Foreign Nationals Charged with Extensive Drug Trafficking and Identity Fraud Scheme

Eleven foreign nationals were charged Thursday, July 19, 2012, in a 90-count superseding federal indictment alleging they conspired to distribute cocaine and engaged in tax fraud, money laundering, identity theft and other financial crimes.

The indictment comes following a multi-agency Organized Crime and Drug Enforcement Task Force (OCDEF) investigation, stemming from an initial Drug Enforcement Administration (DEA) and Anchorage police drug probe. The magnitude of the financial crimes, money laundering and identity theft, resulted in the Internal Revenue Service (IRS) Criminal Investigations and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) taking a lead role.

According to the indictment, the Dominican and Mexican-national defendants engaged in a conspiracy to defraud the United States by filing false tax returns and illegally claiming millions of dollars in tax refunds. Investigators believe that between January and March the defendants conducted their scheme using names and Social Security numbers of individuals from the Commonwealth of Puerto Rico.

"Today's indictment is a clear warning that anyone who steals the identities of innocent taxpayers and uses the information for personal profit will be aggressively pursued, investigated and prosecuted, in Alaska or throughout the United States," U.S. Attorney Karen Loeffler said. "This case is an example of how interagency cooperation and teamwork can successfully bring down an entire organized criminal conspiracy."

Three laptop computers seized by investigators contained information for approximately $19 million in fraudulent refund claims, 2,600 stolen identities including individual names, Social Security numbers and other identity information. It is also alleged that one or more of the defendants obtained the physical addresses used on the tax returns by stealing mail from mailboxes in and around the Anchorage area.

The defendants obtained Alaska identification cards using the stolen identities, which were necessary to open the numerous bank accounts needed to cash their tax refund checks. They also falsely claimed to be U.S. citizens to obtain the identity documents and open the accounts.

"These criminals illegally posed as U.S. citizens and exploited our financial system for personal gain," said Brad Bench, special agent in charge of HSI Seattle, who oversees HSI investigations in Alaska. "By pooling our unique resources, legal authorities and expertise, HSI and the IRS were able to dismantle a significant scheme to defraud the people of the United States."

"The charges brought forth today against these 11 individuals serve as another reminder that IRS Criminal Investigation is aggressively pursuing those who choose to defraud the government and disrupt the lives of innocent taxpayers," stated Richard Weber, IRS Criminal Investigations chief.

"Drug traffickers' greed clearly has no limits, as evidenced by this investigation," said Douglas James DEA acting special agent in charge. "The DEA is proud of its partnership with the Anchorage Police Department, which brought this case to their federal counterparts, exposing this multi-faceted criminal organization."

The indictment also charges various defendants with submitting false claims for refund, possessing stolen mail, making false claims of U.S. citizenship, committing passport fraud, making false statements to banks and credit unions, and passing forged U.S. Treasury checks, as well as aggravated identity theft.

The fraud charges each carry maximum penalties of between two and 30 years imprisonment, in addition to the five-year mandatory minimum prison term required upon conviction on the drug charges.

The U.S. Postal Inspection Service and U.S. State Department's Diplomatic Security Service also investigated. The case is being prosecuted by the U.S. Attorney's Office for the District of Alaska and the U.S. Department of Justice Tax Division.

An indictment is merely a formal accusation. Defendants are presumed innocent until proven guilty in a court of law.

Secure Communities: Fundamentals and Updates

Fundamentals of Secure Communities



DHS has expanded Secure Communities from 14 jurisdictions in 2008 to more than 1,700 today, including all jurisdictions along the Southwest border. DHS is on track to expand this program to all law enforcement jurisdictions nationwide by 2013.

Through Oct. 31, 2011, more than 110,000 immigrants convicted of crimes, including more than 39,000 convicted of aggravated felony (level 1) offenses like murder, rape and the sexual abuse of children were removed from the United States after identification through Secure Communities. These removals significantly contributed to a 89 percent increase in the overall percentage of convicted criminals removed by ICE, with 102,000 more criminal removals in FY 2011 than in FY 2008. As a result of the increased focus on criminals, this period also included a 29 percent reduction or 74,000 fewer non-criminal removals.

How does Secure Communities work?

U.S. Immigration and Customs Enforcement (ICE) receives annual appropriations from Congress sufficient to remove a limited number of the more than 10 million individuals estimated to be in the U.S. who lack lawful status or are removable because of a criminal conviction. Given this reality, ICE must set sensible priorities.

Under the Obama administration, ICE has set clear and common-sense priorities for immigration enforcement focused on identifying and removing those aliens with criminal convictions. In addition to criminal aliens, ICE focuses on recent illegal entrants, repeat violators who game the immigration system, those who fail to appear at immigration hearings, and fugitives who have already been ordered removed by an immigration judge.

These priorities have led to significant results. Between fiscal years 2008 and 2011, ICE removed more convicted criminal aliens from our country than ever before, with the number of convicted criminals that ICE removed from the United States increasing by 89 percent, while the number of non-criminals removed dropped by 29 percent.





Updates to Secure Communities

Secure Communities has proven to be a critical tool for carrying out ICE's enforcement priorities. To continue to improve the program, DHS and ICE are committed to addressing concerns that have been raised about its operation including:

·                             Limited Removal Resources: Currently, ICE receives an annual appropriation from Congress sufficient to remove a limited number of the more than 10 million individuals estimated to be in the United States unlawfully. As Secure Communities is continuing to grow each year, and is currently on track to be implemented nationwide by 2013, refining the program will enable ICE to focus its limited resources on the most serious criminals across the country.

