District of Nevada

WASHINGTON – The Justice Department announced today that the U.S. District Court of Nevada has approved a settlement in which the owners and operators of Rosewood Park Apartments, a 902 unit apartment complex in Reno, Nev., will pay $167,000 to resolve a lawsuit alleging discrimination against persons with disabilities who use assistance animals.  

Under the agreement, the defendants in United States v. Rosewood Park LLC et al., will pay a total of $127,500 to a family that was not allowed to move into the complex because one of the members of the household used an assistance animal and to the Silver State Fair Housing Council, a non-profit Nevada organization that assisted the family and conducted testing to investigate the rental practices at Rosewood Park.  The defendants will also pay an additional $25,000 to compensate any other persons harmed by the defendants’ discriminatory policies, who are identified through a process established by the agreement, and will pay $15,000 to the government in civil penalties.  The agreement also requires that defendants adopt and maintain a new policy regarding assistance animals, provide non-discrimination training to their employees and agree to record keeping and monitoring requirements for the terms of the agreement.  The agreement has been approved by the U.S. District Court of Nevada, and takes the form of a consent order that can be enforced by the court.

            The department’s complaint had alleged that the owners, employees and management company of Rosewood Park Apartments violated the Fair Housing Act by limiting individuals with certain assistance animals to a particular section of Rosewood Park Apartments; subjecting such individuals to pet fees; requiring assistance animals to be licensed or certified; and barring companion or uncertified service dogs altogether.  The case began when a family that had sought housing at Rosewood Park and the Silver State Fair Housing Council filed complaints with the Department of Housing and Urban Development (HUD).   HUD investigated the complaint, issued a charge of discrimination and referred the matter to the Department of Justice.  

“The Fair Housing Act ensures that persons with disabilities searching for a home are protected from discrimination,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division.  “The Justice Department will continue to vigorously protect the civil rights of persons with disabilities in Nevada and across the country.”

“Persons who think they have been discriminated against in housing issues should not hesitate to file a report with HUD,” said U.S. Attorney Bogden.  “The U.S. Attorney’s Office, as part of the U.S. Department of Justice, works with HUD to ensure that companies that are treating disabled persons unfairly are punished, and that they adopt policies to prevent further discrimination.”

“Assistance animals play a vital role in helping people with disabilities conduct everyday activities and fully enjoy their homes,” said Bryan Greene, HUD's Acting Assistant Secretary for Fair Housing and Equal Opportunity.  “HUD and DOJ will continue to enforce the Fair Housing Act's protections and ensure that housing providers do not illegally limit assistance animals.”

            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.

            More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt/.  Persons who believe they have experienced or witnessed unlawful housing discrimination may call the Justice Department at 1-800-896-7743, e-mail the Justice Department at fairhousing@usdoj.gov or contact HUD at 1-800-669-9777.  More information about the Fair Housing Act can also be found at www.justice.gov/crt/housing/ or www.hud.gov/fairhousing.

       RENO, Nev.  – A man who transported a 16-year-old girl from Sacramento, Calif., to Reno, Nev. in July 2010 for the purposes of prostitution, has been sentenced to 15 years in prison and lifetime supervised release, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

            Adam Scott, 27, of Fort McDermitt, Nev., was sentenced on Monday, Oct. 21, 2013, by U.S. District Judge Larry R. Hicks.  Scott pleaded guilty on July 25, 2013, to one count of sex trafficking of a minor.

        “Using undue influence and force to coerce a minor to engage in sex is despicable,” said U.S. Attorney Bogden.  “Our law enforcement partners will continue to aggressively search out these sexual predators and our office will continue to aggressively prosecute these child exploitation cases to protect our community and our children.”

            According to the court records, on July 31, 2010, Scott transported a 16-year-old girl from Sacramento to Reno for the purpose of using her for prostitution.  Scott knew that the girl was not 18 years old.  Scott refused to return the girl to Sacramento and maintained her in Reno until about Aug. 11, 2010.  Scott used undue influence and force, including physical assault, in order to cause the girl to engage in commercial sex acts.

The investigation was conducted by the Innocence Lost Task Force made up of the FBI and the Reno Police Department’s Street Enforcement Team. The case was prosecuted by Assistant United States Attorney Carla Higginbotham.

The case has been 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 member of the Playboy Bloods street gang was sentenced today to life in prison for the retaliation murder of a man in November 2004 and the armed robbery of a Henderson, Nev. casino in 2002, announced U.S. Attorney Daniel G. Bogden of the District of Nevada and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.

            “We will use federal resources to prosecute street gang members who commit cowardly and horrible crimes in our community,” said U.S. Attorney Bogden.  “I commend the many law enforcement officers who worked on this investigation and assisted us in ensuring a conviction in this case.”

Jacorey Taylor, aka “Mo-B,” 31, who was convicted by a jury in May 2013, was sentenced by U.S. District Judge Robert C. Jones. Taylor was convicted of engaging in a racketeering (RICO) conspiracy, committing violent crimes in aid of racketeering activity, using a firearm during a crime of violence, participating in a drug conspiracy, and possessing crack cocaine with the intent to distribute.  He is the ninth gang member to be convicted out of 10 charged in a RICO indictment filed in 2008.  The remaining defendant, Markette Tillman, 31, is awaiting trial.

Taylor and co-defendants Reginald Dunlap, aka “Bowlie,” and Steven Booth, aka “Stevie-P,” were convicted of participating in the murder of Billy Ray Thomas, who was shot multiple times in the back on the morning of Nov. 1, 2004, as he worked on a car in the parking lot of the Pecos Terrace Apartments while waiting to take his girlfriend to work.  The defendants murdered Thomas due to their mistaken belief that Thomas was a member of a rival street gang.  According to evidence presented at trial, two car loads of Playboy Bloods members and associates, including Taylor, Dunlap, Booth and others, drove through known Crip neighborhoods searching for rivals to retaliate against for the murder of Quaza Burns, a leader of the Playboy Bloods.  The victim, Billy Ray Thomas, had no gang affiliation. 

Evidence produced at trial also showed that on March 21, 2002, Taylor, armed with an AR-15 style assault rifle, and another man armed with an handgun entered the Klondike Casino in Henderson, forced their way behind the casino cage, and robbed the casino of over $7,000 in currency.

            Dunlap and Booth pleaded guilty to racketeering conspiracy charges during Taylor’s trial and were each sentenced in April 2013 to 20 years in prison.  There is no parole in the federal criminal justice system.

According to court documents and evidence produced at trial, the Bloods are a nationally known criminal street gang whose members engage in drug trafficking and acts of violence.  The Playboy Bloods is a local “set” or affiliate of the Bloods, with local control and operation within the Las Vegas metropolitan area.  Other Bloods sets within the Las Vegas metropolitan area include the Piru Bloods and the West Coast Bloods.  A subset of the Playboy Bloods is the Full Throttle Clique, a group made up of Playboy Bloods members who engage in acts of violence, including murder.  According to evidence presented at trial, Taylor, Dunlap, and Booth were all members of the “Full Throttle Clique” of the Playboy Bloods.  Taylor, along with other Playboy Bloods enterprise members, operated drug houses in the Sherman Gardens Annex (also known as “The Jets”) and the surrounding areas.  

            Eight other defendants who have been convicted and sentenced, as follows:

• Steven Booth, aka “Stevie-P,” 27, pleaded guilty to RICO conspiracy and was sentenced to 20 years in prison on April 10, 2013
• Reginald Dunlap, aka “Bowlie,” 30, pleaded guilty to RICO conspiracy and was sentenced to 20 years in prison on April 9, 2013
• Demichael Burks, aka “Mikey P,” 29, pleaded guilty to RICO conspiracy and was sentenced to 6½ years in prison on Dec. 3, 2010 
• Anthony Mabry, aka “Akim Slim,” 43, pleaded guilty to RICO conspiracy and was sentenced to 14 years in prison on Oct. 20, 2010
• Delvin Ward, aka “D-Luv,” 37, pleaded guilty to RICO conspiracy and was sentenced to 11 years in prison on Sept. 17, 2010
• Terrence Thomas, aka “Seven,” 40, pleaded guilty to drug conspiracy and was sentenced to 10 years in prison on June 16, 2010
• Sebastian Wigg, aka “Rock,” 36, pleaded guilty to drug conspiracy and was sentenced to five years in prison on March 29, 2010
• Fred Nix, aka “June P,” 36, pleaded guilty to drug conspiracy and was sentenced to five years in prison on March 29, 2010 

The cases were investigated by the FBI’s Las Vegas Safe Streets Gang Task Force, which includes officers from the North Las Vegas Police Department and Las Vegas Metropolitan Police Department, and are being prosecuted by Assistant United States Attorneys Nicholas D. Dickinson and Phillip N. Smith, Jr., and Kevin L. Rosenberg, Trial Attorney with the U.S. Department of Justice Organized Crime and Gang Section.

        LAS VEGAS, Nev. – The former controller for the company that owned or developed the Residences at MGM, Town Square shopping center, Turnberry Place, Turnberry Towers, and the Stirling Club in Las Vegas, was sentenced today to 37 months in prison, three years of supervised release, and ordered to pay approximately $5.6 million in restitution, announced Daniel G. Bogden, United States Attorney for the District of Nevada.  

Hope Ippoliti, 52, of Las Vegas, who pleaded guilty in March to conspiracy to commit wire fraud, was sentenced by U.S. District Judge Gloria M. Navarro.  Ippoliti was permitted to self-report to federal prison by Jan. 14, 2014.

            “This was a significant amount of money that was embezzled over an almost five-year period,” said U.S. Attorney Bogden.  “Ms. Ippoliti victimized not only Turnberry Associates in the amount of $5.6 million, but caused irreparable harm and financial damage to the many victims and business entities employed and supported by Turnberry Associates.”

Ippoliti worked as the Western Regional Controller for Turnberry West Realty, a subsidiary of Turnberry Associates, LLC.  In that capacity, Ippoliti had signatory authority and access to certain Turnberry bank accounts. From about May 17, 2007, to about Jan. 12, 2012, Ippoliti and a co-defendant, Rocco Lazazzaro, conspired to steal from Turnberry Associates and its affiliates.  Ippoliti created fund transfer requests containing false information that the funds were intended for business-related purposes when she and Lazazzaro actually intended to withdraw the funds for personal use. Ippoliti faxed or emailed the fund transfer requests from Nevada to Turnberry Associates in Florida to cause the transfer of funds into Bank of America accounts over which she had signatory authority.  Ippoliti and Lazazzaro deposited and cashed checks and cashier’s checks drawn on Bank of America bank accounts belonging to Turnberry Associates and its affiliates. The total losses to Turnberry Associates and its affiliates were $5.6 million. 

Lazazzaro, who had a lengthy criminal history, was sentenced on Aug. 22 to 51 months in prison. 

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

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

     -Funds Will Hire School Resource Officers and Critical Law Enforcement Positions-

RENO, Nev. – Daniel G. Bogden, United States Attorney for Nevada, in conjunction with the U.S. Department of Justice Office of Community Oriented Policing Services (COPS), is pleased to announce that today the U.S. Department of Justice awarded a grant of $750,000 to the City of Reno for the hiring of six law enforcement officers.

“In the wake of past tragedies, it's clear that we need to be willing to take all possible steps to ensure that our kids are safe when they go to school,” said Attorney General Eric Holder. “These critical investments represent the Justice Department's latest effort to strengthen key law enforcement capabilities, and to provide communities with the resources they need to protect our young people. Especially in a time of increased challenges and limited budgets, our top priority must always be the safety and well-being of our children.”

Overall the COPS Office funded awards to 263 cities and counties, aimed at creating 937 law enforcement positions.  More than $125 million will be awarded nationally, including nearly $45 million to fund 356 new school resource officer positions.

“Keeping our children safe when they go to school is of critical importance and I am pleased to join the Attorney General and the COPS Office in announcing these grants which will help provide our communities with the resources needed to accomplish this vital mission,” said U.S. Attorney Bogden.

“The COPS Office is pleased to assist local law enforcement agencies throughout the country address their most critical public safety issues,” said Joshua Ederheimer, Acting Director of the COPS Office.  “Funding from this year’s program will allow many cities and counties to apply new sworn personnel to issues related to violent crime, property crime, and school safety.”

The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers.  The program provides the salary and benefits for officer and deputy hires for three years.

Grantees for the 2013 hiring program were selected based on their fiscal needs, local crime rates, and their community policing plans.  There was an additional focus this year on agencies requesting assistance in developing school safety programs that would include the hiring of a school resource officer.  School resource officer positions funded by the COPS Office are sworn law enforcement positions that work within a school district or facility, interacting directly with school administrators and students.    

The COPS Office is a federal agency responsible for advancing community policing nationwide.  Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.

For the entire list of grantees and additional information about the 2013 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.

        LAS VEGAS, Nev. – Following a two-week jury trial, a Las Vegas real estate escrow officer was convicted today of conspiracy and fraud charges for her involvement in a mortgage fraud scheme that caused millions of dollars in losses to the lenders and financial institutions, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

            Theresa Marcianti, 60, of Las Vegas, was convicted of one count of conspiracy to commit bank, mail, and wire fraud, two counts of bank fraud, and one count of wire fraud, and is scheduled to be sentenced on Dec. 10, 2013, at 10:00 a.m.  She faces up to 20 years in prison and a $250,000 fine on the conspiracy count, and up to 30 years in prison and a $1 million fine on each bank fraud and wire fraud count. 

