Six additional tax return preparers pled guilty to filing false tax returns with the Internal Revenue Service (IRS) in a scheme that claimed more than $6,663,976 in fraudulent tax refunds.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Raymond D. Moss, Acting Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.  

Natalie Mitchell, 42, Artrice Reid, a/k/a Artrice Nelson, 40, Tomeka Anderson, a/k/a Tomeka Owens, 36, Tiffany Gaines, a/k/a Tiffany Morris, 38, Artravette Thomas, a/k/a Artravette Wilson, 41, and Danny Horne, 30, each pled guilty to one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286, one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(1).

On December 15, 2015, Tameka Walker, 38, Celia Cromer, 43, and Maritynque Cromer, 25 previously pled guilty and were sentenced to 78 months, 50 months, and 36 months in prison, respectively, followed by three years of supervised release, and were all ordered to pay joint and several restitution in the amount of $796,535.  On September 29, 2015, Marlin Mejia, 29, was sentenced to 21 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $17,428.

Trial is scheduled to begin on June 13, 2016 for Paganini Fleurantin, a/k/a Hu’Ra Al’Dey, 28.

According to court documents, from September 2010 through May 22, 2013, the defendants conspired to defraud the IRS by filing fraudulent tax returns claiming fraudulent tax refunds. Defendant Walker owned and operated Family Tree Taxes, Inc., a tax preparation business in Miami Gardens. Walker purchased stolen personal identification information (PII) from various sources, including defendant Mejia, to file fraudulent tax returns. Mejia worked as a radiology transporter at a hospital and stole documents (face sheets) containing patients’ PII (including names, dates of birth, and Social Security numbers) from patient files at the hospital. Mejia knew the PII belonged to real people who did not authorize him to possess their personal information. Mejia sold the face sheets to Walker knowing that Walker would use the stolen PII to file fraudulent tax returns.

Defendants Mitchell, Reid, Anderson, Gaines, Thomas, Horne, Fleurantin, Celia Cromer and Maritynque Cromer were employed by Walker as tax preparers at Family Tree Taxes. The employees filed tax returns using stolen identities to claim fraudulent tax refunds, and also filed tax returns claiming fraudulent overinflated tax refunds. Specifically, the stolen PII of 95 hospital patients was used by the employees to claim over $76,757 in fraudulent tax refunds. And in 2012, Mejia authorized Walker to file a tax return for him claiming a fraudulent overinflated tax refund of $3,452.

Gaines is scheduled to be sentenced on July 20, 2016.  Thomas, Mitchell, Anderson and Reid are scheduled to be sentenced on July 22, 2016.  Horne is scheduled to be sentenced on August 8, 2016. 

At sentencing, the defendants each face a maximum of ten years imprisonment for the conspiracy to defraud the government charge, a maximum of twenty years imprisonment for the conspiracy to commit wire fraud charge, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.

Mr. Ferrer commended the investigative efforts of IRS-CI, ICE-HSI, and USPIS.  The case is being prosecuted by Assistant United States Attorney Vanessa Snyder.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Preet Bharara, the United States Attorney for the Southern District of New York, and John P. Carlin, Assistant Attorney General for National Security, announced that ALI REZA PARSA, a Canadian-Iranian dual citizen and resident of Canada, was sentenced on Friday, May 20, 2016, to three years in prison for his participation in a conspiracy to violate the International Emergency Economic Powers Act (“IEEPA”) and the Iranian Transactions and Sanctions Regulations (“ITSR”).  PARSA was arrested in October 2014 following an investigation by the Federal Bureau of Investigation (“FBI”) and United States Department of Commerce, Bureau of Industry and Security (“BIS”).  PARSA pled guilty on January 20, 2016, before U.S. District Judge Ronnie Abrams, who imposed Friday’s sentence. 

Manhattan U.S. Attorney Preet Bharara said: “As he admitted in court, Ali Reza Parsa conspired to purchase high-tech electronic components – some used in the production of rockets and missiles – from American companies for eventual delivery to Iran through Canada.  He has now been sentenced to three years in prison for his violation of federal law.”

Assistant Attorney General John P. Carlin said: “Over the course of six years, Parsa repeatedly violated export control laws and aided Iranian entities in procuring high-tech electronic components that have both commercial and military uses.  With this sentence, he will be held accountable for circumventing important U.S. laws designed to protect our national security interests.  One of our top national security priorities remains safeguarding our national assets from those who may wish to do us harm.”

According to the Indictment filed against PARSA and other court documents publicly filed in this case and statements made in court proceedings, including Friday’s sentencing:

Between approximately 2009 and 2015, PARSA conspired to obtain high-tech electronic components from American companies for transshipment to Iran and other countries for clients of PARSA’s procurement company in Iran, Tavan Payesh Mad, in violation of U.S. economic sanctions.  To accomplish this, PARSA used his Canadian company, Metal PM, to place orders with U.S. suppliers and typically had the parts shipped to him in Canada or to a freight forwarder located in the United Arab Emirates, and then transshipped from these locations to Iran or to the location of his Iranian company’s client.  PARSA provided the U.S. companies with false destination and end-user information about the components in order to conceal the illegality of these transactions. 

PARSA’s criminal scheme targeted numerous American technology companies.  The components that PARSA attempted to procure included cryogenic accelerometers, which are sensitive components that measure acceleration at very low temperatures.  Cryogenic accelerators have both commercial and military uses, including in applications related to ballistic missile propellants and in aerospace components such as liquid-fuel rocket engines.

