District of Nevada

A Las Vegas man pleaded guilty today to conspiracy 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, pleaded guilty before U.S. District Judge Kent J. Dawson of the District of Nevada to conspiracy to commit wire fraud and securities fraud.  His sentencing is scheduled for Feb. 23, 2016.

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 and are awaiting trial or extradition.          

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 prosecuted 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 of Justice 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. – Six persons have been charged with conspiracy, fraud, filing false claims, and aggravated identity theft, for using the information of deceased persons to file false tax returns so they could obtain millions in fraudulent IRS tax refunds, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.  

Andrew Hanzelic, 45, of Las Vegas, Kelly Coyan, 53, of Lenexa, Kan., Brian Summers, 32, of Las Vegas, Ronald Kelly, 40, of Las Vegas, Clint Tarrant, 54, of Las Vegas, and Terry Williamson, 59, of Las Vegas, are each charged in a criminal indictment with one count of conspiracy to commit mail fraud and wire fraud.  Hanzelic, Coyan, Summers and Kelly, are also charged with false claims and aggravated identity theft, and Tarrant is also charged with theft of government funds.

“A major priority of the Department of Justice is prosecuting people who use stolen identities to steal money from the United States Treasury by filing fake tax returns that claim substantial tax refunds,” said U.S. Attorney Bogden. “Working to stop Stolen Identity Refund Fraud, or SIRF, is vital because these schemes threaten to disrupt the orderly administration of our income tax system for hundreds of thousands of law abiding taxpayers and have cost the United States Treasury billions of dollars.”

According to the indictment, the defendants allegedly used the personal identifiers of deceased victims to file false tax returns and obtain fraudulent tax refunds from the U.S. Treasury.  Hanzelic allegedly obtained information of deceased persons, including their dates of birth, last known addresses, and Social Security numbers, from various online genealogical databases and provided it for a fee to the co-schemers. The co-schemers then made or caused to be made fraudulent Nevada driver’s licenses, Social Security cards and W-2’s in the names of the victims and used the false identities to file the fraudulent tax returns with the IRS. The defendants used several bank accounts and debit cards to receive the refunds.  Defendants Hanzelic and Williamson managed the accounts and paid the co-schemers a salary from the bank accounts they controlled.  The defendants allegedly obtained more than $2.7 million in fraudulent tax refunds using this scheme.

Defendants Hanzelic and Summers pleaded not guilty to the charges and are currently in federal custody pending trial.

Defendant Williamson is scheduled for an initial court appearance and arraignment at 3:00 p.m. today before U.S. Magistrate Judge Cam Ferenbach.

Defendant Coyan is scheduled for an arraignment next Tues., Nov. 10, at 3:00 p.m. before U.S. Magistrate Judge Nancy J. Koppe.

Defendants Kelly and Tarrant are not yet in federal custody on the charges.

If convicted, the defendants face up to 20 years in prison and $250,000 in fines on the conspiracy charge, up to five years in prison and $250,000 in fines on each false claims charge, two years in prison, which must run consecutive to the other counts, and $250,000 in fines on the aggravated identity theft charges, and up to 10 years in prison and $250,000 in fines on each theft of government property count.

The case is being investigated by IRS Criminal Investigation, and prosecuted by Assistant U.S. Attorneys Kathryn C. Newman and Kimberly M. Frayn.

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 defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

LAS VEGAS, Nev. – A local woman who worked as a laboratory technician at a Las Vegas pediatric cardiology practice has been indicted by the federal grand jury on charges that she unlawfully obtained the personal identifying information of a patient and used it to apply for credit cards without the patient’s knowledge, announced U.S. Attorney Daniel G. Bogden for the District of Nevada. 

Sherice Joan Williams, 41, of North Las Vegas, Nev., is charged with one count of illegal use and disclosure of patient health information and one count of aggravated identity theft.  At an arraignment on Oct. 27, Williams pleaded not guilty to the charges and was temporarily detained pending a hearing at 3:00 p.m. today before U.S. Magistrate Judge Peggy A. Leen.

“Persons who work in the health care industry have special access to personal identifying and medical information, and have a responsibility and duty to protect and not use that information for fraudulent purposes,” said U.S. Attorney Bogden. “We will use the available federal health care fraud and identity theft laws to prosecute persons who knowingly and willingly violate them.”

According to the allegations in the indictment, between about Dec. 1, 2014, and Jan. 27, 2015, Williams, while working as a laboratory technician at the health care provider, knowingly and without authorization, accessed the health and personal identifying information of a patient and applied for personal credit cards with the information.

If convicted of the charges, Williams faces up to 10 years in prison on the health information charge and a minimum of two years consecutive on the aggravated identity theft charge, plus maximum fines of $250,000 on each count.

The case is being investigated by the FBI and Henderson Police Department, and prosecuted by Assistant U.S. Attorney Crane M. Pomerantz. 

If you think someone is using your personal information to open accounts, file taxes, or make purchases, visit www.IdentityTheft.gov to report and recover from identity theft.

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.  – Mahesh Kuthuru, M.D., 47, of Henderson, Nev. pleaded guilty today to unlawfully writing prescriptions for oxycodone and other highly addictive prescription painkillers, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

Kuthuru, who was indicted in October 2014, pleaded guilty to one count of distribution of a controlled substance, and is scheduled to be sentenced by U.S. District Judge Jennifer A. Dorsey, on Dec. 21, 2015, at 11:00 a.m.  Kuthuru faces not more than 20 years in prison and a fine of up to $1 million.

According to the plea agreement, Kuthuru is a Nevada-licensed physician who operated a medical practice known as 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.

“We will continue to identify and prosecute bad doctors who are using their medical licenses to illegally deal drugs,” stated U.S. Attorney Bogden. “Overprescribing and falsely prescribing with no medical need leads to more abuse and more overdose deaths.”

This case is being 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, and is being prosecuted by Assistant U.S. Attorney Crane M. Pomerantz.

LAS VEGAS, Nev. – Five men have been indicted by the federal grand jury on charges that they fraudulently obtained more than $2.5 million from small business owners for grant funding and services which were never provided and never intended to be provided, announced U.S. Attorney Daniel G. Bogden for the District of Nevada and Laura A. Bucheit, Special Agent in Charge of the FBI for Nevada.

Pierre Franco-Ramos, 33, and Danny Goodman, 68, of Las Vegas, Victor Vazquez, 31, of Henderson, Andre Jackson, 43, of North Las Vegas, and Ronald Defusco, 48, of Johnston, Rhode Island, are charged with one count of conspiracy to commit mail fraud and wire fraud.  Additionally, Franco-Ramos and Vazquez are charged with eight counts of mail fraud and eight counts of wire fraud; Goodman is charged with four counts of mail fraud and three counts of wire fraud; Defusco is charged with one count of mail fraud; and Jackson is charged with one count of wire fraud.

Franco-Ramos and Vazquez were arrested in Las Vegas this morning and are scheduled to appear before U.S. Magistrate Judge Carl W. Hoffman at 3:00 p.m. today for an initial appearance and arraignment. The three other defendants are not yet in custody.

"Advance fee fraud schemes are common and perpetrated for the sole purpose of ripping off unsuspecting victims to enrich greedy fraudsters," said U.S. Attorney Bogden.  “We are currently prosecuting a number of these cases in which the defendants prey on unsuspecting business owners who are seeking grants for their businesses.  If you think you have been victimized by persons committing this sort of crime, please contact the FBI.”

“Today’s arrests emphasize the FBI’s dedication to investigate financial crimes and prosecute those who prey upon unsuspecting citizens,” said Special Agent in Charge Bucheit.

            According to the indictment, from about 2009 to February 2012, the defendants and their coconspirators allegedly induced small business owners to give them money for services that the small business owners thought they needed to secure grant funding. In reality, the defendants did not intend to or provide the services or the grant funding, and the true purpose of the money they received from the business owners was to personally enrich the defendants.

Among other things, the indictment alleges that the defendants told the business owners they would assist them with business plans, web services, non-profit status, and other paperwork that was necessary to obtain the grant funding. The defendants also made numerous false representations and promises to the small business owners, operated under multiple and evolving business names, and changed the business’ physical location to dissociate themselves from the clients’ complaints that were made on the internet and with law enforcement. Using this fraud scheme, the defendants allegedly fraudulently obtained more than $2.5 million from the victims.

If convicted, the defendants face a maximum of 20 years in prison and a $250,000 fine on all counts.

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

The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are 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 was arrested in 2014 as part of a joint law enforcement effort to capture child predators in southern Nevada, was sentenced today to 10 years in prison and 25 years of supervised release for recruiting and enticing a 15-year-old girl to travel across state lines to work as a prostitute in Las Vegas, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

Deandre Maurice Parker, 27, who was captured as part of “Operation Protect the Powerless,” was sentenced by Chief U.S. District Judge Gloria M. Navarro.  Parker pleaded guilty in June to one count of sex trafficking of a minor.

“Defendant sexually exploited and victimized a 15-year-old girl by transporting her to Las Vegas so that she could act as a prostitute,” said U.S. Attorney Bogden. “Under federal law, the crime committed by the defendant is a crime of violence involving a child. We will continue to aggressively investigate and prosecute cases involving the exploitation of minors as part of our implementation of the Project Safe Childhood initiative in Nevada.”                        

According to the court records, the 15-year-old female victim initially met Parker in 2013 in San Bernardino, Calif. For several months, Parker stayed in touch with the victim through social media websites. In June 2014, the victim ran away from the group home where she resided and re-connected with Parker. Parker recruited her to work as a prostitute, teaming her with another prostitute who worked for him to teach the girl the ropes. In August 2014, Parker moved the victim to Los Angeles to work as a prostitute, but when that did not prove to be profitable enough, Parker returned with the victim to San Bernardino and then to Las Vegas in September 2014 for prostitution. Parker used the website Backpage.com to advertise the victim’s services as a prostitute.  The victim was arrested by Las Vegas Metropolitan Police Department detectives in October 2014, and agreed to cooperate with authorities.

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

The case was prosecuted by Special Assistant United States Attorney Allison L. Herr of the Nevada Attorney General’s Office. 

PSC is a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about PSC, please visit www.usdoj.gov/psc.

LAS VEGAS, NEV. – Federal charges have been filed against four men and one woman alleging they are part of a large-scale heroin trafficking organization that operated in the Las Vegas area since December 2014, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

Juan Almeda-Vazquez, 27, Maria Landin-Hernandez, 28, Rafael Cruz-Rodriguez, 41, Fausto Cruz-Ochoa, 22, and Julian Cruz-Flores, 24, all of Las Vegas, are charged with conspiracy to distribute heroin.  All of the defendants except Cruz-Rodriguez, who is in state custody on unrelated charges, were arrested yesterday by federal agents and made an initial appearance in court today before U.S. Magistrate Judge Nancy J. Koppe.  They were detained pending a preliminary hearing on Oct. 20.

A criminal complaint alleges that the defendants are involved in large-scale sales, transportation and distribution of heroin and other controlled substances in the Las Vegas area.  Almeda-Vazquez is the leader of the organization, and the other four defendants are narcotics runners.  Between December 2014 and Oct. 5, 2015, they allegedly distributed about 1.5 kilograms of heroin in Las Vegas. DEA undercover officers made multiple controlled purchases of heroin from the defendants, and also seized approximately ½ kilogram of heroin, several hundred small balloons and rubber bands, and over $5,000 in cash during a search of an apartment in Las Vegas where two of the defendants were arrested on Oct. 5.

The case is being investigated by a DEA-led task force consisting of agents, officers and detectives from the DEA, FBI, IRS Criminal Investigation, Las Vegas Metropolitan Police Department, and North Las Vegas Police Department.  The case is being prosecuted by Assistant United States Attorney Amber M. Craig. 

The public is reminded that a criminal complaint is a preliminary charging document 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 Las Vegas man has been sentenced to 112 months in prison for receiving and possessing over 200 images and videos of child pornography, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

 “Many of the images and videos possessed and shared by the defendant depicted child rape,” said U.S. Attorney Bogden. “The images and videos were shared online through the use of a peer-to-peer network, which results in the re-victimization of the victims over and over again.”       

Gregory Akel, 31, was sentenced on Oct. 1, by Senior U.S. District Judge Lloyd D. George.  Akel was also placed on supervised release for the rest of his life and must pay $3,000 in restitution to one of the victims used in the pornographic images.  Under the Sex Offender Registration and Notification Act, Akel will also be required to register as a sex offender where he lives, works, and goes to school.  Akel pleaded guilty in March to one count of receipt of child pornography.        

According to the court records, in March 2013, Las Vegas Metropolitan Police Department investigators working on the Internet Crimes Against Children Task Force (ICAC) determined that Las Vegas resident Akel was sharing child pornography on the file sharing network known as ARES. In August, investigators executed a search warrant at his apartment, and seized computers and equipment containing 39 images and 107 videos of child pornography.  In early 2014, Special Agents with Homeland Security Investigations also determined that Akel was a source for child pornography on the ARES network, and that Akel had moved to a new residence in Las Vegas.  In April 2014, a search warrant was executed at Akel’s new residence, and investigators seized computers and other equipment containing more videos and images of child pornography.  Ultimately, investigators determined that Akel possessed a combined total of 149 videos and 54 images of child pornography as a result of both searches.  Some of the files depicted prepubescent children or children under the age of 12 crying and being raped.