            “Over the last five years, we have made the prosecution of mortgage fraud cases a priority,” said U.S. Attorney Bogden. “This type of fraud was a catalyst to the real estate crisis in Nevada. Punishing those criminals for their actions should send a strong message to others who are looking to profit from the misfortune of others.”

            According to the indictment and evidence presented to the jury during the trial, from about 2003 to 2008, Marcianti, a real estate escrow officer who worked for Lawyer’s Title and National Alliance Title, conspired with others to trick lenders into making home loans through the use of false statements.  The conspirators cheated lenders by using straw buyers to buy homes, submitting false information to lenders to make it appear that the straw buyers qualified for the loans, and taking a portion of the loans for their personal gain.  Marcianti helped the co-conspirators submit the false information to the lenders to obtain the mortgage loans. 

The conspirators in the scheme obtained control of approximately 227 properties which had a total purchase price of more than $100 million.  The exact number of fraudulent transactions in which Marcianti was involved and the losses for which she is responsible will be determined at sentencing in December.

The case was investigated by the FBI and prosecuted by Assistant U.S. Attorneys Daniel R. Schiess and Kimberly M. Frayn.

This case was handled 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. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.

       LAS VEGAS, Nev. – Following a two-week jury trial, the 10th person charged in a Las Vegas mortgage fraud scheme that caused approximately $15 million in losses to the lenders and financial institutions, was convicted today of conspiracy and fraud charges, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

            Jabari L. Marshall, 36, of Las Vegas, was convicted of one count of conspiracy to commit mail fraud and wire fraud, and is scheduled to be sentenced on Jan. 9, 2014.  He faces up to 20 years in prison and a $250,000 fine.  Nine co-defendants pleaded guilty before trial.  Eight of those are awaiting sentencing and one has been sentenced.

“The number of homes and dollar amount of the loans involved in this crime is staggering,” said U.S. Attorney Bogden.  “All of the persons charged in this conspiracy have now been convicted and are facing significant prison sentences.  As each of those convicted fraudsters can now attest, mortgage fraud is a very serious offense that will send you to prison.” 

            According to the indictment and evidence presented to the jury during the trial, from about 2005 to 2007, the defendants were involved in a mortgage fraud scheme which involved the use of straw buyers and the submission of false information to financial institutions in order to obtain mortgage loans. Once the mortgage loans were approved, the defendants caused money from the loan transactions to be disbursed to their own use and benefit.  The defendants typically rented the homes and re-sold them for a profit, using the same scheme.  They then defaulted on the loans, causing approximately $15 million in losses to the lenders.  Defendant Lloyd Gardley was considered to be the leader of the conspiracy.  Lloyd Gardley, Candis Gardley, and Marshall recruited straw buyers, loan officers and others into the scheme.  Marshall also provided false Social Security numbers and false documents for some of the loans. The other defendants included two loan officers, two real estate agents, an escrow assistant, an accountant, and an individual who provided false verifications of rent. 

            The evidence showed that the defendants used this fraudulent scheme to purchase 30 homes in Las Vegas between 2005 and 2007. The total value of the mortgages was approximately $35 million.   Some of the homes were “flipped” or sold twice within short periods of time. 

The case was investigated by the United States Postal Inspection Service and prosecuted by Assistant U.S. Attorneys Brian Pugh and Sarah E. Griswold.

This case was handled 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. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.

         LAS VEGAS, Nev. – A man who conspired with a now-deceased Henderson pediatrician to take thousands of dollars from chronically ill patients for fraudulent stem cell implant procedures, was sentenced today to 17½ years in federal prison and ordered to pay approximately $1 million in restitution, announced Daniel G. Bogden, United States Attorney for the District of Nevada. 

            Alfred T. Sapse, 87, of Las Vegas, was sentenced by Senior U.S. District Judge Kent J. Dawson, and was immediately remanded to federal custody.  Sapse was convicted by a jury in November 2012 of conspiracy to commit mail fraud and wire fraud, seven counts of mail fraud, and 11 counts of wire fraud.  The co-defendant, Ralph M. Conti, M.D, of Henderson died several weeks following the conviction.

            “Using purported medical practices and procedures to steal from vulnerable persons who are ill is disgusting and wrong,” said U.S. Attorney Bogden.  “We will continue to use federal investigative and prosecutorial resources to ensure that persons who commit such crimes are held accountable and sent to prison.”

“Today’s sentence holds Mr. Sapse accountable for preying on patients who sought treatment for serious medical conditions, and demonstrates FDA’s commitment to protecting public health,” said Antoinette V. Henry, Special Agent in Charge, FDA Office of Criminal Investigations, Metro-Washington Field Office.

            According to the superseding indictment and evidence introduced by the government at trial, from about January 2005 to current, Sapse, who purports to be a retired foreign physician but who has never been licensed to practice medicine in Nevada or any other state, convinced chronically ill patients to undergo experimental implant procedures and convinced investors to pay him large amounts of money without knowing the short- or long-term effects of the implant procedures he promoted. The procedures involved the implantation of portions of placental tissue into the abdomen of the patients for the treatment of their diseases.  Sapse allegedly targeted extremely sick patients, by claiming that his “proprietary” procedure was especially effective for patients with multiple sclerosis, cerebral palsy and retinitis pigmentosa (a disease of the retina which can cause blindness.) 

 In the fall of 2005, Sapse hired Conti, a pediatrician in Henderson who had no prior stem cell training, to perform the procedures.  At Sapse’sdirection, between approximately February 2006 and November 2006, Conti performed the implant procedure on approximately 34 patients in Las Vegas, knowing that it would not benefit the patients.  During 2006, procedures performed by Dr. Conti resulted in the infection of at least two patients.  In November 2006, the FDA sent Sapse and Conti a warning letter explaining that their procedure violated federal law, but after that date Conti performed at least one more implant and Sapse coordinated the implantation of a least two more patients. 

Sapse and Conti made a number of misrepresentations to prospective patients and investors, including that the placental tissue used in the procedures was obtained only from Caesarian section births, so as to reduce the risk of passing infection, or otherwise to prevent “damage” to the placenta; that he had achieved “considerable success” with a procedure that was going to “revolutionize medicine as it is known today”; that wheelchair bound patients would “definitely walk again”; and that he subjected the placental tissue he obtained to a “proprietary process.”

Sapse failed to obtain any approvals from the FDA, as he knew he was required to do, prior to coordinating the implantation of placental cells in patients by Conti. Sapse and Conti made false representations to FDA regulatory investigators regarding their involvement in the scheme, conducted no meaningful follow-up with the patients who underwent the implant procedures, and concealed from patients and prospective patients the adverse effects suffered by previous patients.  

In about February 2007, Sapse relocated his fraudulent scheme to Mexico and entered into an arrangement with a Mexican physician in Nuevo Progresso, Mexico, to perform his implant procedure.  At Sapse’sdirection, the Mexican physician performed the implant procedure on approximately 100 patients between approximately February 2007 and May 2010 in Mexico.

Sapse received approximately $1 million from patients and investors, approximately $700,000 of which he spent on personal expenditures and for gambling at local casinos.  Conti received in excess of $60,000 from the fraudulent procedures, all of which was in cash and none of which was reported on the accounting books of his medical practice.  Sapse or Conti did not use any of the money for laboratory research, animal studies or human clinical studies relating to the short- and long-term effects of the implant procedures they were promoting.

            This case was investigated by the FDA Office of Criminal Investigations and prosecuted by Assistant U.S. Attorney Crane M. Pomerantz and First Assistant U.S. Attorney Steven W. Myhre.

         LAS VEGAS, Nev. – Following a nine-day jury trial, a federal jury has convicted two Arizona men of committing a home invasion robbery in North Las Vegas, Nev., during May 2012, announced Daniel G. Bogden, United States Attorney for the District of Nevada. 

            Joseph Andrade, 19, and Julian Gaytan, 20, both of Phoenix, Arizona, were convicted this afternoon of one count of conspiracy to travel in interstate commerce in furtherance of racketeering activity, two counts of brandishing a firearm in furtherance of a crime of violence, and one count of interstate travel in aid of racketeering activity.

They are scheduled to be sentenced on Dec. 19, 2013, and face up to five years in prison on the conspiracy charge, up to 20 years in prison on the interstate travel charge, and at least 32 consecutive years in prison on the brandishing charges, as well as fines of up to $1 million.

“This successful prosecution was part of our expanded Project Safe Neighborhood (PSN) program which focuses on violent robberies and other crimes involving the use of firearms by recidivist felons,” said U.S. Attorney Bogden.  “This case should serve notice that persons who commit such violent criminal acts will be prosecuted, and when convicted, they will face the prospects of serving very lengthy prison sentences.  I would like to thank our prosecution team and law enforcement partners for taking these violent criminals off our streets.”

            According to the court records and evidence introduced at trial, on Saturday, May 19, 2012, Andrade, Gaytan, and two co-defendants, Perla Ramirez, 22, and David Duran, 30, also both from Phoenix, Ariz., drove from Phoenix to Las Vegas with the intent to commit a home invasion robbery at a designated residence in North Las Vegas.  The defendants drove to the residence and caused one of the occupants to open the front door.  The defendants entered the residence brandishing guns and ordered all seven of the occupants of the home to the floor.  The defendants threatened to kill the occupants if they did not tell them where money and/or jewelry were located.  The defendants ransacked the home in order to locate money or valuable property and stole cash, cellular telephones, jewelry and other property before exiting the residence and either fleeing on foot or returning to their vehicle.  North Las Vegas Police Officers were dispatched to the scene at approximately 10:30 p.m. following a call from the occupant of a home across the street where one of the female minor victims had run and advised that men had broken into her house with guns.  

            Defendants Andrade and Ramirez were arrested outside the residence immediately following the robbery.  Gaytan was arrested in Phoenix about six weeks following the robbery, and Duran, who fled the scene, has not yet been arrested and is a fugitive.  

            Ramirez pleaded guilty on Sept. 3, 2013, to conspiracy to travel in interstate commerce in furtherance of racketeering activity, and is scheduled to be sentenced on Dec. 5, 2013.

            The investigation was conducted by the North Las Vegas Police Department and FBI, as part of the Safe Streets Task Force and PSN program.   It was prosecuted by Assistant United States Attorneys Cristina D. Silva and Phillip N. Smith, Jr.

         LAS VEGAS, Nev. – Two northern Nevada Indian tribes will receive over $1.8 million in U.S. Department of Justice grants to assist them enhance law enforcement practices and sustain crime prevention and intervention efforts, announced Nevada’s U.S. Attorney, Daniel G. Bogden. The Nevada tribes were included in an announcement made yesterday 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 192 grants totaling over $90 million were made to more than 110 American Indian and Alaska Native nations.

“I am very pleased that Nevada tribes have received this much needed financial assistance from the Department of Justice,” said U.S. Attorney Bogden.  “Over the last several years, representatives from my office, federal law enforcement, and I have visited and consulted with all of our Nevada tribes concerning the law enforcement and safety issues they face on their tribal lands.  It has brought a better understanding of how we can better serve and support our tribal partners.”

            Nevada tribes receiving awards are the Pyramid Lake Paiute Tribe and the Washoe Tribe of Nevada and California.  Each of these tribes received a grant for public safety and community policing and for the violence against women tribal governments program. More information on the awards is available at www.justice.gov/tribal/docs/ctas-award-list-2013.pdf.

The awards are made through the department’s Coordinated Tribal Assistance Solicitation (CTAS), a single application for tribal-specific grant programs.  The department developed CTAS through its Office of Community Oriented Policing, Office of Justice Programs and Office on Violence against Women, and administered the first round of consolidated grants in September 2010.  Over the past four years, it has awarded 989 grants totaling more than $437 million.  Information about the consolidated solicitation is available at www.justice.gov/tribal/.  A fact sheet on CTAS is available at www.justice.gov/tribal/ctas2013/ctas-factsheet.pdf.

         RENO, Nev. - A California man who led a group of individuals selling methamphetamine in the Reno area, has been sentenced to 24 years in prison and five years of supervised release for his conviction on federal drug trafficking charges, announced Daniel G. Bogden, United States Attorney for the District of Nevada.   

Antonio Casares-Cuevas, 30, of San Jose, Calif., was sentenced on Thursday, Sept. 12, 2013, by Senior U.S. District Judge Larry R. Hicks.  Casares-Cuevas pleaded guilty in May 2013, to conspiracy to possess with the intent to distribute at least 500 grams of methamphetamine. 

According to the court filings, Casares-Cuevas lived in San Jose, Calif. and made frequent trips to Reno, Nev. where he supplied persons with methamphetamine for distribution.  Co-defendants Mario Perez, Javier Zaragoza, and Tony Berliner lived in Reno and either distributed methamphetamine or arranged methamphetamine transactions for Casares-Cuevas.

On Jan. 5, Feb. 22, and March 7, 2012, at Casares-Cuevas’ direction, Perez and Zaragoza sold a total of about 5½ ounces of methamphetamine to a person in Reno, who, unbeknownst to them, was a confidential source working with the DEA. The government then obtained a court order authorizing a wiretap of Casares-Cuevas’ cellular telephone.  Intercepted calls revealed Casares-Cuevas’ arrangement to pick up a supply of methamphetamine from co-defendant Armando Romero at his residence in Sacramento, Calif. on April 4, 2012.  On April 4, 2012, Casares-Cuevas picked up the methamphetamine and was later pulled over by California Highway Patrol Officers as he was driving on Highway 99 near the Sacramento and San Joaquin County line.  The officers recovered almost two pounds of pure methamphetamine from his vehicle. 