In addition, following his arrest and while incarcerated at the Metropolitan Detention Center, PARSA continued to violate the IEEPA and the ITSR  by conducting business for Metal PM and Tavan Payesh Mad, including by ordering parts from German and Brazilian companies for Iranian customers.  PARSA subsequently directed a relative to delete email evidence of his ongoing business transactions while in jail, emphasizing the need for secrecy in their dealings.

Neither PARSA nor any other individual or entity involved in transactions that gave rise to his conviction applied for or obtained a license from the U.S. Department of the Treasury’s Office of Foreign Assets Control for the transactions. 

*          *          *

In addition to the 36-month prison term, PARSA, 45, was ordered to pay a $100 special assessment.

Mr. Bharara praised the outstanding investigative work of the FBI and BIS.  He also thanked the U.S. Department of Justice’s National Security Division’s Counterintelligence and Export Control Section.

This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit.  Assistant United States Attorneys Michael D. Lockard and Anna Skotko are in charge of the prosecution.

EUGENE, Ore – Former Deschutes County Sheriff’s Office Captain Scott Raymond Beard, 46, of Bend, Oregon, pleaded guilty today to four felony offenses related to an embezzlement scheme where he stole $205,000 in taxpayer funds and laundered some of the tainted cash.  The government alleges Beard laundered the cash to pay expenses on behalf of his co-defendant, Krista Jean Mudrick, 35, of Bend, Oregon.  Mudrick is also a former employee of the Deschutes County Sheriff’s Office and is charged with making false statements to the FBI and IRS about Beard’s expenditures of the ill-gotten gains.  Her case is pending, and she is presumed innocent.

Beard appeared in court today and, pursuant to a plea agreement, pleaded guilty to two counts of theft of funds from a federally funded program, and two counts of money laundering.  A related count, passport fraud, was dismissed.

United States District Judge Michael McShane presided over Beard’s guilty plea and will sentence him on August 23, 2016.  Beard faces up to twenty years in prison and will pay full restitution to Deschutes County.

This case was investigated by the FBI, IRS-Criminal Investigation, and the Deschutes County Sheriff’s Office.  Assistant U.S. Attorney Christopher Cardani is prosecuting the case.

SACRAMENTO, Calif. — John Cal Howe, II, 42, of Lakehead, was sentenced today to 18 months in prison after being convicted of 23 misdemeanor counts in a scheme to obtain thousands of dollars in veterans’ benefits to which he was not entitled, Acting United States Attorney Phillip A. Talbert announced. 

According to court documents, Howe was engaged in a scheme to defraud the VA for over three years.  He falsely claimed he was a decorated United States Marine Corps veteran, although he had never enlisted or served in the armed forces of the United States. He stole $13,623.02 in benefits from the Veterans Affairs (VA) and sought to further defraud the VA by applying for a service-related pension. In connection with his scheme, he repeatedly lied about serving in the United States Marine Corps, including lying about being wounded in combat; about completing twelve tours of duty in operation Desert Shield, the Persian Gulf War, Somalia, Afghanistan, and Iraq; and about being awarded three Purple Heart medals.  Further, when the VA began to question Howe’s lies, Howe tried to have a Congressman’s office intervene on his behalf.

This case was the product of an investigation by the Veterans Administration Office of the Inspector General. Special Assistant United States Attorney Elliot Wong prosecuted the case.

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Special Assistant U.S. Attorney Kathleen J. O’Hara (619) 546-7945

NEWS RELEASE SUMMARY– May 23, 2016

SAN DIEGO – Former University of San Diego women’s basketball star Dominique Conners, 26, was sentenced today by U.S. District Judge Michael M. Anello to 90 days house arrest and three years’ probation for thefts she committed at Camp Pendleton in order to fund her gambling addiction. Judge Anello also ordered Conners to pay $11,779 in restitution after she stole the wedding gifts of a newly married couple who were staying at a beach cottage at the Del Mar Beach Resort on Camp Pendleton.

Ms. Conners, a graduate of La Jolla Country Day School, went on to star for the University of San Diego Torreos.  Conners, a WNBA draft prospect, also played professional basketball in the Czech Republic. According to court documents and other admissions, her thefts at Camp Pendleton began shortly after she returned to the United States from Europe.  Records showed that Ms. Conners was gambling several thousand dollars a week and had access to Camp Pendleton because her father is a retired Marine.  Ms. Conners had been ordered to attend counseling for gambling addiction after her arraignment in November 2015. 

The victims in this case had just been married and had over $11,000 in cash gifts in their beach cottage.  Shoe prints were found on the window sill and a forensic analysis of Ms. Conners’s shoes matched her to the crime scene.  One victim stated, “I felt violated and the false sense of security (on a military installation) was overwhelming.”  Another victim said, “She stole a large sum of money from us.  Money that was to help start our new life together after we got married.” 

The Marine Corps Criminal Investigations Division (CID) conducted the investigation. The victims were able to recover their lost property.

CID also linked Ms. Conners to several other vehicle thefts.  In those cases, Ms. Conners stole cash and gift cards from unlocked vehicles at the beach, but left the wallets and other personal items behind.  Ms. Conners was ordered to pay restitution for those thefts as well.

