicted by a jury today of all counts charged and faces a mandatory minimum sentence of 107 years in prison, announced U.S. Attorney Daniel G. Bogden for the District of Nevada. 

Following a four-day jury trial, Dominique Wells, 29, was convicted of five counts of interference with commerce by robbery, two counts of conspiracy to interfere with commerce by robbery, and five counts of using a firearm during and in relation to a crime of violence.  Wells is scheduled to be sentenced by U.S. District Judge James C. Mahan on July 21, 2016.  Two co-defendants, Christopher Dobbins, 28, and Andre Hall, 27, pleaded guilty in 2015 and are awaiting sentencing.

“We continue to work with the local authorities to use federal laws to prosecute persons who are committing violent robberies with guns in southern Nevada,” said U.S. Attorney Bogden. “We meet with local law enforcement regularly through our Project Safe Neighborhoods Task Force to review all the recent arrests of persons who are using firearms to commit violent crimes and to determine if prosecution in the federal system, where there is no parole, is warranted.”

According to court records and trial testimony, on June 15, 2014, Wells robbed a convenience store in Henderson using a handgun and wearing a black mask and gloves, black t-shirt and camouflage shorts.  Four days later, on June 19, 2014, Wells robbed a liquor store in Las Vegas using a handgun with a laser sight, and wearing camouflage shorts, a black t-shirt, and a black face mask/ski mask.  Two days after that, on June 21, 2014, Wells robbed a liquor store on the Boulder Highway in Las Vegas using a black handgun with a laser sight and wearing camouflage shorts, a black t-shirt and a black face mask/ski mask.  On June 26, 2014, Wells robbed a payday loan store in Henderson using a black handgun with a laser sight. Wells and a co-defendant used duct tape to tie up three individuals inside the payday loan store.  On July 3, 2014, Wells robbed an electronics retailer in Henderson using a black handgun.  Wells and a co-defendant used zip ties to tie up the employees in that robbery. Wells obtained on average only $100 to $250 in each robbery.

Over the last five years, 94 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, the Las Vegas Metropolitan Police Department, and the Henderson Police Department, as part of the Safe Streets Task Force and Project Safe Neighborhoods program. 

The case was prosecuted by Assistant U.S. Attorneys Phillip N. Smith, Jr. and Lisa Cartier-Giroux.

LAS VEGAS, Nev. – A man who convinced persons to invest money with him by falsely representing himself to be a successful securities trader and investor, was indicted by the federal grand jury today for stealing almost $2 million from his victims, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.  

“Social media platforms are increasingly being used by persons with criminal intentions,” said U.S. Attorney Bogden. “Be very cautious and investigate the background of persons who request your money with promises to invest it.”

Sean Christopher Sladek, 39, most recently of Henderson, Nev., and Liberty, Texas, is charged with two counts of wire fraud, two counts of money laundering, and criminal forfeiture.  Sladek is scheduled to appear before U.S. Magistrate Judge Nancy Koppe on April 21, 2016, for an arraignment and plea. Sladek has been in federal custody since March 31, when he was arrested by the FBI at McCarran Airport.

According to the indictment, from about January 2011 to March 2016, Sladek allegedly solicited persons, including some he met through social media sites, such as online dating platforms Tinder and Bumble, and through Craigslist, for investment funds. Sladek falsely told the victims and potential victims that he was a successful securities trader and investor, and that he would invest any monies they gave him to earn positive returns on their investments. In fact, Sladek was not a successful investor or securities trader, and used the funds he received from the victims for gambling, personal expenses, and to enrich himself.  When the victim investors complained to Sladek about non-payment of investment returns, Sladek gave numerous false excuses and reasons for why they had not been paid. The indictment states that on May 10, 2013, and September 12, 2014, Sladek received $100,000 from one victim in California and $40,000 from another victim in South Carolina, respectively, and, within one day of receiving those funds, he deposited cashier’s checks for almost the same amounts into two casino accounts in Las Vegas. Sladek did not pay investment returns to any known victim, and wrongfully obtained approximately $1.7 million from about 39 known victims.

If convicted, Sladek faces a maximum of 20 years in prison on each wire fraud count and up to 10 years in prison on each money laundering count, as well as fines of up to $250,000 on each count.   

The case is being investigated by the FBI, and prosecuted by Assistant U.S. Attorney Jiamin Chen.

If you believe you are a victim of this offense, please contact your local FBI field office.   

This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force.  President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.  The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.  For more information about the task force visit: www.stopfraud.com.

The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

LAS VEGAS, Nev. – One of two local men who violently robbed a Summerlin bank in January 2015, has been convicted by a federal jury of multiple felony counts, announced U.S. Attorney Daniel G. Bogden for the District of Nevada. 

Jerome Michael Bell, 26, of Las Vegas, was convicted on March 22, 2016, of one count of conspiracy to commit armed bank robbery, one count of armed bank robbery, and one count of using and carrying a firearm during a crime of violence.  Bell faces up to five years in prison on the conspiracy charge, up to 20 years in prison on the armed bank robbery charge, and a minimum of seven years consecutive on the firearm charge. He is scheduled to be sentenced by U.S. District Judge James C. Mahan on June 20, at 10 a.m.

“Using a firearm to rob a bank or commercial establishment is a very serious offense and typically harms multiple victims,” said U.S. Attorney Bogden. “We are working with our local police departments and the FBI to make sure these violent criminals are brought to justice, convicted and sentenced in the federal system.”

The co-conspirator, DeShawn Walker, 26, pleaded guilty on March 1 to conspiracy to commit bank robbery and one count of using and carrying a firearm during a crime of violence and is scheduled to be sentenced on June 1, at 10 a.m.

According to the court records and information submitted to the jury, on Jan. 2, 2015, at approximately 8:44 a.m., Bell and Walker entered the Summerlin bank wearing dark clothing, hooded sweatshirts, face coverings, and dark gloves. Bell was brandishing a loaded handgun and pointing it at the tellers, and Walker grabbed an employee from an office and threatened to kill the employee and a teller if they did not meet their demands. Bell robbed some of the tellers of their money, and then they forced all but one of the employees into a small room. Bell then demanded that the remaining employee open the vault, but when the employee was unable to do so, Bell and Walker ran from the bank with the stolen money. Bell left his revolver at one of the teller stations and they fled in a vehicle that had been rented by one of Bell’s relatives. Law enforcement agents and officers tracked the vehicle to an east-side location in Las Vegas and observed the vehicle crash into a truck. Bell was apprehended following a short foot pursuit, and Walker had jumped out of the vehicle before the crash and was apprehended from a shed in an individual’s back yard.

This case was investigated by the FBI and Las Vegas Metropolitan Police Department, as part of the Safe Streets Task Force.  The case was prosecuted by Assistant U.S. Attorneys Kathryn Newman and Brandon Jaroch

The Justice Department announced today that a federal grand jury in Nevada has charged 14 additional defendants in connection with the armed assault against federal law enforcement officers that occurred in the Bunkerville, Nevada, area on April 12, 2014.

“The Department of Justice is committed to protecting the American people and defending the rule of law,” said Attorney General Loretta E. Lynch.  “Today’s actions make clear that we will not tolerate the use of threats or force against federal agents who are doing their jobs.  We will continue to protect public land on behalf of the American people, uphold federal law, and ensure that those who employ violence to express their grievances with the government will be apprehended and held accountable for their crimes.”

“Our democracy provides lawful ways individuals can respond if they disagree with their government, but if you resort to violence or threats, you will be held accountable under the law,” said FBI Director James B. Comey. 

