Fugitive Appears in Court; Charged with Narcotics and Firearms Trafficking, Money Laundering, and Criminal Conspiracy

A former Passaic County man who has been a fugitive since 2009 made his initial court appearance Friday, February 8, 2013. The investigation leading to his apprehension was conducted by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the FBI, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

Kujtim Lika, 47, formerly of Passaic County, N.J., appeared in Newark Federal Court Friday, February 8, 2013, to face numerous charges, including narcotics and firearms trafficking, money laundering, interstate transportation of stolen property, and criminal conspiracy.

According to court documents, three years ago, 26 individuals were charged – including Lika – with multiple crimes in connection with an investigation into several loosely connected Balkan criminal enterprises operating throughout New Jersey, New York, Chicago, Philadelphia, Canada, and the Netherlands. The arrests were part of a federal joint operation that began in 2003.

Lika's case was featured on the television program "America's Most Wanted." He was subsequently apprehended May 24, 2012, by the Toronto Police Department/Toronto Task Force in Canada. He had been using the alias, "Dashamir Cela" at the time of his arrest.
He was detained without bail.

The charges and allegations against Lika are merely accusations, and the defendant is considered innocent unless and until proven guilty.

Maryland Man Arrested for 2012 Murder

An Anne Arundel County, Md. man was arrested recently at a New York airport after a warrant was issued charging him with the murder of a Frederick County, Md. man, whose body was found in the trunk of his car last December by a special agent of U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).

Michael A. Stahlnecker, 51, of the 1700-block of Fallsway Drive, Crofton, Md., is charged in the District Court of Maryland for Anne Arundel County with first and second degree murder, first and second degree assault, reckless endangerment, and use of a firearm in the commission of a felony, violent crime.

Stahlnecker was arrested shortly before 6:00 a.m. Feb. 12 by HSI New York and Frederick special agents, the Port Authority of New York and New Jersey and the U.S. Marshals Service, as he prepared to board a flight at the JFK International Airport. Investigators from the Maryland State Police (MSP) Homicide Unit, the State Apprehension Team and the Frederick County Narcotics Task Force were with federal agents and Port Authority Police when the arrest was made. Stahlnecker is currently held on a fugitive warrant in New York pending extradition proceedings to return him to Maryland.

The victim is identified as John P. Ryan, 37, of Frederick, Md., whose body was found in his 2007 Lexus in a parking lot in the 15000-block of Somerville Drive, Derwood, Md., on the afternoon of Dec. 3, 2012. Police had been searching for Ryan since his wife reported him missing to the Frederick Police Department on Nov. 29, 2012.

Since the MSP Homicide Unit became involved with this investigation, investigators have worked closely with the Frederick County Narcotics Task Force. HSI special agents along with task force investigators had initiated an investigation in the summer of 2012 into allegations that Ryan and associates were involved in the importation and distribution of marijuana. Stahlnecker was identified as a close associate of Ryan's in this operation.

MSP homicide investigators believe Ryan had a meeting scheduled with Stahlnecker on the morning of Nov. 28, 2012, at a warehouse leased by the suspect in the 3300-block of Laurel Fort Meade Road, Laurel, Md. A search warrant served at the address resulted in the recovery of Ryan's blood near the rear loading dock and on the bristles of a broom outside the rear of the business.

Investigators believe evidence indicates Ryan was shot at the warehouse location and then driven in his car to the address in Montgomery County where his body was found in the trunk. A motive has not been confirmed at this time, however, investigators determined Stahlnecker owed large amounts of money to several persons.

The investigation is continuing and the case is being prosecuted by the Anne Arundel State Attorney's Office.

Iowa Child Predator Sentenced

An Iowa man was sentenced Thursday, January 31, 2013, to 20 years in federal prison followed by a lifetime of supervised release after he pleaded guilty to two counts of receiving images of child pornography and transmitting obscene material to a minor under the age of 16 years old. 

The sentence resulted from an investigation by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Jupiter Police Department.

According to court documents, Eric Runyan, 31, of Earlham, Iowa, used an online social networking application to contact and initiate a chat with a 9-year-old girl in Jupiter, Fla.

Runyan, using his screen name Hard_n_big2000, asked the victim, "How old u?"
The 9-year-old immediately responded, "10 … Leave me alone."

Runyan continued to chat with the victim and sent the child a picture of his genitals. He then proceeded to ask the 9-year-old to take and transmit sexually explicit images of herself, which she did. When the 9-year-old tried to end the conversation, Runyan sent her threatening text messages, saying that he would ruin the 9-year-old's iPhone. He also threatened to find and kill her.

When the 9-year-old reported the incident to her parents, Jupiter Police Department detectives and HSI special agents were able to determine that the communications originated from Runyan's home.

Runyan was arrested and confessed to his involvement in the crime. He stated that he used his iPod Touch to communicate with the 9-year-old victim, transmit the images of himself to her and receive the sexually explicit images of the child.

This investigation was part of Operation Predator, a nationwide HSI initiative to protect children from sexual predators, including those who travel overseas for sex with minors, Internet child pornographers, criminal alien sex offenders and child sex traffickers. HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-347-2423 or by completing its online tip form. Both are staffed around the clock by investigators.

Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-843-5678.

HSI is a founding member and current chair of the Virtual Global Taskforce, an international alliance of law enforcement agencies and private industry sector partners working together to prevent and deter online child sexual abuse.

Texas Resident Extradited from Mexico for Defense Articles Smuggling

An Eagle Pass, Texas, man appeared Monday, February 4, 2013, in San Antonio federal court following his extradition from Mexico Friday, February 1, 2013, on federal charges of smuggling prohibited defense articles.