DEFENDANTS                               

Dominique Conners                                                                Age: 26                       Oceanside, CA

SUMMARY OF CHARGES

18 U.S.C. § 661 – Theft within the Special Maritime or Territorial Jurisdiction

AGENCY

Criminal Investigative Division, United States Marine Corps

SACRAMENTO, Calif. — A federal grand jury returned a six-count indictment on May 19, 2016, against Pamela Dawn Pierson, 50, of Vallejo, and Michelle Louise Travis, 50, of Suisun City, California. The indictment, which was unsealed today, charges both Pierson and Travis with conspiracy to commit wire fraud, conspiracy to defraud the United States government, filing false claims against the United States government, and aggravated identity theft, Acting United States Attorney Phillip A. Talbert announced. 

According to court documents, Pierson and Travis used identity theft victims’ personal identifying information to file fraudulent tax returns in order to obtain income tax refunds to which they were not entitled.

This case was the product of an investigation by the Internal Revenue Service – Criminal Investigation, Federal Bureau of Investigation, and Fairfield Police Department, with assistance from the University of California – San Francisco Police Department. Assistant United States Attorney Brian A. Fogerty is prosecuting the case.

Travis was arraigned today before United States Magistrate Judge Carolyn K. Delaney.

If convicted, Pierson and Travis face a maximum statutory penalty of 20 years in prison for the conspiracy to commit wire fraud charge, a maximum of 10 years in prison for conspiracy to defraud the United States government, a maximum of 5 years in prison for the false claims charges, and a mandatory term of 2 years in prison for the aggravated identity theft charges. Each of the charges carries a maximum fine of $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

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            WASHINGTON – Francis Davis, 69, of Washington, D.C., was sentenced today to 42 months in prison for robbing a bank last year in Southeast Washington, announced U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).

            Davis pled guilty in February 2016 to a charge of bank robbery. He was sentenced by the Honorable Christopher R. Cooper of the U.S. District Court for the District of Columbia. Upon completion of his prison term, Davis will be placed on three years of supervised release.

            According to the government’s evidence, on Monday, Nov. 9, 2015, at approximately 9:15 a.m., Davis entered the rear door of the SunTrust Bank in the 300 block of Pennsylvania Avenue SE. Once inside, he walked to a teller station. Davis then passed the bank teller a note which demanded money.  The teller read the note and paused in disbelief. At that time, Davis stated, “Quit stalling … Somebody is gonna’ get hurt.”

            The teller opened the cash drawer and passed $1,589 to the defendant. Davis stated, “That’s good,” and then walked swiftly out the door. Law enforcement officers submitted images taken from the bank’s surveillance video to the law enforcement community.  The defendant was subsequently identified from several surveillance video photos from the robbery. He was arrested on Dec. 11, 2015 and has been in custody ever since.

            In announcing the sentence, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Chief Lanier commended the actions of the FBI and Metropolitan Police Department officers who worked to solve this case.  They also expressed appreciation for the work of Paralegal Specialists Jeannette Litz and Teesha Tobias of the U.S. Attorney’s Office. Finally, they commended efforts of Assistant U.S. Attorney Emory V. Cole, who investigated and prosecuted the case.

PROVIDENCE, R.I. - Kedwin Vargas, 25, and Rene A. Laureano, 30, of Roxbury, Mass., have been ordered detained in federal custody on federal criminal complaints charging them with conspiracy to transport a minor interstate for prostitution and transporting a minor interstate for prostitution.

According to court documents, it is alleged that information about the trafficking of a minor female from Boston to Rhode Island for the purpose of prostitution by Vargas and Laureano came to the attention of law enforcement after an East Greenwich resident contacted Rhode Island State Police alleging that he was being extorted by a Massachusetts resident in exchange for not providing information to his wife about sexual encounters with the minor female in exchange for payment.

Vargas was arrested on May 19, 2016, and ordered detained by Magistrate Judge Lincoln D. Almond. Laureano was arrested on Monday and was ordered detained by Magistrate Judge Lincoln D. Almond.

The arrest and detention of Vargas and Laureano is announced by United States Attorney Peter F. Neronha, Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police, and Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI.

According to court documents and information presented to the court, in March 2016, an East Greenwich resident contacted Rhode Island State Police and alleged that Vargas was attempting to extort him by threatening to provide a video and audio recording to his family which contained information regarding sexual encounters he had with a minor female in exchange for payment. An investigation by Rhode Island State Police and the FBI revealed numerous text messages and cell phone conversations between Vargas and others with the East Greenwich resident, in which it is alleged that Vargas is identified as the person allegedly attempting to extort cash from the East Greenwich resident.

According to court documents, it is alleged that the investigation revealed that more than a year ago, Vargas began posting ads on backpage.com offering the minor female for prostitution. It is alleged that in many instances, Laureano would drive the female to meet with customers, including the East Greenwich resident. It is alleged in court documents that the East Greenwich resident admitted to investigators that he had met with and had sexual contact with the female on numerous occasions in several different locations in Rhode Island in exchange for cash.

The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.

The Warwick, R.I., and Boston Police Departments assisted in the investigation of this matter.

A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

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Contact:

Jim Martin (401) 709-5357

email: USARI.Media@usdoj.gov

on Twitter @USAO_RI

            WASHINGTON – Jason A. Razo, 39, a former background investigator who did work under contract for the U.S. Office of Personnel Management (OPM), was sentenced today to two months of incarceration, to be followed by four months of home detention, on a charge stemming from his falsification of work on background investigations of federal employees and contractors, announced U.S. Attorney Channing D. Phillips and Norbert E. Vint, Acting Inspector General for the Office of Personnel Management.