A superseding criminal indictment was returned by the grand jury on March 2 and now charges a total of 19 defendants.  The 14 new defendants are Melvin D. Bundy, 41, of Round Mountain, Nevada; David H. Bundy, 39, of Delta, Utah; Brian D. Cavalier, 44, of Bunkerville; Blaine Cooper, 36, of Humboldt, Arizona; Gerald A. DeLemus, 61, of Rochester, New Hampshire; Eric J. Parker, 32, of Hailey, Idaho; O. Scott Drexler, 44, of Challis, Idaho; Richard R. Lovelien, 52, of Westville, Oklahoma; Steven A. Stewart, 36, of Hailey; Todd C. Engel, 48, of Boundary County, Idaho; Gregory P. Burleson, 52, of Phoenix; Joseph D. O’Shaughnessy, 43, of Cottonwood, Arizona; and Micah L. McGuire, 31, and Jason D. Woods, 30, both of Chandler, Arizona.

The newly-added defendants are each charged with one count of conspiracy to commit an offense against the United States and conspiracy to impede or injure a federal officer, and at least one count of using and carrying a firearm in relation to a crime of violence, assault on a federal officer, threatening a federal law enforcement officer, obstruction of the due administration of justice, interference with interstate commerce by extortion and interstate travel in aid of extortion.  The indictment also alleges five counts of criminal forfeiture which upon conviction would require forfeiture of property derived from the proceeds of the crimes totaling at least $3 million, as well as the firearms and ammunition possessed and used on April 12, 2014.

Twelve defendants were arrested earlier today.  Two defendants, Cavalier and Cooper, were already in federal custody in the District of Oregon.

Charges against the original five defendants, Cliven D. Bundy, 69, of Bunkerville; Ryan C. Bundy, 43, of Mesquite, Nevada; Ammon E. Bundy, 40, of Emmet, Idaho; Ryan W. Payne, 32, of Anaconda, Montana; and Peter T. Santilli Jr., 50, of Cincinnati, remain the same.

The superseding indictment alleges that the charges result from a massive armed assault against federal law enforcement officers that occurred in and around Bunkerville on April 12, 2014.  The defendants are alleged to have planned, organized and led the assault in order to extort the officers into abandoning approximately 400 head of cattle that were in their lawful care and custody.  In addition to conspiring among themselves to plan and execute these crimes, the defendants recruited, organized and led hundreds of other followers in using armed force against law enforcement officers in order to thwart the seizure and removal of Cliven Bundy’s cattle from federal public lands.  Bundy had trespassed on the public lands for over 20 years, refusing to obtain the legally-required permits or pay the required fees to keep and graze his cattle on the land.

The superseding indictment charges that Cliven Bundy was the leader, organizer and chief beneficiary of the conspiracy, and possessed ultimate authority over the conspiratorial operations and received the economic benefits of the extortion.  The remaining defendants are charged as leaders and organizers who conspired with Bundy to achieve his criminal objectives.

If convicted, the maximum penalties for the charges are: five years and a $250,000 fine for conspiracy to commit an offense against the United States; six years and a $250,000 fine for conspiracy to impede and injure a federal law enforcement officer; 20 years and a $250,000 fine for assault on a federal law enforcement officer; 10 years and a $250,000 fine for threatening a federal law enforcement officer; 10 years and a $250,000 fine for obstruction of the due administration of justice; 20 years and a $250,000 fine for interference with interstate commerce by extortion; and 20 years and a $250,000 fine for interstate travel in aid of extortion.  The use and carry of a firearm in relation to a crime of violence charge carries a five year mandatory minimum to be served consecutively.

The public is reminded that an indictment contains only charges and is not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

The case is being investigated by the FBI and the Bureau of Land Management.  It is being prosecuted by Assistant U.S. Attorneys Steven W. Myhre and Nicholas D. Dickinson and Special Assistant U.S. Attorneys Nadia J. Ahmed and Erin M. Creegan of the District of Nevada.

Bundy Superseding Indictment

WASHINGTON – The Justice Department announced today that a federal grand jury in Nevada has charged 14 additional defendants in connection with the armed assault against federal law enforcement officers that occurred in the Bunkerville, Nevada, area on April 12, 2014.

            “The Department of Justice is committed to protecting the American people and defending the rule of law,” said Attorney General Loretta E. Lynch.  “Today’s actions make clear that we will not tolerate the use of threats or force against federal agents who are doing their jobs.  We will continue to protect public land on behalf of the American people, uphold federal law, and ensure that those who employ violence to express their grievances with the government will be apprehended and held accountable for their crimes.”

            “Our democracy provides lawful ways individuals can respond if they disagree with their government, but if you resort to violence or threats, you will be held accountable under the law,” said FBI Director James B. Comey. 

            A superseding criminal indictment was returned by the grand jury on March 2 and now charges a total of 19 defendants.  The 14 new defendants are Melvin D. Bundy, 41, of Round Mountain, Nevada; David H. Bundy, 39, of Delta, Utah; Brian D. Cavalier, 44, of Bunkerville; Blaine Cooper, 36, of Humboldt, Arizona; Gerald A. DeLemus, 61, of Rochester, New Hampshire; Eric J. Parker, 32, of Hailey, Idaho; O. Scott Drexler, 44, of Challis, Idaho; Richard R. Lovelien, 52, of Westville, Oklahoma; Steven A. Stewart, 36, of Hailey; Todd C. Engel, 48, of Boundary County, Idaho; Gregory P. Burleson, 52, of Phoenix; Joseph D. O’Shaughnessy, 43, of Cottonwood, Arizona; and Micah L. McGuire, 31, and Jason D. Woods, 30, both of Chandler, Arizona.   

            The newly-added defendants are each charged with one count of conspiracy to commit an offense against the United States and conspiracy to impede or injure a federal officer, and at least one count of using and carrying a firearm in relation to a crime of violence, assault on a federal officer, threatening a federal law enforcement officer, obstruction of the due administration of justice, interference with interstate commerce by extortion and interstate travel in aid of extortion.  The indictment also alleges five counts of criminal forfeiture which upon conviction would require forfeiture of property derived from the proceeds of the crimes totaling at least $3 million, as well as the firearms and ammunition possessed and used on April 12, 2014.

            Twelve defendants were arrested earlier today.  Two defendants, Cavalier and Cooper, were already in federal custody in the District of Oregon.

            Charges against the original five defendants, Cliven D. Bundy, 69, of Bunkerville; Ryan C. Bundy, 43, of Mesquite, Nevada; Ammon E. Bundy, 40, of Emmet, Idaho; Ryan W. Payne, 32, of Anaconda, Montana; and Peter T. Santilli Jr., 50, of Cincinnati, remain the same.

            The superseding indictment alleges that the charges result from a massive armed assault against federal law enforcement officers that occurred in and around Bunkerville on April 12, 2014.  The defendants are alleged to have planned, organized and led the assault in order to extort the officers into abandoning approximately 400 head of cattle that were in their lawful care and custody.  In addition to conspiring among themselves to plan and execute these crimes, the defendants recruited, organized and led hundreds of other followers in using armed force against law enforcement officers in order to thwart the seizure and removal of Cliven Bundy’s cattle from federal public lands.  Bundy had trespassed on the public lands for over 20 years, refusing to obtain the legally-required permits or pay the required fees to keep and graze his cattle on the land.

            The superseding indictment charges that Cliven Bundy was the leader, organizer and chief beneficiary of the conspiracy, and possessed ultimate authority over the conspiratorial operations and received the economic benefits of the extortion.  The remaining defendants are charged as leaders and organizers who conspired with Bundy to achieve his criminal objectives. 

