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Through an application to register and enforce two orders from United Kingdom courts, the Department of Justice (DOJ) has secured a restraining order against more than $3 million in corruption proceeds located in the United States related to James Onanefe Ibori, the former governor of Nigeria's oil-rich Delta State. The investigation was conducted by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
The application, which was filed under seal May 16 in U.S. District Court in the District of Columbia, seeks to restrain assets belonging to Ibori and Bhadresh Gohil, Ibori's former English solicitor, that are proceeds of corruption. Specifically, it seeks to restrain a mansion in Houston and two Merrill Lynch brokerage accounts. U.S. District Judge Lamberth granted the application and issued a restraining order under seal May 21. DOJ was notified July 23 that its application to unseal the restraining order was granted.
The United States is working with the United Kingdom's Crown Prosecution Service and the Metropolitan Police Service to forfeit these corruption proceeds.
"This serves as a warning to those corrupt foreign officials who abuse their power for personal financial gain and then attempt to place those funds in the U.S. financial system," said ICE Director John Morton. "ICE's Homeland Security Investigations (HSI) special agents will continue to work with our law enforcement partners at the Department of Justice Criminal Division's Asset Forfeiture and Money Laundering Section to investigate and prosecute those involved in such illicit activities and hold corrupt foreign officials accountable by denying them the satisfaction of their illegal earnings."
According to the application, Ibori served as the governor of Nigeria's oil-rich Delta State from 1999 to 2007, and misappropriated millions of dollars in Delta State funds. He laundered those proceeds through a myriad of shell companies, intermediaries and nominees in several jurisdictions, including the United Kingdom, with the help of Gohil. Although Nigeria's constitution prohibits state governors from maintaining foreign bank accounts and serving as directors of private companies, Ibori and his associates accumulated millions of dollars in assets in the United Kingdom and the United States, according to the application.
Ibori was convicted in the United Kingdom of money laundering and conspiracy to defraud and was sentenced by a British court April 18 to 13 years in prison. Gohil was also convicted in November 2010 of money laundering and prejudicing a money laundering investigation and was sentenced by a British court to 10 years in prison.
"Instead of working to benefit the people of the Nigerian delta, Governor Ibori pilfered state funds and accumulated immense wealth in the process," said Assistant Attorney General Lanny A. Breuer. "He conspired with Mr. Gohil to funnel millions of dollars in corruption proceeds out of Nigeria and into bank accounts and assets maintained in the names of shell companies and nominees. Through the Criminal Division's Kleptocracy Asset Recovery Initiative, our message is clear: the United States will not be used as a safe haven for the ill-gotten gains of corrupt foreign officials."
The case was investigated by HSI's Foreign Corruption Investigations Group, HSI Asset Identification and Removal Group in Miami and HSI Attaché London.
The case is being prosecuted by trial attorneys Woo S. Lee and Elizabeth Aloi of DOJ's Criminal Division's Asset Forfeiture and Money Laundering Section.
HSI's Foreign Corruption Investigations Group in Miami targets corrupt foreign officials around the world that attempt to utilize U.S. financial institutions to launder illicit funds. The group conducts investigations into the laundering of proceeds emanating from foreign public corruption, bribery or embezzlement. The objective is to prevent foreign derived ill-gotten gains from entering the U.S. financial infrastructure, to seize identified assets in the United States and repatriate these funds on behalf of those affected by foreign official corruption.
This case is part of the Justice Department's Kleptocracy Asset Recovery Initiative. This initiative is carried out by a dedicated team of prosecutors in the Criminal Division's Asset Forfeiture and Money Laundering Section, working in partnership with federal law enforcement agencies to forfeit the proceeds of foreign official corruption and where appropriate return those proceeds to benefit those harmed.
Individuals with information about possible proceeds of foreign corruption located in or laundered through institutions in the United States should contact federal law enforcement.
Two Mexican nationals residing in Baltimore were sentenced to prison for conspiring to operate a document mill in Baltimore and selling thousands of fraudulent government identification documents manufactured as part of the conspiracy.