           Razo, of Van Nuys, Calif., pled guilty in February 2016, in the U.S. District Court for the District of Columbia, to making a false statement. He was sentenced by the Honorable Senior Judge Gladys Kessler. Following his prison term, Razo will be placed on three years of supervised release, during which he will serve the four months of home detention. Also, Razo has agreed to pay $85,779 in restitution to the federal government.

            According to a statement of offense submitted to the Court, Razo was employed by KeyPoint Government Solutions as an investigator under contract to conduct background investigations on behalf of OPM’s Federal Investigative Services.

            Between October 2010 and July 2011, in approximately 50 Reports of Investigations on background investigations, Razo represented that he had interviewed a source or reviewed a record­ regarding the subject of the background investigation. In fact, he had not conducted the interviews or obtained the records of interest. These reports were utilized and relied upon by the agencies requesting the background investigations to determine whether the subjects were suitable for positions having access to classified information, for positions impacting national security, for receiving or retaining security clearances, or for positions of public trust.

            Razo’s false representations have required Federal Investigative Services to reopen and rework numerous background investigations that were assigned to him during the time period of his falsifications, at an estimated cost of at least $85,779 to the U.S. government.

            Federal Investigative Services has a robust integrity assurance program which utilizes a variety of methods to ensure the accuracy of reported information.  The falsification of investigative case work by the defendant was detected through the program.

            This is one of numerous cases prosecuted by the U.S. Attorney’s Office for the District of Columbia since 2008 involving false representations by background investigators and record checkers working on federal background investigations. In addition to Razo, 21 other background investigators and two record checkers have been convicted of charges.

            Federal Investigative Services, through its workforce of approximately 6,000, including 5,200 field investigators, is responsible for conducting background investigations for numerous federal agencies and their contractors, on individuals either employed by or seeking employment with those agencies or contractors. Federal Investigative Services conducted more than 2.4 million investigations during the 2015 fiscal year. More than 600,000 of these investigations involved applicants for access or continued access to classified information.

            In performing background investigations, the investigators conduct interviews of individuals who have information about the person who is the subject of the review. In addition, the investigators seek out, obtain, and review documentary evidence, such as employment records, to verify and corroborate information provided by either the subject of the background investigation or by persons interviewed during the investigation.  After conducting interviews and obtaining documentary evidence, the investigators prepare a Report of Investigation containing the results of the interviews and document reviews, and electronically submit the material to OPM in Washington, D.C. OPM then provides a copy of the investigative file to the requesting agency, which can use the information to determine an individual’s eligibility for employment or a security clearance.

            In announcing the sentence, U.S. Attorney Phillips and Acting Inspector General Vint praised the efforts of Special Agent Christopher Sulhoff, OPM, Office of the Inspector General, and Philip Kroop, Kevin Cassidy, and Jeffrey Addicks, OPM, Federal Investigative Services. They also acknowledged the work of Paralegal Specialists Donna Galindo and Julie Dailey of the U.S. Attorney’s Office, as well as Assistant U.S. Attorney Ellen Chubin Epstein, who investigated and prosecuted this matter.

In Del Rio today, former Maverick County Precinct 3 Commissioner and Eagle Pass ISD teacher Jose Luis Rosales and former Maverick County Justice of the Peace and businessman Cesar Iracheta were sentenced for their roles in a bribery, kickback and bid-rigging scheme announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division. 

Appearing before United States District Judge Alia Moses, Rosales was sentenced to 66 months imprisonment and 300 hours of community service.  Rosales also was ordered to pay $14,185.72 in restitution.  Iracheta was sentenced to 94 months imprisonment and ordered to pay $81,607.80 in restitution.  On December 8, 2015, Rosales pleaded guilty to one count of receiving a bribe; Iracheta pleaded guilty to one count of paying a bribe to an agent of an organization receiving federal funds. 

According to court records, Rosales admitted that during 2012, he manipulated the bidding process to guarantee that individuals he chose would be awarded Maverick County construction contracts. In the scheme, those contractors deposited the checks issued to them by Maverick County and then made cash payments to Rosales.  According to court records, the private contractors submitted inflated bids to Maverick County to cover the bribe to Rosales. 

Court records show Iracheta, doing business as C&A Construction in Maverick County, admitted that in 2010, he paid a total of between $8,000 and $10,000 to a Maverick County Commissioner in order to secure two Precinct 2 county construction contracts worth approximately $49,000.  According to court records, Iracheta submitted inflated bids to Maverick County to cover the bribes to the county commissioner. 

“The sentencing of these two defendants illustrates San Antonio FBI’s firm commitment to work with our law enforcement partners to address public corruption and hold corrupt officials in Maverick County accountable,” stated FBI Special Agent in Charge Christopher Combs.  “The FBI encourages the public to continue to support our active and ongoing efforts to root out graft in South Texas by reporting corrupt activity to the FBI’s Public Corruption Hotline, 1-800-CALL-FBI.”

Rosales and Iracheta remain on bond.  Rosales must self-surrender no earlier than September 12, 2016.  Iracheta must self-surrender no earlier than August 24, 2016. 

This investigation was conducted by the FBI and the Texas Department of Public Safety Criminal Investigative Division together with the Customs and Border Protection Office of Internal Affairs and the Eagle Pass Independent School District Police Department

Assistant United States Attorney Katherine Griffin prosecuted this case on behalf of the Government. 