This extradition and criminal charges were announced by U.S. Attorney Robert Pitman, Western District of Texas, and Deputy Special Agent in Charge Monica Mapel, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) San Antonio.

A federal grand jury in Del Rio returned an indictment in June 2012 against Erik Alan Garza, 25, on six counts of aiding and abetting smuggling goods from the United States. According to the indictment, on various occasions between June 19, 2010 and Feb. 17, 2012, Garza and an accomplice, Rolando Tamayo, 32, also of Eagle Pass, illegally attempted to smuggle defense articles into Mexico from the United States.

These defense items included: night-vision monocular goggles, a thermal goggle, 400 sets of AR-15 front and rear flip-up tactical sights, about 5,000 high-capacity assault rifle magazines, and about 6,000 rounds of ammunition, including 100 rounds of .50-caliber ammunition.

The indictment also charges Tamayo, who remains a fugitive, with two counts of aiding and abetting the smuggling of goods from the United States. Each charge calls for a maximum sentence of 10 years in federal prison upon conviction.

"Gun and drug trafficking fuels violence by criminal organizations, and threatens the security of the people along our borders and throughout the country," said Mapel. "HSI special agents will continue to work jointly with our law enforcement partners to utilize our expertise in import and export enforcement to help keep our citizens safe and secure."

This case was investigated by special agents with HSI, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Department of Justice Office of International Affairs, and the U.S. Marshals Service assisted with Garza's extradition.

An indictment is merely a charge, and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.

Assistant U.S. Attorney Michael Galdo, Western District of Texas, prosecuted the case. 

Virginia Korean Gang Leader Sentenced to 210 Months for Extortion, Violence, and Organized Crime

Han Sa Yu, 44, a resident of Maryland who is originally from South Korea, was sentenced Friday, February 1, 2013, to 210 months in prison, followed by three years of supervised release, for extorting Korean businesses operating in Annandale, Va. Yu also agreed to pay more than $98,000 in restitution to the victims of his extortion. The case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) Washington, D.C. and assisted by the Fairfax County Police Department.

Yu pleaded guilty to conspiracy to commit extortion on Nov. 9, 2012, and was sentenced Friday, February 1, 2013. Yu founded the Korean Night Breeders (KNB) to carry out extortions of various businesses in Annandale. The KNB targeted businesses owned by persons of Korean descent and frequently sought out businesses that employed illegal aliens.

"HSI (Washington, D.C.) is committed to working with our law enforcement partners to combat violent gangs who prey upon those in our communities," said Special Agent In Charge John P. Torres. "Today's sentencing of Yu sends a message that extortion, especially under the threat of violence, will not be tolerated. HSI (Washington, D.C.) will continue to identify, investigate and dismantle gangs who are a threat to public safety."

The KNB also sought out Korean taxi drivers, karaoke bars, restaurants and billiard halls to extort cash. Many business owners were assaulted and others threatened in an effort to instill fear in their victims.

The gang members frequently would dress in black suits, which became their recognized uniform. They would surround an extortion victim to further instill fear and implicitly threaten victims. From one victim alone KNB extorted more than $30,000. Various restaurants in Annandale either paid extortion or provided free food and drink to the gang.

Yu, also known as "Thunder" and "Bungay," modeled the gang after Asian organized crime syndicates. He sometimes would hold weekly meetings where the gang would discuss potential victims, and Yu would teach fighting techniques and his extortion protocol. The size of the gang varied over time, but at times had 15 or more members. Yu and his gang used the extortion proceeds to purchase marijuana and cocaine, among other things.

Assistant U.S. Attorney Michael J. Frank and Special Assistant U.S. Attorney Marc J. Birnbaum prosecuted the case on behalf of the United States.

This investigation was part of HSI's Operation Community Shield initiative. Operation Community Shield partners with existing federal, state and local anti-gang efforts to identify violent street gangs and develop intelligence on gang members and associates, gang criminal activities and international movements to arrest, prosecute, imprison and, or deport transnational gang members. HSI's National Gang Unit's goal is to deter, disrupt and dismantle gang operations by tracing and seizing cash, weapons and other assets derived from criminal activities.

Since the inception of Operation Community Shield in February 2005, HSI special agents working in conjunction with federal, state and local law enforcement agencies nationwide have arrested more than 29,366 street gang members and associates linked to more than 2,300 different gangs. At least 40 percent of those arrested had a violent criminal history. More than 374 of those arrested were gang leaders. Through this initiative nationally, HSI has seized 4,137 firearms. 

California Men Charged with Wire Fraud and Bribery

Federal prosecutors filed criminal charges Monday, January 28, 2013, against the CEO of an Orange County electronic components company who paid kickbacks for years to ensure contracts for his firm, and against an official with Panasonic's American subsidiary who accepted the bribes.

The two men charged Monday, January 28, 2013, with "honest services" wire fraud are William McMahon, 47, of Norco, the CEO and co-owner of Trustin Technology, and Sean Volin, 38, of Oakland, New Jersey, a manager with Panasonic Corporation of North America in Secaucus, New Jersey.

In addition to criminal informations filed in U.S. District Court, prosecutors filed plea agreements in which both men admitted their criminal conduct and agreed to cooperate in the ongoing probe conducted by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the FBI.

According to court documents, for the past decade, Trustin sold RAM modules and hard drives to Panasonic – Trustin's largest and most important customer – for use in at least one line of laptop computers.