The case was investigated by Las Vegas Metropolitan Police Department, Internet Crimes Against Children Task Force, and Homeland Security Investigations, 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."

A former Las Vegas resident was convicted by a federal jury in Nevada today of perjury, making false statements and obstruction of justice in the course of an investigation into a scheme to fraudulently take control of homeowners’ associations (HOAs) in the Las Vegas area.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Laura A. Bucheit of the FBI’s Las Vegas Division, Special Agent in Charge John Collins of Internal Revenue Service Criminal Investigation’s (IRS-CI) Las Vegas Field Office and Sheriff Joseph Lombardo of the Las Vegas Metropolitan Police Department made the announcement.

Stephanie Markham, 57, of Dobbs Ferry, New York, was found guilty of one count of perjury, one count of making false statements and one count of obstruction of justice following a three-day trial in the District of Nevada.  Sentencing is scheduled for Jan. 5, 2016, before U.S. District Judge James C. Mahan of the District of Nevada, who presided over the trial.

Evidence presented at trial established that, in 2006, Markham participated in a scheme to take over the Jasmine Ranch HOA for the purpose of awarding the HOA’s construction and legal work to other members of the conspiracy.  The evidence showed that Markham received a one percent property interest in a condominium unit at Jasmine Ranch, and agreed to run for the Jasmine Ranch HOA board of directors to advance the goals of fraudulent takeover scheme.

In October 2012, Markham was subpoenaed to testify before a grand jury in the District of Nevada investigating the HOA takeover scheme, and was interviewed by an FBI agent beforehand.  Evidence at trial established that, both in her FBI interview and in her testimony before the grand jury, Markham falsely denied knowing about the Jasmine Ranch HOA or the takeover scheme.

Markham is the 41st defendant convicted in the HOA takeover scheme investigation.  Thirty-six defendants have pleaded guilty and, in March 2015, four defendants were found guilty after trial.

The case is being investigated by the FBI, IRS-CI and the Las Vegas Metropolitan Police Department’s Criminal Intelligence Section.  The case has been prosecuted by Trial Attorneys Thomas B.W. Hall and Alison Anderson, and Deputy Chief Charles La Bella of the Criminal Division’s Fraud Section.

LAS VEGAS, Nev. - The U.S. Justice Department today awarded a Nevada non-profit organization, the Nevada Network Against Domestic Violence, an $800,000 grant to improve arrest outcomes in domestic violence cases in Clark County and other areas of Nevada, announced U.S. Attorney Daniel G. Bogden for the District of Nevada. The announcement was made by Deputy Attorney General Sally Quillian Yates at the Justice Department’s Second Annual Violence Reduction Network Summit in Detroit, Mich.

“It is critical that we enhance the partnerships between criminal justice agencies, victim services providers, and community organizations in order to effectively investigate and prosecute domestic violence crimes,” said U.S. Attorney Bogden. “I am pleased to see that Nevada was one of the states to receive this very important grant award.”

In addition to the Nevada Network Against Domestic Violence, 43 other organizations across the country received awards totaling over $26 million from the Department of Justice’s Office on Violence Against Women.

The Nevada Network Against Domestic Violence, located in Reno, Nev., will collaborate with the State of Nevada Attorney General’s Office and other non-governmental victim organizations to implement the grant over a three-year period.  The award will be used to support five victim advocates, and to identify legislative and policy barriers and develop best practice recommendations on the arrest and prosecution of domestic violence cases.

Created in 1995, the Office on Violence Against Women (OVW) provides federal leadership in developing the nation’s capacity to reduce violence against women through the implementation of the Violence Against Women Act (VAWA) and subsequent legislation. OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. To learn more, visit www.justice.gov/ovw.

WASHINGTON – Alex Jariv, 28, of Las Vegas, Nevada, was sentenced today in federal court to 30 months in prison and three years of supervised release for his role in illegal schemes to generate and sell fraudulent biodiesel credits, marking the culmination of nearly four years of investigations and prosecutions for this complex international fraud scheme.  Alex Jariv pleaded guilty to one count of conspiracy to commit wire fraud, make false statements and launder monetary instruments.  Jariv was ordered to forfeit $491,061 in previously seized cash, an SUV, real estate and the contents of several bank accounts in the United States and abroad that were some of his proceeds of the conspiracy.

Alex Jariv is the third person to be sentenced for their role in the scheme.  James Jariv, 64, of Las Vegas, Nevada, was sentenced in August to ten years in prison for his role in the illegal schemes to generate fraudulent biodiesel credits and for his role in exporting biodiesel without providing biodiesel credits to the United States.  James Jariv was also ordered to make restitution in the amount of $6,345,830 and to forfeit between $4 to $6 million in cash and other assets.

Nathan Stoliar, 64, of Australia, was sentenced to two years in prison in April for his role in both conspiracies and ordered to pay more than $1.4 million in restitution and to forfeit of $4 million in cash.  James Jariv and Stoliar both pleaded guilty to one count of conspiracy, one count of conspiracy to engage in money laundering, two counts of wire fraud and one count of making false statements under the Clean Air Act.

“We simply will not tolerate and will vigorously prosecute schemes like this one, that defraud a program designed to strengthen our nation’s petroleum independence and improve our air quality,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division.

“Mr. Jariv is the third defendant sentenced to prison in this complex and egregious scheme to defraud fuel suppliers and the United States,” said U.S. Attorney Daniel Bogden for the District of Nevada.  “Through the tenacious work of our investigators and prosecutors, we also were able to seize and forfeit millions of dollars from numerous bank accounts, as well as real property in Nevada and California, jewelry and other assets.”

“The Renewable Fuel Standard helps reduce the nation’s impact on climate change and lessens our dependence on foreign oil and this case shows that EPA takes seriously its responsibility to bring violators of this important program to justice,” said Special Agent Jay Green, Special Agent in Charge of EPA’s criminal enforcement program in Nevada. “In order to ensure a level playing field, it’s vital that companies following the law don’t have to compete with those that break it.”

The Energy Independence and Security Act of 2007 created a number of federally-funded programs that provided monetary incentives for the production and use of renewable fuels such as biodiesel in the United States.  Biodiesel producers and importers can generate and attach credits known as renewable identification numbers (RINs) to the gallons of biodiesel they produce or import.  Because certain companies, such as companies that sell transportation fuel in the United States, need RINs to comply with regulatory obligations, RINs have significant market value.  They are routinely bought and sold in the marketplace.

Beginning around September of 2009, James Jariv and Stoliar operated and controlled a company – City Farm Biofuel in Vancouver, British Columbia, Canada – that represented itself as a producer of biodiesel from “feedstocks” such as animal fat and vegetable oils.  James Jariv and Stoliar also formed a company called Canada Feedstock Supply – that represented itself as City Farm’s supplier of feedstocks necessary to produce biodiesel.  James Jariv operated and controlled a company based in Las Vegas called Global E Marketing (GEM).

Alex Jariv worked for and on behalf of these companies.  Using these three and other closely-held companies, the three defendants claimed to produce biodiesel at the City Farm facility and to import and sell biodiesel to GEM and then generated and sold RINs based upon this claimed production, sale and importation.  In reality, no biodiesel produced at City Farm was ever imported and sold to GEM as claimed.  The Jarivs and Stoliar used GEM to claim to blend the biodiesel with petroleum diesel, allowing them to sell the RINs separately from any actual biodiesel.  Using this scheme, the three men falsely claimed to import, purchase and blend more than 4.2 million gallons of biodiesel.  They then sold the RINs, and fraudulently generated more than $7 million.

James Jariv and Stoliar also purchased and resold RIN-less B-99 biodiesel as B-100 biodiesel, which allowed them to charge substantially more for this product than if it has been accurately labeled.  They exported significant amounts of the RIN-less B-99 they bought in the United States to Canada and Australia.  They then sold the biodiesel in those countries and conspired to not acquire and provide RINs to the United States for these exports as they were required to do by law.  In doing so, James Jariv and Stoliar failed to give to the United States RINs worth in excess of $34 million, keeping this money for themselves instead.

Finally, James and Alex Jariv and Stoliar conspired to launder the proceeds of their crimes, utilizing foreign banking institutions and complex financial transactions to promote their illegal schemes and distribute the proceeds of their crimes.  Accounts were utilized in Canada, Nevada and Australia and transactions between the defendants’ closely-held companies were described as other legitimate transactions involving biodiesel, when in reality they were not.

The investigation into the Jarivs’ and Stoliar’s activities was the result of collaborative work by the EPA’s Criminal Investigation Division and the FBI, with assistance from the United States Secret Service, the Internal Revenue Service-Criminal Investigations, the Department of Homeland Security and the Royal Canadian Mounted Police.

The case was prosecuted by Wayne D. Hettenbach of the Environmental Crimes Section, U.S. Department of Justice, Assistant U.S. Attorneys Crane M. Pomerantz and Daniel D. Hollingsworth of the U.S. Attorney’s Office in Nevada and Assistant Deputy Chief Darrin L. McCullough of the Justice Department’s Criminal Division, Asset Forfeiture and Money Laundering Section, with the assistance of the Justice Department’s Office of International Affairs and the U.S. Attorney’s Office for the Southern District of Texas.

LAS VEGAS, Nev. - The U.S. Justice Department today awarded the Las Vegas Metropolitan Police Department (LVMPD) a $250,000 grant to support its body-worn camera program, announced U.S. Attorney Daniel G. Bogden for the District of Nevada. The announcement was made by U.S. Attorney General Loretta E. Lynch at the White House Champions of Change event which honored law enforcement officers and young people who are leading efforts to improve relationships between law enforcement and youth in their communities.

“The U.S. Attorney’s Office and Department of Justice are committed to doing our part to assist local police departments with their policing issues in an ever-changing environment,” said U.S. Attorney Bogden. “We will continue to support them in exploring and expanding the use of body-worn cameras in order to enhance transparency, accountability and credibility.”

The LVMPD was one of 73 police departments in 32 states to share in the more than $19.3 million in funding made by the Department’s Office of Justice Programs. The grants require a 50/50 in-kind or cash match, and can be used to purchase equipment and require that applicants establish a strong implementation plan and a robust training policy before purchasing cameras. The long term costs associated with storing this information will be the financial responsibility of each local agency.

OJP has launched a comprehensive online toolkit that consolidates research, promising practices, model policies and other tools that address issues surrounding body-worn cameras, including implementation requirements; image retention; concerns of policy makers, prosecutors, victim and privacy advocates; and community engagement and funding considerations. The toolkit is available at: https://www.bja.gov/bwc/.

OJP is also collecting data on body-worn camera usage through surveys of law enforcement agencies.  It is also designing data collection forms for future surveys of prosecutors and public defenders to measure how body-worn camera footage is being used by the courts in criminal cases. For additional information about the BWC Pilot Implementation Program, visit http://www.bja.gov/bwc/pdfs/BWCPIP-Award-Fact-Sheet.pdf.

OJP, headed by Assistant Attorney General Karol V. Mason, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six components: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP can be found at www.ojp.gov.

LAS VEGAS, Nev. – Three northern Nevada Indian tribes will receive over $2.7 million in U.S. Department of Justice grants to assist them with public safety and community policing issues, announced U.S. Attorney Daniel G. Bogden for the District of Nevada. The awards to the Nevada tribes were included in a national announcement made today by the U.S. Department of Justice as part of its ongoing initiative to increase engagement, coordination and action on public safety in tribal communities.  The announcement stated that 206 awards totaling more than $97 million were to American Indian tribes, Alaska Native villages, tribal consortia and tribal designees.

“I am very pleased that Nevada tribes have received this much needed financial assistance from the Department of Justice,” said U.S. Attorney Bogden. “We will continue to consult with tribal leaders to make sure our resources are reaching those who need them and making the biggest positive impact possible.”

Nevada tribes receiving awards are the Fallon Paiute-Shoshone Tribe, Shoshone-Paiute Tribes of Duck Valley, and the Washoe Tribe of Nevada and California.  The Fallon Paiute-Shoshone Tribe received one award totaling $188,695 for public safety and community policing.  The Shoshone-Paiute Tribes of Duck Valley received two awards, one for $724,891 for alcohol and substance abuse and the other for $406,828 for violence against women. The Washoe Tribe of Nevada and California received two awards, one for $1 million for corrections and the other for $372,123 for its tribal youth program.  More information on the awards is available at http://www.justice.gov/opa/pr/justice-department-awards-over-97-million-improve-public-safety-and-victim-services-american.

This week, U.S. Attorney Bogden has also been traveling to tribal lands and reservations in northern Nevada with two prosecutors from his office and a representative from the Bureau of Indian Affairs (BIA) to meet with Nevada tribal leaders on issues of concern, including public safety, investigations, victim advocacy, training, outreach, and violence against women. These annual meetings help federal prosecutors and investigators understand how we can better serve and support our tribal partners.

The tribal grant awards are made through DOJ’s Coordinated Tribal Assistance Solicitation (CTAS), a single application for tribal-specific grant programs.  DOJ developed CTAS through its Office of Community Oriented Policing Services, Office of Justice Programs and Office on Violence Against Women and administered the first round of consolidated grants in September 2010.  Since then, more than 1,400 grants totaling more than $620 million have been provided to enhance law enforcement practices, victim services and sustain crime prevention and intervention efforts in nine purpose areas; public safety and community policing; justice systems planning: alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; and tribal youth programs.

Today’s award list is available at http://www.justice.gov/tribal/file/771691/download.  A fact sheet on CTAS is available at /media/791821/dl?inline.