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CHICAGO — Several suspects, including high-ranking members of a Chicago street gang, are facing drug or gun charges for their alleged roles in dealing narcotics and firearms on the city’s South Side.

The investigation, dubbed “Operation Cornerstone,” spanned more than two years and included seizures of distribution quantities of cocaine and heroin, as well as confiscations of firearms and cash proceeds from drug sales.  Authorities uncovered the criminal activity through the use of wiretapped cellular phones, cooperating witnesses, controlled purchases of narcotics and guns, and extensive surveillance.

Several suspects were arrested today without incident.  While attempting to arrest a suspect at a residence in Park Forest, two agents of the Federal Bureau of Investigation were wounded.  The agents survived the shooting and their injuries are not believed to be life threatening.  The suspect, MELVIN TORAN, 50, of Park Forest, was later found dead inside the home.  Toran was a high-ranking member of the Black P-Stone Nation street gang.  He was set to be charged in federal court with distributing heroin.

Several defendants will be charged in criminal complaints to be filed in federal court in Chicago.  One defendant will be charged in a complaint filed in state court.

In addition to Toran, the investigation revealed that a number of the suspects are ranking members of the Black P-Stone Nation.  One of them arranged for the sale of 225 grams of heroin for $15,700 on Nov. 6, 2015.  Unbeknownst to him, the buyer was cooperating with law enforcement and had surreptitiously recorded both the negotiation – in a restaurant in the Back of the Yards neighborhood – and the transaction itself in a residence in Englewood.

The investigation also uncovered a heroin and cocaine operation being run out of a South Side clothing store.  A source cooperating with law enforcement informed authorities that when picking up narcotics from the store, the normal practice was to purchase an item of clothing as a pretext.  When paying for the clothing at the checkout counter, the owner of the store or one of the employees would bag the item of clothing and also pass over an additional bag containing the narcotics.  In the summer of 2015, a cooperating source – working at the direction of investigators – purchased more than 1,000 grams of heroin from the store owner for $72,720.

In addition to the drug offenses, the investigation also involved a probe into federal gun violations.  On Feb. 23, 2015, a .380-caliber firearm and chrome magazine was sold by a suspect for $500 to an individual who was cooperating with law enforcement.  In a related case indicted last month, JAMES JONES, 41, of Chicago, was charged with being a felon in possession of a firearm.  Chicago Police officers arrested Jones after a traffic stop on Dec. 7, 2015.  In the backseat of Jones’ vehicle were an infant child and two loaded semiautomatic pistols hidden in a baby bag, according a complaint filed in December in Jones’ case.  Jones has pleaded not guilty and is being held without bond while awaiting trial.

The investigation was conducted by a joint gang task force of the FBI and Chicago Police Department.

The arrests were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the FBI; Anita Alvarez, Cook County State’s Attorney; and Eddie T. Johnson, Superintendent of the Chicago Police Department.  The Park Forest Police Department provided assistance.

Assistant United States Attorneys Shoba Pillay, Sean J.B. Franzblau and Christine M. O’Neill will represent the government in the federal cases.  The Cook County State’s Attorney’s Office will prosecute the state case.

ALBUQUERQUE – Elias David Parra, 29, of Deming, N.M., pleaded guilty this afternoon in federal court in Las Cruces, N.M., to violating the federal firearms laws.

Parra was arrested in Oct. 2015, on a criminal complaint charging him with being a felon in possession of a firearm and ammunition.  According to the complaint, officers of the Las Cruces Police Department arrested Parra after finding him in possession of a firearm and ammunition on Oct. 14, 2015, during a traffic stop in Doña Ana County, N.M.  At the time, Parra was prohibited from possessing firearms or ammunition because he previously had been convicted of a drug trafficking felony in a Texas state court.  Parra was indicted on Jan. 20, 2016. 

During today’s proceedings, Parra pled guilty to the indictment, and admitted that he unlawfully possessed a firearm and ammunition on Oct. 14, 2015.  Parra acknowledged that he was prohibited from possessing firearms or ammunition as a result of his prior felony conviction for possession of a controlled substance.

At sentencing, Parra faces a statutory maximum penalty of ten years in federal prison.  He remains in custody pending a sentencing hearing which has yet to be scheduled.

This case was investigated by the Las Cruces office of the FBI, the Doña Ana County Sheriff’s Department and the Las Cruces Police Department.  Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.

FARGO - US Attorney Christopher C. Myers announced that on May 24, 2016, Midwest HIDTA Director Jeffrey Stamm presented a Midwest HIDTA Regional Award for ‘Outstanding Cooperative Effort’ to various members of law enforcement from the United States and Canada for their teamwork on "Operation Denial."