            If convicted, the maximum penalties for the charges are: five years and a $250,000 fine for conspiracy to commit an offense against the United States; six years and a $250,000 fine for conspiracy to impede and injure a federal law enforcement officer; 20 years and a $250,000 fine for assault on a federal law enforcement officer; 10 years and a $250,000 fine for threatening a federal law enforcement officer; 10 years and a $250,000 fine for obstruction of the due administration of justice; 20 years and a $250,000 fine for interference with interstate commerce by extortion; and 20 years and a $250,000 fine for interstate travel in aid of extortion.  The use and carry of a firearm in relation to a crime of violence charge carries a five year mandatory minimum to be served consecutively.

            The public is reminded that an indictment contains only charges and is not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

            The case is being investigated by the FBI and the Bureau of Land Management.  It is being prosecuted by Assistant U.S. Attorneys Steven W. Myhre and Nicholas D. Dickinson and Special Assistant U.S. Attorneys Nadia J. Ahmed and Erin M. Creegan of the District of Nevada.

# # #

LAS VEGAS, Nev. – The federal grand jury in Nevada has charged 14 more defendants in connection with the armed assault against federal law enforcement officers that occurred in the Bunkerville, Nev. area on April 12, 2014, over the removal of Cliven Bundy’s cows from public lands, announced U.S. Attorney Daniel G. Bogden for the District of Nevada and Special Agent in Charge Laura Bucheit for the FBI in Nevada.

“This investigation began the day after the assault against federal law enforcement officers and continues to this day,” said U.S. Attorney Bogden. “We will continue to work to identify the assaulters and their role in the assault and the aftermath, in order to ensure that justice is served.”

A superseding criminal indictment was returned by the grand jury on Wednesday, March 2, and now charges a total of 19 defendants. The 14 new defendants are Melvin D. Bundy, 41, of Round Mountain, Nev., David H. Bundy, 39, of Delta, Utah, Brian D. Cavalier, 44, of Bunkerville, Nev., Blaine Cooper, 36, of Humboldt, Ariz., Gerald A. DeLemus, 61, of Rochester, N.H., Eric J. Parker, 32, of Hailey, Idaho, O. Scott Drexler, 44, of Challis, Idaho, Richard R. Lovelien, 52, of Westville, Okla., Steven A. Stewart, 36, of Hailey, Idaho, Todd C. Engel, 48, of Boundary County, Idaho, Gregory P. Burleson, 52, of Phoenix, Ariz., Joseph D. O’Shaughnessy, 43, of Cottonwood, Ariz., and Micah L. McGuire, 31, and Jason D. Woods, 30, both of Chandler, Ariz. 

Twelve defendants were arrested earlier today.  Two defendants, Brian D. Cavalier and Blaine Cooper, were already in federal custody in the District of Oregon.

“These indictments and subsequent arrests send an irrefutable message to the American people that our determination remains steadfast to protect them and pursue individuals who participate in violent acts of this nature,” said Special Agent in Charge Bucheit.

The newly-added defendants are charged with one count of conspiracy to commit an offense against the United States and conspiracy to impede or injure a federal officer, and at least one count of using and carrying a firearm in relation to a crime of violence, assault on a federal officer, threatening a federal law enforcement officer, obstruction of the due administration of justice, interference with interstate commerce by extortion, and interstate travel in aid of extortion.  The indictment also alleges five counts of criminal forfeiture which upon conviction would require forfeiture of property derived from the proceeds of the crimes totaling at least $3 million, as well as the firearms and ammunition possessed and used on April 12, 2014.

Charges against the original five defendants, Cliven D. Bundy, 69, of Bunkerville, Nev., Ryan C. Bundy, 43, of Mesquite, Nev., Ammon E. Bundy, 40, of Emmet, Idaho, Ryan W. Payne, 32, of Anaconda, Mont., and Peter T. Santilli, Jr., 50, of Cincinnati, Ohio, remain the same.

The superseding indictment states that the charges result from a massive armed assault against federal law enforcement officers that occurred in and around Bunkerville, Nev., on April 12, 2014.  The defendants are alleged to have planned, organized, and led the assault in order to extort the officers into abandoning approximately 400 head of cattle that were in their lawful care and custody. In addition to conspiring among themselves to plan and execute these crimes, the defendants recruited, organized, and led hundreds of other followers in using armed force against law enforcement officers in order to thwart the seizure and removal of Cliven Bundy’s cattle from federal public lands. Bundy had trespassed on the public lands for over 20 years, refusing to obtain the legally-required permits or pay the required fees to keep and graze his cattle on the land.

The superseding indictment charges that Cliven Bundy was the leader, organizer, and chief beneficiary of the conspiracy, and possessed ultimate authority over the conspiratorial operations and received the economic benefits of the extortion.  The remaining defendants are charged as leaders and organizers who conspired with Bundy to achieve his criminal objectives.  

The maximum penalties for the charges are stated below.

Conspiracy to Commit an Offense Against the United States – 5 years, $250,000 fine

Conspiracy to Impede and Injure a Federal Law Enforcement Officer – 6 years, $250,000 fine

Assault on a Federal Law Enforcement Officer – 20 years, $250,000 fine

Threatening a Federal Law Enforcement Officer – 10 years, $250,000 fine

Use and Carry of a Firearm in Relation to a Crime of Violence – 5 years minimum and consecutive

Obstruction of the Due Administration of Justice - 10 years, $250,000 fine

Interference with Interstate Commerce by Extortion - 20 years, $250,000 fine

Interstate Travel in Aid of Extortion – 20 years, $250,000 fine

The case is being investigated by the FBI and the Bureau of Land Management.  It is being prosecuted by Assistant U.S. Attorneys Steven W. Myhre and Nicholas D. Dickinson and Special Assistant U.S. Attorneys Nadia J. Ahmed and Erin M. Creegan.

The public is reminded that an indictment contains only charges and is not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

RENO, Nev. – A Reno man was convicted by a federal jury on Thursday, Feb. 25, of kidnapping a 15-year-old boy and girl in California and transporting them to Reno with the intent that the girl engage in illegal sexual activity, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

“Investigating persons who prey on minors, elderly, and other vulnerable victims, is a top priority of the Justice Department and U.S. Attorney’s Office in Nevada,” said U.S. Attorney Bogden.  “We have dedicated more resources than ever to catching and prosecuting these predators, and are working with local, state and federal partners to make sure they face the criminal justice system.”

John Thomas Abrams, aka Buck, aka David George Garnett, aka John McDonald, aka David Blackwell, 50, was convicted of two counts of kidnapping and one count of transportation of a minor for illegal sexual activity.  Abrams faces a minimum of 20 years in prison on the kidnapping charges, a minimum of 10 years in prison on the transportation charge, and fines of up to $250,000 on each count.  Abrams is in custody and is scheduled to be sentenced on June 13, at 10:00 a.m.

According to the court records and evidence introduced at trial, between about July 12 and July 22, 2012, Abrams kidnapped the girl and the boy in the Sacramento, Calif. area, and held them for ransom, reward, and otherwise. Abrams then transported them to Reno, Nev. with the intent that the girl engage in illegal sexual activity.

The investigation was conducted by the FBI in Sacramento and Las Vegas and the Sacramento Police Department. The case is being prosecuted by Assistant United States Attorneys Carla Higginbotham and Sue Fahami.

The case was brought as part of Project Safe Childhood (PSC), 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 Child Exploitation and Obscenity Section, PSC marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.  For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

A Las Vegas man was sentenced today to 60 months in prison for his role in an investment fraud scheme that promoted fraudulent investment opportunities and caused more than $5 million in losses to investors. 

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada and Special Agent in Charge Laura A. Bucheit of the FBI’s Las Vegas Field Office made the announcement. 

Joseph Micelli, 62, was sentenced by U.S. District Judge Kent J. Dawson of the District of Nevada, who also ordered Micelli to pay $5.65 million in restitution and to forfeit $505,220 in fraudulent proceeds. 