"Document fraud poses a severe threat to national security and puts the security of our communities at risk because it creates a vulnerability that may enable terrorists, criminals and illegal aliens to gain entry to and remain in the United States," said U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) Baltimore Special Agent in Charge William Winter. "This investigation resulted in the dismantlement of a document fraud criminal organization based out of Maryland and the arrest of its leaders. Homeland Security Investigations will move aggressively to investigate and bring to justice those who potentially compromise the integrity of America's legal immigration system."
Miguel Reyes-Ontiveros, 41, was sentenced by U.S. District Judge William D. Quarles Jr., July 19 to 57 months in prison followed by three years of supervised release. Adrian Badillo-Carrasco, aka "Rana," 36, was also sentenced by Judge Quarles July 17, to 33 months in prison followed by three years of supervised release. Both defendants are in the United States illegally and face deportation upon completing their sentence.
According to the plea agreements and other court documents, responsibility for manufacturing identity documents – including permanent resident cards and Social Security cards – rotated among various individuals. From June 2008 through May 2010, Ivan Altamirano-Perez, aka "Elmer," 32, and his brother, Roberto Morales-Perez, aka "Piza," 26, received the income from manufacturing the identity documents. Beginning in May 2010 and continuing until their arrests, the Perez brothers shared the territory and income with Miguel Reyes-Ontiveros (collectively, the operators). The location of the manufacturing operation changed frequently to avoid detection.
In addition to manufacturing the documents, the operators sold the documents themselves or helped collect orders from salesmen. The defendants used a group of at least 10 individuals, including Badillo-Carrasco, to sell and distribute the fake identity documents. The documents were offered for sale and distributed in and around the 200 block of South Broadway in Baltimore.
According to their plea agreements, Badillo-Carrasco and the other salesmen solicited individuals in the Broadway territory to purchase the fake identification documents, either in person or by distributing business cards. The salesman would negotiate a price with the buyer, usually between $130 and $160, and obtain a picture and the information which the buyer wanted on the identification card. The salesman would then call in the order to the operator who was working that week. The completed identity document would subsequently be provided to the salesman to be sold to the buyer.
The defendants manufactured and sold thousands of fraudulent identification documents for which they are alleged to have received approximately $1.68 million.
On Feb 15, a defendant in a related case, Victor Lopez Escamilla, was convicted by a jury of manufacturing and trafficking in counterfeit identity documents, Social Security cards, and immigration identity documents, and was sentenced to 97 months in prison.
All of the nine defendants involved in the conspiracy have pleaded guilty in this case, and the remaining seven defendants are awaiting sentencing. Each faces a maximum sentence of 15 years in prison for conspiracy to commit fraud and a maximum of 10 years in prison for fraud and misuse of immigration documents. In addition, the Perez brothers each face a maximum of five years in prison for Social Security fraud and Altamirano-Perez faces a maximum of 15 years in prison for identification document fraud. The defendants, all of whom are in the U.S. illegally, face deportation upon the completion of their sentences.
Anyone who has information on this type of fraud may contact ICE via its toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423).
The investigation was conducted by HSI Baltimore and the Social Security Administration, Office of Inspector General with the assistance of the U.S. State Department Diplomatic Security Service, Washington Field Office; the Maryland Motor Vehicle Administration, Investigation and Security Services Division and the Baltimore County Police Department.
The case is being prosecuted by Assistant U.S. Attorneys Tamera L. Fine and Judson T. Mihok.
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.
A twice-deported Mexican national was sentenced Wednesday, July 18, 2012, to 15 months in prison for illegally re-entering the United States after having been previously deported.
The sentence resulted from an investigation conducted by U.S. Immigration and Customs Enforcement's (ICE) Enforcement and Removal Operations (ERO).
Reynaldo Coronado-Piedra, 33, was sentenced July 18 by U.S. District Judge Barbara B. Crabb, Western District of Wisconsin, for illegally re-entering the United States after having been deported. He pleaded guilty to the charge April 26. Re-entering the United States after being formally deported is a felony punishable by up to 20 years in prison.