The Midwest HIDTA is headquartered in Kansas City, Missouri, and was established in 1990 after the Anti-Drug Abuse Act of 1988 was passed. The High Intensity Drug Trafficking Area (HIDTA) Program is a drug-prohibition enforcement program run by the United States Office of National Drug Control Policy. The mission of the program is to enhance and coordinate America’s drug-control efforts among local, state, and federal law enforcement agencies in order to eliminate or reduce drug trafficking and its harmful consequences in critical regions of the United States. The term "HIDTA" also refers to each geographic location, usually a major city, county, or border crossing, in which the program has established a headquarters which are placed in locations considered to be major drug trafficking zones; to date, 28 HIDTAs have been designated since the program began. Each HIDTA is governed by a HIDTA Executive Board which includes representatives from local, state, and federal law enforcement agencies in the area of each HIDTA. By law, each HIDTA Board is equally divided between federal law enforcement on the one side and state and local agencies on the other. The Grand Forks Narcotics Task Force is a HIDTA-funded task force. The following individuals were honored by the HIDTA program and received the Outstanding Cooperative Effort Award for their exemplary work on "Operation Denial":

• Special Agent Steve Gilpin, North Dakota Bureau of Criminal Investigation

• Special Agent Scott Kraft, North Dakota Bureau of Criminal Investigation

• Special Agent Michael Ness, North Dakota Bureau of Criminal Investigation

• Special Agent Ed Carter, North Dakota Bureau of Criminal Investigation

• Special Agent Jeremy Grube, Homeland Security Investigations – Grand Forks

• Detective Daniel Casetta, Grand Forks Police Department

• Investigator Joel Lloyd, Grand Forks County Sheriff’s Office

• Investigator Delicia Glaze, Grand Forks County Sheriff’s Office

• Detective Darin Johnson, Grand Forks Police Department

• Sergeant Devan Greuel, University of North Dakota Police Department

• Investigator Andreas Alt, WCSO/Grand Forks Police Department/Grand Forks Narcotics Task Force

• Sergeant Derek Madsen, Pembina County Sheriff’s Office

• Christopher Steenerson, Border Patrol

• Intelligence Analyst Lisa Gemar, North Dakota Bureau of Criminal Investigation

• Intelligence Analyst Ross Brumley, North Dakota Counter Drug

• Sergeant Travis Jacobson, Grand Forks Police Department

• Intelligence Research Specialist Devin Stefanowicz, Homeland Security Investigations – Grand Forks

• Special Agent Craig Williams, Homeland Security Investigations – Grand Forks

• Special Agent Brian Black, Homeland Security Investigations – Grand Forks

• United States Attorney Chris Myers, District of North Dakota

• Assistant United States Attorney Scott Schneider, District of North Dakota

• Assistant United States Attorney Scott Kerin, District of Oregon

• Grand Forks County State’s Attorney David Jones

• Grand Forks County Assistant State’s Attorney Carmell Mattison

• Special Agent Tom Irvin, United States Postal Inspection Service

• Special Agent Adam Henney, United States Postal Inspection Service

• Special Agent Mike Buemi, Drug Enforcement Administration – West Palm Beach, FL

• Special Agent Chuck Connelly, Drug Enforcement Administration – Fargo

• Special Agent Guy Gino, Homeland Security Investigations – Portland, Oregon

• France Beauchamp, Canadian Crown Prosecutor – Montreal

• Inspector Marc Grecco, Royal Canadian Mounted Police – Montreal

• Corporal Jacques Theberge, Royal Canadian Mounted Police – Montreal

• Staff Sargeant Joe Tomeo, Royal Canadian Mounted Police – Montreal

• Sargeant Josee Pelletier, Royal Canadian Mounted Police – Montreal

• Corporal Stephan Dufort, Royal Canadian Mounted Police – Montreal

• Constable Karim Mahrady, Royal Canadian Mounted Police – Montreal

"Operation Denial" is an international investigation that was initiated in 2015 after the overdose death of Bailey Henke in Grand Forks, North Dakota. The investigation has resulted in numerous indictments and convictions in federal court in the Districts of North Dakota and Oregon.

North Dakota Defendants

The following defendants, who are each from Grand Forks, have been sentenced in this case:

Ryan Jon Jensen - 240 months (20 years)

Joshua Tyler Fulp – 144 months (12 years)

Kain Daniel Schwandt – 42 months (3 ½ years)

David Todd Noye Jr. – 39 months (3 years 3 months)

Jameson Robert Sele – 36 months (3 years)

Brandon Corde Hubbard of Portland, Oregon, has pled guilty to Conspiracy to Distribute a Controlled Substance Resulting in Death and is currently set for sentencing in Fargo on June 6, 2016.

Ronnie Lee Helms of Acworth, Georgia, and Braden James Foley of Olympia, Washington, have been indicted in this case and are currently scheduled for trial July 5, 2016, in Fargo.

Daniel Vivas Ceron was arrested in Panama City, Panama, on July 17, 2015, and is currently awaiting extradition from Panama.

Oregon Defendants

Steven Fairbanks Locke – Conspiracy to Distribute and Possess with Intent to Distribute a Controlled Substance. Trial set for July 19, 2016.

Channing Lacey – Conspiracy to Distribute a Controlled Substance Resulting in Serious Bodily Injury; Distribution of a Controlled Substance Resulting in Death; Possession of a Controlled Substance with Intent to Distribute. Trial set for July 19, 2016.

Carissa Marie Laprall - Three counts of Distribution of a Controlled Substance Resulting in Serious Bodily Injury and Possession of a Controlled Substance with the Intent to Distribute. Trial set for July 19, 2016.

An Indictment is merely an accusation and defendants are presumed innocent unless proven guilty.

LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Homeland Security Investigations Special Agent in Charge Raymond R. Parmer, Jr., announced today that Raymond Kinney, 54, of Jacksonville, has pleaded guilty to child pornography charges.

