Category: Nevada

RENO, Nev. – A Sparks resident was convicted by a jury on Friday, September 16, for distribution of fentanyl — a deadly synthetic opioid.

After a five-day trial, Jaime Collazo Munoz, aka “Chivo,” (36) was found guilty of two counts of distribution of a fentanyl. Chief U.S. District Judge Miranda M. Du presided over the jury trial and scheduled sentencing for December 16, 2022. Munoz faces a maximum statutory penalty of 40 years in prison. Each count of conviction carries a mandatory minimum sentence of five years in prison.

According to evidence presented at trial and court documents, from July to November 2020, Munoz distributed at least 80 grams of fentanyl in exchange for over $10,000. Munoz distributed the fentanyl pills out of Stay Faded Barbershop in Sparks, Nevada.

U.S. Attorney Jason M. Frierson for the District of Nevada and Assistant Special Agent in Charge Kevin Adams for the Drug Enforcement Administration (DEA) made the announcement.

The case was investigated by the DEA, Washoe County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), United States Marshals Service (USMS), Lyon County Sheriff’s Office, and Regional Narcotics Unit. Assistant U.S. Attorneys Andolyn Johnson and Andrew Keenan are prosecuting the case.

Fentanyl is a synthetic opioid that is 80-100 times stronger than morphine: only a few milligrams of this chemical compound, equivalent to a few grains of table salt, are enough to cause a fatal overdose.

If you have information of a potential violation of controlled substances laws and regulations, including the growing, manufacture, distribution or trafficking of controlled substances, please contact the DEA at https://www.dea.gov/submit-tip.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States, using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

LAS VEGAS – A Las Vegas woman made her initial court appearance yesterday before U.S. Magistrate Judge Brenda Weksler for allegedly trafficking in more than 3,000 counterfeit designer handbags, clothes, and other merchandise which she offered for sale at her beauty supply store.

Amie Kamara (31) is charged with two counts of trafficking in counterfeit goods. A jury trial has been scheduled for November 14, 2022 before U.S. District Judge Cristina D. Silva.

According to allegations made in the indictment, Kamara owned and operated Aminic Beauty Supply in Las Vegas. At the store, she possessed and intended to sell items bearing counterfeit marks that were identical to the genuine trademarks from Louis Vuitton, Chanel, Gucci, and other designer brands.

If convicted, the statutory maximum penalty is 20 years in prison, a term of supervised release, and a monetary fine.

U.S. Attorney Jason M. Frierson for the District of Nevada and Acting Special Agent in Charge Chris Watkins for Homeland Security Investigations (HSI) Las Vegas made the announcement.

The case was investigated by HSI. Assistant U.S. Attorney Jim Fang is prosecuting the case.

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

To report possible violations of intellectual property rights, including counterfeiting, IP Theft and piracy, contact the National IPR Coordination Center, at www.iprcenter.gov/referral/report-ip-theft-form.

LAS VEGAS – A Romanian citizen — who entered the U.S. illegally — was sentenced today by U.S. District Judge Andrew P. Gordon to 42 months in prison followed by three years of supervised release for engaging in ATM skimming fraud scheme.

Marian Poenaru (21) pleaded guilty in April 2022 to one count of conspiracy to possess counterfeit and unauthorized access devices and one count of aggravated identity theft.

According to court documents, Poenaru and his co-conspirators installed and used skimmer devices and pinhole cameras at ATMs to capture users’ account information and PINs. The conspirators then re-encoded gift cards with the stolen bank information so they could make cash withdraws and purchases for their own personal benefit.

On April 25, 2021, Las Vegas Metropolitan Police Department officers arrested Poenaru. A search of his apartment uncovered more than 500 cards that were re-encoded. At least 300 of the counterfeit cards recovered were re-encoded with account information of debit cards issued by the Nevada Department of Employment, Training and Rehabilitation (DETR), which were used to disburse unemployment insurance benefits during the COVID-19 pandemic. During a search of his apartment, law enforcement found a lab used both to create ATM skimming equipment as well as to manufacture counterfeit cards. Additionally, Poenaru admitted that his fraudulent activities in Las Vegas were committed after he and his co-conspirators relocated their fraudulent scheme from another state to evade law enforcement; evidence shows that from 2017 to 2021, Poenaru engaged in ATM skimming fraud across the country, including in Maryland, Virginia, Indiana, Michigan, and Nevada. Poenaru is subject to deportation after the completion of his criminal sentence.