Also on April 4, 2012, agents executed a federal search warrant at Casares-Cuevas’ home in San Jose, where Casares-Cuevas resided with co-defendant Leonela Urbina, and recovered more than six ounces of methamphetamine from a shed and $13,738 in cash from his bedroom.  Federal search warrants were also executed at two homes in Reno where Zaragoza and Perez resided, and from those homes, agents recovered over five more ounces of methamphetamine.  A state search warrant was executed at Romero’s residence, where officers recovered approximately 1½ pounds of pure methamphetamine.

 Co-defendants Armando Romero, Mario Perez, Javier Zaragoza, Leonela Urbina, and Tony Berliner, also pleaded guilty to drug trafficking charges and were sentenced to prison terms of between three and 10 years. 

The case was prosecuted by Assistant U.S. Attorney James E. Keller and investigated by the Drug Enforcement Administration (DEA).

         LAS VEGAS, Nev. – A Las Vegas man pleaded guilty today to unlawfully possessing and making explosives at his home in Las Vegas, announced Daniel G. Bogden, United States Attorney for the District of Nevada. 

            Steven Fernandes, 19, pleaded guilty before U.S. District Judge Andrew P. Gordon to one count of possession of an unregistered firearm.  Sentencing is scheduled for Dec. 18, 2013, at 9:00 a.m.  Fernandes, who is in federal custody on the charges, faces up to 10 years in prison and a fine of up to $250,000.

            According to the plea agreement, before and up to Sept. 13, 2012, Fernandes possessed at his home explosive parts and devices which were not registered with the National Firearms Registration and Transfer Record. On about Sept. 10, 2012, Fernandes also transported explosive materials in Nevada, Utah, and Arizona and detonated destructive devices in the Arizona desert. 

            According to other court records, from January to September 2012, several individuals reported to the FBI that Fernandes believed he was a sniper and commanding officer of a militia which was preparing to go to war with the government or an invading country. Fernandes had bragged that he possessed firearms and a large amount of ammunition and could walk into a restaurant filled with people and kill as many people as he wanted.  Fernandes bragged that he was trained in the building of homemade explosives including chlorine bombs, and had made and possessed numerous pipe bombs. 

Federal law enforcement agents arrested Fernandes on Sept. 13, 2012, after they observed him drive away from his residence with a shotgun in his vehicle.  During a search of Fernandes’ vehicle they found a loaded Mossberg Model 500 12-gauge shotgun containing 10 rounds of ammunition.  They also found at least 44 more rounds of shotgun ammunition in the vehicle.  The agents also executed a federal search warrant at Fernandes’ home on Sept. 13, 2012, and recovered firearms, explosive devices, and a number of substances and tools that could be used in the building of explosive and noxious gas releasing devices, including napalm, ammonium and sodium sulfate, sulfur, cannon fuses.  Additionally, they recovered two inert hand grenades, five rifles, four handguns, and thousands of rounds of ammunition, and instructive materials for making explosive devices. 

This case was investigated by the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Clark County Fire Department, and the Las Vegas Metropolitan Police Department, and is being prosecuted by Assistant U.S. Attorney Nicholas D. Dickinson.

         LAS VEGAS, Nev. – Three Las Vegas residents have been indicted by the federal grand jury for allegedly defrauding almost 400 persons of over $5 million in connection with a grant funding telemarketing scheme, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
           
             Gregory Villegas, aka Ray Matsui, aka Ray Mathis, 34; Christine M. Gagnon, aka Lisa Foster, aka Crystal Waters, 33; and Mickey Gines, 40, all of Las Vegas, are each charged with one count of conspiracy to commit wire fraud in connection with telemarketing, and 31 counts of wire fraud.  They were arrested in Las Vegas this morning and are scheduled to make initial appearances in court today before United States Magistrate Judge George Foley, Jr. at 2:30 p.m.

According to the court records, Villegas owned and controlled Executive Solutions, Inc. in addition to Business Funding Services Enterprises; BFS Enterprises; Global Business Funding, Inc.; The Grant People; USA Grant Team; USA Grants; National Financial Advisors; US Filing Services, Inc.; US Filings Service, Inc.; USFS, Inc.; Echoe, Inc.; Worldwide Asset Management; Corporate Capital Team; Business Acumen; and Kuff Ltd. 

These companies were allegedly involved in the business of grant funding. Gagnon and Gines were officers in some of the companies and were also listed as employees in other grant funding companies that they or Villegas owned or controlled. Beginning in about March 2008 and continuing through May 2, 2012, Villegas, Gagnon, Gines and others engaged in a telemarketing scheme to defraud persons of their money, including at least 10 victims over the age of 55. The defendants employed sales staff to place telemarketing calls and operate websites for the purpose of soliciting fees from small business owners who wished to obtain private and government grants.  The defendants and staff allegedly used high pressure sales and lulling tactics and made many types of false statements to customers concerning their ability to deliver grants, when the defendants knew that their true intent was to obtain as much money as possible from the customers, rather than assist them in obtaining grants, and knew that none of their customers had ever received a grant.  

In order to avoid lawsuits and detection by law enforcement, the defendants operated their companies under multiple and evolving names and directed their staff to use aliases which they routinely changed in communications with the customers.  When the grants failed to materialize, the defendants and staff falsely represented to customers that they were only collecting money for other companies or that delays in funding were caused by circumstances beyond the defendants’ control.  In some instances, the defendants agreed to provide partial refunds to customers and fraudulently required the customers to sign release forms stating that the defendants had not engaged in any wrongdoing. 

The indictment alleges that through this scheme, the defendants victimized approximately 390 persons throughout the United States, 10 of whom were over the age of 55, and obtained approximately $5.2 million in fraudulently obtained funds.

If convicted, they face up to 30 years in prison on the conspiracy count, plus up to 10 consecutive years for telemarketing to 10 or more persons over the age of 55, and up to 30 years in prison on each wire fraud count, as well as fines of up to $250,000 per count.

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

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

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

          LAS VEGAS, Nev. - A couple from Iowa and a Nevada accountant were charged today with conspiring to defraud the IRS of over $700,000 through a scheme in which they allegedly used nominee corporations and nominee bank accounts to hide their income and other assets, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

            Darlene Taylor McCord and James Bert McCord, of Iowa City, Iowa, and Wendell Leroy Waite, of Las Vegas, are charged with one count of conspiracy to defraud the United States.  Waite is also charged with one count of income tax evasion and four counts of aiding in the preparation and filing of false and fraudulent federal tax returns.  Darlene and James McCord are also charged with four counts of making and subscribing false and fraudulent federal individual and corporate tax returns, one count of making a false financial condition statement, and nine counts of attempting to evade or defeat the payment of their federal taxes, penalties and interest. 

            The defendants are scheduled to make initial appearances before a federal magistrate judge in Las Vegas on Thursday, Sept. 19, 2013, at 3:00 p.m.  If convicted, they face up to five years in prison and a $250,000 fine on the conspiracy and tax evasion charges, and up to three years in prison and a $250,000 fine on the false or fraudulent tax return charges.

            According to the indictment, Darlene and James McCord were the owner of several Nevada corporations, TOB Management, Inc. Que 1, Inc., and HTR Group, Inc.  Waite was a licensed Certified Public Accountant in Nevada, California, and Utah, who resided and worked in Nevada.

On June 23, 2003, the McCords allegedly owed the IRS approximately $197,420 in personal income taxes, and owed an additional IRS Trust Fund Recovery Penalty of approximately $547,788. From approximately May 2004 through February 2008, the McCords received personal income of over $2.7 million.  Waite was associated with the Asset Protection Group, Inc., (APG) whose primarily function was to offer services to individuals who were trying to hide their assets from creditors, including the IRS, through the use of nominee corporations, nominee bank checking accounts, and “friendly liens” designed to create the illusion that a person’s assets were encumbered by liens.  Beginning in about November 2004, the McCords deposited about $2.7 million into an APG bank escrow account and/or into one of their corporate accounts, allegedly for the purpose of hiding the money from the IRS.  In about February 2005, APG allegedly referred the McCords to Waite for accounting and tax purposes and over the next two years, Waite filed multiple fraudulent federal tax returns for the McCord’s and their nominee corporations concealing their true income and assets.

            The case is being investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney J. Gregory Damm.

         LAS VEGAS - - A home builder was sentenced today by U.S. District Judge Kent J. Dawson to 51 months in prison and three years of supervised release for embezzling from a federal housing grant program that was to be used to build affordable housing for the Navajo people near Chilchinbeto, Arizona, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

William Aubrey, 71, of Mesquite, Nevada, was convicted by a jury in May of two counts of taking and converting money and funds belonging to a tribal organization.  A hearing to decide the amount of restitution Aubrey must pay will be held on Oct. 15, 2013.   Aubrey is to report to federal prison on Jan. 3, 2014.  

“Persons who steal from federal programs cheat the recipients of those programs as well as the American taxpayer,” said U.S. Attorney Bogden.  “As the prosecution of this case demonstrates, persons who steal from federal programs such as HUD or Medicare, will be prosecuted and when convicted face severe penalties.”

The Navajo Nation is a federally recognized sovereign Indian Tribe whose borders encompass a large portion of Arizona and extend into New Mexico and Utah. According to  court records and the evidence introduced at trial, Fort Defiance Housing Corporation was a Navajo Nation non-profit corporation entrusted by the Navajo Housing Authority to manage federal housing funds granted to the Navajo Nation.  Fort Defiance Housing Corporation  contracted with a Lodgebuilder, a for-profit construction company owned and operated by Aubrey, to oversee the construction of several housing developments including the project near Chilchinbeto.  Fort Defiance Housing Corporation also empowered Aubrey to manage the federal housing funds granted to that non-profit corporation for purposes of paying subcontractors, suppliers and other construction expenses.  Aubrey mismanaged and failed to account for those grant funds. Aubrey transferred the housing grant funds into his own personal account and misused a substantial portion of the funds to pay his own gambling debts and other personal expenses.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. 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.

            The case was investigated by the Office of Inspector General for U.S. Housing and Urban Development and prosecuted by Assistant U.S. Attorneys Timothy S. Vasquez and Kathryn C. Newman.

LAS VEGAS, Nev. – Daniel G. Bogden, United States Attorney for Nevada, is pleased to announce that today the U.S. Department of Justice awarded $6 million from the 2013 Crime Victims Fund to the State of Nevada for victim compensation and assistance programs. Victim assistance funds in the amount of $3,954,131, and victim compensation funds in the amount of $2,054,000, have been awarded to the State of Nevada Departments of Health and Human Services and Administration to provide support and services to thousands of victims throughout the state.

Since the Crime Victims Fund was established in 1986, crime victims across Nevada have received services and economic assistance totaling over $80 million , said U.S. Attorney Bogden.  “The United States Attorney’s Office is pleased to support both the collection efforts for the Crime Victims Fund, which provides these program dollars, and the allocation of these resources to help Nevada’s crime victims.”

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

Nevada’s compensation program receives annual grants equal to 60 percent of its total payout to crime victims in a previous year.  Compensation programs work similarly to private insurance, providing reimbursement to, or on behalf of, crime victims for expenses such as medical costs, mental health counseling, funeral and burial costs, and lost wages, as a result of being a crime victim.

The Crime Victims Fund is supported primarily by fines paid by federal criminal offenders – not taxpayers. These fines are collected by United States Attorney’s Offices, the United States Courts, and the Federal Bureau of Prisons.  Fines collected in one year are deposited into the Fund and are available for grant awards the following year.  The USA Patriot Act of 2001 also allowed private gifts, donations and bequests to the Crime Victims Fund. Over 90 percent of Fund deposits are distributed annually by the Department of Justice to states and territories to support state victim compensation and victim assistance programs. Remaining funds are used for training and technical assistance, national demonstration projects and to improve handling of child abuse cases in Indian communities.  In addition, these funds support victim witness coordinator and advocate positions for U.S. Attorney Offices, victim specialist positions in the FBI and a federal victim notification system.   More information on Nevada’s victim compensation and victim assistance efforts is available from the State of Nevada Department of Administration Victims of Crimes Program at (702) 486-2740 in southern Nevada or (775) 688-2900 in northern Nevada, or the State of Nevada Department of Health and Human Services, Division of Child and Family Services, at (775) 684-4400.  Questions may also be directed to OJP’s Office of Communications at (202) 307-0703.

         LAS VEGAS, Nev. – Las Vegas lawyer Gerry Zobrist was sentenced today to 87 months in prison for his involvement in a mortgage fraud scheme that caused over $30 million in losses to lenders, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

            “Mortgage fraud contributed to the decimation of real property values in Nevada,” said U.S. Attorney Bogden.  “Since 2008, we have been working vigilantly with our law enforcement partners to investigate and prosecute these fraudsters.  Hundreds of individuals have been convicted, including lawyers, real estate agents, real estate brokers, loan officers, loan processors, and others who participated in these schemes and most of them are now serving time in federal prison.”

            Zobrist, 43, of Las Vegas, was sentenced by U.S. District Judge James C. Mahan.  Judge Mahan also ordered Zobrist to pay approximately $31 million in restitution and to serve five years of supervised release.  Zobrist pleaded guilty in January to one count of conspiracy to commit bank fraud and wire fraud.  He was allowed to self-report to federal prison by Dec. 6, 2013. 