Kinney, who was a Transportation Security Inspector for the Transportation Security Administration (TSA) prior to his arrest, pleaded guilty on Tuesday to distribution of child pornography before United States District Judge Susan Webber Wright, who will sentence him at a later date. Kinney was indicted on February 4, 2015. As part of the plea agreement, the parties will jointly recommend a sentence of 20 years, the maximum allowed by law, in exchange for the United States not charging Kinney with additional criminal conduct that was also uncovered in the investigation, including enticement of a minor.

Kinney was arrested in January 2015, after arriving at a motel where he planned to meet a person he thought was a 10-year-old girl. According to online chats that were recovered from his account, Kinney planned to have sex with this minor. A search incident to arrest revealed that Kinney had brought sex toys and children’s clothing with him.

"This defendant planned to sexually abuse a 10-year-old little girl," Thyer said. "Thanks to the work of law enforcement officers, he was not able to follow through with that plan. Fortunately, the minor in this case was actually undercover law enforcement, but online predators will seize any opportunity to take advantage of our children.

"There is no higher priority in my office than protecting the children of Arkansas, and, as I have said many times, parents must be aware of the potential for danger online and monitor their children’s internet activity just as closely as they would monitor them in any other public place."

According to facts read at the hearing, this investigation began in January 2015, when undercover officers monitoring a social networking site encountered an individual seeking a minor for sexual contact. Under the username "luvsyngteengirls," this individual sent several pictures and videos of child pornography over the internet. Kinney admitted that "luvsyngteengirls" was his username. Agents ultimately arranged a meeting at a motel with Kinney using this username, and when Kinney arrived, officers arrested him.

"Today’s guilty plea is a victory and it sends a clear cut message to those who want to take advantage of our children. We will find you and you will be prosecuted to the fullest extent of the law," Parmer, Jr., said. "We are committed to protecting the most vulnerable members of our society. HSI and its local, state and federal partners will continue to work together to put these predators behind bars."

The indictment charges that on or about January 27, 2015, Kinney knowingly distributed child pornography. The statutory penalty for distribution of child pornography is at least five but not more than 20 years of imprisonment, up to a $250,000 fine, and five years of supervised release.

The investigation was conducted by Homeland Security Investigations with substantial assistance from Russellville Police Department. The case is being prosecuted by Assistant United States Attorneys Allison W. Bragg and Kristin Bryant.

St. Thomas, USVI – Chintamkumar Patel, 23, made his initial appearance on Friday, May 20, 2016, before U.S. Magistrate Judge Ruth Miller after being charged in a complaint with using a false document to defraud the United States, United States Attorney Ronald W. Sharpe announced. Patel was released pending further proceedings after a detention and preliminary hearings on Monday.

According to the complaint, on May 19, 2016, Patel appeared at the U.S. Customs and Border Protection (CBP) primary inspection checkpoint at the Cyril E. King Airport, St. Thomas, Virgin Islands, and presented a false New York driver’s license. Patel was a ticketed passenger on an American Airlines flight to the mainland United States.

Under federal law, if convicted of using a false document to defraud the United States, Patel faces a maximum of one year in prison and a $100,000 fine. This case is being investigated by CBP and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Everard Potter.

United States Attorney Sharpe reminds the public that a complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.

SACRAMENTO, Calif. — U.S. Magistrate Judge Carolyn K. Delaney arraigned Paul La, 58, of Sacramento, today on a 10-count indictment charging him with arson of a commercial structure, arson to commit a federal felony, and mail fraud, Acting United States Attorney Phillip A. Talbert announced. 

According to the indictment, on February 6, 2011, La intentionally set fire to Golden Nails & Hair, a salon that he owned at 8335 Folsom Boulevard in Sacramento. La then knowingly lied about the cause of the fire and the extent of his destroyed business property in order to obtain payment from his insurance company. 

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorneys Michael D. Anderson and Amanda Beck are prosecuting the case.

La was arrested on Monday. Following his arraignment today, the court ordered La’s temporary detention. The court will again examine the issue of his detention or release on Thursday, May 26, 2016.

If convicted, La faces a minimum 5 years and a maximum of 20 years in prison for arson to a commercial structure; a consecutive 10 years in prison for arson to commit another felony; and a maximum of 20 years in prison for each count of mail fraud.  Each indictment count also carries a maximum fine of $250,000.  Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

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BOSTON – A Hingham woman pleaded guilty today in U.S. District Court in Boston to defrauding mortgage companies in connection with multiple mortgages she obtained on a single residence. 

Denise Bruce, 56, pleaded guilty to five counts of bank fraud.  U.S. District Court Senior Judge Douglas P. Woodlock scheduled sentencing for Aug. 18, 2016.

Between 2004 and 2008, Bruce fraudulently obtained five mortgage loans from different banks in amounts ranging from $325,000 to $487,500 on her Hingham property by submitting false information regarding her employment history, income, assets, and debt.  Bruce also filed fraudulent discharges of mortgages with the Plymouth County Registry of Deeds to create the appearance that earlier loans had been paid in full, when in fact, none of the loans had been paid.  In total, Bruce obtained $2,129,000 in proceeds from her fraudulent loans. 

United States Attorney Carmen M. Ortiz; Steven Perez, Special Agent in Charge of the Federal Housing Finance Agency, Office of Inspector General, Northeast Region; and Christy Goldsmith Romero, Special Inspector General for the Office of the Special Inspector General for the Troubled Asset Relief Program, made the announcement today.  The case is being prosecuted by Assistant U.S. Attorney Victor A. Wild of Ortiz’s Economic Crimes Unit. 