LAS VEGAS, Nev. – On Tuesday, Sept. 8, U.S. District Judge Larry R. Hicks sentenced a Reno man to 12½ years in prison and five years of supervised release following his arrest and conviction for possessing approximately one kilogram of pure methamphetamine in his vehicle,  announced U.S. Attorney Daniel G. Bogden, for the District of Nevada.  

Francisco Fuentes Ibarra, 35, pleaded guilty in May to one count of conspiracy to distribute and possess with intent to distribute at least 500 grams of a mixture or substance containing methamphetamine.  Ibarra and co-defendant Jennifer Ann Fulcher were originally charged in August 2014. Fulcher also pleaded guilty, and was sentenced on July 21 to 70 months in prison.

“The defendant is a convicted felon who was driving around Reno with a firearm and a large quantity of methamphetamine in his vehicle for the purpose of distribution,” said U.S. Attorney Bogden.  “We will work with our federal, local and state partners to ensure that persons who have a criminal history and are using handguns to distribute significant quantities of drugs are prosecuted federally.”

According to the court records, on Aug. 5, 2014, a Sparks Police Department detective received information from a confidential source that Ibarra and Fulcher had a significant amount of methamphetamine and firearms in their vehicle.  Following receipt of this information, on the same day, Ibarra was pulled over by a Washoe County Sheriff’s Office deputy for a traffic violation while driving a white Suburban SUV in Reno. A drug detection canine indicated that the vehicle was positive for controlled substances.  A search of the vehicle revealed a blue duffel bag containing 983 grams of 100 percent pure methamphetamine and a 9 millimeter handgun.  Under the front passenger seat where Fulcher had been sitting, officers found a glass vial with methamphetamine and two methamphetamine pipes.  Inside the vehicle were other items of drug paraphernalia, including a scale and small black baggies.  Investigators also located in the vehicle a radio frequency detector, 10 cellular phones, store unit receipts, and a Motel 6 receipt.

The case was prosecuted by Assistant U.S. Attorney James E. Keller and investigated by the DEA, Sparks Police Department, and Washoe County Sheriff’s Office.

LAS VEGAS, Nev. – Two men who were arrested last year as part of a joint law enforcement operation to catch child predators in southern Nevada, “Operation Protect the Powerless,” have been convicted in federal court of sex trafficking and prostitution crimes for transporting two minor girls from Nevada to southern California to work as prostitutes, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

“We will continue to aggressively investigate and prosecute cases involving the exploitation of minors as part of our implementation of the Project Safe Childhood initiative in Nevada,” said U.S. Attorney Bogden. “This case demonstrates the excellent and effective partnerships that have been developed between local and federal law enforcement officers and agents to identify and prosecute these sexual predators.”

Following a five-day jury trial, Sha-Ron Haines, 20, was convicted on Tuesday, Aug. 25, 2015, of one count of conspiracy to commit sex trafficking of a child, one count of sex trafficking of a child, one count of conspiracy to transport a minor for prostitution or other illegal sexual activity, and one count of transportation of a minor for prostitution.  Haines is scheduled to be sentenced on Dec. 8, and faces a minimum of 10 years to life in prison and a $250,000 fine.

Tyral Edward King, 19, pleaded guilty on Aug. 14, 2015, to one count of transportation of an individual for the purpose of prostitution.  He is scheduled to be sentenced on Dec. 10, and faces up to 10 years in prison and a $250,000 fine.

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

A federal criminal complaint was filed against King on July 24, 2014.  Haines and King were then indicted by the federal grand jury on Aug. 6, 2014.

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

The case is being prosecuted by Assistant United States Attorneys Lisa C. Cartier-Giroux and Susan Cushman.

PSC is a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about PSC, please visit www.usdoj.gov/psc.

LAS VEGAS, Nev. – A local man has been sentenced to 171 months in federal prison for committing six armed robberies of commercial establishments in Las Vegas during the summer of 2013, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

Herbert Johnson, 23, of Las Vegas, was sentenced by U.S. District Judge James C. Mahan on Tuesday, Aug. 11.  Johnson pleaded guilty in April to six counts of interference with commerce by robbery and one count of brandishing a firearm during and in relation to a crime of violence.

According to the guilty plea memorandum, Johnson robbed three gas stations, a pizza store, and two bars/restaurants in Las Vegas between July 26 and Aug. 29, 2013.  During five of the robberies, Johnson used a handgun to rob the store cashiers and a bartender.  Johnson scouted the business beforehand and served as a lookout during the other robbery. Johnson’s accomplice for two of the robberies, Quincy Stephens, also pleaded guilty to robbery and firearms charges and was sentenced in October 2014 to 151 months in prison.

“This case was screened through the Southern Nevada Project Safe Neighborhoods Task Force,” said U.S. Attorney Bogden. “The members of this task force, which include federal and local law enforcement representatives and prosecutors, meet on a regular basis to discuss recent arrests involving guns and violent crime.  Through this collaborative effort, the team members make a determination whether the case should be handled federally or by the state.”

Johnson has a lengthy criminal history, including a prior felony robbery conviction in Clark County, Nev.  Johnson also has a pending murder charge in Clark County.          

The case was investigated by the FBI Safe Streets Task Force and the Las Vegas Metropolitan Police Department, and prosecuted by Assistant U.S. Attorney Sarah E. Griswold.

WASHINGTON – James Jariv, 64, of Las Vegas, Nevada, was sentenced in federal court in Las Vegas today to ten years in prison for his role in illegal schemes to generate fraudulent biodiesel credits and to export biodiesel without providing biodiesel credits to the United States.  Jariv was also ordered to make restitution in the amount of $6,345,830.91 and to forfeit between $4 to $6 million in cash and other assets.

Jariv was the second defendant to be sentenced for the scheme.  Nathan Stoliar, 64, of Australia, was sentenced to two years in prison in April for his role in the conspiracy and ordered to pay more than $1.4 million in restitution and to forfeit of $4 million in cash.  In addition, in court papers unsealed last week, Alex Jariv, 28, also of Las Vegas, pleaded guilty in the scheme and his sentencing was scheduled for Aug. 18, 2015.

James Jariv and Stoliar both pleaded guilty to one count of conspiracy, one count of conspiracy to engage in money laundering, two counts of wire fraud and one count of making false statements under the Clean Air Act.  Alex Jariv pleaded guilty to one count of conspiracy to commit wire fraud, make false statements and launder monetary instruments.

“This was an egregious scheme to defraud fuel suppliers, the United States, and a program designed to strengthen our nation’s petroleum independence and improve our air quality” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division.  “We will not tolerate such fraud and will vigorously prosecute those who put their own enrichment above our nation’s interests.”

“Mr. Jariv and his co-defendant defrauded the United States government of millions of dollars through this biodiesel fraud scheme,” said U.S. Attorney Daniel Bogden for the District of Nevada.  “They used a Las Vegas company and Las Vegas bank accounts to facilitate the scheme.  Fortunately, in addition to convicting both defendants, we were able to seize and forfeit millions of dollars from numerous bank accounts, as well as real property in Nevada and California, jewelry and other assets.”

“EPA's criminal enforcement program goes after the most egregious offenders,” said Assistant Administrator Cynthia Giles for Enforcement and Compliance Assurance at EPA.  “For his role in undermining the Renewable Fuel Standard, developed to reduce the nation’s impact on climate change and lessen our dependence on foreign oil, Mr. Jariv is going to prison.   Let today’s sentence send a clear message to others who engage in biofuel fraud that EPA takes seriously its responsibility to bring violators of this important program to justice.”

The Energy Independence and Security Act of 2007 created a number of federally-funded programs that provided monetary incentives for the production and use of renewable fuels such as biodiesel in the United States.  Biodiesel producers and importers can generate and attach credits known as renewable identification numbers (RINs) to the gallons of biodiesel they produce or import.  Because certain companies (such as companies that sell transportation fuel in the United States) need RINs to comply with regulatory obligations, RINs have significant market value.  They are routinely bought and sold in the marketplace.  In addition, to ensure that RINs are generated for renewable fuel used only in the United States and in order to create an incentive for biodiesel in the United States to be used here, anyone who exports biodiesel is required to obtain these valuable RINs for all exported gallons and provide the RINs to EPA.  

Beginning around September of 2009, James Jariv and Stoliar operated and controlled a company -- City Farm Biofuel in Vancouver, British Columbia, Canada -- that represented itself as a producer of biodiesel from “feedstocks” such as animal fat and vegetable oils.  James Jariv and Stoliar also formed a company called Canada Feedstock Supply – that represented itself as City Farm’s supplier of feedstocks necessary to produce biodiesel.  James Jariv operated and controlled a company based in Las Vegas called Global E Marketing (GEM).

Alex Jariv worked for and on behalf of these companies.  Using these three and other closely-held companies, the three defendants claimed to produce biodiesel at the City Farm facility and to import and sell biodiesel to GEM and then generated and sold RINs based upon this claimed production, sale and importation.  In reality, no biodiesel produced at City Farm was ever imported and sold to GEM as claimed.  The Jarivs and Stoliar used GEM to claim to blend the biodiesel with petroleum diesel, allowing them to sell the RINs separately from any actual biodiesel.  Using this scheme, the three men falsely claimed to import, purchase and blend more than 4.2 million gallons of biodiesel.  They then sold the RINs, and fraudulently generated more than $7 million.

James Jariv and Stoliar also purchased and resold RIN-less B-99 biodiesel as B-100 biodiesel, which allowed them to charge substantially more for this product than if it has been accurately labeled.  They exported significant amounts of the RIN-less B-99 they bought in the United States to Canada and Australia.  They then sold the biodiesel in those countries and conspired to not acquire and provide RINs to the United States for these exports as they were required to do by law.  In doing so, James Jariv and Stoliar failed to give to the United States RINs worth in excess of $34 million, keeping this money for themselves instead.

Finally, James and Alex Jariv and Stoliar conspired to launder the proceeds of their crimes, utilizing foreign banking institutions and complex financial transactions to promote their illegal schemes and distribute the proceeds of their crimes.  Accounts were utilized in Canada, Nevada and Australia and transactions between the defendants’ closely-held companies were described as other legitimate transactions involving biodiesel, when in reality they were not.

The investigation into the Jarivs’ and Stoliar’s activities was the result of collaborative work by the EPA’s Criminal Investigation Division and the FBI, with assistance from the United States Secret Service, the Internal Revenue Service-Criminal Investigations, the Department of Homeland Security and the Royal Canadian Mounted Police.

The case was prosecuted by Wayne D. Hettenbach of the Environmental Crimes Section, U.S. Department of Justice, Assistant U.S. Attorneys Crane M. Pomerantz and Daniel D. Hollingsworth of the U.S. Attorney’s Office in Nevada and Assistant Deputy Chief Darrin L. McCullough of the Justice Department’s Criminal Division, Asset Forfeiture and Money Laundering Section, with the assistance of the Justice Department’s Office of International Affairs and the U.S. Attorney’s Office for the Southern District of Texas.

LAS VEGAS - - An Arizona man, whose conviction on mortgage fraud charges had been overturned by the Ninth Circuit Court of Appeals and remanded for a new trial, was convicted again today of conspiracy and fraud charges, announced U.S. Attorney Daniel G. Bogden, for the District of Nevada.

Following a four-day jury trial, and 1½ days of deliberations, Brett Depue, 42, of Gilbert, Ariz., was convicted of one count of conspiracy to commit mail, bank and wire fraud, and seven counts wire fraud.  Depue was remanded to custody and sentencing is scheduled for Nov. 9 at 9:00 a.m.

“We are pleased that a second jury determined that Mr. Depue had committed fraud,” said U.S. Attorney Bogden.  “There were over 100 homes used as part of this conspiracy to defraud the financial institutions of millions.”

Depue, representing himself, was first convicted by a jury in 2012, and sentenced to almost 22 years in prison.  Depue appealed, and the Ninth Circuit found that his waiver of his right to counsel did not comport with established standards, so they vacated his convictions and remanded the case for a new trial.

During 2005 to 2007, Depue operated a number of Nevada businesses in Las Vegas, including, ABS Investments Group, LLC, and Liberty Group Investments, LLC. From about February 1, 2005, to May 31, 2007, Depue participated in a conspiracy with about 13 others to defraud federally insured banks. The conspiracy consisted of recruiting straw buyers, typically friends or family members with good credit, to purchase homes that they had no intent to occupy and which Depue would control. Depue paid the straw buyers about $5,000 to put houses in their name, sometimes up to five houses. Depue then directed co-conspirators to prepare mortgage applications containing false and fraudulent information, so that the straw buyers could qualify for the loans. During the beginning of the scheme, Depue orchestrated simple straw buyer transactions in which the straw buyers purchased properties using 100 percent financing.  The properties were purchased at a price above the asking price, and the difference was disbursed at closing to one of defendant’s entities.  Later, Depue began using “double escrows” in which a buyer purchased a property and soon thereafter resold it to a straw buyer at an inflated price, often on the same day.

Using this scheme, Depue and his co-conspirators obtained mortgage loans for 110 homes in Las Vegas and Henderson between April 2005 and April 2007.  The houses went into foreclosure, and it is estimated that financial institutions lost more $24 million as a result of Depue’s fraud.

Ten co-conspirators were also convicted for their roles in the offense.        

The investigation was conducted by the FBI.  The case was prosecuted by Assistant United States Attorneys Sarah E. Griswold and Lisa Cartier-Giroux.