            According to the plea agreement, from about June 2006 to May 2008, Zobrist and unnamed coconspirators solicited and paid persons with good credit ratings to serve as straw buyers to purchase homes in the Las Vegas area on behalf of Zobrist and the coconspirators.  Zobrist and the coconspirators made offers to purchase the homes, and the sellers agreed to disburse part of the sales proceeds to real estate companies, coconspirators and third party entities controlled by Zobrist and the coconspirators under the pretense that the proceeds constituted attorney’s fees, marketing fees, commissions, and other fees.  Zobrist and the coconspirators caused to be completed and submitted mortgage loan applications and supporting documents in the name of the straw buyers, which contained false and fraudulent information concerning the straw buyers’ income, assets, liabilities, intended occupancy status, and other things. Zobrist and the coconspirators also caused to be submitted to the lenders documents containing false information about the source of the down payments, value of the homes, and intended disbursements to Zobrist, the coconspirators, and straw buyers.  Using this fraudulent scheme, Zobrist and the coconspirators purchased 144 homes and obtained mortgage loans for more than $53 million.  Zobrist and the coconspirators defaulted on the mortgage loans causing the homes to go into foreclosure, and caused the financial institutions to suffer losses of at least $30 million.          

The case was investigated by the FBI and prosecuted by Assistant U.S. Attorneys Daniel R. Schiess and Sarah E. Griswold.

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

         RENO, Nev.  – A man who took pornographic photographs of a seven-year-old relative and posted them on an Internet file sharing site, has been sentenced to 20 years in prison and lifetime supervised release, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

            Gregorio Evaristo Sarabia-Garcia, 31, of Sparks, Nev., was sentenced on Tuesday, Sept. 3, 2013, by U.S. District Judge Miranda M. Du.  Sarabia-Garcia pleaded guilty on June 3, 2013, to one count of production of child pornography and one count of receipt of child pornography. 

        “The safety and well-being of our children is a top priority for the Department of Justice and our office,” said U.S. Attorney Bogden.  “Our law enforcement partners will continue to aggressively search out these sexual predators and our office will continue to aggressively prosecute these child exploitation cases to protect our community and our children.”

            According to the court records, between March 27 and April 26, 2012, an investigator with the Internet Crimes Against Children (ICAC) Task Force in Reno conducted an online undercover operation on an Internet file sharing network in an effort to identify individuals who were advertising, possessing, and distributing child pornography in northern Nevada. The investigator determined that Sarabia-Garcia, who lived in an apartment in Sparks, had placed numerous images of child pornography on the file sharing network. Investigators obtained and executed search warrants for several computers that Sarabia-Garcia possessed at his apartment, and found pornographic photographs of a seven-year-old relative of Sarabia-Garcia, as well as over 150 additional images of child pornography which Sarabia-Garcia had received from the Internet. These images depicted prepubescent minors engaged in sexually explicit conduct, including some files that depicted sadistic and masochistic conduct.  Sarabia-Garcia admitted to investigators that he had taken the photographs of his relative with his cellular telephone and transferred them to his computer.

The investigation was conducted by U.S. Immigration and Customs Enforcement, with the assistance of the Internet Crimes Against Children Task Force.  The case was prosecuted by Assistant United States Attorney Carla Higginbotham.

The case has been 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. – A former financial advisor with Bank of America has pleaded guilty to fraud and tax evasion charges for defrauding six persons of over $2 million during 2010 and 2011, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

Gary H. Lane, 60, of Reno, pleaded guilty on Tuesday, Sept. 3, 2013, before Chief U.S. District Judge Robert C. Jones to 12 counts of mail fraud and five counts of attempt to evade or defeat tax.  Lane is scheduled to be sentenced on Dec. 16, 2013, at 9:30 a.m., and faces up to 20 years in prison for each mail fraud count and up to five years in prison on each tax count, as well as fines of up to $250,000 per count.

According to the indictment, Lane was employed as a financial advisor by Bank of America Investment Services, which later merged with Merrill Lynch, until March 2011. During the course of Lane’s employment, he allegedly developed a scheme to entice persons to invest monies with him through the use of an E-Trade account rather than through normal bank procedures.  Lane allegedly looked for investors who were elderly or lacked investing experience and had a desire for high returns and aversion to risk. Lane told the investors that their funds would be invested in U.S. Treasury Bonds which would pay better than six percent interest and would mature in two years. Lane corroborated the trades by creating false confirmations and distributing them to the victims by mail. After receiving the monies from the victims, Lane gave them to his spouse who mailed them to her E-Trade account.  The monies were then withdrawn at Lane’s direction for his own use or to pay other investors.  In actuality, Lane never purchased any U.S. Treasury Bonds with the victims’ monies.  In fact, there were never any United States Treasury Bonds that existed with a rate of return of greater than six percent and a maturity period of less than two years. 

Using this scheme, the indictment alleges that Lane defrauded approximately six victims of over $2 million between January 2010 and March 2011.  Lane also allegedly filed false and fraudulent individual tax returns for the years 2006 through 2010, substantially understating his income and tax due and owing to the IRS. 

The case was investigated by the FBI, IRS Criminal Investigation and the Nevada Secretary of State Securities Division, and is being prosecuted by Assistant U.S. Attorney Ronald C. Rachow.

This case was handled 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. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.

         LAS VEGAS, Nev. – A man who conspired with a former controller to embezzle millions from the company that owned or developed the Residences at MGM, Town Square shopping center, Turnberry Place, Turnberry Towers, and the Stirling Club in Las Vegas, was sentenced today to 51 months in prison, three years of supervised release, and ordered to pay approximately $3.7 million in restitution, announced Daniel G. Bogden, United States Attorney for the District of Nevada.  

Rocco Lazazzaro, 55, of Las Vegas, was sentenced by U.S. District Judge Gloria M. Navarro. Lazazzaro pleaded guilty in May to conspiracy to commit wire fraud. According to his guilty plea agreement, from about May 17, 2007, to about Jan. 12, 2012, Lazazzaro and Hope Ippoliti, 51, the former controller for Turnberry Associates, conspired to steal more than $3.7 million dollars from Turnberry and its affiliates. 

            “Through this embezzlement scheme, Mr. Lazazzaro and Ms. Ippoliti victimized not only Turnberry Associates in the amount of $5.6 million, but caused irreparable harm and financial damage to the many victims and business entities employed and supported by Turnberry Associates,” said United States Attorney Bogden.  “It is truly sad that the greed and self-indulgent criminal conduct of Mr. Lazazzaro continues to result in harm to so many other innocent victims.”

Ippoliti created fund transfer requests containing false information that the funds were intended for business-related purposes when she and Lazazzaro actually intended to withdraw the funds for personal use. Ippoliti faxed or emailed the fund transfer requests from Nevada to Turnberry Associates in Florida to cause the transfer of funds into Bank of America accounts over which she had signatory authority.  Ippoliti and Lazazzaro deposited and cashed checks and cashier’s checks drawn on Bank of America bank accounts belonging to Turnberry Associates and its affiliates.

The total losses to Turnberry Associates and its affiliates are a total of $5.6 million.  According to Lazazzaro’s guilty plea agreement, he was directly involved in causing approximately $3.7 million of those losses.  The sentencing memorandum filed by the government states that Lazazzaro used the stolen monies for gambling and drug use. 

Lazarro has four prior felony convictions and numerous misdemeanor convictions, many of which involved violence or threats of violence against others through the use or threatened use of fire, knives, or blunt objects.  In 1986, while on probation for a 1980 felony grand theft conviction, he was convicted of committing five robberies in addition to vicious assaults and was sentenced to 10 to 20 years in prison.  He was discharged from parole one year before committing the Turnberry embezzlement crimes.  

Ippoliti pleaded guilty in March to conspiracy to commit wire fraud resulting in total losses of $5.6 million dollars, and is scheduled to be sentenced on Sept. 19, 2013, at 9:00 a.m. before U.S. District Judge Gloria M. Navarro.  

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

Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. 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. – Las Vegas attorney Paul Wommer was sentenced this morning by U.S. District Judge Gloria M. Navarro to 41 months in federal prison for making structured bank deposits to hide money from the IRS, evading income taxes, and filing a false tax return, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

Wommer, 60, of Las Vegas, was found guilty in April following a bench trial.  Wommer was also sentenced to three years of supervised release, and ordered to pay a $7,500 fine and forfeit any proceeds of his crimes.  Judge Navarro also found that Wommer’s testimony at trial was not credible and increased his prison sentence for obstruction of justice.  Wommer was permitted to self-report to federal prison by Nov. 20, 2013.

“Mr. Wommer is the second attorney in the last three months in Nevada to be convicted and sentenced to prison for trying to hide money from the IRS,” said U.S. Attorney Bogden.  “If you do not pay taxes on your income and conceal the income from the IRS, the penalties are severe when you are caught.”

According to the court records and evidence introduced at trial, between June 30 and July 15, 2010, Wommer made or assisted in 15 structured deposits totaling $138,700 for the purpose of evading bank reporting requirements.  These deposits were made as part of a pattern of illegal activity involving more than $100,000 during a 12-month time period.   During that same time period, Wommer willfully attempted to evade federal income taxes in the amount of $13,020 by concealing and attempting to conceal his assets, by making false statements to the IRS, and by placing funds and property in the names of nominees. 

The case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Andrew W. Duncan.  

Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. 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. – A former loan officer from Henderson, Nev., who convinced over 30 victims to give him money for a high yield investment scheme involving the foreign currency exchange market, has pleaded guilty to federal fraud and money laundering charges, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

            Kamalu Gonzales, 47, pleaded guilty on Monday, Aug. 12, 2013, before U.S. District Judge Gloria M. Navarro to two counts of mail fraud, six counts of wire fraud, and two counts of money laundering.  Gonzales is scheduled to be sentenced on Nov. 14, 2013, and faces up to 30 years in prison and a $1 million fine on each of the fraud charges and up to 10 years in prison and a $250,000 fine on each of the money laundering charges.

            According to the court records, from approximately 2007 to 2008, Gonzales told individuals that he was a successful investor and trader in the foreign currency exchange market.  Gonzales recruited individuals to invest with him in the market, telling them that they could earn high rates of return on their investments in a short period of time. Some of the victims wired money to Gonzales, and others borrowed money from their retirement fund, line of credit, or refinanced their houses in order to invest with him. 

During 2007, Gonzales worked as a loan officer for Meridias Capital in Henderson, Nev.  Gonzales helped persons refinance their homes, and placed false information in the loan applications so the individuals could obtain refinancing and cash to which they would not have otherwise been entitled.  Gonzales convinced these individuals to give him some of the cash they received from refinancing for his investment fraud scheme.  None of the victims agreed to pay Gonzales any commissions or fees, or agreed that he could use their investments for personal or business expenses or to pay other investors. 

In order to continue the scheme and to keep victims from discovering the crime, Gonzales lied to the victims repeatedly and told them their investments were doing well.  As a result of the lies, some victims gave Gonzales more money to invest.  Gonzales also made payments to some of the victims using monies he received from other victims. 

Gonzales received approximately $1 million total from over 30 victims in 2007 and 2008.  Gonzales did not invest the victims’ funds as promised and diverted approximately $410,000 for his own personal purposes.

            Gonzales is free on a personal recognizance bond pending sentencing. 

            The case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorneys Kathryn C. Newman and Kimberly M. Frayn.

Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. 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. – A former softball coach at Silverado High School in Henderson, Nev., has been sentenced to 284 months in federal prison and lifetime supervised release for his convictions for having sexual relations with one of the female players and using his cellular telephone camera to photograph the sexual acts, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
           
            Albert Silva Hernandez, Jr., 44, of Las Vegas, was sentenced on Monday, Aug. 5, 2013, by U.S. District Judge James C. Mahan.  Hernandez was convicted by a jury in April of eight counts of sexual exploitation of a minor.

            “Together with our investigative partners, we have been aggressively investigating and prosecuting persons who exploit minors for sexual purposes and use technology to further victimize these children,” said U.S. Attorney Bogden.  “If you commit such crimes, you face very serious consequences and a lengthy prison sentence.”

            According to the indictment and evidence introduced at trial, Hernandez, a softball coach for Silverado High School and for a competitive club team, had sexual relations with one of his 17-year-old players, and photographed the sexual acts with his cellular telephone camera and sent the images to the girl.  Hernandez also had the girl photograph herself naked and send those images to him by her cellular telephone. The pornographic images were produced and the text messages were exchanged between Hernandez and the victim, on Dec. 25, 2011, Jan. 29, Feb. 1, and Feb. 2, 2012.

“As this sentence makes unmistakably clear, child sex predators will receive the justice they are due for their despicable actions,” said Michael Harris, Assistant Special Agent in Charge of Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in Las Vegas. “We will continue to aggressively target those who prey upon and sexually exploit our children. We owe it to the young victims in these cases, who will carry the emotional and physical scars of these crimes for the rest of their lives.”

The case was investigated by ICE-HSI and the Clark County School District Police.  It was prosecuted by Assistant United States Attorneys Susan Cushman and Roger Yang. 

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. – A Carson City, Nev. man has been arrested on child pornography charges for secretly videotaping female victims in the bathrooms of his residence, and is scheduled to appear before a federal magistrate judge this afternoon, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
           
            Marcus Gabriel Henderson, 33, was arrested by Special Agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) yesterday, July 31, 2013, at his residence in Carson City.  Henderson is charged in a criminal complaint with production and attempted production of child pornography, and will have an initial court hearing at 3:00 p.m. today before U.S. Magistrate Judge Robert A. McQuaid, Jr.  If convicted, Henderson faces 15 to 30 years in prison, and a $250,000 fine.

