Man Pleads Guilty to Identity Theft and Tax Evasion

A New Jersey man pleaded guilty Wednesday, January 30, 2013, in connection with his role in a large-scale identity-theft scheme. If convicted, he faces up to 52 years in prison. This case is being investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), FBI, Internal Revenue Service's (IRS) Criminal Investigation and the Bergen County Prosecutor's Office.

Sang-Kyu Seo, 63, of Palisades Park, N.J., pleaded guilty to charges of conspiracy to unlawfully produce identification documents and false identification documents, aggravated identity theft, conspiracy to commit wire fraud, conspiracy to commit bank fraud and tax evasion.

According to court documents, Seo was the owner and operator of Hang Jin Yi Inc., doing business as Hwangini, a salon located in North Bergen, N.J., and Pier 7 Corporation, a purported small business located in Palisades Park.

Seo conspired with Sang-Hyun Park, aka Jimmy, and others, to obtain a Social Security number beginning with the prefix '586' for another individual. These 586 Social Security numbers were issued by the U.S. to individuals, usually from China, who were employed in American territories, such as Guam. Park is alleged to have been the leader of a criminal organization headquartered in Bergen County that obtained, brokered and sold identity documents to customers to commit credit card fraud, bank fraud, tax fraud and other crimes.

Park pleaded guilty Jan. 9 to his role in the enterprise, and is awaiting sentencing.

This criminal enterprise engaged in the fraudulent 'build-up' of credit scores associated with the Chinese identities. They did so by adding the Chinese identity as an authorized user to the credit card accounts of various co-conspirators - members of the enterprise's credit build-up teams who received a fee for this service. By attaching the Chinese identities to these existing credit card accounts, the teams increased the credit scores associated with the Chinese identities to between 700 and 800. The members of the build-up teams did not know the real person to whom the identity belonged or virtually any of the customers who had purchased the identities.

After building up the credit associated with these identities, Park and his co-conspirators directed, coached and assisted the customers in opening bank accounts and obtaining credit cards. Park and his co-conspirators then used these accounts and credit cards to commit fraud. Park relied on several collusive merchants who possessed credit card processing machines. For a fee, known as a 'kkang fee,' these collusive merchants charged the fraudulently obtained credit cards, although no transaction took place. After receiving the money into their merchant accounts from these fraudulent transactions, the collusive merchants gave the money to Park and his co-conspirators, minus their kkang fee.

Seo admitted that he obtained a 586 Social Security card and counterfeit driver's licenses through Park for a family member, who then used this identity to 'bust out' credit cards. Seo also admitted that he gave his corporate and personal credit cards to Park for the purpose of 'busting out' these maxed-out credit cards. In furtherance of this conspiracy, Park and his co-conspirators issued worthless checks, drawn on bank accounts that had been established using the 586 identities, as payment toward the balances on Seo's credit cards.

Before the banks and credit card companies realized that these checks were bogus, Park and his co-conspirators charged Seo's credit cards through collusive merchants or used them to purchase merchandise.

Seo also admitted that in 2007, with the assistance of a loan broker, he fraudulently obtained a $100,000 commercial loan on behalf of Pier 7. Seo admitted that he and the loan broker made false statements to obtain the loan including falsely representing that his businesses annual revenue was about $620,000.

Finally, Seo admitted that he committed tax evasion by issuing checks to himself and others, representing income derived through the operation of Hwangini, and then failing to report this income on his personal tax returns.

Seo admitted that in April 2008, he filed an individual income tax return for tax year 2007. This return declared that his taxable income for calendar year 2007 was about $197, and the amount of tax due and owing was about $19. Seo admitted that this return failed to include $304,848 in additional taxable income that he had received in 2007, thus having an additional tax of $81,643 due to the United States government.

Seo's sentencing is scheduled for May 14.

New York Jewelry Wholesaler Pleads Guilty to Forging CBP Seal

A jewelry wholesaler has pleaded in federal court to forging the seal of a U.S. government federal agency. The guilty plea is the result of an investigation by U.S. Immigration and Customs Enforcement's (ICE) Office of Professional Responsibility (OPR) and the Internal Revenue Service, Criminal Investigation (IRS-CI).

Tejas Mehta, 36, was arrested Aug. 5, 2012, by OPR and IRS special agents for forging the seal of U.S. Customs and Border Protection (CBP). CBP is a component of the U.S. Department of Homeland Security.

