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.

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. 

Puerto Rican National Sentenced for Distributing Counterfeit Pharmaceuticals

A Puerto Rican man was sentenced Monday, January 28, 2013, to two years in federal prison for being a key member of an organization that distributed large quantities of Chinese-made, counterfeit pharmaceuticals across the United States.

Francis Ortiz Gonzalez, 36, was sentenced the morning of Monday, January 28, 2013, by U.S. District Judge George H. Wu, who also ordered the defendant to pay $324,530 in restitution to the pharmaceutical companies that manufacture brand name products such as Lipitor, Viagra, Xanax and Cialis.

The case is the result of investigations by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI); the Food and Drug Administration, Office of Criminal Investigations; and the U.S. Postal Inspection Service.

In September 2009, federal agents executed a search warrant at Ortiz Gonzalez's residence in Trujillo Alto, a suburb of San Juan, Puerto Rico. Inside the home, investigators found more than 100,000 pills that resembled a variety of popular prescription medications made by companies such as Pfizer Inc. and Eli Lilly and Company. Investigators found evidence that Ortiz Gonzalez obtained the counterfeit pills from China and had shipped more than 140,000 of them to individuals throughout the United States. If the drugs had been authentic, the retail value of the pills Ortiz Gonzalez possessed in his home and shipped would be more than $1 million.

Following a six-day trial last summer, Ortiz Gonzalez was convicted on one count of conspiracy and seven counts of trafficking in counterfeit pharmaceuticals. Ortiz Gonzalez was acquitted on three charges. His wife, Ideliz Aleman-Valentin, was acquitted on all charges.

Ortiz Gonzalez packaged and shipped more than 140,000 counterfeit tablets during a seven-month period in 2009 while working as a "dropshipper" for a counterfeit drug ring allegedly headed by Bo Jiang, 34, a Chinese national whose last known residence was in New Zealand. In January 2011, Jiang was taken into custody on a provisional arrest warrant by New Zealand law enforcement authorities, but he fled shortly after being released on bond. Jiang remains a fugitive.
In a related case before Judge Wu, a North Hollywood man was found guilty on January 11 of federal charges involving the trafficking of counterfeit pharmaceuticals.

Edward Alarcon, 44, was convicted of two counts of trafficking in counterfeit OxyContin and Cialis; he was acquitted on two other counts. The evidence presented during a three-day jury trial showed that Alarcon had purchased the counterfeit OxyContin from Bo Jiang, the same man who allegedly supplied Ortiz Gonzalez.

On Nov. 10, 2009, HSI special agents found approximately 237 counterfeit OxyContin pills and approximately 1,592 counterfeit Cialis pills in Alarcon's car and house. Investigators also found hundreds of other counterfeit pills, including Viagra and Levitra. Only a month before the federal search, Alarcon had been convicted in state court on counterfeit drug charges for selling counterfeit Cialis to an undercover Los Angeles Police Department officer in 2008.

Alarcon is scheduled to be sentenced by Judge Wu April 4. At that time, Alarcon faces a statutory maximum sentence of 20 years in federal prison.

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.

Internet Piracy Group Leader Sentenced for Criminal Copyright Conspiracy

The leader of the Internet piracy group "IMAGiNE" was sentenced Thursday, January 3, 2013, to 60 months in prison following an investigation by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) in Washington, D.C.

Jeramiah B. Perkins, 40, of Portsmouth, Va., was sentenced by U.S. District Judge Arenda L. Wright Allen in the Eastern District of Virginia. In addition to his prison term, Perkins was sentenced to serve three years of supervised release and ordered to pay $15,000 in restitution. On Aug. 29, 2012, Perkins pleaded guilty to one count of conspiracy to commit criminal copyright infringement.

Perkins was indicted along with three other defendants April 18, 2012, for their roles in the IMAGiNE Group, an organized online piracy ring that sought to become the premier group to first release Internet copies of movies only showing in theaters.

According to court documents, Perkins directed and participated in using receivers and recording devices in movie theaters to secretly capture the audio sound tracks of copyrighted movies and then synchronized the audio files with illegally recorded video files to create completed movie files suitable for sharing over the Internet among members of the IMAGiNE Group and others.

Perkins admitted he took the lead in renting computer servers in France and elsewhere for use by the IMAGiNE Group. He also admitted he registered domain names for use by the IMAGiNE Group, and opened e-mail and PayPal accounts to receive donations and payments from persons downloading or buying IMAGiNE Group releases of pirated copies of motion pictures and other copyrighted works.

According to testimony by a representative of the Motion Picture Association of America, the IMAGiNE Group constituted the most prolific motion picture piracy release group operating on the Internet from September 2009 through September 2011.