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 convicted felon who robbed a Las Vegas mini-mart in July 2011 using a long-barreled shotgun, was convicted by a federal jury today of robbery and firearm counts and faces up to 34 years in prison, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

Following a four-day jury trial, Tracey Brown, 40, of North Las Vegas, Nev., was convicted 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.  Brown is scheduled to be sentenced by U.S. District Judge Andrew P. Gordon on Wednesday, Oct. 28, 2015.  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.

“There are strong penalties in the federal system for felons who are convicted of possessing and using firearms in crimes of violence and for drug trafficking,” said U.S. Attorney Bogden. “Through our Project Safe Neighborhood initiative, we meet with local law enforcement regularly to review the cases involving repeat violent offenders to determine if they 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 prior 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. Attorneys Daniel J. Cowhig and Crane M. Pomerantz.

RENO, Nev. – A convicted sex offender who had failed to register with the State of Nevada and was caught with hundreds of images and videos of child pornography on his computers, has been sentenced to 17½ years in prison for his guilty plea to receipt of child pornography, announced U.S. Attorney Daniel G. Bogden, for the District of Nevada.

Jeffrey Scott Varnum, 48, of Sparks, Nev., who pleaded guilty in April to one count of receipt of child pornography, was sentenced on July 28, by Senior U.S. District Judge Howard D. McKibben. Varnum was also placed on lifetime supervised release and must register as a convicted sex offender.  

“The sharing of child pornography over the internet results in repeated re-victimization and can negatively affect a victim for the rest of his or her life,” said U.S. Attorney Bogden.  “The persons who produce these images and trade them with other persons deserve significant sentences of imprisonment.”

Between March and October 2014, a law enforcement officer assigned to the Internet Crimes Against Children Task Force in Reno was conducting online child pornography investigations and determined that an internet address connected to Varnum’s residence was involved in the sharing of child pornography files.  On Nov. 17, members of the Task Force executed a search warrant at the residence, and seized two computers and other electronic storage devices from Varnum’s bedroom. A forensic investigation of the items revealed that Varnum had installed and utilized software on the computers which allowed him to locate and receive child pornography.  The investigation further revealed that Varnum possessed and received over 300 images and 10 videos of child pornography. The images and videos depicted prepubescent children engaged in sexually explicit conduct, as well as sadistic and masochistic conduct. Varnum also possessed and received over 11,000 images of child erotica.  At the time of the search, Varnum was on probation for failing to register as a sex offender.  He had been convicted in 1994 and 1998 in Reno of lewdness, and in 2012, he was convicted in Reno of failing to register as a sex offender.

The case was investigated by the FBI and the Northern Nevada Internet Crimes Against Children Task Force, and prosecuted by Assistant United States Attorney Shannon M. Bryant.

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."

RENO, Nev. – Victor H. Orozco, 40, of Grandview, Wash., was sentenced on July 20 by U.S. District Judge Miranda M. Du to 16 years in prison and five years of supervised release for possessing with the intent to distribute more than 24 pounds of methamphetamine and heroin, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

Orozco, a licensed commercial truck driver, was operating a tractor trailer carrying a load of watermelons through White Pine County, Nev., on April 27, 2013, when he was pulled over by a Nevada Highway Patrol Officer for a commercial vehicle inspection.  Orozco consented to a search of the tractor trailer, and the Highway Patrol Officer discovered more than 19½ pounds of methamphetamine and 4½ pounds of heroin meticulously-wrapped in multiple layers of plastic in a black duffel bag under the sleeping compartment of the tractor.

Orozco was arrested, and the case proceeded to a jury trial earlier this year.  According to expert testimony at trial, the street value of the drugs was more than one-half million dollars.   On Feb. 24, 2015, Orozco was convicted by the jury of one count of possession with intent to distribute methamphetamine and one count of possession with intent to distribute heroin.

The case was prosecuted by Assistant U.S. Attorneys James E. Keller and Carla Higginbotham, with assistance from the White Pine County District Attorney’s Office, and investigated by White Pine County-based members of Nevada Department of Public Safety and Nevada Department of Investigations, and by the DEA.

         

LAS VEGAS, Nev. – A California fugitive who shot multiple times at federal agents as they were attempting to serve an arrest warrant on him at an apartment in Las Vegas in May 2013, was sentenced today to 225 months in prison and five years of supervised release, announced U.S. Attorney Daniel G. Bogden for the District of Nevada and FBI Assistant Special Agent in Charge for Nevada Patrick Brodsky.  

Rene Alexander Dendaas, 39, of West Covina, Calif., was sentenced by U.S. District Judge Andrew P. Gordon.  Dendaas pleaded guilty on Jan. 21 to one count of assault on a federal officer and one count of use of a firearm during and in relation to a crime of violence.

“This case demonstrates the danger that law enforcement agents and officers face each and every day in doing their jobs,” said U.S. Attorney Bogden. “Fortunately, the defendant was arrested, and despite the many shots he fired at law enforcement, the situation was resolved with no one being seriously injured or killed.”

According to the plea agreement, on May 21, 2013, four FBI SWAT Team Agents in Las Vegas went to an apartment on East Karen Avenue in Las Vegas to arrest Dendaas, who was wanted on homicide charges in San Bernardino.  As the agents announced their presence at the door of the apartment and attempted to gain entry, Dendaas fired eight or nine gunshot rounds through the door at the agents, who were using ballistic shields. The SWAT agents again announced their presence, and Dendaas fired at them again through the door.  One SWAT agent returned fire, and Dendaas fired again, with several of his rounds entering other apartments in his building and in an adjacent building. The four SWAT agents then escaped the area.  One of the agents suffered minor injuries from Dendaas’ gunshots.  Negotiators talked with Dendaas throughout the night, and at about 2:00 a.m., they introduced tear gas into the apartment and Dendaas exited and was taken into custody.   

“This sentence demonstrates the importance and effectiveness of the FBI SWAT team and the FBI-led Criminal Apprehension Team (CAT), and more broadly, of law enforcement coordination and collaboration in apprehending and prosecuting violent fugitives,” said Assistant Special Agent in Charge Brodsky. “The FBI will continue to work with our partners to ensure these violent criminals are captured and brought to justice.”

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

The Justice Department today filed a lawsuit against the owners of rental properties in Carson City, Nevada, alleging violations of the Fair Housing Act.  The lawsuit, filed in the U.S. District Court for the District of Nevada, charges that Betty Brinson and Hughston Brinson, the owners of a single-family rental home, discriminated against families with children by placing a series of advertisements in the local newspaper indicating a preference for adult tenants, and by refusing to rent the home to a family with three children because they did not want children living at the property.  The suit also alleges that Ms. Brinson placed discriminatory advertisements for another property she owns – a 36-unit apartment complex – indicating a preference for adult tenants.

The lawsuit arose as a result of a complaint filed with the Department of Housing and Urban Development (HUD) by the family who alleged they were refused the opportunity to rent the single-family home because they were a family with children.  After HUD investigated the complaint, it issued a charge of discrimination and the matter was referred to the Justice Department.

The lawsuit seeks an order prohibiting the defendants from engaging in future unlawful discrimination.  It also seeks the payment of a civil penalty and monetary damages for individuals who were refused the opportunity to rent because their children would be living with them.

“The Fair Housing Act includes important protections for families with children,” said Vanita Gupta, the head of the Civil Rights Division.  “The Justice Department will continue its vigorous enforcement of the Fair Housing Act to ensure that families with children do not face discrimination in the housing market and have equal access to housing opportunities.”  

“For more than 25 years, the Fair Housing Act has made it illegal for families to be denied housing based on policies that discriminate against children,” said Gustavo Velasquez, Assistant Secretary for HUD’s Fair Housing and Equal Opportunity Office.  “HUD will continue to work with the Justice Department to vigorously enforce fair housing laws that protect the right of families with children to live where they choose.”

Fighting illegal housing discrimination is a top priority of the Justice Department.  The Federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability.  Visit www.usdoj.gov/crt for more information about the Civil Rights Division and the laws it enforces.  Additional information about the Fair Housing Act is available at www.HUD.gov.  

WASHINGTON – The U.S. District Court for the District of Nevada entered a consent decree of permanent injunction against Bio Health Solutions LLC, of Reno, Nevada, and Mark Garrison, its manager, to prevent the distribution of RenAvast, an animal drug that is adulterated, the Department of Justice announced today.

“The department will not hesitate to bring enforcement actions against animal drug producers who do not follow the necessary procedures to comply with our nation’s animal drug laws,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Department of Justice’s Civil Division.

On July 9, the department filed a complaint in U.S. District Court at the request of the U.S. Food and Drug Administration (FDA) alleging that Bio Health Solutions and Garrison caused the shipment of RenAvast in interstate commerce in violation of federal law.  The complaint alleged that Bio Health Solutions markets, sells and distributes RenAvast, which the company describes as an animal supplement, and that the company intended that RenAvast be used to treat and prevent kidney disease and chronic renal failure in cats and dogs.

Under the federal Food, Drug and Cosmetic Act (FDCA), a new animal drug includes any drug intended for use for animals, the composition of which is such that it is not generally recognized as safe and effective for use under the conditions prescribed, recommended or suggested in its labeling.  A new animal drug that lacks FDA approval or otherwise fails to meet an exception under the law is deemed to be unsafe, and a new animal drug that is unsafe under the law is deemed to be adulterated.  The complaint alleged that defendants caused the shipment of RenAvast, an adulterated animal drug, into interstate commerce.

In conjunction with the filing of the complaint, the defendants agreed to settle the litigation and be bound by a consent decree of permanent injunction that prohibits them from introducing or delivering for introduction into interstate commerce, manufacturing, processing, packaging, labeling, holding, selling or distributing RenAvast.  In addition, these same restrictions apply to any other product intended to diagnose, cure, mitigate, treat or prevent disease, unless and until a new animal drug application has been approved, or the product meets the requirements for an investigational new animal drug exemption in the law.

According to the complaint, the FDA issued a warning letter to Garrison on Aug. 1, 2012.  The letter cited numerous statements throughout the defendants’ website and other promotional materials that showed the intended use of RenAvast was to prevent and/or treat kidney disease and chronic renal failure in cats.  The FDA’s letter warned Garrison that RenAvast could not be legally marketed because it was a new animal drug that was not approved by the FDA.

The complaint further alleged that in November 2012, a representative for the company informed the FDA that the company had complied with FDA requests to remove statements on its website and in other promotional materials that showed its intent that RenAvast be used to mitigate, treat and prevent chronic renal failure in cats and in dogs.  Nevertheless, the complaint alleged that after these assurances, Bio Health Solutions created a password-protected section on its website that contained numerous express disease claims.  In addition, as alleged in the complaint, the FDA conducted undercover purchases of RenAvast, and such purchases confirmed that the defendants continued to make claims about RenAvast that caused it to be an adulterated drug under the FDCA.

The government is represented by Trial Attorney David A. Frank of the Civil Division’s Consumer Protection Branch, with the assistance of Associate Chief Counsel Steven J. Tave of the Department of Health and Human Services’ Office of General Counsel-Food and Drug Division and Assistant U.S. Attorney Greg Addington of the District of Nevada.

LAS VEGAS, Nev.  – Dipak Desai, the former physician owner of a defunct Nevada endoscopy center, was sentenced today to 71 months in federal prison, three years of supervised release, and ordered to pay over $2.2 million in restitution for defrauding Medicare, Medicaid and other private health insurance companies by inflating and overcharging for anesthesia services, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

“Dr. Desai intentionally defrauded the federal health care system for his own personal enrichment,” said U.S. Attorney Bogden. “We are hopeful this closes a long and sordid chapter of harm caused to the people and businesses of Nevada.”

Desai, 65, of Las Vegas, was sentenced by U.S. District Judge Larry R. Hicks.  Desai pleaded guilty in April to one count of conspiracy to commit health care fraud and one count of health care fraud.

Tonya Rushing, the former chief operating officer of the endoscopy center, was sentenced in May to one year and one day in prison for her guilty plea to one count of conspiracy to commit health care fraud.

According to Desai’s guilty plea agreement, between about January 2005 and February 2008, Desai and Rushing conspired to overcharge Medicare, Medicaid, and other private health insurance companies at the Endoscopy Center of Southern Nevada by significantly overstating the amount of time the certified registered nurse anesthetists spent with patients on a given procedure.  Desai and Rushing created a separate company, Healthcare Business Solutions, owned by Rushing, to handle the billing for the anesthesia services.  This company received approximately nine percent of all money collected for anesthesia services rendered at the endoscopy center. Desai and Rushing imposed intense pressure on the endoscopy center employees to schedule and treat as many patients as possible in a day, and instructed the nurse anesthetists to overstate in their records the amount of time they spent on the anesthesia procedures.  Desai and Rushing also instructed the office staff to rely on the false anesthesia records when preparing the claims for reimbursement which were sent to Medicare, Medicaid and the insurance companies.  The plea agreement states that the parties agreed that the amount of loss to the victims is approximately $2.2 million.

This case was investigated by the FBI, the Office of the Nevada Attorney General, Health and Human Services Office of Inspector General, Department of Labor Office of Inspector General, Food and Drug Administration Office of Criminal Investigations, and the United States Postal Inspection Service, and prosecuted by Assistant U.S. Attorney Crane M. Pomerantz and Mark N. Kemberling, who was designated as a Special Assistant U.S. Attorney on this case and is Chief Deputy Nevada Attorney General.