Mehta, the owner of Saritijediam Inc., doing business as Design Trends, is a jeweler who conducts business in Manhattan's diamond district. He used the fraudulent CBP seal to allegedly steal hundreds of thousands of dollars from his business associates and other diamond and precious stones wholesalers.

According to court documents, Mehta received diamonds, jewelry and precious stones from other wholesalers under consignment. Once in his possession, he would sell the jewels. Instead of giving the proceeds to the owner of the merchandise as he agreed to do, he would falsely claim that he could not return or sell the merchandise because it had been seized by federal authorities.

Mehta defrauded three victims by accepting hundreds of thousands of dollars in precious stone diamonds.

Mehta then allegedly made excuses and did not return the stones or any funds from the sale of the diamonds. He told the victim's attorney that the stones had been seized by federal authorities. He used the fraudulent seal to falsely state that the diamonds, precious stones and jewelry – which were consigned to him – had been seized by CBP.

This case is being prosecuted by the U.S Attorney's Office, Southern District of New York.

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.

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.

Dutch Citizen Pleads Guilty to Tax and Mortgage Fraud

A Dutch citizen and resident of Canada pleaded guilty Friday, December 28, 2012, to several tax and mortgage fraud charges, following an investigation by the Internal Revenue Service's (IRS) Criminal Investigations, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the FBI.

Rudolf Straat, 49, of Sarnia, Ontario, Canada, pleaded guilty to mail fraud, conspiracy to commit mail fraud, conspiracy to defraud the United States, failure to file a tax return and conspiracy to commit money laundering.

In March, a federal grand jury in Tallahassee, Fla., returned an eight-count indictment against Straat and his wife and co-conspirator, Maria Gudelis, 45, of Sarnia, Ontario, Canada. Both were accused of falsely obtaining mortgage loans in excess of $8.8 million to purchase homes in Sandestin, Fla. Straat claimed he was a U.S. citizen, but he is a citizen of the Netherlands. He claimed that he was single, even though he married Gudelis in May 2000. He also misrepresented his employment status.

Additionally, Straat and Gudelis both lived in Sandestin from at least October 2005 through July 2007. While living in Sandestin, Straat did not file 2005 and 2006 income tax returns. As a result, he failed to report more than $1 million to the IRS during those years. Straat used a portion of his unreported capital gains to fraudulently obtain additional properties.

Straat faces up to 20 years in prison for conspiracy to commit mail fraud, conspiracy to commit money laundering and mail fraud. He faces up to five years in prison for conspiracy to defraud the United States and up to one year in prison for failing to file tax returns. He is scheduled to be sentenced March 12.

Gudelis, a Canadian citizen, is charged with the same crimes included in the indictment against her husband. She turned herself in to authorities Thursday, December 27, 2012, and pleaded not guilty at her arraignment Friday, December 28, 2012. Her trial is scheduled to commence Feb. 4. 

State Official Pleads Guilty to Obtaining Fraudulent Licenses for Illegal Aliens

An employee at a contracted state license office pleaded guilty in federal court Tuesday, December 11, 2012, to conspiracy to unlawfully assist more than 100 illegal aliens obtain fraudulent Missouri driver's licenses.

This guilty plea resulted from an extensive investigation led by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), in cooperation with the Missouri Department of Revenue's Compliance and Investigation Bureau, and numerous other federal, state and local investigative agencies.

Thomas Richard McNamara III, 26, of St. Joseph, Mo., pleaded guilty to participating in a conspiracy to unlawfully produce identification documents, to unlawfully transfer the means of identification of another person, and to commit Social Security fraud.

McNamara was employed at a contracted license office in St. Joseph during the time of the conspiracy. In September 2009, McNamara began conspiring with others to provide Missouri driver's or non-driver's licenses to illegal aliens who were not legally entitled to them based on the false supporting identity documentation provided.

Based on this operation, illegal aliens traveled across the United States to obtain licenses from this license office by using unlawfully obtained birth certificates and Social Security cards. It is estimated that more than 100 Missouri licenses had been unlawfully issued to illegal aliens as part of this conspiracy.

According to McNamara, it was common knowledge among the employees at the license office that co-conspirators were assisting illegal aliens to unlawfully obtain licenses.