Co-defendants Sean M. Lovelady, Willie O. Lambert and Gregory A. Cherwonik each pleaded guilty to one count of conspiracy to commit criminal copyright infringement May 9, June 22 and July 11, 2012 respectively. Lambert and Lovelady were sentenced Nov. 2, 2012, to 30 months and 23 months in prison respectively. Cherwonik was sentenced Nov. 29, 2012, to 40 months in prison. A fifth co-defendant, Javier E. Ferrer, was charged in an information Sept. 13, 2012, for his role in the IMAGiNE Group and he pleaded guilty to one count of conspiracy to commit criminal copyright infringement Nov. 29, 2012. Ferrer is scheduled to be sentenced March 14.

Assistant U.S. Attorney Robert J. Krask of the Eastern District of Virginia and Senior Counsel John H. Zacharia of the Criminal Division's Computer Crime and Intellectual Property Section (CCIPS) are prosecuting the case. Significant assistance was provided by the CCIPS Cyber Crime Lab and the Department of Justice (DOJ) Criminal Division's Office of International Affairs.

This investigation was supported by the HSI-led National Intellectual Property Rights Coordination Center (IPR Center) in Washington. The IPR Center is one of the U.S. government's key weapons in the fight against counterfeiting and piracy. Working in close coordination with the DOJ Task Force on Intellectual Property (IP Task Force), 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, the U.S. economy and the war fighters.

This case is part of efforts being undertaken by the IP Task Force to stop the theft of intellectual property. Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation's economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. 

Baltimore Man Pleads Guilty to Trafficking Counterfeit Goods

Liang Lin, 34, a resident of Delaware, who owned and operated two shops on the boardwalk in Ocean City, Md., pleaded guilty Thursday, January 3, 2013, to trafficking in counterfeit goods.

The guilty plea follows an investigation led by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).

"Entrepreneurs are free to sell cheap clothing, shoes, handbags, perfume and other consumer items," said U.S. Attorney Rod J. Rosenstein. "But they cannot use someone else's trademark."

"Counterfeit goods traffickers like Lin are looking to gain profit but in reality are committing a crime that results in American jobs lost, American business profits stolen and American consumers receiving substandard products," said Special Agent in Charge of HSI Baltimore William Winter. "Consumers now pay more for legitimate products to make up for the money being lost to counterfeits. HSI enforcement operations into intellectual property theft protect not only the companies who have copyrighted products, but the consumers who believe they are legitimately buying those copyrighted products."

According to his plea agreement, Lin owned and operated two stores in Ocean City: Hot Topik at 401 South Atlantic Avenue and Everything $5.99 and Up at 806 South Atlantic Avenue #8, as well as operating stores in Delaware. Lin admitted that from at least June 2010 through at least September 2011, he sold and attempted to sell counterfeit merchandise, including purses, handbags, shirts, jewelry, perfume, hats and shoes that bore trademarks such as Chanel, Coach, Gucci, Louis Vuitton, Michael Kors, Monster, Nike, Versace and Vera Wang.

During the summer of 2011, undercover investigators observed large quantities of counterfeit merchandise in Lin's stores in Ocean City, and several undercover buys of counterfeit merchandise were made, including the purchase of a counterfeit Coach purse.

On the morning of Aug. 17, 2011, HSI special agents executed federal search warrants at both of Lin's stores in Ocean City and approximately 8,000 items of counterfeit merchandise were seized. Two days after the execution of the federal search warrant, an investigator again saw counterfeit merchandise for sale at Everything $5.99 and Up, including merchandise of the same type seized during the search. On Sept. 1, 2011, an investigator made an undercover buy of a counterfeit Coach purse at Everything $5.99 and Up.

On Jan. 30, 2012, Lin was stopped re-entering the United States after a one-day trip to Canada and declared that the only thing he purchased in Canada was liquor from a duty free shop. A border search of his vehicle recovered approximately 869 pieces of counterfeit jewelry bearing trademarks such as Chanel.
It is estimated by the manufacturers whose goods were counterfeited that the lost retail value (or the retail value of the infringed items) of the goods seized and sold is estimated to be between $200,000 and $400,000. The estimated retail value of the counterfeit merchandise, based on what Lin was selling the infringing counterfeit items for is $153,585.

Lin faces a maximum sentence of 10 years in prison and a fine of $2 million at his sentencing March 27 at 9:30 a.m.

This law enforcement action is an example of the type of efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation's economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders.

The investigation was conducted by HSI Baltimore and Ocean City, the Maryland State Police and Ocean City Police Department. Blazer Investigations and Stumar Investigations assisted in the investigation.

The case was prosecuted by Assistant U.S. Attorney Justin Herring.

Sentencing for Colombian National Who Stole from Child Welfare Program

A 43-year-old Colombian national who was extradited last December to face U.S. charges was sentenced to five years in prison for stealing money meant to fund meals for under-privileged children.

The scheme, uncovered by the Oregon Department of Education, was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the FBI.

Gerardo Mosquera was convicted by a federal jury in September of two counts of theft concerning a program receiving federal funds. According to court records, Mosquera's organization, the Portland-based non-profit organization Diversity Initiatives, was paid more than $1.6 million by the Oregon Department of Education to provide meals to children at various sites in the Portland area. State officials noticed that the number of meals claimed by Diversity Initiatives was increasing, while sites served by the organization had decreased. A state audit revealed the organization for at least two years had fraudulently billed the state for approximately 100,000 meals that were never provided.