As part of his plea, Micelli admitted that he conspired with others in the United States and Switzerland to promote investments and loan instruments that he knew to be fraudulent.  The conspirators told victims that, for an up-front payment, a Swiss company known as the Malom Group A.G. would provide access to lucrative investment opportunities and substantial cash loans.  In connection with his plea, Micelli admitted that he held himself out to investors as an attorney, when in fact he had lost his license to practice law.  In addition, as part of an effort to defraud an investor who held an equity stake in a corporation that had filed for bankruptcy, Micelli submitted a sworn affidavit to the U.S. Bankruptcy Court for the District of New Hampshire, in which he made false statements about the Malom Group’s ability to provide financing to the debtors. 

Five other defendants have been charged in the case, two of whom were convicted at trial in December, two of whom are at large in Switzerland and one of whom is awaiting extradition from Canada.          

The FBI’s Las Vegas Field Office investigated this case.  Assistant Chief Brian R. Young and Trial Attorneys Melissa Aoyagi and Anna G. Kaminska of the Criminal Division’s Fraud Section are prosecuting this case with assistance from the Criminal Division’s Office of International Affairs and the U.S. Attorney’s Office for the District of Nevada.  The U.S. Securities and Exchange Commission’s Enforcement Division, which referred the matter to the department and is conducting a parallel civil enforcement investigation, also provided valuable assistance.   

Today’s conviction is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.  Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations.  Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants.  For more information on the task force, visit www.stopfraud.gov.

LAS VEGAS, Nev. – Nevada resident Cliven Bundy and four others were indicted by the federal grand jury today on 16 felony charges related to the armed assault against federal law enforcement officers that occurred in the Bunkerville, Nev. area on April 12, 2014.

U.S. Attorney Daniel G. Bogden for the District of Nevada, Special Agent in Charge Laura Bucheit for the FBI in Nevada, and Bureau of Land Management Director Neil Kornze made the announcement.

“The rule of law has been reaffirmed with these charges,” said U.S. Attorney Bogden. “Persons who use force and violence against federal law enforcement officers who are enforcing court orders, and nearly causing catastrophic loss of life or injury to others, will be brought to justice.” 

“This indictment sends a resounding message to those who wish to participate in violent acts that our resolve to pursue them and enforce the law remains unwavering,” said Special Agent in Charge Bucheit.

“Today marks a tremendous step toward ending more than 20 years of law breaking,” said Bureau of Land Management Director Neil Kornze. “The nation's public lands belong to all Americans.”

Cliven D. Bundy, 69, of Bunkerville, Nev., Ryan C. Bundy, 43, of Mesquite, Nev., Ammon E. Bundy, 40, of Emmet, Idaho, Ryan W. Payne, 32, of Anaconda, Mont., and Peter T. Santilli, Jr., 50, of Cincinnati, Ohio, are charged with one count of conspiracy to commit an offense against the United States, one count of conspiracy to impede or injure a federal officer, four counts of using and carrying a firearm in relation to a crime of violence, two counts of assault on a federal officer, two counts of threatening a federal law enforcement officer, three counts of obstruction of the due administration of justice, two counts of interference with interstate commerce by extortion, and one count of interstate travel in aid of extortion.  The indictment also alleges five counts of criminal forfeiture which upon conviction would require forfeiture of property derived from the proceeds of the crimes totaling at least $3 million, as well as the firearms and ammunition possessed and used on April 12, 2014.

The defendants are currently in custody in Oregon. Their arraignments on these charges have not yet been set.  

The indictment states that the charges result from a massive armed assault against federal law enforcement officers that occurred in and around Bunkerville, Nev., on April 12, 2014.  The defendants are alleged to have planned, organized, and led the assault in order to extort the officers into abandoning approximately 400 head of cattle that were in their lawful care and custody. In addition to conspiring among themselves to plan and execute these crimes, the defendants recruited, organized, and led hundreds of other followers in using armed force against law enforcement officers in order to thwart the seizure and removal of Cliven Bundy’s cattle from federal public lands. Bundy had trespassed on the public lands for over 20 years, refusing to obtain the legally-required permits or pay the required fees to keep and graze his cattle on the land.

The indictment charges that Cliven Bundy was the leader, organizer, and chief beneficiary of the conspiracy, and possessed ultimate authority over the conspiratorial operations and received the economic benefits of the extortion.  The remaining defendants are charged as leaders and organizers who conspired with Bundy to achieve his criminal objectives.  

The maximum penalties for the charges are stated below.

Conspiracy to Commit an Offense Against the U.S. – 5 years, $250,000 fine

Conspiracy to Impede and Injure a Federal Law Enforcement Officer – 6 years, $250,000 fine

Assault on a Federal Law Enforcement Officer – 20 years, $250,000 fine

Threatening a Federal Law Enforcement Officer – 10 years, $250,000 fine

Use and Carry of a Firearm in Relation to a Crime of Violence – 5 years minimum and consecutive

Obstruction of the Due Administration of Justice - 10 years, $250,000 fine

Interference with Interstate Commerce by Extortion - 20 years, $250,000 fine

Interstate Travel in Aid of Extortion – 20 years, $250,000 fine

The case is being investigated by the FBI and the Bureau of Land Management.  It is being prosecuted by Assistant U.S. Attorneys Steven W. Myhre and Nicholas D. Dickinson and Special Assistant U.S. Attorneys Nadia J. Ahmed and Erin M. Creegan.

The public is reminded that an indictment contains only charges and is not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

###

LAS VEGAS, Nev. – Nevada rancher Cliven Bundy was arrested yesterday evening in Portland, Ore., and faces multiple felony charges filed in the District of Nevada related to the attempted cattle impoundment operation conducted by federal law enforcement officers near Bunkerville, Nev. in April 2014, according to U.S. Attorney Daniel G. Bogden for the District of Nevada. 

Bundy, 69, of Bunkerville, Nev., is charged in a criminal complaint with conspiracy to commit an offense against the United States, assault on a federal law enforcement officer, using and carrying a firearm in relation to a crime of violence, obstruction of the administration of justice, and interference with commerce by extortion.  Bundy is scheduled for an initial court appearance at 1:30 p.m. today in Portland. 

The 32-page complaint alleges that on or about April 12, 2014, Bundy and his co-conspirators organized and led a massive armed assault against federal law enforcement officers who were attempting to execute federal court orders to remove cattle from the federal public lands in Bunkerville, Nev. 

If convicted, Bundy faces up to five years in prison on the conspiracy charge, up to 20 years in prison on the assault on a federal law enforcement officer and interference with commerce by extortion charges, up to 10 years in prison on the obstruction of justice charge, and a mandatory minimum consecutive of seven years in prison on the use and carry of a firearm in relation to a crime of violence charge, as well as fines of up to $250,000 per count. 

The case is being investigated by the FBI and the Bureau of Land Management.

The public is reminded that a criminal complaint contains only charges and is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

A federal grand jury in the District of Nevada has charged a Las Vegas resident with running a large operation selling counterfeit and misbranded contact lenses online to customers throughout the United States.

Assistant Attorney General Leslie R. Caldwell 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 Office of Criminal Investigations (FDA OCI) made the announcement today after the indictment was unsealed and the defendant made his initial appearance before U.S. Magistrate Judge Peggy A. Leen of the District of Nevada.

Dmitriy V. Melnik, 29, was charged with one count of conspiracy to traffic in counterfeit goods and to introduce into interstate commerce misbranded devices; four counts of trafficking in counterfeit goods; and five counts of introducing misbranded devices into interstate commerce. 