Following an eight-day trial, a jury before United States District Judge Jose E. Martinez convicted Rafael Duran, a former police officer with the Miami-Dade Police Department (MDPD), of one count of conspiracy to commit wire fraud and seven counts of wire fraud.  Duran had been employed as an officer with the MDPD from May 1994 until March 2016, when the MDPD terminated him following his 2015 indictment in this case.

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge of the Miami Field Office of the Federal Bureau of Investigation (FBI), and Juan J. Perez, Director of the MDPD, made the announcement. 

Duran’s offenses arose out of his use of his position as an officer with the MDPD to facilitate a fraud scheme operating out of a local credit repair company.  The credit repair company would attempt to repair the credit histories and credit scores of its customers by making false claims to the major credit reporting bureaus that its customers had been victims of identity theft.

In 2010, Duran was assigned to as a detective on the MDPD’s Mortgage Fraud Task Force, which was part of the Economic Crimes Bureau.  The evidence at trial showed that between April 2010 and June 2010, Duran wrote 10 offense-incident reports in which he falsely claimed that customers of the credit repair company had reported to him that they had been victims of identity theft.  However, the customers never made the reports, and Duran never met with them.  Moreover, the alleged victims in the reports written by Duran had not been victims of identity theft.  Duran also wrote a false identity theft report for an employee of the credit repair company.

After completing the false police reports, Duran delivered them to the credit repair company, which sent them to the major credit reporting bureaus, along with letters that mirrored the false claims in Duran’s police reports.  As a result of Duran’s false police reports, several customers of the credit repair companies obtained commercial lines of credit which subsequently went into default.

Duran also falsified identity theft reports for both himself and a family member.  However, Duran put those reports in the name of a fellow detective without telling the detective.  Duran delivered the reports to the credit repair company so that it could attempt to remove derogatory items from their credit histories through false claims of identity theft.

Duran had the credit repair company use the false police report in his name to try to remove from his credit repair history a $210,000 mortgage on a condominium in Naples, FL.  The mortgage had not been the product of any identity theft.  Rather, Duran had taken out the mortgage in June 2007 and stopped making payments on the mortgage sometime in 2008. 

Following the verdict, the Court revoked the defendant’s bond and remanded him into custody.  The Court set Duran’s sentencing for July 26, 2016, at 1:30 pm.  Duran faces a maximum sentence per count of twenty years imprisonment and a $250,000 fine.

Mr. Ferrer expressed appreciation for the investigative efforts of the FBI Miami Area Public Corruption Task Force and the Professional Compliance Bureau of the Miami-Dade Police Department.  This case is being prosecuted by Assistant U.S. Attorneys Michael Davis and Ilham Hosseini.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

PROVIDENCE, R.I. – Justice Reyes, 19, of Pawtucket, was ordered detained in federal custody on Wednesday, having been indicted by a federal grand jury on Tuesday on a charge of possession of a firearm with an obliterated serial number.

According to information presented to the court at the time of Reyes’ arraignment before U.S. District Court Magistrate Lincoln D. Almond, it is alleged that on April 1, 2016, an undercover ATF agent bought a .22 caliber semi-automatic rifle from Reyes for $350.  Reyes allegedly specified that the serial number had been obliterated, and that he could get the undercover and the undercover’s associates additional guns with obliterated serial numbers.  The transaction allegedly occurred outside Reyes’s residence, the place where he was to be serving home confinement. 

According to Rhode Island state court records, Reyes was sentenced on March 17, 2016, to one year home confinement for violating a suspended sentence imposed on January 29, 2016, having pleaded nolo contendre to a charge of simple assault domestic.  Reyes began serving his home confinement sentence two weeks prior to allegedly selling the firearm to an ATF agent.

An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.

The matter was investigated by ATF and the Rhode Island AFT Task Force, with the assistance of the Pawtucket Police Department. The Rhode Island ATF Task Force is comprised of law enforcement agents and officers from the Central Falls, Providence and Cranston Police Departments, the Department of Corrections, and the Providence Fire Department.

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Contact:

Jim Martin (401) 709-5357

email: USARI.Media@usdoj.gov

on Twitter @USAO_RI

ALBUQUERQUE – Cecilia Pocasangre, 41, a legal permanent resident from El Salvador, pled guilty today in federal court in Las Cruces, N.M., to a methamphetamine trafficking charge arising out of a 7.5-pound seizure of methamphetamine at a U.S. Border Patrol checkpoint.

Pocasangre was arrested in April 2016, and charged in a criminal complaint with possession of methamphetamine with intent to distribute.  The complaint alleged that Pocasangre committed the crime on April 6, 2016, in Doña Ana County, N.M.  Pocasangre was arrested after U.S. Border Patrol agents at the Border Patrol Checkpoint on Interstate 25 in Doña Ana County found approximately 3.41 kilograms (7.5 pounds) of methamphetamine concealed in Pocasangre’s vehicle during a routine inspection. 

During today’s proceedings, Pocasangre pled guilty to a felony information charging her with possession of methamphetamine with intent to distribute and admitted possessing 3.41 kilograms of methamphetamine, which were found during a routine inspection of her vehicle at a U.S. Border Patrol checkpoint.

At sentencing, Pocasangre faces a statutory minimum penalty of ten years and a maximum of life in federal prison.  A sentencing hearing has yet to be scheduled. 

This case was investigated by the U.S. Border Patrol and the Las Cruces office of the DEA.  Assistant U.S. Attorneys John A. Balla and Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case.