At sentencing, U.S. District Court Judge Marco A. Hernandez found Mosquera's leadership role with Diversity Initiatives, his use of a false Social Security number to open bank accounts, and his obstructive behavior during the state administrative proceedings warranted sentencing enhancements. In addition to his prison sentence, Mosquera was ordered to pay more than $215,000 in restitution and serve three years of supervised release.

Following his prison term, he will be taken into custody by ICE to face immigration enforcement action.

The case was prosecuted by the U.S. Attorney's Office for the District of Oregon.

Canadian National Sentenced for Smuggling Ecstasy into U.S.

Following an investigation by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), a Canadian man was sentenced to eight years in prison for his role in a conspiracy to import large amounts of ecstasy pills into the United States.

James Elliott, 62, of Windsor, Ontario, was sentenced Thursday, December 6, 2012, in federal court to eight years in prison.

"HSI will not tolerate the illegal movement of drugs into the United States," said John Kelleghan, special agent in charge of HSI Philadelphia. "HSI stopped these criminals, who are motivated by greed, from distributing large quantities of illegal drugs in our community and endangering the welfare of our citizens."

Elliott helped recruit and organize a group of smugglers, mostly from the Windsor area, who imported large quantities of drugs into the United States. These drugs were manufactured in Canada by Asian drug trafficking organizations. These organizations then hired Elliott and his couriers to transport the drugs to other drug dealers across the United States. Elliott's conduct came to light in September 2007 when two couriers were stopped in Philadelphia and law enforcement officers seized 102,000 ecstasy pills which the couriers had attempted to distribute to drug dealers in Philadelphia and Boston.

Eastern District of Pennsylvania Assistant U.S. Attorney Robert J. Livermore prosecuted the case.

Members of Internet Piracy Group Sentenced

Two members of the Internet piracy group "IMAGiNE" were sentenced to prison Friday, November 2, 2012, in Virginia, following an investigation by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).

Willie Lambert, 57, of Pittston, Pa., was sentenced to 30 months in prison, three years of supervised release and $449,514 in restitution, and Sean M. Lovelady, 28, of Pomona, Calif., was sentenced to 23 months in prison, three years of supervised release and $7,500 in restitution.

Lambert and Lovelady were indicted along with two other defendants April 18 for their roles in the IMAGiNE Group, an organized online piracy ring that sought to become the premier group to first release to the Internet copies of movies only showing in theaters.

Lambert and Lovelady each pleaded guilty to one count of conspiracy to commit criminal copyright infringement.

According to court documents, Lambert, Lovelady and their co-conspirators sought to illegally obtain and disseminate digital copies of copyrighted motion pictures showing in theaters. Both Lambert and Lovelady admitted that they went to movie theaters and secretly used receivers and recording devices to capture the audio sound tracks of copyrighted movies, referred to as "capping."

After obtaining, editing and filtering audio sound tracks and uploading them to servers used by the IMAGiNE Group, Lambert and Lovelady used and attempted to use software to synchronize the audio file with an illegally obtained video file to create a completed movie file suitable for sharing over the Internet among members of the IMAGiNE Group and others.

Co-defendants Jeramiah B. Perkins and Gregory Cherwonik each pleaded guilty to one count of conspiracy to commit criminal copyright infringement. Perkins is scheduled to be sentenced Jan. 3, 2013, and Cherwonik is scheduled to be sentenced Nov. 29.

Assistant U.S. Attorney Robert J. Krask of the Eastern District of Virginia and Senior Counsel John H. Zacharia of the Justice Department Criminal Division's Computer Crime and Intellectual Property Section are prosecuting the case. Significant assistance was provided by the Justice Department's Cyber Crime Lab and the Criminal Division's Office of International Affairs.

This investigation was supported by the HSI-led National Intellectual Property Rights Coordination Center (IPR Center) in Washington. The IPR Center is one of the U.S. government's key weapons in the fight against criminal counterfeiting and piracy. As a task force, the IPR Center uses the expertise of its 21 member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and our war fighters.

Life Sentence for JFK Baggage Handler who Ran Drug Trafficking Ring

A former American Airlines baggage handler was sentenced to life in prison Tuesday, October 16, 2012, for his leadership of an international drug trafficking organization. This sentencing comes as a result of an investigation by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), U.S. Customs and Border Protection, the Port Authority (of New York & New Jersey) Police Department, the Internal Revenue Service, the United States Postal Inspection Service, and the Drug Enforcement Administration.

"Victor Bourne and his crew of corrupt former American Airline employees mistakenly viewed drug smuggling as a path to riches. The sentencing today serves as a stern warning about the consequences awaiting drug smugglers," said James T. Hayes Jr., special agent in charge of HSI New York. "HSI will continue to use its resources and the expertise of its law enforcement partners to flush out criminals who attempt to exploit our borders."