            According to the criminal complaint, ICE-HSI agents executed a federal search warrant at Henderson’s residence on Wednesday, July 31, 2013, in connection to an ongoing child pornography investigation.   Inside a bathroom allegedly used by Henderson, the agents found a covert video recording device and digital media card hidden within an AC adaptor box.  Examination of the media card revealed that it contained approximately 277 video clips that appeared to have been taken in the toilet and shower areas of one or more bathrooms.  The camera had been positioned to capture nude images of two different female victims, one of whom was 13 years old at the time. The complaint alleges that the purpose of the videos was to create a sexual response for the viewer of the videos.  

The case is being investigated by ICE-HSI and the Northern Nevada Internet Crimes Against Children Task Force, and is being prosecuted by Assistant United States Attorney Carla B. Higginbotham. 

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."

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

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           LAS VEGAS – A Las Vegas jewelry store owner pleaded guilty today to receiving and selling stolen goods totaling about $196,500, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

            Nabil Sakkab, 39, of Las Vegas, pleaded guilty before U.S. District Judge James C. Mahan to two counts of receipt and sale of stolen goods, and is scheduled to be sentenced on Oct. 28, 2013, at 10:30 a.m. Sakkab faces up to 10 years in prison and a $250,000 fine on each count.  

“According to a December 2012 report prepared for Congress, organized retail crime exposes the United States to economic, public health, and domestic security dangers,” said U.S. Attorney Bogden.  “Estimates of the losses to retailers range from $15 billion to $37 billion annually.  Additionally, consumers end up paying for the losses in the form of higher prices on goods, and states lose the tax revenue that would otherwise be generated from the sale of these goods by legitimate retailers.”

According to the plea agreement, from about Sept. 20, 2011, to Feb. 3, 2012, Sakkab knowingly purchased stolen jewelry from an individual at a Las Vegas jewelry store Sakkab previously co-owned.  The goods included Rolex and Tag Heuer watches stolen in other states and transported to Las Vegas prior to Sakkab’s purchase.  Sakkab resold the stolen jewelry at the store and privately to third parties for personal gain. The parties agreed that the loss to the victims of the thefts is $196,500. 

            The case was investigated by the FBI and the Las Vegas Metropolitan Police Department Special Investigations Section, and was part of a federal and local law enforcement effort to combat organized retail theft.  The case is being prosecuted by Assistant United States Attorney Christina M. Brown.

           LAS VEGAS, Nev. – A California man who orchestrated a double escrow mortgage fraud scheme involving eight houses in the Las Vegas, Nev. area, has been sentenced to 5½ years in federal prison, three years of supervised release, and ordered to pay over $3.5 million in restitution, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

            George Anderson, 55, of Copperopolis, Calif., was sentenced on Thursday, July 25, 2013, by Senior U.S. District Judge Roger L. Hunt.  Anderson was indicted in March 2011 and pleaded guilty in April 2013 to one count of conspiracy to commit wire fraud. 

“During the mid- to late 2000’s, thousands of fraudulent residential mortgage transactions in Nevada caused financial hardships for many innocent homeowners and hundreds of millions of dollars of loss to financial institutions and investors,” said U.S. Attorney Bogden.  “We made this type of fraud a priority and through the end of 2012, had prosecuted 213 persons, most of who were convicted and sent to prison.”

            According to the plea agreement, in about 2005, Anderson solicited four straw buyers to buy seven houses in Henderson, Nev. and one house in Las Vegas, with the understanding that Anderson would control the houses and later re-sell them at a profit.  Anderson solicited a co-defendant, Andrew Swan, 38, of Heyworth, Ill., to buy the houses from the straw buyers at inflated prices in exchange for Swan receiving a portion of the profit from each sale.  Swan then recruited a relative to purchase several of the homes again at further inflated prices.  False information was submitted to the lenders and to the escrow company in order to receive the loans and to cause disbursement of the loan proceeds to Swan’s company, Creative Capital Group, and Anderson’s company, Anderson Financial Group.  Approximately $54,000 to $86,000 from the sale of each home was dispersed to Creative Capital Group; approximately $67,000 to $164,000 from the sale of each home was dispersed to Anderson Financial Group; and approximately $19,000 to $69,000 was dispersed to each original straw buyer.  The majority of the mortgage payments for the homes were not paid and the homes went into foreclosure.  At least 16 mortgage loans totaling approximately $6.5 million were obtained as part of the conspiracy to defraud, and the financial institutions suffered a loss of approximately $3.5 million.             

            The co-defendant Swan also pleaded guilty, and was sentenced in June to 30 months in prison and ordered to pay $3.5 million in restitution.

            Anderson and Swan are currently released on bond and must self-report to federal prison by Oct. 25, 2013, and Aug. 16, 2013, respectively. 

The case was investigated by the FBI and prosecuted by Assistant U.S. Attorneys Sarah E. Griswold and Brian Pugh.

Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. 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. – A Las Vegas man has pleaded guilty to maliciously attempting to destroy a local children’s autism learning facility by fire and explosive devices, announced Daniel G. Bogden, United States Attorney for the District of Nevada. 

            Samuel Powers, 24, pleaded guilty on Tuesday, July 23, 2013, before U.S. District Judge Gloria M. Navarro to one count of arson of property and one count of possession of unregistered firearms, specifically Molotov cocktails.  Sentencing is scheduled for Nov. 1, 2013, at 10:30 a.m.  Powers, who is in federal custody on the charges, faces five to 20 years in prison on the arson charge and not more than 10 years in prison on the firearms charge, as well as a fine of up to $250,000 on each count. The government and the defendant agreed to a binding recommendation of a sentence of 10 years in prison. 

            According to the plea agreement, on April 15, 2013, Powers knowingly and maliciously damaged a building which housed several commercial businesses, including Sport Social, an autism facility, located at 7055 Windy Street in Las Vegas.  Powers forcibly entered Sport Social with three Molotov cocktails and a gasoline container, and poured gasoline and set multiple fires inside the business.  The fires caused at least $50,000 in damage to the structure and its contents.  Powers also possessed two more unignited Molotov cocktails inside his vehicle at the scene of the fire.  When Powers set the fires, he knew or had cause to believe that persons were inside a neighboring business, thereby creating a substantial risk of death or serious bodily injury to those persons.         

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Clark County Fire Department, and the Las Vegas Metropolitan Police Department, and was prosecuted by Assistant U.S. Attorney Christina M. Brown.

           RENO, Nev. – Two women were sentenced today for their guilty pleas to federal health care fraud charges after they defrauded the Nevada Medicaid program of approximately $1 million, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

            Cassandra Little, 49, of Reno, was sentenced to 33 months in prison, three years of supervised release, and ordered to pay $81,400 in restitution. Little pleaded guilty in March to 28 counts of health care fraud and 10 counts of money laundering.

Susan Hill, 66, of Las Vegas, was sentenced to 18 months in prison, three years of supervised release, and ordered to pay $81,400 in restitution.  Hill pleaded guilty in March to one count of health care fraud and one count of money laundering.

Senior U.S. District Judge Howard D. McKibben in Reno sentenced both women, and allowed them to self-report to federal prison by Oct. 15, 2013.

            “As this case demonstrates, health care fraud is a serious criminal offense with serious consequences that can land you in federal prison,” said U.S. Attorney Bogden. “The U.S. Department of Justice is committed to investigating and prosecuting persons who commit this type of crime.”

“Our attorneys and investigators work closely with our partners to find Medicaid violators and prosecute them to the fullest extent of the law for cheating the system,” said Nevada Attorney General Catherine Cortez Masto. “We hope today's prison sentence and combined restitution of approximately $81,000 sends a strong message to others who may consider stealing from taxpayers. We will not tolerate those that take advantage of the system."

            According to the court records, from about January 2007 to January 2011, Hill and Little defrauded the Nevada Medicaid program of approximately $1 million by fraudulently billing for expensive therapy-related services such as psychosocial rehabilitation and basic skills training which were never provided.  To execute their scheme, Hill and Little formed a company, the Hill/Little LLC, and entered into a contract with Nevada Medicaid to provide health care services to children who were eligible for Medicaid.  Hill was the president of the LLC.  Little, a PhD and licensed social worker, was to provide the clinical services to the children.  Hill and Little then created a program to obtain aid for the parents of the children who were eligible to receive the Medicaid funding; however, the program was not authorized or allowed under their Medicaid contract with the state. Hill recruited parents and guardians to provide services to their own children following minimal training provided by Hill/Little LLC.  The services were nothing more than what parents normally do without reimbursement.  Hill/Little LLC then billed Medicaid approximately $8,000 per month for each child, using a billing code which was only authorized for services that could have been provided by Little, the licensed social worker.  Hill/Little kept $5,000 per month for each child and paid each parent/guardian approximately $3,000.  The parents/guardians reported that their children received little or no services from Hill or Little, and none of the services billed by Hill/Little from January 2007 to January 2011 were ever properly provided or authorized under Medicaid rules.  Using this scheme, Hill and Little unlawfully received approximately $1 million from Medicaid for services they did not provide.

The case was investigated by the State of Nevada Medicaid Fraud Control Unit, the State of Nevada Attorney General’s Office, and IRS Criminal Investigation, and is being prosecuted by Assistant U.S. Attorney Ronald C. Rachow and Senior Deputy Attorney General Andrew Schulke, designated as a Special Assistant U.S. Attorney, with assistance from the Nevada Attorney General’s Office. 

This case was handled 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. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov. 

If you suspect that Medicaid Fraud may be occurring, complete and submit this form http://ag.nv.gov/uploadedFiles/agnvgov/Content/Complaints/Medicaid_Complaint_Form_Print_Handwrite.pdf,

and mail it to the Office of the Attorney General, Medicaid Fraud Control Unit (MFCU), 100 North Carson Street, Carson City, NV 89701. You can also call the Nevada MFCU at 775-684-1191, 702- 486-3187 or the toll free number at 1-800-266-8688.

           LAS VEGAS, Nev. – A local man who used friends and family members to serve as straw buyers to fraudulently purchase homes in the Las Vegas area so he could skim part of the loan proceeds for himself, has been sentenced to 51 months in prison, five years of supervised release, and ordered to pay approximately $1.3 million in restitution announced Daniel G. Bogden, United States Attorney for the District of Nevada.

            Oudom Somee, 46, currently in custody, but most recently a resident of Las Vegas, Nev., was sentenced on Monday, July 22, 2013, by U.S. District Judge Miranda M. Du.  Somee was convicted by a jury in November 2012 of one count of conspiracy to commit mail fraud, wire fraud, and bank fraud, and eight counts of wire fraud, one count of bank fraud, and one count of mail fraud. 

            Somee and his co-conspirators recruited persons with high credit scores, often friends and family members, to purchase homes in the Las Vegas area, which Somee would control. Somee told these straw purchasers that he would use their names and credit to buy the houses and that they would not have to pay the mortgages.  Somee and the co-conspirators prepared the paperwork and submitted the loan applications to the financial institutions.  These applications and the supporting documentation contained materially false and fraudulent information concerning the applicant’s identity, income, assets and intent to occupy the homes to ensure that the straw buyers would qualify for the mortgage loans. Somee orchestrated the transactions for the purpose of receiving cash at the closing of the transactions.  The cash was disbursed either to Somee personally or to his company, Vegas Golden Investments, Inc.  Somee tried to conceal his role in the scheme by using bank accounts belonging to fictitious entities and others, including his sister.  Eight homes were purchased in Henderson and Las Vegas, Nev. using this scheme.  The homes generally went into foreclosure after Somee made a few mortgage payments.  The losses to the financial institutions were over $2.6 million. 

            A loan officer and escrow officer were also charged and convicted in the scheme. 

The case was investigated by the FBI and prosecuted by Assistant U.S. Attorneys Daniel R. Schiess and Sarah E. Griswold.

Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. 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. – A Las Vegas-area homebuilder has been sentenced to 14 years in prison, five years of supervised release, and ordered to pay $4.4 million in restitution for selling houses at inflated prices in order to fraudulently obtain mortgage loans, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

            Paul Wagner, 59, was sentenced on Monday, July 22, 2013, by U.S. District Judge Miranda M. Du.  Wagner was convicted by a jury in October 2012 of one count of conspiracy to commit bank fraud and wire fraud, six counts of bank fraud, and three count of wire fraud. 

            “Since the inception of our mortgage fraud program in the spring of 2008, over 200 persons have been charged with federal mortgage fraud crimes in Nevada,” said U.S. Attorney Bogden. “Most of those individuals were convicted and are in prison.  Wagner is the first home builder to be charged and convicted.”

            Wagner was a home builder in Las Vegas for 20 years, building tract homes in the northwest part of the Las Vegas valley.  From about 2007 to 2009, Wagner created a scheme to provide large cash incentives to buyers, real estate agents and others to sell his homes. The incentives included Wagner paying buyers’ mortgage payments, making large cash payments to real estate agents and others to find buyers, and paying buyers’ down payments.  To pay the incentives, Wagner inflated the value of the homes by causing appraisers to create false appraisals.  Wagner concealed the incentives from the lenders, who would not have made the loans had they known about his methods. Using this fraudulent scheme, Wagner sold about 85 houses from March 2007 to mid-2009.  Most of the homes went into foreclosure after Wagner stopped making the mortgage payments.   The losses to the financial institutions were more than $18 million.  

The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Daniel R. Schiess.

Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. 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 – A man pleaded guilty today to federal charges that he stole over $300,000 in expensive jewelry from persons at golf courses in multiple states, including Nevada, and sold it at trade shows, jewelry stores and pawn shops, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

            Jeffrey Cochran, 47, of Las Vegas, pleaded guilty before U.S. District Judge Gloria M. Navarro to two counts of possession and sale of stolen goods, and is scheduled to be sentenced on Oct. 18, 2013, at 9:00 a.m. Cochran faces up to 10 years in prison and a $250,000 fine on each count.  