Approximately 10 years ago, Volin approached the then-CEO of Trustin to discuss a price reduction for hard drives Trustin was supplying to Panasonic. In response, the then-CEO proposed a kickback scheme in which Panasonic would continue to pay the same price for hard drives, but Trustin would give Volin half of the proposed price reduction for each unit sold. 

Volin "agreed with the former CEO's proposal, did not obtain a price reduction for Panasonic, and a stream of illicit payments between Trustin and Volin began," according to Volin's plea agreement.

McMahon became CEO of Trustin in 2005, and he learned of the kickback arrangement that had already paid more than $100,000 to Volin. The payments stopped under McMahon's watch for a period of time, but resumed as McMahon's relationship with Volin developed. Instead of paying a kickback for each hard drive sold to Panasonic, McMahon made regular payments in exchange for Volin "looking out for Trustin's interests and as a reward for his prior assistance to Trustin," according to Volin's plea agreement.

From November 2005 through the end of 2011, McMahon oversaw payments of more than $555,000 that went to a company Volin had established to accept the illicit payments from Trustin. In total, Volin was paid more than $664,900 by Trustin. Volin and McMahon also admitted in the court documents that Volin received other benefits, including trips to the Kentucky Derby and Napa Valley.

"In exchange for this stream of payments, and acting with the intent to defraud Panasonic of Volin's duty of honest services, Volin continued to assist Trustin in obtaining additional business from Panasonic, resulting in Panasonic's designating Trustin a 'master vendor,' according to court documents, which say that as a result of the scheme "Trustin was able to obtain tens of millions of dollars of business from Panasonic."

McMahon and Volin will be summoned to appear in federal court in Orange County in February. The wire fraud charge alleged in the two cases filed Monday, January 28, 2013, carries a statutory maximum penalty of 20 years in federal prison.

Panasonic Corporation of North America fully cooperated with the government's investigation.

ICE and CBP's "Operation Red Zone" Seizes $13.6 Million Worth of Counterfeit NFL Merchandise

Speaking at a National Football League (NFL) news conference Thursday, January 31, 2013, U.S. Immigration and Customs Enforcement (ICE) Director John Morton and NFL Vice President for Legal Affairs Anastasia Danias announced the record-breaking results of a nationwide enforcement operation. The initiative, dubbed 'Operation Red Zone,' commenced Sept. 1, 2012, and targeted international shipments of counterfeit merchandise as it entered the United States. Authorities targeted warehouses, stores, flea markets, online vendors and street vendors selling counterfeit game-related sportswear and tickets throughout the country.

Fake jerseys, ball caps, T-shirts, jackets and other souvenirs are among the counterfeit merchandise and clothing confiscated by teams of special agents and officers from ICE's Homeland Security Investigations (HSI), U.S. Customs and Border Protection (CBP), U.S. Postal Inspection Service, and state and local police departments around the country - all in partnership with the NFL and other major sports leagues.

"The Super Bowl is one of the nation's most exciting events. Organized criminals are preying on that excitement, ripping consumers off with counterfeit merchandise and stealing from the American businesses who have worked hard to build a trusted brand," said Morton. "The sale of counterfeit jerseys and other sports items undermines the legitimate economy, takes jobs away from Americans and fuels crime overseas. No good comes of counterfeiting American products - whether NFL jerseys, airbags, or pharmaceuticals - and we must go after the criminals behind it."

'Hard goods' seizures

Special agents from HSI and officers with CBP operated in multiple teams with the NFL and law enforcement agencies throughout the nation to identify illegal shipments imported into the U.S., as well as stores and vendors selling counterfeit trademarked items. With only days left before Super Bowl XLVII, these teams have already seized more than 160,000 items of phony Super Bowl-related memorabilia along with other counterfeit items for a total take of more than $13.6 million. Due to the increased activity of counterfeiting operations around the world, this year the operation began Sept. 1, 2012, and will continue through Feb. 6, 2013.

"We're delighted to once again partner with federal law enforcement to help combat the influx of counterfeit merchandise," said Danias. "We are grateful for their tireless efforts to keep counterfeiters from illegally profiting off of the fans' enthusiasm for their team and the Super Bowl and from hurting the local businesses that play by the rules."

"In collaboration with the NFL and our (Department of Homeland Security) partners, we are providing critical support in the effort to protect consumers from counterfeit goods," said Robert C. Gomez, director of field operations in Atlanta and New Orleans for CBP. "The enforcement of iintellectual property rights is a national agency priority, and our CBP officers and import specialists are actively working to intercept these products. Counterfeit merchandise hurts our economy and, in many cases, presents safety issues. It is a potential source of funding illegal activities that present a threat to our national security."

Arrests

In September 2012, HSI Boston - assisted by HSI Providence - executed a search warrant at a residence in Warwick, R.I. HSI seized 226 boxes of counterfeit goods containing 4,016 sports jerseys with a manufacturer's suggested retail price (MSRP) of $724,340 and approximately $477,000 worth of additional counterfeit goods, as well as $130,057 in U.S. currency and checks. The owner of the home was subsequently arrested and is currently facing federal charges of trafficking in counterfeit goods and smuggling.

In November 2012, HSI Indianapolis special agents responded to a call from Indiana State Fairgrounds Security that an individual at the Indianapolis International Fest was selling items suspected to be counterfeit. Upon arriving at the festival, the special agents were able to verify the goods to be counterfeit and seized 1,319 counterfeit sports ball caps from the individual with an MSRP of $30,095 and approximately $7,600 worth of additional counterfeit goods. HSI arrested the man for illegally trafficking in counterfeit merchandise. 

Twenty-one other individuals were arrested in partnership with state and local law enforcement
agencies on state charges at locations around the country.