"Using his insider status, Bourne turned American Airlines into his personal narcotics shuttle service, running a criminal organization that ignored passenger safety and security in the pursuit of their greater goal - enriching Victor Bourne," said Loretta E. Lynch, U.S. attorney of the Eastern District of New York. "Bourne not only abused the trust of American Airlines to satisfy his own financial greed, but by compromising security at JFK Airport he placed all travelers at risk. In this post-9/11 era, we will continue to aggressively investigate and prosecute those at our ports of entry who violate our nation's drug trafficking laws and threaten the integrity of our borders."

Victor D'Costa Bourne, 37, was the leader of an international drug trafficking organization that smuggled narcotics from the Caribbean into the United States through John F. Kennedy International Airport (JFK). A federal jury in Brooklyn returned guilty verdicts against Bourne on charges of leading a continuing criminal enterprise, importing and distributing illegal narcotics, and money laundering, after a month-long trial in October 2011.

In total, the investigation that culminated in Bourne's conviction and sentence has resulted in 20 convictions, including the conviction of 19 airline employees, the seizure of 13 kilograms of cocaine and 2,900 pounds of marijuana, and the forfeiture of $6.9 million.

The evidence at trial proved that, between 2000 and 2009, the Bourne organization utilized corrupt employees of commercial airlines, including American Airlines, working at domestic and international ports of entry to smuggle illegal narcotics into the U.S. and throughout the Caribbean. Bourne paid dispatching crew chiefs at American Airlines to assign crews of baggage handlers, who, in turn, were paid tens of thousands of dollars by the Bourne organization to retrieve the cocaine from the flights upon arrival.

The cocaine smuggled aboard American Airlines flights into JFK was hidden behind panels in the front and rear cargo holds, the ceiling, wing assembly, avionics, and other vital equipment compartments. After removing the cocaine from these locations, the corrupt baggage handlers hid the drugs inside their coats and airline equipment bags to avoid detection by law enforcement and safely transport the drugs to Bourne.

The government proved at trial that, in this manner, the Bourne organization was responsible for the importation into the U.S. of over 150 kilograms of cocaine. At the time of his arrest in 2009, Bourne was preparing to transport even larger quantities of cocaine in cargo containers from the Caribbean to the United States.

The evidence presented by the government at trial included testimony from six former American Airlines employees who pleaded guilty to narcotics trafficking charges resulting from their participation in the Bourne organization. Each witness described Bourne's control of the drug smuggling operation, including the recruitment and payment of his workers, the secret locations on the aircraft where the cocaine was hidden, and the growth of the organization over time. One of the employees recounted a conversation in which Bourne stated, in substance, that he "started with half a kilo, then got 1, 2, 3, 4, 5, 30, 50."

Another government witness, an American Airlines employee at JFK who was not involved in drug trafficking, testified that Bourne accused him of stealing two kilograms of cocaine. This witness testified that Bourne threatened to "kill me, my family, my kids" if the drugs were not returned. Shortly thereafter, Bourne confronted the same employee at the airport and pushed him off of a truck, causing a neck injury.

The evidence at trial also established that Bourne was responsible for the shipment of over 5,000 pounds of marijuana aboard cargo vessels, in part through a Brooklyn footwear company, to businesses in Barbados.

Bourne reaped millions of dollars in illegal cash proceeds from his illegal drug trafficking, and laundered his drug proceeds through businesses and real estate ventures in Brooklyn and Barbados.

In addition to a lifetime term of imprisonment, Bourne was ordered to forfeit $5.1 million.

Mexican Nationals Sentenced for Smuggling Marijuana on Vegetable Trucks

Three men who planned to use a Gainesville warehouse to unload their vegetables and marijuana were sentenced to prison Thursday, October 11, 2012, by Senior United States District Judge William C. O'Kelley. The investigation leading to the sentences was led by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).

Marco Ortiz-Barajas, 19, Angel Zamudio-Martinez, 54, and Jose Luis Chavez-Morfin, 43, all of whom are from Mexico but resided in the Atlanta metropolitan area, were convicted based upon their June 29 guilty pleas to a charge of conspiracy to possess marijuana with the intent to distribute.

"Today's sentences are a reminder that drug trafficking carries with it serious consequences and that no community is immune from its presence or its potentially destructive effects," said United States Attorney Sally Quillian Yates.

"This case demonstrates that Atlanta and its surrounding environs continue to serve as a hub for the distribution of marijuana and other drugs smuggled into the United States from Mexico," said Brock D. Nicholson, special agent in charge of HSI Atlanta. "HSI will continue to work with our federal, state and local law enforcement partners to target the organizations responsible for drug trafficking in Georgia and to send a strong message that their criminal activity will not be tolerated here."

Chavez-Morfin was sentenced to five years, 10 months in prison to be followed by five years of supervised release. Zamudio-Martinez was sentenced to four years, two months in prison, to be followed by five years of supervised release. Ortiz-Barajas was sentenced to three years in prison, to be followed by five years of supervised release. Each defendant will be deported to Mexico at the end of his sentence.