McNamara admitted that he was paid $50 to $100 each time he accepted fraudulent documents from illegal aliens, who were escorted to the office by co-conspirators disguised as translators. These fraudulent documents included invalid Puerto Rican birth certificates and certain state-issued birth certificates in the names of other persons. After accepting these documents, McNamara issued licenses to the illegal aliens who had assumed the identities of others. The licenses could then be used by the illegal aliens to remain in the United States, obtain employment, and for other unlawful purposes.

McNamara admitted that he accepted improper documents about two to three times per week, but he didn't do this every week. Co-conspirators often called McNamara before bringing aliens to the license office to make sure he was working, and to inform him they were bringing clients. McNamara met with co-conspirators on numerous occasions during non-work hours at locations other than the licensing office to receive payment.

Under the terms of the plea agreement, McNamara must pay a money judgment of at least $125,000.

Under federal statutes, McNamara is also subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the U.S. Probation Office completes a pre-sentence investigation.

Numerous law enforcement agencies assisted the HSI-led investigation, including the following agencies: Buchanan County (Mo.) Sheriff's Department; the St. Joseph (Mo.) Police Department; the Platte County (Mo.) Sheriff's Department; the Missouri State Highway Patrol; the U.S. Social Security Administration's Office of Inspector General; and the U.S. Postal Inspection Service.

Woman Pleads Guilty to Bribery and Document Fraud Scheme

A Tennessee woman pleaded guilty Wednesday, November 14, 2012, to paying approximately $30,000 in bribes to a former Tennessee Department of Public Safety supervisory license examiner in exchange for fraudulent licenses and permits. The guilty plea follows an investigation by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) with assistance from the FBI and Tennessee Department of Safety.

Anny Castillo, 29, of Antioch, Tenn., a citizen of the Dominican Republic and lawful U.S. resident, pleaded guilty to bribery, conspiracy to unlawfully produce state identification documents, and to selling Social Security cards and citizenship documents.

"Fraudulent documents threaten the security of all citizens by making it easier for criminals to commit a range of offenses from identity theft to terrorism," said Raymond R. Parmer Jr., special agent in charge of HSI New Orleans, who oversees a five state area of responsibility including Tennessee. "This guilty plea should serve as a reminder that HSI and its law enforcement partners continually work together to identify and prosecute criminals who violate the public trust."

According to court documents, Castillo illegally obtained and sold genuine identification and citizenship documents to illegal aliens between August 2011 and April 2012. Undercover federal agents posing as illegal aliens subsequently learned from Castillo that she could also obtain fraudulent state licenses and permits for an additional fee.

Undercover federal agents accompanied Castillo to a driver testing center in Nashville where Larry Murphy, 54, of Antioch, Tenn., worked as a supervisory driver's license examiner. There Castillo paid Murphy more than $15,000 to issue fraudulent licenses to the undercover agents. Castillo admitted in court she and Murphy engaged in approximately 50 total transactions involving at least $30,000 in illegal payments.

Castillo and Murphy were both indicted by a federal grand jury in May 2012. Murphy pleaded guilty Nov. 6 and both are scheduled to be sentenced in February. Castillo and Murphy each face a maximum penalty of 10 years in prison and a $250,000 fine.

Haitian National Pleads Guilty to Violating TSA Security Program

A Haitian national pleaded guilty Oct. 18 for violating the Transportation Security Administration's (TSA) Transportation Worker Identification Credential (TWIC) security program. This plea comes as a result of an investigation by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) led Border Enforcement Security Task Force (BEST) in New York.

Benedick Dextra, aka Benedick Louis, 44, pleaded guilty to violations of entry into a seaport under false pretenses. The investigation revealed Dextra obtained fraudulent documents under the name of Benedick Louis. He then used these illegal documents to obtain a New York State (NYS) driver's license, and a TWIC, which allowed him access to secure areas, such as container terminals in Port Elizabeth, N.J.

"Today's guilty plea by Benedick Dextra for obtaining access to secure areas of the New York City seaport through fraud is a first of its kind," said James T. Hayes Jr., special agent in charge of HSI New York. "The investigation conducted by HSI and our Border Enforcement Security Task Force partners, namely the Federal Air Marshal Service and U.S. Customs and Border Protection, underscores our commitment to protecting America's ports."

"We are proud of the efforts made by Supervisory Federal Air Marshal Osbert Orduna in this case," said Robert S. Bray, director of TSA's Federal Air Marshal Service. "This joint investigation further exemplifies the partnerships between all of our DHS components."