According to the indictment, Melnik allegedly imported thousands of colored contact lenses from the People’s Republic of China and South Korea that he knew were counterfeit, unauthorized by the FDA for import to and sale in the United States, or both.  Many of these contact lenses bore counterfeit trademarks for Ciba Vision FreshLook COLORBLENDS, which are manufactured by Novartis International AG, and others had labels of brands of contact lenses produced and sold in Asia.

As noted in the indictment, contact lenses—even decorative ones—are medical devices that must receive FDA authorization to enter the United States and be further distributed.  Melnik allegedly sold “authentic” contact lenses to customers without a prescription and without 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.  Some of the contact lenses that Melnik sold were tested and allegedly found to be contaminated with possibly hazardous bacteria. 

The charges and allegations contained in the indictment are merely accusations.  The defendant is presumed innocent until and unless proven guilty.

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 OCI 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 Crane M. Pomerantz 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 Resident Indicted For Running Counterfeit And Misbranded Contact Lens Operation

            WASHINGTON – A federal grand jury in the District of Nevada has charged a Las Vegas resident with running a large operation selling counterfeit and misbranded contact lenses online to customers throughout the United States.

Assistant Attorney General Leslie R. Caldwell 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 Office of Criminal Investigations (FDA OCI) made the announcement today after the indictment was unsealed and the defendant made his initial appearance before U.S. Magistrate Judge Peggy A. Leen of the District of Nevada.

Dmitriy V. Melnik, 29, was charged with one count of conspiracy to traffic in counterfeit goods and to introduce into interstate commerce misbranded devices; four counts of trafficking in counterfeit goods; and five counts of introducing misbranded devices into interstate commerce. 

According to the indictment, Melnik allegedly imported thousands of colored contact lenses from the People’s Republic of China and South Korea that he knew were counterfeit, unauthorized by the FDA for import to and sale in the United States, or both.  Many of these contact lenses bore counterfeit trademarks for Ciba Vision FreshLook COLORBLENDS, which are manufactured by Novartis International AG, and others had labels of brands of contact lenses produced and sold in Asia.

As noted in the indictment, contact lenses—even decorative ones—are medical devices that must receive FDA authorization to enter the United States and be further distributed.  Melnik allegedly sold “authentic” contact lenses to customers without a prescription and without 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.  Some of the contact lenses that Melnik sold were tested and allegedly found to be contaminated with possibly hazardous bacteria. 

The charges and allegations contained in the indictment are merely accusations.  The defendant is presumed innocent until and unless proven guilty.

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 OCI 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 Crane M. Pomerantz 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.

RENO – A former Reno mortgage broker was sentenced today to five years in prison, three years of supervised release, 150 hours of community service, and ordered to pay restitution for embezzling $260,000 from a Reno company’s employee pension plan, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

Marcilin Anne Benvin, 56, currently a resident of Douglas, Alaska, pleaded guilty last September to one count of embezzlement and theft from an employee benefit plan, and was sentenced today by U.S. District Judge Larry R. Hicks. Benvin must self-report to federal prison by May 6 at noon. 

“The investigation and prosecution of financial crimes, including loan and investment fraud, is currently a top priority of the District,” said U.S. Attorney Bogden. “We work with our local, state and federal law enforcement partners to ensure that individuals who commit this type of crime are brought to justice.”

From approximately 1996 to 2008, Benvin lived and worked as a mortgage broker in Reno, and was the President and operator of Cetus Mortgage, Ltd. (Cetus). Cetus was in the business of providing and servicing loans made by private investors to borrowers, primarily for residential construction and development projects.  A Reno painting service company had been investing its employee pension plan money with Cetus for more than 20 years. In November 2006, Benvin told one of the trustees for the pension plan that one of its investment loans had matured.  Benvin asked the trustee whether the pension plan wanted to rollover the $260,000 principal into another loan. The plan agreed, and was provided documents, including a promissory note and deed of trust, stating that it was being invested in Maverick Development.  As it turned out, the documents were forged and Benvin had failed to invest the loan monies as promised, and had misappropriated the investor funds for herself. To date, the pension plan has not received back any of the $260,000 that it provided to Cetus through Benvin. Cetus closed its business and filed for bankruptcy in 2008.

The case was investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration, and is being prosecuted by Assistant U.S. Attorney Brian L. Sullivan.

This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force.  President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.  The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.  For more information about the task force visit: www.stopfraud.com.

RENO, Nev. – A Reno lawyer was indicted by the federal grand jury today on charges that he and a business partner concealed and attempted to conceal the true source of funding of their business by structuring cash deposits in order to avoid IRS detection, announced U.S. Attorney Daniel G. Bogden for the District of Nevada. 

“Federal laws require federally-insured financial institutions to report cash or money orders deposited or withdrawn in amounts of $10,000 or more to provide a means to detect fraud, evasion or other criminal activity,” said U.S. Attorney Bogden. “These transaction reporting laws assist law enforcement in investigations of a variety of criminal offenses and many other types of criminal activity.”

Delmar L. Hardy, 60, of Reno, is charged with one count of conspiracy to structure financial transactions, three counts of filing false tax returns, and one count of corruptly obstructing or impeding due administration of IRS laws. If convicted, he faces not more than five years in prison on the conspiracy charge, not more than three years in prison on each of the other charges, not more than $250,000 in fines per count, and criminal forfeiture in the amount of $574,105.  Hardy will be scheduled for an arraignment in Reno in the near future.

According to the indictment and other public information, Hardy is a licensed attorney in Nevada and operates the Hardy Law Group. Hardy was business partners with Antonio Servidio in XYZ Real Estate, LLC. Servidio is charged and has pleaded guilty in a related case filed in U.S. District Court in Reno. The indictment alleges that from about July 2009 to January 2012, Hardy and Servidio concealed and attempted to conceal the true source of XYZ’s funds by purchasing structured money orders and by making structured deposits into XYZ bank accounts in order to avoid the currency transaction reporting requirements of financial institutions, and the record-keeping requirements of domestic financial institutions.  Hardy also allegedly filed false tax returns for the years 2008, 2009, and 2010, which significantly understated his true income, including cash he received in his practice, and concealed Servidio’s contributions to, and interests in, XYZ Real Estate, LLC, in 2009 and 2010. 

The case is being investigated by IRS Criminal Investigation and prosecuted by First Assistant U.S. Attorney Steven W. Myhre and Assistant U.S. Attorney James E. Keller. 

An indictment contains only charges and is not evidence of guilt.  The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.          

LAS VEGAS, Nev. – A brother and sister have been convicted by a federal jury of multiple felony counts for using false identities to steal almost $300,000 in unemployment funds and other federal benefits, announced U.S. Attorney Daniel G. Bogden for the District of Nevada. Two other family members were also convicted of fraud for their part in the scheme to unlawfully obtain unemployment compensation funds.   

Frederick Vernon Williams, 35, his sister Jacqueline Louisa Gentle, 27, his wife, Denise Allison Williams, 36, and his other sister, Carolyn Shelmadine Willis-Casey, 40, all of Belize, were convicted on Friday, Jan. 15.  The trial lasted for 10 days and was presided over by U.S. District Judge James C. Mahan.

“The defendants used false identities and lied on passport applications to steal federal benefits from multiple agencies, including the Departments of Labor, Agriculture, Education, Health and Human Services, and the Social Security Administration,” said U.S. Attorney Bogden. “We will continue to use federal laws to prosecute benefits thieves who steal from all Americans through greed and fraud.”

Frederick Williams and Jacqueline Gentle were convicted of conspiracy to commit mail fraud, aggravated identity theft, mail fraud, theft of government money, making a false statement in application for a passport, and making false citizenship claims.  Gentle was also convicted of misuse of a U.S. passport and misuse of a social security number. Denise Williams and Carolyn Willis-Casey were each convicted of one count of mail fraud. 