U.S. Attorney Jason M. Frierson for the District of Nevada and Special Agent In Charge Karon Ransom for the U.S. Secret Service made the announcement.

This case was investigated by the U.S. Secret Service and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Jim Fang prosecuted the case.

In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

A Nevada man pleaded guilty yesterday to aggravated identity theft, wire fraud and money laundering. On March 28, he pleaded guilty to a separate indictment charging him with filing false tax returns with the IRS on behalf of clients, aggravated identity theft, wire fraud and impersonating an FBI agent.

According to court documents, King Isaac Umoren, 41, of Las Vegas, owned and operated Universal Tax Services (UTS), a tax preparation business. From 2012 through 2016, Umoren prepared and filed with the IRS tax returns for clients that included false deductions and fictitious businesses, in an effort to generate larger refunds than the clients were entitled to receive. At times, Umoren used the names and IRS preparer tax identification numbers of other UTS employees without their knowledge or consent, making it seem as if they, not he, had prepared the false returns. On Feb. 7, 2016, Umoren posed as an FBI agent, wearing a fake badge and tactical gear, and drove to a client’s house with police lights attached to his vehicle to demand payment of a tax preparation fee. Umoren required his clients to use a refund anticipation check program, which he utilized at times to secretly take fees out of clients’ tax refunds without their knowledge.

In May 2016, Umoren attempted to sell UTS. To induce potential buyers to purchase the company at an inflated price, he provided fraudulent documents — including forged bank statements, fabricated return preparation fee reports, false personal tax returns and other tax forms that had never actually been filed with the IRS — as well as the stolen tax and personal identifying information of approximately 12,000 taxpayers who were not UTS clients. Eventually, Umoren succeeded in inducing a victim to purchase UTS and received more than $3.8 million in the sale. Umoren used the sale proceeds to purchase land in Henderson, Nevada, and an automobile.

Umoren is scheduled to be sentenced on all charges on Nov. 2. He faces a maximum sentence of five years in prison on each count of helping file a false tax return for others, three years in prison for impersonating a federal agent, 10 years in prison for each money laundering count, 20 years in prison on each of the wire fraud counts, and a mandatory minimum sentence of at least two years in prison based on the aggravated identity theft counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jason M. Frierson for the District of Nevada made the announcement.

IRS-Criminal Investigation, the Treasury Inspector General for Tax Administration, and the FBI are investigating the case.

Trial Attorneys Sarah A. Kiewlicz and Patrick Burns of the Tax Division are prosecuting the case.

A federal grand jury in Las Vegas returned an indictment Wednesday charging a Nevada man with using fraudulent checks to steal money from victims’ bank accounts. Michael Zeto, 76, of Las Vegas, is charged in a 20-count indictment with wire fraud, bank fraud and aggravated identity theft. He made his initial court appearance before U.S. Magistrate Judge Cam Ferenbach of the U.S. District Court for the District of Nevada.

According to court documents, Zeto partnered with foreign telemarketers who provided Zeto with the names, bank account numbers and other personal information for American consumers who supposedly had purchased products. These consumers often had not, in fact, agreed to purchase the products and had not authorized anyone to debit their bank accounts.

Zeto allegedly knew that at least one of his telemarketing partners was engaged in fraud, that many of the supposed sales sent by his telemarketing partners were not real sales and that consumers had not authorized debits from their bank accounts. Despite knowing that sales were fraudulent, the indictment alleges that Zeto (using the information provided by his telemarketing partners) created fraudulent checks payable to companies he controlled and arranged to open accounts with banks and payment processors in the United States to deposit the fraudulent checks — thereby taking and attempting to take millions of dollars from victims’ accounts. The indictment also alleges that Zeto knew that many of the victims were older Americans and that he took steps to reduce the likelihood that financial institutions would scrutinize, and possibly close, the bank accounts into which he was depositing the fraudulent checks.