In 2009, as part of a routine customs inspection, Benedick Dextra was stopped by U.S. Customs and Border Protection (CBP) officers as his truck exited a terminal at Port Elizabeth. Dextra presented a TWIC credential bearing the name Benedick Louis. Subsequent checks revealed that Benedick Louis and Benedick Dextra were the same individual. He was arrested October 22, 2010, and charged with violating the TWIC program.

The TWIC program is a TSA-led security initiative that ensures individuals who pose a threat do not gain unescorted access to secure areas of the nation's maritime transportation system.

To obtain a TWIC, an individual must provide biographic and biometric information such as fingerprints, be photographed and successfully pass a security threat assessment conducted by TSA. TWICs are tamper-resistant biometric credentials issued to workers who require unescorted access to secure areas of ports, vessels and outer continental shelf facilities.

BEST is comprised of federal, state, local and foreign law enforcement counterparts, working together to develop a comprehensive approach to identifying, disrupting and dismantling criminal organizations posing significant threats to border security, seaports and maritime ports of entry. The New York BEST is composed of HSI, the Federal Air Marshal Service, CBP, the Drug Enforcement Administration, the New York City Police Department, Coast Guard Investigative Services, the Waterfront Commission of New York Harbor, and the National Guard.

Assistant U.S. Attorney Lara Gatz for the Eastern District of New York is prosecuting the case.

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.

Former Airline Employee Sentenced for Cash Smuggling to the Dominican Republic

A former airline employee was sentenced to 18 months in federal prison Friday, September 7, 2012, after smuggling more than $150,000 on a commercial carrier from Philadelphia International Airport (PHL) to the Dominican Republic.

The sentencing comes after an investigation by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).

Juan Adames, 29, of Ridgefield Park, N.J., pleaded guilty to bulk cash smuggling and other related charges in June 2012. Adames was arrested in August 2010 after failing to declare approximately $153,000 to customs officers in the Dominican Republic. After his arrest and seizure of the funds, customs officials in the Dominican Republic released Adames and notified HSI special agents who subsequently began an investigation.

According to the investigation, Adames used his position as a commercial airline employee to circumvent federal screening procedures at PHL before reaching his destination. When he returned to the U.S. in January 2012, he was arrested by HSI special agents and charged.

"A major vulnerability was ultimately identified and closed as a result of this case," said John P. Kelleghan, special agent in charge for HSI Philadelphia. "We simply will not allow individuals working in and around commercial aircraft to exploit their positions for criminal ends. Through the cooperation of our domestic and international law enforcement partners, we will continue to ensure the safety and security of the flying public."

As part of the effort to combat bulk cash smuggling, ICE established the National Bulk Cash Smuggling Center (BCSC) in 2009. Since its inception, the center has initiated 474 criminal investigations, which have resulted in nearly 270 criminal arrests and the seizure of more than $170 million.

The BCSC is an operational, intelligence driven investigative unit with the mission to challenge bulk cash smuggling from both national and international perspectives. The BCSC is focused on the disruption of facilitation pipelines used to move currency derived from illicit activity including drugs, weapons, human trafficking, foreign political corruption and contraband.

Six Plead Guilty to Drug Trafficking Ring

Six men pleaded guilty in federal court Thursday, September 6, 2012, as a result of the efforts of a multi-agency investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), led by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), announced U.S. Attorney Kenneth Magidson, Southern District of Texas.

The defendants were arrested in June on charges relating to their participation in a large-scale south Texas drug-trafficking organization. The criminal organization employing the defendants specialized in avoiding the Falfurrias Border Patrol checkpoint by crossing through ranches adjacent to the checkpoint.

The following men from south Texas each entered guilty pleas before U.S. District Judge Nelva Gonzales Ramos Sept. 6: Jesus Marroquin, 49, of Rio Grande City; Alejandro Garza, 42, of Mission; Adrian De la Garza, 41, of Sullivan City; and Rene Salazar, 42, Jose Figueroa, 35, and Edwardo Munoz, 35, all of Falfurrias. Garza and Marroquin were identified as leaders in this criminal organization.

Garza, Marroquin, Salazar and De la Garza pleaded guilty to conspiracy to possess with intent to distribute more than 1,000 kilograms (2,200 pounds) of marijuana. Based upon the amount of the marijuana involved, they face no less than 10 years and a maximum of life imprisonment. Figueroa and Munoz were also convicted of operating an unlicensed money transmitting business, which carries a maximum penalty of five years imprisonment.