Website seizures

Furthering HSI's efforts to combat the international counterfeiting supply chain and piracy online, special agents seized a total of 313 websites identified to be selling counterfeit merchandise.

The website seizures during Operation Red Zone are the next iteration of Operation In Our Sites, a long term law enforcement initiative targeting counterfeiting and piracy on the Internet. The 313 websites have been seized by law enforcement, and are now in the custody of the federal government. Visitors to these websites will find a seizure banner that notifies them that the domain name has been seized by federal authorities and educates them that willful copyright infringement is a federal crime. Since the launch of Operation In Our Sites in June 2010, the ICE HSI-led Intellectual Property Rights (IPR) Center has seized a total of 2,061 domain names.

HSI has continued to work closely with payment processor PayPal to identify bank accounts being used to facilitate the transfer of money to these illegal operations. To date, PayPal and HSI have identified and seized more than $66,000 in assets in these accounts.

"PayPal and eBay Inc. pride ourselves in going above and beyond in the fight against the illegal online trafficking of counterfeit goods by partnering with law enforcement and rights owners globally, and as part of providing safe and trusted payments and commerce platforms," said Tod Cohen, eBay's vice president and deputy general counsel of government relations.

Operation Red Zone continues

Operation Red Zone will continue this weekend at the Super Bowl, throughout the New Orleans-area and around the nation.

The operation was spearheaded by the IPR Center in coordination with the Department of Justice's Computer Crime and Intellectual Property Section and five U.S. Attorneys' Offices, including the District of Maryland, District of New Jersey, District of Colorado, Eastern District of Louisiana and the District of Utah.

The IPR Center is one of the U.S. government's key weapons in the fight against criminal counterfeiting and piracy. Working in close coordination with the Department of Justice Task Force on Intellectual Property, the IPR Center uses the expertise of its 21 member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to intellectual property theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety and the U.S. economy.

New Jersey Men Arrested for Distributing Counterfeit Viagra

Two New Jersey men were arrested Wednesday, January 23, 2013, in North Bergen, N.J., for distributing 9,600 pills of counterfeit Viagra. The counterfeit Viagra had a suggested retail price of $130,000. This case is being investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Hudson County (N.J.) Sheriff's Office.

Yousef M. Awawda, 34, of West New York, N.J., and Abdul J. Kazan, 27, of Haledon, N.J., were arrested for selling counterfeit Viagra. Both individuals are being charged with possession and trafficking of counterfeit pharmaceuticals.

On Jan. 23, HSI special agents along with Hudson County detectives conducted an operation in which Awawda allegedly sold counterfeit Viagra pills to an undercover officer. At the time of his arrest, Awawda was in possession of 9,600 counterfeit Viagra pills.

Subsequent to Awawda's arrest, HSI special agents and detectives arrested Kazan, who was Awawda's alleged supplier.

Both men are detained on a $100,000 bond.

HSI Seizes $100,000 of Counterfeit Goods

U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) seized more than $100,000 of counterfeit cosmetics, designer handbags and electronics after executing a search warrant at a Conway home Jan. 16, 2013. The U.S. Postal Inspection Service and the Conway Police Department assisted HSI with the investigation leading to the seizure.

"Counterfeit products cost law-abiding Americans their jobs and allow criminals to fund illegal activities with black market sales," said Special Agent in Charge of HSI New Orleans Raymond R. Parmer Jr. "Counterfeit cosmetics are a particular danger to the public because of the potential to ingest harmful substances that might be present in an unregulated product."

 Parmer oversees a five-state area of responsibility including Arkansas, Alabama, Louisiana, Mississippi and Tennessee.

HSI Little Rock began its investigation after receiving information from the U.S. Postal Inspection Service regarding multiple suspicious packages addressed to Vanchello Craig, 33, originating from overseas. On Oct. 22, HSI Little Rock subsequently found two parcels containing counterfeit items in Craig's home during a consensual search of the premises.

On Jan. 14, HSI Little Rock learned Craig was the recipient of another suspicious package. HSI conducted an inspection of the parcel pursuant to its border search authority and discovered additional counterfeit items destined for Craig.

Texas Child Predator Sentenced for Enticing a Minor

A south Texas man was sentenced Wednesday, January 23, 2013, to 11 years and three months in federal prison for enticing a minor, announced U.S. Attorney Kenneth Magidson, Southern District of Texas.

This case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), with the assistance of the Pharr Police Department (PD).

Teofanes Salas-Campos, 40, Mission, Texas, was sentenced by U.S. District Judge Randy Crane to 135 months in prison. He pleaded guilty Sept. 17, 2012 that he intended to have sex with a minor for money. After he completes his prison term, Salas-Campos will also serve a five year term of supervised release, and will be required to register as a sex offender.

During Wednesday's court hearing, evidence presented indicated that Salas-Campos had taken a photograph of the victim on her cell phone which showed sexually explicit conduct. The sentence was enhanced because the minor victim was only 14 years old at the time, and because there was a commission of a sex act.

According to court documents, in April 2012, Pharr PD contacted HSI concerning the solicitation of a minor for sexual purposes. Special agents recovered a cellular telephone that was being used by a 14-year-old girl to receive messages from men requesting sex in exchange for money. Posing as the minor, special agents began conversing with the unknown men via text messages on the cellphone.

During this investigation, two others were arrested and charged separately with enticing a minor. Felipe de Jesus Ponce-Torres, 24, of Mexico, previously pleaded guilty before U.S. District Court Judge Micaela Alveraz who sentenced him in November 2012 to 10 years in prison. Jose Luis Garcia-Saldivar, 28, also of Mexico, pleaded guilty before Chief U.S. District Court Judge Ricardo H. Hinojosa, and will be sentenced May 9.