Coronado-Piedra was first removed from the United States Nov. 19, 2004 following a probation revocation stemming from a 2000 Texas conviction for cocaine possession. He returned to the United States without permission and was convicted in Texas in 2006 of marijuana possession. He was again removed from the United States Jan. 10, 2008 after he completed his prison sentence. He returned to the United States without permission a second time. On Sept. 8, 2009, he was convicted in Portage County, Wis., for possessing marijuana with intent to deliver.
Coronado-Piedra will again be removed to Mexico after he completes his prison sentence handed down July 18.
Special Assistant U.S. Attorney Leah Fillbach Lenzendorf, Western District of Wisconsin, prosecuted the case.
An Escondido-based commercial framing company has become the latest employer headquartered in the San Diego area to partner with U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) in a program designed to strengthen hiring practices and combat the unlawful employment of illegal aliens.
S&H Contracting Inc., which has been in business more than 20 years, was certified as a member of the IMAGE program (ICE Mutual Agreement between Government and Employers) earlier this month. The contract company is licensed in California, Arizona and Nevada.
IMAGE is a voluntary partnership that helps employers maintain a lawful workforce and reduce the use of fraudulent identity documents.
"It is my pleasure to welcome S&H Contracting Inc. to our IMAGE family," said Derek Benner, special agent in charge for HSI San Diego. "The newly formed partnership with ICE underscores the company's commitment to protect the integrity of its workforce and to foster best hiring practices. When employers strive to maintain a lawful workforce, it's good for their business and it's good for the economy."
S&H Contracting Inc. was founded by two contractors with decades of experience in building high-end commercial and residential projects, including hotels, restaurants and churches in Southern California and Arizona. The company coordinates weekly apprenticeship classes at its onsite training facility and supports several high school athletic programs in San Diego's North County.
Undocumented workers create vulnerabilities in today's marketplace by presenting false documents to gain employment, completing applications for fraudulent benefits, and stealing identities of legally authorized workers. To combat this, ICE initiated the IMAGE program in 2006.
To qualify for IMAGE certification, partners agree to conduct a self-assessment of their hiring practices to uncover vulnerabilities that could be exploited by unauthorized workers; enroll in E-verify, an employment eligibility verification program; train staff on IMAGE Best Employment Practices and the use of new screening tools; and undergo a Form I-9 audit by HSI.
All IMAGE members must participate in the Department of Homeland Security (DHS) E-Verify employment eligibility verification program. Through this program, employers can verify that newly hired employees are eligible to work in the United States. This Internet-based system is available throughout the nation and is free to employers. It provides an automated link to the Social Security Administration database and DHS immigration records.
Upon enrollment in and commitment to the IMAGE Best Employment Practices, program participants are deemed "IMAGE certified," a distinction DHS and ICE believe will become an industry standard. IMAGE also provides free training to all employers on the provisions surrounding the Form I-9, fraudulent document detection, and building a solid immigration compliance model.
A Mexican national who arrived in Southern California on board a marijuana-laden panga-style boat that came ashore north of Malibu in mid-January has received a nearly six-year prison term.
Pedro Lopez-Rocha, 29, was sentenced Monday, July 16, 2012, in federal court to 70 months in prison. In March, Lopez pleaded guilty to possession with intent to distribute more than 1,000 pounds of marijuana. Lopez and two other Mexican national males were taken into custody by U.S. Customs and Border Protection (CBP) Border Patrol agents January 15 after their panga landed in the Deer Creek area. According to court documents, when the agents arrived on the scene, the defendants were in the process of unloading more than 45 bales of marijuana from the vessel.
The ensuing investigation by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) revealed that, shortly before landing, Lopez sent a text message to an individual in the Los Angeles area advising that the boat was coming ashore. HSI's investigation further determined that the smuggling load originated in the Ensenada area of Mexico.