In addition, Garza agreed to criminally forfeit several firearms; Marroquin agreed to forfeit 145 pieces of expensive jewelry, worth about $25,000.

Sentencing has been set for Dec. 4. With the exception of De la Garza and Salazar, who were released on bond, all have been and will remain in custody pending that hearing.

The following agencies assisted with this investigation: Internal Revenue Service's Criminal Investigation; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Texas Department of Public Safety; Brooks County Sheriff's Office; U.S. Customs and Border Protection's Border Patrol; and the U.S. Marshals Service.

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

Customs Fraud Charges for Hong-Kong Jewelry Exporter

A Hong Kong-based jewelry exporter pleaded guilty Friday, August 24, 2012, to customs fraud charges and faces nearly $2 million in fines and restitution in a scheme discovered by U.S. Customs and Border Protection's (CBP) Regulatory Audit Unit and investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).

Fai Po Jewellery (H.K.) Co., LTD, admitted to intentionally submitting false invoices to the government in connection with the importation of merchandise in order to avoid paying more than $1 million in customs duties. The company was also ordered to pay an $800,000 criminal fine and restitution of $1,017,737. Additionally, the company was ordered to pay the cost of the investigation in the amount of $144,324 and was placed on three years' probation.

HSI special agents found that from early 2007 to late 2009, Fai Po enclosed false invoices in their direct shipments to U.S. purchaser ShopNBC while sending the actual full value invoice to the purchaser by email. Fai Po advised the purchaser to ignore the invoice enclosed in the shipment because it was there only to avoid customs clearance issues.

Since Fai Po was acting as both the exporter and importer, the company was responsible for customs duties, not the U.S. purchaser. The purchaser paid the higher amount listed on the true invoice, while Fai Po declared to the government the lower value on the fraudulent invoice. The purchaser was not aware of Fai Po's scheme and didn't receive any benefit from it.

"A few deliberate pen strokes on a customs declaration form amounted to the theft of more than $1 million from the American people," said Brad Bench, special agent in charge of HSI Seattle, who oversees investigations in Alaska. "The defendant apparently believed its actions would go unnoticed, but it didn't count on CBP's ability to detect this anomaly or HSI's commitment to holding those who commit customs fraud accountable."

The fraud was detected by CBP when an audit revealed a discrepancy between the actual value of the gold jewelry shipment and what was stated on the fraudulent invoices.

Under the terms of probation, Fai Po is required to appoint a responsible corporate officer who will be required to prepare and submit quarterly reports to the U.S. Probation Office to ensure that no similar conduct occurs in the future.

Former Airline Agent Pleads Guilty to Drug Trafficking

A former Delta Airlines ramp agent at Atlanta Hartsfield-Jackson International Airport, who attempted to obtain a suitcase containing more than $614,000 worth of illegal drugs off of a flight from Mexico City, pleaded guilty Tuesday, July 31, 2012, in federal district court to conspiracy to possess with the intent to distribute controlled substances, following an investigation by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).

Luis Marroquin, 35, of Atlanta, had previously been indicted by a federal grand jury May 1 on charges of conspiracy to possess with the intent to distribute controlled substances and attempting to import methamphetamine and heroin into the United States from Mexico. Kelvin Rondon, 27, of Atlanta, a former Delta Airlines ramp agent who was indicted with Marroquin, pleaded guilty July 19 to the same charge.

United States Attorney Sally Quillian Yates said of the case: "These guilty pleas demonstrate a continued strong commitment by the U.S. Attorney's Office, ICE, our other law enforcement partners and airline security teams to uncover, arrest and successfully prosecute those individuals who traffic illegal drugs through our airport."

"Keeping dangerous drugs out of our communities is a team effort," said Brock D. Nicholson, special agent in charge of HSI Atlanta. "Thanks to the excellent work done by Delta Airlines security and U.S. Customs and Border Protection, HSI special agents were able to unravel this scheme and ensure the defendants will be held accountable for their criminal actions." Nicholson oversees HSI activities in Georgia and the Carolinas.

According to information presented in court, on Jan. 13 at approximately 11:57 a.m. Delta Airlines flight number 364 arrived at the Atlanta Hartsfield-Jackson International Airport from Mexico City, Mexico. Shortly thereafter, a Delta Airlines agent found an unclaimed piece of luggage on a baggage carousel with a tag corresponding to Flight 364. U.S. Customs and Border Protection (CBP) agents inspected the luggage, and determined that it contained multiple packages of methamphetamine and heroin.