According to a recent report by the Inspector General for the U.S. Department of Health and Human Services, for every dollar the Departments of Justice and Health and Human Services have spent fighting health care fraud, they have returned an average of nearly eight dollars to the U.S. Treasury, the Medicare Trust Fund and others. To learn more or to report Medicare fraud, go to http://www.stopmedicarefraud.gov/

WASHINGTON – The president and chief executive officer and two former Asia-based executives of a Las Vegas investment company were indicted today for their roles in an alleged $1.5 billion Ponzi scheme.

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 Division made the announcement. 

“The defendants allegedly preyed on thousands of unsuspecting Japanese victims to enrich themselves by operating a billion-plus dollar Ponzi scheme,” said Assistant Attorney General Caldwell.  “This prosecution shows that the Criminal Division will pursue not only those who victimize American citizens, but also those who use the U.S. as a home base to defraud victims abroad.”

“Investment fraud and other financial fraud cases are a high priority for the U.S. Attorney’s Office in Nevada,” said U.S. Attorney Bogden.  “These defendants are accused of using a Nevada corporation to conduct their $1.5 billion fraud scheme and falsely telling thousands of overseas victims that their investments would be safely held and managed by an independent, third-party escrow agent in Nevada.  Fraudulent ruses and schemes perpetrated by Nevadans using Nevada corporations and entities will continue to be addressed by this office.”

“These indictments are a reminder of the FBI’s determination to identify, investigate and bring to justice those who are committing financial crimes against innocent consumers,” said Special Agent in Charge Bucheit.  “We are appreciative of the continued support we receive from our international, federal, state and local law enforcement partners.”

Edwin Fujinaga, 68, of Las Vegas; Junzo Suzuki, 66, of Tokyo; and Paul Suzuki, 36, of Tokyo, were charged in an indictment with eight counts of mail fraud and nine counts of wire fraud.  Fujinaga also is charged with three counts of money laundering.  The indictment seeks from all three defendants forfeiture of the proceeds from the alleged crimes. 

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

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

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

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

This case is being investigated by the FBI’s Las Vegas Division.  Significant assistance was provided by the U.S. Securities and Exchange Commission, the Criminal Division’s Office of International Affairs and Japanese authorities.  This case is being prosecuted by Assistant Chief Albert B. Stieglitz Jr. and Trial Attorney Melissa Aoyagi of the Criminal Division’s Fraud Section and First Assistant U.S. Attorney Steven W. Myhre of the District of Nevada.

If you believe you are a victim of this offense, please click on the following link for more information: justice.gov/usao-nv/united-states-v-edwin-fujinaga-junzo-suzuki-and-paul-suzuki-mri

RENO, Nev. – Five Elko County residents, including three convicted felons, have been indicted by the federal grand jury in Reno on charges that they possessed multiple stolen firearms, announced U.S. Attorney Daniel G. Bogden for the District of Nevada and ATF Acting Special Agent in Charge Eric D. Harden.

Joshua James Stout, 29, Danny Duane Wharton, 46, and Sarah Gravelle, 25, of Elko, Nev., are charged with two counts of possession of stolen firearms, and Mason Miller Warren, 37, and Janae Stanton, 24, of Wells, Nev., are charged with one count of possession of stolen firearms.  Warren, Stout and Wharton are also charged with felon in possession of firearms.  The indictment was returned by the grand jury on July 1. The defendants were arrested and had their initial appearances and arraignments on Mon., July 6 before U.S. Magistrate Judge Valerie P. Cooke in Reno.  Defendants Stout, Wharton, and Warren were detained pending trial. Defendants Gravelle and Stanton were released on personal recognizance bonds pending trial.

“Stolen firearms frequently end up being used in violent crimes and drug trafficking offenses,” said U.S. Attorney Bogden. “We will pursue federal charges against persons who possess stolen weapons, especially against persons who previously have been convicted of felony offenses.”

”Fortunately, we recovered a significant number of stolen handguns, rifles and shotguns in this case before they were used to harm others,” stated Acting Special Agent Harden.  “I would like to specifically thank the Elko County Sheriff’s Office and Assistant U.S. Attorney Megan Rachow for their partnership in the course of this investigation.”

According to the charges in the indictment, on June 3, 2015, the defendants possessed 64 stolen firearms, including handguns, shotguns, and rifles.  On the same date, Stout, Wharton and Gravelle allegedly possessed an additional 12 stolen firearms.  Wharton is charged with felon in possession, as he was previously convicted of a drug trafficking offense in Nevada.  Stout is charged with felon in possession, as he was previously convicted of a stolen goods offense in Nevada. Warren is charged with felon in possession, as he was previously convicted of being a prohibited person in possession of a firearm in federal court in Nevada.

The case is being investigated by ATF and the Elko County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Megan Rachow.

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 man who was part of a crew that robbed an armored vehicle security guard outside a Las Vegas casino in December 2009, has been sentenced to 14 years in prison, five years of supervised release, and ordered to pay $36,320 in restitution, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

Arquarius Robertson, 31, of Las Vegas, was sentenced on Tuesday, June 30, by U.S. District Judge Jennifer A. Dorsey.  Robertson pleaded guilty in March to one count of conspiracy to interfere with commerce by robbery and one count of using and carrying a firearm during and in relation to a crime of violence. Two co-defendants, Williams Morrow and Cortaz Robertson, also pleaded guilty and are scheduled for sentencing in July.

“Congress created strong federal penalties for persons convicted of using a firearm to commit a robbery,” said U.S. Attorney Bogden. “We work with our local law enforcement partners on a regular basis to review these violent crimes, and have made it a top priority to use federal laws to prosecute these violent criminals when possible.”

According to the plea agreement, on Dec. 14, 2009, at about 8:45 a.m., Robertson and his co-conspirators stole approximately $36,320 from an armored security guard who had just exited the Las Vegas casino with money and checks from the casino’s cashier cage and was headed toward an armored vehicle.  Robertson, who was brandishing a firearm and was disguised in make-up, a wig, a fake belly, gloves, and sunglasses, approached the security guard and ordered the guard to turn over the money. Another co-conspirator, who was also carrying a firearm and wearing a disguise, arrived on the scene in a stolen getaway vehicle and was behind Robertson as he received the money.  Robertson fired a warning shot from his firearm as he got into the getaway vehicle with the co-conspirator and drove off.  Other co-conspirators acted as look-outs during the robbery.  The conspirators exchanged vehicles at an abandoned house about one-half mile away and met up later to divide up the money.

This case was investigated by the FBI and 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. Attorneys Nicholas D. Dickinson, Cristina D. Silva, and Lisa Cartier-Giroux.

LAS VEGAS, Nev. – Three Las Vegas men have been indicted by the federal grand jury on charges that they fraudulently obtained more than $3.5 million from small business owners for grant funding and services which were never provided and never intended to be provided, announced U.S. Attorney Daniel G. Bogden for the District of Nevada and Laura A. Bucheit, Special Agent in Charge of the FBI for Nevada. 

Michael Jones, 35, Jason Demko, 38, and Mike Guariglia, 47, all of Las Vegas, are charged with one count of conspiracy to commit mail fraud and wire fraud, four counts of wire fraud, and criminal forfeiture.  They are scheduled to appear before U.S. Magistrate Judge Cam Ferenbach at 3:00 p.m. today for an initial appearance and arraignment.

“Advance fee fraud schemes are common and perpetrated for the sole purpose of enriching the fraudsters,” said U.S. Attorney Bogden.  “We are currently prosecuting a number of these cases in which the defendants prey on unsuspecting business owners who are seeking grants for their businesses.  If you think you have been victimized by persons committing this sort of crime, please contact the FBI.”

“These indictments highlight the FBI’s unrelenting commitment to investigate financial crimes and serve as a reminder for consumers to be vigilant and protect themselves,” said Special Agent in Charge Bucheit.

According to the indictment, from about December 2010 to the spring of 2013, the defendants and their coconspirators allegedly induced small business owners to give them money in exchange for services, such as business plans and other paperwork that would help them obtain grant funding. The defendants knew that the services were not necessary or likely to produce grants, and knew that the true purpose of the money was to personally enrich the defendants. The defendants and coconspirators received numerous complaints from the clients. In order to prevent and delay the clients from reporting them to law enforcement, the defendants made false promises and representations, told them their funding was forthcoming, operated under several business names, including Summit Business Consultants Inc., Inner Circle Corporation LLC, Sierra Investment Group, Inc. and Valley Business Development, and changed the physical locations of the businesses.  Using this fraud scheme, the defendants allegedly fraudulently obtained more than $3.5 million from the victims.

If convicted, the defendants face a maximum of 20 years in prison and a $250,000 fine on all counts.

The case is being investigated by the FBI, and prosecuted by Assistant U.S. Attorney Sarah E. Griswold. 

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 defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

RENO, Nev. – A California man who used internet chat rooms to solicit a 15-year-old Reno girl for sex, and then traveled to Reno where he was arrested after attempting to have sex with her, was sentenced today to 10 years in federal prison, 15 years of supervised release and ordered to pay a $5,000 fine, announced U.S. Attorney Daniel G. Bogden, for the District of Nevada.    

Nicholas Ponh Suon, 41, of Norwalk, Calif., was sentenced in Reno by U.S. District Judge Miranda M. Du. Suon pleaded guilty in January to one count of enticement of a minor to engage in illegal sexual activity and agreed to the forfeiture of his property used in the crime, including his vehicle and cellular telephone.

“There are persons trolling the Internet 24 hours-a-day looking for innocent children to harm,” said U.S. Attorney Bogden. “This case demonstrates that criminals will travel across state lines to physically harm children, and are not only having online conversations or trading sexually explicit photographs.  Thanks to the dedication and skills of these investigators and prosecutors, we are able to identify, arrest and successfully prosecute these dangerous predators.”

According to the court records, beginning as early as November 2013 and continuing until August 2014, Suon engaged in a series of internet chat and text message conversations with a 15-years-old Reno girl, which were intended to persuade and entice the girl to engage in sexually explicit conduct with Suon.  The conversations were engaged in using different smart phone applications, including “Tango” and “Skout.”  On Aug. 29, 2014, Suon traveled to Reno from California in order to meet the girl and to have sex with her.  Suon was arrested outside the girl’s home after he attempted to engage in sexual intercourse with her in his vehicle.

The case was prosecuted by Assistant U.S. Attorney Carla Higginbotham.  It was investigated by the Washoe County Sheriff’s Office and the FBI, and 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 convicted sex offender who was arrested at his home in Las Vegas with a minor boy and also found in possession of a firearm, was sentenced today to life in prison for his guilty plea to a federal firearms offense, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

William Oliver Smith, 43, most recently a resident of Las Vegas, was sentenced by U.S. District Judge Jennifer A. Dorsey.  Smith pleaded guilty in February 2015 to one count of felon in possession of a firearm and stipulated in the plea agreement to the life sentence.  There is no parole in the federal system.

“We will continue to use federal gun laws to prosecute repeat offenders and remove them from our community, permanently if necessary” said U.S. Attorney Bogden. “We can all be thankful for the work of our investigators and prosecutors in ensuring community safety and that this defendant will never again harm any more children.”

According to the plea agreement, on May 25, 2013, officers from the Las Vegas Metropolitan Police Department identified Smith as a suspect in the disappearance of a juvenile in Las Vegas.  When officers contacted Smith at his residence, he was with a 10-year-old boy, who was not the missing juvenile.  Smith was arrested for lewdness with a minor.  During a search of the residence, officers recovered a .38 caliber handgun in a drawer next to Smith’s bed.

Smith was previously convicted of sexual assault of a minor and taking indecent liberties with a child in North Carolina, child molestation in San Paulo, Brazil, and attempted sexual assault, in Reno, Nev.

This case was investigated by the Las Vegas Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, 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. – The arraignments for two men charged with using counterfeit mail box keys to steal checks, credit cards, and other information from local mailboxes will be held at 3:00 p.m. today before U.S. Magistrate Judge Carl W. Hoffman, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

John Douglas Gibson, 44, and Juan Carlos Rodriguez, 40, both of Las Vegas, are charged with one count of possession of counterfeit U.S. Postal Service keys, one count of possession of stolen mail, one count of theft of government money, one count of fraud and related activity in connection with access devices, and one count of aggravated identity theft.  If convicted, they face up to five years in prison on the stolen mail count and up to 10 years in prison on each other count, except for the aggravated identity theft count which carries a two year mandatory minimum penalty which must be served consecutively.  They also face fines of up to $250,000 on each count.

“Financial and personal identifying information stolen from the U.S. mail is commonly used to create counterfeit checks and credit cards and to assume the identity of the victims whose mail was stolen,” said U.S. Attorney Bogden.  “Be aware of any suspicious activity at your mailbox and report it to the U.S. Postal Inspection Service as soon as possible so that investigators can track it.”

According to the criminal complaint filed on May 8, 2015, the U.S. Postal Inspection Service had been investigating reports of extensive mail theft in the Henderson and Las Vegas areas. The reports indicated that someone was stealing all of the mail from individual and cluster mailboxes without causing any damage to the mailboxes.  Investigators determined that between Feb. 1 and May 7, defendants Gibson and Rodriguez were allegedly using counterfeit U.S. Postal Service mailbox keys to steal mail from secured mailboxes.  The criminal indictment specifically charges Gibson and Rodriguez with possessing stolen mail belonging to an individual who resided at La Suena Court in Henderson, stealing U.S. Treasury checks valued at more than $10,000, and fraudulently using Sam’s Club and Lowe’s hardware store credit cards.