·                             Community Policing: Some law enforcement agencies have expressed concerns about whether Secure Communities could have an impact on witnesses and victims of crimes coming forward to report criminal activities in their communities. Given the importance of community policing, ICE is instituting additional training to ensure that law enforcement officers understand the goals and priorities of the program.

·                             Civil Rights: As with all enforcement programs, there is a need to ensure that the civil rights of those who interact with law enforcement are protected. As Secure Communities matures into a national program, ICE is taking additional steps to ensure that it can execute its mission while continuing to respond to any potential civil rights concerns.

These additional safeguards will further protect the program from those who may undermine ICE's enforcement priorities or engage in racial or ethnic profiling:

·                             Advisory Committee & Minor Traffic Offenses: ICE is creating a new advisory committee that will advise the Director of ICE on ways to improve Secure Communities, including making recommendations on how to best focus on individuals who pose a true public safety or national security threat. This panel will be composed of chiefs of police, sheriffs, state and local prosecutors, court officials, ICE agents from the field, and community and immigration advocates. The first report of this advisory committee will be delivered to the Director within 45 days and will provide recommendations on how ICE can adjust the Secure Communities program to mitigate potential impacts on community policing practices, including whether and how to implement policy regarding the removals of individuals charged with, but not convicted of, minor traffic offenses who have no other criminal history.

·                             Prosecutorial Discretion: ICE Director Morton has issued a new memo providing guidance for ICE law enforcement personnel and attorneys regarding their authority to exercise discretion when appropriate – authority designed to help ICE better focus on meeting the priorities of both the agency and the Secure Communities program to use limited resources to target criminals and those that put public safety at risk. This memo also directs the exercise of prosecutorial discretion to ensure that victims of and witnesses to crimes are properly protected. The memo clarifies that the exercise of discretion is inappropriate in cases involving threats to public safety, national security and other agency priorities.

·                             Training for States: ICE and the DHS Office for Civil Rights and Civil Liberties (CRCL) have developed a new training program for state and local law enforcement agencies to provide more information for state and local law enforcement about how Secure Communities works and how it relates to laws governing civil rights.

·                             Protecting Victims & Witnesses of Crimes: At the direction of Secretary of Homeland Security Janet Napolitano, ICE, in consultation with CRCL, has developed a new policy specifically to protect victims of domestic violence and other crimes and to ensure these crimes continue to be reported and prosecuted. This policy directs ICE officers to exercise appropriate discretion to ensure victims and witnesses to crimes are not penalized by removal. ICE is also working to develop additional tools that will help identify people who may be a victim, witness, or member of a vulnerable class so officers can exercise appropriate discretion.

·                             Detainer Policy: ICE has revised the detainer form ICE sends to local jurisdictions to emphasize the longstanding guidance that state and local authorities are not to detain an individual for more than 48 hours. The form also requests local law enforcement to provide arrestees with a copy, which has a number to call if they believe their civil rights have been violated.

·                             Data Collection:

o                                                           ICE and CRCL have created a new complaint system whereby individuals or organizations who believe civil rights violations connected to Secure Communities have occurred can file a complaint. For example, CRCL will investigate complaints of ethnic discrimination by policing jurisdictions for which Secure Communities has been activated, and DHS will take steps to ensure that bias or other abuses do not affect immigration enforcement.

o                                                           ICE and CRCL have created an ongoing quarterly statistical review of the program to examine data for each jurisdiction where Secure Communities is activated to identify effectiveness and any indications of potentially improper use of the program. Statistical outliers in local jurisdictions will be subject to an in-depth analysis and DHS and ICE will take appropriate steps to resolve any issues.

Secure Communities: An Introduction

The highest priority of any law enforcement agency is to protect the communities it serves. When it comes to enforcing our nation's immigration laws, U.S. Immigration and Customs Enforcement (ICE) focuses its limited resources on those who have been arrested for breaking criminal laws.

ICE prioritizes the removal of criminal aliens, those who pose a threat to public safety, and repeat immigration violators.

Secure Communities is a simple and common sense way to carry out ICE's priorities. It uses an already-existing federal information-sharing partnership between ICE and the Federal Bureau of Investigation (FBI) that helps to identify criminal aliens without imposing new or additional requirements on state and local law enforcement. For decades, local jurisdictions have shared the fingerprints of individuals who are booked into jails with the FBI to see if they have a criminal record. Under Secure Communities, the FBI automatically sends the fingerprints to ICE to check against its immigration databases. If these checks reveal that an individual is unlawfully present in the United States or otherwise removable due to a criminal conviction, ICE takes enforcement action – prioritizing the removal of individuals who present the most significant threats to public safety as determined by the severity of their crime, their criminal history, and other factors – as well as those who have repeatedly violated immigration laws.

Secure Communities imposes no new or additional requirements on state and local law enforcement, and the federal government, not the state or local law enforcement agency, determines what immigration enforcement action, if any, is appropriate.

Only federal DHS officers make immigration enforcement decisions, and they do so only after an individual is arrested for a criminal violation of state law, separate and apart from any violations of immigration law.