Later that same day, HSI special agents interviewed Carlos R. Springer, 41, of Hampton, Ga., who was the performance leader for the shift of ramp employees who off-loaded the baggage on Flight 364. During a search of Springer's cellular telephone, special agents found coded incriminating text messages between Springer and Marroquin around the time of the arrival of the flight which concerned a missing bag. The investigation revealed that Marroquin recruited Rondon to locate the suitcase of drugs from the aircraft and showed Rondon a picture of the bag from Marroquin's cellular telephone in advance of the arrival of the flight.

Marroquin, Rondon and Springer were charged in the same indictment May 1 with conspiracy to possess with the intent to distribute methamphetamine and heroin, and attempting to import methamphetamine and heroin into the United States from Mexico.

A federal grand jury returned a superseding indictment June 6 which also charged Stephanie Baxter, 26, of Atlanta, with concealing and harboring Marroquin while he remained a fugitive in this case. Baxter was in the process of selling Marroquin's assets so that Marroquin could supposedly flee to his native Guatemala. HSI special agents foiled the plan and arrested Marroquin at a residence in Coral Springs, Fla., May 8.

The sentencings for Marroquin and Rondon have not yet been scheduled. Marroquin and Rondon could receive maximum sentences of life in prison and fines of up to $10,000,000. In determining the actual sentences, the court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.

Springer's and Baxter's cases remain pending in federal court.

Former CBP Officer Sentenced to 115 Days for Investment Fraud

A former San Diego-area officer for U.S. Customs and Border Protection (CBP) who defrauded individuals after promising to invest their money in a technical school was sentenced Friday, July 27, 2012, to 115 days in federal prison, following a probe by U.S. Immigration and Customs Enforcement's (ICE) Office of Professional Responsibility (OPR).

Dario Tomas, 53, of Oceanside, pleaded guilty in June to wire fraud after admitting he swindled $240,000 from two victims as part of a financial scheme he orchestrated while working for CBP in Busan, Korea, in 2007.

Tomas admitted to falsely promising the two investors, a U.S. serviceman and a South Korean national, that their money would go toward building a computer training school in the Philippines. Tomas furthered the scheme by sending electronic messages to the investors using fraudulent email accounts he set up under other people's names, and by making phone calls so it would appear the project was progressing. Tomas later admitted he lost the money gambling.

Tomas was arrested in October 2010 by special agents with ICE Homeland Security Investigations (HSI) assigned to the agency's attaché office in Manila, aided by officers from the U.S. Diplomatic Security Service and the Philippine National Bureau of Investigations. Tomas was then extradited to South Korea where he served a two-year prison term for the offense.

In April, Tomas was released from prison in South Korea and deported to the U.S. to face federal fraud charges brought in Southern California.

At his sentencing, U.S. District Court Judge Janis L. Sammarinto also ordered Tomas to pay $240,000 in restitution to the two victims.

Member of International Car Theft Scheme Pleads Guilty

A Washington, D.C., man pleaded guilty Thursday, May 3, to conspiracy to commit interstate transportation of stolen motor vehicles, following an investigation led by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).

Kevin Demetri Britton, 19, of Washington, D.C., pleaded guilty. According to his plea agreement, between 2010 and April 2011, Britton was an active participant in a conspiracy to ship stolen cars from the United States to countries in West Africa for resale. Members of the conspiracy in the United States hired others to steal late model vehicles – with the keys – so that the vehicles could be more easily sold. The vehicles were stolen as follows:

·                             The conspirators broke into car dealerships, stole the keys to new cars, and drove the cars off the lot;

·                             The conspirators paid employees of dealerships to leave keys to vehicles in the vehicles or in an otherwise accessible area, and the cars were driven off the lots when the dealership was closed;

·                             Vehicles were stolen from victims who walked away from their vehicle, leaving their keys inside the vehicle;

·                             The conspirators paid others to rent vehicles from rental agencies, file false reports with the police claiming the vehicle had been stolen, and to turn the vehicle over to the members of the conspiracy; and

·                             Individuals were robbed of their vehicles at gunpoint by assailants who were stealing the vehicles for members of the conspiracy.