Information concerning mail theft should be reported to the U.S. Postal Inspection Service online at https://postalinspectors.uspis.gov/ or by telephone at 800-275-8777.

The case is being investigated by the U.S. Postal Inspection Service and prosecuted by Assistant U.S. Attorney J. Gregory Damm.

“The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force.  The task force was established 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, please visit www.StopFraud.gov.”

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

RENO, Nev. – A man who made false statements and used phony documents to solicit millions from victims who thought they were helping him purchase a golf course in Gardnerville, Nev., was sentenced today to 19½ years in prison, three years of supervised release, and ordered to pay $1.4 million in restitution, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

Scott H. Summerhays, 56, currently in custody, but formerly of the South Lake Tahoe area, was sentenced by Senior U.S. District Judge Larry R. Hicks. Summerhays pleaded guilty in February 2014 to 14 counts of wire fraud, seven counts of money laundering, two counts of identity theft, and one count of aggravated identity theft.

“If you are considering a financial arrangement with someone, be sure to check the veracity of any documents they provide you, as fraudulent documents are common and easy to create,” said U.S. Attorney Bogden.

According to the court records, during 2008 to 2010, Summerhays represented to potential investors that he was purchasing the Genoa Lakes Golf Club located west of Gardnerville, Nev. for $17 million and needed a short term loan to complete the deal because his own money was tied up in a trust.  Summerhays also represented to the potential investors that he solicited funds for oil and gas investments in Texas and owned over $30 million in Berkshire, Las Vegas Sands and MGM stocks.  Summerhays showed some of the investors a fraudulent investment account statement.  Summerhays also claimed that he was in partnership with Las Vegas Sands owner Sheldon Aldelson, and showed potential investors a partnership agreement containing the forged signature of Adelson.  In reality, Summerhays had no investment portfolio, and Adelson never heard of Summerhays or had any partnerships with him.  Using this scheme, Summerhays was able to convince 11 persons to loan him money for the golf course, totaling approximately $3.6 million.  None of the investors were repaid and they lost all of the money they loaned Summerhays.   

The case was investigated by the FBI and IRS Criminal Investigation, and prosecuted by Assistant U.S. Attorney Megan Rachow.

“The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force.  The task force was established 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, please visit www.StopFraud.gov.”

LAS VEGAS, Nev. – A Utah man who owned a title and escrow company that operated in Nevada, has pleaded guilty to wire fraud for embezzling almost $4 million from company escrow accounts for his own personal use, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

Christopher L. Durling, 49, of Sandy, Utah, pleaded guilty on Wednesday, May 13, 2015, before Senior U.S. District Judge Kent J. Dawson to one count of wire fraud, and is scheduled to be sentenced on Aug. 11 at 9:00 a.m.  Durling faces up to 20 years in prison and a $250,000 fine.

“The U.S. Attorney’s Office for the District of Nevada successfully prosecuted hundreds of persons for fraud committed during the housing and mortgage lending bubble,” said U.S. Attorney Bogden.  “Many of them were employed in the housing and lending industries and are now serving time in federal prison.”

Durling owned and operated Direct Title Insurance Agency, a title and escrow company which had offices in Nevada, Utah, Texas, Indiana, California, and elsewhere.  From about March 2009 through June 2011, Durling devised a scheme to defraud various persons and entities of money and property by diverting funds from escrow accounts for his own personal use. Durling used a kiting scheme to artificially inflate the balances of office trust accounts in order to cover up the shortages that were caused by his diversion of the escrow funds.  In late 2010, the volume of the diversions from the escrow accounts reached such a level that the kiting scheme could no longer conceal the fraud, and insurance companies had to reimburse 13 lenders approximately $4 million. 

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

“The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force.  The task force was established 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, please visit www.StopFraud.gov.”

LAS VEGAS, Nev. – A Topeka, Kansas man who was pulled over by Nevada Highway Patrol Officers in 2013, and found to be in possession of 24 pounds of methamphetamine and 74 pounds of marijuana, was sentenced today to 365 months in prison and 10 years of supervised release, announced U.S. Attorney Daniel G. Bogden, for the District of Nevada.  

Paul Edward Davis, 49, who was convicted by a jury in Las Vegas on Dec. 2, 2014, of one count of possession of methamphetamine with the intent to distribute and one count of possession of marijuana with the intent to distribute, was sentenced by U.S. District Judge Andrew P. Gordon.

“This defendant was transporting large quantities of methamphetamine and marijuana,” said U.S. Attorney Bogden. “We work with our Nevada High Intensity Drug Trafficking Area (HIDTA) program and with state and local law enforcement on several task forces to apprehend and prosecute federally drug traffickers who are traveling through our Nevada communities with significant quantities of drugs for distribution.”

According to the court records, on July 27, 2013, at approximately 9:15 p.m., a Nevada Highway Patrol Officer pulled Davis’ SUV over for speeding on I-15 northbound near Las Vegas at Mile Marker 64. The trooper immediately observed the odor of marijuana coming from the inside of the vehicle, and a law enforcement canine dog alerted to the presence of a controlled substance. During a search of the vehicle, officers located three cellular phones, numerous air fresheners, and several large canvas bags in the rear area of the vehicle containing approximately 24 pounds of methamphetamine and 74 pounds of marijuana. Testimony at trial established that the value of the drugs was over $1 million.

Davis was on federal supervised release for a drug trafficking conviction when he was pulled over for this offense.  In 2000, he had been convicted by a federal jury in Topeka, Kan., of distributing crack cocaine within 1,000 feet of a university and sentenced to 17½ years in prison and 10 years of supervised release. After serving 11 years, he was re-sentenced and released from prison due to the amendments that were made to the federal sentencing guidelines which reduced the penalties for persons convicted of crimes involving crack cocaine.

The case was prosecuted by Assistant U.S. Attorney Amber M. Craig and investigated by the DEA, Nevada Highway Patrol, and Las Vegas Metropolitan Police Department.

LAS VEGAS, Nev. – Las Vegas urologist, Michael Stanley Kaplan, 60, was sentenced today to four years in prison and one year of supervised release for re-using single use needle guides during prostate procedures, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

“Dr. Kaplan re-used the needle guides for the purpose of personal enrichment and with an intent to defraud or mislead,” said U.S. Attorney Bogden. “We will hold accountable those medical professionals who endanger patients for their own personal profit.”

Kaplan was convicted by a jury last September of one count of conspiracy to commit adulteration.  The jury acquitted him of making false representations to Food and Drug Administration (FDA) investigators regarding the duration of his re-use of the needle guides.

“FDA’s requirements for safe use of medical devices are in place to protect the health of the public; when these requirements are flouted, serious consequences can ensue,” said Lisa L. Malinowski, Special Agent in Charge of the Los Angeles Field Office for FDA’s Office of Criminal Investigations. “We will continue our vigilance in protecting the U.S. consumers’ and patients’ right to safe medical products.”

At the time of the offense, Dr. Kaplan operated Green Valley Urology. According to the evidence presented at trial, Kaplan re-used single-use plastic needle guides during prostate procedures, causing a significant health risk to his patients. The packaging on each needle guide clearly warned that they should not be used more than once, but Dr. Kaplan instructed his staff and permitted his staff to re-use them three to five times prior to disposal.  Between about Dec. 15, 2010, and March 11, 2011, Dr. Kaplan performed approximately 120 procedures requiring a needle guide but used less than 10 guides during that period.

The case was investigated by the FDA Office of Criminal Investigations and prosecuted by Assistant U.S. Attorney Crane M. Pomerantz and Special Assistant U.S. Attorney Peter J. Leininger.

LAS VEGAS, Nev.  – Tonya Rushing, former CEO of the now-defunct Endoscopy Center of Southern Nevada, was sentenced today by Senior U.S. District Judge Larry R. Hicks to one year and one day in prison for conspiring with Dipak Desai, the former owner of the center, to commit health care fraud, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

Rushing, 47, who pleaded guilty last July to conspiracy to commit health care fraud, must also serve two years of supervised release, perform 150 hours of community service, and pay a $10,000 fine and $50,000 in restitution.  An order of forfeiture was also ordered for $8.1 million.

“Those perpetrating Medicare and Medicaid fraud cheat both taxpayers and vulnerable patients,” said U.S. Attorney Bogden. “We will hold criminals accountable and will seek to recover stolen dollars in each case of healthcare fraud we prosecute.”

Between about January 2005 and February 2008, Desai and Rushing conspired to overcharge Medicare, Medicaid, and other private health insurance companies at the Endoscopy Center of Southern Nevada by significantly overstating the amount of time the certified registered nurse anesthetists spent with patients on a given procedure.  Desai and Rushing created a separate company, Healthcare Business Solutions, owned by Rushing, to handle the billing for the anesthesia services.  This company received approximately nine percent of all money collected for anesthesia services rendered at the endoscopy center. Desai and Rushing imposed intense pressure on the endoscopy center employees to schedule and treat as many patients as possible in a day, and instructed the nurse anesthetists to overstate in their records the amount of time they spent on the anesthesia procedures.  Desai and Rushing also instructed the office staff to rely on the false anesthesia records when preparing the claims for reimbursement which were sent to Medicare, Medicaid and the insurance companies.  The plea agreement states that Rushing received approximately $1.3 million as her share of the inflated anesthesia billing scheme.

Desai pleaded guilty on April 2, 2015, to one count of conspiracy to commit health care fraud, one count of health care fraud, and is scheduled to be sentenced on July 9.

This case was investigated by the FBI, Office of the Nevada Attorney General, Health and Human Services Office of Inspector General, Department of Labor Office of Inspector General, Food and Drug Administration Office of Criminal Investigations, and the United States Postal Inspection Service, and prosecuted by Assistant U.S. Attorney Crane M. Pomerantz and Mark N. Kemberling, who was designated as a Special Assistant U.S. Attorney on this case and is Chief Deputy Nevada Attorney General.

According to a recent report by the Inspector General for the U.S. Department of Health and Human Services, for every dollar the Departments of Justice and Health and Human Services have spent fighting health care fraud, they have returned an average of nearly eight dollars to the U.S. Treasury, the Medicare Trust Fund and others. To learn more or to report Medicare fraud, go to http://www.stopmedicarefraud.gov/

LAS VEGAS, Nev. – An Oklahoma husband and wife received prison sentences today for stealing over $6.5 million from six victims who thought they were investing in a hedge fund, announced U.S. Attorney Daniel G. Bogden for the District of Nevada, Laura A. Bucheit, Special Agent in Charge of the FBI for Nevada, and John Collins, Special Agent in Charge of IRS Criminal Investigation for Nevada.

“The defendants used convincing tactics and tempting monetary returns to persuade their victims to part with their money,” said U.S. Attorney Bogden.  “If someone offers unusually high returns on an investment, it is likely too good to be true.”

Linda Livolsi, aka Linda G. Findley, aka Linda Grogg, 46, of Cleveland, Oklahoma, was sentenced to 45 months in prison, three years of supervised release, and ordered to pay approximately $6.1 million in restitution.  She pleaded guilty on Oct. 15, 2014, to one count of wire fraud and one count of making and filing a false and fraudulent tax return.  Her husband, William Livolsi, Jr., 55, was sentenced to two years in prison, three years of supervised release, and ordered to pay approximately $5 million in restitution. He pleaded guilty on Oct. 15, 2014, to one count of wire fraud.  Linda Livolsi was allowed to self-report to prison by July 24, 2015, and William Livolsi was permitted to report to prison 30 days after Linda is released from prison.

“These sentences are a reminder of the FBI’s dedication to identify, investigate and prosecute those who are committing financial crimes against innocent consumers,” said FBI Special Agent in Charge Bucheit.

“Individuals should be careful in choosing their investment advisers as they would in choosing a doctor or a lawyer,” said IRS CI Special Agent in Charge Collins. “IRS criminal investigators will use all permissible tools to pursue these criminals and hold them accountable.”

According to the plea agreements, since about 2003, under the artifice of RGM Enterprises, LLC, Linda Livolsi had been soliciting and inducing persons to give her money for the purpose of investing it in a purported hedge fund that offered large monetary returns.  In reality, the hedge fund never existed and the Livolsi’s spent most the money for their personal benefit.  Linda and William Livolsi, Jr. were married in 2004, and according to the plea agreements, William Livolsi participated in the fraud scheme by vouching to victims about the scheme, by creating a trust and bank accounts into which he received and withdrew monies deposited by victims, and by using the fraud monies for his own personal benefit.  The victims were fooled into thinking their investments were good because the Livolsi’s provided them with false and fraudulent financial statements and account statements. The Livolsi’s fraudulently obtained about $6.5 million in funds from six investors from 2003 to 2007, including approximately $5 million that came from one victim.  Linda Livolsi also filed false federal tax returns for the years 2003 to 2006, and failed to file tax returns for 2007 and 2008. Her total tax liability for those years, not including interest and penalties, is approximately $1.1 million.

The case was investigated by the FBI and IRS Criminal Investigation and 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.