"This sentence should send a strong signal about the consequences facing those involved in this dangerous mode of smuggling," said Claude Arnold, special agent in charge for HSI Los Angeles. "The surge in maritime smuggling activity here in Southern California represents both a security and a public safety threat and we are working closely with our federal, state and local partners to disrupt these schemes and bring those responsible to justice."
The other two defendants charged in the case, Rafael Castillo-Juarez, 47, and Javier Lizarraga-Calderon, 48, also pleaded guilty to possession with intent to distribute marijuana. Castillo and Lizaragga were sentenced previously with each receiving one year and one day in prison. All three defendants are Mexican nationals and will face deportation upon completion of their prison sentences.
In response to the escalating volume of maritime smuggling in the Los Angeles area, authorities have intensified efforts to target the illegal activity, expanding the use of marine patrols, land-based surveillance and collaboration with the Government of Mexico.
Those efforts are being overseen by the Department of Homeland Security's Central California Maritime Agency Coordination Group. The group is comprised of HSI; CBP's Office of Air and Marine, Office of Field Operations and U.S. Border Patrol; the U.S. Coast Guard; and several state and local law enforcement agencies. The state and local partners include the California Highway Patrol; the California Department of Parks and Recreation; the sheriff's departments of Orange, Los Angeles, Ventura, Santa Barbara and San Luis Obispo counties; and the Los Angeles and Long Beach police departments. The group is also receiving substantial assistance from members of the California National Guard's Counterdrug Program.
So far in fiscal year 2012 (Oct. 1, 2011 through June 26, 2012), authorities advise there have been 116 recorded maritime smuggling incidents in Southern California, stretching from the San Diego area north to San Luis Obispo County. In addition, there have been 29 maritime smuggling attempts intercepted offshore. Collectively, those 145 encounters have resulted in the seizure of more than 80,000 pounds of marijuana, including the bales seized in the incident near Deer Creek.
A Corvallis, Ore., man was sentenced Friday, July 13, 2012, to 10 months in federal prison for attempting to sell export restricted military-grade equipment to overseas buyers in violation of the Arms Export Control Act.
Geoffrey B. Roose pleaded guilty in March following his February federal indictment, which stemmed from an investigation by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
According to court documents, investigators sent a message via eBay advising Roose that the scopes he was auctioning were restricted for export to which Roose responded with "Thanks." Despite the warning, he didn't end his auction. Undercover HSI special agents then purchased one of the military-grade rifle scopes and had it shipped to a European address. Roose shipped the order, which was seized before it left the country. On the customs declaration, Roose identified the $1,700 scope as "telescope w/Mount" valued at $150.
In a search of Roose's email, HSI special agents found he had previously concealed the export of rifle scopes because of export controls. In one email Roose told a critic of his eBay sales: "…try worrying about your life, not stupid federal ITAR rules or stolen property." ITAR refers to International Traffic in Arms Regulations.
"It's always disturbing when an American illegally exports equipment that could be used on the battlefield against U.S. military servicemen," said Brad Bench, special agent in charge of HSI Seattle. "HSI will continue to work aggressively to stem the flow of restricted items from the U.S."
"The laws on exporting military equipment are designed to protect our country and our servicemen," said U.S. Attorney Jenny A. Durkan. "This prison sentence should be a warning to anyone considering sales that will damage our security for their personal profit."
In seeking a significant sentence for Roose, prosecutors highlighted his willful disregard of multiple warnings that it was illegal to send the high tech devices overseas. "There is simply no excuse for Roose's conduct. He was given every opportunity to change course and do the right thing. He was explicitly warned by the undercover ICE agent. He received a warning from the United States Postal Service. He received a warning from a stranger. Every product that he shipped was stamped with a warning about export. Nonetheless, he continued selling restricted items overseas, and was stopped only by his arrest," prosecutors wrote in their sentencing memo.
At sentencing, U.S. District Judge John C. Coughenour said he could not overlook Roose's attitude in response to warnings that selling the scopes overseas was illegal. "These are not hunting scopes," he said. "These are killing scopes."
The Defense Criminal Investigative Service assisted with the investigation. The U.S. Attorney's Office for the Western District of Washington prosecuted the case.