According to information presented in court, during the course of an undercover investigation HSI special agents learned that Ortiz-Barajas, Zamudio-Martinez and Chavez-Morfin were planning to unload a shipment of marijuana at a Gainesville warehouse. As soon as the tractor trailer arrived at the warehouse, law enforcement executed a search warrant. Under the cilantro, peppers and other green vegetables, law enforcement located and seized 1,572 pounds of marijuana.

The approximate street value of the marijuana seized is $3,144,000.

ICE recommends parents and children learn about the dangers of drugs at the following website: www.justthinktwice.com. Additional information can be found at www.DrugFree.org.

In May 2012, the Partnership at Drugfree.org released the findings of a new, national study entitled "The Partnership Attitude Tracking Study." This study, which tracks drug use and attitude trends among high-school aged teens in America, revealed some troubling findings. Most notably, it found that in 2011 marijuana use among teens rose over the preceding three years, with an especially sharp rise in heavy, past-month use (i.e., 20 or more times in the past 30 days) of the drug. Heavy, past-month use of marijuana saw an 80 percent increase among U.S. teens since 2008.

This case was investigated by HSI and members of the Gainesville-Hall County Multi-Agency Narcotics Squad. The agencies involved with the arrests include the Hall County Sheriff's SWAT Team, Gainesville Police Department and Hall County Sheriff's Office uniform patrol divisions, Georgia Bureau of Investigation, FBI Safe Streets Task Force, U.S. Drug Enforcement Administration, Georgia State Patrol and Georgia State Patrol Aviation Division.

Cartel Organizer and 5 Associate Members Sentenced for Bribing Public Official

A Gulf Cartel organizer and five of his associates were sentenced Wednesday, October 10, 2012, after they were convicted for bribing a public official, announced U.S. Attorney Kenneth Magidson, Southern District of Texas.

This investigation was led by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), with the assistance of the FBI and Brownsville Police Department.

U.S. District Judge Andrew Hanen imposed the following sentences Oct. 10:

·                             Juan Carlos De La Cruz Reyna, 37, was sentenced to 135 months in federal prison, and ordered to pay a $100,000 fine;

·                             Julio Adolfo Torres, 40, was sentenced to 120 months;

·                             Carlos Melo, 38, was sentenced to 84 months;

·                             Gaspar Montes-Montes-Martinez, 42, was sentenced to 46 months, and ordered to pay a $5,000 fine;

·                             Trejo Juan Trejo Venegas, 34, was sentenced to 46 months; and

·                             Jose Cruz Venegas Esquivel, 37, was sentenced to 24 months.

Adalberto Nunez Venegas, 40, who was also convicted in the case, will be sentenced in January.

All six defendants previously pleaded guilty between April 23 and May 10.

According to court documents, the convictions resulted from an investigation launched as De La Cruz Reyna was set to be released from federal prison after serving 30 months for assaulting federal agents in Matamoros, Mexico, in November 1999. Those assaults were conducted at the direction of Osiel Cardenas Guillen, who was then leader of the Gulf Cartel.

After completing his first prison sentence, De La Cruz Reyna would normally have been returned to Mexican authorities since he had no legal status to remain in the U.S. He would have been returned at either a port of entry along the U.S.-Mexican border or flown to the interior of Mexico. However, fearing possible prosecution by Mexican authorities or being taken into custody by a rival drug cartel, De La Cruz Reyna attempted to bribe a federal official to ensure safe passage to Mexico. Through the co-conspirators, De La Cruz Reyna made a total of $797,000 in bribe payments over the course of the scheme.

At his direction, De La Cruz Reyna's co-conspirators met an undercover officer, who they thought was a corrupt HSI special agent, on numerous occasions from May 2011 to March 2012, and made several bribe payments. During this period, De La Cruz Reyna admitted he spoke with the special agent from prison on numerous occasions about bribery payments and to negotiate his release and with another special agent in Atlanta, Ga., and on two occasions to discuss his covert removal to Mexico.

The overall bribery scheme primarily involved obtaining De La Cruz Reyna's unannounced removal to Mexico, his release to elements of the Gulf Cartel, and avoiding official notification and transfer to the appropriate Mexican federal law enforcement authorities. The bribery scheme also involved allowing individuals to visit him in the Atlanta prison while he was there.

After De La Cruz Reyna was transferred to the Rio Grande Valley in preparation for his supposed release to elements of the Gulf Cartel, several of the conspirators, including De La Cruz Reyna and Nunez Venegas, met with the special agent and discussed the final bribe payment. At that time, the officer was wearing his official credentials clearly indicating he was a federal law enforcement officer. On -March 13, Nunez Venegas, Trejo Venegas and Montes-Martinez met with the undercover officer and made the final payment.

On the night of March 14, the six men met with the special agent to discuss the final arrangements and each person's role in the operation, at which time they were all arrested. De La Cruz Reyna was also arrested on that date.