Members of the conspiracy purchased the stolen vehicles from the thieves or an intermediary, and then stored the vehicles at a parking lot or other location, known as "cooling spots." Often, members of the conspiracy hired others to find and remove G.P.S. devices from the vehicles to avoid detection by law enforcement. After three or four vehicles were accumulated, the vehicles would be towed or driven to a location to be loaded into a shipping container. Thereafter, a tractor trailer would transport the container to a port for export. Additionally, members of the conspiracy hired international shipping companies to arrange for the containers to be shipped overseas. In order to ship vehicles overseas, shipping companies are required to have valid titles for the vehicles. As part of the scheme, members of the conspiracy used fraudulent title information in an effort to conceal that the cars they sought to ship had been stolen.

The containers were transported to various ports, including the Port of Newark, N.J.; the Port of Baltimore and the Port of Norfolk, Va. The containers were then shipped, or intended to be shipped, to destinations in West Africa, including Nigeria and Ghana.

Britton's role in the scheme varied. He acted as an intermediary between the car thieves/carjackers. In the fall of 2010, Britton met Solomon Asare, 36, formerly of Laurel, Md., and learned that Asare would give him cash for late model stolen cars. Britton also learned that Asare shipped the stolen cars to Africa for resale. From the fall of 2010 through April 2011, Britton obtained at least nine stolen cars and sold them to Asare, or someone acting on Asare's behalf.

For example, on March 17, 2011, members of the conspiracy carjacked a silver 2009 Toyota Camry from a victim in Landover, Md. Later that evening, Britton delivered the car to Gabriel Awuzie, 35, of Adelphi, Md. and Solomon Asare. Asare paid Britton for the stolen car. On March 31, 2011, Asare and Awuzie caused the car to be delivered to the shipping company, then entered the vehicle, removed items and wrote down the vehicle identification number.

At all times during his involvement in the scheme, Britton knew that the vehicles he provided were stolen, and he knew that the vehicles were being shipped across state and national borders. The loss associated with vehicles that Britton personally participated in the shipment of was more than $120,000.

Awuzie and Asare previously pleaded guilty to their roles in the scheme. According to his plea agreement, Awuzie drove stolen vehicles within Maryland and across state lines to ports for international shipment, assisted in the storing and "hanging" of stolen cars into shipping containers, purchased stolen vehicles from the car thieves or intermediaries, hired individuals to steal cars, and arranged for the theft and international shipment of vehicles. Awuzie sometimes assisted others in the scheme, and at other times Awuzie orchestrated the transaction from its inception to its end.

Asare admitted that he took orders from "buyers" in Africa, purchasing the stolen vehicles from intermediaries, arranging to "cool" the vehicles, load the vehicles into containers and ship the containers to the buyers in Africa. Asare paid the participants along the way, including the intermediaries, drivers of the stolen vehicles, tow truck drivers, tractor-trailer drivers and shipping companies. All payments were in cash.

On April 6 and April 7, 2011, Awuzie, Asare and other conspirators loaded three of the stolen vehicles sold to them by Britton, as well as a fourth stolen vehicle, into a shipping container at a shipping company in Beltsville, Md. A few days later, Awuzie and Asare caused the shipping container to be transported to Elkridge, Md., and to another location in Maryland, en route to Lagos, Nigeria, via the Port Newark-Elizabeth Marine Terminal in New Jersey. On April 13, 2011, law enforcement stopped the tractor trailer transporting the shipping container in Baltimore. The container was searched and the four stolen vehicles were discovered.

Additionally, in 2011, Asare applied for a U.S. passport in the name of another individual containing the personal information of that individual and bearing a photograph of Asare. Asare paid the individual to assist in filing the false passport application.

Britton and Asare both face a maximum penalty of five years in prison for the conspiracy and Asare also faces a mandatory minimum of two years in prison for aggravated identity theft consecutive to any other sentence. U.S. District Judge James K. Bredar has scheduled sentencing for Asare July 17 at 1:00 p.m. and for Britton Aug. 28 at 10:00 a.m.

On April 5, Judge Bredar sentenced Gabriel Awuzie to 30 months in prison and ordered Awuzie to pay restitution in the amount of $120,000 for his role in the conspiracy.

The investigation was conducted by HSI Baltimore, Baltimore County Police Department, Montgomery County Police Department, Maryland State Police and Prince George's County Police Department.

The case is being prosecuted by Assistant U.S. Attorney Paul Budlow.