In their respective guilty pleas, all three men admitted they intended to have sex with an individual whom they believed was a minor, and that they were going to pay the minor between $80 and $100.

All three men have been and will remain in custody.

Assistant U.S. Attorneys Kimberly Ann Leo and Juan Villescas, Southern District of Texas, prosecuted this case.

Indiana Man Sentenced for Child Exploitation

A man from Indiana was sentenced Tuesday, January 22, 2013, to serve 34 years and four months in federal prison for attempted coercion and enticement (to engage in unlawful sexual activity with a minor child), and distributing child pornography.

This sentence was announced by U.S. Attorney John Walsh, and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Kumar Kibble.

Following his prison sentence, Steven Raines, 35, of Fort Wayne, Ind., was also ordered by U.S. District Court Judge R. Brooke Jackson to serve a life time on supervised release. Raines appeared at the hearing in custody, and was remanded immediately after.

Raines was first charged by Criminal Complaint July 2, 2012. He was indicted by a federal grand jury in Denver July 9. He pleaded guilty Oct. 24. And he was sentenced Jan. 22.

According to the stipulated facts contained in the plea agreement, on April 1, 2012, an HSI special agent based in Glenwood Springs, Colo., was chatting online in an undercover capacity. Specifically, the special agent's undercover persona was that of a single mother of two daughters under the age of 16. The undercover special agent (undercover) entered a chat room, accessible by anyone, whose topic focused on sex with children. While in the chat room, the undercover engaged in a chat with an individual who expressed interest in having sex with the undercover and her two minor children. The individual went on to say that he had been searching for 20 years for someone like the undercover who would provide sexual access to her children, and that he discovered that he was a "pedo" when he was 15. He also said that he had been previously accused of molesting a child to whom he had access, and that he previously attempted to meet someone like the undercover in person, but the person failed to show up.

The individual continued chatting and emailing with the undercover by using his smart phone for the next three months. He told the undercover that he did not have a computer. Eventually investigators identified the individual as 35-year old Steven Raines, who lived in Fort Wayne, Ind. As the chats between Raines and the undercover progressed, Raines began to send pictures, some of which depicted child pornography. Eventually Raines and the undercover began to make plans for him to travel to Colorado in order to have sex with, or rape, the two young girls. The defendant's main interest, however, was the child who was under the age of 6. He discussed wanting to father a child with the undercover. Raines also discussed other children he knew from church or his neighborhood, in whom he had a sexual interest and with whom he attempted to have some sort of contact.

As the travel plans were finalized, Raines stated that he was going to bring his child pornography collection with him to Colorado in order to "teach" the girls, and stated an interest in producing child pornography with the undercover and the two minor girls. The content of the child pornography he was bringing featured mostly prepubescent females engaged in sexual acts and included sadistic or masochistic conduct. During the communications between Raines and the undercover, he made statements about both of his children, and about sexually molesting a minor child to whom he had access, and that he produced images of child pornography of him sexually abusing that child.

The defendant began his travel to Colorado June 29, 2012. He sent texts to the undercover throughout the trip. On June 30, near Topeka, Kan., the defendant's van broke down. He rented a vehicle to complete his journey. On June 30, the defendant arrived at a residence in Garfield County, Colo., which was the address provided to him by the undercover. After arriving, he was taken into custody. Special agents and officers seized Raines' cell phone, which has the capacity to take photographs and video. The phone contained about 130 still images and 84 videos of child pornography. During a lawful search of Raines' home, special agents and officers found various discs containing child pornography. The National Center for Missing & Exploited Children identified 23 known series of child pornography featuring real child victims among the images the defendant had on his cell phone and in his email.

"Sexually exploiting children carries extraordinarily severe penalties - decades in federal prison, followed by a life term of supervised release," said U.S. Attorney John Walsh. "It is a top priority of the U.S. Attorney's Office and the Department of Justice to protect children by prosecuting predators such as Raines."

"This significant prison sentence removes another child predator from the streets for decades to come, which helps protect children everywhere," said Kumar C. Kibble, special agent in charge of HSI Denver. "Unfortunately, there are many predators like Steven Raines who pretend to lead normal lives. But our HSI special agents, partnering with other law enforcement agencies, go to extraordinary lengths to help protect and rescue these child victims, while also targeting and prosecuting those who prey on them."

This case was investigated by HSI and the Garfield County Sheriff's Office. HSI Indianapolis and the U.S. Attorney's Office in Fort Wayne, Ind., also played an important role in this investigation and prosecution.

Raines was prosecuted by Assistant U.S. Attorneys Michelle Heldmyer and ICE Special Assistant U.S. Attorney Lillian Alves, with support from Assistant U.S. Attorney Alecia Riewerts Wolak.

This investigation was part of Operation Predator, a nationwide HSI initiative to protect children from sexual predators, including those who travel overseas for sex with minors, Internet child pornographers, criminal alien sex offenders and child sex traffickers. HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-347-2423 or by completing its online tip form. Both are staffed around the clock by investigators.

Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-843-5678.

HSI is a founding member and current chair of the Virtual Global Taskforce, an international alliance of law enforcement agencies and private industry sector partners working together to prevent and deter online child sexual abuse.

Seattle Company Indicted for Conspiracy to Traffic Counterfeit Goods

A Lynnwood electronics company, a China-based manufacturer and four individuals were indicted by a federal grand jury Thursday, January 17, 2013, for conspiracy to traffic in counterfeit goods, following a probe by the Seattle-Tacoma Border Enforcement Security Task Force (BEST), including U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).