LAS VEGAS, Nev. – Three Las Vegas men who stole controlled substances and designer goods from warehouses and delivery drivers, and conspired to kidnap and rob a pharmaceutical delivery van driver, were sentenced on Friday, April 17, 2015, to eight, 10, and 16 years in prison and three years of supervised release, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

Alexander Del Valle Garcia, 42, was sentenced to 96 months in prison, Julio De Armas Diaz, 55, was sentenced to 130 months in prison, and Alexis Torres Simon, 46, was sentenced to 192 months in prison. The three men were convicted by a jury in May 2014 of one count of conspiracy to interfere with commerce by robbery in addition to one count of conspiracy to commit theft from interstate shipment.  Garcia was also convicted of one count of making a false statement to the FBI. Diaz was also convicted of one count of making a false statement to the FBI and three counts of theft from interstate shipment. Simon was also convicted of one count of felon in possession of a firearm and three counts of theft from interstate shipment.

“We regularly use federal laws to prosecute persons who use guns and violence to commit robberies and thefts in our community,” said U.S. Attorney Bogden. “Not only were these defendants committing thefts and planning a violent robbery, but they were selling stolen controlled substances causing additional harm to the community.”

According to the court records and evidence introduced at trial, beginning no later than about October 2012 and continuing to April 8, 2013, Diaz and Simon broke into warehouses, storage facilities, and delivery vans, and stole designer handbags and controlled substances and sold the goods for their own financial gain.  The defendants broke into warehouses by cutting through warehouse doors, and broke into delivery vans and other vehicles that had been left unsupervised in commercial parking lots. Between April 7 and April 8, 2013, Diaz, Simon and Garcia conspired to kidnap and rob a delivery van driver with a firearm in order to obtain control and possession of the van containing controlled substances.  On April 8, Garcia falsely told FBI agents that he was driving a friend to apply for a job the morning of his arrest and that gloves and duct tape found in the car he was driving belonged to the registered owner of the vehicle.  On April 8, Diaz falsely told the FBI that he had no knowledge of a Beretta 9mm firearm recovered that day from the trunk of his vehicle, when he knew that the firearm had been placed in the trunk to be used that day in the planned robbery and theft of the van driver.

This case was investigated by the FBI and the Las Vegas Metropolitan Police Department, and prosecuted by Assistant U.S. Attorneys Christina M. Brown and Daniel R. Schiess.

LAS VEGAS, Nev.  – A Las Vegas man pleaded guilty today to shipping illegal drugs, including codeine and marijuana, from Nevada to other states, and using a false identity and structured bank deposits to hide over $850,000 in proceeds that he received from the drug trafficking activities, announced U.S. Attorney Daniel G. Bogden, for the District of Nevada.

Damien Williams, 26, pleaded guilty before Senior U.S. District Judge Howard D. McKibben to one count of conspiracy to distribute a controlled substance, one count of conspiracy to launder money, and one count of aggravated identity theft, and is scheduled to be sentenced on July 22, 2015. Williams faces a maximum of 20 years in prison on the drug and money laundering counts, two consecutive years in prison on the aggravated identity theft count, and fines of up to $1 million.

“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.

This case was investigated by IRS Criminal Investigation, U.S. Postal Inspection Service, and Henderson Police Department.

RENO, Nev. – A man who was found in possession of 6,000 images and 20 videos of child pornography, including child rape, has been sentenced to 10 years in prison, lifetime supervised release, and ordered to pay $25,000 in restitution to various victims, announced U.S. Attorney Daniel G. Bogden, for the District of Nevada.

Andrew Wayne Hamrick, 30, of Carson City, Nev., who pleaded guilty on July 28, 2014, to one count of distribution of child pornography and one count of receipt of child pornography, was sentenced on April 6, by U.S. District Judge Miranda M. Du. Hamrick has been in custody since he was arrested in April 2014. 

“As the investigation in this case demonstrates, there are persons trolling the Internet 24 hours-a-day looking for accomplices and innocent children to harm,” said U.S. Attorney Bogden. “Thanks to the dedication and skills of these investigators and prosecutors, we are able to identify, arrest and successfully prosecute these dangerous predators.”

According to the court records, in October 2013, Hamrick engaged in a series of email and text message conversations with an FBI special agent who was posing undercover as an adult female interested in incest.  Hamrick provided the undercover agent with instructions on how to teach the undercover agent’s fictional six-year old niece to engage in sexual activity.  During the chat sessions, Hamrick emailed approximately 10 images of child pornography to the undercover agent.  In March 2014, a federal search warrant was executed at Hamrick’s home in Carson City, and agents recovered two cellular telephones that, upon forensic examination, were found to contain a total of approximately 6,000 images and 20 videos of child pornography. The images and videos included depictions of child rape, bestiality, sadistic or masochistic conduct, and bondage-related activities with both young boys and girls. Agents obtained a federal arrest warrant for Hamrick, and he was arrested in Carson City while driving his vehicle.  Law enforcement officials recovered another cellular telephone from Hamrick that had been activated only a few hours after the search warrant was served on his home.  Several more images of child pornography were recovered from the new phone. Hamrick worked as a locksmith in Carson City.

The case was prosecuted by Assistant U.S. Attorney Carla Higginbotham.  It was investigated by the FBI, Nevada Attorney General’s Office, and Northern Nevada Internet Crimes Against Children Task Force, and 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 Las Vegas man who told federal homeland security officials on June 3, 2014, that he had placed explosives under the desks of two federal district court judges in Las Vegas and planned to blow them up, has been sentenced to 75 months in federal prison, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

Clifford James Schuett, 60, was sentenced by U.S. District Judge Jennifer A. Dorsey on April 7, 2015.  Schuett pleaded guilty in December 2014 to one count of threatening to kill or cause damage by explosive.

“We take all threats to federal officials and federal buildings very seriously,” said U.S. Attorney Bogden.  “Fortunately, no one was injured as a result of the threats in this case, and the perpetrator has been convicted and sentenced and is in federal custody for a lengthy period of time.”

According to the plea agreement, on June 3, 2014, Schuett entered a U.S. Immigration and Customs Enforcement (ICE) field office in Las Vegas and stated that he had placed explosives in the courtrooms and under the desks of two U.S. District Judges in the Lloyd George Federal Courthouse with the intent to kill them. Law enforcement agents detained Schuett, and notified federal courthouse security of the threat. The courthouse was searched and cleared of any threats, and no explosives were located. Schuett told the agents that he wanted to blow up one of the judges because the judge had sent him to prison, and wanted to blow up the other judge because the judge had turned down his court case.  Schuett also said that if he were released from custody, he would shoot a federal judge and would first go after the judge who had sent him to prison.  Schuett was previously convicted in March 2010 of threatening to blow up Nellis Air Force Base, and sentenced to 42 months in prison and three years of supervised release.  When Schuett was released from prison on that conviction, he failed to report to his probation officer and was sentenced in June 2013 to one additional year in prison.

This case was investigated by the FBI, ICE, and Las Vegas Metropolitan Police Department, and prosecuted by Assistant U.S. Attorney Phillip N. Smith, Jr.

LAS VEGAS, Nev.  – Dr. Dipak Desai, the former owner of a defunct Nevada endoscopy center, pleaded guilty today to conspiracy to defraud Medicare, Medicaid and other private health insurance companies by inflating and overcharging for anesthesia services it provided, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

“Dr. Desai intentionally defrauded the federal health care system for his own personal enrichment,” said U.S. Attorney Bogden. “He has finally taken responsibility for his conduct.  We are hopeful this closes a long and sordid chapter of harm caused to the people and businesses of Nevada.”

Desai, 65, of Las Vegas, pleaded guilty before U.S. District Judge Larry R. Hicks to one count of conspiracy to commit health care fraud, one count of health care fraud, and agreed to the forfeiture of property of up to approximately $2.2 million.  Desai is scheduled to be sentenced on July 9, 2015, and faces a maximum of five years in prison on the conspiracy count, 10 years in prison on the health care fraud count, and maximum fines of $250,000 on each count.

Last July, Desai’s co-defendant and chief operating office of the endoscopy center, Tonya Rushing, pleaded guilty to one count of conspiracy to commit health care fraud, and is scheduled to be sentenced on May 4, 2015.

According to Desai’s guilty plea agreement, between about January 2005 and February 2008, Desai and Rushing conspired to overcharge Medicare, Medicaid, and other private health insurance companies at the Endoscopy Center of Southern Nevada by significantly overstating the amount of time the certified registered nurse anesthetists spent with patients on a given procedure.  Desai and Rushing created a separate company, Healthcare Business Solutions, owned by Rushing, to handle the billing for the anesthesia services.  This company received approximately nine percent of all money collected for anesthesia services rendered at the endoscopy center. Desai and Rushing imposed intense pressure on the endoscopy center employees to schedule and treat as many patients as possible in a day, and instructed the nurse anesthetists to overstate in their records the amount of time they spent on the anesthesia procedures.  Desai and Rushing also instructed the office staff to rely on the false anesthesia records when preparing the claims for reimbursement which were sent to Medicare, Medicaid and the insurance companies.  The plea agreement states that the parties agreed that the amount of loss to the victims is approximately $2.2 million.

This case was investigated by the FBI, Office of the Nevada Attorney General, Health and Human Services Office of Inspector General, Department of Labor Office of Inspector General, Food and Drug Administration Office of Criminal Investigations, and the United States Postal Inspection Service, and prosecuted by Assistant U.S. Attorney Crane M. Pomerantz and Mark N. Kemberling, who was designated as a Special Assistant U.S. Attorney on this case and is Chief Deputy Nevada Attorney General.

According to a recent report by the Inspector General for the U.S. Department of Health and Human Services, for every dollar the Departments of Justice and Health and Human Services have spent fighting health care fraud, they have returned an average of nearly eight dollars to the U.S. Treasury, the Medicare Trust Fund and others. To learn more or to report Medicare fraud, go to http://www.stopmedicarefraud.gov/

LAS VEGAS, Nev. – Federal, state and local law enforcement joined arms today to announce the results of a six-month arrest surge of child predators in southern Nevada, and to discuss their ongoing efforts to identify and prosecute persons who are committing sex crimes against children in Nevada, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

At a news conference in the Lloyd D. George Federal Courthouse, U.S. Attorney Bogden was joined on stage by FBI Assistant Special Agent in Charge Rick Brodsky, Clark County District Attorney Steve Wolfson, Clark County Sheriff Joe Lombardo, Nevada Attorney General Adam Laxalt, HSI Assistant Special Agent in Charge Mike Harris, U.S. Marshal Christopher Hoye, and Captain Michael Johnston of the Henderson Police Department to announce arrest and prosecution results in Operation Protect the Powerless. The Operation occurred from June 1 to Dec. 31, 2014, and resulted in the prosecution and conviction of 219 persons, the execution of 100 search warrants, and the recovery of over 500,000 images and 2,700 videos of child rape and pornography. The surge also resulted in prosecutions are being handled jointly by the U.S. Attorney’s Office and Clark County District Attorney’s Office, and resulted in distinct charges in federal and state court.

Henry Genaro Macias, 33, of Las Vegas, Nev., is a defendant who was jointly prosecuted by state and federal authorities and was sentenced during Operation Protect the Powerless. Investigators determined that Macias was using the internet to share numerous files of child pornography and at the same time was molesting minor children.  Macias pleaded guilty in federal court to receipt of child pornography and was sentenced on Dec. 4, 2014, to 12 years in prison and lifetime supervised release.  Macias also pleaded guilty in Clark County District Court to attempt lewdness with a child and was sentenced on July 29, 2014, to six to 15 years in prison.

Operation Protect the Powerless was organized and led by the Project Safe Childhood (PSC) Task Force in southern Nevada, and targeted child traffickers, persons who were coercing and enticing minors for sex, child pornographers, child molesters and child rapists.  The Task Force, comprised of federal, state and local investigators and prosecutors, was reorganized in 2013 to provide a format for weekly meetings in Las Vegas to review cases involving sex crimes against children and to determine the best venue for prosecution.  Members of the Task Force have also been participating in outreach at Clark County schools in order to educate parents and children about the dangers of the internet and unsuspecting child sex predators.  The reorganization promptly resulted in the successful six-month operation.

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 Gig Harbor woman has been sentenced to six months in prison for participating in an investment fraud scheme that bilked over 50 victims out of millions in cash for almost a decade, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

Constance C. Fenton, 70, was sentenced on March 2, 2015, in Las Vegas, by U.S. District Judge Jennifer A. Dorsey. Fenton was also sentenced to six months of home confinement, three years of supervised release, 40 hours of community service, and ordered to pay approximately $2.9 million in restitution. Fenton pleaded guilty in September to one count of conspiracy to commit money laundering.  She must report to federal prison by June 2, 2015.

Fenton was one of six persons charged in the investment fraud scheme.  According to the plea memoranda, the defendants lured victims into the scheme by falsely telling them that Thomas A. Cecrle, Jr., 57, of Henderson, Nev., worked as a contractor for the U.S. Department of Homeland Security, purchasing and selling water rights worth millions of dollars as part of a secret government program.  The conspirators then solicited money by falsely claiming that Cecrle needed short-term cash loans to complete his phantom water deals, loans he promised to repay in short order along with a very large return.  Cecrle and his co-conspirators concocted a similar story involving a land deal on the Las Vegas Strip where Cecrle needed short-term loans to supposedly close a deal with Sir Richard Branson.  In truth, however, Cecrle held no position with the federal government and there were no land or water rights deals.