According to the plea agreement, from about Sept. 15, 2010, to March 10, 2012, Cochran stole jewelry, including Tag Heuer and Rolex watches, from individuals at golf courses in other states and transported the goods to Las Vegas for sale at jewelry and pawn stores. Cochran also stole jewelry from individuals at golf courses in Las Vegas and transported the stolen jewelry to other states to sell at trade shows and jewelry and pawn stores.  The plea agreement states that the government and defendant agree that the readily provable loss associated with Cochran’s theft is $300,895.

            The case was investigated by the FBI and the Las Vegas Metropolitan Police Department Special Investigations Section, and was part of a federal and local law enforcement effort to combat organized retail theft.  The case is being prosecuted by Assistant United States Attorney Christina M. Brown.  

            LAS VEGAS, Nev. - A man who stole a handgun from his brother and used it to rob a local jewelry store, has been sentenced to 140 months in prison, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

            John James Ericson, 33, of Las Vegas, was sentenced on Tuesday, July 2, 2013, by U.S. District Judge Andrew P. Gordon.  Ericson pleaded guilty on March 25, 2013, to one count of interference with commerce by robbery.

             On Oct. 10, 2012, at approximately 1:20 pm, Ericson went into a local jewelry store, approached the male owner, and stated he was looking for engagement rings.  When the jewelry store owner opened the jewelry case to show Ericson some rings, Ericson produced a semi-automatic handgun and threatened him. Ericson then stole approximately $35,000 in jewelry from the open case and fled on foot.  Because of statements Ericson had made during the robbery, law enforcement officials were able to identify Ericson, and he was arrested later the same day of the robbery.  Law enforcement officials also determined that the handgun Ericson used during the robbery had been reported stolen by Ericson’s brother, who is an officer with the Las Vegas Metropolitan Police Department.

            Ericson’s sentence was increased because he had several prior felony convictions in Florida for drug trafficking and possession.

The case was investigated by the FBI and Las Vegas Metropolitan Police Department, as part of the FBI’s Safe Streets Task Force, and prosecuted by Assistant U.S. Attorney Cristina D. Silva.

The case was brought under DOJ’s Project Safe Neighborhoods (PSN) initiative, a nationwide commitment to reduce gun and gang crime in America.

            LAS VEGAS, Nev. – A Henderson man convicted by a federal jury in February of multiple child pornography offenses, was sentenced today to 15 years in federal prison and lifetime supervised release, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
           
            Richard Carl Brown, 35, was sentenced by U.S. District Judge Robert C. Jones.  Brown was convicted on Feb. 15, 2013, of one count of advertising child pornography, one count of transporting child pornography, one count of receipt of child pornography, and one count of possession of child pornography.  The federal penalty for the advertising count mandated a sentence of at least 15 years in prison. 

“Thousands of children, including large numbers of runaway and homeless youth, are exploited in the production and distribution of pornographic materials,” said U.S. Attorney Bogden.  “These children are re-victimized for the rest of their lives, as these materials are repeatedly circulated electronically.  We will continue to aggressively pursue these defendants who attempt to exploit our children.”

According to the court records and evidence introduced at trial, in September 2011, a Henderson Police Department (HPD) detective initiated an undercover investigation into the possession and online distribution of child pornography.  The detective identified an internet protocol address which had numerous files containing child pornography available for sharing on an online network known as Gnutella.  Further investigation determined that Brown was the account holder of the internet address. 

In October 2011, HPD detectives executed a search warrant at Brown’s house and seized computer equipment.  A forensic analysis of the equipment revealed that it contained at least 24,950 images of child pornography, including videos and still images.

The defendant had worked in the computer services industry in the Las Vegas area from 2005 to 2011, and has no prior known felony convictions.

The case was investigated by the Henderson Police Department (HPD) in conjunction with the Southern Nevada Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorneys Amber M. Craig and Roger Yang. 

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

            LAS VEGAS –The leader of a group of Californians who were stealing information from bank card readers and ATM’s in order to make counterfeit cards, has been sentenced to 81 months in prison and ordered to pay almost $30,000 in restitution for his guilty pleas to conspiracy and aggravated identity theft charges, announced Daniel G. Bogden, United States Attorney for the District of Nevada. 

            Jacob Villanueva, Jr., 35, of Fontana, Calif., was sentenced on Thursday, June 13, 2013, by U.S. District Judge Andrew P. Gordon.  Villanueva, Jr. was charged in March 2012 with conspiracy and aggravated identity theft, and he pleaded guilty in September 2012.  Ten other defendants in the case also pleaded guilty.  Eight have been sentenced to prison and two are awaiting sentencing.  One defendant is awaiting trial.

            According to the court records, beginning in about November 2009 and continuing through Nov. 4, 2011, the defendants installed skimming devices in the internal electronics of the exterior door readers at a number of JP Morgan Chase bank branches in Las Vegas in order to capture a customers’ account data when they slid their cards through the readers.  The defendants also installed pinhole cameras on the ATM pin pads in order to capture customers’ ATM personal identification numbers (PINs).  The defendants then used the stolen information to manufacture counterfeit credit cards, which they used for their own personal gain.  The scheme was originally located in California, and the defendants relocated it to Nevada to evade law enforcement. 

Villanueva, Jr. has a number of other prior convictions for controlled substances, receipt of stolen property, and domestic violence crimes, in both Nevada and California.

            This case was investigated by the United States Secret Service and Las Vegas Metropolitan Police Department, and prosecuted by Assistant U.S. Attorney Kimberly M. Frayn.

            This case was handled 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. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.

            LAS VEGAS – A former assistant property manager for the General Services Administration (GSA) in Las Vegas who oversaw the federal courthouse, pleaded guilty today to making false statements to federal agents and witness tampering, announced André Birotte, Jr., United States Attorney for the Central District of California.

            Steven M. Underhill, 58, of Las Vegas, Nev., entered his guilty pleas before U.S. District Judge Andrew P. Gordon, and is scheduled to be sentenced on Sept. 12, 2013, at 9:00 a.m.  

            According to the plea agreement, in about 2010, GSA’s Office of the Inspector General (GSA-OIG) initiated an investigation into alleged improprieties involving the janitorial contract for the Lloyd George Federal Courthouse in Las Vegas. The allegations included claims that Underhill, who was GSA’s Assistant Property Manager at the courthouse, had an undisclosed and improper relationship with one of the janitorial company’s employees.  The allegations included claims that as a result of the janitorial employee’s decision to end her relationship with Underhill, Underhill began giving the company unsatisfactory ratings, which impacted its bid to renew the contract.  In April and May 2011, when investigators interviewed Underhill about the allegations, Underhill lied to them by denying that he had a relationship with the employee and that he was living with her, when he had in fact been in a relationship with her for a number of years, and had lived with her and her mother. After Underhill’s interviews with the law enforcement investigators, Underhill told the employee to deny everything about their relationship because he would be fired.  Underhill continued to contact the employee over the next 14 months by telephone and text, and threatened her with retaliation and public embarrassment if she cooperated with authorities.  

Underhill faces up to five years in prison on the false statements charge and up to 20 years in prison on the witness tampering charge, as well as fines of up to $250,000 on each charge.  He is free on a personal recognizance bond while awaiting sentencing.

            This case was investigated by the Office of the Inspector General for GSA, the Las Vegas Metropolitan Police Department, and prosecuted by Assistant U.S. Attorneys Kathryn C. Newman of the District of Nevada and Lawrence S. Middleton of the Central District of California.

            LAS VEGAS, Nev. – A husband and wife who worked in the real estate profession in southern Nevada, have been charged in U.S. District Court in Las Vegas with conspiracy and fraud for making false statements to Wells Fargo Bank in order to get it to approve a short sale on their home, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

Cynthia Hosbrook, 41, currently a licensed real estate agent in Nevada, and Robert Hosbrook, 51, formerly a licensed real estate agent in Nevada, both of Henderson, are charged in a criminal indictment dated June 12, 2013, with one count of conspiracy to commit bank fraud and one count of bank fraud.

According to the indictment, the Hosbrooks allegedly solicited a relative to act as a straw buyer for their residence at 2704 Mallard Landing in Henderson.  In a short sale contract dated March 2, 2010, and in other paperwork submitted to Wells Fargo Bank, the Hosbrooks falsely represented that the sale of their home would be an arms length transaction, that it was between two unrelated parties, that no party to the contract was a family member or business associate, that there were no agreements that the seller would remain in the property as a renter, and that the short sale did not constitute straw buying, when they allegedly knew that they were selling the residence to a relative and a straw buyer.  The Hosbrooks also allegedly caused the relative/straw buyer to falsely sign a title company form on July 9, 2010, stating that the relative would be residing at the property, which the Hosbrooks knew was a false and fraudulent representation.  

Cynthia Hosbrook and Robert Hosbrook have been summoned to appear for an initial hearing and arraignment on June 21, 2013, at 3:00 p.m. before U.S. Magistrate Judge Carl W. Hoffman.  If convicted, they face up to 30 years in prison and fines of up to $1 million on each count.

The case is being investigated by the Federal Housing Finance Agency Office of the Inspector General, and is being prosecuted by Assistant U.S. Attorney J. Gregory Damm.

Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. 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. – A North Las Vegas man was sentenced today to four years in prison, three years of supervised release, and ordered to pay restitution of $64,921 to the IRS, for his guilty pleas to filing multiple false tax returns in the names of others, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

            “Knowingly using another person’s identity without authority to steal tax refunds constitutes aggravated identity theft under federal law, and carries a mandatory two-year consecutive sentence to any other charge,” said U.S. Attorney Bogden.  “Identity theft is a serious and growing problem that we and our law enforcement partners will continue to address to ensure identity thieves are prosecuted to the fullest extent of the law.”

Joseph Glendon Austin, 35, was sentenced by U.S. District Judge Larry R. Hicks.  Austin pleaded guilty on Thursday, Feb. 21, 2013, to one count of presenting a false claim to the United States and one count of aggravated identity theft. 

“This case is part of a national sweep to target those who steal taxpayers’ identities for the purpose of obtaining fraudulent tax refunds,” said Paul Camacho, Special Agent in Charge of IRS Criminal Investigation in Nevada.  “Eradicating these crimes is a top priority at IRS.  Nationally, IRS has tripled the number of tax related identity theft cases.”

According to the guilty plea agreement, sometime before March 31, 2009, in Nevada, Austin obtained access to the personal identifying information of clients of an unnamed tax preparer.  On March 31, 2009, Austin unlawfully filed a tax return using the personal identifiers of a client of the tax preparer, but containing falsified income, withholding, and other information.  The fraudulent return requested a refund of $4,147, which Austin admitted that he received.  Austin then filed multiple more false tax returns using the identifiers of other clients of the tax preparer, and claimed refunds in the form of refund anticipation loans placed on debit cards. Austin admitted that no one gave him permission to use their identifying information.  

The case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Roger Yang.

            LAS VEGAS, Nev. – The former president of the Las Vegas chapter of the Hells Angels motorcycle club has been sentenced to 46 months in prison and five years of supervised release, for his guilty plea to conspiracy to possess 10 kilograms of cocaine with the intent to distribute, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
 
   Paul Seifert, 46, of Las Vegas, was sentenced on May 30, 2013, by U.S. District Judge Gloria M. Navarro.  Seifert was permitted to self-report to federal prison by Aug. 28, 2013.

Seifert and two others, Keith Hare, 43, and Miguel Macias, 33, were originally charged in November 2011.  On May 2, 2008, Macias and Seifert, then members of the Hells Angels, met with an undercover agent from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and agreed to provide security for the undercover agent during a cocaine purchase.  Macias and Seifert indicated they had experience providing security for similar transactions, and Seifert indicated he was president of the local Hells Angels chapter.  On May 8, 2008, Seifert, Hare, and Macias met the undercover ATF agent at a hotel room in Las Vegas.  Other ATF agents and law enforcement officers arrived at the hotel room and posed as sellers for 10 kilograms of cocaine.  The undercover ATF agent purchased the cocaine, and the defendants were paid $3,000 for their “work.”
  
Hare also pleaded guilty to conspiracy to possess cocaine with the intent to distribute and is scheduled for sentencing on Aug. 14, 2013. Macias pleaded guilty to conspiracy to possess cocaine with the intent to distribute and conspiracy to possess methamphetamine with the intent to distribute and was sentenced on Sept. 12, 2012 to 70 months in prison.

            The case was investigated by ATF and the Las Vegas Metropolitan Police Department, and prosecuted by Assistant United States Attorney Andrew Duncan.

           LAS VEGAS, Nev. – A woman who defrauded the Medicare program of $11.1 million in a fraudulent medical equipment billing scheme, was sentenced today to 51 months in prison, three years of supervised release, and criminal forfeiture of $11.1 million in assets, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

            Alegria Phankonsy, 43, formerly of Orange County, Calif., but currently in custody, was sentenced by U.S. District Judge Kent J. Dawson.  Phankonsy pleaded guilty in November 2012 to one count of health care fraud and one count of tax evasion.