Frederick Williams faces up to 290 years in prison, plus two to four years consecutive for the two aggravated identity theft counts, and not more than $4.75 million in fines. Gentle faces up to 83 years in prison, plus two years consecutive for the aggravated identity theft count, and not more than $2 million in fines. Denise Williams and Willis-Casey face up to 20 years in prison and not more than $250,000 in fines. They are scheduled to be sentenced on April 18, beginning at 10:00 a.m.  

According to the court records and evidence submitted at trial, from about August 2010 to June 2012, defendants Frederick Williams and Jacqueline Gentle, citizens of Belize, conspired to register two fictitious companies, Luna Consulting and Centro America Export, with the State of Nevada, Department of Employment, Training, and Rehabilitation (DETR). After the companies were registered with DETR, the defendants conspired to submit fraudulent wage information for 16 fictitious employees, including themselves. After submitting the fraudulent wage information, the defendants submitted fraudulent unemployment compensation claims to DETR, and obtained unemployment compensation payments totaling approximately $218,000.  The unemployment compensation payments were transferred to the defendants by means of Nevada debit cards mailed to the fictitious employees, which the defendants and co-defendants used to withdraw cash from ATM’s.

Frederick Williams and Gentle also made false statements in applications for U.S. passports by stating that their father was a U.S. citizen and by stating in other government paperwork that they were U.S. citizens, when they well knew that they were not citizens of the United States but were citizens of Belize.

Frederick Williams and Gentle also falsely stated that they were U.S. citizens in applications for other government benefit programs such as social security, federal student aid (Pell grants), food stamps, and Medicaid. Williams was able to fraudulently obtain approximately $33,184 in social security benefits, $10,900 in Pell grants, $33,814 in food stamp benefits, and $1,132 in Medicaid benefits. 

Denise Williams fraudulently caused DETR to pay unemployment benefits in her name, and Carolyn Willis-Casey caused a notice for payment of unemployment benefits to be sent to her.

The case was investigated by the U.S. Department of State Diplomatic Security Service, the Offices of the Inspector General for the U.S. Department of Labor, Social Security Administration, U.S. Department of Agriculture, U.S. Department of Education, and U.S. Department of Health and Human Services, and Homeland Security Investigations.  It is being prosecuted by Assistant U.S. Attorney J. Gregory Damm.

This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force.  President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.  The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.  For more information about the task force visit: www.stopfraud.com.

The Justice Department today announced that a former Las Vegas Metropolitan Police Department Officer, Richard Thomas Scavone, 49, was indicted on charges of violating the civil rights of A.O., an unnamed victim, by using excessive force during an arrest and charges of obstruction of justice for falsifying a report.  The indictment was returned by a federal grand jury in the District of Nevada.

According to the indictment, on Jan. 6, 2015, while acting as a police officer, Scavone allegedly assaulted “A.O.” resulting in bodily injury.  The indictment alleges that Scavone grabbed the victim around the neck with his hand and threw A.O. to the ground; struck A.O. in the forehead with an open palm; twice slammed A.O.’s head onto the hood of his patrol vehicle; and slammed A.O. into the door of his patrol vehicle.  The obstruction charge alleges that on or about Jan. 6, 2015, Scavone knowingly falsified and made false entries in a document with the intent of impeding, obstructing and influencing the investigation and proper administration of a matter within the jurisdiction of the FBI.

If convicted, the defendant faces a maximum sentence of 10 years in prison and a $250,000 fine on the civil rights count, and a maximum sentence of 20 years and a $250,000 fine on the obstruction count.

An indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.

This case is being investigated by the FBI’s Las Vegas Division.  The case is being prosecuted by Trial Attorney Patricia Sumner of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorneys Nicholas Dickinson and Phillip Smith of the District of Nevada.

Scavone Indictment

LAS VEGAS, Nev. – A woman who served as the getaway driver for 13 commercial robberies in southern Nevada from December 2012 to March 2013, was sentenced today to 121 years in federal prison, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

Sesley Williams, 46, of Las Vegas, was sentenced by U.S. District Judge Andrew P. Gordon. Williams was convicted by a jury on Jan. 16, 2015, of eight counts of bank robbery, five counts of interference with commerce by robbery and five counts of brandishing a firearm in furtherance of a crime of violence.  Her co-defendant, Anthony Jordan, was also convicted by a jury in November 2014 of 13 counts of robbery and firearm-related charges, and was sentenced on March 18, 2015, to 60 years in prison. 

“We continue to work with our local law enforcement agencies to focus our prosecution efforts on the most impactful cases, including those targeting violent offenders,” said U.S. Attorney Bogden. “Using guns to rob commercial establishments is a federal offense, and if you commit this type of crime, you will be prosecuted, convicted, and sent to prison for a long time.”

The duo robbed six banks, three outlet mall stores and one other store in Las Vegas, two banks in Henderson, and one outlet mall store in Primm, Nev., between Dec. 28, 2012, and March 30, 2013.

This case was investigated by the Las Vegas Metropolitan Police Department, as part of the Safe Streets Task Force and Project Safe Neighborhoods program.  The case was prosecuted by Assistant U.S. Attorney Lisa Cartier-Giroux.

LAS VEGAS, Nev.  – A Las Vegas man who shipped illegal drugs from Nevada to other states, and used a false identity and structured bank deposits to hide over $850,000 that he made from his drug dealing, has been sentenced to 14½ years in prison, announced U.S. Attorney Daniel G. Bogden, for the District of Nevada. 

Damien Williams, 27, was sentenced on Dec. 29, by Senior U.S. District Judge Howard D. McKibben to 151 months in prison, plus two additional consecutive years in prison, for his guilty pleas to one count of conspiracy to distribute a controlled substance, one count of conspiracy to launder money, and one count of aggravated identity theft. The court found that Williams was a career offender because he has two prior felony convictions, for voluntary manslaughter and robbery, both involving the use of a firearm.

“We work with our local and federal law enforcement partners to identify and prosecute persons who are unlawfully using the mails to ship controlled substances to other states,” said U.S. Attorney Bogden. “As this case shows, using a false identity and structuring your bank deposits is not going to go unnoticed by our investigators.”  

According to the guilty plea agreement, between May 2012 and October 2013, Williams used the identification documents of “Goldie Cage” to obtain a Nevada identification card, rent an apartment, obtain an automobile loan, and open bank accounts Cage’s name. During the same period, Williams was sending packages of controlled substances, including codeine and marijuana, to persons in Tennessee and Texas.  In exchange for the controlled substances, Williams received approximately $856,000 in proceeds, which were deposited by persons in other states into the bank accounts that Williams had opened under Cage’s name.  Williams would then withdraw the funds and use them in furtherance of additional illegal drug activities.  The deposits and withdrawals were structured in amounts of less than $10,000 in order to avoid federal bank reporting requirements. 

The case was investigated by the Las Vegas Financial Crimes Task Force,  IRS Criminal Investigation, the U.S. Postal Inspection Service,  the Henderson Police Department, and the Las Vegas Metropolitan police Department.

LAS VEGAS, Nev. – A Mesquite, Nev. man who has a prior felony conviction for child molestation, pleaded guilty today to a child pornography charge for uploading images of child pornography onto the internet and possessing thousands of images and videos of child pornography, including child rape, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

“The private sector’s assistance in this case was extremely helpful to the identification and capture of this child predator,” said U.S. Attorney Bogden. “We encourage persons to report suspicious activity to law enforcement so that we can prosecute individuals who share disturbing images of children being raped and violently abused.”