“The defendant is charged with acting as a vital link in a scheme with foreign telemarketing partners to defraud American victims,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department of Justice is committed to protecting older Americans from fraud, including people who knowingly help fraudsters.”

“This indictment reflects our office’s commitment to bring to justice criminals who prey on the elderly,” said Acting U.S. Attorney Christopher Chiou for the District of Nevada. “Working closely with the Justice Department’s Consumer Protection Branch and our law enforcement partners, we will continue to prosecute fraudsters who target seniors and other vulnerable Nevada residents. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the Department of Justice’s National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).”

“Crimes against the elderly target some of the most vulnerable people in society,” said Inspector in Charge Eric Shen of the of the U.S. Postal Inspection Service’s Criminal Investigations Group. “The Inspection Service has been at the forefront of protecting customers from fraud schemes for many years and we will continue to investigate and stop those who exploit older Americans for their own illegal gains.”

“This indictment charges the defendant for his alleged role in a fraudulent check scheme that took and attempted to take millions of dollars from the bank accounts of American consumers,” said Special Agent in Charge Kathy A. Enstrom of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG).  “The FDIC OIG remains committed to working with our law enforcement partners to pursue those who seek to defraud banking customers and threaten the integrity of the banking system.”

If convicted, Zeto faces a maximum term of imprisonment of 20 years for wire fraud and 30 years for bank fraud and a mandatory two-year term of imprisonment for aggravated identity theft. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The U.S. Postal Inspection Service and Federal Deposit Insurance Corporation-Office of Inspector General are investigating the case.

Trial Attorneys Daniel Zytnick and Timothy Finley of the Justice Department’s Consumer Protection Branch and Assistant U.S. Attorney Richard Anthony Lopez of the District of Nevada are prosecuting the case.

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud, and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. Eastern time. English, Spanish and other languages are available.

Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The COVID-19 pandemic has revealed a pervasive issue here in Michigan that operates in the shadows at great cost to residents illegal trade. Whether it involves drugs, people, weapons, cigarettes or a knock-off pair of Adidas shoes, illegal trade is a growing problem exacerbated by COVID-19.

When the pandemic hit, criminals quickly maneuvered to flood the market with fake and inferior personal protective equipment and other COVID-related products. Since the beginning of the pandemic, online counterfeited goods have jumped nearly 40%. The roughly $1 trillion industry of transnational crime facilitated by illegal trade harms everyone and requires a united and collaborative effort to reduce the damage it inflicts on our society.

Here in Michigan, we know that our common border with Canada offers traffickers numerous opportunities. Border access points are frequently misused by drug smugglers. Prime locations like this become major conduits for illegal trade, and more hands need to be working toward stopping the influx of contraband.

Illegal trade and black market goods cause a lot of harm to our state, stealing millions of dollars from tax revenues that could be spent on improving Michigan services like infrastructure and education. For example, data from the Mackinac Center for Public Policy last year showed that Michigan loses more than $207 million in tax revenues each year due to illegal smuggling of tobacco products alone.

This is why we joined United to Safeguard America from Illegal Trade (USA-IT), a partnership of national and state brand enforcement experts, law enforcement agencies and leading business organizations dedicated to educating the public about the dangers of illegal trade.

The coalition is raising awareness in Michigan and other states across the country while leveraging our collective, vast expertise to share resources and provide training programs with local officials, law enforcement and other thought leaders to help combat these insidious acts and the criminals who commit them.

To many, buying smuggled cigarettes or knock-off sneakers may seem like victimless crimes, but they are far from it. The funds these organizations earn by selling black market goods are used to bolster their other nefarious activities. These criminals are the same criminals who traffic in weapons, drugs and even people. We cannot let this criminal activity continue to harm our communities.

As criminal enterprises continue to devise new strategies and practices to evade law enforcement, we must bring more tools to the table to keep pace with black market ingenuity.