ConnectZone.com, LLC, its owner Daniel Oberholtzer, 50, of Lynwood, sales manager Warren Lance Wilder, 46, of Auburn, and production manager Edward Vales, 31, of Seattle, are alleged to have sold counterfeit network products bearing the trademark of Cisco Systems through their online store. They falsely advertised the knockoffs as genuine and offered them for sale at a much lower price than genuine Cisco products. Through the investigation, authorities learned the U.S.-based conspirators were responsible for arranging the manufacture of the counterfeit goods through Mao Mang, aka "Bob Mao," a representative for Shenzhen Xiewei Electronic, LTD of Shanghai, China. Both Mang and the company are also named in the indictment.

In addition to HSI, the other members of BEST that played a prominent role in the case included the Seattle Police Department, the Port of Seattle Police Department, with additional assistance provided by U.S. Customs and Border Protection Office of Field Operations (CBP OFO).

"Counterfeiting high dollar goods can be very lucrative for enterprising criminals," said Brad Bench, special agent in charge of HSI Seattle. "Their illicit activities ultimately come at the expense of trademark owners and consumers. They don't contribute to research and development, and the knockoffs they sell generally don't match the quality and safety of genuine items."

The indictment alleges that Oberholtzer, Wilder and Vales would advise Mao and Xiewei Electronic, and other Chinese firms on how to manufacture products to look like genuine Cisco trademarked goods. In an attempt to evade U.S. customs officials, merchandise would be labeled "samples" when shipped to the United States. The indictment describes the various emails sent between the conspirators as they ran their scheme, including discussions on how to reverse-engineer products. In addition to the conspiracy count, the indictment also charges two counts of mail fraud and four counts of trafficking in counterfeit goods. Prosecutors believe Oberholtzer has been distributing counterfeit equipment from China since at least 1997.

"Protecting the intellectual property of American companies is critical to job growth and economic recovery – especially in our high tech industries," said U.S. Attorney Durkan. "I commend the dedicated investigators who uncovered this scheme."

Conspiracy to traffic in counterfeit goods is punishable by up to 10 years in prison and a $2 million fine. Mail fraud is punishable by up to 20 years in prison and trafficking in counterfeit goods is punishable by up to 10 years in prison. The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

BEST Seattle is comprised of full time members from HSI; CBP OFO; the U.S. Secret Service; the Port of Seattle Police Department; the U.S. Coast Guard Investigative Service; and the FBI. BEST Seattle investigates smuggling and related crimes and combats criminal organizations seeking to exploit vulnerabilities at the Seattle and Tacoma seaports and adjacent waterways. 

The case is being prosecuted by the U.S. Attorney's Office for the Western District of Washington.

Operation Concord Arrests 30 Boston Gang Members for Drug and Firearms Charges

Over 300 federal, state and local law enforcement officers carried out arrests and executed search warrants early the morning of Thursday, January 17, 2013, in Operation Concord, a large-scale collaborative investigation into the violence and distribution of drugs by the Hendry Street and Woodward Avenue gangs and their associates who terrorized residents in the Bowdoin-Geneva section of Dorchester, Mass., and the Uphams Corner section of Roxbury, Mass. U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) was an integral part of the operation, working alongside their federal, state and local law enforcement partners in arresting these gang members.

"This effort shows our collective resolve in Boston and the Commonwealth to attack and dismantle these dangerous street gangs," said Bruce M. Foucart, special agent in charge of HSI Boston. "For too long, gangs here and elsewhere have used violence and intimidation to hold communities hostage. As this operation shows, now it's the gang members who have something to fear."

"This community has been in desperate need of reprieve from the violence. We hope the arrests and prosecution of the defendants will quiet the streets and improve the quality of life for all residents," said U.S. Attorney Carmen M. Ortiz, District of Massachusetts.

"Today is a great day for the hardworking people of Bowdoin-Geneva and Uphams Corner," said Boston Mayor Thomas M. Menino. "Thanks to their help, and the help of our law enforcement partners, drugs have been taken from our streets, and these violent individuals who profit from harming others will no longer terrorize our neighborhoods."

Teams of law enforcement arrested a total of 27 people on Thursday, January 17, 2013:

• Twenty-five from the local area;
• One from California; and
• One from Maine.

Two other defendants are already in custody on federal supervised release violations and one remains a fugitive. Search warrants were executed at 12 locations.

As stated in court documents, the investigation, which involved controlled drug purchases, surveillance and a wiretap, began in the summer of 2011. It is alleged that the defendants have been involved in gang, gun and drug activity in the Bowdoin-Geneva corridor or other areas of Dorchester and Roxbury at the direction of Alexis Hidalgo, 31, of Dorchester, and Jonathan DaSilva, 29, of Roxbury. Wiretap evidence was a crucial component of the investigation and provided investigators with information regarding the alleged partnership between Hidalgo, alleged leader of the Hendry Street gang, and DaSilva, alleged leader of the Woodward Avenue gang.

Hidalgo and DaSilva are alleged to be responsible for the distribution of kilos of crack cocaine and thousands of oxycodone pills throughout greater Boston, as well as hundreds of pounds of marijuana, which they branded as high-grade and sold for up to $5,200 a pound. In a wiretap recording, a "mother-load" shipment of drugs was described in a call intercepted between Hidalgo and his associate. It is alleged that Hidalgo responded by saying, "You just got us indicted bro. If they are listening, I sell weed man."