Brian Michael Brewer, 37, pleaded guilty before Senior U.S. District Court Judge Howard D. McKibben to one count of receipt of child pornography.  Brewer is scheduled to be sentenced on March 22, 2016, and faces 15 to 40 years in prison and lifetime supervised release.          

According to the court records, in July 2015, an internet application business notified the National Center for Missing and Exploited Children (NCMEC) that one of their users with a Nevada internet address had uploaded images of suspected child pornography to their online bulletin board site, Padlet.  NCMEC notified the Las Vegas Metropolitan Police Department, and a detective with the Internet Crimes Against Children Task Force (ICAC) began investigating the matter.  It was determined that Brewer, a registered sex offender, was residing at the Mesquite address from where the pornography uploads were originating. Investigators executed a search warrant at the home on Sept. 23, 2015, and recovered a laptop computer and thumb drive from Brewer’s bedroom.  A forensic investigation revealed that almost over 10,000 images and 288 videos of child pornography were stored on the laptop and thumb drive, including images and videos of prepubescent children who were being raped by adult men and which portrayed sadistic, masochistic, and violent conduct.  Brewer has a prior felony conviction for child molestation in the state of Washington for sexually molesting a seven-year-old girl.

The case was investigated by the Las Vegas Metropolitan Police Department and Internet Crimes Against Children Task Force, and prosecuted by Special Assistant United States Attorney Allison L. Herr of the Nevada Attorney General’s Office.

The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.  For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

LAS VEGAS, Nev.  – Mahesh Kuthuru, M.D. was sentenced today by U.S. District Judge Jennifer A. Dorsey to two years and four months in prison, three years of supervised release, and 50 hours of community work service for unlawfully writing prescriptions for oxycodone and other highly addictive prescription painkillers to persons who did not have a medical need for them, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

Kuthuru, 47, of Henderson, pleaded guilty in October to one count of distribution of a controlled substance.  He is currently in federal custody serving a sentence for health care fraud and unlawful drug distribution imposed in the Northern District of New York.

“If you illegally and unlawfully use your medical license to divert pharmaceuticals you will be prosecuted, convicted, and sent to prison,” said U.S. Attorney Bogden.  “We continue to make the investigation and prosecution of medical professionals who are involved in illegal drug dealing a top priority in our office.”   

Kuthuru is a Nevada-licensed physician who operated Desert Pain Management in Las Vegas.  From July 6 to Nov.15, 2012, Kuthuru wrote prescriptions for Oxycodone, Percocet, MS Contin, Roxicodone and Methadone to undercover officers who posed as patients, and who did not have a medical necessity for the drugs.  During each visit, Dr. Kuthuru performed no or minimal physical exam, and failed to refer the patient to a specialist, physical therapist or other for further diagnosis.

The Centers for Disease Control and Prevention reports that since 1999, the amount of prescription painkillers prescribed and sold in the U.S. has nearly quadrupled, yet there has not been an overall change in the amount of pain that Americans report. Every day, 44 people in the U.S. die from overdose of prescription painkillers, and many more become addicted.

The case was investigated by the Nevada High Intensity Drug Trafficking Area (Nevada HIDTA) Pharm-Net Task Force, including the DEA, IRS Criminal Investigation, Las Vegas Metropolitan Police Department, Henderson Police Department, North Las Vegas Police Department, and the Nevada Division of Investigations.  The prosecution was handled by Assistant U.S. Attorney Crane M. Pomerantz.

LAS VEGAS – A local doctor who sold prescriptions for pain medications to persons who did not have a medical necessity for them, and deposited the cash proceeds in a manner designed to avoid tax laws, has been sentenced to two years in prison, three years of supervised release, and ordered to forfeit over $1.3 million, announced United States Attorney Daniel G. Bogden for the District of Nevada. 

Sebastian M. Paulin, Jr., 69, of Las Vegas, was sentenced on Monday, Dec. 14, by U.S. District Judge James C. Mahan. Paulin pleaded guilty in September to one count of distribution of a controlled substance and one count of structuring transactions to evade reporting requirements.  He was permitted to self-report to prison by March 24, 2016.

“Dr. Paulin’s conduct was particularly egregious, even among noted “dirty doctors” in Las Vegas,” said U.S. Attorney Bogden. “Dr. Paulin handed out prescriptions for pills like he was a “Pez” dispenser. We are continuing to work with our federal and local law enforcement partners to shut down these dangerous, unlawful “pill mill” operations in Nevada.”

According to the plea agreement, Dr. Paulin was a Nevada-licensed physician who operated the Dr. Paulin Medical Center in Las Vegas.  Dr. Paulin was the only physician working at the practice.  On Jan. 31, 2011, Dr. Paulin wrote a prescription for Percocet to an undercover officer posing as a patient.  The prescription lacked medical necessity and Dr. Paulin performed no or minimal physical exam and failed to refer the patient for further diagnosis, physical therapy, or diagnostic testing.  Dr. Paulin’s medical practice generated large amounts of cash.  Between February 7 and August 30, 2011, Dr. Paulin made 67 separate deposits totaling approximately $700,000 into personal bank accounts he controlled.  Each deposit was structured in such a manner as to evade the filing of currency transaction reports. 

According to the government’s sentencing memorandum, Dr. Paulin saw patients in two “shifts,” at 9am and 2pm. Patients arrived at the office as much as an hour before it opened. Large groups gathered outside the office and a “party atmosphere” ensued. Young and relatively healthy people engaged in loud talking, laughing, eating, and drinking. While waiting, patients exchanged advice on how to receive certain drugs from Paulin, about selling pills on the street for profit, and the best pharmacies at which to get their prescriptions filled. On one occasion, two individuals smoked marijuana in line outside of Paulin’s office.

Dr. Paulin is one of six doctors who have been convicted federally in Nevada over the last three years with unlawfully distributing prescription painkillers.  Another is scheduled for trial in May 2016. 

This case was investigated by the Nevada High Intensity Drug Trafficking Area (Nevada HIDTA) Pharm-Net Task Force, including the DEA, IRS Criminal Investigation, Las Vegas Metropolitan Police Department, Henderson Police Department, and Nevada Highway Patrol, and prosecuted by Assistant U.S. Attorneys Crane M. Pomerantz and Cristina Silva

LAS VEGAS, Nev. – A Miami man has been sentenced to nine years in prison, three years of supervised release, and ordered to pay over $50 million in restitution for his guilty pleas to racketeering and identity theft crimes as part of “Operation Open Market,” announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, United States Attorney Daniel G. Bogden of the District of Nevada, and Special Agent in Charge Joseph Macias for HSI Los Angeles, which oversees the agency’s efforts in southern Nevada.

Alexander Kostyukov, aka “Temp”, aka “KLBS,” 30, a resident of Miami at the time of arrest, but originally from Russia, was sentenced on Tues., Dec. 8, 2015, by U.S. District Judge Andrew P. Gordon. Kostyukov pleaded guilty to participation in a racketeer influenced corrupt organization (RICO,) conspiracy to engage in a RICO, and three counts of unlawfully trafficking in and production of counterfeit identification documents.  Specifically, Kostyukov was a vendor of “cashout services” in the organization and provided members a way to transfer or launder the funds that they had unlawfully obtained from the stolen bank and credit card accounts.  Kostyukov received a fee of between 45% and 62% of the total amount laundered for providing cashout services to a member. 

“Millions of dollars and countless amounts of data were stolen from the victims by members of this international conspiracy,” said U.S. Attorney Bogden.  “We have now convicted 33 persons, most of who are sitting in federal prison.  We will continue to work with our federal and international law enforcement partners to arrest, prosecute and bring to justice the remaining defendants, no matter where they are located.”