            According to the indictment and the facts supporting the guilty plea, between about March 2005 and February 2010, Phankonsy operated several medical equipment supply companies in Las Vegas, Proforma Medical Source, Divine Health and Freemotion Plus Medical Supply.  Phankonsy operated the first two companies using the alias’ Marie Villanueva and Marie Phan, respectively, and operated Freemotion using the name Phankonsy. Between about March 2005 and March 2010, Phankonsy fraudulently billed Medicare for medical equipment, such as leg prostheses and power wheelchairs that had not been ordered by a physician, were not needed by clients or were not provided to clients at all.  To identify clients, Phankonsy paid “marketers” in southern California to obtain patients for her various companies.  The marketers provided these clients with money in exchange for their Medicare information, which was used to bill Medicare for the unnecessary items or items not provided.  The scheme resulted in Phankonsy receiving $11.1 million to which she was not entitled. 

            For the tax years 2006, 2007, and 2008, Phankonsy prepared and submitted false individual income tax returns by underreporting the income she earned from the Medicare fraud scheme.  During those three years, Phankonsy underreported approximately $7.8 million in gross receipts, resulting in a total tax loss of approximately $2.4 million.  Phankonsy also appended fraudulent W-2 forms to her returns and falsely represented that she had made significant estimated tax payments, when she had not.

            The case was investigated by the Office of the Inspector General for Health and Human Services and IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Crane M. Pomerantz.

Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. 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. – A man who made false statements to a federally insured credit union to obtain a $7.5 million commercial real estate loan, was sentenced today by Senior U.S. District Judge Roger L. Hunt to 98 months in prison, five years of supervised release and ordered to pay restitution to the credit union, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

Brent Edward Lovett, 50, of Henderson, Nev., was convicted by a jury in February 2013 of bank fraud.   Lovett was permitted to self-report to federal prison by Aug. 2, 2013.

            According to the indictment and evidence presented to the jury during the trial, during 2006, Lovett devised a scheme to defraud Lockheed Federal Credit Union by fraudulently obtaining a commercial real estate loan from which he would skim part of the loan proceeds for himself.  Lovett controlled Bay Resorts International, which leased two commercial buildings at 2400 N. Tenaya Way in Las Vegas.  From about May to June 2006, Lovett caused Bay Resorts to purchase the buildings for $6 million.  Lovett caused Bay Resorts to sell the buildings for $10 million to another company he controlled, Equity Resource, Inc. Lovett caused Equity Resource to apply for a commercial real estate loan with Lockheed Federal Credit Union to purchase the buildings, and in the application and supporting documents, Lovett made false statements and omissions regarding Bay Resorts, Equity Resource, and the sales history of the buildings.  Based on those false statements, Lockheed Federal Credit Union made a loan to Equity Resource for $7.5 million.  Lovett obtained approximately $1.3 million from the proceeds of the sale of the buildings to Equity Resource. Lovett then allowed the buildings to go into foreclosure and kept the balance of the proceeds for himself. 

The case was investigated by the FBI and prosecuted by Assistant U.S. Attorneys Sarah E. Griswold and Brian Pugh.

This case was handled 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. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.

            WASHINGTON – Following a two-week jury trial, F. Harvey Whittemore, a prominent lawyer and former lobbyist in Nevada, was convicted today of making unlawful campaign contributions to a Senate campaign committee in 2007 and causing a false statement to be made to the Federal Election Commission (FEC), announced Daniel G. Bogden, U.S. Attorney for the District of Nevada and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.

“Persons who knowingly violate campaign contribution laws will be investigated and prosecuted to the full extent of the law,” said U.S. Attorney Bogden.  “Campaign laws exist to level the playing field.  The public deserves to know that these laws are not just ‘on the books,’ and that persons with power and money who abuse the system for their own benefit will be prosecuted.”

            “Today, a jury convicted Mr. Whittemore of using dozens of straw donors to evade contribution limits so he could make good on a campaign fundraising promise,” said Acting Assistant Attorney General Raman. “The cornerstones of our campaign finance laws are contribution limits and transparency, and Mr. Whittemore’s crime was designed to undermine both.  Today’s verdict demonstrates our resolve to aggressively pursue those who use illegal tricks to corrupt our democratic process.”     

            Whittemore, 59, of Reno, was convicted of one count of making excessive campaign contributions, one count of making contributions in the name of others, and one count of causing a materially false statement to be made to the FEC, all felony offenses.   

According to the indictment and evidence presented at trial, during 2007, Whittemore was the chief executive of Wingfield Nevada Group and was a registered lobbyist in Nevada. 

On Feb. 21, 2007, Whittemore met with a U.S. Senator at a hotel in Las Vegas and agreed to raise $150,000 in contributions for the Senator’s campaign committee by March 31, 2007, which marked the end of an FEC-mandated quarterly reporting period. 

Federal laws prohibit persons from hiding their true identity when contributing to federal political campaigns, and also set limits on the amount that an individual can contribute to a campaign.  In 2007, the maximum individual contribution was $2,300 for a primary election and $2,300 for a general election; thus, the maximum for one candidate was $4,600.  

Aware of the strict limits on individual federal campaign contributions, Whittemore devised a scheme to unlawfully use about 29 family members, employees and their spouses as conduits to funnel more than $130,000 of his own money to the campaign.  This scheme allowed Whittemore to make an individual campaign donation to the campaign committee in excess of the limits established by federal law.  Whittemore concealed the scheme from the FEC, the Senator, and the Senator’s campaign committee.

In March 2007, Whittemore solicited family members, his employees and their spouses to make the maximum campaign donations to the Senator’s campaign and Whittemore reimbursed or advanced the money to the contributors with personal checks and wire transfers.  Whittemore also paid the contributors additional money on top of the reimbursements.  If a conduit contributed $4,600, Whittemore reimbursed them $5,000; likewise if a couple contributed $9,200, he paid the couple $10,000. 

On or about March 28, 2007, Whittemore caused one of his employees to transmit $138,000 in contributions to the Senator’s campaign committee, the vast majority of which were conduit contributions that Whittemore had personally funded in order to satisfy his pledge to the Senator.  On April 15, 2007, the Senator’s campaign then unknowingly filed a false report with the FEC stating that the conduits had made the contributions, when in fact, Whittemore had made them.

Whittemore is free on a personal recognizance bond pending sentencing, which is scheduled for Sept. 23, 2013, at 11:00 a.m. Whittemore faces up to five years in prison and a $250,000 fine on each count.

The case was investigated by the FBI, and is being prosecuted by First Assistant U.S. Attorney Steven W. Myhre of the District of Nevada and Trial Attorney Eric G. Olshan of the Public Integrity Section in the Justice Department’s Criminal Division.

            RENO, Nev. – A man with a prior federal child pornography conviction in California has been sentenced to 22½ years in prison and lifetime supervised release for his guilty plea to soliciting children over the Internet for sex, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
           
            Vincent Charles Fasone, 44, of Fernley, Nev., was sentenced on Wed., May 22, 2013, by Senior U.S. District Judge Howard D. McKibben.  Fasone pleaded guilty on Jan. 31, 2013, to one count of attempted coercion and enticement of a minor and one count of commission of a felony sex offense by an individual required to register as a sex offender.  Under federal law, each count carries a minimum mandatory 10 years in prison, and the repeat sex offender count must be served consecutively.          

“From about 2007 through 2012, more than 12,000 persons have been convicted in federal courts nationally of an offense related to the sexual exploitation of a minor,” said U.S. Attorney Bogden.  “In the District of Nevada during 2012, 60 persons were charged federally with such crimes and 74 new investigations were opened. Almost all of the persons charged were convicted and sentenced to more than five years in prison. We will continue to aggressively pursue these defendants who attempt to exploit our children.”

            On Sept. 11, 2012, a detective with the Washoe County Sheriff’s Office, who was working on the Internet Crimes Against Children Task Force, began an undercover investigation on an Internet chat site looking for targets who were seeking to solicit or entice minor children for sex.  Fasone, often using the screen name, “Guysmiley,” was observed in various chat rooms.  Over the next couple of days, the undercover detective posing as an interested father of a young girl, had multiple online conversations with Fasone, who expressed his desire to have sex with young girls.  Arrangements were made to meet Fasone at an apartment complex in Sparks, Nev. on Sept. 20, 2012.  Fasone thought he was meeting the father and the father’s seven-year-old daughter and 12-year old female babysitter for sex.   Fasone was arrested as he went to the apartment. 

            Fasone was convicted in 1998 in the Southern District of California of receipt of child pornography and sentenced to four years in prison.      

The case was investigated by the Northern Nevada Internet Crimes Against Children Task Force, which includes the FBI, U.S. Immigration and Customs Enforcement HSI, the Nevada Attorney General’s Office, and the Washoe County Sheriff’s Office.  The case was prosecuted by Assistant United States Attorney Carla B. Higginbotham. 

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

safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

            LAS VEGAS, Nev. – Federal felony charges have been filed against a Las Vegas man for attempting to destroy a local children’s autism learning facility by fire and explosive devices, announced Daniel G. Bogden, United States Attorney for the District of Nevada. 

            Samuel Powers, 24, is charged in an indictment dated May 22, 2013, with one count of arson and one count of possession of unregistered firearms (Molotov cocktails).  Powers was arrested by federal authorities yesterday, and today made his initial appearance before Magistrate Judge Carl W. Hoffman who accepted the defendant’s plea of not guilty to both counts of the indictment.  Powers was ordered detained as a flight risk and danger to the community pending his trial, set for July 23, 2013, before U.S. District Judge Gloria M. Navarro.

            The indictment alleges that on April 15, 2013, Powers damaged and attempted to destroy by means of fire and explosive materials an autism facility located at 7055 Windy Street in Las Vegas, and possessed unregistered Molotov cocktails.

            If convicted, Powers faces five to 20 years on the arson charge and up to 10 years on the unregistered firearms charge, as well as fines of up to $250,000 on each charge.

This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Las Vegas Metropolitan Police Department, and the Clark County Fire Department, and prosecuted by Assistant U.S. Attorney Christina M. Brown.

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

            LAS VEGAS, Nev. – Las Vegas bankruptcy attorney Randolph H. Goldberg was sentenced this morning to two years in prison, a $40,000 fine, and three years of supervised release, for his guilty plea to willful tax evasion, announced Daniel G. Bogden, United States Attorney for the District of Nevada. Goldberg also paid $720,719 in restitution at sentencing and must surrender his law license for two years.

            “As this sentence indicates, the penalties are severe if you willfully evade or defeat payment of your federal income taxes,” said U.S. Attorney Bogden.  “Cheating on your taxes is not a way to remove debt and is never a good option.” 

Goldberg pleaded guilty on March 29, 2013, to one count of attempt to evade or defeat tax for the tax year 2008 and admitted that he filed tax returns that significantly understated his taxable income and attempted to hide the income through the use of nominee bank accounts.

According to the facts in the plea agreement, Goldberg’s law firm, Randolph Goldberg, Esq., was organized and incorporated under Subchapter S of the IRS Code, which made any income generated by the firm taxable individually to Goldberg.  In 2009, Goldberg willfully caused the filing of false and fraudulent federal tax returns for himself and the law firm, knowing that the returns contained false and fraudulent information and understated his true income in calendar year 2008. During 2008 and 2009, Goldberg also attempted to conceal the true income of his law firm by causing proceeds generated by the firm to be deposited directly into his personal bank account and to be deposited into a bank account held by a nominee corporation, separate from his law firm practice. 

Goldberg was permitted to self-report to federal prison by Aug. 22, 2013.  

The case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorneys Christina M. Brown and Steven W. Myhre.

Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. 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. – A man has pleaded guilty to conspiracy to commit fraud for his role in the embezzlement of nearly $5.6 million from Turnberry Associates, the parent company which owned or developed the Residences at MGM, Town Square shopping center, Turnberry Place, Turnberry Towers, and the Stirling Club in Las Vegas, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

            Rocco Lazazzaro, 55, of Las Vegas, pleaded guilty to conspiracy to commit wire fraud and is scheduled to be sentenced on Aug. 22, 2013, by U.S. District Judge Gloria M. Navarro.  

According to Lazazzaro’s written guilty plea agreement, from about May 17, 2007, to about Jan. 12, 2012, he and Hope Ippoliti, 51, the former controller for Turnberry Associates, conspired to steal approximately $3.7 million dollars from Turnberry and its affiliates.  Ippoliti created fund transfer requests containing false information that the funds were intended for business-related purposes when she and Lazazzaro actually intended to withdraw the funds for personal use. Ippoliti faxed or emailed the fund transfer requests from Nevada to Turnberry Associates in Florida to cause the transfer of funds into Bank of America accounts over which she had signatory authority.  Ippoliti and Lazazzaro deposited and cashed checks and cashier’s checks drawn on Bank of America bank accounts belonging to Turnberry Associates and its affiliates. The total losses to Turnberry Associates and its affiliates are approximately $5.6 million.  According to Lazazzaro’s guilty plea agreement, he was directly involved in causing approximately $3.7 million of those losses.

In March, Ippoliti pleaded guilty to conspiracy to commit wire fraud resulting in total losses of $5.6 million dollars, and is scheduled to be sentenced on July 11, 2013 before U.S. District Judge Gloria M. Navarro.  

Both Lazazzaro and Ippoliti face a maximum of 20 years in prison, a $250,000 fine, criminal forfeiture, five years of supervised release, and are required to make full restitution to Turnberry Associates. 

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

Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. 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 – A local urology practice, Las Vegas Urology, LLP, has agreed to pay the United States Department of Justice $1 million to resolve civil allegations that it improperly billed Medicare, TRICARE, and other federal health care insurance programs, announced Daniel G. Bogden, United States Attorney for the District of Nevada. 