De La Cruz Reyna and the others will remain in federal custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

Assistant U.S. Attorneys Jody Young and Angel Castro, Southern District of Texas, prosecuted this case.

Texas Men Sentenced to 15 Years in Prison for Cocaine Trafficking

Two south Texas men were sentenced Thursday, October 11, 2012, after admitting their guilt to trafficking cocaine in Weslaco, Texas, announced U.S. Attorney Kenneth Magidson, Southern District of Texas.

Jose Santos Casas-Gonzalez Sr., 51, and Rogelio Mata-Ramirez, 50, both previously pleaded to conspiracy to possess with intent to distribute 29 kilograms of cocaine. Senior U.S. District Judge Hayden Head, who accepted their guilty pleas, sentenced Casas-Gonzalez and Mata-Ramirez to 188 months Oct. 11 for trafficking cocaine and conspiracy to commit money laundering. In addition to their sentence, the judge also ordered them to serve five-year terms of supervised release following completion of their prison terms.

During sentencing, Judge Head noted that both men were partners in the organization and were equally responsible, and both were involved in multiple loads of cocaine that were received from the Zetas and moved throughout the United States. The court also entered a final order of forfeiture for the real property located at 8129 North F.M. 88, in Weslaco – the location of Rio Shallow Boats Inc.

According to court documents, Casas-Gonzalez and Mata-Ramirez admitted to hiring a driver in December 2010 to transport approximately 30 kilograms of cocaine through a U.S. Border Patrol checkpoint. They also admitted to utilizing Casas-Gonzalez's business, Rio Shallow Boats Inc., to help in the facilitation of their drug trafficking activities. Casas-Gonzalez further acknowledged he used the profits from his drug business to make his boat company appear legitimate. Casas-Gonzalez admitted to using drug money to buy vehicles, pay for personal expenses and reinvest into his business, Rio Shallow Boats Inc.

Casas-Gonzalez and Mata-Ramirez were part of a cocaine conspiracy operating between the Rio Grande Valley and areas north, circumventing U.S. Border Patrol checkpoints by utilizing ranches in South Texas. Both were smuggling large amounts of narcotics, primarily cocaine, through and around the U.S. Border Patrol checkpoints to various destinations throughout the United States.

They trafficked narcotics using tractor-trailers, boats in the Intracoastal Waterway and in various other ranch vehicles around the U.S. Border Patrol checkpoint near Sarita, Texas. Mata-Ramirez is a former employee of the King Ranch and is one of the coordinators for the drug smuggling operations, working for Casas-Gonzalez.

Members of the Zeta organization would supply Casas-Gonzalez with cocaine in which he used Rio Shallow Boats Inc. to fabricate compartments for the smuggling of this contraband in boats, tractor trailers and trucks.

They have both been in custody where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

This was a multi-agency investigation dubbed Operation Rio Shallow that was conducted in Corpus Christi, led by HSI.

Assistant U.S. Attorney Julie K. Hampton, Southern District of Texas, prosecuted the case.

Illegal Mexican National and Other Sentenced for Straw-Purchasing Firearms

The leader of a large straw-purchasing ring who was responsible for the purchase of more than 200 firearms is now headed to prison, announced U.S. Attorney Kenneth Magidson, Southern District of Texas. The investigation was conducted by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

Yahir Ricardo Garcia-Matias, 29, a Mexican national in the United States illegally, was sentenced Wednesday, September 19, 2012, along with nine others responsible for making false statements on ATF Forms 4473 in the acquisition of firearms from federal firearms licensees (FFLs).

According to court documents, Garcia-Matias pleaded guilty to one count of straw purchasing in one case and to being an illegal alien in possession of firearms in another. On Sept. 19, U.S. District Judge Randy Crane sentenced him to 120 months for the firearms possession and another 60 months for straw purchasing. The sentences will run consecutively for a total of 180 months in prison.

Also sentenced Wednesday, September 19, 2012 was Jose Duran-Loera, 26, of Mercedes, Texas, who pleaded guilty to possession of a firearm by a felon and straw purchasing. He was sentenced to 120 and 60 months, respectively, which will also run consecutively for a total of 180 months in federal prison.

Judge Crane sentenced seven others in this case. The defendants are: Humberto Galvan, 22, and Juan Angel Nunez Jr., 25, both of Mercedes; Jose Espinoza, 24, of Weslaco; Angelo Rosa, 23, and Antonio Espinoza, 22, both of Edinburg; Ashley Trevino, 22, of San Juan; and Maria Isela Morales, 22, of Donna. All have pleaded guilty to one count of straw purchasing at varying times.

Galvan, Antonio Espinoza, Jose Espinoza, Rosa, Trevino and Morales were all sentenced to 46-month-terms of imprisonment. Nunez, who pleaded guilty to two different violations of straw purchasing, will serve a total of 108 months in prison.