This involves sharing knowledge of illegal trade with the public so they are aware of what happens in the shadows, while also working with law enforcement and local governments to target these operations, and empowering lawmakers, organizations and our communities with the tools needed to act.

It is clear there will not be an immediate or easy fix, and no one government or single industry can address this complex problem on its own. When facing such dynamic adversaries, it is important that we always stay prepared for the next challenge.

Through the work of partnerships like USA-IT, we can work toward holding the perpetrators of illegal trade accountable and ensure a more secure and prosperous Michigan.

Dan Papineau is the director of tax policy and regulatory affairs for the Michigan Chamber Of Commerce.

A Nevada man today admitted his role in laundering funds solicited for BitClub Network, a $722 million fraudulent cryptocurrency scheme, U.S. Attorney Philip R. Sellinger announced.

Gordon Brad Beckstead, 57, of Henderson, Nevada, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to an information charging him with one count of conspiracy to commit money laundering and one count of aiding in the preparation of a false tax return.

According to documents filed in this case and statements made in court:

From April 2014 through December 2019, the BitClub Network was a fraudulent scheme that solicited money from investors in exchange for shares of purported cryptocurrency mining pools and rewarded investors for recruiting new investors into the scheme. Matthew Brent Goettsche, BitClub Network’s creator and operator, and Silviu Catalin Balaci, Russ Albert Medlin, Jobadiah Sinclair Weeks, and Joseph Frank Abel, were charged by indictment in December 2019 in connection with the BitClub Network scheme.

Beckstead, a BitClub Network investor, admitted conspiring with Goettsche and others to launder funds earned by Goettsche through his operation of the BitClub Network. At the direction of Goettsche, Beckstead created and controlled various entities that were used by Beckstead, Goettsche, and others to shield Goettsche’s association with the BitClub Network and to disguise income derived by Goettsche through his operation of the BitClub Network.

Beckstead further admitted to controlling bank accounts associated with the entities and directing transfers to and from the accounts exceeding $50 million. Beckstead acknowledged that the transfers were designed to conceal the source of Goettsche’s income, disguise Goettsche’s ownership of certain property and assets paid for with BitClub Network proceeds, and to help Goettsche evade tax reporting requirements. Beckstead also admitted that he and others provided false and misleading information to financial institutions to conceal the source of Goettsche’s income.

Beckstead, a former CPA, also admitted to aiding at least two different tax preparers in the preparation of Goettsche’s false 2017 and 2018 federal tax returns. Beckstead provided the tax preparers with documents and records to assist in the preparation of the returns. Beckstead admitted that he and Goettsche knew the 2017 and 2018 tax returns were fraudulent in that they failed to report more than $60 million in total income earned by Goettsche through his operation of the BitClub Network. This allowed Goettsche to avoid paying more than $20 million in federal income taxes.

The money laundering conspiracy charge to which Beckstead pleaded guilty carries a maximum penalty of 20 years in prison and a fine of $500,000, or twice the value of the property involved in the transaction, whichever is greater. The tax charge to which Beckstead pleaded guilty carries a maximum penalty of three years in prison and a fine of $100,000. Sentencing is scheduled for Aug. 9, 2022.

U.S. Attorney Sellinger credited special agents and task force officers of the FBI Los Angeles Division’s West Covina Resident Agency, under the direction of Assistant Director in Charge Kristi K. Johnson; and special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark, who conducted this investigation under the initiative of the Joint Chiefs of Global Tax Enforcement, with the investigation leading to today’s guilty plea.

Anyone who believes they may be a victim of the BitClub Network may visit www.justice.gov/usao-nj/bitclub. Victims can find more information about the case, including a questionnaire for victims to fill out and submit.

The government is represented by Assistant U.S. Attorneys Anthony P. Torntore and Jamie L. Hoxie of the Cybercrime Unit, and Unit Chief Sarah Devlin and Assistant U.S. Attorney Joseph Minish of the Asset Recovery and Money Laundering Unit, of the U.S. Attorney’s Office in Newark.

A Las Vegas man who distributed methamphetamine and unlawfully possessed a firearm was sentenced today to eight years and two months in prison, to be followed by four years of supervised release.