"From the Berkshires to Cape Cod, the FBI and our law enforcement partners actively analyze and investigate hot spots of gang activity in Massachusetts. As a result, we have concluded several lengthy gang investigations over the past year like today's, which targets the Hendry Street and Woodward Avenue gangs," said Richard DesLauriers, special agent in charge of the FBI, Boston Field Division. "Because of today's multiple arrests, neighborhoods in Boston and several surrounding cities and towns are safer now than they were mere hours ago. Our unified law enforcement goal is to eradicate the scourge of gang activity which adversely impacts the safety of our communities."

"This case demonstrates, working with our law enforcement partners, we are keeping the pressure on violent criminals involved in the drug trade," said Boston Police Commissioner Ed Davis. "We will not tolerate these defendants and others like them from terrorizing our neighborhoods. We are committed to rooting out the bad actors who make our communities unsafe."

 "The Massachusetts Department of Correction is committed to working with other criminal justice agencies in a joint effort to ensure public safety," said Luis S. Spencer, commissioner of the Massachusetts Department of Correction.

U.S. Marshal John Gibbons said, "The success of this investigation demonstrates the excellent working relationships the federal government shares with its state and local partners."

Special thanks to Suffolk (Mass.) District Attorney Daniel Conley and members of his office and the numerous local law enforcement agencies who provided substantial cooperation and assistance throughout the course of the investigation and during the execution of the arrests and searches Thursday, January 17, 2013.

HSI Arrests Identity Illegal Jamaican National for Aggravated Identity Theft

Cory Howard was living in North Carolina in 2011. While reviewing his credit report, he realized that an unknown person in the state of Florida had opened a Wells Fargo bank account using his personal information. After doing some investigating, Howard learned that the bank account was associated with a Tampa, Fla., address, and he contacted the Tampa Police Department for assistance.

A Tampa Police Department detective embarked on an investigation. Using ATM transaction videos and the address associated with the Wells Fargo bank account, she tracked down Howard's impersonator via a traffic stop. The driver, however, did not present a Florida driver's license bearing Howard's information. Instead, he presented a Florida license indicating that his name was Miguel Cruz. When the detective analyzed both licenses, the images on the licenses bearing both Cruz and Howard's name appeared to be the same person. The driver of the vehicle also appeared to be the same person in the ATM videos.

But was this individual really Cruz?

The detective didn't believe so, and that's why she reached out to Tampa's Homeland Security Investigations (HSI) special agents. HSI special agents are highly trained to identify document and benefit fraud.

"Our special agents didn't leave one stone unturned, searching immigration records and working with law enforcement entities in Jamaica and the U.S. Virgin Islands to identify the impersonator," said HSI Tampa Special Agent in Charge Sue McCormick.

After comparing arrest records and fingerprint samples, the HSI special agents determined that the impersonator was actually Lynval Thompson, a Jamaican national who was illegally residing in the United States.

On Friday, January 11, 2013, Thompson was sentenced to two years in federal prison and one year of supervised release for aggravated identity theft. He will be deported to Jamaica after he completes his prison sentence.

How do you protect yourself from identity theft?

·                             Shred paperwork with personal identifying information before discarding.

·                             Be aware of your surroundings at ATMs. Protect your PIN and account numbers.

·                             Do not enter your credit card number on the Internet (unless you are using a secure site).

·                             Monitor your credit report and bank account statements.

·                             Do not provide personal information to people you do not know. 

Social Security Employee Charged with Viewing Child Pornography at Work

A 49-year-old federal employee from Lynnwood made his initial appearance in federal court Wednesday, January 9, 2013, on child pornography charges following his arrest at the Social Security Administration's (SSA) Office of Disability Adjudication and Review in Seattle.

Thomas Joseph Barrett, a senior case technician with the SSA, is accused of using his government computer to view child pornography. According to the complaint filed in the case, the SSA obtained evidence of inappropriate Internet use during work hours by the defendant in November 2012. A review of Barrett's Internet history and an examination of his computer's hard drive produced evidence that he had viewed child pornography. Investigators also found that he had accessed news stories about the penalties for possessing and distributing child pornography. Barrett has been placed on indefinite leave by the SSA.

The case is being investigated by the SSA's Office of the Inspector General, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Washington State Patrol. The U.S. Attorney's Office for the Western District of Washington is prosecuting.

Accessing child pornography with intent to view is punishable by up to 10 years in prison and a $250,000 fine. The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

This investigation was part of Operation Predator, a nationwide HSI initiative to protect children from sexual predators, including those who travel overseas for sex with minors, Internet child pornographers, criminal alien sex offenders and child sex traffickers. HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-347-2423 or by completing its online tip form. Both are staffed around the clock by investigators.

Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-843-5678.

HSI is a founding member and current chair of the Virtual Global Taskforce, an international alliance of law enforcement agencies and private industry sector partners working together to prevent and deter online child sexual abuse. 

Washington Methamphetamine Dealer Sentenced for Drug Trafficking

A Snohomish County methamphetamine dealer was sentenced to nine years in prison and five years of supervised release for conspiracy to distribute controlled substances and counterfeiting.

The Organized Crime and Drug Enforcement Task Force (OCDETF) investigation designated "Operation Black ICE" was led by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI); the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Snohomish Police Department.

Christopher Frick, 38, was arrested in March 2012 and pleaded guilty October 2012 to the charges. Court records say Frick came to the attention of authorities in 2011 when they caught him on court authorized wiretaps arranging drug deals during the investigation of the Berrelleza-Verduzco drug trafficking organization.