Court documents indicate that beginning in September 2010, ATF agents began investigating several individuals who had made large numbers of purchases of highly trafficked firearms from The Armory, an FFL in McAllen. Agents interviewed several individuals involved in the case and discovered they had straw-purchased firearms for Loera or Nunez. Loera and Nunez would recruit individuals to make the purchases, give them money to make to purchase, then direct the buyers as to which store to use and what firearms to purchase. After the buyer had acquired the firearms they then transferred them to Nunez or Loera and were paid for making the purchase.

ATF agents identified Garcia-Matias and Nunez as senior members of the straw-purchasing organization. On May 23, ATF agents received information that Nunez was attempting to straw-purchase 10 AK-style rifles. After observing the purchase and once the firearms were loaded into Nunez's vehicle, agents approached and interviewed Nunez. He admitted at that time to straw-purchasing in cooperation with Garcia-Matias, who had provided the money to him. Nunez was followed back to the Rio Grande Valley where he was observed meeting with Garcia-Matias and another defendant, Juan Carlos Solis-Venegas, 39, a Mexican national living illegally in the United States, when Solis-Venegas turned the firearms over to them. After agents observed the firearms being transferred from Nunez's vehicle to the vehicle occupied by Garcia-Matias and Solis-Venegas, all were taken into custody. Solis-Vengas was identified by the parties as the person who brought the money to Garcia-Matias.

In total, Garcia-Matias was held to be responsible for well over 200 firearms.

Solis-Venegas was also charged in this case and subsequently pleaded guilty. He will be sentenced Oct. 4, and will remain in custody pending that hearing.

This prosecution was responsible for sending more than 25 leaders, recruiters and straw-purchasers to prison. Most of the firearms in the case were already in Mexico by the time agents were able to begin their investigation of the offenses. The majority of the prosecution was historical and based upon completed ATF Forms 4473 that were examined. No firearms were allowed into Mexico as a part of this investigation.

Garcia-Matias and Nunez have been in custody, as are Loera and Juan Espinoza. They will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The remaining six sentenced Sept. 19 had been on bond but were remanded to custody following the hearing Wednesday, September 19, 2012.

Assistant U.S. Attorney Steven Schammel, Southern District of Texas, prosecuted the case.

Hawaiian Men Sentenced for $1.6 Million Ponzi-Style Fraud Scheme

Three men who led a Ponzi-style scheme that defrauded investors of more than $1.6 million were sentenced in federal court Thursday, September 13, 2012, following a joint investigation by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Federal Bureau of Investigation.

Syed Qadri, 39, Ruben Carrillo Gonzalez, 50, and Jeffrey Greenhut, 40, were sentenced by U.S. District Judge Leslie E. Kobayashi to 51 months, 41 months and 24 months in federal prison, respectively. The trio, who pleaded guilty to wire fraud charges in September 2010, were also ordered to pay restitution to the victims of the scheme.

In addition to the defendants, Qadri's wife, Patricia Roszkowski, 48, was also sentenced to one month in prison for filing a fraudulent credit application with a local bank as part of the scheme.

According to court documents, the three men schemed to defraud investors through two Honolulu companies, Amasse Capital, LLC, and Solomon & Co., LLC. The trio operated a Ponzi-style scheme in which the companies purportedly invested in high yield bonds that exposed investors' principal to minimal risk, when, in reality, the investments were used to pay back earlier investors, with the remainder of funds converted to Qadri's personal use. The net loss to victims as a result of the scheme was more than $1.6 million.

Qadri, who led the fraud scheme, served as Amasse Capital's president and chief executive officer. He and Roszkowski lived in a luxurious Kahala residence, purchased several expensive cars and leased an entire floor in a downtown office building. Gonzalez served as Amasse Capital's senior vice president of marketing and was responsible for soliciting investors. Greenhut, Amasse Capital's chief operating officer, managed investor funds.

Amasse Capital was marketed as an investment firm registered with the Securities and Exchange Commission. The company's prospectus listed the defendants as management and members of the board of directors and made false claims about the experience of the defendants in order to induce investment. Additionally, the prospectus contained false statements about the business activity, capability and financial stability of the company. Qadri and Gonzalez claimed that the companies could return 100 to 400 percent monthly interest on investments.

The case was prosecuted by Assistant U.S. Attorneys Chris Thomas and Ronald Johnson of the U.S. Attorney's Office, District of Hawaii.

5 Members of Mexican Drug Trafficking Ring Sentenced to Over 20 Years

The leader of a local drug trafficking organization, who distributed hundreds of kilograms of cocaine and transported millions of dollars in drug proceeds to Mexican drug traffickers, was sentenced Wednesday, August 15, 2012, to nearly 22 years in prison, announced U.S. Attorney Kenneth Magidson, Southern District of Texas.

This Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed "Operation GoodRum" was conducted jointly by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), and the Internal Revenue Service's Criminal Investigation Division (IRS-CID).