In August 2021, a federal jury found Donnell Henry (36) guilty of one count of distribution of methamphetamine and one count of felon in possession of a firearm. U.S. District Judge Jennifer A. Dorsey presided over the four-day trial and sentencing hearing.

According to court documents and evidence presented at trial, on October 29, 2019, Henry distributed 50 grams or more of methamphetamine, a Schedule II controlled substance. Three weeks later, on November 19, 2019, he possessed a multi-caliber pistol (and unlawfully sold that pistol). Henry is prohibited by law from possessing a firearm due to prior felony convictions in California state court for first degree burglary and maintaining a place to sell narcotics.

Co-defendant Ozzie Morrison pleaded guilty in May 2021. He was sentenced to two years in prison on August 11, 2021.

Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Patrick Gorman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) made the announcement.

This case was investigated by the ATF, DEA, and Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Melanee Smith and Kimberly Sokolich prosecuted the case.

This case was part of Operation Nora, a joint investigation by the ATF, the Drug Enforcement Administration, and the Las Vegas Metropolitan Police Department’s Central Intelligence Unit, focusing on the Sherwood Forest and Naked City areas in Las Vegas. Operation Nora was conducted as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.

This case was also part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.

Four alleged members of La Mara Salvatrucha (MS-13) have been charged in a federal superseding indictment with a racketeering conspiracy involving multiple murders, kidnappings and burglaries, as well as drug trafficking.

The individuals charged in the superseding indictment are: Luis Reynaldo Reyes-Castillo, 27, aka Molesto; David Arturo Perez-Manchame, 22, aka Herbi, aka Walter Melendez; Joel Vargas-Escobar, 25, aka Mumia; and Alexander De Jesus Figueroa-Torres, 25.

According to court documents, MS-13 is a national and transnational gang composed largely of individuals of Salvadoran or other Central American descent. MS-13 has more than 10,000 members regularly conducting gang activities in at least 10 states and Washington, D.C., with thousands more conducting gang activities in Central America and Mexico. The purpose of the MS-13 enterprise includes preserving, promoting, and protecting the power, territory, and profits of the enterprise through the use of intimidation and violence, including murder, and enriching members and associates of the enterprise through criminal activities, including breaking into houses and stealing firearms, jewelry, cash, and other items of value, and selling narcotics. MS-13 is organized by subsets known as “cliques,” and each clique typically has one or more leaders, commonly referred to as “shot callers.”

The superseding indictment charges alleged members of the Parkview clique operating in Las Vegas, Nevada, with Racketeering (RICO) Conspiracy and multiple counts of murder and kidnapping in aid of racketeering, as well as firearms charges.

“The Criminal Division and our federal, state and local partners are committed to dismantling violent gangs like MS-13,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The violence alleged in the superseding indictment in this case is truly shocking. The murder spree carried out by MS-13 in Las Vegas clearly shows the danger posed by organized street gangs like MS-13.”

“By significantly undermining MS-13’s ability to engage in violence in Las Vegas, the hard work and dedication of our law enforcement partners have made our communities safer,” said Acting U.S. Attorney Christopher Chiou for the District of Nevada. “Our office remains committed to protecting our neighborhoods against gang violence and other criminal activity by prosecuting dangerous transnational criminal organizations like MS-13.”

“Taking violent offenders off the street should send a message to MS-13 members and their associates that violence and murder will not be tolerated in Las Vegas,” said Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Field Office. “Working with our local partners, we are committed to staying in the fight until this plague is purged from our communities.”

Reyes-Castillo and Perez-Manchame are scheduled for their initial court appearance on Tuesday, Aug. 10 before U.S. Magistrate Judge Elayna J. Youchah of the U.S. District Court for the District of Nevada. If convicted, they face a mandatory sentence of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI and Las Vegas Metropolitan Police Department Homicide Bureau are investigating the case.

Trial attorneys Jeremy Franker and Chris Taylor of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Shaheen Torgoley of the District of Nevada are prosecuting the case.

This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation.

An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.