“This lengthy sentence, and the significant prison terms imposed on others convicted in connection with in this far-reaching scheme, should serve as a sobering warning about the consequences awaiting those engaged in large-scale financial fraud,” said Special Agent in Charge Macias. “The global organization identified in this case was responsible for harming countless innocent victims and stealing tens of millions of dollars. Working with its enforcement partners, HSI will continue to aggressively target cyber thieves to ensure the perpetrators face the full weight of the law.”

“Operation Open Market” targeted an organization known as “Carder.su” whose members, also known as “carders,” were involved in large scale trafficking of compromised credit card account data and counterfeit identifications and credit cards, as well as money laundering, narcotics trafficking and various types of computer crime.  The organization operated an Internet web portal called a forum, where members could purchase the illicitly obtained data and share knowledge of various fraud schemes.  A second forum was also created to vet incoming new members.  The forums were generally hosted within the former Soviet Union and the upper echelon of the organization resides within the former Soviet Union.  In July 2011, the organization had an estimated 5,500 members.  A special agent initiated an undercover investigation called Open Market and assumed the identity as a member of the organization when it was in its infancy.  

Members of the organization had different roles, including moderators who directed other members in carrying out activities; reviewers who examined and tested products, services and contraband; vendors who advertised and sold products, services and contraband; and members.  Members were required to successfully complete a number of security features designed to protect the organization from infiltration by law enforcement or members of rival criminal organizations. 

Fifty-six persons were charged in four separate indictments in Operation Open Market. To date, 33 defendants have been convicted, one is pending trial, and the rest are fugitives.  

The cases were investigated by HSI and the U.S. Secret Service, and are being prosecuted by Assistant U.S. Attorneys Kimberly M. Frayn and Andrew W. Duncan, and Trial Attorneys Kelly Pearson and Catherine Dick of the U.S. Department of Justice Organized Crime and Gang Section.  

This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force.  President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.  The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.  For more information about the task force visit: www.stopfraud.com.

A federal jury in Las Vegas convicted two men of conspiracy, wire fraud and securities fraud yesterday for their roles in an approximately $10 million international investment fraud scheme involving numerous victims.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada and Special Agent in Charge Laura A. Bucheit of the FBI’s Las Vegas Field Office made the announcement. 

Anthony Brandel, 48, of Las Vegas, and James Warras, 69, of Waterford, Wisconsin, were each convicted of one count of conspiracy, nine counts of wire fraud and eight counts of securities fraud following a five-day trial before Senior U.S. District Judge Kent J. Dawson of the District of Nevada.  The defendants are scheduled to be sentenced on March 2, 2016, by Judge Dawson.

According to evidence presented at trial, Brandel and Warras conspired with others in the United States and Switzerland to promote investments and loan instruments that they knew to be fraudulent.  The conspirators told victims that, for an up-front payment, a Swiss company known as the Malom (Make A Lot of Money) Group AG would provide access to lucrative investment opportunities and substantial cash loans.  To effectuate this scheme, the defendants fabricated bank documents purporting to show that the Malom Group had large amounts of money in several European financial institutions.  And as part of an effort to defraud an investor who held an equity stake in a corporation that had filed for bankruptcy, Warras submitted a sworn affidavit to the U.S. Bankruptcy Court in the District of New Hampshire in which he made false statements about the value of certain bonds that the defendants promoted to the investor.   

Brandel and Warras were charged together with four other defendants, including Joseph Micelli, 62, a former California attorney who pleaded guilty to conspiracy to commit wire fraud and securities fraud and is set to be sentenced on Feb. 23, 2016.  The remaining defendants are either at large or awaiting extradition from other countries.    

The FBI’s Las Vegas Field Office investigated the case.  Assistant Chief Brian R. Young and Trial Attorneys Melissa Aoyagi and Anna G. Kaminska of the Criminal Division’s Fraud Section are prosecuting the case with assistance from the Criminal Division’s Office of International Affairs and the U.S. Attorney’s Office for the District of Nevada.  The Securities and Exchange Commission’s Enforcement Division, which referred the matter to the department and is conducting a parallel civil enforcement investigation, also provided valuable assistance.   

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.  Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations.  Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.  For more information on the task force, visit www.stopfraud.gov.

LAS VEGAS, Nev. – U.S. Attorney Daniel G. Bogden announced today that the Nevada U.S. Attorney’s Office collected approximately $22.5 million in Fiscal Year (FY) 2015 related to criminal, civil and asset forfeiture actions.  Of this amount, approximately $­­­­­5 million was collected in criminal actions, $2.5 million was collected in civil actions, and $15 million was collected in asset forfeiture actions in FY 2015. 

The District of Nevada also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $2.7 million in cases pursued jointly with these offices. 

“Our office has been aggressive in enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims,” said U.S. Attorney Bogden.  “These collections are used to help crime victims and for a variety of other law enforcement purposes,” said U.S. Attorney Bogden. “Our FY 2015 collections substantially exceeded the total appropriated budget for our office for the entire year.”  

U.S. Attorney General Loretta E. Lynch also announced today that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015.  The $23.1 billion in collections in FY 2015 represents more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 94 U.S. Attorneys’ offices and the main litigating divisions in that same period.

Below are summaries of two cases in which the U.S. Attorney’s Office for the District of Nevada collected significant amounts of money during FY 2015.

In December 2014, Concierge Compounding Pharmaceuticals (CCP) paid $273,500 to the U.S. Attorney’s Office for Nevada and the U.S. Department of Justice to settle claims on behalf of the Drug Enforcement Administration and the Defense Health Agency alleging that CCP had shipped compounded pharmaceuticals, many of them controlled substances, outside Nevada without being licensed as a pharmacy in the states where the drugs were received.

In FY 2015, we collected over $7.5 million from defendants Nathan Stoliar and James Jariv, who pleaded guilty in 2015 to conspiracy to defraud the United States, money laundering, and wire fraud, and were sentenced to prison. The money was collected through the seizure and criminal forfeiture of assets, such as bank accounts, jewelry, and real property, which were the proceeds of their complex fraud scheme involving renewable energy credits.

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. – A northern California man who lied on federal gun forms to unlawfully purchase approximately 90 firearms in Nevada, was sentenced today to 8½ years in federal prison and three years of supervised release, announced U.S. Attorney Daniel G. Bogden for the District of Nevada and Special Agent in Charge Jill A. Snyder of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) San Francisco Field Division. 

Edward Jameson Purry, II, 30, of Oakland, Calif., was sentenced by U.S. District Judge Jennifer A. Dorsey. Purry was convicted by a federal jury in Las Vegas in March 2015 of four counts of illegal acquisition of a firearm.

“This case is of significance because the firearms Purry purchased ended up in the hands of criminals,” said U.S. Attorney Bogden. “The defendant’s conduct was incredibly reckless and irresponsible and has placed the community in danger for years to come.”   

“Today’s sentencing represents an example of ATF using its multitude of resources to investigate firearms trafficking,” said Special Agent in Charge Snyder. “Purry purchased about 90 guns, which he sold for a profit of about $100,000. Seventeen of those firearms have been recovered by local law enforcement and were directly related to criminal activity. ATF will continue to pursue firearms trafficking investigations, as they are the primary source and supply of arming violent criminals in our communities.”

According to the court records and evidence submitted at trial, between about June 2013 and September 2013, Purry made false statements on ATF forms to purchase approximately 90 handguns from licensed gun dealers in Las Vegas and Reno. Purry represented on the forms that he was a resident of Nevada when in fact he was a resident of California. Purry sold the majority of the firearms for double their price on the streets of Oakland, including to an individual who he believed was transporting the firearms to Mexico. 

This case was investigated by ATF and the United States Postal Inspection Service, and prosecuted by Assistant U.S. Attorney Phillip N. Smith, Jr.