Isaias Gallegos, aka "Mickey," 32, of Sugar Land, Texas, had pleaded guilty to conspiracy to possess with intent to distribute cocaine, and aiding and abetting money laundering. U.S. District Judge David Hittner sentenced Gallegos Aug. 15 to 262 months in federal prison on the conspiracy count and 240 months on the money laundering count; the sentences are to be served concurrently. Gallegos was also sentenced to a five-year term of supervised release.

The 18-month investigation identified Gallegos as the leader of the family operated conspiracy.

The following accomplices were also charged with receiving and selling cocaine from Mexican drug sources to distributors in Houston and throughout the United States:

·                             Suleyka Gallegos, 32, wife, also of Sugar Land;

·                             Wendy Perez Gallegos, 35, sister, from Laredo, Texas;

·                             Julio C. Villanueva-Barbosa, 40, brother-in-law, also from Laredo;

·                             Fernando Gallegos-Saucedo, 23, cousin, from Houston; and

·                             Francisco Paniagua Romero, 38, uncle, from Houston.

Alvaro Dalberto Palma, 33, and Keith Jamail Sonia, 36, both of Houston, were identified as cocaine distributors for the organization. Jorge Alberto Briones, 40, and Mario Garza Mora, 37, both of Laredo, and J. Jesus Santos, 40, of Houston, were identified as transporters of drug proceeds between Houston and Mexican drug traffickers.

From November 2009 through April 2010, HSI special agents seized $1,844,760 in drug proceeds from couriers transporting the funds from the Gallegos organization in Houston to drug traffickers in Mexico. The investigation culminated April 28, 2010 after search warrants were conducted at locations used by the organization, resulting in the seizure of 147 kilograms of cocaine, an additional $160,704 in drug proceeds, and 11 assault rifles.

A residence purchased with drug proceeds in the name of Suleyka Gallegos on the 5200 block of Ireland in Houston revealed a drug manufacturing operation used by the organization. At the residence, a substance was added to the cocaine and then repackaged to appear as if it were in its originally shipped purity. This process allowed the organization to command higher prices for lower quality cocaine.

Suleyka Gallegos, Palma, Sonia and Villanueva-Barbosa all pleaded guilty to conspiracy to possess with intent to distribute cocaine, and were sentenced to 87, 120, 135 and 87 months in federal prison, respectively.

Garza Mora, Perez-Gallegos, Gallegos-Saucedo, Romero, Briones and Santos pleaded guilty to aiding and abetting the conspiracy to money launder and were sentenced to 41, 87, 151, 210, 97 and 97 months, respectively.

In addition to the seized drug proceeds, multiple automobiles and the residence located on Ireland in Houston used by the organization for their drug trafficking activities were also seized by officers during the course of the investigation.

Assistant U.S. Attorney Rick Hanes, Southern District of Texas, prosecuted this case.

Two Illinois Women Sentenced for Counterfeit Luxury Ring

Two women were sentenced in federal court Monday, August 13, 2012, for conspiring to traffic counterfeit merchandise in the Rockford, Ill., area. The sentences resulted from a joint investigation conducted by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Bloomington Police Department, and the U.S. Postal Inspection Service.

Jannette Grant, 51, of Bloomington, Ill., and Kimberly Nein, 50, of Argenta, Ill., who did business as "The Purse Lady," were sentenced Aug. 13 for trafficking in counterfeit goods. U.S. District Judge Joe Billy McDade, Central District of Illinois, sentenced Grant to 36 months in federal prison; and sentenced Nein to serve 24 months in federal prison. Both women were ordered to pay $3,879 restitution. They will report to the Bureau of Prisons Oct. 9 to begin serving their respective prison terms.

On April 25, Grant and Nein each waived indictment and pleaded guilty to operating a business known as "The Purse Lady" that sold counterfeit items bearing various trademarks, including: Coach, Kate Spade, Dolce & Gabbana, Chanel, Dooney & Bourke, Prada, Tiffany & Co., and others. Goods were sold throughout central Illinois, including at various businesses, home parties, also known as "purse parties," through the mail, and at an Argenta warehouse owned by Nein.

Grant and Nein admitted they regularly traveled to Chicago and New York to purchase inventory. According to court documents, Grant and Nein advertised their items for sale as "replica/knockoff," and stated that all references to brands were for "entertainment and novelty purposes only," and "these companies are not affiliated with us in any way."

During search warrants executed by law enforcement officers May 12 at Grant's home and at Nein's Argenta warehouse, officers recovered more than 15,000 counterfeit items with a total estimated manufacturer's suggested retail price of about $1.6 million. The seized luxury goods included 2,000 purses, 900 wallets, 400 sunglasses, 10,900 emblems and medallions, and other items.

Officers recovered various items that Grant surrendered, including a 2008 Dodge Caravan, a 2003 BMW, and $18,052 in currency at her home. Officers also recovered $4,487 from the business's bank account and $80,000 held in a safe deposit box. Grant previously agreed to forfeit $47,522, the amount Grant had paid on two homes in Bloomington, Ill., in lieu of forfeiting real estate.

Assistant U.S. Attorney Darilynn J. Knauss, Central District of Illinois, prosecuted this case.