            The United States contends that Las Vegas Urology engaged in improper billing between Jan. 1, 2005, and June 30, 2010, to Medicare, TRICARE, the Federal Employee Health Benefits Program, and the Railroad Retirement Medicare Program.  In a settlement agreement effective May 17, 2013, the parties agreed to resolve the United States claims. In consideration of the $1 million payment and an integrity agreement entered into between the federal government and Las Vegas Urology, the federal government has agreed not to seek exclusion of Las Vegas Urology from federal health care programs.  In addition, the settlement agreement states that it is neither an admission of liability by Las Vegas Urology nor a concession by the United States that its claims are not well founded.

            According to the Las Vegas Urology website, they have seven locations in the Las Vegas Valley and 12 physicians.

            Assistant United States Attorney Roger Wenthe handled the case on behalf of the U.S. Attorney’s Office.  The case was investigated by the Office of the Inspector General for the U.S. Department of Health and Human Services..

            LAS VEGAS, Nev. – Las Vegas attorney Stanley A. Walton, 54, has pleaded guilty to a charge brought against him in February 2011 that he participated in a scheme to obtain mortgage loans from financial institutions using straw buyers and false loan applications, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

            Walton pleaded guilty on Wed., May 15, 2013, to one count of conspiracy to commit bank, mail and wire fraud, and is scheduled to be sentenced by U.S. District Judge James C. Mahan on Aug. 20, 2013, at 10:00 a.m.  Walton faces up to 30 years in prison and a $1 million fine, and has agreed to the forfeiture of $750,000 in money or property in addition to restitution.

            According to the guilty plea memorandum, from about Sept. 22, 2004, through July 24, 2007, Walton conspired with others to fraudulently obtain residential mortgages in order to obtain proceeds from the mortgages for their personal use. Walton recruited straw buyers to purchase homes, while Walton intended to control the ownership interests of the homes, obtain proceeds from the mortgage loans for his own use, and later resell the house for a profit.  Walton advised the straw buyers that he would use their names and credit to purchase the homes, and would split the profits with them when the homes were re-sold.  Walton held himself out to the straw buyers as an attorney with knowledge and skill in these types of transactions, and intentionally did not disclose this plan or activity to the financial institution lenders.  Walton made false statements in and caused co-schemers to make false statements in the straw buyers’ loan applications and supporting documents concerning the straw buyers’ income, assets, intent to occupy the homes, and other information. Walton also directed straw buyers to take steps to make it appear they intended to occupy the homes, such as placing utilities in their names. Walton caused loan proceeds to be paid to him by falsely claiming them as attorney’s fees, fraudulently diverting them through real estate agents, and fraudulently having payments made to his company, knowing that this information would be concealed from the lenders.

            Walton and the co-schemers fraudulently purchased six homes in Henderson and three homes in Las Vegas.  Walton admitted in his plea agreement that the loss caused by his criminal conduct was approximately $3.6 million. 

Pamela Black, 65, a mortgage loan officer, also pleaded guilty to one count of conspiracy to commit bank, mail and wire fraud, and was sentenced on July 26, 2012, to time served, three years of supervised release, and ordered to pay approximately $1.2 million in restitution.

            The investigation was conducted by the FBI, and the case is being prosecuted by Assistant U.S. Attorneys Daniel R. Schiess and Kathryn C. Newman.

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

            RENO, Nev.  -  Two of three defendants charged with stealing 520 pounds of copper wire from the railroad track power lines near Wells, Nev. in July 2011, causing approximately $5,000 in damage and disabling the railroad signal system, have been sentenced to 1½ years in federal prison and ordered to pay $4,960 in restitution to the Union Pacific Railroad, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

            Allison Peters, 45, and Timothy Neal Bevel, 54, of Boise, Idaho, were sentenced in Reno on Monday, May 13, 2013, by U.S. District Judge Robert C. Jones.  A third defendant, Theron Andrew Peters, 49, also of Boise, Idaho, is scheduled to be sentenced by Judge Jones on June 10, 2013. They all pleaded guilty in January 2013 to one count of unlawful damage and impairment of a railroad signal system.

“The theft of copper wire from the power lines disables the train signal system and interferes with train communications,” said U.S. Attorney Bogden.  “These thefts are extremely dangerous and can jeopardize motorists and train occupants. Train operators may not receive information about hazards on the tracks or about other trains, leading to possible collisions between trains.”

            The Union Pacific/Amtrak signal system runs parallel to the train tracks used by both train companies.  According to the court records, on July 25, 2011, at approximately 2:30 a.m., the Union Pacific Railroad detected a signal line problem near the Tobar Township south of Wells, Nev.  A railroad signal maintainer traveled to the location, and found railroad power lines hanging down near the tracks and estimated that about five pole lengths of wire had been stolen. The defendants were arrested several hours later following a high speed chase that ended when the truck the defendants were traveling in got stuck in the desert.  The stolen copper wire, glass insulators, and bolt cutters were found discarded along the chase route.

            ECSO deputies later obtained and executed a search warrant for the truck and recovered gloves, binoculars, topographical maps of Idaho and Nevada, five cell phones, a digital camera, a police scanner, a spotlight, several sales receipts for the sale of copper wire to various recycling centers, a global positioning unit, a bolt cutter, a compass, and a laptop computer.  A search of the laptop computer revealed numerous files relating to copper, scrap metals, aerial photographs and a scrap metals composite index.  The recovered wire totaled 520 pounds.

            The investigation was conducted by the FBI and Elko County Sheriff’s Office, and the case was prosecuted by Assistant United States Attorney Brian L. Sullivan.

            LAS VEGAS, Nev. – Two men accused of stealing checks, credit cards and other items from local mailboxes using counterfeit U.S. Postal Service keys, are scheduled to be arraigned by a federal magistrate judge tomorrow afternoon,  announced Daniel G. Bogden, United States Attorney for the District of Nevada.

            Derrick F. Hutson, 42, and Marshal R. Stapleton, 27, both of Las Vegas, are scheduled to appear at 3:00 p.m. on Thursday, May 16, 2013, before U.S. Magistrate Judge Robert A. McQuaid, Jr.  They are charged with conspiracy, possession of stolen mail and unauthorized possession of counterfeit U.S. Postal Service keys.

            According to the criminal complaint dated April 23, 2013, United States Postal Service employees recently received reports of several incidents of mail theft in the Summerlin and Northwest areas of Las Vegas.  The reports indicated that entire contents of mailboxes had been removed from cluster-type mailboxes, but that no damage had occurred to the mailboxes indicating the use of a counterfeit key.  Following an investigation by the U.S. Postal Inspection Service, Hutson and Stapleton were apprehended on April 15, 2013, at approximately 2:20 a.m. while they were sitting in a vehicle parked next to a cluster mail box in a Summerlin-area community.  Postal Inspectors recovered from the vehicle counterfeit U.S. Postal Service keys and burglary tools.  Postal Inspectors later recovered from their homes, stolen U.S. Postal Service mailbox locks and parts, counterfeit keys, counterfeit identity documents, credit card manufacturing devices, check software, and stolen mail.  

The criminal indictment charges that between January and April 23, 2013, Hutson and Stapleton made and possessed counterfeit U.S. Post Office keys which they used to steal checks, gift cards, debit cards, credit cards, and other items from mailboxes in Las Vegas.

            If convicted, Hutson and Stapleton face up to five years in prison and a $250,000 fine on the conspiracy and stolen mail charges and up to 10 years in prison and a $250,000 fine on the counterfeit key charges.  They are currently in federal custody pending their arraignment tomorrow.
The case is being investigated by the United States Postal Inspection Service and is being prosecuted by Assistant U.S. Attorney Brian Pugh.  

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

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 - - Following a month-long jury trial, Jacorey Taylor, aka “Mo-B,” 30, a member of the Playboy Bloods street gang, was convicted today of a racketeering conspiracy charge, murder in aid of the racketeering enterprise, use of a firearm during a crime of violence, conspiracy to distribute over 280 grams of crack cocaine, and two counts of possession with intent to distribute crack cocaine for conduct that included the retaliation murder of a man in November 2004, announced Daniel G. Bogden, United States Attorney for the District of Nevada and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.

Taylor was convicted of one count of engaging in a RICO conspiracy, one count of violent crime in aid of racketeering activity, one count of using a firearm during a crime of violence, one count of participating in a drug conspiracy, and two counts of possession of crack cocaine with the intent to distribute.  He is the ninth of 10 gang members charged in federal court in 2008 to be convicted.  The remaining defendant, Markette Tillman, 31, is scheduled for trial beginning on September 23, 2013. 

            Two Playboy Blood co-defendants were sentenced to 20 years each during Taylor’s trial.  Steven Booth, 27, aka “Stevie-P,” and Reginald Dunlap, 30, aka “Bowlie,” were sentenced on April 9th and 10th , 2013, respectively, after pleading guilty to racketeering conspiracy charges that included aiding and abetting in murder in connection with the Playboy Bloods racketeering conspiracy.

According to court documents and evidence produced at trial, the Bloods is a nationally-known criminal street gang whose members engage in drug trafficking and acts of violence.  The Playboy Bloods is a local “set” or affiliate of the Bloods, with local control and operation within the Las Vegas metropolitan area.  Other Bloods sets within the Las Vegas metropolitan area include the Piru Bloods and the West Coast Bloods.  A subset of the Playboy Bloods is Full Throttle Clique, a group made up of Playboy Bloods members who engage in acts of violence, including murder.  According to evidence presented at trial, Taylor, Dunlap, and Booth were all members of the “Full Throttle Clique” of the Playboy Bloods. Taylor, along with other Playboy Bloods enterprise members, operated drug houses in the Sherman Gardens Annex (also known as “The Jets”) and the surrounding areas.  

Taylor, along with co-defendants Reginald Dunlap and Steven Booth, was specifically convicted of participating in the murder of Billy Ray Thomas, who was shot multiple times in the back as he worked on a car in the parking lot of the Pecos Terrace Apartments located at 3555 E. Lake Mead Boulevard in Las Vegas while waiting to take his girlfriend to work on the morning of November 1, 2004. The defendants murdered Thomas in retaliation, mistakenly believing him to be a member of a rival street gang.  According to evidence presented at trial, two car loads of Playboy Bloods members and associates, including Taylor, Dunlap, Booth and others, drove through known Crip neighborhoods searching for rivals to retaliate against for the murder of Quaza Burns, a leader of the Playboy Bloods.  The victim, Billy Ray Thomas, had no gang affiliation. 

Booth also admitted to participating in the murder on January 20, 2004, of Brian Wilcox, a security guard working in the Sherman Gardens Annex.  Brian Wilcox was shot several times in the back while on duty.  

Evidence produced at trial also showed that on March 21, 2002, Taylor, armed with an AR-15 style assault rifle and another man, armed with an handgun, entered the Klondike Casino in Henderson, Nevada, forced their way behind the casino cage, and robbed the casino of over $7,000 in currency.
United States Attorney Daniel G. Bogden commended the trial team and stated, “A federal jury today confirmed that Jacorey Taylor and other members of the Playboy Bloods sold drugs, committed robberies, intimidated security guards and other citizens and murdered innocent victims.  It was only through the persistent hard work of the FBI and our local law enforcement partners, along with dedicated federal prosecutors from my office and the Department of Justice’s Organized Crime and Gang Section, that a previously unsolved murder was prosecuted and those gang members were brought to justice.  The Sherman Gardens and the surrounding neighborhoods in Las Vegas are safer because of those efforts.”
Taylor has been in federal custody since 2008, and is scheduled to be sentenced on August 8, 2013, by Chief U.S. District Judge Robert C. Jones.  Taylor faces up to 20 years on the racketeering conspiracy count, mandatory life in prison on the murder in aid of racketeering charge, up to life for using a firearm in furtherance of a violent crime, 20 years to life on the conspiracy to distribute crack cocaine and up to 30 years in prison for each count of possession with intent to distribute crack cocaine.  In the federal system, there is no parole and by statute Taylor faces a mandatory sentence of life without parole for his murder conviction.

Taylor was the ninth member of the Playboy Bloods enterprise convicted of racketeering conspiracy charges.

 The eight other defendants who have been convicted and sentenced are:

Steven Booth, aka “Stevie-P,” 27, pleaded guilty to RICO conspiracy, and was sentenced to 20 years in prison on April 10, 2013; Reginald Dunlap, aka “Bowlie,” 30, pleaded guilty to RICO conspiracy, and was sentenced to 20 years in prison on April 9, 2013;

Demichael Burks, aka “Mikey P,” 29, pleaded guilty to RICO conspiracy, and was sentenced to 6½ years in prison on Dec. 3, 2010. 

Anthony Mabry, aka “Akim Slim,” 43, pleaded guilty to RICO conspiracy and was sentenced to 14 years in prison on Oct. 20, 2010;

Delvin Ward, aka “D-Luv,” 37, pleaded guilty to RICO conspiracy and was sentenced to 11 years in prison on Sept. 17, 2010;

Terrence Thomas, aka “Seven,” 40, pleaded to drug conspiracy and was sentenced to 10 years in prison on June 16, 2010;

Sebastian Wigg, aka “Rock,” 36, pleaded to drug conspiracy and was sentenced to five years in prison on March 29, 2010; and

 Fred Nix, aka “June P,” 36, pleaded to drug conspiracy and was sentenced to five years in prison on March 29, 2010. 

            The cases were investigated by the FBI’s Las Vegas Safe Streets Gang Task Force, which include officers from the North Las Vegas Police Department and Las Vegas Metropolitan Police Department, and prosecuted by Assistant United States Attorneys Nicholas D. Dickinson, and Phillip N. Smith, Jr., and Kevin L. Rosenberg, Trial Attorney with the U.S. Department of Justice Organized Crime and Gang Section.