At the time, Frick was already being investigated by the U.S. Secret Service for using a counterfeit $50 bill that he made by altering a $5 bill. A search of his Monroe, Wash., residence following his arrest turned up methamphetamine and counterfeit U.S. currency. According to prosecutors, Frick has more than 30 prior convictions, ranging from burglary and drug possession to vehicle theft and forgery and fraud.

Operation Black ICE resulted in 34 indictments, and the seizure of more than 20 pounds of heroin, more than 30 pounds of methamphetamine, nearly $200,000 and 31 firearms - including 10 assault rifles. Frick is one of the first defendants in this case to plead guilty and be sentenced. The others are scheduled for trial later this year.

The investigation was assisted by OCDETF member agencies, including the Seattle, Lake Stevens, Everett, Monroe and Marysville police departments; the Eastside Narcotics Task Force; the Snohomish Regional Drug Task Force; the Skagit County Inter-local Drug Enforcement Unit; the Snohomish County Sheriff's Department; the Washington State Patrol; and U.S. Customs and Border Protection's Offices of Field Operations and Border Patrol. The case is being prosecuted by the U.S. Attorney's Office for the Western District of Washington. 

Mexican National Arrested After Drug Dog Finds Smuggled Narcotics

A Mexican national woman faces federal criminal charges after a drug-sniffing canine alerted on dog food bags in her vehicle which were subsequently found to contain more than 50 pounds of methamphetamine.

America Alejandra Quintana, 26, was arraigned in Fresno Wednesday, January 9, 2013, on federal methamphetamine trafficking charges and pleaded not guilty. She was indicted Jan. 3 on one count of possession with intent to distribute methamphetamine. Quintana's next court date is Feb. 19.

According to court documents, on Dec. 10, 2012, Quintana was stopped for a traffic violation in Madera County and a drug detection dog alerted on the dog food bags. Inside, investigators discovered 52 plastic bags each containing about one pound of methamphetamine. Quintana was arrested on state charges, which were dropped following the issuance of the federal indictment.

This case is the product of an investigation by the Fresno Methamphetamine Task Force, including U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the California Highway Patrol and the California Department of Justice. Assistant United States Attorney Melanie L. Alsworth is prosecuting the case.

If convicted, Quintana faces a maximum statutory penalty of life in prison and a $10 million fine. 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, and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

British National Sentenced for Attempting to Export Military Equipment to Iran

A British businessman was sentenced Wednesday, January 9, 2013, to 33 months in federal prison for attempting to export to Iran a special component of the Hawk Air Defense Missile. The case was investigated by U.S Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).

British businessman Christopher Tappin, 66, of Orpington, Kent, was sentenced Jan. 9 to two years and nine months in federal prison.

In addition to the prison term, the U.S. district judge ordered Tappin to pay an $11,357.14 fine and to be placed under supervised release for three years after he completes his prison sentence.

On Nov. 1, Tappin appeared in federal court to reverse his original not-guilty plea, and he admitted culpability in the scheme. He pleaded guilty to aiding and abetting the illegal export of defense articles, waiving his right to appeal his conviction or challenge the sentence handed down.

By pleading guilty, Tappin admitted that from December 2005 to January 2007 he knowingly aided and abetted others, including his Cyprus-based business associate Robert Frederick Gibson and Portland, Ore., resident Robert Caldwell, in an attempt to illegally export zinc/silver oxide reserve batteries to Iran. These batteries are a special component of the Hawk Air Defense Missile; they are designated as a defense article on the U.S. Munitions List. They require a license or written authorization from the U.S. State Department to be exported.

"Protecting our national security is one of HSI's highest priorities," said Dennis A. Ulrich, acting special agent in charge of HSI El Paso. "This sentence is the result of more than six years of tenacious investigative work by HSI special agents, who are relentless in their efforts to prevent U.S. military products from being illegally exported and falling into the wrong hands."

According to the factual basis filed in this case, which Tappin admitted was truthful and accurate, Tappin knowingly violated U.S. law by obtaining the specialized batteries under false pretenses.

Tappin engaged in phone and email communications with an undercover federal agent to discuss payment and delivery arrangements. In October 2006, Tappin wired about $25,000 from a London financial institution to a U.S. bank account as payment for five of the specialized batteries. Using false shipping documentation and without an export license, Tappin arranged to transfer the batteries to the United Kingdom through his specifically designated freight forwarders, which violates export control regulations.

During the investigation, Tappin agreed to reimburse the undercover agent for $5,000 in fines purportedly being assessed against him by U.S. Customs and Border Protection after it seized the shipment of batteries. Tappin, admittedly, also caused Caldwell to travel to San Antonio in January 2007 to take delivery of the batteries, ensure that they were shipped to him, and to pay the undercover agent $5,000 for the current fines. Tappin, in court, acknowledged that his anticipated profit from the transaction was $11,357.14.

In 2007, Gibson and Caldwell were sentenced to 24 months and 20 months, respectively, in federal prison for their roles in the scheme.

Assistant U.S. Attorney Greg McDonald, Western District of Texas, prosecuted this case.

New York Man Pleads Guilty to Drug Trafficking Conspiracy

On Monday, January 7, 2013, a Niagara Falls, N.Y., man pleaded guilty before U.S. District Judge Richard J. Arcara to conspiracy to possess, with the intent to distribute, 100 kilograms of marijuana. The man faces up to 40 years in prison and a $2 million fine.

Wally Reynolds, 36, supervised other individuals in a drug conspiracy who imported marijuana from Canada into the United States. The defendant then distributed the marijuana to his customers in the United States.

The plea is the result of an investigation by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).

Sentencing is scheduled for May 6 before Judge Arcara.