Fenton became the voice of the fraud and ran Cecrle’s “boiler room.” As new victims were introduced to the scheme, Cecrle turned them over to Fenton, who quickly established a rapport over the telephone, maintained contact and commiserated with them when the payout never happened, but always reassuring them that it would happen soon if a little more money was poured into the deal.  Fenton also told the victims that she was invested and like them, was also expecting a return. Fenton portrayed herself as a religious person and often appealed to the religious beliefs of the victims.  Fenton dealt with victims across the United States, at all time of the day and night and, with few exceptions, always by telephone and email, never meeting them face-to-face.

Using his office as a family court judge in Clark County, Nev., defendant Steven E. Jones, 57, of Henderson, Nev., knowingly vouched for Cecrle and the legitimacy of the deals to potential investors when he knew the deals were, in fact, scams. Jones continued to further the conspiracy by receiving money from a victim in the parking lot of the Family  Division Courthouse, meeting with at least one potential investor in his chambers and elsewhere in the courthouse to discuss the investment,  obtaining an “Own Recognizance” bond to release Cecrle from custody after he was arrested for bad checks he had passed to a victim, and opening and maintaining a joint checking account with Cecrle, through which flowed over $260,000 in illegal proceeds.

During the entire conspiracy, which lasted from about September 2002 to October 2012, the defendants defrauded at least 22 victims of more than $2.6 million, money they quickly converted to their own use.

All of the co-defendants pleaded guilty and have been sentenced. Cecrle was sentenced on March 2, 2015, to 6½ years in prison. Jones was sentenced on Feb. 25, 2015, to 26 months in prison. Terry J. Wolfe, 59, of Henderson, Nev., was sentenced on Feb. 19, 2015, to time served, having served approximately 16 months in pretrial detention. Mark L. Hansen, 56, of Corvallis, Ore., was sentenced on Jan. 27, 2015, to four months in prison. Ashlee M. Martin, 31, of Las Vegas, Nev., entered into a 12-month pretrial diversion agreement with the government.

The case was investigated by the FBI and prosecuted by First Assistant U.S. Attorney Steven W. Myhre and Assistant U.S. Attorney Daniel R. Schiess of the U.S. Attorney’s Office for the District of Nevada.

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. – Former Clark County Family Court Judge Steven E. Jones was sentenced today by U.S. District Judge Jennifer A. Dorsey to 26 months in prison, three years of supervised release, and ordered to pay approximately $2.9 million in restitution for participating in an investment fraud that bilked over 50 investor victims out of millions in cash for almost a decade, announced U.S. Attorney Daniel G. Bogden for the District of Nevada and Laura Bucheit, Special Agent in Charge of the FBI for Nevada.

Jones, 57, of Henderson, Nev., who served for almost 20 years as a family court judge in Clark County, pleaded guilty in September to one count of conspiracy to commit wire fraud.  He was permitted to self-surrender to federal prison by May 25, 2015.  Jones’ sentence was enhanced for violating his position of trust, and because the loss amount was over $200,000 and there were more than 10 victims. Jones resigned his position as judge and surrendered his Nevada law license in September as one of the conditions of his plea agreement.

“Former Judge Steven Jones played an integral part in this investment fraud scheme and was the most prominent and indispensable member,” said U.S. Attorney Bogden. “This crime was not a “one-off” for Jones, but a calculated and deliberate decision that he replicated for years. He knew right from wrong, but engaged in the conduct anyway because he could.”

"This sentencing reaffirms to the public that the FBI will continue to make certain that no one is above the law, and when public corruption is identified, it will be aggressively investigated and prosecuted,” said Special Agent in Charge Bucheit.

All of the co-conspirators charged in the fraud scheme have also pleaded guilty. Thomas A. Cecrle, Jr., 57, of Henderson, Nev., and Constance C. Fenton, 70, of Gig Harbor, Wash., are scheduled to be sentenced on March 2. Terry J. Wolfe, 59, of Henderson, was sentenced on Feb. 19, to time served, three years of supervised release, and ordered to pay approximately $2.9 million in restitution.  Mark L. Hansen, 56, of Corvallis, Ore., was sentenced on Jan. 27, 2015, to four months in prison, three years of supervised release, and ordered to pay approximately $2.9 million in restitution. Ashlee M. Martin, 31, of Las Vegas, Nev., entered into a 12-month pretrial diversion agreement with the government.

According to the plea memoranda, defendants lured victims into a fraud scheme by falsely telling them that Cecrle worked as a contractor for the U.S. Department of Homeland Security, purchasing and selling water rights worth millions of dollars as part of a secret government program.  The co-conspirators then solicited money by falsely claiming that Cecrle needed short-term cash loans to complete his phantom water deals, loans he promised to repay in short order along with a very large return.  Cecrle and his co-conspirators concocted a similar story involving a land deal on the Las Vegas Strip where Cecrle needed short-term loans to supposedly close a deal with Sir Richard Branson.  In truth, however, Cecrle held no position with the federal government and there were no land or water rights deals.

Using his office as an elected state court judge, defendant Jones knowingly vouched for Cecrle and the legitimacy of the deals to potential investors when he knew the deals were, in fact, scams.  According to the plea memorandum, Jones continued to further the conspiracy by receiving money from a victim in the parking lot of the Family  Division Courthouse, meeting with at least one potential investor in his chambers and elsewhere in the courthouse to discuss the investment,  obtaining an “Own Recognizance” bond to release Cecrle from custody after he was arrested for bad checks he had passed to a victim, and opening and maintaining a joint checking account with Cecrle, through which flowed over $260,000 in illegal proceeds.  During the entire conspiracy, which lasted from about September 2002 to October 2012, the defendants defrauded at least 22 victims of more than $2.6 million, money they quickly converted to their own use.

The case was investigated by the FBI and prosecuted by First Assistant U.S. Attorney Steven W. Myhre and Assistant U.S. Attorney Daniel R. Schiess of the U.S. Attorney’s Office for the District of Nevada.

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 Las Vegas man and his mother have been indicted by the federal grand jury on charges that they destroyed the mini-mart store they owned in North Las Vegas in order to collect the insurance proceeds, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

Peter Argyris, 46, of Las Vegas, and his mother, Joann Argyris, 67, of Boulder City, Nev. are charged with conspiracy to commit arson, arson resulting in death, use of fire to commit mail fraud, six counts of mail fraud, and criminal forfeiture. They were arrested yesterday evening by ATF Special Agents, and are scheduled for an arraignment and plea at 3:00 p.m. today before U.S. Magistrate Judge George Foley, Jr. If convicted, they face up to life in prison on the conspiracy and arson charges, 10 years consecutive on the use of fire to commit mail fraud charge, up to 20 years in prison on each mail fraud charge, and fines of up to $250,000 on each count.

“The allegations against the defendants are very serious,” said U.S. Bogden. “Not only did the fire destroy the property, but a life was lost. We will use federal resources to ensure that the persons who committed this crime for monetary gain are convicted and punished.”

"Death by an act of arson is a heinous crime and leaves a devastating impact on the victim’s family and the community," said Special Agent in Charge, Joseph M. Riehl. "ATF and its partners will aggressively pursue this investigation and bring those responsible to justice."

According to the allegations in the indictment, in 2010, the defendants and their company, Argyris Enterprises, LLC, owned a commercial property located at 3820 E. Craig Road in North Las Vegas, which housed a gas station, convenience store and restaurant called the JCW Mini-Mart. The defendants held an insurance policy on the property for approximately $4.7 million. From about June to September 2010, the defendants conspired and devised a scheme to intentionally burn down the mini-mart in order to collect the insurance proceeds. On Sept. 19, 2010, the defendants caused the mini-mart to be destroyed by fire, which resulted in the death of B.D. In December 2010, Peter Argyris submitted an insurance claim seeking approximately $1.4 million for the replacement cost of the building and loss of business income, and falsely represented that the fire damage did not originate by any act of his own.

This case is being investigated by ATF, the North Las Vegas Fire Department, and the North Las Vegas Police Department, and is being prosecuted by Assistant U.S. Attorney Phillip N. Smith, Jr.

 

RENO, Nev. – Michael Stickler, 54, of Reno, was sentenced on Monday, Feb. 9, 2015, by U.S. District Judge Miranda M. Du to 2½ years in federal prison, three years of supervised release, 100 hours of community service, and ordered to pay $200,000 in restitution to the U.S. Department of Health and Human Services and $100,899 to the IRS for his convictions on theft of federal grant money and failing to pay employment taxes, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

“Government programs are often the victims of scams and fraud,” said U.S. Attorney Bogden. “If you steal from a federal program, you risk being investigated, prosecuted and sent to prison.”

Stickler owned and operated a company in Reno called Faith Based Solutions from 1999 to 2009. In 2007, Faith Based Solutions, received $500,000 in federal grant money to teach non-profit organizations how to apply for federal government grants. Part of the grant terms required that $200,000 of the grant funds be paid to sub-grantees. However, Stickler drew down all of the grant funds in the first seven months of the grant period and no money was ever provided to any sub-grantee. Rather, Stickler put the money in accounts that he controlled and used it to pay large salaries to himself and family members, to take elaborate vacations, and for other items that were not approved by the grant. Stickler also collected and withheld employment and FICA taxes from his employees’ wages, but failed to pay them over to the IRS.

Stickler pleaded guilty to one tax charge and was convicted by a jury of the theft charge.  He is released on a personal recognizance bond and must report to federal prison by May 11, 2015.

The cases were investigated by IRS Criminal Investigation and the U.S. Department of Health and Human Services Office of Inspector General. They were prosecuted by Assistant U.S. Attorney Carla B. Higginbotham.

LAS VEGAS, Nev. – In another case of fraud involving the solicitation of money in exchange for business grants, a Las Vegas man has pleaded guilty to conspiracy to commit wire fraud, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.

Mickey Gines, 41, pleaded guilty on Monday, Feb. 2, before U.S. District Judge Gloria M. Navarro to one count of conspiracy to commit wire fraud. Gines is scheduled to be sentenced on June 4, 2015, at 10 a.m., and faces up to 20 years in prison and a fine of up to $250,000.

Two others were also charged in the case. Christine M. Gagnon, aka Crystal Waters, 35, of Escanaba, Mich., pleaded guilty in November to conspiracy to commit wire fraud and is scheduled to be sentenced on March 19, and Gregory Villegas, aka Ray Matsui, aka Ray Mathis, 35, of Las Vegas, is scheduled for trial on March 16. Villegas is in federal custody pending trial.

According to the plea agreement, beginning on about March 1, 2008, and continuing to about May 2, 2012, the defendants entered into a conspiracy to induce small business owners to pay them money for grants that the defendants never intended to pursue. The defendants made numerous false statements to the victims in order to convince them to pay the advance monies, including that they were pre-qualified for or guaranteed “free” private and government grants; that they would partner them with private foundations or government grant programs; that they had obtained grants for other victims; that they would hold their monies in an escrow account; and that their fees were refundable if they did not receive the grants. The defendants knew that their representations were not true, and that they never intended to obtain grants for the victims. Once the defendants received money from the victims, they converted it to their own use. The defendants operated grant funding companies under multiple and evolving names, including BFS Enterprises, Inc. and Global Business Funding, Inc., and used multiple aliases in order to advance the scheme. The defendants repeatedly solicited victims for additional money for goods and services and lulled the victims with false promises of funding and excuses for delays in order to avoid investigation by law enforcement and consumer protection agencies. Using this scheme, the amount of loss that the defendants caused to at least 390 victims was approximately $5.3 million.

This case was investigated by the U.S. Secret Service and FBI and is being prosecuted by Assistant U.S. Attorney Christina M. Brown.

RENO, Nev. – A man who held a federal firearms dealer’s license and owned an indoor shooting range in Reno, Nev., has pleaded guilty to charges that he unlawfully sold multiple firearms, including guns with obliterated serial numbers and machine guns, to undercover ATF agents at his business in April and May 2014, announced U.S. Attorney Daniel G. Bogden for the District of Nevada and ATF Special Agent in Charge Joseph M. Riehl.

James David Harwin, 59, of Reno, pleaded guilty on Thursday, Jan. 29, before U.S. District Judge Miranda M. Du to one count of transfer of a firearm in violation of the National Firearms Act. Harwin is scheduled to be sentenced on May 4, 2015, at 1:30 p.m., and he faces up to 10 years in prison and a fine of up to $250,000.

“Federally licensed firearms dealers are entrusted to uphold federal laws pertaining to the importation, manufacture and sales of firearms,” said U.S. Attorney Bogden. “We will be especially vigilant in our investigations and prosecutions of firearm dealers who consciously choose to violate these laws.”

“A licensed federal firearms dealer who intentionally circumvents the law and commits federal firearm violations will be held accountable,” said ATF Special Agent in Charge Riehl. “This is a serious crime and it is critical for FFL’s to comply with federal regulations to ensure the safety of our communities.”

According to the plea agreement, Harwin and Safe Shot LLC possessed a federal firearms license (FFL) to manufacture and sell firearms. Safe Shot LLC did business as the Safe Shot Indoor Shooting Range, located at 9425 Double R Boulevard in Reno. On or about April 17, 2014, Harwin unlawfully sold four handguns to two undercover ATF agents who told Harwin they were residents of Sacramento, Calif. One of the handguns had an obliterated serial number. On May 2, 2014, Harwin sold a machine gun with an obliterated serial number to the undercover ATF agents, and on May 29, 2014, Harwin unlawfully sold a Street Sweeper shotgun and three machine guns to the undercover agents. Harwin removed the serial numbers on one of the machine guns in the presence of the undercover agents.

This case was investigated by ATF and is being prosecuted by Assistant U.S. Attorney Megan Rachow.